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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, 2007
Date of reporting period: February 28, 2007
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Table of Contents
iSHARES® MSCI AUSTRIA INDEX FUND
Performance as of February 28, 2007
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 represented by the MSCI Austria Index (the “Index”). The Fund invests in a representative sample of securities in the Index, which has a similar investment profile as the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. For the six-month period ended February 28, 2007, the Fund returned 17.53%, while the Index returned 19.76%.
Average Annual Total Returns | ||||||||||||||||
Year Ended 2/28/07 | Five Years Ended 2/28/07 | Ten Years Ended 2/28/07 | ||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||
21.80% | 21.23% | 22.86% | 37.62% | 37.51% | 38.93% | 15.22% | 15.23% | 16.03% | ||||||||
Cumulative Total Returns | ||||||||||||||||
Year Ended 2/28/07 | Five Years Ended 2/28/07 | Ten Years Ended 2/28/07 | ||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||
21.80% | 21.23% | 22.86% | 393.59% | 391.65% | 417.52% | 312.27% | 312.86% | 342.24% |
“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. 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 2/28/07 | |||
Sector | Percentage of Net Assets | ||
Financial | 43.66 | % | |
Industrial | 13.95 | ||
Communications | 12.79 | ||
Basic Materials | 11.34 | ||
Energy | 11.34 | ||
Utilities | 5.58 | ||
Consumer Cyclical | 1.04 | ||
Short-Term and Other Net Assets | 0.30 | ||
TOTAL | 100.00 | % | |
TEN LARGEST FUND HOLDINGS As of 2/28/07 | |||
Security | Percentage of Net Assets | ||
Erste Bank der Oesterreichischen | 19.78 | % | |
Telekom Austria AG | 12.79 | ||
OMV AG | 11.34 | ||
Meinl European Land Ltd. | 5.18 | ||
CA Immobilien Anlagen AG | 5.04 | ||
Wienerberger AG | 4.98 | ||
Boehler-Uddeholm AG | 4.85 | ||
voestalpine AG | 4.68 | ||
Raiffeisen International Bank | 4.66 | ||
Oesterreichische Elektrizitaetswirtschafts AG Class A | 4.54 | ||
TOTAL | 77.84 | % | |
FUND PERFORMANCE OVERVIEWS | 1 |
Table of Contents
Fund Performance Overview
iSHARES® MSCI BELGIUM INDEX FUND
Performance as of February 28, 2007
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 represented by the MSCI Belgium Index (the “Index”). The Fund invests in a representative sample of securities in the Index, which has a similar investment profile as the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. For the six-month period ended February 28, 2007, the Fund returned 13.72%, while the Index returned 13.47%.
Average Annual Total Returns | ||||||||||||||||
Year Ended 2/28/07 | Five Years Ended 2/28/07 | Ten Years Ended 2/28/07 | ||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||
25.90% | 25.73% | 25.62% | 23.07% | 23.17% | 20.95% | 10.80% | 10.76% | 10.72% | ||||||||
Cumulative Total Returns | ||||||||||||||||
Year Ended 2/28/07 | Five Years Ended 2/28/07 | Ten Years Ended 2/28/07 | ||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||
25.90% | 25.73% | 25.62% | 182.39% | 183.48% | 158.85% | 178.95% | 177.82% | 176.88% |
“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” 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. 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 2/28/07 | |||
Sector | Percentage of Net Assets | ||
Financial | 53.34 | % | |
Consumer Non-Cyclical | 18.25 | ||
Basic Materials | 8.46 | ||
Diversified | 7.91 | ||
Communications | 6.77 | ||
Industrial | 4.11 | ||
Consumer Cyclical | 1.04 | ||
Short-Term and Other Net Assets | 0.12 | ||
TOTAL | 100.00 | % | |
TEN LARGEST FUND HOLDINGS As of 2/28/07 | |||
Security | Percentage of Net Assets | ||
Fortis | 24.02 | % | |
KBC Group NV | 14.26 | ||
Dexia SA | 10.77 | ||
UCB SA | 4.91 | ||
Solvay SA | 4.91 | ||
Belgacom SA | 4.89 | ||
InBev | 4.88 | ||
Groupe Bruxelles Lambert SA | 4.83 | ||
Delhaize Group | 4.16 | ||
Cofinimmo | 3.80 | ||
TOTAL | 81.43 | % | |
2 | 2007 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Fund Performance Overview
iSHARES® MSCI EMU INDEX FUND
Performance as of February 28, 2007
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 represented by the MSCI EMU Index (the “Index”). The Fund invests in a representative sample of securities in the Index, which has a similar investment profile as the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. For the six-month period ended February 28, 2007, the Fund returned 14.45%, while the Index returned 14.64%.
Average Annual Total Returns | ||||||||||||||||
Year Ended 2/28/07 | Five Years Ended 2/28/07 | Inception to 2/28/07 | ||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||
26.60% | 26.69% | 26.89% | 16.35% | 16.33% | 16.71% | 5.26% | 5.28% | 5.61% | ||||||||
Cumulative Total Returns | ||||||||||||||||
Year Ended 2/28/07 | Five Years Ended 2/28/07 | Inception to 2/28/07 | ||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||
26.60% | 26.69% | 26.89% | 113.19% | 113.01% | 116.57% | 40.29% | 40.47% | 43.40% |
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 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 2/28/07 | |||
Sector | Percentage of Net Assets | ||
Financial | 33.20 | % | |
Communications | 12.45 | ||
Industrial | 11.27 | ||
Consumer Non-Cyclical | 11.02 | ||
Utilities | 8.62 | ||
Consumer Cyclical | 7.19 | ||
Energy | 6.65 | ||
Basic Materials | 6.03 | ||
Technology | 2.56 | ||
Diversified | 0.87 | ||
Short-Term and Other Net Assets | 0.14 | ||
TOTAL | 100.00 | % | |
TEN LARGEST FUND HOLDINGS As of 2/28/07 | |||
Security | Percentage of Net Assets | ||
Total SA (France) | 3.40 | % | |
Banco Santander Central Hispano SA (Spain) | 2.47 | ||
Telefonica SA (Spain) | 2.15 | ||
Allianz SE (Germany) | 2.07 | ||
Siemens AG (Germany) | 2.06 | ||
BNP Paribas (France) | 2.01 | ||
Sanofi-Aventis (France) | 1.98 | ||
Nokia OYJ (Finland) | 1.95 | ||
Banco Bilbao Vizcaya Argentaria SA (Spain) | 1.92 | ||
E.ON AG (Germany) | 1.85 | ||
TOTAL | 21.86 | % | |
FUND PERFORMANCE OVERVIEWS | 3 |
Table of Contents
Fund Performance Overview
iSHARES® MSCI FRANCE INDEX FUND
Performance as of February 28, 2007
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 represented by the MSCI France Index (the “Index”). The Fund invests in a representative sample of securities in the Index, which has a similar investment profile as the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. For the six-month period ended February 28, 2007, the Fund returned 10.90%, while the Index returned 11.18%.
Average Annual Total Returns | ||||||||||||||||
Year Ended 2/28/07 | Five Years Ended 2/28/07 | Ten Years Ended 2/28/07 | ||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||
25.07% | 24.93% | 25.45% | 15.26% | 15.21% | 15.52% | 10.82% | 10.80% | 11.08% | ||||||||
Cumulative Total Returns | ||||||||||||||||
Year Ended 2/28/07 | Five Years Ended 2/28/07 | Ten Years Ended 2/28/07 | ||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||
25.07% | 24.93% | 25.45% | 103.38% | 102.95% | 105.73% | 179.31% | 178.78% | 186.01% |
“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” 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. 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 2/28/07 | |||
Sector | Percentage of Net Assets | ||
Financial | 21.89 | % | |
Consumer Non-Cyclical | 17.87 | ||
Industrial | 13.07 | ||
Energy | 11.90 | ||
Communications | 11.21 | ||
Consumer Cyclical | 7.97 | ||
Utilities | 6.03 | ||
Basic Materials | 4.87 | ||
Technology | 2.86 | ||
Diversified | 2.09 | ||
Short-Term and Other Net Assets | 0.24 | ||
TOTAL | 100.00 | % | |
TEN LARGEST FUND HOLDINGS As of 2/28/07 | |||
Security | Percentage of Net Assets | ||
Total SA | 11.35 | % | |
BNP Paribas | 6.74 | ||
Sanofi-Aventis | 6.67 | ||
AXA | 5.48 | ||
Societe Generale Class A | 4.78 | ||
Suez SA | 3.80 | ||
France Telecom SA | 3.54 | ||
Vivendi SA | 3.51 | ||
Carrefour SA | 3.08 | ||
Groupe Danone | 2.89 | ||
TOTAL | 51.84 | % | |
4 | 2007 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Fund Performance Overview
iSHARES® MSCI GERMANY INDEX FUND
Performance as of February 28, 2007
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 represented by the MSCI Germany Index (the “Index”). The Fund invests in a representative sample of securities in the Index, which has a similar investment profile as the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. For the six-month period ended February 28, 2007, the Fund returned 18.55%, while the Index returned 18.80%.
Average Annual Total Returns | ||||||||||||||||
Year Ended 2/28/07 | Five Years Ended 2/28/07 | Ten Years Ended 2/28/07 | ||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||
27.37% | 27.44% | 27.67% | 15.56% | 15.62% | 15.80% | 8.88% | 8.92% | 9.18% | ||||||||
Cumulative Total Returns | ||||||||||||||||
Year Ended 2/28/07 | Five Years Ended 2/28/07 | Ten Years Ended 2/28/07 | ||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||
27.37% | 27.44% | 27.67% | 106.09% | 106.62% | 108.24% | 134.22% | 134.93% | 140.74% |
“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. 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 2/28/07 | |||
Sector | Percentage of Net Assets | ||
Financial | 27.20 | % | |
Industrial | 15.52 | ||
Consumer Cyclical | 15.33 | ||
Utilities | 13.33 | ||
Basic Materials | 11.52 | ||
Consumer Non-Cyclical | 5.58 | ||
Communications | 5.53 | ||
Technology | 5.52 | ||
Energy | 0.26 | ||
Short-Term and Other Net Assets | 0.21 | ||
TOTAL | 100.00 | % | |
TEN LARGEST FUND HOLDINGS As of 2/28/07 | |||
Security | Percentage of Net Assets | ||
Allianz SE | 9.51 | % | |
Siemens AG | 9.15 | ||
E.ON AG | 8.37 | ||
Deutsche Bank AG | 6.99 | ||
DaimlerChrysler AG Registered | 6.38 | ||
Deutsche Telekom AG | 5.09 | ||
BASF AG | 4.91 | ||
RWE AG | 4.65 | ||
Bayer AG | 4.29 | ||
SAP AG | 4.06 | ||
TOTAL | 63.40 | % | |
FUND PERFORMANCE OVERVIEWS | 5 |
Table of Contents
Fund Performance Overview
iSHARES® MSCI ITALY INDEX FUND
Performance as of February 28, 2007
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 represented by the MSCI Italy Index (the “Index”). The Fund invests in a representative sample of securities in the Index, which has a similar investment profile as the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. For the six-month period ended February 28, 2007, the Fund returned 10.32%, while the Index returned 10.51%.
Average Annual Total Returns | ||||||||||||||||
Year Ended 2/28/07 | Five Years Ended 2/28/07 | Ten Years Ended 2/28/07 | ||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||
23.72% | 23.70% | 23.38% | 18.91% | 18.91% | 18.69% | 13.18% | 13.13% | 13.10% | ||||||||
Cumulative Total Returns | ||||||||||||||||
Year Ended 2/28/07 | Five Years Ended 2/28/07 | Ten Years Ended 2/28/07 | ||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||
23.72% | 23.70% | 23.38% | 137.76% | 137.71% | 135.55% | 244.87% | 243.39% | 242.35% |
“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. 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 2/28/07 | |||
Sector | Percentage of Net Assets | ||
Financial | 49.56 | % | |
Energy | 15.61 | ||
Communications | 13.01 | ||
Utilities | 9.07 | ||
Consumer Cyclical | 5.51 | ||
Consumer Non-Cyclical | 4.09 | ||
Industrial | 2.99 | ||
Short-Term and Other Net Assets | 0.16 | ||
TOTAL | 100.00 | % | |
TEN LARGEST FUND HOLDINGS As of 2/28/07 | |||
Security | Percentage of Net Assets | ||
Eni SpA | 15.61 | % | |
UniCredito Italiano SpA | 14.05 | ||
Intesa Sanpaolo SpA | 9.82 | ||
Telecom Italia SpA | 6.40 | ||
Assicurazioni Generali SpA | 4.87 | ||
Enel SpA | 4.85 | ||
Terna SpA | 4.22 | ||
Capitalia SpA | 3.17 | ||
Mediobanca SpA | 3.16 | ||
Banco Popolare di Verona e Novara Scrl | 3.16 | ||
TOTAL | 69.31 | % | |
6 | 2007 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Fund Performance Overview
iSHARES® MSCI NETHERLANDS INDEX FUND
Performance as of February 28, 2007
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 represented by the MSCI Netherlands Index (the “Index”). The Fund invests in a representative sample of securities in the Index, which has a similar investment profile as the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. For the six-month period ended February 28, 2007, the Fund returned 10.87%, while the Index returned 10.93%.
Average Annual Total Returns | ||||||||||||||||
Year Ended 2/28/07 | Five Years Ended 2/28/07 | Ten Years Ended 2/28/07 | ||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||
23.49% | 23.56% | 23.21% | 11.77% | 11.80% | 12.20% | 5.99% | 5.89% | 7.25% | ||||||||
Cumulative Total Returns | ||||||||||||||||
Year Ended 2/28/07 | Five Years Ended 2/28/07 | Ten Years Ended 2/28/07 | ||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||
23.49% | 23.56% | 23.21% | 74.40% | 74.71% | 77.80% | 78.84% | 77.23% | 101.42% |
“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. 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 2/28/07 | |||
Sector | Percentage of Net Assets | ||
Financial | 41.58 | % | |
Consumer Non-Cyclical | 20.22 | ||
Industrial | 13.83 | ||
Communications | 11.33 | ||
Basic Materials | 6.57 | ||
Technology | 3.73 | ||
Energy | 1.70 | ||
Consumer Cyclical | 0.99 | ||
Short-Term and Other Net Assets | 0.05 | ||
TOTAL | 100.00 | % | |
TEN LARGEST FUND HOLDINGS As of 2/28/07 | |||
Security | Percentage of Net Assets | ||
ING Groep NV | 17.60 | % | |
ABN AMRO Holding NV | 13.81 | ||
Unilever NV | 9.02 | ||
Koninklijke Philips Electronics NV | 8.99 | ||
Koninklijke KPN NV | 4.95 | ||
TNT NV | 4.84 | ||
Aegon NV | 4.82 | ||
Akzo Nobel NV | 4.50 | ||
Reed Elsevier NV | 4.07 | ||
Koninklijke Ahold NV | 3.78 | ||
TOTAL | 76.38 | % | |
FUND PERFORMANCE OVERVIEWS | 7 |
Table of Contents
Fund Performance Overview
iSHARES® MSCI SPAIN INDEX FUND
Performance as of February 28, 2007
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 represented by the MSCI Spain Index (the “Index”). The Fund invests in a representative sample of securities in the Index, which has a similar investment profile as the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. For the six-month period ended February 28, 2007, the Fund returned 21.99%, while the Index returned 22.04%.
Average Annual Total Returns | ||||||||||||||||
Year Ended 2/28/07 | Five Years Ended 2/28/07 | Ten Years Ended 2/28/07 | ||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||
37.32% | 37.32% | 36.96% | 23.89% | 23.89% | 23.83% | 15.32% | 15.31% | 15.49% | ||||||||
Cumulative Total Returns | ||||||||||||||||
Year Ended 2/28/07 | Five Years Ended 2/28/07 | Ten Years Ended 2/28/07 | ||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||
37.32% | 37.32% | 36.96% | 191.91% | 191.87% | 191.12% | 316.06% | 315.47% | 322.09% |
“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 one-year period. Achieving such exceptional returns involves the risk of volatility and 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. 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 2/28/07 | |||
Sector | Percentage of Net Assets | ||
Financial | 39.72 | % | |
Communications | 18.34 | ||
Utilities | 15.08 | ||
Industrial | 8.32 | ||
Consumer Non-Cyclical | 7.53 | ||
Energy | 5.35 | ||
Consumer Cyclical | 3.45 | ||
Basic Materials | 1.42 | ||
Technology | 0.68 | ||
Short-Term and Other Net Assets | 0.11 | ||
TOTAL | 100.00 | % | |
TEN LARGEST FUND HOLDINGS As of 2/28/07 | |||
Security | Percentage of Net Assets | ||
Banco Santander Central Hispano SA | 18.86 | % | |
Telefonica SA | 17.08 | ||
Banco Bilbao Vizcaya Argentaria SA | 13.31 | ||
Endesa SA | 5.17 | ||
Banco Popular Espanol SA | 4.95 | ||
Iberdrola SA | 4.89 | ||
Repsol YPF SA | 4.30 | ||
Actividades de Construcciones y Servicios SA | 3.22 | ||
Altadis SA | 3.09 | ||
Industria de Diseno Textil SA | 2.84 | ||
TOTAL | 77.71 | % | |
8 | 2007 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Fund Performance Overview
iSHARES® MSCI SWEDEN INDEX FUND
Performance as of February 28, 2007
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 represented by the MSCI Sweden Index (the “Index”). The Fund invests in a representative sample of securities in the Index, which has a similar investment profile as the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. For the six-month period ended February 28, 2007, the Fund returned 22.79%, while the Index returned 23.14%.
Average Annual Total Returns | ||||||||||||||||
Year Ended 2/28/07 | Five Years Ended 2/28/07 | Ten Years Ended 2/28/07 | ||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||
33.74% | 33.33% | 33.79% | 21.03% | 20.96% | 21.19% | 10.92% | 10.86% | 12.16% | ||||||||
Cumulative Total Returns | ||||||||||||||||
Year Ended 2/28/07 | Five Years Ended 2/28/07 | Ten Years Ended 2/28/07 | ||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||
33.74% | 33.33% | 33.79% | 159.74% | 158.90% | 161.43% | 181.89% | 180.27% | 214.92% |
“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. 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 2/28/07 | |||
Sector | Percentage of Net Assets | ||
Communications | 23.88 | % | |
Financial | 21.46 | ||
Consumer Cyclical | 20.04 | ||
Industrial | 18.98 | ||
Basic Materials | 7.43 | ||
Consumer Non-Cyclical | 7.40 | ||
Energy | 0.69 | ||
Technology | 0.14 | ||
Short-Term and Other Net Assets | (0.02 | ) | |
TOTAL | 100.00 | % | |
TEN LARGEST FUND HOLDINGS As of 2/28/07 | |||
Security | Percentage of Net Assets | ||
Telefonaktiebolaget LM Ericsson Class B | 16.10 | % | |
Nordea Bank AB | 9.61 | ||
Hennes & Mauritz AB Class B | 7.55 | ||
Volvo AB Class B | 5.11 | ||
Sandvik AB | 4.83 | ||
TeliaSonera AB | 4.80 | ||
Svenska Handelsbanken AB Class A | 4.47 | ||
Skandinaviska Enskilda Banken AB Class A | 4.34 | ||
Atlas Copco AB Class A | 3.23 | ||
Svenska Cellulosa AB Class B | 2.96 | ||
TOTAL | 63.00 | % | |
FUND PERFORMANCE OVERVIEWS | 9 |
Table of Contents
Fund Performance Overview
iSHARES® MSCI SWITZERLAND INDEX FUND
Performance as of February 28, 2007
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 represented by the MSCI Switzerland Index (the “Index”). The Fund invests in a representative sample of securities in the Index, which has a similar investment profile as the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. For the six-month period ended February 28, 2007, the Fund returned 11.22%, while the Index returned 9.29%.
Average Annual Total Returns | ||||||||||||||||
Year Ended 2/28/07 | Five Years Ended 2/28/07 | Ten Years Ended 2/28/07 | ||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||
23.41% | 23.90% | 21.60% | 15.78% | 15.95% | 16.11% | 9.28% | 9.29% | 10.42% | ||||||||
Cumulative Total Returns | ||||||||||||||||
Year Ended 2/28/07 | Five Years Ended 2/28/07 | Ten Years Ended 2/28/07 | ||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||
23.41% | 23.90% | 21.60% | 108.01% | 109.61% | 110.99% | 142.80% | 143.22% | 169.33% |
“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. 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 2/28/07 | |||
Sector | Percentage of Net Assets | ||
Consumer Non-Cyclical | 45.10 | % | |
Financial | 28.24 | ||
Industrial | 10.15 | ||
Consumer Cyclical | 6.43 | ||
Basic Materials | 6.33 | ||
Communications | 2.78 | ||
Technology | 0.72 | ||
Short-Term and Other Net Assets | 0.25 | ||
TOTAL | 100.00 | % | |
TEN LARGEST FUND HOLDINGS As of 2/28/07 | |||
Security | Percentage of Net Assets | ||
Nestle SA Registered | 13.43 | % | |
Roche Holding AG | 12.33 | ||
Novartis AG Registered | 11.67 | ||
UBS AG Registered | 10.73 | ||
Zurich Financial Services AG Registered | 4.90 | ||
Credit Suisse Group Registered | 4.68 | ||
Swiss Reinsurance Co. Registered | 4.49 | ||
Compagnie Financiere Richemont AG Class A | 3.83 | ||
ABB Ltd. Registered | 3.81 | ||
Holcim Ltd. Registered | 3.13 | ||
TOTAL | 73.00 | % | |
10 | 2007 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Fund Performance Overview
iSHARES® MSCI UNITED KINGDOM INDEX FUND
Performance as of February 28, 2007
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 represented by the MSCI United Kingdom Index (the “Index”). The Fund invests in a representative sample of securities in the Index, which has a similar investment profile as the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. For the six-month period ended February 28, 2007, the Fund returned 9.08%, while the Index returned 9.40%.
Average Annual Total Returns | ||||||||||||||||
Year Ended 2/28/07 | Five Years Ended 2/28/07 | Ten Years Ended 2/28/07 | ||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||
22.93% | 22.53% | 23.71% | 13.68% | 13.79% | 14.51% | 8.05% | 8.13% | 8.63% | ||||||||
Cumulative Total Returns | ||||||||||||||||
Year Ended 2/28/07 | Five Years Ended 2/28/07 | Ten Years Ended 2/28/07 | ||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||
22.93% | 22.53% | 23.71% | 89.87% | 90.75% | 96.92% | 116.90% | 118.41% | 128.91% |
“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. 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 2/28/07 | |||
Sector | Percentage of Net Assets | ||
Financial | 27.79 | % | |
Consumer Non-Cyclical | 21.88 | ||
Energy | 15.07 | ||
Communications | 10.09 | ||
Basic Materials | 7.54 | ||
Consumer Cyclical | 7.29 | ||
Utilities | 4.96 | ||
Industrial | 4.22 | ||
Technology | 0.62 | ||
Diversified | 0.14 | ||
Short-Term and Other Net Assets | 0.40 | ||
TOTAL | 100.00 | % | |
TEN LARGEST FUND HOLDINGS As of 2/28/07 | |||
Security | Percentage of Net Assets | ||
HSBC Holdings PLC | 6.70 | % | |
BP PLC | 6.61 | ||
GlaxoSmithKline PLC | 5.34 | ||
Vodafone Group PLC | 4.85 | ||
Royal Bank of Scotland Group PLC | 4.11 | ||
Royal Dutch Shell PLC Class A | 3.98 | ||
Barclays PLC | 3.13 | ||
Royal Dutch Shell PLC Class B | 2.95 | ||
AstraZeneca PLC | 2.86 | ||
HBOS PLC | 2.65 | ||
TOTAL | 43.18 | % | |
FUND PERFORMANCE OVERVIEWS | 11 |
Table of Contents
Shareholder Expenses (Unaudited)
iSHARES®, INC.
As a shareholder of a 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, 2006 to February 28, 2007.
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 (9/1/06) | Ending Account Value (2/28/07) | Annualized Expense Ratio | Expenses Paid During Period a (9/1/06 to 2/28/07) | |||||
Austria | |||||||||
Actual | $ 1,000.00 | $ 1,175.30 | 0.52 | % | $ 2.80 | ||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,022.20 | 0.52 | 2.61 | |||||
Belgium | |||||||||
Actual | 1,000.00 | 1,137.20 | 0.52 | 2.76 | |||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,022.20 | 0.52 | 2.61 | |||||
EMU | |||||||||
Actual | 1,000.00 | 1,144.50 | 0.52 | 2.76 | |||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,022.20 | 0.52 | 2.61 | |||||
France | |||||||||
Actual | 1,000.00 | 1,109.00 | 0.52 | 2.72 | |||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,022.20 | 0.52 | 2.61 |
12 | 2007 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Shareholder Expenses (Unaudited) (Continued)
iSHARES®, INC.
iShares MSCI Index Fund | Beginning Account Value (9/1/06) | Ending Account Value (2/28/07) | Annualized Expense Ratio | Expenses Paid During Period a (9/1/06 to 2/28/07) | |||||
Germany | |||||||||
Actual | $ 1,000.00 | $ 1,185.50 | 0.52 | % | $ 2.82 | ||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,022.20 | 0.52 | 2.61 | |||||
Italy | |||||||||
Actual | 1,000.00 | 1,103.20 | 0.52 | 2.71 | |||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,022.20 | 0.52 | 2.61 | |||||
Netherlands | |||||||||
Actual | 1,000.00 | 1,108.70 | 0.52 | 2.72 | |||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,022.20 | 0.52 | 2.61 | |||||
Spain | |||||||||
Actual | 1,000.00 | 1,219.90 | 0.52 | 2.86 | |||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,022.20 | 0.52 | 2.61 | |||||
Sweden | |||||||||
Actual | 1,000.00 | 1,227.90 | 0.52 | 2.87 | |||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,022.20 | 0.52 | 2.61 | |||||
Switzerland | |||||||||
Actual | 1,000.00 | 1,112.20 | 0.52 | 2.72 | |||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,022.20 | 0.52 | 2.61 | |||||
United Kingdom | |||||||||
Actual | 1,000.00 | 1,090.80 | 0.52 | 2.70 | |||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,022.20 | 0.52 | 2.61 |
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 |
Table of Contents
Schedule of Investments (Unaudited)
iSHARES® MSCI AUSTRIA INDEX FUND
February 28, 2007
Security | Shares | Value | |||
COMMON STOCKS – 99.70% | |||||
BANKS – 24.44% | |||||
Erste Bank der Oesterreichischen | 1,164,910 | $ | 86,418,326 | ||
Raiffeisen International Bank Holding AG | 151,552 | 20,359,589 | |||
106,777,915 | |||||
BUILDING MATERIALS – 4.98% | |||||
Wienerberger AG | 354,520 | 21,776,099 | |||
21,776,099 | |||||
CHEMICALS – 0.14% | |||||
Lenzing AG | 1,746 | 611,190 | |||
611,190 | |||||
ELECTRIC – 5.58% | |||||
EVN AGa | 40,138 | 4,514,678 | |||
Oesterreichische Elektrizitaetswirtschafts AG Class A | 472,414 | 19,850,562 | |||
24,365,240 | |||||
ENGINEERING & CONSTRUCTION – 2.24% | |||||
Flughafen Wien AG | 105,774 | 9,791,729 | |||
9,791,729 | |||||
ENTERTAINMENT – 1.04% | |||||
bwin Interactive Entertainment AGb | 139,180 | 4,559,476 | |||
4,559,476 | |||||
ENVIRONMENTAL CONTROL – 0.27% | |||||
BWT AG | 16,714 | 819,107 | |||
Christ Water Technology AGb | 21,106 | 362,440 | |||
1,181,547 | |||||
FOREST PRODUCTS & PAPER – 1.67% | |||||
Mayr-Melnhof Karton AG | 37,698 | 7,297,278 | |||
7,297,278 | |||||
INSURANCE – 3.42% | |||||
Wiener Staedtische Allgemeine | 215,110 | 14,960,474 | |||
14,960,474 | |||||
IRON & STEEL – 9.53% | |||||
Boehler-Uddeholm AG | 288,351 | 21,196,932 | |||
voestalpine AG | 330,934 | 20,458,492 | |||
41,655,424 |
Security | Shares or Principal | Value | ||||
MACHINERY – 3.65% | ||||||
Andritz AG | 75,640 | $ | 15,936,707 | |||
15,936,707 | ||||||
MACHINERY – CONSTRUCTION & MINING – 0.54% | ||||||
Palfinger AG | 16,104 | 2,361,256 | ||||
2,361,256 | ||||||
MANUFACTURING – 2.27% | ||||||
RHI AGb | 218,624 | 9,917,096 | ||||
9,917,096 | ||||||
OIL & GAS – 11.34% | ||||||
OMV AG | 888,751 | 49,530,876 | ||||
49,530,876 | ||||||
REAL ESTATE – 15.80% | ||||||
CA Immobilien Anlagen AGb | 724,104 | 21,999,619 | ||||
Immoeast AGb | 719,761 | 10,648,605 | ||||
IMMOFINANZ AGb | 903,739 | 13,716,693 | ||||
Meinl European Land Ltd.b | 838,558 | 22,652,326 | ||||
69,017,243 | ||||||
TELECOMMUNICATIONS – 12.79% | ||||||
Telekom Austria AG | 2,239,203 | 55,903,841 | ||||
55,903,841 | ||||||
TOTAL COMMON STOCKS | 435,643,391 | |||||
SHORT-TERM INVESTMENTS – 0.79% | ||||||
CERTIFICATES OF DEPOSITc – 0.04% | ||||||
Credit Suisse First Boston NY | ||||||
5.28% - 5.43%, | $ | 37,130 | 37,130 | |||
Deutsche Bank AG | ||||||
5.35%, 08/08/07 | 61,884 | 61,884 | ||||
Washington Mutual Bank | ||||||
5.33%, 03/19/07 | 61,884 | 61,884 | ||||
160,898 | ||||||
COMMERCIAL PAPERc – 0.18% | ||||||
Amstel Funding Corp. | ||||||
5.22%, | 23,543 | 23,395 | ||||
BNP Paribas Finance Inc. | ||||||
5.12%, 06/06/07 | 8,664 | 8,544 |
14 | 2007 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI AUSTRIA INDEX FUND
February 28, 2007
Security | Principal | Value | ||||
Bryant Park Funding LLC | ||||||
5.27%, 03/06/07d | $ | 6,100 | $ | 6,096 | ||
Cantabric Finance LLC | ||||||
5.25%, 03/06/07d | 19,803 | 19,788 | ||||
Cheyne Finance LLC | ||||||
5.24%, | 18,565 | 18,432 | ||||
Concord Minutemen Capital Co. LLC | ||||||
5.29%, 03/19/07d | 12,616 | 12,583 | ||||
Crown Point Capital Co. LLC | ||||||
5.20%, 07/18/07d | 28,594 | 28,020 | ||||
Edison Asset Securitization LLC | ||||||
5.21%, 04/11/07d | 10,259 | 10,198 | ||||
Five Finance Inc. | ||||||
5.22%, 04/20/07d | 11,387 | 11,304 | ||||
General Electric Capital Corp. | ||||||
5.12% - 5.20%, | 43,319 | 42,575 | ||||
Giro Funding Corp. | ||||||
5.25%, 03/05/07 - 03/12/07d | 40,596 | 40,547 | ||||
Grampian Funding LLC | ||||||
5.14% - 5.23%, | 48,269 | 47,669 | ||||
Harrier Finance Funding LLC | ||||||
5.12%, 06/06/07d | 24,753 | 24,412 | ||||
Irish Permanent Treasury PLC | ||||||
5.18%, 07/10/07 | 12,377 | 12,143 | ||||
KKR Pacific Funding Trust | ||||||
5.29%, 03/13/07d | 30,942 | 30,887 | ||||
Lexington Parker Capital Co. LLC | ||||||
5.18% - 5.20%, | 31,276 | 30,744 | ||||
Liberty Street Funding Corp. | ||||||
5.27%, 03/06/07d | 2,970 | 2,968 | ||||
Lockhart Funding LLC | ||||||
5.25%, | 55,843 | 55,313 | ||||
Nationwide Building Society | ||||||
5.21%, 04/13/07d | 23,516 | 23,369 | ||||
Nestle Capital Corp. | ||||||
5.19%, 08/09/07 | 14,852 | 14,507 | ||||
Sedna Finance Inc. | ||||||
5.22%, 04/17/07d | 14,109 | 14,013 |
Security | Shares or Principal | Value | ||||
Simba Funding Corp. | ||||||
5.20%, 07/23/07d | $ | 24,753 | $ | 24,239 | ||
Societe Generale | ||||||
5.18%, 05/16/07 | 61,884 | 61,207 | ||||
Thames Asset Global Securitization No. 1 Inc. | ||||||
5.25% - 5.28%, | 94,300 | 94,209 | ||||
Thornburg Mortgage Capital Resources LLC | ||||||
5.28%, 03/12/07d | 18,120 | 18,090 | ||||
Three Pillars Funding Corp. | ||||||
5.26%, | 12,995 | 12,985 | ||||
Tulip Funding Corp. | ||||||
5.29%, 03/15/07d | 47,517 | 47,420 | ||||
Westpac Banking Corp. | ||||||
5.20%, 07/12/07d | 22,278 | 21,850 | ||||
Zela Finance Inc. | ||||||
5.20%, 07/16/07d | 14,852 | 14,558 | ||||
772,065 | ||||||
MEDIUM-TERM NOTESc – 0.02% | ||||||
Bank of America N.A. | ||||||
5.28%, 04/20/07 | 6,188 | 6,188 | ||||
Cullinan Finance Corp. | ||||||
5.71%, 06/28/07d | 18,565 | 18,565 | ||||
K2 USA LLC | ||||||
5.39%, 06/04/07d | 18,565 | 18,565 | ||||
Sigma Finance Inc. | ||||||
5.13% - 5.51%, | 28,962 | 28,962 | ||||
72,280 | ||||||
MONEY MARKET FUNDS – 0.00% | ||||||
Barclays Global Investors Funds Institutional Money Market Fund, Institutional Shares | ||||||
5.30%e,f | 16,395 | 16,395 | ||||
16,395 |
SCHEDULESOF INVESTMENTS | 15 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI AUSTRIA INDEX FUND
February 28, 2007
Security | Principal | Value | ||||
REPURCHASE AGREEMENTSc – 0.11% | ||||||
Banc of America Securities LLC | $ | 49,507 | $ | 49,507 | ||
Bear Stearns Companies Inc. (The) | 37,130 | 37,130 | ||||
BNP Securities Corp. | 2,475 | 2,475 | ||||
Citigroup Global Markets Holdings Inc. | 37,130 | 37,130 | ||||
Citigroup Global Markets Holdings Inc. | 49,507 | 49,507 | ||||
Citigroup Global Markets Holdings Inc. | 27,229 | 27,229 |
Security | Principal | Value | ||||
Citigroup Global Markets Holdings Inc. | $ | 14,852 | $ | 14,852 | ||
Goldman Sachs Group Inc. (The) | 9,185 | 9,185 | ||||
Greenwich Capital Markets Inc. | 103,965 | 103,965 | ||||
HSBC Securities Inc. | 12,377 | 12,377 | ||||
JP Morgan Securities Inc. | 6,188 | 6,188 | ||||
Merrill Lynch & Co. Inc. | 24,753 | 24,753 |
16 | 2007 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI AUSTRIA INDEX FUND
February 28, 2007
Security | Principal | Value | ||||
Morgan Stanley | $ | 24,753 | $ | 24,753 | ||
Morgan Stanley | 17,327 | 17,327 | ||||
Wachovia Capital | 54,458 | 54,458 | ||||
470,836 | ||||||
TIME DEPOSITSc – 0.03% | ||||||
Bank of Nova Scotia | ||||||
5.30%, 03/02/07 | 10,381 | 10,381 | ||||
Chase Bank USA N.A. | ||||||
5.38%, 03/01/07 | 37,130 | 37,130 | ||||
Citibank N.A. | ||||||
5.47%, 03/01/07 | 37,130 | 37,130 | ||||
Deutsche Bank AG | ||||||
5.38%, 03/01/07 | 58,139 | 58,139 | ||||
142,780 | ||||||
VARIABLE & FLOATING RATE NOTESc – 0.41% | ||||||
Allstate Life Global Funding II | ||||||
5.30% - 5.40%, | 63,369 | 63,375 | ||||
American Express Centurion Bank | ||||||
5.41%, 07/19/07 | 27,229 | 27,241 | ||||
American Express Credit Corp. | ||||||
5.42%, 03/05/08 | 7,426 | 7,430 | ||||
AmeriCredit Automobile Receivables Trust | ||||||
5.35%, 03/06/07 | 1,128 | 1,128 |
Security | Principal | Value | ||||
Arkle Master Issuer PLC Series 2006-1A | ||||||
5.30%, 11/19/07d | $ | 18,565 | $ | 18,565 | ||
ASIF Global Financing | ||||||
5.40%, 05/03/07d | 2,475 | 2,476 | ||||
Australia & New Zealand Banking | ||||||
5.32%, 02/22/08d | 16,090 | 16,090 | ||||
Bank of Ireland | ||||||
5.30% - 5.32%, | 35,893 | 35,893 | ||||
Beta Finance Inc. | ||||||
5.29% - 5.41%, | 63,121 | 63,122 | ||||
BMW US Capital LLC | ||||||
5.32%, 01/15/08d | 24,753 | 24,753 | ||||
BNP Paribas | ||||||
5.33%, 11/19/07d | 45,794 | 45,794 | ||||
Brigantine High Grade Funding Ltd. | ||||||
5.40%, 09/05/07d | 23,763 | 23,761 | ||||
Carlyle Loan Investment Ltd. | ||||||
5.37%, | 18,070 | 18,069 | ||||
CC USA Inc. | ||||||
5.36%, 07/30/07d | 12,377 | 12,377 | ||||
Commodore CDO Ltd. | ||||||
5.44%, 12/12/07d | 6,188 | 6,188 | ||||
Credit Agricole SA | ||||||
5.33%, 11/23/07 | 24,753 | 24,753 | ||||
Credit Suisse First Boston NY | ||||||
5.36%, 04/24/07 | 12,377 | 12,377 | ||||
Cullinan Finance Corp. | ||||||
5.36%, 04/25/07d | 6,188 | 6,188 | ||||
DaimlerChrysler Auto Trust | ||||||
5.33%, 10/08/07d | 1,899 | 1,899 | ||||
DEPFA Bank PLC | ||||||
5.40%, 12/14/07d | 24,753 | 24,753 | ||||
Dorada Finance Inc. | ||||||
5.33% - 5.41%, | 28,467 | 28,467 | ||||
Eli Lilly Services Inc. | ||||||
5.31%, 03/01/07d | 16,523 | 16,523 |
SCHEDULESOF INVESTMENTS | 17 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI AUSTRIA INDEX FUND
February 28, 2007
Security | Principal | Value | ||||
Fifth Third Bancorp | ||||||
5.32%, 02/22/08d | $ | 49,507 | $ | 49,507 | ||
Five Finance Inc. | ||||||
5.31% - 5.37%, | 16,090 | 16,089 | ||||
General Electric Capital Corp. | ||||||
5.28% - 5.45%, | 25,991 | 25,994 | ||||
Granite Master Issuer PLC | ||||||
5.29%, 08/20/07d | 86,637 | 86,637 | ||||
Harrier Finance Funding LLC | ||||||
5.29% - 5.36%, | 32,180 | 32,180 | ||||
Hartford Life Global Funding Trust | ||||||
5.36% - 5.40%, | 37,130 | 37,132 | ||||
HBOS Treasury Services PLC | ||||||
5.46%, 01/24/08d | 24,753 | 24,753 | ||||
Holmes Financing PLC | ||||||
5.29%, 07/16/07d | 43,319 | 43,319 | ||||
JP Morgan Securities Inc. | ||||||
5.40%, 11/16/07 | 49,507 | 49,507 | ||||
JPMorgan Chase & Co. | ||||||
5.29% - 5.45%, | 68,072 | 68,072 | ||||
K2 USA LLC | ||||||
5.20% - 5.33%, | 18,565 | 18,565 | ||||
Kestrel Funding LLC | ||||||
5.30%, 07/11/07d | 9,901 | 9,901 | ||||
Kommunalkredit Austria AG | ||||||
5.32%, 02/08/08d | 14,852 | 14,852 | ||||
Leafs LLC | ||||||
5.32%, 01/22/08d | 23,983 | 23,983 | ||||
Links Finance LLC | ||||||
5.28% - 5.35%, | 27,229 | 27,228 | ||||
Lothian Mortgages Master Issuer PLC | ||||||
5.29%, 04/24/07d | 8,727 | 8,727 | ||||
Marshall & Ilsley Bank | ||||||
5.32%, 02/15/08 | 13,614 | 13,614 |
Security | Principal | Value | ||||
Master Funding LLC | ||||||
5.35%, 04/25/07 - 05/25/07d | $ | 44,797 | $ | 44,797 | ||
Merrill Lynch & Co. Inc. | ||||||
5.46%, 05/30/07g | 27,229 | 27,229 | ||||
Metropolitan Life Global Funding I | ||||||
5.33%, 03/06/08d | 37,130 | 37,130 | ||||
Metropolitan Life Insurance Funding Agreement | ||||||
5.44%, 08/01/07d,g | 2,475 | 2,475 | ||||
Mound Financing PLC | ||||||
5.29%, 05/08/07d | 23,268 | 23,268 | ||||
Natexis Banques Populaires | ||||||
5.33% - 5.35%, | 39,606 | 39,605 | ||||
National City Bank of Indiana | ||||||
5.34%, 05/21/07 | 12,377 | 12,377 | ||||
Nationwide Building Society | ||||||
5.37% - 5.48%, | 81,687 | 81,696 | ||||
Newcastle Ltd. | ||||||
5.34%, 04/24/07 - 01/24/08d | 24,815 | 24,812 | ||||
Northern Rock PLC | ||||||
5.38%, 02/01/08d | 29,704 | 29,705 | ||||
Northlake CDO I | ||||||
5.42%, 09/06/07d | 7,426 | 7,426 | ||||
Pricoa Global Funding I | ||||||
5.31%, 02/27/08d | 33,417 | 33,417 | ||||
Sedna Finance Inc. | ||||||
5.32% - 5.34%, | 35,893 | 35,892 | ||||
Skandinaviska Enskilda Banken | ||||||
5.32%, 02/15/08d | 24,753 | 24,753 | ||||
Strips III LLC | ||||||
5.37%, 07/24/07d | 5,037 | 5,037 | ||||
SunTrust Bank | ||||||
5.29%, 05/01/07 | 24,753 | 24,754 | ||||
Tango Finance Corp. | ||||||
5.27% - 5.34%, | 60,399 | 60,396 | ||||
Union Hamilton Special Funding LLC | ||||||
5.36% - 5.37%, | 40,843 | 40,842 |
18 | 2007 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI AUSTRIA INDEX FUND
February 28, 2007
Security | Principal | Value | |||||
Wachovia Asset Securitization Inc. | $ | 27,942 | $ | 27,942 | |||
Wachovia Bank N.A. | 49,507 | 49,507 | |||||
Wal-Mart Stores Inc. | 18,565 | 18,570 | |||||
Wells Fargo & Co. | 12,377 | 12,377 | |||||
WhistleJacket Capital Ltd. | |||||||
5.28% - 5.35%, 04/18/07 - 06/13/07d | 18,565 | 18,565 | |||||
White Pine Finance LLC | |||||||
5.28% - 5.32%, 05/22/07 - 08/20/07d | 74,260 | 74,254 | |||||
Wind Master Trust | 9,901 | 9,901 | |||||
1,798,009 | |||||||
TOTAL SHORT-TERM INVESTMENTS | |||||||
(Cost: $3,433,263) | 3,433,263 | ||||||
TOTAL INVESTMENTS | |||||||
IN SECURITIES – 100.49% |
| ||||||
(Cost: $350,565,669) | 439,076,654 | ||||||
Other Assets, Less Liabilities – (0.49)% | (2,135,727 | ) | |||||
NET ASSETS – 100.00% | $ | 436,940,927 | |||||
a | All or a portion of this security represents a security on loan. See Note 5. |
b | Non-income earning security. |
c | All or a portion of this security (these securities) represent(s) an investment of securities lending collateral. See Note 5. |
d | This security or a portion of these securities may be resold to qualified institutional buyers under Rule 144A or pursuant to Section 4(2) of the Securities Act of 1933. |
e | Affiliated issuer. See Note 2. |
f | The rate quoted is the annualized seven-day yield of the fund at period end. |
g | 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 financial statements.
SCHEDULESOF INVESTMENTS | 19 |
Table of Contents
Schedule of Investments (Unaudited)
iSHARES® MSCI BELGIUM INDEX FUND
February 28, 2007
Security | Shares | Value | |||
COMMON STOCKS – 99.88% | |||||
BANKS – 49.54% | |||||
Banque Nationale de Belgique | 256 | $ | 1,270,797 | ||
Dexia SA | 956,377 | 28,159,541 | |||
Fortis | 1,461,068 | 62,763,528 | |||
KBC Group NV | 306,896 | 37,280,057 | |||
129,473,923 | |||||
BEVERAGES – 4.88% | |||||
InBev | 192,564 | 12,746,351 | |||
12,746,351 | |||||
CHEMICALS – 4.91% | |||||
Solvay SA | 90,311 | 12,827,933 | |||
12,827,933 | |||||
ELECTRICAL COMPONENTS & EQUIPMENT – 1.34% | |||||
NV Bekaert SA | 29,184 | 3,496,540 | |||
3,496,540 | |||||
ELECTRONICS – 0.64% | |||||
Barco NV | 18,202 | 1,668,889 | |||
1,668,889 | |||||
FOOD – 7.20% | |||||
Colruyt SA | 36,461 | 7,937,288 | |||
Delhaize Group | 130,867 | 10,883,817 | |||
18,821,105 | |||||
HOLDING COMPANIES - DIVERSIFIED – 7.91% | |||||
Groupe Bruxelles Lambert SA | 112,981 | 12,622,910 | |||
Sofina SA | 73,419 | 8,059,273 | |||
20,682,183 | |||||
MANUFACTURING – 1.39% | |||||
AGFA-Gevaert NV | 163,486 | 3,636,713 | |||
3,636,713 | |||||
MINING – 3.55% | |||||
Umicore | 54,291 | 9,277,860 | |||
9,277,860 | |||||
PHARMACEUTICALS – 6.17% | |||||
Omega Pharma SA | 42,707 | 3,298,516 | |||
UCB SA | 199,161 | 12,843,650 | |||
16,142,166 | |||||
REAL ESTATE INVESTMENT TRUSTS – 3.80% | |||||
Cofinimmo | 49,942 | 9,930,597 | |||
9,930,597 |
Security | Shares | Value | |||
RETAIL – 1.04% | |||||
SA D’Ieteren NV | 7,290 | $ | 2,720,397 | ||
2,720,397 | |||||
TELECOMMUNICATIONS – 6.77% | |||||
Belgacom SA | 298,612 | 12,788,118 | |||
Mobistar SA | 58,031 | 4,898,322 | |||
17,686,440 | |||||
TRANSPORTATION – 0.74% | |||||
Compagnie Maritime Belge SA | 24,662 | 1,313,515 | |||
Euronav SA | 20,420 | 616,082 | |||
1,929,597 | |||||
TOTAL COMMON STOCKS | |||||
261,040,694 | |||||
SHORT-TERM INVESTMENTS – 0.06% | |||||
MONEY MARKET FUNDS – 0.06% | |||||
Barclays Global Investors Funds | 161,525 | 161,525 | |||
161,525 | |||||
TOTAL SHORT-TERM INVESTMENTS | |||||
(Cost: $161,525) | 161,525 | ||||
TOTAL INVESTMENTS | |||||
IN SECURITIES – 99.94% | |||||
(Cost: $225,102,129) | 261,202,219 | ||||
Other Assets, Less Liabilities – 0.06% | 151,343 | ||||
NET ASSETS – 100.00% | $ | 261,353,562 | |||
a | Affiliated issuer. See Note 2. |
b | The rate quoted is the annualized seven-day yield of the fund at period end. |
See notes to financial statements.
20 | 2007 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited)
iSHARES® MSCI EMU INDEX FUND
February 28, 2007
Security | Shares | Value | |||
COMMON STOCKS – 98.51% | |||||
AUSTRIA – 1.85% | |||||
Andritz AG | 6,086 | $ | 1,282,269 | ||
Boehler-Uddeholm AG | 22,981 | 1,689,353 | |||
Erste Bank der Oesterreichischen Sparkassen AG | 110,194 | 8,174,692 | |||
Flughafen Wien AG | 6,019 | 557,192 | |||
Immoeast AGa | 153,716 | 2,274,173 | |||
IMMOFINANZ AGa | 272,244 | 4,132,042 | |||
Mayr-Melnhof Karton AG | 5,171 | 1,000,961 | |||
Meinl European Land Ltd.a | 108,240 | 2,923,933 | |||
Oesterreichische Elektrizitaetswirtschafts AG Class A | 47,100 | 1,979,115 | |||
OMV AG | 97,270 | 5,420,943 | |||
Raiffeisen International Bank Holding AG | 21,761 | 2,923,386 | |||
RHI AGa | 19,698 | 893,529 | |||
Telekom Austria AG | 191,219 | 4,773,965 | |||
voestalpine AG | 45,881 | 2,836,384 | |||
Wiener Staedtische Allgemeine Versicherung AG | 16,884 | 1,174,249 | |||
Wienerberger AG | 38,436 | 2,360,900 | |||
44,397,086 | |||||
BELGIUM – 3.66% | |||||
AGFA-Gevaert NV | 48,685 | 1,082,988 | |||
Barco NV | 7,422 | 680,502 | |||
Belgacom SA | 71,765 | 3,073,350 | |||
Cofinimmo | 4,750 | 944,502 | |||
Colruyt SA | 9,035 | 1,966,852 | |||
Compagnie Maritime Belge SA | 13,932 | 742,028 | |||
Delhaize Group | 43,522 | 3,619,595 | |||
Dexia SA | 323,637 | 9,529,160 | |||
Euronav SA | 12,849 | 387,661 | |||
Fortis | 645,088 | 27,711,235 | |||
Groupe Bruxelles Lambert SA | 41,207 | 4,603,891 | |||
InBev | 91,674 | 6,068,159 | |||
KBC Group NV | 105,101 | 12,767,098 | |||
Mobistar SA | 17,594 | 1,485,087 | |||
NV Bekaert SA | 8,806 | 1,055,048 | |||
Omega Pharma SA | 11,675 | 901,730 |
Security | Shares | Value | |||
SA D’Ieteren NV | 1,437 | $ | 536,243 | ||
Solvay SA | 37,503 | 5,326,992 | |||
UCB SA | 47,800 | 3,082,564 | |||
Umicore | 14,098 | 2,409,226 | |||
87,973,911 | |||||
FINLAND – 4.36% | |||||
Amer Group OYJ | 34,800 | 764,006 | |||
Cargotec Corp. Class B | 24,177 | 1,424,373 | |||
Elisa OYJ Class A | 85,655 | 2,525,418 | |||
Fortum OYJ | 233,815 | 6,442,776 | |||
KCI Konecranes OYJ | 38,976 | 1,214,539 | |||
Kesko OYJ Class B | 31,484 | 1,657,729 | |||
Kone OYJ Class B | 45,472 | 2,598,465 | |||
Metso OYJ | 68,987 | 3,418,225 | |||
Neste Oil OYJ | 81,951 | 2,628,387 | |||
Nokia OYJ | 2,155,265 | 46,946,985 | |||
Nokian Renkaat OYJ | 76,858 | 1,874,162 | |||
OKO Bank PLC Class A | 43,059 | 737,718 | |||
Orion OYJa | 48,152 | 1,058,410 | |||
Outokumpu OYJ | 55,097 | 2,049,496 | |||
Rautaruukki OYJ | 50,467 | 2,306,588 | |||
Sampo OYJ | 221,351 | 6,169,505 | |||
SanomaWSOY OYJ Class Bb | 18,057 | 515,689 | |||
Stora Enso OYJ Class R | 353,732 | 5,826,761 | |||
TietoEnator OYJ | 42,133 | 1,182,681 | |||
UPM-Kymmene OYJ | 298,635 | 7,771,293 | |||
Uponor OYJ | 41,207 | 1,440,825 | |||
Wartsila OYJ Class B | 33,930 | 2,025,856 | |||
YIT OYJ | 63,104 | 2,054,756 | |||
104,634,643 | |||||
FRANCE – 29.10% | |||||
Accor SA | 115,287 | 10,162,202 | |||
Air France-KLM | 64,357 | 2,788,406 | |||
Alcatel-Lucent | 1,148,240 | 14,636,808 | |||
ALSTOMa | 61,116 | 7,374,793 | |||
Arcelor Mittal | 378,861 | 19,172,486 | |||
Atos Origin SAa | 37,368 | 2,019,863 | |||
AXA | 924,611 | 39,279,095 | |||
BNP Paribas | 463,009 | 48,280,631 | |||
Bouygues SA | 113,898 | 7,928,903 | |||
Business Objects SAa | 52,976 | 1,930,711 | |||
Cap Gemini SA | 72,691 | 5,074,719 |
SCHEDULESOF INVESTMENTS | 21 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI EMU INDEX FUND
February 28, 2007
Security | Shares | Value | |||
Carrefour SA | 333,360 | $ | 22,228,963 | ||
Casino Guichard-Perrachon SA | 23,030 | 1,980,438 | |||
CNP Assurances SA | 20,136 | 2,253,969 | |||
Compagnie de Saint-Gobain | 171,865 | 15,982,565 | |||
Compagnie Generale des Etablissements | 83,373 | 8,658,544 | |||
Credit Agricole SAb | 378,039 | 15,061,018 | |||
Dassault Systemes SA | 31,960 | 1,633,820 | |||
Essilor International SA | 53,708 | 6,118,347 | |||
European Aeronautic Defence and | 59,264 | 2,028,359 | |||
France Telecom SA | 931,093 | 25,250,407 | |||
Gaz de Franceb | 110,813 | 4,875,866 | |||
Gecina SA | 4,189 | 769,151 | |||
Groupe Danone | 126,862 | 20,064,157 | |||
Hermes International | 36,114 | 4,710,848 | |||
Imerys SA | 19,172 | 1,707,429 | |||
Klepierre | 12,122 | 2,385,871 | |||
Lafarge SA | 85,655 | 12,791,152 | |||
Lagardere SCA | 64,960 | 4,984,640 | |||
L’Air Liquide SA | 66,712 | 15,269,110 | |||
L’Oreal SA | 164,365 | 17,180,543 | |||
LVMH Moet Hennessy Louis Vuitton SA | 133,344 | 14,748,266 | |||
M6-Metropole Television | 34,262 | 1,214,283 | |||
Neopost SA | 17,131 | 2,205,441 | |||
Pernod Ricard SA | 48,884 | 10,072,792 | |||
PPR SA | 37,966 | 5,702,190 | |||
PSA Peugeot Citroen SA | 86,462 | 5,823,669 | |||
Publicis Groupe SA | 76,404 | 3,419,368 | |||
Renault SA | 102,323 | 12,149,853 | |||
Sanofi-Aventis | 560,230 | 47,554,702 | |||
Schneider Electric SA | 125,936 | 15,271,404 | |||
SCOR | 49,610 | 1,258,221 | |||
Societe BIC | 13,572 | 926,157 | |||
Societe des Autoroutes Paris-Rhin-Rhone | 16,244 | 1,362,552 | |||
Societe Generale Class A | 205,467 | 34,561,557 | |||
Societe Television Francaise 1 | 66,672 | 2,243,153 | |||
Sodexho Alliance SA | 58,475 | 4,028,199 | |||
STMicroelectronics NV | 386,605 | 7,491,762 |
Security | Shares | Value | |||
Suez SA | 556,526 | $ | 26,920,937 | ||
Technip SA | 50,467 | 3,387,217 | |||
Thales SA | 81,951 | 4,215,379 | |||
Total SA | 1,212,597 | 81,722,816 | |||
Unibail Holding | 25,465 | 7,351,247 | |||
Valeo SA | 41,026 | 2,016,532 | |||
Vallourec SA | 19,909 | 4,926,553 | |||
Veolia Environnement | 158,346 | 11,152,792 | |||
Vinci SA | 110,194 | 15,235,845 | |||
Vivendi SA | 638,940 | 25,193,633 | |||
Zodiac SA | 32,018 | 2,173,921 | |||
698,914,255 | |||||
GERMANY – 21.22% | |||||
Adidas AG | 111,120 | 5,448,621 | |||
Allianz SE | 231,500 | 49,778,112 | |||
ALTANA AG | 39,440 | 2,383,496 | |||
BASF AG | 274,559 | 27,871,859 | |||
Bayer AG | 401,421 | 23,050,275 | |||
Beiersdorf AG | 30,095 | 1,947,945 | |||
Bilfinger Berger AG | 18,520 | 1,534,626 | |||
Celesio AG | 39,904 | 2,260,783 | |||
Commerzbank AG | 349,102 | 14,387,764 | |||
Continental AG | 74,543 | 9,286,477 | |||
DaimlerChrysler AG Registered | 504,670 | 34,272,160 | |||
Deutsche Bank AG | 289,375 | 37,938,303 | |||
Deutsche Boerse AG | 58,338 | 11,664,041 | |||
Deutsche Lufthansa AG | 126,399 | 3,416,140 | |||
Deutsche Post AG | 431,516 | 13,748,667 | |||
Deutsche Postbank AG | 31,947 | 2,681,835 | |||
Deutsche Telekom AG | 1,499,657 | 26,861,979 | |||
Douglas Holding AG | 16,240 | 939,608 | |||
E.ON AG | 339,379 | 44,444,729 | |||
Fresenius Medical Care AG & Co. KGaA | 35,188 | 4,973,530 | |||
Heidelberger Druckmaschinen AG | 36,114 | 1,545,635 | |||
Hochtief AG | 29,632 | 2,576,352 | |||
Hypo Real Estate Holding AG | 77,784 | 4,919,611 | |||
Infineon Technologies AGa | 432,905 | 6,633,412 | |||
IVG Immobilien AG | 49,541 | 2,206,677 | |||
KarstadtQuelle AGa,b | 37,503 | 1,300,910 | |||
Linde AG | 60,094 | 6,113,144 |
22 | 2007 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI EMU INDEX FUND
February 28, 2007
Security | Shares | Value | |||
MAN AG | 71,302 | $ | 7,650,759 | ||
Merck KGaA | 31,583 | 3,923,725 | |||
METRO AG | 87,074 | 6,013,266 | |||
Muenchener Rueckversicherungs- Gesellschaft AG | 111,120 | 17,677,193 | |||
Puma AG | 6,945 | 2,463,218 | |||
Rheinmetall AG | 19,446 | 1,563,066 | |||
RWE AG | 242,149 | 24,661,724 | |||
Salzgitter AG | 23,150 | 2,855,254 | |||
SAP AG | 494,484 | 22,737,497 | |||
Siemens AG | 468,556 | 49,360,389 | |||
Suedzucker AG | 35,651 | 752,078 | |||
ThyssenKrupp AG | 198,673 | 9,723,295 | |||
TUI AGb | 135,196 | 3,148,492 | |||
Volkswagen AG | 93,063 | 11,720,296 | |||
Wincor Nixdorf AG | 7,888 | 1,285,681 | |||
509,722,624 | |||||
GREECE – 1.54% | |||||
Coca-Cola Hellenic Bottling Co. SA ADR | 168,995 | 6,597,565 | |||
Hellenic Telecommunications | |||||
Organization SA ADRa | 820,908 | 11,147,931 | |||
National Bank of Greece SA ADR | 1,848,828 | 19,338,741 | |||
37,084,237 | |||||
IRELAND – 2.73% | |||||
Allied Irish Banks PLC | 495,873 | 14,574,271 | |||
Bank of Ireland | 554,211 | 12,628,467 | |||
C&C Group PLC | 150,475 | 2,087,084 | |||
CRH PLC | 301,876 | 12,580,976 | |||
DCC PLC | 47,328 | 1,594,207 | |||
DEPFA Bank PLC | 209,739 | 3,515,825 | |||
Elan Corp. PLCa | 235,667 | 3,028,991 | |||
Grafton Group PLCa | 120,957 | 1,904,556 | |||
Greencore Group PLC | 112,141 | 681,410 | |||
IAWS Group PLC | 60,653 | 1,407,701 | |||
Independent News & Media PLC | 341,697 | 1,489,503 | |||
Irish Life & Permanent PLC | 157,930 | 4,468,590 | |||
Kerry Group PLC Class A | 70,839 | 1,871,496 | |||
Kingspan Group PLC | 69,453 | 1,889,925 | |||
Paddy Power PLC | 57,875 | 1,311,117 | |||
Ryanair Holdings PLCa | 43,520 | 331,129 |
Security | Shares | Value | |||
Total Produce PLCa | 182,058 | $ | 187,582 | ||
65,552,830 | |||||
ITALY – 10.68% | |||||
Alleanza Assicurazioni SpAb | 221,118 | 2,839,074 | |||
Arnoldo Mondadori Editore SpA | 57,528 | 594,254 | |||
Assicurazioni Generali SpA | 518,560 | 22,248,535 | |||
Autogrill SpA | 94,920 | 1,712,753 | |||
Autostrade SpA | 163,968 | 4,938,332 | |||
Banca Monte dei Paschi di Siena SpAb | 645,525 | 4,161,206 | |||
Banca Popolare di Milano Scrl | 244,464 | 3,787,907 | |||
Banche Popolari Unite Scrl | 186,589 | 5,299,207 | |||
Banco Popolare di Verona e Novara Scrl | 209,739 | 6,344,553 | |||
Benetton Group SpA | 30,430 | 499,643 | |||
Bulgari SpA | 82,975 | 1,195,800 | |||
Capitalia SpA | 920,140 | 7,912,638 | |||
Enel SpA | 2,264,261 | 23,613,752 | |||
Eni SpA | 1,437,458 | 43,957,455 | |||
Fiat SpAa | 291,227 | 6,893,758 | |||
Finmeccanica SpA | 208,380 | 6,143,793 | |||
Fondiaria-Sai SpA | 41,442 | 1,890,817 | |||
Gruppo Editoriale L’Espresso SpAb | 90,965 | 477,036 | |||
Intesa Sanpaolo SpA | 4,118,812 | 29,951,300 | |||
Italcementi SpA | 49,666 | 1,490,575 | |||
Lottomatica SpA | 42,793 | 1,690,170 | |||
Luxottica Group SpA | 71,862 | 2,249,749 | |||
Mediaset SpA | 418,089 | 4,848,971 | |||
Mediobanca SpA | 266,908 | 5,976,098 | |||
Mediolanum SpAb | 152,894 | 1,270,362 | |||
Pirelli & C. SpA | 1,485,934 | 1,658,604 | |||
Seat Pagine Gialle SpA | 2,322,408 | 1,426,520 | |||
Snam Rete Gas SpA | 466,241 | 2,785,322 | |||
Telecom Italia SpA | 5,682,862 | 17,171,751 | |||
Terna SpA | 436,900 | 1,517,834 | |||
Tiscali SpAa,b | 165,889 | 556,593 | |||
UniCredito Italiano SpA | 4,260,989 | 39,399,874 | |||
256,504,236 | |||||
NETHERLANDS – 10.12% | |||||
ABN AMRO Holding NV | 1,007,025 | 35,264,389 | |||
Aegon NV | 799,601 | 15,790,682 |
SCHEDULESOF INVESTMENTS | 23 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI EMU INDEX FUND
February 28, 2007
Security | Shares | Value | |||
Akzo Nobel NV | 151,401 | $ | 9,317,681 | ||
ASML Holding NVa | 275,948 | 6,783,596 | |||
Buhrmann NV | 63,010 | 859,797 | |||
Corio NV | 22,224 | 2,062,315 | |||
Euronext NV | 48,825 | 5,304,745 | |||
Fugro NV | 29,632 | 1,384,466 | |||
Hagemeyer NVa,b | 301,413 | 1,425,382 | |||
Heineken NV | 109,731 | 5,399,356 | |||
ING Groep NV | 1,028,786 | 43,854,119 | |||
Koninklijke Ahold NVa | 867,321 | 8,661,399 | |||
Koninklijke DSM NV | 82,977 | 3,589,677 | |||
Koninklijke KPN NV | 1,037,583 | 15,981,141 | |||
Koninklijke Philips | 648,849 | 23,801,586 | |||
Oce NV | 51,393 | 854,026 | |||
QIAGEN NVa,b | 94,928 | 1,544,868 | |||
Randstad Holding NV | 23,491 | 1,643,062 | |||
Reed Elsevier NV | 384,753 | 6,790,079 | |||
Rodamco Europe NV | 24,076 | 3,311,984 | |||
Royal Numico NV | 94,530 | 4,864,912 | |||
SBM Offshore NV | 70,215 | 2,494,061 | |||
TNT NV | 229,185 | 9,842,140 | |||
Unilever NV | 923,222 | 23,890,595 | |||
Vedior NV | 93,526 | 2,037,227 | |||
Wereldhave NV | 11,575 | 1,536,797 | |||
Wolters Kluwer NV CVA | 156,957 | 4,741,691 | |||
243,031,773 | |||||
PORTUGAL – 1.12% | |||||
Banco BPI SA Registered | 193,323 | 1,639,476 | |||
Banco Comercial Portugues SA | 1,355,664 | 4,942,510 | |||
Banco Espirito Santo SA | 140,480 | 2,597,939 | |||
Brisa-Auto Estradas de Portugal SA | 182,885 | 2,369,919 | |||
CIMPOR-Cimentos de Portugal SGPS SA | 136,593 | 1,111,464 | |||
Energias de Portugal SA | 932,945 | 5,102,027 | |||
Jeronimo Martins SGPS SA | 23,880 | 577,891 | |||
Portugal Telecom SGPS SA | 429,081 | 5,707,621 | |||
PT Multimedia Servicos de Telecomunicacoes e Multimedia SGPS SA | 53,048 | 757,497 |
Security | Shares | Value | |||
Sonae Industria SGPS SAa | 77,784 | $ | 911,382 | ||
Sonae SGPS SA | 489,671 | 1,054,334 | |||
26,772,060 | |||||
SPAIN – 12.13% | |||||
Abertis Infraestructuras SAb | 139,826 | 3,982,200 | |||
Acciona SA | 15,742 | 3,143,073 | |||
Acerinox SA | 100,934 | 2,683,908 | |||
Actividades de Construcciones y | 120,843 | 6,830,463 | |||
Altadis SA | 145,845 | 7,386,353 | |||
Antena 3 de Television SAb | 47,733 | 1,067,486 | |||
Banco Bilbao Vizcaya | 1,891,355 | 46,045,243 | |||
Banco Popular Espanol SA | 480,594 | 9,440,080 | |||
Banco Santander Central | 3,209,979 | 59,405,507 | |||
Cintra Concesiones de Infraestructuras | 138,513 | 2,433,484 | |||
Corporacion Mapfre SA | 327,180 | 1,620,707 | |||
Ebro Puleva SA | 46,763 | 1,087,180 | |||
Endesa SA | 495,410 | 25,162,135 | |||
Fadesa Inmobiliaria SA | 28,706 | 1,371,537 | |||
Fomento de Construcciones y | 20,424 | 2,120,556 | |||
Gamesa Corporacion Tecnologica SA | 110,194 | 3,160,124 | |||
Gas Natural SDG SA | 96,385 | 4,120,068 | |||
Grupo Ferrovial SA | 35,264 | 3,488,990 | |||
Iberdrola SA | 409,292 | 17,933,502 | |||
Iberia Lineas Aereas de Espana SA | 251,047 | 1,057,869 | |||
Indra Sistemas SA | 75,932 | 1,745,261 | |||
Industria de Diseno Textil SA | 118,528 | 6,887,495 | |||
NH Hoteles SAb | 72,691 | 1,640,042 | |||
NH Hoteles SA Rightsa,b | 72,691 | 24,965 | |||
Promotora de Informaciones SA | 45,936 | 910,187 | |||
Repsol YPF SA | 488,928 | 15,519,762 | |||
SacyrVallehermoso SA | 52,319 | 2,840,453 | |||
Sociedad General de Aguas de | 36,715 | 1,233,321 | |||
Sociedad General de Aguas | 327 | 10,730 | |||
Sogecable SAa,b | 28,243 | 1,059,536 |
24 | 2007 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI EMU INDEX FUND
February 28, 2007
Security | Shares or Principal | Value | |||
Telefonica SA | 2,402,044 | $ | 51,719,574 | ||
Union Fenosa SA | 65,746 | 3,291,508 | |||
Zeltia SAa,b | 97,304 | 880,456 | |||
291,303,755 | |||||
TOTAL COMMON STOCKS | 2,365,891,410 | ||||
PREFERRED STOCKS – 1.35% | |||||
GERMANY – 0.80% | |||||
Henkel KGaA | 31,484 | 4,440,851 | |||
Porsche AG | 4,640 | 6,076,313 | |||
ProSiebenSat.1 Media AG | 49,078 | 1,661,582 | |||
RWE AG | 20,372 | 1,863,276 | |||
Volkswagen AG | 59,397 | 5,229,390 | |||
19,271,412 | |||||
ITALY – 0.55% | |||||
Intesa Sanpaolo SpA RNC | 541,247 | 3,846,486 | |||
Telecom Italia SpA RNC | 3,222,017 | 8,176,013 | |||
Unipol SpA | 330,119 | 1,121,792 | |||
13,144,291 | |||||
TOTAL PREFERRED STOCKS | 32,415,703 | ||||
SHORT-TERM INVESTMENTS – 1.12% | |||||
CERTIFICATES OF DEPOSITd – 0.05% | |||||
Credit Suisse First Boston NY | |||||
5.28% - 5.43%, | $287,424 | 287,424 | |||
Deutsche Bank AG | |||||
5.35%, 08/08/07 | 479,039 | 479,039 | |||
Washington Mutual Bank | |||||
5.33%, 03/19/07 | 479,039 | 479,039 | |||
1,245,502 | |||||
COMMERCIAL PAPERd – 0.25% | |||||
Amstel Funding Corp. | |||||
5.22%, 04/16/07 - 04/17/07e | 182,248 | 181,011 | |||
BNP Paribas Finance Inc. | |||||
5.12%, 06/06/07 | 67,066 | 66,141 | |||
Bryant Park Funding LLC | |||||
5.27%, 03/06/07e | 47,222 | 47,187 |
Security | Principal | Value | ||||
Cantabric Finance LLC | ||||||
5.25%, 03/06/07e | $ | 153,293 | $ | 153,181 | ||
Cheyne Finance LLC | ||||||
5.24%, 04/12/07 - 04/23/07e | 143,712 | 142,680 | ||||
Concord Minutemen | ||||||
Capital Co. LLC | ||||||
5.29%, 03/19/07e | 97,661 | 97,402 | ||||
Crown Point Capital Co. LLC | ||||||
5.20%, 07/18/07e | 221,345 | 216,901 | ||||
Edison Asset Securitization LLC | ||||||
5.21%, 04/11/07e | 79,411 | 78,940 | ||||
Five Finance Inc. | ||||||
5.22%, 04/20/07e | 88,143 | 87,504 | ||||
General Electric Capital Corp. | ||||||
5.12% - 5.20%, | 335,328 | 329,568 | ||||
Giro Funding Corp. | ||||||
5.25%, 03/05/07 - 03/12/07e | 314,250 | 313,871 | ||||
Grampian Funding LLC | ||||||
5.14% - 5.23%, | 373,651 | 369,010 | ||||
Harrier Finance Funding LLC | ||||||
5.12%, 06/06/07e | 191,616 | 188,975 | ||||
Irish Permanent Treasury PLC | ||||||
5.18%, 07/10/07 | 95,808 | 94,002 | ||||
KKR Pacific Funding Trust | ||||||
5.29%, 03/13/07e | 239,520 | 239,097 | ||||
Lexington Parker Capital Co. LLC | ||||||
5.18% - 5.20%, | 242,103 | 237,982 | ||||
Liberty Street Funding Corp. | ||||||
5.27%, 03/06/07e | 22,994 | 22,977 | ||||
Lockhart Funding LLC | ||||||
5.25%, 05/04/07 - 05/14/07e | 432,278 | 428,172 | ||||
Nationwide Building Society | ||||||
5.21%, 04/13/07e | 182,035 | 180,902 | ||||
Nestle Capital Corp. | ||||||
5.19%, 08/09/07 | 114,969 | 112,301 | ||||
Sedna Finance Inc. | ||||||
5.22%, 04/17/07e | 109,221 | 108,477 | ||||
Simba Funding Corp. | ||||||
5.20%, 07/23/07e | 191,616 | 187,630 |
SCHEDULESOF INVESTMENTS | 25 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI EMU INDEX FUND
February 28, 2007
Security | Shares or Principal | Value | ||||
Societe Generale | ||||||
5.18%, 05/16/07 | $ | 479,039 | $ | 473,801 | ||
Thames Asset Global Securitization No. 1 Inc. | ||||||
5.25% - 5.28%, | 729,972 | 729,266 | ||||
Thornburg Mortgage Capital | ||||||
5.28%, 03/12/07e | 140,263 | 140,036 | ||||
Three Pillars Funding Corp. 5.26%, | ||||||
03/01/07 - 03/12/07e | 100,594 | 100,515 | ||||
Tulip Funding Corp. | ||||||
5.29%, 03/15/07e | 367,828 | 367,071 | ||||
Westpac Banking Corp. | ||||||
5.20%, 07/12/07e | 172,454 | 169,141 | ||||
Zela Finance Inc. | ||||||
5.20%, 07/16/07e | 114,969 | 112,694 | ||||
5,976,435 | ||||||
MEDIUM-TERM NOTESd – 0.02% | ||||||
Bank of America N.A. | ||||||
5.28%, 04/20/07 | 47,904 | 47,904 | ||||
Cullinan Finance Corp. | ||||||
5.71%, 06/28/07e | 143,712 | 143,712 | ||||
K2 USA LLC | ||||||
5.39%, 06/04/07e | 143,712 | 143,712 | ||||
Sigma Finance Inc. | ||||||
5.13% - 5.51%, | 224,191 | 224,191 | ||||
559,519 | ||||||
MONEY MARKET FUNDS – 0.02% | ||||||
Barclays Global Investors Funds Institutional Money Market Fund, Institutional Shares 5.30%f,g | 388,347 | 388,347 | ||||
388,347 | ||||||
REPURCHASE AGREEMENTSd – 0.15% | ||||||
Banc of America Securities LLC | $ | 383,232 | 383,232 |
Security | Principal | Value | ||||
Bear Stearns Companies Inc. (The) | $ | 287,424 | $ | 287,424 | ||
BNP Securities Corp. | 19,162 | 19,162 | ||||
Citigroup Global Markets Holdings Inc. | 287,424 | 287,424 | ||||
Citigroup Global Markets Holdings Inc. | 383,232 | 383,232 | ||||
Citigroup Global Markets Holdings Inc. | 210,777 | 210,777 | ||||
Citigroup Global Markets Holdings Inc. | 114,969 | 114,969 |
26 | 2007 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI EMU INDEX FUND
February 28, 2007
Security | Principal | Value | ||||
Goldman Sachs Group Inc. (The) | $ | 71,103 | $ | 71,103 | ||
Greenwich Capital Markets Inc. | 804,786 | 804,786 | ||||
HSBC Securities Inc. | 95,808 | 95,808 | ||||
JP Morgan Securities Inc. | 47,904 | 47,904 | ||||
Merrill Lynch & Co. Inc. | 191,616 | 191,616 | ||||
Morgan Stanley | 191,616 | 191,616 |
Security | Principal | Value | ||||
Morgan Stanley | $ | 134,131 | $ | 134,131 | ||
Wachovia Capital | 421,555 | 421,555 | ||||
3,644,739 | ||||||
TIME DEPOSITSd – 0.05% | ||||||
Bank of Nova Scotia | 80,356 | 80,356 | ||||
Chase Bank USA N.A. | 287,424 | 287,424 | ||||
Citibank N.A. | 287,424 | 287,424 | ||||
Deutsche Bank AG | 450,050 | 450,050 | ||||
1,105,254 | ||||||
VARIABLE & FLOATING RATE NOTESd – 0.58% | ||||||
Allstate Life Global Funding II | ||||||
5.30% - 5.40%, | 490,536 | 490,585 | ||||
American Express Centurion Bank | ||||||
5.41%, 07/19/07 | 210,777 | 210,872 | ||||
American Express Credit Corp. | 57,485 | 57,513 | ||||
AmeriCredit Automobile Receivables Trust | ||||||
5.35%, 03/06/07 | 8,733 | 8,733 | ||||
Arkle Master Issuer PLC Series 2006-1A Class 1A | ||||||
5.30%, 11/19/07e | 143,712 | 143,712 | ||||
ASIF Global Financing | 19,162 | 19,163 | ||||
Australia & New Zealand Banking Group Ltd. | ||||||
5.32%, 02/22/08e | 124,550 | 124,550 |
SCHEDULESOF INVESTMENTS | 27 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI EMU INDEX FUND
February 28, 2007
Security | Principal | Value | ||||
Bank of Ireland | ||||||
5.30% - 5.32%, | $ | 277,843 | $ | 277,851 | ||
Beta Finance Inc. | ||||||
5.29% - 5.41%, | 488,620 | 488,630 | ||||
BMW US Capital LLC | 191,616 | 191,616 | ||||
BNP Paribas | 354,489 | 354,489 | ||||
Brigantine High Grade Funding Ltd. | ||||||
5.40%, 09/05/07e | 183,951 | 183,934 | ||||
Carlyle Loan Investment Ltd. | ||||||
5.37%, 04/13/07 - 07/15/07e | 139,880 | 139,880 | ||||
CC USA Inc. | 95,808 | 95,813 | ||||
Commodore CDO Ltd. | 47,904 | 47,904 | ||||
Credit Agricole SA | 191,616 | 191,616 | ||||
Credit Suisse First Boston NY | 95,809 | 95,809 | ||||
Cullinan Finance Corp. | 47,904 | 47,904 | ||||
DaimlerChrysler Auto Trust Series 2006-C Class A1 | ||||||
5.33%, 10/08/07e | 14,699 | 14,699 | ||||
DEPFA Bank PLC | 191,616 | 191,616 | ||||
Dorada Finance Inc. | 220,358 | 220,361 | ||||
Eli Lilly Services Inc. | 127,904 | 127,904 | ||||
Fifth Third Bancorp | 383,232 | 383,232 | ||||
Five Finance Inc. | ||||||
5.31% - 5.37%, | 124,550 | 124,544 | ||||
General Electric Capital Corp. | ||||||
5.28% - 5.45%, | 201,197 | 201,216 |
Security | Principal | Value | ||||
Granite Master Issuer PLC | $ | 670,655 | $ | 670,655 | ||
Harrier Finance Funding LLC | ||||||
5.29% - 5.36%, | 249,100 | 249,102 | ||||
Hartford Life Global Funding Trust | ||||||
5.36% - 5.40%, | 287,424 | 287,442 | ||||
HBOS Treasury Services PLC | 191,616 | 191,616 | ||||
Holmes Financing PLC | 335,328 | 335,328 | ||||
JP Morgan Securities Inc. | 383,232 | 383,232 | ||||
JPMorgan Chase & Co. | 526,943 | 526,944 | ||||
K2 USA LLC | 143,712 | 143,710 | ||||
Kestrel Funding LLC | 76,646 | 76,643 | ||||
Kommunalkredit Austria AG | 114,969 | 114,969 | ||||
Leafs LLC | 185,651 | 185,651 | ||||
Links Finance LLC | ||||||
5.28% - 5.35%, | 210,777 | 210,773 | ||||
Lothian Mortgages Master Issuer PLC | ||||||
5.29%, 04/24/07e | 67,554 | 67,554 | ||||
Marshall & Ilsley Bank | 105,389 | 105,389 | ||||
Master Funding LLC | ||||||
5.35%, 04/25/07 - 05/25/07e | 346,773 | 346,773 | ||||
Merrill Lynch & Co. Inc. | 210,777 | 210,777 | ||||
Metropolitan Life Global Funding I | ||||||
5.33%, 03/06/08e | 287,424 | 287,424 |
28 | 2007 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI EMU INDEX FUND
February 28, 2007
Security | Principal | Value | ||||
Metropolitan Life Insurance Funding Agreement | ||||||
5.44%, 08/01/07e,h | $ | 19,162 | $ | 19,162 | ||
Mound Financing PLC | ||||||
5.29%, 05/08/07e | 180,119 | 180,119 | ||||
Natexis Banques Populaires | ||||||
5.33% - 5.35%, | 306,585 | 306,581 | ||||
National City Bank of Indiana | ||||||
5.34%, 05/21/07 | 95,808 | 95,810 | ||||
Nationwide Building Society | ||||||
5.37% - 5.48%, | 632,332 | 632,403 | ||||
Newcastle Ltd. | ||||||
5.34%, | 192,095 | 192,070 | ||||
Northern Rock PLC | ||||||
5.38%, 02/01/08e | 229,939 | 229,943 | ||||
Northlake CDO I | ||||||
5.42%, 09/06/07e | 57,485 | 57,485 | ||||
Pricoa Global Funding I | ||||||
5.31%, 02/27/08e | 258,681 | 258,681 | ||||
Sedna Finance Inc. | ||||||
5.32% - 5.34%, | 277,843 | 277,841 | ||||
Skandinaviska Enskilda Banken | ||||||
5.32%, 02/15/08e | 191,616 | 191,616 | ||||
Strips III LLC | ||||||
5.37%, 07/24/07e | 38,990 | 38,990 | ||||
SunTrust Bank | ||||||
5.29%, 05/01/07 | 191,616 | 191,617 | ||||
Tango Finance Corp. | ||||||
5.27% - 5.34%, | 467,542 | 467,526 | ||||
Union Hamilton Special Funding LLC | ||||||
5.36% - 5.37%, | 316,166 | 316,166 | ||||
Wachovia Asset Securitization Inc. | ||||||
5.31%, 03/25/07e | 216,300 | 216,299 | ||||
Wachovia Bank N.A. | ||||||
5.36%, 05/22/07 | 383,232 | 383,232 |
Security | Principal | Value | |||||
Wal-Mart Stores Inc. | |||||||
5.50%, 07/16/07e | $ | 143,712 | $ | 143,748 | |||
Wells Fargo & Co. | |||||||
5.33%, 11/15/07e | 95,808 | 95,812 | |||||
WhistleJacket Capital Ltd. | |||||||
5.28% - 5.35%, | 143,712 | 143,712 | |||||
White Pine Finance LLC | |||||||
5.28% - 5.32%, | 574,847 | 574,796 | |||||
Wind Master Trust | |||||||
5.31%, 07/25/07e | 76,646 | 76,646 | |||||
13,918,383 | |||||||
TOTAL SHORT-TERM INVESTMENTS | 26,838,179 | ||||||
TOTAL INVESTMENTS IN SECURITIES – 100.98% | 2,425,145,292 | ||||||
Other Assets, Less Liabilities – (0.98)% | (23,548,328 | ) | |||||
NET ASSETS – 100.00% | $ | 2,401,596,964 | |||||
ADR - American Depositary Receipts
a | Non-income earning security. |
b | All or a portion of this security represents a security on loan. See Note 5. |
c | Security valued at fair value in accordance with procedures approved by the Board of Directors. See Note 1. |
d | All or a portion of this security (these securities) represent(s) an investment of securities lending collateral. See Note 5. |
e | This security or a portion of these securities may be resold to qualified institutional buyers under Rule 144A or pursuant to Section 4(2) of the Securities Act of 1933. |
f | Affiliated issuer. See Note 2. |
g | The rate quoted is the annualized seven-day yield of the fund at period end. |
h | 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 financial statements.
SCHEDULESOF INVESTMENTS | 29 |
Table of Contents
Schedule of Investments (Unaudited)
iSHARES® MSCI FRANCE INDEX FUND
February 28, 2007
Security | Shares | Value | |||
COMMON STOCKS – 99.76% | |||||
ADVERTISING – 0.68% | |||||
PagesJaunes SA | 18,061 | $ | 374,566 | ||
Publicis Groupe SA | 19,586 | 876,548 | |||
1,251,114 | |||||
AEROSPACE & DEFENSE – 1.73% | |||||
European Aeronautic Defence and Space Co.a | 46,478 | 1,590,747 | |||
Safran SA | 23,490 | 538,045 | |||
Thales SA | 12,528 | 644,413 | |||
Zodiac SA | 5,967 | 405,140 | |||
3,178,345 | |||||
AIRLINES – 0.40% | |||||
Air France-KLM | 17,199 | 745,184 | |||
745,184 | |||||
APPAREL – 0.64% | |||||
Hermes International | 9,088 | 1,185,473 | |||
1,185,473 | |||||
AUTO MANUFACTURERS – 2.49% | |||||
PSA Peugeot Citroen SA | 21,708 | 1,462,148 | |||
Renault SA | 26,352 | 3,129,042 | |||
4,591,190 | |||||
AUTO PARTS & EQUIPMENT – 1.41% | |||||
Compagnie Generale des Etablissements Michelin Class B | 20,412 | 2,119,849 | |||
Valeo SA | 9,747 | 479,090 | |||
2,598,939 | |||||
BANKS – 13.55% | |||||
BNP Paribas | 118,962 | 12,404,857 | |||
Credit Agricole SA | 93,763 | 3,735,504 | |||
Societe Generale Class A | 52,354 | 8,806,454 | |||
24,946,815 | |||||
BEVERAGES – 1.44% | |||||
Pernod Ricard SA | 12,851 | 2,648,013 | |||
2,648,013 | |||||
BUILDING MATERIALS – 4.20% | |||||
Compagnie de Saint-Gobain | 44,766 | 4,163,009 | |||
Imerys SA | 4,590 | 408,778 | |||
Lafarge SA | 21,222 | 3,169,153 | |||
7,740,940 |
Security | Shares | Value | |||
CHEMICALS – 2.13% | |||||
L’Air Liquide SA | 17,172 | $ | 3,930,345 | ||
3,930,345 | |||||
COMMERCIAL SERVICES – 0.15% | |||||
Societe des Autoroutes | |||||
Paris-Rhin-Rhone | 3,213 | 269,507 | |||
269,507 | |||||
COMPUTERS – 1.02% | |||||
Atos Origin SAb | 9,504 | 513,722 | |||
Cap Gemini SA | 19,466 | 1,358,964 | |||
1,872,686 | |||||
COSMETICS & PERSONAL CARE – 2.33% | |||||
L’Oreal SA | 40,959 | 4,281,312 | |||
4,281,312 | |||||
DIVERSIFIED FINANCIAL SERVICES – 0.76% | |||||
Euronext NV | 12,825 | 1,393,412 | |||
1,393,412 | |||||
ENGINEERING & CONSTRUCTION – 3.23% | |||||
Bouygues SA | 28,998 | 2,018,669 | |||
Vinci SA | 28,404 | 3,927,246 | |||
5,945,915 | |||||
FOOD – 6.26% | |||||
Carrefour SA | 84,996 | 5,667,665 | |||
Casino Guichard-Perrachon SA | 6,156 | 529,378 | |||
Groupe Danone | 33,642 | 5,320,729 | |||
11,517,772 | |||||
FOOD SERVICE – 0.51% | |||||
Sodexho Alliance SA | 13,547 | 933,219 | |||
933,219 | |||||
GAS – 0.67% | |||||
Gaz de France | 27,999 | 1,231,980 | |||
1,231,980 | |||||
HAND & MACHINE TOOLS – 2.12% | |||||
Schneider Electric SA | 32,124 | 3,895,459 | |||
3,895,459 | |||||
HEALTH CARE - PRODUCTS – 0.87% | |||||
Essilor International SA | 13,999 | 1,594,748 | |||
1,594,748 | |||||
HOLDING COMPANIES - DIVERSIFIED – 2.09% | |||||
LVMH Moet Hennessy Louis Vuitton SA | 34,857 | 3,855,294 | |||
3,855,294 |
30 | 2007 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI FRANCE INDEX FUND
February 28, 2007
Security | Shares | Value | |||
HOME FURNISHINGS – 0.38% | |||||
Thomson | 36,882 | $ | 692,788 | ||
692,788 | |||||
HOUSEHOLD PRODUCTS & WARES – 0.15% | |||||
Societe BIC SA | 3,996 | 272,688 | |||
272,688 | |||||
INSURANCE – 6.09% | |||||
AXA | 237,519 | 10,090,223 | |||
CNP Assurances | 6,286 | 703,638 | |||
SCOR | 16,659 | 422,510 | |||
11,216,371 | |||||
IRON & STEEL – 2.74% | |||||
Arcelor Mittal | 99,576 | 5,039,103 | |||
5,039,103 | |||||
LODGING – 1.37% | |||||
Accor SA | 28,680 | 2,528,056 | |||
2,528,056 | |||||
MACHINERY – 1.03% | |||||
ALSTOMb | 15,643 | 1,887,622 | |||
1,887,622 | |||||
MEDIA – 4.72% | |||||
Lagardere SCA | 17,226 | 1,321,820 | |||
M6-Metropole Television | 9,558 | 338,746 | |||
Societe Television Francaise 1 | 16,659 | 560,485 | |||
Vivendi SA | 163,998 | 6,466,500 | |||
8,687,551 | |||||
METAL FABRICATE & HARDWARE – 0.76% | |||||
Vallourec SA | 5,630 | 1,393,164 | |||
1,393,164 | |||||
OFFICE & BUSINESS EQUIPMENT – 0.32% | |||||
Neopost SA | 4,536 | 583,964 | |||
583,964 | |||||
OIL & GAS – 11.35% | |||||
Total SA | 310,068 | 20,896,993 | |||
20,896,993 | |||||
OIL & GAS SERVICES – 0.55% | |||||
Technip SA | 15,041 | 1,009,514 | |||
1,009,514 |
Security | Shares or Principal | Value | ||||
PHARMACEUTICALS – 6.67% | ||||||
Sanofi-Aventis | 144,666 | $ | 12,279,864 | |||
12,279,864 | ||||||
REAL ESTATE – 1.49% | ||||||
Gecina SA | 1,809 | 332,154 | ||||
Klepierre | 2,646 | 520,790 | ||||
Unibail Holding | 6,533 | 1,885,949 | ||||
2,738,893 | ||||||
RETAIL – 0.77% | ||||||
PPR SA | 9,453 | 1,419,765 | ||||
1,419,765 | ||||||
SEMICONDUCTORS – 1.02% | ||||||
STMicroelectronics NV | 97,065 | 1,880,958 | ||||
1,880,958 | ||||||
SOFTWARE – 0.50% | ||||||
Business Objects SAb | 13,824 | 503,816 | ||||
Dassault Systemes SA | 8,291 | 423,842 | ||||
927,658 | ||||||
TELECOMMUNICATIONS – 5.81% | ||||||
Alcatel-Lucent | 328,401 | 4,186,183 | ||||
France Telecom SA | 240,300 | 6,516,721 | ||||
10,702,904 | ||||||
WATER – 5.36% | ||||||
Suez SA | 144,720 | 7,000,568 | ||||
Veolia Environnement | 40,635 | 2,862,047 | ||||
9,862,615 | ||||||
TOTAL COMMON STOCKS | ||||||
(Cost: $164,684,739) | 183,628,133 | |||||
SHORT-TERM INVESTMENTS – 0.94% | ||||||
CERTIFICATES OF DEPOSITc – 0.04% | ||||||
Credit Suisse First Boston NY | ||||||
5.28% - 5.43%, | $ | 17,880 | 17,880 | |||
Deutsche Bank AG | ||||||
5.35%, 08/08/07 | 29,799 | 29,799 | ||||
Washington Mutual Bank | ||||||
5.33%, 03/19/07 | 29,799 | 29,799 | ||||
77,478 |
SCHEDULESOF INVESTMENTS | 31 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI FRANCE INDEX FUND
February 28, 2007
Security | Principal | Value | ||||
COMMERCIAL PAPERc – 0.20% | ||||||
Amstel Funding Corp. | ||||||
5.22%, | $ | 11,337 | $ | 11,252 | ||
BNP Paribas Finance Inc. | ||||||
5.12%, 06/06/07 | 4,172 | 4,114 | ||||
Bryant Park Funding LLC | ||||||
5.27%, 03/06/07d | 2,937 | 2,935 | ||||
Cantabric Finance LLC | ||||||
5.25%, 03/06/07d | 9,536 | 9,529 | ||||
Cheyne Finance LLC | ||||||
5.24%, | 8,940 | 8,876 | ||||
Concord Minutemen Capital Co. LLC | ||||||
5.29%, 03/19/07d | 6,075 | 6,059 | ||||
Crown Point Capital Co. LLC | ||||||
5.20%, 07/18/07d | 13,769 | 13,492 | ||||
Edison Asset Securitization LLC | ||||||
5.21%, 04/11/07d | 4,940 | 4,910 | ||||
Five Finance Inc. | ||||||
5.22%, 04/20/07d | 5,483 | 5,443 | ||||
General Electric Capital Corp. | ||||||
5.12% - 5.20%, | 20,859 | 20,501 | ||||
Giro Funding Corp. | ||||||
5.25%, | 19,548 | 19,524 | ||||
Grampian Funding LLC | ||||||
5.14% - 5.23%, | 23,243 | 22,954 | ||||
Harrier Finance Funding LLC | ||||||
5.12%, 06/06/07d | 11,920 | 11,755 | ||||
Irish Permanent Treasury PLC | ||||||
5.18%, 07/10/07 | 5,960 | 5,847 | ||||
KKR Pacific Funding Trust | ||||||
5.29%, 03/13/07d | 14,899 | 14,873 | ||||
Lexington Parker Capital Co. LLC | ||||||
5.18% - 5.20%, | 15,060 | 14,804 | ||||
Liberty Street Funding Corp. | ||||||
5.27%, 03/06/07d | 1,430 | 1,429 | ||||
Lockhart Funding LLC | ||||||
5.25%, | 26,890 | 26,635 | ||||
Nationwide Building Society | ||||||
5.21%, 04/13/07d | 11,324 | 11,253 |
Security | Shares or Principal | Value | ||||
Nestle Capital Corp. | ||||||
5.19%, 08/09/07 | $ | 7,152 | $ | 6,986 | ||
Sedna Finance Inc. | ||||||
5.22%, 04/17/07d | 6,794 | 6,748 | ||||
Simba Funding Corp. | ||||||
5.20%, 07/23/07d | 11,920 | 11,672 | ||||
Societe Generale | ||||||
5.18%, 05/16/07 | 29,799 | 29,473 | ||||
Thames Asset Global Securitization No. 1 Inc. | ||||||
5.25% - 5.28%, | 45,408 | 45,364 | ||||
Thornburg Mortgage Capital Resources LLC | ||||||
5.28%, 03/12/07d | 8,725 | 8,711 | ||||
Three Pillars Funding Corp. | ||||||
5.26%, | 6,258 | 6,253 | ||||
Tulip Funding Corp. | ||||||
5.29%, 03/15/07d | 22,881 | 22,834 | ||||
Westpac Banking Corp. | ||||||
5.20%, 07/12/07d | 10,728 | 10,521 | ||||
Zela Finance Inc. | ||||||
5.20%, 07/16/07d | 7,152 | 7,010 | ||||
371,757 | ||||||
MEDIUM-TERM NOTESc – 0.02% | ||||||
Bank of America N.A. | ||||||
5.28%, 04/20/07 | 2,980 | 2,980 | ||||
Cullinan Finance Corp. | ||||||
5.71%, 06/28/07d | 8,940 | 8,940 | ||||
K2 USA LLC | ||||||
5.39%, 06/04/07d | 8,940 | 8,940 | ||||
Sigma Finance Inc. | ||||||
5.13% - 5.51%, | 13,946 | 13,946 | ||||
34,806 | ||||||
MONEY MARKET FUNDS – 0.05% | ||||||
Barclays Global Investors Funds Institutional Money Market Fund, Institutional Shares | 88,026 | 88,026 | ||||
88,026 |
32 | 2007 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI FRANCE INDEX FUND
February 28, 2007
Security | Principal | Value | ||||
REPURCHASE AGREEMENTSc – 0.12% | ||||||
Banc of America Securities LLC | $ | 23,839 | $ | 23,839 | ||
Bear Stearns Companies Inc. (The) | 17,879 | 17,879 | ||||
BNP Securities Corp. | 1,192 | 1,192 | ||||
Citigroup Global Markets Holdings Inc. | 17,879 | 17,879 | ||||
Citigroup Global Markets Holdings Inc. | 23,839 | 23,839 | ||||
Citigroup Global Markets Holdings Inc. | 13,111 | 13,111 |
Security | Principal | Value | ||||
Citigroup Global Markets Holdings Inc. | $ | 7,152 | $ | 7,152 | ||
Goldman Sachs Group Inc. (The) | 4,423 | 4,423 | ||||
Greenwich Capital Markets Inc. | 50,062 | 50,062 | ||||
HSBC Securities Inc. | 5,960 | 5,960 | ||||
JP Morgan Securities Inc. | 2,980 | 2,980 | ||||
Merrill Lynch & Co. Inc. | 11,920 | 11,920 | ||||
Morgan Stanley | 11,920 | 11,920 |
SCHEDULESOF INVESTMENTS | 33 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI FRANCE INDEX FUND
February 28, 2007
Security | Principal | Value | ||||
Morgan Stanley | $ | 8,344 | $ | 8,344 | ||
Wachovia Capital | 26,223 | 26,223 | ||||
226,723 | ||||||
TIME DEPOSITSc – 0.04% | ||||||
Bank of Nova Scotia | ||||||
5.30%, 03/02/07 | 4,999 | 4,999 | ||||
Chase Bank USA N.A. | ||||||
5.38%, 03/01/07 | 17,879 | 17,879 | ||||
Citibank N.A. | ||||||
5.47%, 03/01/07 | 17,879 | 17,879 | ||||
Deutsche Bank AG | ||||||
5.38%, 03/01/07 | 27,996 | 27,996 | ||||
68,753 | ||||||
VARIABLE & FLOATING RATE NOTESc – 0.47% | ||||||
Allstate Life Global Funding II | ||||||
5.30% - 5.40%, | 30,514 | 30,517 | ||||
American Express Centurion Bank | ||||||
5.41%, 07/19/07 | 13,111 | 13,117 | ||||
American Express Credit Corp. | ||||||
5.42%, 03/05/08 | 3,576 | 3,578 | ||||
AmeriCredit Automobile Receivables Trust | ||||||
5.35%, 03/06/07 | 543 | 543 | ||||
Arkle Master Issuer PLC Series 2006-1A Class 1A | ||||||
5.30%, 11/19/07d | 8,940 | 8,940 | ||||
ASIF Global Financing | ||||||
5.40%, 05/03/07d | 1,192 | 1,192 | ||||
Australia & New Zealand Banking Group Ltd. | ||||||
5.32%, 02/22/08d | 7,748 | 7,748 |
Security | Principal | Value | ||||
Bank of Ireland | ||||||
5.30% - 5.32%, | $ | 17,283 | $ | 17,284 | ||
Beta Finance Inc. | ||||||
5.29% - 5.41%, | 30,395 | 30,395 | ||||
BMW US Capital LLC | ||||||
5.32%, 01/15/08d | 11,920 | 11,920 | ||||
BNP Paribas | ||||||
5.33%, 11/19/07d | 22,051 | 22,051 | ||||
Brigantine High Grade Funding Ltd. | ||||||
5.40%, 09/05/07d | 11,443 | 11,442 | ||||
Carlyle Loan Investment Ltd. | ||||||
5.37%, | 8,701 | 8,702 | ||||
CC USA Inc. | ||||||
5.36%, 07/30/07d | 5,960 | 5,960 | ||||
Commodore CDO Ltd. | ||||||
5.44%, 12/12/07d | 2,980 | 2,980 | ||||
Credit Agricole SA | ||||||
5.33%, 11/23/07 | 11,920 | 11,920 | ||||
Credit Suisse First Boston NY | ||||||
5.36%, 04/24/07 | 5,960 | 5,960 | ||||
Cullinan Finance Corp. | ||||||
5.36%, 04/25/07d | 2,980 | 2,980 | ||||
DaimlerChrysler Auto Trust Series 2006-C Class A1 | ||||||
5.33%, 10/08/07d | 914 | 914 | ||||
DEPFA Bank PLC | ||||||
5.40%, 12/14/07d | 11,920 | 11,920 | ||||
Dorada Finance Inc. | ||||||
5.33% - 5.41%, | 13,707 | 13,708 | ||||
Eli Lilly Services Inc. | ||||||
5.31%, 03/01/07d | 7,956 | 7,956 | ||||
Fifth Third Bancorp | ||||||
5.32%, 02/22/08d | 23,839 | 23,839 | ||||
Five Finance Inc. | ||||||
5.31% - 5.37%, | 7,748 | 7,747 | ||||
General Electric Capital Corp. | ||||||
5.28% - 5.45%, | 12,515 | 12,517 |
34 | 2007 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI FRANCE INDEX FUND
February 28, 2007
Security | Principal | Value | ||||
Granite Master Issuer PLC | ||||||
5.29%, 08/20/07d | $ | 41,718 | $ | 41,718 | ||
Harrier Finance Funding LLC | ||||||
5.29% - 5.36%, | 15,495 | 15,495 | ||||
Hartford Life Global Funding Trust | ||||||
5.36% - 5.40%, | 17,879 | 17,881 | ||||
HBOS Treasury Services PLC | ||||||
5.46%, 01/24/08d | 11,920 | 11,920 | ||||
Holmes Financing PLC | ||||||
5.29%, 07/16/07d | 20,859 | 20,859 | ||||
JP Morgan Securities Inc. | ||||||
5.40%, 11/16/07 | 23,839 | 23,839 | ||||
JPMorgan Chase & Co. | ||||||
5.29% - 5.45%, | 32,779 | 32,779 | ||||
K2 USA LLC | ||||||
5.20% - 5.33%, | 8,940 | 8,940 | ||||
Kestrel Funding LLC | ||||||
5.30%, 07/11/07d | 4,768 | 4,768 | ||||
Kommunalkredit Austria AG | ||||||
5.32%, 02/08/08d | 7,152 | 7,152 | ||||
Leafs LLC | ||||||
5.32%, 01/22/08d | 11,548 | 11,548 | ||||
Links Finance LLC | ||||||
5.28% - 5.35%, | 13,111 | 13,112 | ||||
Lothian Mortgages Master Issuer PLC | ||||||
5.29%, 04/24/07d | 4,202 | 4,202 | ||||
Marshall & Ilsley Bank | ||||||
5.32%, 02/15/08 | 6,556 | 6,556 | ||||
Master Funding LLC | ||||||
5.35%, 04/25/07 - 05/25/07d | 21,571 | 21,572 | ||||
Merrill Lynch & Co. Inc. | ||||||
5.46%, 05/30/07g | 13,111 | 13,111 | ||||
Metropolitan Life Global Funding I | ||||||
5.33%, 03/06/08d | 17,879 | 17,879 | ||||
Metropolitan Life Insurance | ||||||
5.44%, 08/01/07d,g | 1,192 | 1,192 |
Security | Principal | Value | ||||
Mound Financing PLC | ||||||
5.29%, 05/08/07d | $ | 11,204 | $ | 11,204 | ||
Natexis Banques Populaires | ||||||
5.33% - 5.35%, | 19,071 | 19,072 | ||||
National City Bank of Indiana | ||||||
5.34%, 05/21/07 | 5,960 | 5,960 | ||||
Nationwide Building Society | ||||||
5.37% - 5.48%, | 39,334 | 39,339 | ||||
Newcastle Ltd. | ||||||
5.34%, 04/24/07 - 01/24/08d | 11,949 | 11,947 | ||||
Northern Rock PLC | ||||||
5.38%, 02/01/08d | 14,303 | 14,304 | ||||
Northlake CDO I | ||||||
5.42%, 09/06/07d | 3,576 | 3,576 | ||||
Pricoa Global Funding I | ||||||
5.31%, 02/27/08d | 16,091 | 16,091 | ||||
Sedna Finance Inc. | ||||||
5.32% - 5.34%, | 17,283 | 17,284 | ||||
Skandinaviska Enskilda Banken | ||||||
5.32%, 02/15/08d | 11,920 | 11,920 | ||||
Strips III LLC | ||||||
5.37%, 07/24/07d | 2,425 | 2,425 | ||||
SunTrust Bank | ||||||
5.29%, 05/01/07 | 11,920 | 11,920 | ||||
Tango Finance Corp. | ||||||
5.27% - 5.34%, | 29,084 | 29,082 | ||||
Union Hamilton Special Funding LLC | ||||||
5.36% - 5.37%, | 19,667 | 19,668 | ||||
Wachovia Asset Securitization Inc. | ||||||
5.31%, 03/25/07d | 13,455 | 13,455 | ||||
Wachovia Bank N.A. | ||||||
5.36%, 05/22/07 | 23,839 | 23,839 | ||||
Wal-Mart Stores Inc. | ||||||
5.50%, 07/16/07d | 8,940 | 8,942 | ||||
Wells Fargo & Co. | ||||||
5.33%, 11/15/07d | 5,960 | 5,960 |
SCHEDULESOF INVESTMENTS | 35 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI FRANCE INDEX FUND
February 28, 2007
Security | Principal | Value | |||||
WhistleJacket Capital Ltd. | |||||||
5.28% - 5.35%, | $ | 8,940 | $ | 8,940 | |||
White Pine Finance LLC | |||||||
5.28% - 5.32%, | 35,759 | 35,755 | |||||
Wind Master Trust | |||||||
5.31%, 07/25/07d | 4,768 | 4,768 | |||||
865,804 | |||||||
TOTAL SHORT-TERM INVESTMENTS | 1,733,347 | ||||||
TOTAL INVESTMENTS IN SECURITIES – 100.70% | 185,361,480 | ||||||
Other Assets, Less | (1,291,567 | ) | |||||
NET ASSETS – 100.00% | $ | 184,069,913 | |||||
a | All or a portion of this security represents a security on loan. See Note 5. |
b | Non-income earning security. |
c | All or a portion of this security (these securities) represent(s) an investment of securities lending collateral. See Note 5. |
d | This security or a portion of these securities may be resold to qualified institutional buyers under Rule 144A or pursuant to Section 4(2) of the Securities Act of 1933. |
e | Affiliated issuer. See Note 2. |
f | The rate quoted is the annualized seven-day yield of the fund at period end. |
g | 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 financial statements.
36 | 2007 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited)
iSHARES® MSCI GERMANY INDEX FUND
February 28, 2007
Security | Shares | Value | |||
COMMON STOCKS – 96.30% | |||||
AIRLINES – 0.63% | |||||
Deutsche Lufthansa AG | 253,650 | $ | 6,855,307 | ||
6,855,307 | |||||
APPAREL – 1.49% | |||||
Adidas AG | 234,460 | 11,496,433 | |||
Puma AG | 13,469 | 4,777,119 | |||
16,273,552 | |||||
AUTO MANUFACTURERS – 8.57% | |||||
DaimlerChrysler AG Registered | 1,025,181 | 69,620,082 | |||
Volkswagen AG | 189,621 | 23,880,750 | |||
93,500,832 | |||||
AUTO PARTS & EQUIPMENT – 1.70% | |||||
Continental AG | 148,738 | 18,529,601 | |||
18,529,601 | |||||
BANKS – 11.72% | |||||
Commerzbank AG | 702,505 | 28,952,788 | |||
DEPFA Bank PLC | 399,375 | 6,694,665 | |||
Deutsche Bank AG | 581,898 | 76,289,323 | |||
Deutsche Postbank AG | 73,260 | 6,149,911 | |||
Hypo Real Estate Holding AG | 153,702 | 9,721,204 | |||
127,807,891 | |||||
BIOTECHNOLOGY – 0.24% | |||||
QIAGEN NVa,b | 161,771 | 2,632,678 | |||
2,632,678 | |||||
CHEMICALS – 9.20% | |||||
BASF AG | 527,696 | 53,569,063 | |||
Bayer AG | 815,381 | 46,820,560 | |||
100,389,623 | |||||
COMPUTERS – 0.28% | |||||
Wincor Nixdorf AG | 18,612 | 3,033,607 | |||
3,033,607 | |||||
COSMETICS & PERSONAL CARE – 0.45% | |||||
Beiersdorf AG | 76,305 | 4,938,959 | |||
4,938,959 | |||||
DIVERSIFIED FINANCIAL SERVICES – 2.26% | |||||
Deutsche Boerse AG | 114,943 | 22,981,588 | |||
MLP AGb | 69,608 | 1,671,627 | |||
24,653,215 |
Security | Shares | Value | |||
ELECTRIC – 13.02% | |||||
E.ON AG | 697,015 | $ | 91,280,376 | ||
RWE AG | 498,361 | 50,755,698 | |||
142,036,074 | |||||
ENERGY– ALTERNATE SOURCES – 0.26% | |||||
Solarworld AGb | 39,787 | 2,868,541 | |||
2,868,541 | |||||
ENGINEERING & CONSTRUCTION – 1.85% | |||||
Bilfinger Berger AG | 41,110 | 3,406,506 | |||
Hochtief AG | 46,924 | 4,079,804 | |||
Linde AG | 124,552 | 12,670,222 | |||
20,156,532 | |||||
FOOD – 1.33% | |||||
METRO AG | 184,404 | 12,734,805 | |||
Suedzucker AG | 84,697 | 1,786,732 | |||
14,521,537 | |||||
HEALTH CARE – PRODUCTS – 0.92% | |||||
Fresenius Medical | 70,986 | 10,033,278 | |||
10,033,278 | |||||
INSURANCE – 12.82% | |||||
Allianz SE | 482,582 | 103,766,828 | |||
Muenchener Rueckversicherungs- Gesellschaft AG | 226,776 | 36,075,982 | |||
139,842,810 | |||||
IRON & STEEL – 2.32% | |||||
Salzgitter AG | 45,425 | 5,602,588 | |||
ThyssenKrupp AG | 403,086 | 19,727,512 | |||
25,330,100 | |||||
LEISURE TIME – 0.52% | |||||
TUI AGb | 242,514 | 5,647,751 | |||
5,647,751 | |||||
MACHINERY– DIVERSIFIED – 1.95% | |||||
Heidelberger Druckmaschinen AG | 65,921 | 2,821,338 | |||
MAN AG | 141,006 | 15,130,052 | |||
Rheinmetall AG | 41,743 | 3,355,294 | |||
21,306,684 | |||||
MANUFACTURING – 9.15% | |||||
Siemens AG | 947,428 | 99,807,525 | |||
99,807,525 |
SCHEDULESOF INVESTMENTS | 37 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI GERMANY INDEX FUND
February 28, 2007
Security | Shares | Value | |||
MEDIA – 0.15% | |||||
Premiere AGa,b | 79,300 | $ | 1,670,784 | ||
1,670,784 | |||||
PHARMACEUTICALS – 1.75% | |||||
ALTANA AG | 80,811 | 4,883,689 | |||
Celesio AG | 102,889 | 5,829,232 | |||
Merck KGaA | 66,996 | 8,323,271 | |||
19,036,192 | |||||
REAL ESTATE – 0.40% | |||||
IVG Immobilien AG | 97,496 | 4,342,709 | |||
4,342,709 | |||||
RETAIL – 0.42% | |||||
Douglas Holding AG | 35,352 | 2,045,382 | |||
KarstadtQuelle AGa,b | 71,591 | 2,483,359 | |||
4,528,741 | |||||
SEMICONDUCTORS – 1.18% | |||||
Infineon Technologies AGa | 842,360 | 12,907,499 | |||
12,907,499 | |||||
SOFTWARE – 4.06% | |||||
SAP AG | 964,211 | 44,336,610 | |||
44,336,610 | |||||
TELECOMMUNICATIONS – 5.09% | |||||
Deutsche Telekom AG | 3,097,373 | 55,480,399 | |||
55,480,399 | |||||
TRANSPORTATION – 2.57% | |||||
Deutsche Post AG | 880,512 | 28,054,269 | |||
28,054,269 | |||||
TOTAL COMMON STOCKS | 1,050,523,300 | ||||
PREFERRED STOCKS – 3.49% | |||||
AUTO MANUFACTURERS – 2.00% | |||||
Porsche AG | 8,683 | 11,370,824 | |||
Volkswagen AG | 118,085 | 10,396,359 | |||
21,767,183 | |||||
ELECTRIC – 0.31% | |||||
RWE AG | 37,141 | 3,397,012 | |||
3,397,012 |
Security | Shares or Principal | Value | ||||
HOUSEHOLD PRODUCTS & WARES – 0.89% | ||||||
Henkel KGaA | 68,522 | $ | 9,665,099 | |||
9,665,099 | ||||||
MEDIA – 0.29% | ||||||
ProSiebenSat.1 Media AG | 93,920 | 3,179,751 | ||||
3,179,751 | ||||||
TOTAL PREFERRED STOCKS | 38,009,045 | |||||
SHORT-TERM INVESTMENTS – 1.51% | ||||||
CERTIFICATES OF DEPOSITc – 0.07% | ||||||
Credit Suisse First Boston NY | ||||||
5.28% - 5.43%, | $ | 175,309 | 175,309 | |||
Deutsche Bank AG | ||||||
5.35%, 08/08/07 | 292,182 | 292,182 | ||||
Washington Mutual Bank | ||||||
5.33%, 03/19/07 | 292,182 | 292,182 | ||||
759,673 | ||||||
COMMERCIAL PAPERc – 0.34% | ||||||
Amstel Funding Corp. | ||||||
5.22%, 04/16/07 - 04/17/07d | 111,159 | 110,404 | ||||
BNP Paribas Finance Inc. | ||||||
5.12%, 06/06/07 | 40,905 | 40,342 | ||||
Bryant Park Funding LLC | ||||||
5.27%, 03/06/07d | 28,802 | 28,781 | ||||
Cantabric Finance LLC | ||||||
5.25%, 03/06/07d | 93,498 | 93,430 | ||||
Cheyne Finance LLC | ||||||
5.24%, 04/12/07 - 04/23/07d | 87,655 | 87,026 | ||||
Concord Minutemen Capital Co. LLC | ||||||
5.29%, 03/19/07d | 59,567 | 59,409 | ||||
Crown Point Capital Co. LLC | ||||||
5.20%, 07/18/07d | 135,006 | 132,295 | ||||
Edison Asset Securitization LLC | ||||||
5.21%, 04/11/07d | 48,436 | 48,148 | ||||
Five Finance Inc. | ||||||
5.22%, 04/20/07d | 53,761 | 53,372 | ||||
General Electric Capital Corp. | ||||||
5.12% - 5.20%, | 204,527 | 201,014 |
38 | 2007 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI GERMANY INDEX FUND
February 28, 2007
Security | Principal | Value | ||||
Giro Funding Corp. | ||||||
5.25%, | $ | 191,671 | $ | 191,440 | ||
Grampian Funding LLC | ||||||
5.14% - 5.23%, | 227,902 | 225,072 | ||||
Harrier Finance Funding LLC | ||||||
5.12%, 06/06/07d | 116,873 | 115,262 | ||||
Irish Permanent Treasury PLC | ||||||
5.18%, 07/10/07 | 58,436 | 57,335 | ||||
KKR Pacific Funding Trust | ||||||
5.29%, 03/13/07d | 146,091 | 145,833 | ||||
Lexington Parker Capital Co. LLC | ||||||
5.18% - 5.20%, | 147,666 | 145,153 | ||||
Liberty Street Funding Corp. | ||||||
5.27%, 03/06/07d | 14,025 | 14,014 | ||||
Lockhart Funding LLC | ||||||
5.25%, | 263,660 | 261,156 | ||||
Nationwide Building Society | ||||||
5.21%, 04/13/07d | 111,029 | 110,338 | ||||
Nestle Capital Corp. | ||||||
5.19%, 08/09/07 | 70,124 | 68,496 | ||||
Sedna Finance Inc. | ||||||
5.22%, 04/17/07d | 66,617 | 66,163 | ||||
Simba Funding Corp. | ||||||
5.20%, 07/23/07d | 116,873 | 114,442 | ||||
Societe Generale | ||||||
5.18%, 05/16/07 | 292,182 | 288,987 | ||||
Thames Asset Global Securitization No. 1 Inc. | ||||||
5.25% - 5.28%, | 445,234 | 444,803 | ||||
Thornburg Mortgage Capital Resources LLC | ||||||
5.28%, 03/12/07d | 85,551 | 85,413 | ||||
Three Pillars Funding Corp. | ||||||
5.26%, 03/01/07 - 03/12/07d | 61,356 | 61,308 | ||||
Tulip Funding Corp. | ||||||
5.29%, 03/15/07d | 224,350 | 223,889 | ||||
Westpac Banking Corp. | ||||||
5.20%, 07/12/07d | 105,185 | 103,165 | ||||
Zela Finance Inc. | ||||||
5.20%, 07/16/07d | 70,124 | 68,736 | ||||
3,645,226 |
Security | Shares or Principal | Value | ||||
MEDIUM-TERM NOTESc – 0.03% | ||||||
Bank of America N.A. | ||||||
5.28%, 04/20/07 | $ | 29,218 | $ | 29,218 | ||
Cullinan Finance Corp. | ||||||
5.71%, 06/28/07d | 87,655 | 87,655 | ||||
K2 USA LLC | ||||||
5.39%, 06/04/07d | 87,655 | 87,655 | ||||
Sigma Finance Inc. | ||||||
5.13% - 5.51%, | 136,741 | 136,741 | ||||
341,269 | ||||||
MONEY MARKET FUNDS – 0.03% | ||||||
Barclays Global Investors Funds Institutional Money Market Fund, Institutional Shares | 305,433 | 305,433 | ||||
305,433 | ||||||
REPURCHASE AGREEMENTSc – 0.20% | ||||||
Banc of America Securities LLC 5.36%, due 3/1/07, maturity value $233,780 (collateralized by non-U.S. Government debt securities, value $240,948, 5.50% to 7.70%, 9/15/09 to 5/1/19). | $ | 233,745 | 233,745 | |||
Bear Stearns Companies Inc. (The) 5.37%, due 3/1/07, maturity value $175,335 (collateralized by non-U.S. Government debt securities, value $192,992, 0.00% to 9.20%, 10/17/18 to 11/25/52). | 175,309 | 175,309 | ||||
BNP Securities Corp. | 11,687 | 11,687 |
SCHEDULESOF INVESTMENTS | 39 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI GERMANY INDEX FUND
February 28, 2007
Security | Principal | Value | ||||
Citigroup Global Markets Holdings Inc. | $ | 175,309 | $ | 175,309 | ||
Citigroup Global Markets Holdings Inc. | 233,745 | 233,745 | ||||
Citigroup Global Markets Holdings Inc. | 128,560 | 128,560 | ||||
Citigroup Global Markets Holdings Inc. | 70,124 | 70,124 | ||||
Goldman Sachs Group Inc. (The) | 43,368 | 43,368 | ||||
Greenwich Capital Markets Inc. | 490,866 | 490,866 |
Security | Principal | Value | ||||
HSBC Securities Inc. | $ | 58,436 | $ | 58,436 | ||
JP Morgan Securities Inc. | 29,218 | 29,218 | ||||
Merrill Lynch & Co. Inc. | 116,873 | 116,873 | ||||
Morgan Stanley | 116,873 | 116,873 | ||||
Morgan Stanley | 81,811 | 81,811 | ||||
Wachovia Capital | 257,120 | 257,120 | ||||
2,223,044 |
40 | 2007 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI GERMANY INDEX FUND
February 28, 2007
Security | Principal | Value | ||||
TIME DEPOSITSc – 0.06% | ||||||
Bank of Nova Scotia | ||||||
5.30%, 03/02/07 | $ | 49,012 | $ | 49,012 | ||
Chase Bank USA N.A. | ||||||
5.38%, 03/01/07 | 175,309 | 175,309 | ||||
Citibank N.A. | ||||||
5.47%, 03/01/07 | 175,309 | 175,309 | ||||
Deutsche Bank AG | ||||||
5.38%, 03/01/07 | 274,500 | 274,500 | ||||
674,130 | ||||||
VARIABLE & FLOATING RATE NOTESc – 0.78% | ||||||
Allstate Life Global Funding II | ||||||
5.30% - 5.40%, | 299,194 | 299,223 | ||||
American Express Centurion Bank | ||||||
5.41%, 07/19/07 | 128,560 | 128,618 | ||||
American Express Credit Corp. | ||||||
5.42%, 03/05/08 | 35,062 | 35,079 | ||||
AmeriCredit Automobile Receivables Trust | ||||||
5.35%, 03/06/07 | 5,326 | 5,326 | ||||
Arkle Master Issuer PLC Series 2006-1A Class 1A | ||||||
5.30%, 11/19/07d | 87,655 | 87,655 | ||||
ASIF Global Financing | ||||||
5.40%, 05/03/07d | 11,687 | 11,688 | ||||
Australia & New Zealand Banking Group Ltd. | ||||||
5.32%, 02/22/08d | 75,967 | 75,967 | ||||
Bank of Ireland | ||||||
5.30% - 5.32%, | 169,465 | 169,470 | ||||
Beta Finance Inc. | ||||||
5.29% - 5.41%, | 298,025 | 298,031 | ||||
BMW US Capital LLC | ||||||
5.32%, 01/15/08d | 116,873 | 116,873 | ||||
BNP Paribas | ||||||
5.33%, 11/19/07d | 216,215 | 216,215 | ||||
Brigantine High Grade Funding Ltd. | ||||||
5.40%, 09/05/07d | 112,198 | 112,187 |
Security | Principal | Value | ||||
Carlyle Loan Investment Ltd. | ||||||
5.37%, 04/13/07 - 07/15/07d | $ | 85,317 | $ | 85,317 | ||
CC USA Inc. | ||||||
5.36%, 07/30/07d | 58,436 | 58,440 | ||||
Commodore CDO Ltd. | ||||||
5.44%, 12/12/07d | 29,218 | 29,218 | ||||
Credit Agricole SA | ||||||
5.33%, 11/23/07 | 116,873 | 116,873 | ||||
Credit Suisse First Boston NY | ||||||
5.36%, 04/24/07 | 58,436 | 58,437 | ||||
Cullinan Finance Corp. | ||||||
5.36%, 04/25/07d | 29,218 | 29,218 | ||||
DaimlerChrysler Auto Trust Series 2006-C Class A1 | ||||||
5.33%, 10/08/07d | 8,965 | 8,965 | ||||
DEPFA Bank PLC | ||||||
5.40%, 12/14/07d | 116,873 | 116,873 | ||||
Dorada Finance Inc. | ||||||
5.33% - 5.41%, | 134,404 | 134,406 | ||||
Eli Lilly Services Inc. | ||||||
5.31%, 03/01/07d | 78,013 | 78,013 | ||||
Fifth Third Bancorp | ||||||
5.32%, 02/22/08d | 233,745 | 233,745 | ||||
Five Finance Inc. | ||||||
5.31% - 5.37%, | 75,967 | 75,963 | ||||
General Electric Capital Corp. | ||||||
5.28% - 5.45%, | 122,716 | 122,729 | ||||
Granite Master Issuer PLC | ||||||
5.29%, 08/20/07d | 409,055 | 409,055 | ||||
Harrier Finance Funding LLC | ||||||
5.29% - 5.36%, | 151,935 | 151,935 | ||||
Hartford Life Global Funding Trust | ||||||
5.36% - 5.40%, | 175,309 | 175,321 | ||||
HBOS Treasury Services PLC | ||||||
5.46%, 01/24/08d | 116,873 | 116,873 |
SCHEDULESOF INVESTMENTS | 41 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI GERMANY INDEX FUND
February 28, 2007
Security | Principal | Value | ||||
Holmes Financing PLC | ||||||
5.29%, 07/16/07d | $ | 204,527 | $ | 204,527 | ||
JP Morgan Securities Inc. | ||||||
5.40%, 11/16/07 | 233,745 | 233,745 | ||||
JPMorgan Chase & Co. | ||||||
5.29% - 5.45%, | 321,400 | 321,400 | ||||
K2 USA LLC | ||||||
5.20% - 5.33%, | 87,655 | 87,653 | ||||
Kestrel Funding LLC | ||||||
5.30%, 07/11/07d | 46,749 | 46,747 | ||||
Kommunalkredit Austria AG | ||||||
5.32%, 02/08/08d | 70,124 | 70,124 | ||||
Leafs LLC | ||||||
5.32%, 01/22/08d | 113,234 | 113,234 | ||||
Links Finance LLC | ||||||
5.28% - 5.35%, | 128,560 | 128,558 | ||||
Lothian Mortgages Master Issuer PLC | ||||||
5.29%, 04/24/07d | 41,204 | 41,204 | ||||
Marshall & Ilsley Bank | ||||||
5.32%, 02/15/08 | 64,280 | 64,280 | ||||
Master Funding LLC | ||||||
5.35%, | 211,508 | 211,508 | ||||
Merrill Lynch & Co. Inc. | ||||||
5.46%, 05/30/07g | 128,560 | 128,560 | ||||
Metropolitan Life Global Funding I | ||||||
5.33%, 03/06/08d | 175,309 | 175,309 | ||||
Metropolitan Life Insurance Funding Agreement | ||||||
5.44%, 08/01/07d,g | 11,687 | 11,687 | ||||
Mound Financing PLC | ||||||
5.29%, 05/08/07d | 109,860 | 109,860 | ||||
Natexis Banques Populaires | ||||||
5.33% - 5.35%, | 186,996 | 186,995 | ||||
National City Bank of Indiana | ||||||
5.34%, 05/21/07 | 58,436 | 58,437 | ||||
Nationwide Building Society | ||||||
5.37% - 5.48%, | 385,680 | 385,723 |
Security | Principal | Value | ||||
Newcastle Ltd. | ||||||
5.34%, 04/24/07 - 01/24/08d | $ | 117,165 | $ | 117,150 | ||
Northern Rock PLC | ||||||
5.38%, 02/01/08d | 140,247 | 140,250 | ||||
Northlake CDO I | ||||||
5.42%, 09/06/07d | 35,062 | 35,062 | ||||
Pricoa Global Funding I | ||||||
5.31%, 02/27/08d | 157,778 | 157,778 | ||||
Sedna Finance Inc. | ||||||
5.32% - 5.34%, | 169,465 | 169,465 | ||||
Skandinaviska Enskilda Banken | ||||||
5.32%, 02/15/08d | 116,873 | 116,873 | ||||
Strips III LLC | ||||||
5.37%, 07/24/07d | 23,782 | 23,782 | ||||
SunTrust Bank | ||||||
5.29%, 05/01/07 | 116,873 | 116,874 | ||||
Tango Finance Corp. | ||||||
5.27% - 5.34%, | 285,169 | 285,160 | ||||
Union Hamilton Special Funding LLC | ||||||
5.36% - 5.37%, | 192,840 | 192,840 | ||||
Wachovia Asset Securitization Inc. | ||||||
5.31%, 03/25/07d | 131,928 | 131,928 | ||||
Wachovia Bank N.A. | ||||||
5.36%, 05/22/07 | 233,745 | 233,745 | ||||
Wal-Mart Stores Inc. | ||||||
5.50%, 07/16/07d | 87,655 | 87,677 | ||||
Wells Fargo & Co. | ||||||
5.33%, 11/15/07d | 58,436 | 58,439 | ||||
WhistleJacket Capital Ltd. | ||||||
5.28% - 5.35%, | 87,655 | 87,655 | ||||
White Pine Finance LLC | ||||||
5.28% - 5.32%, | 350,618 | 350,587 | ||||
Wind Master Trust | ||||||
5.31%, 07/25/07d | 46,749 | 46,749 | ||||
8,489,278 | ||||||
42 | 2007 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI GERMANY INDEX FUND
February 28, 2007
Value | ||||
TOTAL SHORT-TERM INVESTMENTS | $ | 16,438,053 | ||
TOTAL INVESTMENTS IN SECURITIES – 101.30% | 1,104,970,398 | |||
Other Assets, Less Liabilities – (1.30)% | (14,127,350 | ) | ||
NET ASSETS – 100.00% | $ | 1,090,843,048 | ||
a | Non-income earning security. |
b | All or a portion of this security represents a security on loan. See Note 5. |
c | All or a portion of this security (these securities) represent(s) an investment of securities lending collateral. See Note 5. |
d | This security or a portion of these securities may be resold to qualified institutional buyers under Rule 144A or pursuant to Section 4(2) of the Securities Act of 1933. |
e | Affiliated issuer. See Note 2. |
f | The rate quoted is the annualized seven-day yield of the fund at period end. |
g | 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 financial statements.
SCHEDULESOF INVESTMENTS | 43 |
Table of Contents
Schedule of Investments (Unaudited)
iSHARES® MSCI ITALY INDEX FUND
February 28, 2007
Security | Shares | Value | |||
COMMON STOCKS – 94.32% | |||||
AEROSPACE & DEFENSE – 2.17% | |||||
Finmeccanica SpA | 152,502 | $ | 4,496,308 | ||
4,496,308 | |||||
APPAREL – 0.34% | |||||
Benetton Group SpA | 42,781 | 702,439 | |||
702,439 | |||||
AUTO MANUFACTURERS – 2.81% | |||||
Fiat SpAa | 246,312 | 5,830,556 | |||
5,830,556 | |||||
AUTO PARTS & EQUIPMENT – 0.74% | |||||
Pirelli & C. SpA | 1,378,414 | 1,538,589 | |||
1,538,589 | |||||
BANKS – 36.85% | |||||
Banca Monte dei Paschi di Siena SpAb | 641,344 | 4,134,255 | |||
Banca Popolare di Milano Scrl | 230,076 | 3,564,969 | |||
Banche Popolari Unite Scrl | 215,088 | 6,108,591 | |||
Banco Popolare di Verona e | 216,571 | 6,551,220 | |||
Capitalia SpA | 766,140 | 6,588,332 | |||
Intesa Sanpaolo SpA | 2,803,344 | 20,385,440 | |||
UniCredito Italiano SpA | 3,156,061 | 29,182,991 | |||
76,515,798 | |||||
BUILDING MATERIALS – 0.82% | |||||
Italcementi SpA | 56,475 | 1,694,927 | |||
1,694,927 | |||||
COMMERCIAL SERVICES – 2.56% | |||||
Autostrade SpA | 176,634 | 5,319,803 | |||
5,319,803 | |||||
DIVERSIFIED FINANCIAL SERVICES – 3.16% | |||||
Mediobanca SpA | 293,286 | 6,566,704 | |||
6,566,704 | |||||
ELECTRIC – 9.07% | |||||
Enel SpA | 965,286 | 10,066,871 | |||
Terna SpA | 2,525,922 | 8,775,302 | |||
18,842,173 | |||||
ENTERTAINMENT – 0.51% | |||||
Lottomatica SpA | 26,964 | 1,064,981 | |||
1,064,981 |
Security | Shares | Value | |||
HEALTH CARE – PRODUCTS – 1.53% | |||||
Luxottica Group SpA | 101,682 | $ | 3,183,309 | ||
3,183,309 | |||||
INSURANCE – 6.96% | |||||
Assicurazioni Generali SpA | 235,853 | 10,119,145 | |||
Fondiaria-Sai SpA | 53,988 | 2,463,236 | |||
Mediolanum SpAb | 224,784 | 1,867,680 | |||
14,450,061 | |||||
MEDIA – 3.51% | |||||
Arnoldo Mondadori Editore SpA | 76,012 | 785,191 | |||
Gruppo Editoriale L’Espresso SpAb | 75,064 | 393,648 | |||
Mediaset SpA | 417,868 | 4,846,408 | |||
Seat Pagine Gialle SpA | 2,039,184 | 1,252,552 | |||
7,277,799 | |||||
OIL & GAS – 15.61% | |||||
Eni SpA | 1,060,092 | 32,417,605 | |||
32,417,605 | |||||
RETAIL – 1.11% | |||||
Autogrill SpA | 70,034 | 1,263,706 | |||
Bulgari SpA | 72,248 | 1,041,207 | |||
2,304,913 | |||||
TELECOMMUNICATIONS – 6.57% | |||||
Telecom Italia SpA | 4,399,959 | 13,295,238 | |||
Tiscali SpAa,b | 104,781 | 351,562 | |||
13,646,800 | |||||
TOTAL COMMON STOCKS | 195,852,765 | ||||
PREFERRED STOCKS – 5.52% | |||||
BANKS – 0.45% | |||||
Intesa Sanpaolo SpA RNC | 131,208 | 932,457 | |||
932,457 | |||||
INSURANCE – 2.14% | |||||
Unipol SpA | 1,309,365 | 4,449,411 | |||
4,449,411 | |||||
TELECOMMUNICATIONS – 2.93% | |||||
Telecom Italia SpA RNC | 2,397,567 | 6,083,934 | |||
6,083,934 | |||||
TOTAL PREFERRED STOCKS | 11,465,802 |
44 | 2007 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI ITALY INDEX FUND
February 28, 2007
Security | Principal | Value | ||||
SHORT-TERM INVESTMENTS – 1.05% | ||||||
CERTIFICATES OF DEPOSITc – 0.04% | ||||||
Credit Suisse First Boston NY | ||||||
5.28% - 5.43%, | $ | 20,418 | $ | 20,418 | ||
Deutsche Bank AG | ||||||
5.35%, 08/08/07 | 34,031 | 34,031 | ||||
Washington Mutual Bank | ||||||
5.33%, 03/19/07 | 34,031 | 34,031 | ||||
88,480 | ||||||
COMMERCIAL PAPERc – 0.20% | ||||||
Amstel Funding Corp. | ||||||
5.22%, 04/16/07 - 04/17/07d | 12,947 | 12,869 | ||||
BNP Paribas Finance Inc. | ||||||
5.12%, 06/06/07 | 4,764 | 4,699 | ||||
Bryant Park Funding LLC | ||||||
5.27%, 03/06/07d | 3,355 | 3,352 | ||||
Cantabric Finance LLC | ||||||
5.25%, 03/06/07d | 10,890 | 10,882 | ||||
Cheyne Finance LLC | ||||||
5.24%, 04/12/07 - 04/23/07d | 10,209 | 10,136 | ||||
Concord Minutemen Capital Co. LLC | ||||||
5.29%, 03/19/07d | 6,938 | 6,920 | ||||
Crown Point Capital Co. LLC | ||||||
5.20%, 07/18/07d | 15,724 | 15,409 | ||||
Edison Asset Securitization LLC | ||||||
5.21%, 04/11/07d | 5,641 | 5,608 | ||||
Five Finance Inc. | ||||||
5.22%, 04/20/07d | 6,262 | 6,216 | ||||
General Electric Capital Corp. | ||||||
5.12% - 5.20%, | 23,822 | 23,413 | ||||
Giro Funding Corp. | ||||||
5.25%, 03/05/07 - 03/12/07d | 22,324 | 22,298 | ||||
Grampian Funding LLC | ||||||
5.14% - 5.23%, | 26,544 | 26,214 | ||||
Harrier Finance Funding LLC | ||||||
5.12%, 06/06/07d | 13,612 | 13,425 | ||||
Irish Permanent Treasury PLC | ||||||
5.18%, 07/10/07 | 6,806 | 6,678 | ||||
KKR Pacific Funding Trust | ||||||
5.29%, 03/13/07d | 17,016 | 16,986 |
Security | Principal | Value | ||||
Lexington Parker Capital Co. LLC | ||||||
5.18% - 5.20%, | $ | 17,199 | $ | 16,906 | ||
Liberty Street Funding Corp. | ||||||
5.27%, 03/06/07d | 1,633 | 1,632 | ||||
Lockhart Funding LLC | ||||||
5.25%, 05/04/07 - 05/14/07d | 30,709 | 30,418 | ||||
Nationwide Building Society | ||||||
5.21%, 04/13/07d | 12,932 | 12,851 | ||||
Nestle Capital Corp. | ||||||
5.19%, 08/09/07 | 8,167 | 7,978 | ||||
Sedna Finance Inc. | ||||||
5.22%, 04/17/07d | 7,759 | 7,706 | ||||
Simba Funding Corp. | ||||||
5.20%, 07/23/07d | 13,612 | 13,329 | ||||
Societe Generale | ||||||
5.18%, 05/16/07 | 34,031 | 33,659 | ||||
Thames Asset Global Securitization No. 1 Inc. | ||||||
5.25% - 5.28%, | 51,857 | 51,807 | ||||
Thornburg Mortgage Capital Resources LLC | ||||||
5.28%, 03/12/07d | 9,964 | 9,948 | ||||
Three Pillars Funding Corp. | ||||||
5.26%, 03/01/07 - 03/12/07d | 7,146 | 7,141 | ||||
Tulip Funding Corp. | ||||||
5.29%, 03/15/07d | 26,131 | 26,077 | ||||
Westpac Banking Corp. | ||||||
5.20%, 07/12/07d | 12,251 | 12,016 | ||||
Zela Finance Inc. | ||||||
5.20%, 07/16/07d | 8,167 | 8,006 | ||||
424,579 | ||||||
MEDIUM-TERM NOTESc – 0.02% | ||||||
Bank of America N.A. | ||||||
5.28%, 04/20/07 | 3,403 | 3,403 | ||||
Cullinan Finance Corp. | ||||||
5.71%, 06/28/07d | 10,209 | 10,209 | ||||
K2 USA LLC | ||||||
5.39%, 06/04/07d | 10,209 | 10,209 | ||||
Sigma Finance Inc. | ||||||
5.13% - 5.51%, | 15,926 | 15,926 | ||||
39,747 |
SCHEDULESOF INVESTMENTS | 45 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI ITALY INDEX FUND
February 28, 2007
Security | Shares or Principal | Value | ||||
MONEY MARKET FUNDS – 0.15% | ||||||
Barclays Global Investors Funds | ||||||
5.30%e,f | 305,711 | $ | 305,711 | |||
305,711 | ||||||
REPURCHASE AGREEMENTSc – 0.12% | ||||||
Banc of America Securities LLC | $ | 27,225 | 27,225 | |||
Bear Stearns Companies Inc. (The) | 20,419 | 20,419 | ||||
BNP Securities Corp. | 1,361 | 1,361 | ||||
Citigroup Global Markets Holdings Inc. | 20,419 | 20,419 | ||||
Citigroup Global Markets Holdings Inc. | 27,225 | 27,225 |
Security | Principal | Value | ||||
Citigroup Global Markets Holdings Inc. | $ | 14,974 | $ | 14,974 | ||
Citigroup Global Markets Holdings Inc. | 8,167 | 8,167 | ||||
Goldman Sachs Group Inc. (The) | 5,051 | 5,051 | ||||
Greenwich Capital Markets Inc. | 57,172 | 57,172 | ||||
HSBC Securities Inc. | 6,806 | 6,806 | ||||
JP Morgan Securities Inc. | 3,403 | 3,403 |
46 | 2007 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI ITALY INDEX FUND
February 28, 2007
Security | Principal | Value | ||||
Merrill Lynch & Co. Inc. | $ | 13,612 | $ | 13,612 | ||
Morgan Stanley | 13,612 | 13,612 | ||||
Morgan Stanley | 9,529 | 9,529 | ||||
Wachovia Capital | 29,947 | 29,947 | ||||
258,922 | ||||||
TIME DEPOSITSc – 0.04% | ||||||
Bank of Nova Scotia | ||||||
5.30%, 03/02/07 | 5,709 | 5,709 | ||||
Chase Bank USA N.A. | ||||||
5.38%, 03/01/07 | 20,419 | 20,419 | ||||
Citibank N.A. | ||||||
5.47%, 03/01/07 | 20,419 | 20,419 | ||||
Deutsche Bank AG | ||||||
5.38%, 03/01/07 | 31,972 | 31,972 | ||||
78,519 |
Security | Principal | Value | ||||
VARIABLE & FLOATING RATE NOTESc – 0.48% | ||||||
Allstate Life Global Funding II | ||||||
5.30% - 5.40%, | $ | 34,848 | $ | 34,851 | ||
American Express Centurion Bank | ||||||
5.41%, 07/19/07 | 14,974 | 14,980 | ||||
American Express Credit Corp. | ||||||
5.42%, 03/05/08 | 4,084 | 4,086 | ||||
AmeriCredit Automobile Receivables Trust | ||||||
5.35%, 03/06/07 | 620 | 620 | ||||
Arkle Master Issuer PLC Series 2006-1A Class 1A | ||||||
5.30%, 11/19/07d | 10,209 | 10,209 | ||||
ASIF Global Financing | ||||||
5.40%, 05/03/07d | 1,361 | 1,361 | ||||
Australia & New Zealand Banking Group Ltd. | ||||||
5.32%, 02/22/08d | 8,848 | 8,848 | ||||
Bank of Ireland | ||||||
5.30% - 5.32%, | 19,738 | 19,739 | ||||
Beta Finance Inc. | ||||||
5.29% - 5.41%, | 34,712 | 34,712 | ||||
BMW US Capital LLC | ||||||
5.32%, 01/15/08d | 13,612 | 13,612 | ||||
BNP Paribas | ||||||
5.33%, 11/19/07d | 25,183 | 25,183 | ||||
Brigantine High Grade Funding Ltd. | ||||||
5.40%, 09/05/07d | 13,068 | 13,067 | ||||
Carlyle Loan Investment Ltd. | ||||||
5.37%, 04/13/07 - 07/15/07d | 9,937 | 9,937 | ||||
CC USA Inc. | ||||||
5.36%, 07/30/07d | 6,806 | 6,807 | ||||
Commodore CDO Ltd. | ||||||
5.44%, 12/12/07d | 3,403 | 3,403 | ||||
Credit Agricole SA | ||||||
5.33%, 11/23/07 | 13,612 | 13,612 | ||||
Credit Suisse First Boston NY | ||||||
5.36%, 04/24/07 | 6,806 | 6,806 |
SCHEDULESOF INVESTMENTS | 47 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI ITALY INDEX FUND
February 28, 2007
Security | Principal | Value | ||||
Cullinan Finance Corp. | ||||||
5.36%, 04/25/07d | $ | 3,403 | $ | 3,403 | ||
DaimlerChrysler Auto Trust Series 2006-C Class A1 | ||||||
5.33%, 10/08/07d | 1,044 | 1,044 | ||||
DEPFA Bank PLC | ||||||
5.40%, 12/14/07d | 13,612 | 13,612 | ||||
Dorada Finance Inc. | ||||||
5.33% - 5.41%, | 15,654 | 15,655 | ||||
Eli Lilly Services Inc. | ||||||
5.31%, 03/01/07d | 9,086 | 9,086 | ||||
Fifth Third Bancorp | ||||||
5.32%, 02/22/08d | 27,225 | 27,225 | ||||
Five Finance Inc. | ||||||
5.31% - 5.37%, | 8,848 | 8,848 | ||||
General Electric Capital Corp. | ||||||
5.28% - 5.45%, | 14,293 | 14,294 | ||||
Granite Master Issuer PLC | ||||||
5.29%, 08/20/07d | 47,644 | 47,644 | ||||
Harrier Finance Funding LLC | ||||||
5.29% - 5.36%, | 17,696 | 17,697 | ||||
Hartford Life Global Funding Trust | ||||||
5.36% - 5.40%, | 20,419 | 20,420 | ||||
HBOS Treasury Services PLC | ||||||
5.46%, 01/24/08d | 13,612 | 13,612 | ||||
Holmes Financing PLC | ||||||
5.29%, 07/16/07d | 23,822 | 23,822 | ||||
JP Morgan Securities Inc. | ||||||
5.40%, 11/16/07 | 27,225 | 27,225 | ||||
JPMorgan Chase & Co. | ||||||
5.29% - 5.45%, | 37,434 | 37,434 | ||||
K2 USA LLC | ||||||
5.20% - 5.33%, | 10,209 | 10,209 | ||||
Kestrel Funding LLC | ||||||
5.30%, 07/11/07d | 5,445 | 5,445 |
Security | Principal | Value | ||||
Kommunalkredit Austria AG | ||||||
5.32%, 02/08/08d | $ | 8,167 | $ | 8,167 | ||
Leafs LLC | ||||||
5.32%, 01/22/08d | 13,189 | 13,189 | ||||
Links Finance LLC | ||||||
5.28% - 5.35%, | 14,974 | 14,973 | ||||
Lothian Mortgages Master Issuer PLC | ||||||
5.29%, 04/24/07d | 4,799 | 4,799 | ||||
Marshall & Ilsley Bank | ||||||
5.32%, 02/15/08 | 7,487 | 7,487 | ||||
Master Funding LLC | ||||||
5.35%, 04/25/07 - 05/25/07d | 24,635 | 24,635 | ||||
Merrill Lynch & Co. Inc. | ||||||
5.46%, 05/30/07g | 14,974 | 14,974 | ||||
Metropolitan Life Global Funding I | ||||||
5.33%, 03/06/08d | 20,419 | 20,419 | ||||
Metropolitan Life Insurance Funding Agreement | ||||||
5.44%, 08/01/07d,g | 1,361 | 1,361 | ||||
Mound Financing PLC | ||||||
5.29%, 05/08/07d | 12,796 | 12,796 | ||||
Natexis Banques Populaires | ||||||
5.33% - 5.35%, | 21,780 | 21,779 | ||||
National City Bank of Indiana | ||||||
5.34%, 05/21/07 | 6,806 | 6,806 | ||||
Nationwide Building Society | ||||||
5.37% - 5.48%, | 44,921 | 44,926 | ||||
Newcastle Ltd. | ||||||
5.34%, 04/24/07 - 01/24/08d | 13,646 | 13,644 | ||||
Northern Rock PLC | ||||||
5.38%, 02/01/08d | 16,335 | 16,335 | ||||
Northlake CDO I | ||||||
5.42%, 09/06/07d | 4,084 | 4,084 | ||||
Pricoa Global Funding I | ||||||
5.31%, 02/27/08d | 18,377 | 18,377 | ||||
Sedna Finance Inc. | ||||||
5.32% - 5.34%, | 19,738 | 19,737 |
48 | 2007 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI ITALY INDEX FUND
February 28, 2007
Security | Principal | Value | |||||
Skandinaviska Enskilda Banken |
| ||||||
5.32%, 02/15/08d | $ | 13,612 | $ | 13,612 | |||
Strips III LLC | |||||||
5.37%, 07/24/07d | 2,770 | 2,770 | |||||
SunTrust Bank | |||||||
5.29%, 05/01/07 | 13,612 | 13,613 | |||||
Tango Finance Corp. | |||||||
5.27% - 5.34%, | 33,214 | 33,213 | |||||
Union Hamilton Special Funding LLC |
| ||||||
5.36% - 5.37%, | 22,461 | 22,460 | |||||
Wachovia Asset Securitization Inc. |
| ||||||
5.31%, 03/25/07d | 15,366 | 15,366 | |||||
Wachovia Bank N.A. | |||||||
5.36%, 05/22/07 | 27,225 | 27,225 | |||||
Wal-Mart Stores Inc. | |||||||
5.50%, 07/16/07d | 10,209 | 10,212 | |||||
Wells Fargo & Co. | |||||||
5.33%, 11/15/07d | 6,806 | 6,806 | |||||
WhistleJacket Capital Ltd. | |||||||
5.28% - 5.35%, | 10,209 | 10,210 | |||||
White Pine Finance LLC | |||||||
5.28% - 5.32%, | 40,837 | 40,833 | |||||
Wind Master Trust | |||||||
5.31%, 07/25/07d | 5,445 | 5,445 | |||||
988,761 | |||||||
TOTAL SHORT-TERM INVESTMENTS | 2,184,719 | ||||||
TOTAL INVESTMENTS IN SECURITIES – 100.89% | 209,503,286 | ||||||
Other Assets, Less Liabilities – (0.89)% | (1,844,821 | ) | |||||
NET ASSETS – 100.00% | $ | 207,658,465 | |||||
a | Non-income earning security. |
b | All or a portion of this security represents a security on loan. See Note 5. |
c | All or a portion of this security (these securities) represent(s) an investment of securities lending collateral. See Note 5. |
d | This security or a portion of these securities may be resold to qualified institutional buyers under Rule 144A or pursuant to Section 4(2) of the Securities Act of 1933. |
e | Affiliated issuer. See Note 2. |
f | The rate quoted is the annualized seven-day yield of the fund at period end. |
g | 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 financial statements.
SCHEDULESOF INVESTMENTS | 49 |
Table of Contents
Schedule of Investments (Unaudited)
iSHARES® MSCI NETHERLANDS INDEX FUND
February 28, 2007
Security | Shares | Value | |||
COMMON STOCKS – 99.95% | |||||
BANKS – 13.81% | |||||
ABN AMRO Holding NV | 721,688 | $ | 25,272,348 | ||
25,272,348 | |||||
BEVERAGES – 3.44% | |||||
Heineken NV | 127,917 | 6,294,206 | |||
6,294,206 | |||||
CHEMICALS – 6.57% | |||||
Akzo Nobel NV | 133,861 | 8,238,216 | |||
Koninklijke DSM NV | 87,709 | 3,794,389 | |||
12,032,605 | |||||
COMMERCIAL SERVICES – 1.84% | |||||
Randstad Holding NV | 22,333 | 1,562,066 | |||
Vedior NV | 82,994 | 1,807,814 | |||
3,369,880 | |||||
COMPUTERS – 0.30% | |||||
Getronics NVa | 64,176 | 549,331 | |||
549,331 | |||||
DISTRIBUTION & WHOLESALE – 0.99% | |||||
Buhrmann NV | 55,289 | 754,441 | |||
Hagemeyer NVa,b | 223,259 | 1,055,792 | |||
1,810,233 | |||||
ELECTRONICS – 8.99% | |||||
Koninklijke Philips Electronics NV | 448,811 | 16,463,636 | |||
16,463,636 | |||||
FOOD – 14.94% | |||||
Koninklijke Ahold NVb | 692,593 | 6,916,498 | |||
Royal Numico NV | 76,063 | 3,914,522 | |||
Unilever NV | 638,288 | 16,517,241 | |||
27,348,261 | |||||
INSURANCE – 22.42% | |||||
Aegon NV | 447,366 | 8,834,674 | |||
ING Groep NV | 755,743 | 32,215,100 | |||
41,049,774 | |||||
MEDIA – 6.38% | |||||
Reed Elsevier NV | 422,302 | 7,452,740 | |||
Wolters Kluwer NV CVA | 139,903 | 4,226,487 | |||
11,679,227 |
Security | Shares or Principal | Value | ||||
OFFICE & BUSINESS EQUIPMENT – 0.53% | ||||||
Oce NV | 58,143 | $ | 966,194 | |||
966,194 | ||||||
OIL & GAS SERVICES – 1.70% | ||||||
Fugro NV | 23,939 | 1,118,478 | ||||
SBM Offshore NV | 56,160 | 1,994,823 | ||||
3,113,301 | ||||||
REAL ESTATE INVESTMENT TRUSTS – 5.35% | ||||||
Corio NV | 31,339 | 2,908,157 | ||||
Rodamco Europe NV | 32,876 | 4,522,545 | ||||
Wereldhave NV | 17,792 | 2,362,220 | ||||
9,792,922 | ||||||
SEMICONDUCTORS – 2.90% | ||||||
ASML Holding NVb | 215,729 | 5,303,240 | ||||
5,303,240 | ||||||
TELECOMMUNICATIONS – 4.95% | ||||||
Koninklijke KPN NV | 588,079 | 9,057,756 | ||||
9,057,756 | ||||||
TRANSPORTATION – 4.84% | ||||||
TNT NV | 206,276 | 8,858,334 | ||||
8,858,334 | ||||||
TOTAL COMMON STOCKS | 182,961,248 | |||||
SHORT-TERM INVESTMENTS – 0.75% | ||||||
CERTIFICATES OF DEPOSITc – 0.04% | ||||||
Credit Suisse First Boston NY | ||||||
5.28% - 5.43%, | $ | 14,925 | 14,925 | |||
Deutsche Bank AG | ||||||
5.35%, 08/08/07 | 24,874 | 24,874 | ||||
Washington Mutual Bank | ||||||
5.33%, 03/19/07 | 24,874 | 24,874 | ||||
64,673 | ||||||
COMMERCIAL PAPERc – 0.17% | ||||||
Amstel Funding Corp. | ||||||
5.22%, | 9,463 | 9,402 | ||||
BNP Paribas Finance Inc. | ||||||
5.12%, 06/06/07 | 3,482 | 3,434 |
50 | 2007 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI NETHERLANDS INDEX FUND
February 28, 2007
Security | Principal | Value | ||||
Bryant Park Funding LLC | ||||||
5.27%, 03/06/07d | $ | 2,452 | $ | 2,450 | ||
Cantabric Finance LLC | ||||||
5.25%, 03/06/07d | 7,960 | 7,954 | ||||
Cheyne Finance LLC | ||||||
5.24%, | 7,462 | 7,408 | ||||
Concord Minutemen Capital Co. LLC | ||||||
5.29%, 03/19/07d | 5,071 | 5,058 | ||||
Crown Point Capital Co. LLC | ||||||
5.20%, 07/18/07d | 11,493 | 11,263 | ||||
Edison Asset Securitization LLC | ||||||
5.21%, 04/11/07d | 4,123 | 4,099 | ||||
Five Finance Inc. | ||||||
5.22%, 04/20/07d | 4,577 | 4,544 | ||||
General Electric Capital Corp. | ||||||
5.12% - 5.20%, | 17,412 | 17,113 | ||||
Giro Funding Corp. | ||||||
5.25%, | 16,318 | 16,298 | ||||
Grampian Funding LLC | ||||||
5.14% - 5.23%, | 19,402 | 19,161 | ||||
Harrier Finance Funding LLC | ||||||
5.12%, 06/06/07d | 9,950 | 9,813 | ||||
Irish Permanent Treasury PLC | ||||||
5.18%, 07/10/07 | 4,975 | 4,881 | ||||
KKR Pacific Funding Trust | ||||||
5.29%, 03/13/07d | 12,437 | 12,415 | ||||
Lexington Parker Capital Co. LLC | ||||||
5.18% - 5.20%, | 12,571 | 12,357 | ||||
Liberty Street Funding Corp. | ||||||
5.27%, 03/06/07d | 1,194 | 1,193 | ||||
Lockhart Funding LLC | ||||||
5.25%, | 22,446 | 22,233 | ||||
Nationwide Building Society | ||||||
5.21%, 04/13/07d | 9,452 | 9,393 | ||||
Nestle Capital Corp. | ||||||
5.19%, 08/09/07 | 5,970 | 5,831 | ||||
Sedna Finance Inc. | ||||||
5.22%, 04/17/07d | 5,671 | 5,633 |
Security | Shares or Principal | Value | ||||
Simba Funding Corp. | ||||||
5.20%, 07/23/07d | $ | 9,950 | $ | 9,743 | ||
Societe Generale | ||||||
5.18%, 05/16/07 | 24,874 | 24,602 | ||||
Thames Asset Global Securitization No. 1 Inc. | ||||||
5.25% - 5.28%, | 37,904 | 37,867 | ||||
Thornburg Mortgage Capital Resources LLC | ||||||
5.28%, 03/12/07d | 7,283 | 7,271 | ||||
Three Pillars Funding Corp. | ||||||
5.26%, | 5,223 | 5,219 | ||||
Tulip Funding Corp. | ||||||
5.29%, 03/15/07d | 19,100 | 19,060 | ||||
Westpac Banking Corp. | ||||||
5.20%, 07/12/07d | 8,955 | 8,783 | ||||
Zela Finance Inc. | ||||||
5.20%, 07/16/07d | 5,970 | 5,852 | ||||
310,330 | ||||||
MEDIUM-TERM NOTESc – 0.02% | ||||||
Bank of America N.A. | ||||||
5.28%, 04/20/07 | 2,487 | 2,487 | ||||
Cullinan Finance Corp. | ||||||
5.71%, 06/28/07d | 7,462 | 7,462 | ||||
K2 USA LLC | ||||||
5.39%, 06/04/07d | 7,462 | 7,462 | ||||
Sigma Finance Inc. | ||||||
5.13% - 5.51%, | 11,641 | 11,641 | ||||
29,052 | ||||||
MONEY MARKET FUNDS – 0.00% | ||||||
Barclays Global Investors Funds Institutional Money Market Fund, Institutional Shares | 1,334 | 1,334 | ||||
1,334 |
SCHEDULESOF INVESTMENTS | 51 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI NETHERLANDS INDEX FUND
February 28, 2007
Security | Principal | Value | ||||
REPURCHASE AGREEMENTSc – 0.10% | ||||||
Banc of America Securities LLC | $ | 19,900 | $ | 19,900 | ||
Bear Stearns Companies Inc. (The) | 14,925 | 14,925 | ||||
BNP Securities Corp. | 995 | 995 | ||||
Citigroup Global Markets Holdings Inc. | 14,925 | 14,925 | ||||
Citigroup Global Markets Holdings Inc. | 19,900 | 19,900 | ||||
Citigroup Global Markets Holdings Inc. | 10,945 | 10,945 |
Security | Principal | Value | ||||
Citigroup Global Markets Holdings Inc. | $ | 5,970 | $ | 5,970 | ||
Goldman Sachs Group Inc. (The) | 3,692 | 3,692 | ||||
Greenwich Capital Markets Inc. | 41,789 | 41,789 | ||||
HSBC Securities Inc. | 4,975 | 4,975 | ||||
JP Morgan Securities Inc. | 2,487 | 2,487 | ||||
Merrill Lynch & Co. Inc. | 9,950 | 9,950 |
52 | 2007 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI NETHERLANDS INDEX FUND
February 28, 2007
Security | Principal | Value | ||||
Morgan Stanley | $ | 9,950 | $ | 9,950 | ||
Morgan Stanley | 6,965 | 6,965 | ||||
Wachovia Capital | 21,889 | 21,889 | ||||
189,257 | ||||||
TIME DEPOSITSc – 0.03% | ||||||
Bank of Nova Scotia | ||||||
5.30%, 03/02/07 | 4,173 | 4,173 | ||||
Chase Bank USA N.A. | ||||||
5.38%, 03/01/07 | 14,925 | 14,925 | ||||
Citibank N.A. | ||||||
5.47%, 03/01/07 | 14,925 | 14,925 | ||||
Deutsche Bank AG | ||||||
5.38%, 03/01/07 | 23,369 | 23,369 | ||||
57,392 | ||||||
VARIABLE & FLOATING RATE NOTESc – 0.39% | ||||||
Allstate Life Global Funding II | ||||||
5.30% - 5.40%, | 25,471 | 25,474 | ||||
American Express Centurion Bank | ||||||
5.41%, 07/19/07 | 10,945 | 10,950 | ||||
American Express Credit Corp. | ||||||
5.42%, 03/05/08 | 2,985 | 2,986 | ||||
AmeriCredit Automobile Receivables Trust | ||||||
5.35%, 03/06/07 | 453 | 453 |
Security | Principal | Value | ||||
Arkle Master Issuer PLC | ||||||
5.30%, 11/19/07d | $ | 7,462 | $ | 7,462 | ||
ASIF Global Financing | ||||||
5.40%, 05/03/07d | 995 | 995 | ||||
Australia & New Zealand Banking | ||||||
5.32%, 02/22/08d | 6,467 | 6,467 | ||||
Bank of Ireland | ||||||
5.30% - 5.32%, | 14,427 | 14,428 | ||||
Beta Finance Inc. | ||||||
5.29% - 5.41%, | 25,372 | 25,372 | ||||
BMW US Capital LLC | ||||||
5.32%, 01/15/08d | 9,950 | 9,950 | ||||
BNP Paribas | ||||||
5.33%, 11/19/07d | 18,407 | 18,407 | ||||
Brigantine High Grade Funding Ltd. | ||||||
5.40%, 09/05/07d | 9,552 | 9,551 | ||||
Carlyle Loan Investment Ltd. | ||||||
5.37%, | 7,263 | 7,263 | ||||
CC USA Inc. | ||||||
5.36%, 07/30/07d | 4,975 | 4,975 | ||||
Commodore CDO Ltd. | ||||||
5.44%, 12/12/07d | 2,487 | 2,487 | ||||
Credit Agricole SA | ||||||
5.33%, 11/23/07 | 9,950 | 9,950 | ||||
Credit Suisse First Boston NY | ||||||
5.36%, 04/24/07 | 4,975 | 4,975 | ||||
Cullinan Finance Corp. | ||||||
5.36%, 04/25/07d | 2,487 | 2,487 | ||||
DaimlerChrysler Auto Trust Series 2006-C Class A1 | ||||||
5.33%, 10/08/07d | 763 | 763 | ||||
DEPFA Bank PLC | ||||||
5.40%, 12/14/07d | 9,950 | 9,950 | ||||
Dorada Finance Inc. | ||||||
5.33% - 5.41%, | 11,442 | 11,442 | ||||
Eli Lilly Services Inc. | ||||||
5.31%, 03/01/07d | 6,641 | 6,641 |
SCHEDULESOF INVESTMENTS | 53 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI NETHERLANDS INDEX FUND
February 28, 2007
Security | Principal | Value | ||||
Fifth Third Bancorp | ||||||
5.32%, 02/22/08d | $ | 19,900 | $ | 19,900 | ||
Five Finance Inc. | ||||||
5.31% - 5.37%, | 6,467 | 6,467 | ||||
General Electric Capital Corp. | ||||||
5.28% - 5.45%, | 10,447 | 10,448 | ||||
Granite Master Issuer PLC | ||||||
5.29%, 08/20/07d | 34,824 | 34,824 | ||||
Harrier Finance Funding LLC | ||||||
5.29% - 5.36%, | 12,935 | 12,934 | ||||
Hartford Life Global Funding Trust | ||||||
5.36% - 5.40%, | 14,925 | 14,926 | ||||
HBOS Treasury Services PLC | ||||||
5.46%, 01/24/08d | 9,950 | 9,950 | ||||
Holmes Financing PLC | ||||||
5.29%, 07/16/07d | 17,412 | 17,412 | ||||
JP Morgan Securities Inc. | ||||||
5.40%, 11/16/07 | 19,900 | 19,900 | ||||
JPMorgan Chase & Co. | ||||||
5.29% - 5.45%, | 27,362 | 27,362 | ||||
K2 USA LLC | ||||||
5.20% - 5.33%, | 7,462 | 7,462 | ||||
Kestrel Funding LLC | ||||||
5.30%, 07/11/07d | 3,980 | 3,980 | ||||
Kommunalkredit Austria AG | ||||||
5.32%, 02/08/08d | 5,970 | 5,970 | ||||
Leafs LLC | ||||||
5.32%, 01/22/08d | 9,640 | 9,640 | ||||
Links Finance LLC | ||||||
5.28% - 5.35%, | 10,945 | 10,944 | ||||
Lothian Mortgages Master Issuer PLC | ||||||
5.29%, 04/24/07d | 3,508 | 3,508 | ||||
Marshall & Ilsley Bank | ||||||
5.32%, 02/15/08 | 5,472 | 5,472 |
Security | Principal | Value | ||||
Master Funding LLC | ||||||
5.35%, | $ | 18,006 | $ | 18,007 | ||
Merrill Lynch & Co. Inc. | ||||||
5.46%, 05/30/07g | 10,945 | 10,945 | ||||
Metropolitan Life Global Funding I | ||||||
5.33%, 03/06/08d | 14,925 | 14,925 | ||||
Metropolitan Life Insurance Funding Agreement | ||||||
5.44%, 08/01/07d,g | 995 | 995 | ||||
Mound Financing PLC | ||||||
5.29%, 05/08/07d | 9,353 | 9,353 | ||||
Natexis Banques Populaires | ||||||
5.33% - 5.35%, | 15,920 | 15,919 | ||||
National City Bank of Indiana | ||||||
5.34%, 05/21/07 | 4,975 | 4,975 | ||||
Nationwide Building Society | ||||||
5.37% - 5.48%, | 32,834 | 32,838 | ||||
Newcastle Ltd. | ||||||
5.34%, | 9,975 | 9,973 | ||||
Northern Rock PLC | ||||||
5.38%, 02/01/08d | 11,940 | 11,940 | ||||
Northlake CDO I | ||||||
5.42%, 09/06/07d | 2,985 | 2,985 | ||||
Pricoa Global Funding I | ||||||
5.31%, 02/27/08d | 13,432 | 13,432 | ||||
Sedna Finance Inc. | ||||||
5.32% - 5.34%, | 14,427 | 14,427 | ||||
Skandinaviska Enskilda Banken | ||||||
5.32%, 02/15/08d | 9,950 | 9,950 | ||||
Strips III LLC | ||||||
5.37%, 07/24/07d | 2,025 | 2,025 | ||||
SunTrust Bank | ||||||
5.29%, 05/01/07 | 9,950 | 9,950 | ||||
Tango Finance Corp. | ||||||
5.27% - 5.34%, | 24,277 | 24,276 | ||||
Union Hamilton Special Funding LLC | ||||||
5.36% - 5.37%, | 16,417 | 16,417 |
54 | 2007 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI NETHERLANDS INDEX FUND
February 28, 2007
Security | Principal | Value | |||||
Wachovia Asset Securitization Inc. |
| ||||||
5.31%, 03/25/07d | $ | 11,231 | $ | 11,232 | |||
Wachovia Bank N.A. | |||||||
5.36%, 05/22/07 | 19,900 | 19,900 | |||||
Wal-Mart Stores Inc. | |||||||
5.50%, 07/16/07d | 7,462 | 7,464 | |||||
Wells Fargo & Co. | |||||||
5.33%, 11/15/07d | 4,975 | 4,975 | |||||
WhistleJacket Capital Ltd. | |||||||
5.28% - 5.35%, | 7,462 | 7,463 | |||||
White Pine Finance LLC | |||||||
5.28% - 5.32%, | 29,849 | 29,846 | |||||
Wind Master Trust | |||||||
5.31%, 07/25/07d | 3,980 | 3,980 | |||||
722,719 | |||||||
TOTAL SHORT-TERM INVESTMENTS | 1,374,757 | ||||||
TOTAL INVESTMENTS | 184,336,005 | ||||||
Other Assets, Less Liabilities – (0.70)% | (1,277,302 | ) | |||||
NET ASSETS – 100.00% | $ | 183,058,703 | |||||
a | All or a portion of this security represents a security on loan. See Note 5. |
b | Non-income earning security. |
c | All or a portion of this security (these securities) represent(s) an investment of securities lending collateral. See Note 5. |
d | This security or a portion of these securities may be resold to qualified institutional buyers under Rule 144A or pursuant to Section 4(2) of the Securities Act of 1933. |
e | Affiliated issuer. See Note 2. |
f | The rate quoted is the annualized seven-day yield of the fund at period end. |
g | 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 financial statements.
SCHEDULESOF INVESTMENTS | 55 |
Table of Contents
Schedule of Investments (Unaudited)
iSHARES® MSCI SPAIN INDEX FUND
February 28, 2007
Security | Shares | Value | |||
COMMON STOCKS – 99.89% | |||||
AGRICULTURE – 3.09% | |||||
Altadis SA | 402,894 | $ | 20,404,657 | ||
20,404,657 | |||||
AIRLINES – 0.40% | |||||
Iberia Lineas Aereas de Espana SA | 620,946 | 2,616,561 | |||
2,616,561 | |||||
BANKS – 38.16% | |||||
Banco Bilbao Vizcaya Argentaria SA | 3,604,785 | 87,758,882 | |||
Banco Popular Espanol SA | 1,660,338 | 32,613,233 | |||
Banco Santander Central | 6,721,941 | 124,399,665 | |||
Bankinter SA | 92,867 | 6,863,536 | |||
251,635,316 | |||||
BIOTECHNOLOGY – 0.23% | |||||
Zeltia SAa,b | 165,402 | 1,496,641 | |||
1,496,641 | |||||
COMMERCIAL SERVICES – 2.71% | |||||
Abertis Infraestructuras SAb | 443,394 | 12,627,720 | |||
Cintra Concesiones de | 297,470 | 5,226,142 | |||
17,853,862 | |||||
COMPUTERS – 0.68% | |||||
Indra Sistemas SA | 194,745 | 4,476,122 | |||
4,476,122 | |||||
ELECTRIC – 11.48% | |||||
Endesa SA | 671,328 | 34,097,103 | |||
Iberdrola SA | 735,318 | 32,218,628 | |||
Union Fenosa SA | 187,280 | 9,375,987 | |||
75,691,718 | |||||
ENERGY - ALTERNATE SOURCES – 1.05% | |||||
Gamesa Corporacion | 242,276 | 6,947,949 | |||
6,947,949 | |||||
ENGINEERING & CONSTRUCTION – 8.32% | |||||
Acciona SA | 44,481 | 8,881,147 | |||
Actividades de Construcciones y Servicios SA | 375,844 | 21,244,000 |
Security | Shares | Value | |||
Fomento de Construcciones y | 87,591 | $ | 9,094,282 | ||
Grupo Ferrovial SA | 83,719 | 8,283,087 | |||
SacyrVallehermoso SAb | 135,433 | 7,352,799 | |||
54,855,315 | |||||
FOOD – 0.91% | |||||
Ebro Puleva SA | 245,887 | 5,716,558 | |||
Viscofan SA | 14,338 | 295,650 | |||
6,012,208 | |||||
FOREST PRODUCTS & PAPER – 0.29% | |||||
Grupo Empresarial ENCE SA | 32,795 | 1,942,060 | |||
1,942,060 | |||||
GAS – 2.66% | |||||
Gas Natural SDG SA | 410,994 | 17,568,326 | |||
17,568,326 | |||||
INSURANCE – 1.17% | |||||
Corporacion Mapfre SA | 1,552,932 | 7,692,546 | |||
7,692,546 | |||||
IRON & STEEL – 1.13% | |||||
Acerinox SAb | 280,751 | 7,465,372 | |||
7,465,372 | |||||
LODGING – 0.21% | |||||
NH Hoteles SAb | 59,783 | 1,348,814 | |||
NH Hoteles SA Rightsa,b | 59,783 | 20,532 | |||
1,369,346 | |||||
MEDIA – 1.26% | |||||
Antena 3 de Television SAb | 145,962 | 3,264,248 | |||
Promotora de Informaciones SA | 154,386 | 3,059,043 | |||
Sogecable SAa,b | 52,974 | 1,987,319 | |||
8,310,610 | |||||
OIL & GAS – 4.30% | |||||
Repsol YPF SA | 892,458 | 28,328,784 | |||
28,328,784 | |||||
PHARMACEUTICALS – 0.59% | |||||
FAES FARMA SAb | 169,128 | 3,887,328 | |||
3,887,328 | |||||
REAL ESTATE – 0.39% | |||||
Fadesa Inmobiliaria SA | 53,579 | 2,559,938 | |||
2,559,938 |
56 | 2007 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI SPAIN INDEX FUND
February 28, 2007
Security | Shares or Principal | Value | ||||
RETAIL – 2.84% | ||||||
Industria de Diseno Textil SA | 322,636 | $ | 18,747,923 | |||
18,747,923 | ||||||
TELECOMMUNICATIONS – 17.08% | ||||||
Telefonica SA | 5,232,808 | 112,670,127 | ||||
112,670,127 | ||||||
WATER – 0.94% | ||||||
Sociedad General de Aguas de Barcelona SA Class A | 182,967 | 6,146,183 | ||||
Sociedad General de Aguas de Barcelona SA Newa,c | 1,456 | 47,775 | ||||
6,193,958 | ||||||
TOTAL COMMON STOCKS | 658,726,667 | |||||
SHORT-TERM INVESTMENTS – 2.25% | ||||||
CERTIFICATES OF DEPOSITd – 0.10% | ||||||
Credit Suisse First Boston NY | ||||||
5.28% - 5.43%, 04/23/07 - 08/21/07 | $ | 159,375 | 159,375 | |||
Deutsche Bank AG | ||||||
5.35%, 08/08/07 | 265,624 | 265,624 | ||||
Washington Mutual Bank | ||||||
5.33%, 03/19/07 | 265,624 | 265,624 | ||||
690,623 | ||||||
COMMERCIAL PAPERd – 0.50% | ||||||
Amstel Funding Corp. | ||||||
5.22%, | 101,055 | 100,372 | ||||
BNP Paribas Finance Inc. | ||||||
5.12%, 06/06/07 | 37,187 | 36,675 | ||||
Bryant Park Funding LLC | ||||||
5.27%, 03/06/07e | 26,184 | 26,165 | ||||
Cantabric Finance LLC | ||||||
5.25%, 03/06/07e | 85,000 | 84,938 | ||||
Cheyne Finance LLC | ||||||
5.24%, | 79,687 | 79,115 | ||||
Concord Minutemen Capital Co. LLC | ||||||
5.29%, 03/19/07e | 54,152 | 54,009 | ||||
Crown Point Capital Co. LLC | ||||||
5.20%, 07/18/07e | 122,734 | 120,270 |
Security | Principal | Value | ||||
Edison Asset Securitization LLC | ||||||
5.21%, 04/11/07e | $ | 44,033 | $ | 43,772 | ||
Five Finance Inc. | ||||||
5.22%, 04/20/07e | 48,875 | 48,520 | ||||
General Electric Capital Corp. | ||||||
5.12% - 5.20%, | 185,937 | 182,744 | ||||
Giro Funding Corp. | ||||||
5.25%, | 174,249 | 174,039 | ||||
Grampian Funding LLC | ||||||
5.14% - 5.23%, | 207,187 | 204,613 | ||||
Harrier Finance Funding LLC | ||||||
5.12%, 06/06/07e | 106,250 | 104,785 | ||||
Irish Permanent Treasury PLC | ||||||
5.18%, 07/10/07 | 53,125 | 52,123 | ||||
KKR Pacific Funding Trust | ||||||
5.29%, 03/13/07e | 132,812 | 132,578 | ||||
Lexington Parker Capital Co. LLC | ||||||
5.18% - 5.20%, | 134,244 | 131,960 | ||||
Liberty Street Funding Corp. | ||||||
5.27%, 03/06/07e | 12,750 | 12,741 | ||||
Lockhart Funding LLC | ||||||
5.25%, | 239,695 | 237,418 | ||||
Nationwide Building Society | ||||||
5.21%, 04/13/07e | 100,937 | 100,309 | ||||
Nestle Capital Corp. | ||||||
5.19%, 08/09/07 | 63,750 | 62,270 | ||||
Sedna Finance Inc. | ||||||
5.22%, 04/17/07e | 60,562 | 60,150 | ||||
Simba Funding Corp. | ||||||
5.20%, 07/23/07e | 106,250 | 104,040 | ||||
Societe Generale | ||||||
5.18%, 05/16/07 | 265,624 | 262,719 | ||||
Thames Asset Global | ||||||
5.25% - 5.28%, | 404,764 | 404,372 | ||||
Thornburg Mortgage Capital | ||||||
5.28%, 03/12/07e | 77,775 | 77,649 |
SCHEDULESOF INVESTMENTS | 57 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI SPAIN INDEX FUND
February 28, 2007
Security | Shares or Principal | Value | ||||
Three Pillars Funding Corp. | ||||||
5.26%, | $ | 55,779 | $ | 55,735 | ||
Tulip Funding Corp. | ||||||
5.29%, 03/15/07e | 203,958 | 203,538 | ||||
Westpac Banking Corp. | ||||||
5.20%, 07/12/07e | 95,625 | 93,788 | ||||
Zela Finance Inc. | ||||||
5.20%, 07/16/07e | 63,750 | 62,488 | ||||
3,313,895 | ||||||
MEDIUM-TERM NOTESd – 0.05% | ||||||
Bank of America N.A. | ||||||
5.28%, 04/20/07 | 26,562 | 26,562 | ||||
Cullinan Finance Corp. | ||||||
5.71%, 06/28/07e | 79,687 | 79,687 | ||||
K2 USA LLC | ||||||
5.39%, 06/04/07e | 79,687 | 79,687 | ||||
Sigma Finance Inc. | ||||||
5.13% - 5.51%, | 124,312 | 124,312 | ||||
310,248 | ||||||
MONEY MARKET FUNDS – 0.03% | ||||||
Barclays Global Investors Funds Institutional Money Market Fund, Institutional Shares | 168,686 | 168,686 | ||||
168,686 | ||||||
REPURCHASE AGREEMENTSd – 0.31% | ||||||
Banc of America Securities LLC 5.36%, due 3/1/07, maturity value $212,531 (collateralized by non-U.S. Government debts securities, value $219,047, 5.50% to 7.70%, 9/15/09 to 5/1/19). | $ | 212,499 | 212,499 | |||
Bear Stearns Companies Inc. (The) 5.37%, due 3/1/07, maturity value $159,398 (collateralized by non-U.S. Government debts securities, value $175,450, 0.00% to 9.20%, 10/17/18 to 11/25/52). | 159,374 | 159,374 |
Security | Principal | Value | ||||
BNP Securities Corp. | $ | 10,625 | $ | 10,625 | ||
Citigroup Global Markets Holdings Inc. | 159,374 | 159,374 | ||||
Citigroup Global Markets Holdings Inc. | 212,499 | 212,499 | ||||
Citigroup Global Markets Holdings Inc. | 116,875 | 116,875 | ||||
Citigroup Global Markets Holdings Inc. | 63,750 | 63,750 | ||||
Goldman Sachs Group Inc. (The) | 39,426 | 39,426 |
58 | 2007 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI SPAIN INDEX FUND
February 28, 2007
Security | Principal | Value | ||||
Greenwich Capital Markets Inc. | $ | 446,248 | $ | 446,248 | ||
HSBC Securities Inc. | 53,125 | 53,125 | ||||
JP Morgan Securities Inc. | 26,562 | 26,562 | ||||
Merrill Lynch & Co. Inc. | 106,250 | 106,250 | ||||
Morgan Stanley | 106,250 | 106,250 | ||||
Morgan Stanley | 74,375 | 74,375 |
Security | Principal | Value | ||||
Wachovia Capital | $ | 233,749 | $ | 233,749 | ||
2,020,981 | ||||||
TIME DEPOSITSd – 0.09% | ||||||
Bank of Nova Scotia | ||||||
5.30%, 03/02/07 | 44,557 | 44,557 | ||||
Chase Bank USA N.A. | ||||||
5.38%, 03/01/07 | 159,374 | 159,374 | ||||
Citibank N.A. | ||||||
5.47%, 03/01/07 | 159,374 | 159,374 | ||||
Deutsche Bank AG | ||||||
5.38%, 03/01/07 | 249,550 | 249,550 | ||||
612,855 | ||||||
VARIABLE & FLOATING RATE NOTESd – 1.17% | ||||||
Allstate Life Global Funding II | ||||||
5.30% - 5.40%, | 271,999 | 272,025 | ||||
American Express Centurion Bank | ||||||
5.41%, 07/19/07 | 116,875 | 116,927 | ||||
American Express Credit Corp. | ||||||
5.42%, 03/05/08 | 31,875 | 31,890 | ||||
AmeriCredit Automobile Receivables Trust | ||||||
5.35%, 03/06/07 | 4,842 | 4,842 | ||||
Arkle Master Issuer PLC Series | ||||||
5.30%, 11/19/07e | 79,687 | 79,687 | ||||
ASIF Global Financing | ||||||
5.40%, 05/03/07e | 10,625 | 10,626 | ||||
Australia & New Zealand | ||||||
5.32%, 02/22/08e | 69,062 | 69,062 | ||||
Bank of Ireland | ||||||
5.30% - 5.32%, | 154,062 | 154,067 |
SCHEDULESOF INVESTMENTS | 59 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI SPAIN INDEX FUND
February 28, 2007
Security | Principal | Value | ||||
Beta Finance Inc. | ||||||
5.29% - 5.41%, | $ | 270,936 | $ | 270,941 | ||
BMW US Capital LLC | ||||||
5.32%, 01/15/08e | 106,250 | 106,250 | ||||
BNP Paribas | ||||||
5.33%, 11/19/07e | 196,562 | 196,562 | ||||
Brigantine High Grade Funding Ltd. | ||||||
5.40%, 09/05/07e | 102,000 | 101,990 | ||||
Carlyle Loan Investment Ltd. | ||||||
5.37%, | 77,562 | 77,562 | ||||
CC USA Inc. | ||||||
5.36%, 07/30/07e | 53,125 | 53,128 | ||||
Commodore CDO Ltd. | ||||||
5.44%, 12/12/07e | 26,562 | 26,562 | ||||
Credit Agricole SA | ||||||
5.33%, 11/23/07 | 106,250 | 106,250 | ||||
Credit Suisse First Boston NY | ||||||
5.36%, 04/24/07 | 53,125 | 53,125 | ||||
Cullinan Finance Corp. | ||||||
5.36%, 04/25/07e | 26,562 | 26,562 | ||||
DaimlerChrysler Auto Trust Series 2006-C Class A1 | ||||||
5.33%, 10/08/07e | 8,150 | 8,150 | ||||
DEPFA Bank PLC | ||||||
5.40%, 12/14/07e | 106,250 | 106,250 | ||||
Dorada Finance Inc. | ||||||
5.33% - 5.41%, | 122,187 | 122,189 | ||||
Eli Lilly Services Inc. | ||||||
5.31%, 03/01/07e | 70,922 | 70,922 | ||||
Fifth Third Bancorp | ||||||
5.32%, 02/22/08e | 212,499 | 212,499 | ||||
Five Finance Inc. | ||||||
5.31% - 5.37%, | 69,062 | 69,059 | ||||
General Electric Capital Corp. | ||||||
5.28% - 5.45%, | 111,562 | 111,573 | ||||
Granite Master Issuer PLC | ||||||
5.29%, 08/20/07e | 371,874 | 371,874 |
Security | Principal | Value | ||||
Harrier Finance Funding LLC | ||||||
5.29% - 5.36%, | $ | 138,124 | $ | 138,126 | ||
Hartford Life Global Funding Trust | ||||||
5.36% - 5.40%, | 159,374 | 159,385 | ||||
HBOS Treasury Services PLC | ||||||
5.46%, 01/24/08e | 106,250 | 106,250 | ||||
Holmes Financing PLC | ||||||
5.29%, 07/16/07e | 185,937 | 185,937 | ||||
JP Morgan Securities Inc. | ||||||
5.40%, 11/16/07 | 212,499 | 212,499 | ||||
JPMorgan Chase & Co. | ||||||
5.29% - 5.45%, | 292,186 | 292,186 | ||||
K2 USA LLC | ||||||
5.20% - 5.33%, | 79,687 | 79,685 | ||||
Kestrel Funding LLC | ||||||
5.30%, 07/11/07e | 42,500 | 42,498 | ||||
Kommunalkredit Austria AG | ||||||
5.32%, 02/08/08e | 63,750 | 63,750 | ||||
Leafs LLC | ||||||
5.32%, 01/22/08e | 102,942 | 102,942 | ||||
Links Finance LLC | ||||||
5.28% - 5.35%, | 116,875 | 116,872 | ||||
Lothian Mortgages MasterIssuer PLC | ||||||
5.29%, 04/24/07e | 37,458 | 37,458 | ||||
Marshall & Ilsley Bank | ||||||
5.32%, 02/15/08 | 58,437 | 58,437 | ||||
Master Funding LLC | ||||||
5.35%, | 192,283 | 192,283 | ||||
Merrill Lynch & Co. Inc. | ||||||
5.46%, 05/30/07h | 116,875 | 116,875 | ||||
Metropolitan Life Global Funding I | ||||||
5.33%, 03/06/08e | 159,374 | 159,374 | ||||
Metropolitan Life Insurance | ||||||
5.44%, 08/01/07e,h | 10,625 | 10,625 | ||||
Mound Financing PLC | ||||||
5.29%, 05/08/07e | 99,875 | 99,875 |
60 | 2007 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI SPAIN INDEX FUND
February 28, 2007
Security | Principal | Value | ||||
Natexis Banques Populaires | ||||||
5.33% - 5.35%, | $ | 169,999 | $ | 169,997 | ||
National City Bank of Indiana | ||||||
5.34%, 05/21/07 | 53,125 | 53,126 | ||||
Nationwide Building Society | ||||||
5.37% - 5.48%, | 350,624 | 350,663 | ||||
Newcastle Ltd. | ||||||
5.34%, | 106,515 | 106,501 | ||||
Northern Rock PLC | ||||||
5.38%, 02/01/08e | 127,500 | 127,502 | ||||
Northlake CDO I | ||||||
5.42%, 09/06/07e | 31,875 | 31,875 | ||||
Pricoa Global Funding I | ||||||
5.31%, 02/27/08e | 143,437 | 143,437 | ||||
Sedna Finance Inc. | ||||||
5.32% - 5.34%, | 154,062 | 154,061 | ||||
Skandinaviska Enskilda Banken | ||||||
5.32%, 02/15/08e | 106,250 | 106,250 | ||||
Strips III LLC | ||||||
5.37%, 07/24/07e | 21,620 | 21,620 | ||||
SunTrust Bank | ||||||
5.29%, 05/01/07 | 106,250 | 106,251 | ||||
Tango Finance Corp. | ||||||
5.27% - 5.34%, | 259,249 | 259,240 | ||||
Union Hamilton Special Funding LLC | ||||||
5.36% - 5.37%, | 175,312 | 175,312 | ||||
Wachovia Asset Securitization Inc. | ||||||
5.31%, 03/25/07e | 119,937 | 119,937 | ||||
Wachovia Bank N.A. | ||||||
5.36%, 05/22/07 | 212,499 | 212,499 | ||||
Wal-Mart Stores Inc. | ||||||
5.50%, 07/16/07e | 79,687 | 79,707 | ||||
Wells Fargo & Co. | ||||||
5.33%, 11/15/07e | 53,125 | 53,127 | ||||
WhistleJacket Capital Ltd. | ||||||
5.28% - 5.35%, | 79,687 | 79,688 |
Security | Principal | Value | |||||
White Pine Finance LLC | |||||||
5.28% - 5.32%, | $ | 318,749 | $ | 318,720 | |||
Wind MasterTrust | |||||||
5.31%, 07/25/07e | 42,500 | 42,500 | |||||
7,717,644 | |||||||
TOTAL SHORT-TERM INVESTMENTS | 14,834,932 | ||||||
TOTAL INVESTMENTS IN SECURITIES – 102.14% | 673,561,599 | ||||||
Other Assets, Less Liabilities – (2.14)% | (14,093,753 | ) | |||||
NET ASSETS – 100.00% | $ | 659,467,846 | |||||
a | Non-income earning security. |
b | All or a portion of this security represents a security on loan. See Note 5. |
c | Security valued at fair value in accordance with procedures approved by the Board of Directors. See Note 1. |
d | All or a portion of this security (these securities) represent(s) an investment of securities lending collateral. See Note 5. |
e | This security or a portion of these securities may be resold to qualified institutional buyers under Rule 144A or pursuant to Section 4(2) of the Securities Act of 1933. |
f | Affiliated issuer. See Note 2. |
g | The rate quoted is the annualized seven-day yield of the fund at period end. |
h | 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 financial statements.
SCHEDULESOF INVESTMENTS | 61 |
Table of Contents
Schedule of Investments (Unaudited)
iSHARES® MSCI SWEDEN INDEX FUND
February 28, 2007
Security | Shares | Value | |||
COMMON STOCKS – 100.02% | |||||
AGRICULTURE – 1.58% | |||||
Swedish Match AB | 348,565 | $ | 6,010,983 | ||
6,010,983 | |||||
AIRLINES – 0.40% | |||||
SAS ABa | 85,503 | 1,520,191 | |||
1,520,191 | |||||
AUTO MANUFACTURERS – 9.65% | |||||
Scania AB Class B | 115,920 | 8,541,326 | |||
Volvo AB Class A | 109,877 | 8,691,128 | |||
Volvo AB Class B | 252,287 | 19,380,279 | |||
36,612,733 | |||||
BANKS – 18.42% | |||||
Nordea Bank AB | 2,406,145 | 36,487,138 | |||
Skandinaviska Enskilda | 538,223 | 16,453,789 | |||
Svenska Handelsbanken | 590,870 | 16,968,497 | |||
69,909,424 | |||||
COMMERCIAL SERVICES – 2.02% | |||||
Securitas AB Class B | 363,055 | 5,420,044 | |||
Securitas Direct AB Class Ba | 365,775 | 1,058,246 | |||
Securitas Systems AB Class Ba | 361,795 | 1,196,264 | |||
7,674,554 | |||||
COSMETICS & PERSONAL CARE – 0.49% | |||||
Oriflame Cosmetics SA | 48,152 | 1,856,342 | |||
1,856,342 | |||||
DIVERSIFIED FINANCIAL SERVICES – 0.84% | |||||
D. Carnegie & Co. AB | 71,812 | 1,507,054 | |||
OMX AB | 88,920 | 1,685,495 | |||
3,192,549 | |||||
ENGINEERING & CONSTRUCTION – 2.37% | |||||
Skanska AB Class B | 436,793 | 8,979,825 | |||
8,979,825 | |||||
FOOD – 0.36% | |||||
Axfood AB | 34,948 | 1,369,719 | |||
1,369,719 | |||||
FOREST PRODUCTS & PAPER – 3.81% | |||||
Billerud AB | 49,433 | 725,656 |
Security | Shares | Value | |||
Holmen AB Class B | 61,502 | $ | 2,506,869 | ||
Svenska Cellulosa AB Class B | 217,350 | 11,244,565 | |||
14,477,090 | |||||
HAND & MACHINE TOOLS – 4.83% | |||||
Sandvik AB | 1,169,182 | 18,329,524 | |||
18,329,524 | |||||
HEALTH CARE - PRODUCTS – 1.69% | |||||
Elekta AB Class B | 99,689 | 2,131,154 | |||
Getinge AB Class B | 207,690 | 4,292,003 | |||
6,423,157 | |||||
HOME FURNISHINGS – 2.44% | |||||
Electrolux AB Series B | 312,244 | 6,986,668 | |||
Nobia AB | 56,838 | 2,280,308 | |||
9,266,976 | |||||
HOUSEHOLD PRODUCTS & WARES – 1.26% | |||||
Husqvarna ABa | 309,281 | 4,782,548 | |||
4,782,548 | |||||
IRON & STEEL – 1.76% | |||||
SSAB Svenskt Stal AB Class A | 175,490 | 4,714,548 | |||
SSAB Svenskt Stal AB Class B | 76,804 | 1,964,829 | |||
6,679,377 | |||||
MACHINERY – 5.13% | |||||
Atlas Copco AB Class A | 389,298 | 12,233,962 | |||
Atlas Copco AB Class B | 242,466 | 7,222,266 | |||
19,456,228 | |||||
MANUFACTURING – 2.08% | |||||
Alfa Laval AB | 110,124 | 5,493,213 | |||
Trelleborg AB Class B | 94,997 | 2,396,401 | |||
7,889,614 | |||||
MEDIA – 1.49% | |||||
Eniro AB | 201,250 | 2,366,280 | |||
Modern Times Group MTG AB | 59,248 | 3,272,064 | |||
5,638,344 | |||||
METAL FABRICATE & HARDWARE – 4.57% | |||||
Assa Abloy AB Class B | 362,250 | 7,821,632 | |||
Hoganas AB Class Bb | 30,429 | 754,594 | |||
SKF AB | 470,603 | 8,752,691 | |||
17,328,917 |
62 | 2007 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI SWEDEN INDEX FUND
February 28, 2007
Security | Shares or Principal | Value | ||||
MINING – 1.86% | ||||||
Boliden AB | 335,524 | $ | 7,077,203 | |||
7,077,203 | ||||||
OIL & GAS – 0.69% | ||||||
Lundin Petroleum ABa | 255,507 | 2,621,873 | ||||
2,621,873 | ||||||
REAL ESTATE – 2.20% | ||||||
Castellum AB | 180,159 | 2,439,248 | ||||
Fabege AB | 93,065 | 2,500,196 | ||||
Kungsleden AB | 157,793 | 2,653,665 | ||||
Wihlborgs Fastigheter AB | 37,740 | 740,918 | ||||
8,334,027 | ||||||
RETAIL – 7.55% | ||||||
Hennes & Mauritz AB Class B | 550,459 | 28,674,030 | ||||
28,674,030 | ||||||
SOFTWARE – 0.14% | ||||||
Telelogic ABa | 285,672 | 549,639 | ||||
549,639 | ||||||
TELECOMMUNICATIONS – 22.39% | ||||||
Tele2 AB Class B | 376,318 | 5,658,272 | ||||
Telefonaktiebolaget LM | 17,187,877 | 61,118,004 | ||||
TeliaSonera AB | 2,168,348 | 18,232,968 | ||||
85,009,244 | ||||||
TOTAL COMMON STOCKS | 379,664,111 | |||||
SHORT-TERM INVESTMENTS – 0.09% | ||||||
CERTIFICATES OF DEPOSITc– 0.00% | ||||||
Credit Suisse First Boston NY | ||||||
5.28% - 5.43%, | $ | 3,023 | 3,023 | |||
Deutsche Bank AG | ||||||
5.35%, 08/08/07 | 5,038 | 5,038 | ||||
Washington Mutual Bank | ||||||
5.33%, 03/19/07 | 5,038 | 5,038 | ||||
13,099 |
Security | Principal | Value | ||||
COMMERCIAL PAPERc – 0.02% | ||||||
Amstel Funding Corp. | ||||||
5.22%, 04/16/07 - 04/17/07d | $ | 1,916 | $ | 1,892 | ||
BNP Paribas Finance Inc. | ||||||
5.12%, 06/06/07 | 705 | 696 | ||||
Bryant Park Funding LLC | ||||||
5.27%, 03/06/07d | 497 | 496 | ||||
Cantabric Finance LLC | ||||||
5.25%, 03/06/07d | 1,612 | 1,611 | ||||
Cheyne Finance LLC | ||||||
5.24%, 04/12/07 - 04/23/07d | 1,511 | 1,501 | ||||
Concord Minutemen Capital Co. LLC | ||||||
5.29%, 03/19/07d | 1,027 | 1,024 | ||||
Crown Point Capital Co. LLC | ||||||
5.20%, 07/18/07d | 2,328 | 2,281 | ||||
Edison Asset Securitization LLC | ||||||
5.21%, 04/11/07d | 835 | 830 | ||||
Five Finance Inc. | ||||||
5.22%, 04/20/07d | 927 | 920 | ||||
General Electric Capital Corp. | ||||||
5.12% - 5.20%, | 3,526 | 3,466 | ||||
Giro Funding Corp. | ||||||
5.25%, 03/05/07 - 03/12/07d | 3,305 | 3,301 | ||||
Grampian Funding LLC | ||||||
5.14% - 5.23%, | 3,929 | 3,881 | ||||
Harrier Finance Funding LLC | ||||||
5.12%, 06/06/07d | 2,015 | 1,987 | ||||
Irish Permanent Treasury PLC | ||||||
5.18%, 07/10/07 | 1,008 | 989 | ||||
KKR Pacific Funding Trust | ||||||
5.29%, 03/13/07d | 2,519 | 2,514 | ||||
Lexington Parker Capital Co. LLC | ||||||
5.18% - 5.20%, | 2,546 | 2,502 | ||||
Liberty Street Funding Corp. | ||||||
5.27%, 03/06/07d | 242 | 242 |
SCHEDULESOF INVESTMENTS | 63 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI SWEDEN INDEX FUND
February 28, 2007
Security | Principal | Value | ||||
Lockhart Funding LLC | ||||||
5.25%, 05/04/07 - 05/14/07d | $ | 4,546 | $ | 4,502 | ||
Nationwide Building Society | ||||||
5.21%, 04/13/07d | 1,914 | 1,902 | ||||
Nestle Capital Corp. | ||||||
5.19%, 08/09/07 | 1,209 | 1,181 | ||||
Sedna Finance Inc. | ||||||
5.22%, 04/17/07d | 1,149 | 1,141 | ||||
Simba Funding Corp. | ||||||
5.20%, 07/23/07d | 2,015 | 1,973 | ||||
Societe Generale | ||||||
5.18%, 05/16/07 | 5,038 | 4,982 | ||||
Thames Asset Global | ||||||
5.25% - 5.28%, | 7,676 | 7,668 | ||||
Thornburg Mortgage Capital Resources LLC | ||||||
5.28%, 03/12/07d | 1,475 | 1,473 | ||||
Three Pillars Funding Corp. | ||||||
5.26%, 03/01/07 - 03/12/07d | 1,058 | 1,057 | ||||
Tulip Funding Corp. | ||||||
5.29%, 03/15/07d | 3,868 | 3,860 | ||||
Westpac Banking Corp. | ||||||
5.20%, 07/12/07d | 1,814 | 1,779 | ||||
Zela Finance Inc. | ||||||
5.20%, 07/16/07d | 1,209 | 1,185 | ||||
62,836 | ||||||
MEDIUM-TERM NOTESc – 0.00% | ||||||
Bank of America N.A. | ||||||
5.28%, 04/20/07 | 504 | 504 | ||||
Cullinan Finance Corp. | ||||||
5.71%, 06/28/07d | 1,511 | 1,511 | ||||
K2 USA LLC | ||||||
5.39%, 06/04/07d | 1,511 | 1,511 | ||||
Sigma Finance Inc. | ||||||
5.13% - 5.51%, | 2,357 | 2,357 | ||||
5,883 |
Security | Shares or Principal | Value | ||||
MONEY MARKET FUNDS – 0.02% | ||||||
Barclays Global Investors Funds | 85,613 | $ | 85,613 | |||
85,613 | ||||||
REPURCHASE AGREEMENTSc – 0.01% | ||||||
Banc of America Securities LLC | $ | 4,030 | 4,030 | |||
BearStearns Companies Inc. (The) | 3,023 | 3,023 | ||||
BNP Securities Corp. | 202 | 202 | ||||
Citigroup Global Markets Holdings Inc. | 3,023 | 3,023 | ||||
Citigroup Global Markets Holdings Inc. | 4,030 | 4,030 |
64 | 2007 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI SWEDEN INDEX FUND
February 28, 2007
Security | Principal | Value | ||||
Citigroup Global Markets Holdings Inc. 5.42%, due 3/1/07, maturity value $2,217 (collateralized by non-U.S. Government debt securities, value $2,389, 0.00% to 10.00%, 5/27/33 to 8/25/46). | $ | 2,217 | $ | 2,217 | ||
Citigroup Global Markets Holdings Inc. 5.46%, due 3/1/07, maturity value $1,209 (collateralized by non-U.S. Government debt securities, value $1,347, 0.00% to 10.00%, 5/27/33 to 2/28/37). | 1,209 | 1,209 | ||||
Goldman Sachs Group Inc. (The) | 748 | 748 | ||||
Greenwich Capital Markets Inc. | 8,463 | 8,463 | ||||
HSBC Securities Inc. | 1,008 | 1,008 | ||||
JP Morgan Securities Inc. | 504 | 504 |
Security | Principal | Value | ||||
Merrill Lynch & Co. Inc. | $ | 2,015 | $ | 2,015 | ||
Morgan Stanley | 2,015 | 2,015 | ||||
Morgan Stanley | 1,410 | 1,410 | ||||
Wachovia Capital | 4,433 | 4,433 | ||||
38,330 | ||||||
TIME DEPOSITSc – 0.00% | ||||||
Bank of Nova Scotia | ||||||
5.30%, 03/02/07 | 845 | 845 | ||||
Chase Bank USA N.A. | ||||||
5.38%, 03/01/07 | 3,023 | 3,023 | ||||
Citibank N.A. | ||||||
5.47%, 03/01/07 | 3,023 | 3,023 | ||||
Deutsche Bank AG | ||||||
5.38%, 03/01/07 | 4,733 | 4,733 | ||||
11,624 |
SCHEDULESOF INVESTMENTS | 65 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI SWEDEN INDEX FUND
February 28, 2007
Security | Principal | Value | ||||
VARIABLE & FLOATING RATE NOTESc– 0.04% | ||||||
Allstate Life Global Funding II | ||||||
5.30% - 5.40%, | $ | 5,158 | $ | 5,160 | ||
American Express Centurion Bank | ||||||
5.41%, 07/19/07 | 2,217 | 2,218 | ||||
American Express Credit Corp. | ||||||
5.42%, 03/05/08 | 605 | 605 | ||||
AmeriCredit Automobile Receivables Trust | ||||||
5.35%, 03/06/07 | 92 | 92 | ||||
Arkle Master Issuer PLC | ||||||
Series 2006-1A Class 1A | ||||||
5.30%, 11/19/07d | 1,511 | 1,511 | ||||
ASIF Global Financing | ||||||
5.40%, 05/03/07d | 202 | 202 | ||||
Australia & New Zealand Banking Group Ltd. | ||||||
5.32%, 02/22/08d | 1,310 | 1,310 | ||||
Bank of Ireland | ||||||
5.30% - 5.32%, | 2,922 | 2,921 | ||||
Beta Finance Inc. | ||||||
5.29% - 5.41%, | 5,138 | 5,139 | ||||
BMW US Capital LLC | ||||||
5.32%, 01/15/08d | 2,015 | 2,015 | ||||
BNP Paribas | ||||||
5.33%, 11/19/07d | 3,728 | 3,728 | ||||
Brigantine High Grade Funding Ltd. | ||||||
5.40%, 09/05/07d | 1,934 | 1,934 | ||||
Carlyle Loan Investment Ltd. | ||||||
5.37%, 04/13/07 - 07/15/07d | 1,471 | 1,471 | ||||
CC USA Inc. | ||||||
5.36%, 07/30/07d | 1,008 | 1,008 | ||||
Commodore CDO Ltd. | ||||||
5.44%, 12/12/07d | 504 | 504 | ||||
Credit Agricole SA | ||||||
5.33%, 11/23/07 | 2,015 | 2,015 | ||||
Credit Suisse First Boston NY | ||||||
5.36%, 04/24/07 | 1,008 | 1,008 | ||||
Cullinan Finance Corp. | ||||||
5.36%, 04/25/07d | 504 | 504 |
Security | Principal | Value | ||||
DaimlerChrysler Auto Trust | ||||||
Series 2006-C Class A1 | ||||||
5.33%, 10/08/07d | $ | 155 | $ | 155 | ||
DEPFA Bank PLC | ||||||
5.40%, 12/14/07d | 2,015 | 2,015 | ||||
Dorada Finance Inc. | ||||||
5.33% - 5.41%, | 2,317 | 2,317 | ||||
Eli Lilly Services Inc. | ||||||
5.31%, 03/01/07d | 1,345 | 1,345 | ||||
Fifth Third Bancorp | ||||||
5.32%, 02/22/08d | 4,030 | 4,030 | ||||
Five Finance Inc. | ||||||
5.31% - 5.37%, | 1,310 | 1,310 | ||||
General Electric Capital Corp. | ||||||
5.28% - 5.45%, | 2,116 | 2,116 | ||||
Granite Master Issuer PLC | ||||||
5.29%, 08/20/07d | 7,053 | 7,053 | ||||
Harrier Finance Funding LLC | ||||||
5.29% - 5.36%, | 2,620 | 2,620 | ||||
Hartford Life Global Funding Trust | ||||||
5.36% - 5.40%, | 3,023 | 3,023 | ||||
HBOS Treasury Services PLC | ||||||
5.46%, 01/24/08d | 2,015 | 2,015 | ||||
Holmes Financing PLC | ||||||
5.29%, 07/16/07d | 3,526 | 3,526 | ||||
JP Morgan Securities Inc. | ||||||
5.40%, 11/16/07 | 4,030 | 4,030 | ||||
JPMorgan Chase & Co. | ||||||
5.29% - 5.45%, | 5,541 | 5,541 | ||||
K2 USA LLC | ||||||
5.20% - 5.33%, | 1,511 | 1,511 | ||||
Kestrel Funding LLC | ||||||
5.30%, 07/11/07d | 806 | 806 | ||||
Kommunalkredit Austria AG | ||||||
5.32%, 02/08/08d | 1,209 | 1,209 | ||||
Leafs LLC | ||||||
5.32%, 01/22/08d | 1,952 | 1,952 |
66 | 2007 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI SWEDEN INDEX FUND
February 28, 2007
Security | Principal | Value | ||||
Links Finance LLC | ||||||
5.28% - 5.35%, | $ | 2,217 | $ | 2,217 | ||
Lothian Mortgages Master Issuer PLC | ||||||
5.29%, 04/24/07d | 710 | 710 | ||||
Marshall & Ilsley Bank | ||||||
5.32%, 02/15/08 | 1,108 | 1,108 | ||||
Master Funding LLC | ||||||
5.35%, 04/25/07 - 05/25/07d | 3,647 | 3,647 | ||||
Merrill Lynch & Co. Inc. | ||||||
5.46%, 05/30/07g | 2,217 | 2,217 | ||||
Metropolitan Life Global Funding I | ||||||
5.33%, 03/06/08d | 3,023 | 3,023 | ||||
Metropolitan Life Insurance Funding Agreement | ||||||
5.44%, 08/01/07d,g | 202 | 202 | ||||
Mound Financing PLC | ||||||
5.29%, 05/08/07d | 1,894 | 1,894 | ||||
Natexis Banques Populaires | ||||||
5.33% - 5.35%, | 3,224 | 3,224 | ||||
National City Bank of Indiana | ||||||
5.34%, 05/21/07 | 1,008 | 1,008 | ||||
Nationwide Building Society | ||||||
5.37% - 5.48%, | 6,650 | 6,651 | ||||
Newcastle Ltd. | ||||||
5.34%, 04/24/07 - 01/24/08d | 2,020 | 2,020 | ||||
Northern Rock PLC | ||||||
5.38%, 02/01/08d | 2,418 | 2,418 | ||||
Northlake CDO I | ||||||
5.42%, 09/06/07d | 605 | 604 | ||||
Pricoa Global Funding I | ||||||
5.31%, 02/27/08d | 2,720 | 2,720 | ||||
Sedna Finance Inc. | ||||||
5.32% - 5.34%, | 2,922 | 2,922 | ||||
Skandinaviska Enskilda Banken | ||||||
5.32%, 02/15/08d | 2,015 | 2,015 | ||||
Strips III LLC | ||||||
5.37%, 07/24/07d | 410 | 410 | ||||
SunTrust Bank | ||||||
5.29%, 05/01/07 | 2,015 | 2,015 |
Security | Principal | Value | |||||
Tango Finance Corp. | |||||||
5.27% - 5.34%, | $ | 4,917 | $ | 4,916 | |||
Union Hamilton Special Funding LLC | |||||||
5.36% - 5.37%, | 3,325 | 3,325 | |||||
Wachovia Asset Securitization Inc. | |||||||
5.31%, 03/25/07d | 2,275 | 2,275 | |||||
Wachovia Bank N.A. | |||||||
5.36%, 05/22/07 | 4,030 | 4,030 | |||||
Wal-Mart Stores Inc. | |||||||
5.50%, 07/16/07d | 1,511 | 1,512 | |||||
Wells Fargo & Co. | |||||||
5.33%, 11/15/07d | 1,008 | 1,008 | |||||
WhistleJacket Capital Ltd. | |||||||
5.28% - 5.35%, | 1,511 | 1,511 | |||||
White Pine Finance LLC | |||||||
5.28% - 5.32%, | 6,045 | 6,045 | |||||
Wind MasterTrust | |||||||
5.31%, 07/25/07d | 806 | 806 | |||||
146,372 | |||||||
TOTAL SHORT-TERM INVESTMENTS | 363,757 | ||||||
TOTAL INVESTMENTS IN SECURITIES – 100.11% | 380,027,868 | ||||||
Other Assets, Less Liabilities – (0.11)% | (427,810 | ) | |||||
NET ASSETS – 100.00% | $ | 379,600,058 | |||||
a | Non-income earning security. |
b | All or a portion of this security represents a security on loan. See Note 5. |
c | All or a portion of this security (these securities) represent(s) an investment of securities lending collateral. See Note 5. |
d | This security or a portion of these securities may be resold to qualified institutional buyers under Rule 144A or pursuant to Section 4(2) of the Securities Act of 1933. |
e | Affiliated issuer. See Note 2. |
f | The rate quoted is the annualized seven-day yield of the fund at period end. |
g | 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 financial statements.
SCHEDULESOF INVESTMENTS | 67 |
Table of Contents
Schedule of Investments (Unaudited)
iSHARES® MSCI SWITZERLAND INDEX FUND
February 28, 2007
Security | Shares | Value | |||
COMMON STOCKS – 99.75% | |||||
BANKS – 6.66% | |||||
Banque Cantonale Vaudoise | 1,496 | $ | 708,064 | ||
Credit Suisse Group Registered | 178,378 | 12,342,729 | |||
Julius Baer Holding AG | 22,208 | 2,802,369 | |||
Vontobel Holding AG Registered | 35,880 | 1,712,909 | |||
17,566,071 | |||||
BUILDING MATERIALS – 3.89% | |||||
Geberit AG Registered | 1,218 | 2,008,723 | |||
Holcim Ltd. Registered | 83,192 | 8,249,714 | |||
10,258,437 | |||||
CHEMICALS – 6.33% | |||||
Ciba Specialty Chemicals | 29,774 | 1,890,742 | |||
Clariant AG Registereda | 55,982 | 875,578 | |||
Givaudan SA Registered | 5,421 | 4,811,959 | |||
Lonza Group AG Registered | 13,589 | 1,207,342 | |||
Syngenta AG Registereda | 44,905 | 7,916,841 | |||
16,702,462 | |||||
COMMERCIAL SERVICES – 1.97% | |||||
Adecco SA Registered | 39,640 | 2,638,988 | |||
SGS SA Registered | 2,262 | 2,552,437 | |||
5,191,425 | |||||
COMPUTERS – 0.38% | |||||
Logitech International | 38,770 | 1,014,331 | |||
1,014,331 | |||||
DIVERSIFIED FINANCIAL SERVICES – 10.73% | |||||
UBS AG Registered | 478,181 | 28,290,679 | |||
28,290,679 | |||||
ENGINEERING & CONSTRUCTION – 3.81% | |||||
ABB Ltd. Registered | 600,464 | 10,055,264 | |||
10,055,264 | |||||
FOOD – 13.43% | |||||
Nestle SA Registered | 95,286 | 35,424,045 | |||
35,424,045 | |||||
HAND & MACHINE TOOLS – 0.86% | |||||
Schindler Holding AG | |||||
Participation Certificates | 27,148 | 1,711,756 |
Security | Shares | Value | |||
Schindler Holding AG Registered | 8,710 | $ | 550,973 | ||
2,262,729 | |||||
HEALTH CARE - PRODUCTS – 5.70% | |||||
Nobel Biocare Holding AG | 15,061 | 4,988,679 | |||
Phonak Holding AG Registered | 28,932 | 2,184,352 | |||
Straumann Holding AG Registered | 7,144 | 1,876,382 | |||
Synthes Inc. | 47,915 | 5,987,413 | |||
15,036,826 | |||||
INSURANCE – 9.39% | |||||
Swiss Reinsurance Co. Registered | 139,221 | 11,856,358 | |||
Zurich Financial Services AG Registered | 45,179 | 12,911,457 | |||
24,767,815 | |||||
LEISURE TIME – 0.05% | |||||
Kuoni Reisen Holding | 227 | 130,118 | |||
130,118 | |||||
MACHINERY – 0.42% | |||||
Rieter Holding AG | 1,247 | 629,525 | |||
SIG Holding AGa | 1,392 | 467,344 | |||
1,096,869 | |||||
MANUFACTURING – 0.55% | |||||
Sulzer AG Registered | 1,190 | 1,447,060 | |||
1,447,060 | |||||
PHARMACEUTICALS – 24.00% | |||||
Novartis AG Registered | 553,828 | 30,770,742 | |||
Roche Holding AG | 182,727 | 32,529,356 | |||
63,300,098 | |||||
REAL ESTATE – 1.46% | |||||
PSP Swiss Property AGa | 67,694 | 3,844,234 | |||
3,844,234 | |||||
RETAIL – 6.38% | |||||
Compagnie Financiere Richemont AG Class A | 183,282 | 10,100,621 | |||
Swatch Group (The) AG Class B | 16,082 | 3,921,074 | |||
Swatch Group (The) AG Registered | 56,980 | 2,801,874 | |||
16,823,569 | |||||
SEMICONDUCTORS – 0.34% | |||||
OC Oerlikon Corp. AG Registereda | 1,803 | 899,138 | |||
899,138 |
68 | 2007 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI SWITZERLAND INDEX FUND
February 28, 2007
Security | Principal | Value | |||
TELECOMMUNICATIONS – 2.78% | |||||
Swisscom AG Registered | 19,513 | $ | 7,318,174 | ||
7,318,174 | |||||
TRANSPORTATION – 0.62% | |||||
Kuehne & Nagel International AG Registered | 21,451 | 1,633,592 | |||
1,633,592 | |||||
TOTAL COMMON STOCKS | 263,062,936 | ||||
SHORT-TERM INVESTMENTS – 0.06% | |||||
MONEY MARKET FUNDS – 0.06% | |||||
Barclays Global Investors Funds Institutional Money Market Fund, Institutional Shares 5.30%b,c | 158,908 | 158,908 | |||
158,908 | |||||
TOTAL SHORT-TERM INVESTMENTS | 158,908 | ||||
TOTAL INVESTMENTS IN SECURITIES – 99.81% | 263,221,844 | ||||
Other Assets, Less Liabilities – 0.19% | 501,154 | ||||
NET ASSETS – 100.00% | $ | 263,722,998 | |||
a | Non-income earning security. |
b | Affiliated issuer. See Note 2. |
c | The rate quoted is the annualized seven-day yield of the fund at period end. |
See notes to financial statements.
SCHEDULESOF INVESTMENTS | 69 |
Table of Contents
Schedule of Investments (Unaudited)
iSHARES® MSCI UNITED KINGDOM INDEX FUND
February 28, 2007
Security | Shares | Value | |||
COMMON STOCKS – 99.60% | |||||
ADVERTISING – 0.64% | |||||
Aegis Group PLC | 298,818 | $ | 835,956 | ||
WPP Group PLC | 423,617 | 6,135,056 | |||
6,971,012 | |||||
AEROSPACE & DEFENSE – 1.79% | |||||
BAE Systems PLC | 1,155,619 | 9,868,536 | |||
BBA Aviation PLC | 144,458 | 774,283 | |||
Cobham PLC | 399,438 | 1,553,855 | |||
Meggitt PLC | 153,738 | 1,012,328 | |||
Rolls-Royce Group PLCa | 635,778 | 6,120,808 | |||
19,329,810 | |||||
AGRICULTURE – 2.97% | |||||
British American Tobacco PLC | 554,815 | 16,842,257 | |||
Gallaher Group PLC | 235,921 | 5,210,641 | |||
Imperial Tobacco Group PLC | 240,890 | 10,008,185 | |||
32,061,083 | |||||
AIRLINES – 0.20% | |||||
British Airways PLCa | 202,454 | 2,128,613 | |||
2,128,613 | |||||
APPAREL – 0.18% | |||||
Burberry Group PLC | 157,248 | 1,946,073 | |||
1,946,073 | |||||
AUTO PARTS & EQUIPMENT – 0.16% | |||||
GKN PLC | 251,691 | 1,696,785 | |||
TI Automotive Ltd. Class Aa,b | 52,283 | 1 | |||
1,696,786 | |||||
BANKS – 18.69% | |||||
Barclays PLCc | 2,332,309 | 33,823,495 | |||
HBOS PLC | 1,351,486 | 28,631,092 | |||
HSBC Holdings PLC | 4,146,580 | 72,404,978 | |||
Lloyds TSB Group PLC | 2,018,014 | 22,700,569 | |||
Royal Bank of Scotland Group PLC | 1,130,572 | 44,512,177 | |||
202,072,311 | |||||
BEVERAGES – 2.71% | |||||
Diageo PLC | 978,744 | 19,267,250 | |||
SABMiller PLC | 322,075 | 7,119,784 | |||
Scottish & Newcastle PLC | 283,842 | 2,928,706 | |||
29,315,740 |
Security | Shares | Value | |||
BUILDING MATERIALS – 0.53% | |||||
Hanson PLC | 256,269 | $ | 4,085,586 | ||
Travis Perkins PLC | 42,313 | 1,622,801 | |||
5,708,387 | |||||
CHEMICALS – 0.58% | |||||
Imperial Chemical Industries PLC | 429,225 | 3,879,914 | |||
Johnson Matthey PLC | 78,038 | 2,358,257 | |||
6,238,171 | |||||
COMMERCIAL SERVICES – 1.85% | |||||
Aggreko PLC | 90,090 | 767,568 | |||
Bunzl PLC | 123,213 | 1,591,266 | |||
Capita Group PLC | 223,304 | 2,831,401 | |||
Davis Service Group PLC (The) | 60,372 | 611,683 | |||
De La Rue PLC | 58,500 | 778,442 | |||
Experian Group Ltd. | 366,265 | 4,274,427 | |||
Group 4 Securicor PLC | 405,522 | 1,468,248 | |||
Hays PLC | 519,246 | 1,506,037 | |||
Intertek Group PLC | 54,990 | 929,487 | |||
Michael Page International PLC | 119,340 | 1,123,777 | |||
Rank Group PLC | 206,622 | 906,025 | |||
Rentokil Initial PLC | 643,500 | 1,869,579 | |||
Serco Group PLC | 166,842 | 1,395,339 | |||
20,053,279 | |||||
COMPUTERS – 0.16% | |||||
LogicaCMG PLC | 524,303 | 1,741,617 | |||
1,741,617 | |||||
DISTRIBUTION & WHOLESALE – 0.70% | |||||
Inchcape PLC | 162,504 | 1,667,176 | |||
Wolseley PLC | 235,638 | 5,906,314 | |||
7,573,490 | |||||
DIVERSIFIED FINANCIAL SERVICES – 1.85% | |||||
AMVESCAP PLC | 267,747 | 3,153,550 | |||
Cattles PLC | 117,000 | 995,122 | |||
Close Brothers Group PLC | 46,566 | 944,517 | |||
Collins Stewart PLCa | 79,095 | 353,415 | |||
ICAP PLC | 171,756 | 1,585,380 | |||
Investec PLC | 123,369 | 1,489,318 | |||
London Stock Exchange Group PLC | 56,814 | 1,405,126 | |||
Man Group PLC | 643,144 | 6,919,604 | |||
Provident Financial PLC | 90,924 | 1,307,011 | |||
Schroders PLC | 43,758 | 942,445 | |||
Tullett Prebon PLCa | 79,095 | 961,040 | |||
20,056,528 |
70 | 2007 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI UNITED KINGDOM INDEX FUND
February 28, 2007
Security | Shares | Value | |||
ELECTRIC – 3.24% | |||||
International Power PLC | 535,132 | $ | 3,827,846 | ||
National Grid PLC | 974,113 | 14,565,807 | |||
Scottish & Southern Energy PLC | 307,666 | 8,664,369 | |||
Scottish Power PLC | 532,155 | 7,978,114 | |||
35,036,136 | |||||
ELECTRONICS – 0.12% | |||||
Electrocomponents PLC | 153,738 | 798,413 | |||
Premier Farnell PLC | 128,232 | 453,601 | |||
1,252,014 | |||||
ENGINEERING & CONSTRUCTION – 0.22% | |||||
AMEC PLC | 118,404 | 1,071,455 | |||
Balfour Beatty PLC | 152,409 | 1,354,530 | |||
2,425,985 | |||||
ENTERTAINMENT – 0.46% | |||||
EMI Group PLC | 289,864 | 1,367,607 | |||
Ladbrokes PLC | 225,810 | 1,785,613 | |||
PartyGaming PLC | 356,578 | 255,063 | |||
William Hill PLC | 128,018 | 1,589,346 | |||
4,997,629 | |||||
ENVIRONMENTAL CONTROL – 0.08% | |||||
Biffa PLC | 127,807 | 813,401 | |||
813,401 | |||||
FOOD – 4.73% | |||||
Cadbury Schweppes PLC | 748,477 | 7,994,212 | |||
J Sainsbury PLC | 522,990 | 5,239,953 | |||
Tate & Lyle PLC | 173,628 | 1,910,602 | |||
Tesco PLC | 2,851,498 | 24,141,124 | |||
Unilever PLC | 445,792 | 11,890,252 | |||
51,176,143 | |||||
FOOD SERVICE – 0.40% | |||||
Compass Group PLC | 733,707 | 4,356,783 | |||
4,356,783 | |||||
GAS – 0.89% | |||||
Centrica PLC | 1,311,142 | 9,616,393 | |||
9,616,393 | |||||
HEALTH CARE - PRODUCTS – 0.40% | |||||
Smith & Nephew PLC | 334,697 | 3,889,620 | |||
SSL International PLC | 66,924 | 483,631 | |||
4,373,251 |
Security | Shares | Value | |||
HOLDING COMPANIES - DIVERSIFIED – 0.14% | |||||
Tomkins PLC | 308,880 | $ | 1,554,179 | ||
1,554,179 | |||||
HOME BUILDERS – 1.02% | |||||
Barratt Developments PLC | 86,112 | 1,987,969 | |||
Bellway PLC | 40,248 | 1,166,576 | |||
Berkeley Group Holdings (The) PLCa | 32,058 | 956,835 | |||
Bovis Homes Group PLC | 42,588 | 868,838 | |||
Persimmon PLC | 102,048 | 2,791,840 | |||
TaylorWoodrow PLC | 204,984 | 1,633,985 | |||
Wimpey (George) PLC | 140,868 | 1,570,816 | |||
10,976,859 | |||||
HOME FURNISHINGS – 0.05% | |||||
Galiform PLCa | 210,132 | 524,023 | |||
524,023 | |||||
HOUSEHOLD PRODUCTS & WARES – 1.02% | |||||
Reckitt Benckiser PLC | 219,040 | 11,006,320 | |||
11,006,320 | |||||
INSURANCE – 4.91% | |||||
Aviva PLC | 918,052 | 14,717,067 | |||
Friends Provident PLC | 608,166 | 2,455,218 | |||
Legal & General Group PLC | 2,337,392 | 7,168,802 | |||
Old Mutual PLC | 1,868,022 | 6,452,259 | |||
Prudential PLC | 875,425 | 11,554,661 | |||
Resolution PLC | 243,935 | 3,002,164 | |||
Royal & Sun Alliance | 1,082,718 | 3,257,050 | |||
Standard Life PLCa | 756,756 | 4,471,404 | |||
53,078,625 | |||||
IRON & STEEL – 0.35% | |||||
Corus Group PLC | 319,681 | 3,774,631 | |||
3,774,631 | |||||
LEISURE TIME – 0.35% | |||||
Carnival PLC | 60,953 | 2,896,727 | |||
First Choice Holidays PLC | 177,138 | 877,412 | |||
3,774,139 | |||||
LODGING – 0.28% | |||||
InterContinental Hotels | 128,717 | 3,027,038 | |||
3,027,038 |
SCHEDULESOF INVESTMENTS | 71 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI UNITED KINGDOM INDEX FUND
February 28, 2007
Security | Shares | Value | |||
MANUFACTURING – 0.85% | |||||
Charter PLCa | 58,734 | $ | 989,319 | ||
Cookson Group PLC | 71,761 | 824,113 | |||
FKI PLC | 205,920 | 443,907 | |||
IMI PLC | 120,603 | 1,206,576 | |||
Invensys PLCa | 282,906 | 1,570,409 | |||
Smiths Group PLC | 204,203 | 4,121,924 | |||
9,156,248 | |||||
MEDIA – 2.74% | |||||
British Sky Broadcasting Group PLC | 409,266 | 4,467,469 | |||
Daily Mail & General Trust PLC Class A | 107,803 | 1,635,206 | |||
Emap PLC | 76,050 | 1,076,807 | |||
ITV PLC | 1,412,190 | 3,037,374 | |||
Pearson PLC | 289,266 | 4,478,423 | |||
Reed Elsevier PLC | 452,556 | 5,263,732 | |||
Reuters Group PLC | 464,022 | 3,962,567 | |||
Trinity Mirror PLC | 108,010 | 1,038,254 | |||
United Business Media PLC | 102,886 | 1,429,563 | |||
Yell Group PLC | 279,447 | 3,280,401 | |||
29,669,796 | |||||
MINING – 6.61% | |||||
Anglo American PLC | 510,736 | 24,182,103 | |||
BHP Billiton PLC | 855,919 | 17,134,511 | |||
Rio Tinto PLC | 369,088 | 19,790,041 | |||
Xstrata PLC | 219,684 | 10,311,091 | |||
71,417,746 | |||||
OIL & GAS – 15.07% | |||||
BG Group PLC | 1,220,938 | 16,557,714 | |||
BP PLC | 6,977,536 | 71,379,461 | |||
Royal Dutch Shell PLC Class A | 1,329,625 | 43,046,702 | |||
Royal Dutch Shell PLC Class B | 988,666 | 31,911,254 | |||
162,895,131 | |||||
PACKAGING& CONTAINERS – 0.19% | |||||
Rexam PLC | 208,231 | 2,056,727 | |||
2,056,727 | |||||
PHARMACEUTICALS – 8.20% | |||||
AstraZeneca PLC | 550,371 | 30,890,805 | |||
GlaxoSmithKline PLC | 2,059,741 | 57,723,057 | |||
88,613,862 |
Security | Shares | Value | |||
REAL ESTATE – 2.01% | |||||
British Land Co. PLC | 186,220 | $ | 5,470,520 | ||
Brixton PLC | 90,792 | 869,186 | |||
Great Portland Estates PLC | 57,330 | 843,767 | |||
Hammerson PLC | 101,423 | 3,054,998 | |||
Land Securities Group PLC | 167,941 | 6,773,338 | |||
Liberty International PLC | 96,642 | 2,295,457 | |||
Slough Estates PLC | 167,310 | 2,437,831 | |||
21,745,097 | |||||
RETAIL – 3.49% | |||||
Alliance Boots PLC | 295,452 | 4,571,300 | |||
Carphone Warehouse Group (The) PLC | 141,102 | 821,970 | |||
DSG International PLC | 651,690 | 2,183,926 | |||
Enterprise Inns PLC | 205,959 | 2,540,839 | |||
HMV Group PLC | 141,804 | 386,282 | |||
Home Retail Group | 311,073 | 2,578,715 | |||
Kesa Electricals PLC | 188,136 | 1,245,283 | |||
Kingfisher PLC | 847,103 | 4,175,177 | |||
Marks & Spencer Group PLC | 606,037 | 8,016,847 | |||
Mitchells & Butlers PLC | 148,731 | 2,068,019 | |||
Next PLC | 80,964 | 3,240,025 | |||
Punch Taverns PLC | 95,499 | 2,163,502 | |||
Signet Group PLC | 616,548 | 1,416,708 | |||
Whitbread PLC | 71,056 | 2,294,873 | |||
37,703,466 | |||||
SEMICONDUCTORS – 0.17% | |||||
ARM Holdings PLC | 483,779 | 1,215,920 | |||
CSR PLCa | 45,972 | 649,575 | |||
1,865,495 | |||||
SOFTWARE – 0.29% | |||||
Misys PLC | 179,478 | 821,294 | |||
Sage Group PLC | 459,576 | 2,314,681 | |||
3,135,975 | |||||
TELECOMMUNICATIONS – 6.71% | |||||
BT Group PLC | 2,976,448 | 17,251,376 | |||
Cable & Wireless PLC | 882,597 | 2,849,630 | |||
Vodafone Group PLC | 18,896,847 | 52,401,831 | |||
72,502,837 |
72 | 2007 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI UNITED KINGDOM INDEX FUND
February 28, 2007
Security | Shares | Value | |||
TRANSPORTATION – 0.44% | |||||
Arriva PLC | 70,200 | $ | 987,785 | ||
FirstGroup PLC | 155,458 | 1,852,326 | |||
National Express Group PLC | 49,140 | 1,058,360 | |||
Stagecoach Group PLC | 286,416 | 875,634 | |||
4,774,105 | |||||
VENTURE CAPITAL – 0.33% | |||||
3i Group PLC | 165,375 | 3,620,126 | |||
3,620,126 | |||||
WATER – 0.83% | |||||
Kelda Group PLC | 127,296 | 2,225,258 | |||
Severn Trent PLC | 82,631 | 2,236,338 | |||
United Utilities PLC | 314,964 | 4,490,498 | |||
8,952,094 | |||||
TOTAL COMMON STOCKS | 1,076,765,154 | ||||
SHORT-TERM INVESTMENTS – 0.04% | |||||
MONEY MARKET FUNDS – 0.04% | |||||
Barclays Global Investors Funds Institutional Money Market Fund, Institutional Shares 5.30%c,d | 371,087 | 371,087 | |||
371,087 | |||||
TOTAL SHORT-TERM INVESTMENTS | 371,087 | ||||
TOTAL INVESTMENTS IN SECURITIES – 99.64% | 1,077,136,241 | ||||
Other Assets, Less Liabilities – 0.36% | 3,942,352 | ||||
NET ASSETS – 100.00% | $ | 1,081,078,593 | |||
a | Non-income earning security. |
b | Security valued at fair value in accordance with procedures approved by the Board of Directors. See Note 1. |
c | Affiliated issuer. See Note 2. |
d | The rate quoted is the annualized seven-day yield of the fund at period end. |
See notes to financial statements.
SCHEDULESOF INVESTMENTS | 73 |
Table of Contents
Statements of Assets and Liabilities (Unaudited)
iSHARES®, INC.
February 28, 2007
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 | $ | 350,549,274 | $ | 224,940,604 | $ | 2,008,098,953 | $ | 166,330,060 | $ | 906,627,163 | $ | 194,521,888 | ||||||||||||
Affiliated issuers (Note 2) | 16,395 | 161,525 | 388,347 | 88,026 | 305,433 | 305,711 | ||||||||||||||||||
Total cost of investments | $ | 350,565,669 | $ | 225,102,129 | $ | 2,008,487,300 | $ | 166,418,086 | $ | 906,932,596 | $ | 194,827,599 | ||||||||||||
Investments in securities, at value (including securities on loana) (Note 1): | ||||||||||||||||||||||||
Unaffiliated issuers | $ | 439,060,259 | $ | 261,040,694 | $ | 2,424,756,945 | $ | 185,273,454 | $ | 1,104,664,965 | $ | 209,197,575 | ||||||||||||
Affiliated issuers (Note 2) | 16,395 | 161,525 | 388,347 | 88,026 | 305,433 | 305,711 | ||||||||||||||||||
Total value of investments | 439,076,654 | 261,202,219 | 2,425,145,292 | 185,361,480 | 1,104,970,398 | 209,503,286 | ||||||||||||||||||
Foreign currencies, at valueb | 326,545 | 150,840 | 1,735,682 | 79,252 | 540,786 | 57,882 | ||||||||||||||||||
Receivables: | ||||||||||||||||||||||||
Investment securities sold | 13,761,663 | 3,814,940 | – | 276,389 | 5,855,902 | 6,286,539 | ||||||||||||||||||
Dividends and interest | 767,816 | 127,281 | 2,344,693 | 343,841 | 1,484,972 | 69,891 | ||||||||||||||||||
Capital shares sold | – | – | – | – | 16,816 | 241,914 | ||||||||||||||||||
Total Assets | 453,932,678 | 265,295,280 | 2,429,225,667 | 186,060,962 | 1,112,868,874 | 216,159,512 | ||||||||||||||||||
LIABILITIES | ||||||||||||||||||||||||
Payables: | ||||||||||||||||||||||||
Investment securities purchased | 13,397,309 | 3,841,742 | – | 271,782 | 5,475,643 | 6,479,313 | ||||||||||||||||||
Collateral for securities on loan (Note 5) | 3,416,868 | – | 26,449,832 | 1,645,321 | 16,132,620 | 1,879,008 | ||||||||||||||||||
Capital shares redeemed | – | – | 210,249 | – | – | 56,407 | ||||||||||||||||||
Investment advisory fees (Note 2) | 177,574 | 99,976 | 968,622 | 73,946 | 417,563 | 86,319 | ||||||||||||||||||
Total Liabilities | 16,991,751 | 3,941,718 | 27,628,703 | 1,991,049 | 22,025,826 | 8,501,047 | ||||||||||||||||||
NET ASSETS | $ | 436,940,927 | $ | 261,353,562 | $ | 2,401,596,964 | $ | 184,069,913 | $ | 1,090,843,048 | $ | 207,658,465 | ||||||||||||
Net assets consist of: | ||||||||||||||||||||||||
Paid-in capital | $ | 351,832,349 | $ | 227,393,161 | $ | 1,969,068,228 | $ | 163,360,139 | $ | 913,260,620 | $ | 172,911,155 | ||||||||||||
Distributions in excess of net investment income or accumulated net investment loss | (4,497,543 | ) | (1,300,631 | ) | (708,965 | ) | (88,516 | ) | (971,741 | ) | (193,729 | ) | ||||||||||||
Undistributed net realized gain (accumulated net realized loss) | 1,067,790 | (847,799 | ) | 16,469,013 | 1,843,202 | (19,553,934 | ) | 20,244,403 | ||||||||||||||||
Net unrealized appreciation on investments and translation of assets and liabilities in foreign currencies | 88,538,331 | 36,108,831 | 416,768,688 | 18,955,088 | 198,108,103 | 14,696,636 | ||||||||||||||||||
NET ASSETS | $ | 436,940,927 | $ | 261,353,562 | $ | 2,401,596,964 | $ | 184,069,913 | $ | 1,090,843,048 | $ | 207,658,465 | ||||||||||||
Shares outstanding | 12,200,000 | 10,240,000 | 23,150,000 | 5,400,000 | 39,600,000 | 6,300,000 | ||||||||||||||||||
Net asset value per share | $ | 35.81 | $ | 25.52 | $ | 103.74 | $ | 34.09 | $ | 27.55 | $ | 32.96 | ||||||||||||
a | Securities on loan with market values of $3,253,644, $–, $24,803,314, $1,566,646, $15,352,629 and $1,783,498, respectively. See Note 5. |
b | Cost of foreign currencies: $323,952, $148,287, $1,701,761, $78,145, $529,720 and $56,671, respectively. |
See notes to financial statements.
74 | 2007 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Statements of Assets and Liabilities (Unaudited) (Continued)
iSHARES®, INC.
February 28, 2007
iShares MSCI | |||||||||||||||||||
Netherlands Index Fund | Spain Index Fund | Sweden Index Fund | Switzerland Index Fund | United Kingdom Index Fund | |||||||||||||||
ASSETS | |||||||||||||||||||
Investments, at cost: | |||||||||||||||||||
Unaffiliated issuers | $ | 162,392,995 | $ | 625,551,758 | $ | 331,733,325 | $ | 206,294,665 | $ | 862,768,157 | |||||||||
Affiliated issuers (Note 2) | 1,334 | 168,686 | 85,613 | 158,908 | 25,987,010 | ||||||||||||||
Total cost of investments | $ | 162,394,329 | $ | 625,720,444 | $ | 331,818,938 | $ | 206,453,573 | $ | 888,755,167 | |||||||||
Investments in securities, at value | |||||||||||||||||||
(including securities on loana) (Note 1): | |||||||||||||||||||
Unaffiliated issuers | $ | 184,334,671 | $ | 673,392,913 | $ | 379,942,255 | $ | 263,062,936 | $ | 1,042,941,659 | |||||||||
Affiliated issuers (Note 2) | 1,334 | 168,686 | 85,613 | 158,908 | 34,194,582 | ||||||||||||||
Total value of investments | 184,336,005 | 673,561,599 | 380,027,868 | 263,221,844 | 1,077,136,241 | ||||||||||||||
Foreign currencies, at valueb | 108,520 | 624,561 | 3,794 | 183,075 | 1,044,238 | ||||||||||||||
Receivables: | |||||||||||||||||||
Investment securities sold | 1,106,985 | 2,988,695 | – | 1,662,219 | 3,192,118 | ||||||||||||||
Dividends and interest | 625 | 72,161 | 1,264 | 407,305 | 3,420,459 | ||||||||||||||
Total Assets | 185,552,135 | 677,247,016 | 380,032,926 | 265,474,443 | 1,084,793,056 | ||||||||||||||
LIABILITIES | |||||||||||||||||||
Payables: | |||||||||||||||||||
Investment securities purchased | 1,043,793 | 2,865,803 | – | 1,647,255 | 3,217,211 | ||||||||||||||
Collateral for securities on loan (Note 5) | 1,373,423 | 14,666,246 | 278,144 | – | – | ||||||||||||||
Capital shares redeemed | – | – | – | – | 52,496 | ||||||||||||||
Investment advisory fees (Note 2) | 76,216 | 247,121 | 154,724 | 104,190 | 444,756 | ||||||||||||||
Total Liabilities | 2,493,432 | 17,779,170 | 432,868 | 1,751,445 | 3,714,463 | ||||||||||||||
NET ASSETS | $ | 183,058,703 | $ | 659,467,846 | $ | 379,600,058 | $ | 263,722,998 | $ | 1,081,078,593 | |||||||||
Net assets consist of: | |||||||||||||||||||
Paid-in capital | $ | 161,667,689 | $ | 560,271,226 | $ | 338,072,649 | $ | 212,010,904 | $ | 922,853,995 | |||||||||
Undistributed (distributions in excess of) | |||||||||||||||||||
(accumulated net investment loss) | (822,432 | ) | 2,524,766 | 141,248 | (379,706 | ) | 3,477,686 | ||||||||||||
Undistributed net realized gain | |||||||||||||||||||
(accumulated net realized loss) | 271,326 | 48,819,111 | (6,822,773 | ) | (4,696,319 | ) | (33,640,866 | ) | |||||||||||
Net unrealized appreciation on investments and translation of assets and liabilities in foreign currencies | 21,942,120 | 47,852,743 | 48,208,934 | 56,788,119 | 188,387,778 | ||||||||||||||
NET ASSETS | $ | 183,058,703 | $ | 659,467,846 | $ | 379,600,058 | $ | 263,722,998 | $ | 1,081,078,593 | |||||||||
Shares outstanding | 6,950,000 | 12,150,000 | 12,075,000 | 10,625,000 | 46,800,000 | ||||||||||||||
Net asset value per share | $ | 26.34 | $ | 54.28 | $ | 31.44 | $ | 24.82 | $ | 23.10 | |||||||||
a | Securities on loan with market values of $1,302,667, $13,922,894, $264,832, $– and $–, respectively. See Note 5. |
b | Cost of foreign currencies: $108,077, $613,628, $3,790, $180,009 and $1,043,616, respectively. |
See notes to financial statements.
FINANCIAL STATEMENTS | 75 |
Table of Contents
Statements of Operations (Unaudited)
iSHARES®, INC.
Six months ended February 28, 2007
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 | $ | 63,269 | $ | 252,252 | $ | 8,987,530 | $ | 747,187 | $ | 1,918,057 | $ | 1,290,269 | |||||||||||
Interest from affiliated issuers (Note 2) | 4,599 | 3,737 | 31,730 | 2,529 | 22,510 | 4,010 | |||||||||||||||||
Securities lending income | 8,078 | 1,764 | 98,397 | 3,430 | 36,906 | 11,232 | |||||||||||||||||
Total investment income | 75,946 | 257,753 | 9,117,657 | 753,146 | 1,977,473 | 1,305,511 | |||||||||||||||||
EXPENSES | |||||||||||||||||||||||
Investment advisory fees (Note 2) | 1,054,164 | 545,159 | 5,456,074 | 497,046 | 2,346,357 | 508,047 | |||||||||||||||||
Total expenses | 1,054,164 | 545,159 | 5,456,074 | 497,046 | 2,346,357 | 508,047 | |||||||||||||||||
Net investment income (loss) | (978,218 | ) | (287,406 | ) | 3,661,583 | 256,100 | (368,884 | ) | 797,464 | ||||||||||||||
NET REALIZED AND UNREALIZED | |||||||||||||||||||||||
Net realized gain (loss) from: | |||||||||||||||||||||||
Investments in unaffiliated issuers | (8,531,898 | ) | 258,344 | 1,921,412 | (803,042 | ) | (3,340,580 | ) | (288,801 | ) | |||||||||||||
In-kind redemptions | 16,894,026 | 1,349,283 | 30,239,115 | 8,765,255 | 20,133,040 | 25,824,326 | |||||||||||||||||
Foreign currency transactions | 21,645 | 5,953 | 133,803 | 12,519 | 12,494 | 33,034 | |||||||||||||||||
Net realized gain | 8,383,773 | 1,613,580 | 32,294,330 | 7,974,732 | 16,804,954 | 25,568,559 | |||||||||||||||||
Net change in unrealized appreciation | |||||||||||||||||||||||
Investments | 54,177,936 | 22,879,467 | 237,642,456 | 11,435,716 | 133,619,932 | (6,718,332 | ) | ||||||||||||||||
Translation of assets and liabilities in foreign currencies | 21,415 | 2,178 | 92,738 | 10,833 | 48,687 | 2,082 | |||||||||||||||||
Net change in unrealized appreciation (depreciation) | 54,199,351 | 22,881,645 | 237,735,194 | 11,446,549 | 133,668,619 | (6,716,250 | ) | ||||||||||||||||
Net realized and unrealized gain | 62,583,124 | 24,495,225 | 270,029,524 | 19,421,281 | 150,473,573 | 18,852,309 | |||||||||||||||||
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS | $ | 61,604,906 | $ | 24,207,819 | $ | 273,691,107 | $ | 19,677,381 | $ | 150,104,689 | $ | 19,649,773 | |||||||||||
a | Net of foreign withholding tax of $11,165, $42,393, $1,505,413, $129,230, $327,648 and $227,695, respectively. |
See notes to financial statements.
76 | 2007 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Statements of Operations (Unaudited) (Continued)
iSHARES®, INC.
Six months ended February 28, 2007
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 | $ | 513,445 | $ | 5,806,404 | $ | 857,181 | $ | 203,684 | $ | 11,555,921 | ||||||||||
Interest from affiliated issuers (Note 2) | 2,508 | 7,105 | 5,248 | 2,525 | 22,352 | |||||||||||||||
Securities lending income | 2,167 | 114,851 | 6,767 | 938 | – | |||||||||||||||
Total investment income | 518,120 | 5,928,360 | 869,196 | 207,147 | 11,578,273 | |||||||||||||||
EXPENSES | ||||||||||||||||||||
Investment advisory fees (Note 2) | 476,901 | 1,255,444 | 729,211 | 586,645 | 2,505,830 | |||||||||||||||
Total expenses | 476,901 | 1,255,444 | 729,211 | 586,645 | 2,505,830 | |||||||||||||||
Net investment income (loss) | 41,219 | 4,672,916 | 139,985 | (379,498 | ) | 9,072,443 | ||||||||||||||
NET REALIZED AND UNREALIZED | ||||||||||||||||||||
Net realized gain (loss) from: | ||||||||||||||||||||
Investments in unaffiliated issuers | 294,075 | 978,022 | 265,995 | 385,414 | (1,911,821 | ) | ||||||||||||||
Investments in affiliated issuers (Note 2) | – | – | – | – | 397,174 | |||||||||||||||
In-kind redemptions | 9,267,401 | 51,428,748 | – | 2,061,953 | 10,199,533 | |||||||||||||||
Foreign currency transactions | 25,239 | (7,189 | ) | (4,713 | ) | (8,460 | ) | 138,441 | ||||||||||||
Net realized gain | 9,586,715 | 52,399,581 | 261,282 | 2,438,907 | 8,823,327 | |||||||||||||||
Net change in unrealized appreciation | ||||||||||||||||||||
(depreciation) on: | ||||||||||||||||||||
Investments | 8,980,998 | 18,650,973 | 45,516,782 | 20,251,732 | 61,486,983 | |||||||||||||||
Translation of assets and liabilities in foreign currencies | (595 | ) | 9,971 | 1,192 | 10,412 | (24,121 | ) | |||||||||||||
Net change in unrealized appreciation | ||||||||||||||||||||
(depreciation) | 8,980,403 | 18,660,944 | 45,517,974 | 20,262,144 | 61,462,862 | |||||||||||||||
Net realized and unrealized gain | 18,567,118 | 71,060,525 | 45,779,256 | 22,701,051 | 70,286,189 | |||||||||||||||
NET INCREASE IN NET ASSETS RESULTING | $ | 18,608,337 | $ | 75,733,441 | $ | 45,919,241 | $ | 22,321,553 | $ | 79,358,632 | ||||||||||
a | Net of foreign withholding tax of $90,608, $1,006,075, $4,569, $1,812 and $127,221, respectively. |
See notes to financial statements.
FINANCIAL STATEMENTS | 77 |
Table of Contents
Statements of Changes in Net Assets
iSHARES®, INC.
iShares MSCI Austria Index Fund | iShares MSCI Belgium Index Fund | iShares MSCI EMU Index Fund | ||||||||||||||||||||||
Six months ended February 28, 2007 (Unaudited) | Year ended August 31, 2006 | Six months ended February 28, 2007 (Unaudited) | Year ended August 31, 2006 | Six months ended February 28, 2007 (Unaudited) | Year ended August 31, 2006 | |||||||||||||||||||
INCREASE (DECREASE) IN NET ASSETS |
| |||||||||||||||||||||||
OPERATIONS: | ||||||||||||||||||||||||
Net investment income (loss) | $ | (978,218 | ) | $ | 4,573,969 | $ | (287,406 | ) | $ | 3,228,861 | $ | 3,661,583 | $ | 36,506,832 | ||||||||||
Net realized gain | 8,383,773 | 34,514,511 | 1,613,580 | 2,556,361 | 32,294,330 | 83,839,198 | ||||||||||||||||||
Net change in unrealized appreciation (depreciation) | 54,199,351 | (8,534,884 | ) | 22,881,645 | 12,287,153 | 237,735,194 | 101,409,737 | |||||||||||||||||
Net increase in net assets resulting from operations | 61,604,906 | 30,553,596 | 24,207,819 | 18,072,375 | 273,691,107 | 221,755,767 | ||||||||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS: |
| |||||||||||||||||||||||
From net investment income | (8,705,133 | ) | (2,357,719 | ) | (4,042,358 | ) | (2,145,588 | ) | (39,632,440 | ) | (12,287,252 | ) | ||||||||||||
Total distributions to shareholders | (8,705,133 | ) | (2,357,719 | ) | (4,042,358 | ) | (2,145,588 | ) | (39,632,440 | ) | (12,287,252 | ) | ||||||||||||
CAPITAL SHARE TRANSACTIONS: |
| |||||||||||||||||||||||
Proceeds from shares sold | 47,516,306 | 289,063,151 | 92,801,942 | 103,356,773 | 445,898,386 | 1,281,531,733 | ||||||||||||||||||
Cost of shares redeemed | (55,112,541 | ) | (122,573,813 | ) | (4,098,051 | ) | (13,758,909 | ) | (73,281,076 | ) | (243,363,438 | ) | ||||||||||||
Net increase (decrease) in net assets from capital share transactions | (7,596,235 | ) | 166,489,338 | 88,703,891 | 89,597,864 | 372,617,310 | 1,038,168,295 | |||||||||||||||||
INCREASE IN NET ASSETS | 45,303,538 | 194,685,215 | 108,869,352 | 105,524,651 | 606,675,977 | 1,247,636,810 | ||||||||||||||||||
NET ASSETS | ||||||||||||||||||||||||
Beginning of period | 391,637,389 | 196,952,174 | 152,484,210 | 46,959,559 | 1,794,920,987 | 547,284,177 | ||||||||||||||||||
End of period | $ | 436,940,927 | $ | 391,637,389 | $ | 261,353,562 | $ | 152,484,210 | $ | 2,401,596,964 | $ | 1,794,920,987 | ||||||||||||
Undistributed (distributions in excess of) net investment income (accumulated net investment loss) included in net assets at end of period | $ | (4,497,543 | ) | $ | 5,185,808 | $ | (1,300,631 | ) | $ | 3,029,133 | $ | (708,965 | ) | $ | 35,261,892 | |||||||||
SHARES ISSUED AND REDEEMED |
| |||||||||||||||||||||||
Shares sold | 1,300,000 | 9,400,000 | 3,720,000 | 4,880,000 | 4,400,000 | 15,050,000 | ||||||||||||||||||
Shares redeemed | (1,700,000 | ) | (4,200,000 | ) | (160,000 | ) | (680,000 | ) | (700,000 | ) | (2,900,000 | ) | ||||||||||||
Net increase (decrease) in shares outstanding | (400,000 | ) | 5,200,000 | 3,560,000 | 4,200,000 | 3,700,000 | 12,150,000 | |||||||||||||||||
See notes to financial statements.
78 | 2007 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Statements of Changes in Net Assets (Continued)
iSHARES®, INC.
iShares MSCI France Index Fund | iShares��MSCI Germany Index Fund | iShares MSCI Italy Index Fund | ||||||||||||||||||||||
Six months ended (Unaudited) | Year ended August 31, 2006 | Six months ended (Unaudited) | Year ended August 31, 2006 | Six months ended (Unaudited) | Year ended August 31, 2006 | |||||||||||||||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||||||||||||||||||
OPERATIONS: |
| |||||||||||||||||||||||
Net investment income (loss) | $ | 256,100 | $ | 2,234,907 | $ | (368,884 | ) | $ | 16,579,393 | $ | 797,464 | $ | 3,283,210 | |||||||||||
Net realized gain | 7,974,732 | 24,946,517 | 16,804,954 | 43,262,838 | 25,568,559 | 2,217,054 | ||||||||||||||||||
Net change in unrealized appreciation (depreciation) | 11,446,549 | (236,936 | ) | 133,668,619 | 55,951,665 | (6,716,250 | ) | 13,029,731 | ||||||||||||||||
Net increase in net assets resulting from operations | 19,677,381 | 26,944,488 | 150,104,689 | 115,793,896 | 19,649,773 | 18,529,995 | ||||||||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS: |
| |||||||||||||||||||||||
From net investment income | (2,600,181 | ) | (1,093,386 | ) | (17,227,480 | ) | (2,745,191 | ) | (4,310,712 | ) | (1,062,571 | ) | ||||||||||||
Total distributions to shareholders | (2,600,181 | ) | (1,093,386 | ) | (17,227,480 | ) | (2,745,191 | ) | (4,310,712 | ) | (1,062,571 | ) | ||||||||||||
CAPITAL SHARE TRANSACTIONS: |
| |||||||||||||||||||||||
Proceeds from shares sold | 6,165,897 | 193,944,708 | 230,966,831 | 611,158,486 | 122,007,074 | 90,441,632 | ||||||||||||||||||
Cost of shares redeemed | (51,058,945 | ) | (89,235,841 | ) | (75,795,586 | ) | (236,206,028 | ) | (76,011,384 | ) | (4,111,384 | ) | ||||||||||||
Net increase (decrease) in net assets from capital share transactions | (44,893,048 | ) | 104,708,867 | 155,171,245 | 374,952,458 | 45,995,690 | 86,330,248 | |||||||||||||||||
INCREASE (DECREASE) | ||||||||||||||||||||||||
IN NET ASSETS | (27,815,848 | ) | 130,559,969 | 288,048,454 | 488,001,163 | 61,334,751 | 103,797,672 | |||||||||||||||||
NET ASSETS | ||||||||||||||||||||||||
Beginning of period | 211,885,761 | 81,325,792 | 802,794,594 | 314,793,431 | 146,323,714 | 42,526,042 | ||||||||||||||||||
End of period | $ | 184,069,913 | $ | 211,885,761 | $ | 1,090,843,048 | $ | 802,794,594 | $ | 207,658,465 | $ | 146,323,714 | ||||||||||||
Undistributed (distributions in excess of) net investment income (accumulated net investment loss) included in net assets at end of period | $ | (88,516 | ) | $ | 2,255,565 | $ | (971,741 | ) | $ | 16,624,623 | $ | (193,729 | ) | $ | 3,319,519 | |||||||||
SHARES ISSUED AND REDEEMED |
| |||||||||||||||||||||||
Shares sold | 200,000 | 6,800,000 | 8,700,000 | 28,500,000 | 3,750,000 | 3,300,000 | ||||||||||||||||||
Shares redeemed | (1,600,000 | ) | (3,200,000 | ) | (3,000,000 | ) | (11,100,000 | ) | (2,250,000 | ) | (150,000 | ) | ||||||||||||
Net increase (decrease) in shares outstanding | (1,400,000 | ) | 3,600,000 | 5,700,000 | 17,400,000 | 1,500,000 | 3,150,000 | |||||||||||||||||
See notes to financial statements.
FINANCIAL STATEMENTS | 79 |
Table of Contents
Statements of Changes in Net Assets (Continued)
iSHARES®, INC.
iShares MSCI Netherlands Index Fund | iShares MSCI Spain Index Fund | iShares MSCI Sweden Index Fund | ||||||||||||||||||||||
Six months ended (Unaudited) | Year ended August 31, 2006 | Six months ended (Unaudited) | Year ended August 31, 2006 | Six months ended (Unaudited) | Year ended August 31, 2006 | |||||||||||||||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||||||||||||||||||
OPERATIONS: | ||||||||||||||||||||||||
Net investment income | $ | 41,219 | $ | 2,460,966 | $ | 4,672,916 | $ | 2,816,735 | $ | 139,985 | $ | 3,522,482 | ||||||||||||
Net realized gain | 9,586,715 | 8,002,115 | 52,399,581 | 7,154,162 | 261,282 | 18,268,143 | ||||||||||||||||||
Net change in unrealized appreciation (depreciation) | 8,980,403 | 11,681,549 | 18,660,944 | 15,105,957 | 45,517,974 | (9,543,135 | ) | |||||||||||||||||
Net increase in net assets resulting from operations | 18,608,337 | 22,144,630 | 75,733,441 | 25,076,854 | 45,919,241 | 12,247,490 | ||||||||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS: |
| |||||||||||||||||||||||
From net investment income | (3,524,849 | ) | (1,617,341 | ) | (4,483,132 | ) | (1,611,053 | ) | (3,600,238 | ) | (1,227,638 | ) | ||||||||||||
Total distributions to shareholders | (3,524,849 | ) | (1,617,341 | ) | (4,483,132 | ) | (1,611,053 | ) | (3,600,238 | ) | (1,227,638 | ) | ||||||||||||
CAPITAL SHARE TRANSACTIONS: |
| |||||||||||||||||||||||
Proceeds from shares sold | 90,698,941 | 63,102,133 | 565,223,166 | 102,462,370 | 185,854,494 | 133,924,232 | ||||||||||||||||||
Cost of shares redeemed | (32,715,011 | ) | (37,612,147 | ) | (155,135,686 | ) | (14,743,172 | ) | – | (55,030,029 | ) | |||||||||||||
Net increase in net assets from capital share transactions | 57,983,930 | 25,489,986 | 410,087,480 | 87,719,198 | 185,854,494 | 78,894,203 | ||||||||||||||||||
INCREASE IN NET ASSETS | 73,067,418 | 46,017,275 | 481,337,789 | 111,184,999 | 228,173,497 | 89,914,055 | ||||||||||||||||||
NET ASSETS | ||||||||||||||||||||||||
Beginning of period | 109,991,285 | 63,974,010 | 178,130,057 | 66,945,058 | 151,426,561 | 61,512,506 | ||||||||||||||||||
End of period | $ | 183,058,703 | $ | 109,991,285 | $ | 659,467,846 | $ | 178,130,057 | $ | 379,600,058 | $ | 151,426,561 | ||||||||||||
Undistributed (distributions in excess of) net investment income included in net assets at end of period | $ | (822,432 | ) | $ | 2,661,198 | $ | 2,524,766 | $ | 2,334,982 | $ | 141,248 | $ | 3,601,501 | |||||||||||
SHARES ISSUED AND REDEEMED |
| |||||||||||||||||||||||
Shares sold | 3,650,000 | 2,850,000 | 11,100,000 | 2,475,000 | 6,225,000 | 5,250,000 | ||||||||||||||||||
Shares redeemed | (1,250,000 | ) | (1,650,000 | ) | (2,925,000 | ) | (375,000 | ) | – | (2,250,000 | ) | |||||||||||||
Net increase in shares outstanding | 2,400,000 | 1,200,000 | 8,175,000 | 2,100,000 | 6,225,000 | 3,000,000 | ||||||||||||||||||
See notes to financial statements.
80 | 2007 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Statements of Changes in Net Assets (Continued)
iSHARES®, INC.
iShares MSCI Switzerland Index Fund | iShares MSCI United Kingdom Index Fund | |||||||||||||||
Six months ended (Unaudited) | Year ended August 31, 2006 | Six months ended (Unaudited) | Year ended August 31, 2006 | |||||||||||||
INCREASE (DECREASE) IN NET ASSETS |
| |||||||||||||||
OPERATIONS: | ||||||||||||||||
Net investment income (loss) | $ | (379,498 | ) | $ | 1,856,248 | $ | 9,072,443 | $ | 31,286,621 | |||||||
Net realized gain | 2,438,907 | 6,236,495 | 8,823,327 | 6,097,571 | ||||||||||||
Net change in unrealized appreciation (depreciation) | 20,262,144 | 25,594,505 | 61,462,862 | 85,793,247 | ||||||||||||
Net increase in net assets resulting from operations | 22,321,553 | 33,687,248 | 79,358,632 | 123,177,439 | ||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS: |
| |||||||||||||||
From net investment income | (1,891,314 | ) | (773,209 | ) | (34,304,512 | ) | (16,085,262 | ) | ||||||||
Total distributions to shareholders | (1,891,314 | ) | (773,209 | ) | (34,304,512 | ) | (16,085,262 | ) | ||||||||
CAPITAL SHARE TRANSACTIONS: |
| |||||||||||||||
Proceeds from shares sold | 61,351,711 | 94,447,210 | 192,126,409 | 344,797,700 | ||||||||||||
Cost of shares redeemed | (6,378,107 | ) | (18,366,262 | ) | (28,510,876 | ) | (44,331,266 | ) | ||||||||
Net increase in net assets from capital share transactions | 54,973,604 | 76,080,948 | 163,615,533 | 300,466,434 | ||||||||||||
INCREASE IN NET ASSETS | 75,403,843 | 108,994,987 | 208,669,653 | 407,558,611 | ||||||||||||
NET ASSETS | ||||||||||||||||
Beginning of period | 188,319,155 | 79,324,168 | 872,408,940 | 464,850,329 | ||||||||||||
End of period | $ | 263,722,998 | $ | 188,319,155 | $ | 1,081,078,593 | $ | 872,408,940 | ||||||||
Undistributed net investment income (accumulated net investment loss) included in net assets at end of period | $ | (379,706 | ) | $ | 1,891,106 | $ | 3,477,686 | $ | 28,709,755 | |||||||
SHARES ISSUED AND REDEEMED | ||||||||||||||||
Shares sold | 2,500,000 | 4,750,000 | 8,200,000 | 17,200,000 | ||||||||||||
Shares redeemed | (250,000 | ) | (875,000 | ) | (1,200,000 | ) | (2,200,000 | ) | ||||||||
Net increase in shares outstanding | 2,250,000 | 3,875,000 | 7,000,000 | 15,000,000 | ||||||||||||
See notes to financial statements.
FINANCIAL STATEMENTS | 81 |
Table of Contents
iSHARES®, INC.
(For a share outstanding throughout each period)
iShares MSCI Austria Index Fund | ||||||||||||||||||||||||
Six months ended Feb. 28, 2007 (Unaudited) | Year ended Aug. 31, 2006 | Year ended Aug. 31, 2005 | Year ended Aug. 31, 2004 | Year ended Aug. 31, 2003 | Year ended Aug. 31, 2002 | |||||||||||||||||||
�� | ||||||||||||||||||||||||
Net asset value, beginning of period | $ | 31.08 | $ | 26.62 | $ | 17.04 | $ | 10.61 | $ | 8.19 | $ | 8.18 | ||||||||||||
Income from investment operations: | ||||||||||||||||||||||||
Net investment income (loss)a | (0.08 | ) | 0.44 | 0.29 | 0.21 | 0.09 | 0.13 | |||||||||||||||||
Net realized and unrealized gain (loss)b | 5.54 | 4.31 | 9.38 | 6.39 | 2.43 | (0.12 | ) | |||||||||||||||||
Total from investment operations | 5.46 | 4.75 | 9.67 | 6.60 | 2.52 | 0.01 | ||||||||||||||||||
Less distributions from: | ||||||||||||||||||||||||
Net investment income | (0.73 | ) | (0.29 | ) | (0.09 | ) | (0.17 | ) | (0.10 | ) | – | |||||||||||||
Total distributions | (0.73 | ) | (0.29 | ) | (0.09 | ) | (0.17 | ) | (0.10 | ) | – | |||||||||||||
Net asset value, end of period | $ | 35.81 | $ | 31.08 | $ | 26.62 | $ | 17.04 | $ | 10.61 | $ | 8.19 | ||||||||||||
Total return | 17.53 | %c | 18.00 | % | 56.82 | % | 62.70 | % | 31.15 | % | 0.12 | % | ||||||||||||
Ratios/Supplemental data: | ||||||||||||||||||||||||
Net assets, end of period (000s) | $ | 436,941 | $ | 391,637 | $ | 196,952 | $ | 57,920 | $ | 22,288 | $ | 14,740 | ||||||||||||
Ratio of expenses to average net assetsd | 0.52 | % | 0.54 | % | 0.57 | % | 0.77 | % | 0.84 | % | 0.84 | % | ||||||||||||
Ratio of net investment income (loss) to average net assetsd | (0.48 | )% | 1.48 | % | 1.26 | % | 1.37 | % | 0.98 | % | 1.57 | % | ||||||||||||
Portfolio turnover ratee | 7 | % | 32 | % | 21 | % | 11 | % | 26 | % | 32 | % |
a | Based on average shares outstanding throughout each period. |
b | The amounts reported may not accord with the change in aggregate gains and losses in securities due to the timing of capital share transactions. |
c | Not annualized. |
d | Annualized for periods of less than one year. |
e | Portfolio turnover rates exclude portfolio securities received or delivered as a result of processing capital share transactions in Creation Units. |
See notes to financial statements.
82 | 2007 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Financial Highlights (Continued)
iSHARES®, INC.
(For a share outstanding throughout each period)
iShares MSCI Belgium Index Fund | ||||||||||||||||||||||||
Six months ended Feb. 28, 2007 (Unaudited) | Year ended Aug. 31, 2006 | Year ended Aug. 31, 2005 | Year ended Aug. 31, 2004 | Year ended Aug. 31, 2003 | Year ended Aug. 31, 2002 | |||||||||||||||||||
Net asset value, beginning of period | $ | 22.83 | $ | 18.94 | $ | 14.77 | $ | 11.16 | $ | 10.43 | $ | 11.81 | ||||||||||||
Income from investment operations: | ||||||||||||||||||||||||
Net investment income (loss)a | (0.03 | ) | 0.75 | 0.71 | 0.37 | 0.41 | 0.25 | |||||||||||||||||
Net realized and unrealized gain (loss)b | 3.16 | 3.95 | 3.75 | 4.25 | 0.43 | (1.56 | ) | |||||||||||||||||
Total from investment operations | 3.13 | 4.70 | 4.46 | 4.62 | 0.84 | (1.31 | ) | |||||||||||||||||
Less distributions from: | ||||||||||||||||||||||||
Net investment income | (0.44 | ) | (0.81 | ) | (0.29 | ) | (1.01 | ) | (0.11 | ) | (0.07 | ) | ||||||||||||
Total distributions | (0.44 | ) | (0.81 | ) | (0.29 | ) | (1.01 | ) | (0.11 | ) | (0.07 | ) | ||||||||||||
Net asset value, end of period | $ | 25.52 | $ | 22.83 | $ | 18.94 | $ | 14.77 | $ | 11.16 | $ | 10.43 | ||||||||||||
Total return | 13.72 | %c | 25.66 | % | 30.22 | % | 42.88 | % | 8.25 | % | (11.10 | )% | ||||||||||||
Ratios/Supplemental data: | ||||||||||||||||||||||||
Net assets, end of period (000s) | $ | 261,354 | $ | 152,484 | $ | 46,960 | $ | 24,813 | $ | 21,871 | $ | 10,427 | ||||||||||||
Ratio of expenses to average net assetsd | 0.52 | % | 0.54 | % | 0.57 | % | 0.78 | % | 0.84 | % | 0.84 | % | ||||||||||||
Ratio of net investment income (loss) to average net assetsd | (0.28 | )% | 3.60 | % | 3.89 | % | 2.79 | % | 4.10 | % | 2.26 | % | ||||||||||||
Portfolio turnover ratee | 5 | % | 10 | % | 10 | % | 21 | % | 8 | % | 18 | % |
a | Based on average shares outstanding throughout each period. |
b | The amounts reported may not accord with the change in aggregate gains and losses in securities due to the timing of capital share transactions. |
c | Not annualized. |
d | Annualized for periods of less than one year. |
e | Portfolio turnover rates exclude portfolio securities received or delivered as a result of processing capital share transactions in Creation Units. |
See notes to financial statements.
FINANCIAL HIGHLIGHTS | 83 |
Table of Contents
Financial Highlights (Continued)
iSHARES®, INC.
(For a share outstanding throughout each period)
iShares MSCI EMU Index Fund | ||||||||||||||||||||||||
Six months ended Feb. 28, 2007 (Unaudited) | Year ended Aug. 31, 2006 | Year ended Aug. 31, 2005 | Year ended Aug. 31, 2004 | Year ended Aug. 31, 2003 | Year ended Aug. 31, 2002 | |||||||||||||||||||
Net asset value, beginning of period | $ | 92.28 | $ | 74.97 | $ | 59.38 | $ | 50.12 | $ | 46.02 | $ | 56.74 | ||||||||||||
Income from investment operations: | ||||||||||||||||||||||||
Net investment incomea | 0.17 | 2.73 | 1.76 | 1.36 | 0.93 | 0.75 | ||||||||||||||||||
Net realized and unrealized gain (loss)b | 13.14 | 15.90 | 15.13 | 8.69 | 3.62 | (11.47 | ) | |||||||||||||||||
Total from investment operations | 13.31 | 18.63 | 16.89 | 10.05 | 4.55 | (10.72 | ) | |||||||||||||||||
Less distributions from: | ||||||||||||||||||||||||
Net investment income | (1.85 | ) | (1.32 | ) | (1.30 | ) | (0.79 | ) | (0.45 | ) | – | |||||||||||||
Total distributions | (1.85 | ) | (1.32 | ) | (1.30 | ) | (0.79 | ) | (0.45 | ) | – | |||||||||||||
Net asset value, end of period | $ | 103.74 | $ | 92.28 | $ | 74.97 | $ | 59.38 | $ | 50.12 | $ | 46.02 | ||||||||||||
Total return | 14.45 | %c | 25.18 | % | 28.54 | % | 20.07 | % | 10.05 | % | (18.89 | )% | ||||||||||||
Ratios/Supplemental data: | ||||||||||||||||||||||||
Net assets, end of period (000s) | $ | 2,401,597 | $ | 1,794,921 | $ | 547,284 | $ | 326,606 | $ | 165,388 | $ | 131,168 | ||||||||||||
Ratio of expenses to average net assetsd | 0.52 | % | 0.54 | % | 0.58 | % | 0.79 | % | 0.84 | % | 0.84 | % | ||||||||||||
Ratio of expenses to average net assets exclusive of foreign taxesd | n/a | n/a | 0.57 | % | 0.79 | % | n/a | n/a | ||||||||||||||||
Ratio of net investment income to average net assetsd | 0.35 | % | 3.23 | % | 2.50 | % | 2.29 | % | 2.08 | % | 1.44 | % | ||||||||||||
Portfolio turnover ratee | 1 | % | 8 | % | 8 | % | 11 | % | 7 | % | 3 | % |
a | Based on average shares outstanding throughout each period. |
b | The amounts reported may not accord with the change in aggregate gains and losses in securities due to the timing of capital share transactions. |
c | Not annualized. |
d | Annualized for periods of less than one year. |
e | Portfolio turnover rates exclude portfolio securities received or delivered as a result of processing capital share transactions in Creation Units. |
See notes to financial statements.
84 | 2007 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Financial Highlights (Continued)
iSHARES®, INC.
(For a share outstanding throughout each period)
iShares MSCI France Index Fund | ||||||||||||||||||||||||
Six months ended Feb. 28, 2007 (Unaudited) | Year ended Aug. 31, 2006 | Year ended Aug. 31, 2005 | Year ended Aug. 31, 2004 | Year ended Aug. 31, 2003 | Year ended Aug. 31, 2002 | |||||||||||||||||||
Net asset value, beginning of period | $ | 31.16 | $ | 25.41 | $ | 20.40 | $ | 16.90 | $ | 15.52 | $ | 19.53 | ||||||||||||
Income from investment operations: | ||||||||||||||||||||||||
Net investment incomea | 0.04 | 0.55 | 0.47 | 0.24 | 0.23 | 0.18 | ||||||||||||||||||
Net realized and unrealized gain (loss)b | 3.35 | 5.52 | 4.84 | 3.54 | 1.33 | (4.19 | ) | |||||||||||||||||
Total from investment operations | 3.39 | 6.07 | 5.31 | 3.78 | 1.56 | (4.01 | ) | |||||||||||||||||
Less distributions from: | ||||||||||||||||||||||||
Net investment income | (0.46 | ) | (0.32 | ) | (0.30 | ) | (0.28 | ) | (0.18 | ) | – | |||||||||||||
Total distributions | (0.46 | ) | (0.32 | ) | (0.30 | ) | (0.28 | ) | (0.18 | ) | – | |||||||||||||
Net asset value, end of period | $ | 34.09 | $ | 31.16 | $ | 25.41 | $ | 20.40 | $ | 16.90 | $ | 15.52 | ||||||||||||
Total return | 10.90 | %c | 24.13 | % | 26.13 | % | 22.44 | % | 10.22 | % | (20.53 | )% | ||||||||||||
Ratios/Supplemental data: | ||||||||||||||||||||||||
Net assets, end of period (000s) | $ | 184,070 | $ | 211,886 | $ | 81,326 | $ | 61,201 | $ | 54,075 | $ | 49,674 | ||||||||||||
Ratio of expenses to average net assetsd | 0.52 | % | 0.54 | % | 0.57 | % | 0.79 | % | 0.84 | % | 0.84 | % | ||||||||||||
Ratio of net investment income to average net assetsd | 0.27 | % | 1.95 | % | 1.98 | % | 1.23 | % | 1.56 | % | 1.00 | % | ||||||||||||
Portfolio turnover ratee | 2 | % | 10 | % | 7 | % | 9 | % | 9 | % | 3 | % |
a | Based on average shares outstanding throughout each period. |
b | The amounts reported may not accord with the change in aggregate gains and losses in securities due to the timing of capital share transactions. |
c | Not annualized. |
d | Annualized for periods of less than one year. |
e | Portfolio turnover rates exclude portfolio securities received or delivered as a result of processing capital share transactions in Creation Units. |
See notes to financial statements.
FINANCIAL HIGHLIGHTS | 85 |
Table of Contents
Financial Highlights (Continued)
iSHARES®, INC.
(For a share outstanding throughout each period)
iShares MSCI Germany Index Fund | ||||||||||||||||||||||||
Six months ended Feb. 28, 2007 (Unaudited) | Year ended Aug. 31, 2006 | Year ended Aug. 31, 2005 | Year ended Aug. 31, 2004 | Year ended Aug. 31, 2003 | Year ended Aug. 31, 2002 | |||||||||||||||||||
Net asset value, beginning of period | $ | 23.68 | $ | 19.08 | $ | 14.96 | $ | 12.57 | $ | 12.07 | $ | 15.19 | ||||||||||||
Income from investment operations: | ||||||||||||||||||||||||
Net investment income (loss)a | (0.01 | ) | 0.57 | 0.28 | 0.19 | 0.21 | 0.11 | |||||||||||||||||
Net realized and unrealized gain (loss)b | 4.39 | 4.15 | 4.03 | 2.40 | 0.41 | (3.23 | ) | |||||||||||||||||
Total from investment operations | 4.38 | 4.72 | 4.31 | 2.59 | 0.62 | (3.12 | ) | |||||||||||||||||
Less distributions from: | ||||||||||||||||||||||||
Net investment income | (0.51 | ) | (0.12 | ) | (0.19 | ) | (0.20 | ) | (0.12 | ) | – | |||||||||||||
Total distributions | (0.51 | ) | (0.12 | ) | (0.19 | ) | (0.20 | ) | (0.12 | ) | – | |||||||||||||
Net asset value, end of period | $ | 27.55 | $ | 23.68 | $ | 19.08 | $ | 14.96 | $ | 12.57 | $ | 12.07 | ||||||||||||
Total return | 18.55 | %c | 24.82 | % | 28.89 | % | 20.55 | % | 5.39 | % | (20.54 | )% | ||||||||||||
Ratios/Supplemental data: | ||||||||||||||||||||||||
Net assets, end of period (000s) | $ | 1,090,843 | $ | 802,795 | $ | 314,793 | $ | 98,764 | $ | 101,800 | $ | 94,160 | ||||||||||||
Ratio of expenses to average net assetsd | 0.52 | % | 0.54 | % | 0.57 | % | 0.80 | % | 0.84 | % | 0.84 | % | ||||||||||||
Ratio of net investment income (loss) to average net assetsd | (0.08 | )% | 2.62 | % | 1.54 | % | 1.27 | % | 1.98 | % | 0.77 | % | ||||||||||||
Portfolio turnover ratee | 2 | % | 12 | % | 9 | % | 9 | % | 11 | % | 9 | % |
a | Based on average shares outstanding throughout each period. |
b | The amounts reported may not accord with the change in aggregate gains and losses in securities due to the timing of capital share transactions. |
c | Not annualized. |
d | Annualized for periods of less than one year. |
e | Portfolio turnover rates exclude portfolio securities received or delivered as a result of processing capital share transactions in Creation Units. |
See notes to financial statements.
86 | 2007 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Financial Highlights (Continued)
iSHARES®, INC.
(For a share outstanding throughout each period)
iShares MSCI Italy Index Fund | ||||||||||||||||||||||||
Six months ended Feb. 28, 2007 (Unaudited) | Year ended Aug. 31, 2006 | Year ended Aug. 31, 2005 | Year ended Aug. 31, 2004 | Year ended Aug. 31, 2003 | Year ended Aug. 31, 2002 | |||||||||||||||||||
Net asset value, beginning of period | $ | 30.48 | $ | 25.77 | $ | 20.21 | $ | 16.67 | $ | 15.15 | $ | 17.79 | ||||||||||||
Income from investment operations: | ||||||||||||||||||||||||
Net investment incomea | 0.13 | 1.07 | 0.78 | 0.56 | 0.43 | 0.37 | ||||||||||||||||||
Net realized and unrealized gain (loss)b | 3.02 | 4.15 | 5.42 | 3.59 | 1.47 | (3.01 | ) | |||||||||||||||||
Total from investment operations | 3.15 | 5.22 | 6.20 | 4.15 | 1.90 | (2.64 | ) | |||||||||||||||||
Less distributions from: | ||||||||||||||||||||||||
Net investment income | (0.67 | ) | (0.51 | ) | (0.64 | ) | (0.61 | ) | (0.38 | ) | – | |||||||||||||
Total distributions | (0.67 | ) | (0.51 | ) | (0.64 | ) | (0.61 | ) | (0.38 | ) | – | |||||||||||||
Net asset value, end of period | $ | 32.96 | $ | 30.48 | $ | 25.77 | $ | 20.21 | $ | 16.67 | $ | 15.15 | ||||||||||||
Total return | 10.32 | %c | 20.61 | % | 30.74 | % | 25.09 | % | 12.79 | % | (14.84 | )% | ||||||||||||
Ratios/Supplemental data: | ||||||||||||||||||||||||
Net assets, end of period (000s) | $ | 207,658 | $ | 146,324 | $ | 42,526 | $ | 27,279 | $ | 29,997 | $ | 29,538 | ||||||||||||
Ratio of expenses to average net assetsd | 0.52 | % | 0.54 | % | 0.57 | % | 0.83 | % | 0.84 | % | 0.84 | % | ||||||||||||
Ratio of expenses to average net assets exclusive of foreign taxesd | n/a | n/a | n/a | 0.79 | % | n/a | n/a | |||||||||||||||||
Ratio of net investment income to average net assetsd | 0.82 | % | 3.87 | % | 3.18 | % | 2.85 | % | 2.84 | % | 2.34 | % | ||||||||||||
Portfolio turnover ratee | 5 | % | 15 | % | 18 | % | 9 | % | 22 | % | 10 | % |
a | Based on average shares outstanding throughout each period. |
b | The amounts reported may not accord with the change in aggregate gains and losses in securities due to the timing of capital share transactions. |
c | Not annualized. |
d | Annualized for periods of less than one year. |
e | Portfolio turnover rates exclude portfolio securities received or delivered as a result of processing capital share transactions in Creation Units. |
See notes to financial statements.
FINANCIAL HIGHLIGHTS | 87 |
Table of Contents
Financial Highlights (Continued)
iSHARES®, INC.
(For a share outstanding throughout each period)
iShares MSCI Netherlands Index Fund | ||||||||||||||||||||||||
Six months ended Feb. 28, 2007 (Unaudited) | Year ended Aug. 31, 2006 | Year ended Aug. 31, 2005 | Year ended Aug. 31, 2004 | Year ended Aug. 31, 2003 | Year ended Aug. 31, 2002 | |||||||||||||||||||
Net asset value, beginning of period | $ | 24.17 | $ | 19.10 | $ | 15.70 | $ | 14.31 | $ | 14.69 | $ | 18.59 | ||||||||||||
Income from investment operations: | ||||||||||||||||||||||||
Net investment incomea | 0.01 | 0.60 | 0.57 | 0.39 | 0.30 | 0.25 | ||||||||||||||||||
Net realized and unrealized gain (loss)b | 2.61 | 4.95 | 3.09 | 1.37 | (0.43 | ) | (4.11 | ) | ||||||||||||||||
Total from investment operations | 2.62 | 5.55 | 3.66 | 1.76 | (0.13 | ) | (3.86 | ) | ||||||||||||||||
Less distributions from: | ||||||||||||||||||||||||
Net investment income | (0.45 | ) | (0.48 | ) | (0.26 | ) | (0.37 | ) | (0.25 | ) | (0.04 | ) | ||||||||||||
Total distributions | (0.45 | ) | (0.48 | ) | (0.26 | ) | (0.37 | ) | (0.25 | ) | (0.04 | ) | ||||||||||||
Net asset value, end of period | $ | 26.34 | $ | 24.17 | $ | 19.10 | $ | 15.70 | $ | 14.31 | $ | 14.69 | ||||||||||||
Total return | 10.87 | %c | 29.53 | % | 23.40 | % | 12.28 | % | (0.78 | )% | (20.79 | )% | ||||||||||||
Ratios/Supplemental data: | ||||||||||||||||||||||||
Net assets, end of period (000s) | $ | 183,059 | $ | 109,991 | $ | 63,974 | $ | 28,265 | $ | 18,599 | $ | 19,103 | ||||||||||||
Ratio of expenses to average net assetsd | 0.52 | % | 0.54 | % | 0.57 | % | 0.78 | % | 0.84 | % | 0.84 | % | ||||||||||||
Ratio of net investment income to average net assetsd | 0.05 | % | 2.78 | % | 3.13 | % | 2.45 | % | 2.37 | % | 1.48 | % | ||||||||||||
Portfolio turnover ratee | 3 | % | 17 | % | 6 | % | 9 | % | 18 | % | 15 | % |
a | Based on average shares outstanding throughout each period. |
b | The amounts reported may not accord with the change in aggregate gains and losses in securities due to the timing of capital share transactions. |
c | Not annualized. |
d | Annualized for periods of less than one year. |
e | Portfolio turnover rates exclude portfolio securities received or delivered as a result of processing capital share transactions in Creation Units. |
See notes to financial statements.
88 | 2007 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Financial Highlights (Continued)
iSHARES®, INC.
(For a share outstanding throughout each period)
iShares MSCI Spain Index Fund | ||||||||||||||||||||||||
Six months ended Feb. 28, 2007 (Unaudited) | Year ended Aug. 31, 2006 | Year ended Aug. 31, 2005 | Year ended Aug. 31, 2004 | Year ended Aug. 31, 2003 | Year ended Aug. 31, 2002 | |||||||||||||||||||
Net asset value, beginning of period | $ | 44.81 | $ | 35.70 | $ | 27.55 | $ | 22.39 | $ | 17.95 | $ | 21.33 | ||||||||||||
Income from investment operations: | ||||||||||||||||||||||||
Net investment incomea | 0.50 | 1.07 | 0.79 | 0.44 | 0.24 | 0.17 | ||||||||||||||||||
Net realized and unrealized gain (loss)b | 9.35 | 8.78 | 7.97 | 4.99 | 4.36 | (3.55 | ) | |||||||||||||||||
Total from investment operations | 9.85 | 9.85 | 8.76 | 5.43 | 4.60 | (3.38 | ) | |||||||||||||||||
Less distributions from: | ||||||||||||||||||||||||
Net investment income | (0.38 | ) | (0.74 | ) | (0.61 | ) | (0.27 | ) | (0.16 | ) | – | |||||||||||||
Total distributions | (0.38 | ) | (0.74 | ) | (0.61 | ) | (0.27 | ) | (0.16 | ) | – | |||||||||||||
Net asset value, end of period | $ | 54.28 | $ | 44.81 | $ | 35.70 | $ | 27.55 | $ | 22.39 | $ | 17.95 | ||||||||||||
Total return | 21.99 | %c | 28.09 | % | 31.85 | % | 24.28 | % | 25.81 | % | (15.85 | )% | ||||||||||||
Ratios/Supplemental data: | ||||||||||||||||||||||||
Net assets, end of period (000s) | $ | 659,468 | $ | 178,130 | $ | 66,945 | $ | 45,456 | $ | 50,372 | $ | 18,850 | ||||||||||||
Ratio of expenses to average net assetsd | 0.52 | % | 0.54 | % | 0.57 | % | 0.80 | % | 0.84 | % | 0.84 | % | ||||||||||||
Ratio of net investment income to average net assetsd | 1.94 | % | 2.67 | % | 2.33 | % | 1.64 | % | 1.22 | % | 0.85 | % | ||||||||||||
Portfolio turnover ratee | 6 | % | 6 | % | 8 | % | 6 | % | 17 | % | 14 | % |
a | Based on average shares outstanding throughout each period. |
b | The amounts reported may not accord with the change in aggregate gains and losses in securities due to the timing of capital share transactions. |
c | Not annualized. |
d | Annualized for periods of less than one year. |
e | Portfolio turnover rates exclude portfolio securities received or delivered as a result of processing capital share transactions in Creation Units. |
See notes to financial statements.
FINANCIAL HIGHLIGHTS | 89 |
Table of Contents
Financial Highlights (Continued)
iSHARES®, INC.
(For a share outstanding throughout each period)
iShares MSCI Sweden Index Fund | ||||||||||||||||||||||||
Six months ended Feb. 28, 2007 (Unaudited) | Year ended Aug. 31, 2006 | Year ended Aug. 31, 2005 | Year ended Aug. 31, 2004 | Year ended Aug. 31, 2003 | Year ended Aug. 31, 2002 | |||||||||||||||||||
Net asset value, beginning of period | $ | 25.88 | $ | 21.58 | $ | 16.82 | $ | 12.59 | $ | 9.88 | $ | 12.88 | ||||||||||||
Income from investment operations: | ||||||||||||||||||||||||
Net investment incomea | 0.02 | 0.76 | 0.46 | 0.28 | 0.25 | 0.12 | ||||||||||||||||||
Net realized and unrealized gain (loss)b | 5.88 | 3.96 | 4.45 | 4.20 | 2.58 | (3.12 | ) | |||||||||||||||||
Total from investment operations | 5.90 | 4.72 | 4.91 | 4.48 | 2.83 | (3.00 | ) | |||||||||||||||||
Less distributions from: | ||||||||||||||||||||||||
Net investment income | (0.34 | ) | (0.42 | ) | (0.15 | ) | (0.25 | ) | (0.12 | ) | – | |||||||||||||
Total distributions | (0.34 | ) | (0.42 | ) | (0.15 | ) | (0.25 | ) | (0.12 | ) | – | |||||||||||||
Net asset value, end of period | $ | 31.44 | $ | 25.88 | $ | 21.58 | $ | 16.82 | $ | 12.59 | $ | 9.88 | ||||||||||||
Total return | 22.79 | %c | 22.16 | % | 29.21 | % | 35.81 | % | 29.04 | % | (23.29 | )% | ||||||||||||
Ratios/Supplemental data: | ||||||||||||||||||||||||
Net assets, end of period (000s) | $ | 379,600 | $ | 151,427 | $ | 61,513 | $ | 27,758 | $ | 16,992 | $ | 8,154 | ||||||||||||
Ratio of expenses to average net assetsd | 0.52 | % | 0.54 | % | 0.58 | % | 0.92 | % | 0.84 | % | 0.84 | % | ||||||||||||
Ratio of expenses to average net assets exclusive of foreign taxesd | n/a | n/a | 0.57 | % | 0.79 | % | n/a | n/a | ||||||||||||||||
Ratio of net investment income to average net assetsd | 0.10 | % | 3.13 | % | 2.28 | % | 1.74 | % | 2.44 | % | 0.98 | % | ||||||||||||
Portfolio turnover ratee | 2 | % | 14 | % | 6 | % | 9 | % | 12 | % | 31 | % |
a | Based on average shares outstanding throughout each period. |
b | The amounts reported may not accord with the change in aggregate gains and losses in securities due to the timing of capital share transactions. |
c | Not annualized. |
d | Annualized for periods of less than one year. |
e | Portfolio turnover rates exclude portfolio securities received or delivered as a result of processing capital share transactions in Creation Units. |
See notes to financial statements.
90 | 2007 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Financial Highlights (Continued)
iSHARES®, INC.
(For a share outstanding throughout each period)
iShares MSCI Switzerland Index Fund | ||||||||||||||||||||||||
Six months ended Feb. 28, 2007 (Unaudited) | Year ended Aug. 31, 2006 | Year ended Aug. 31, 2005 | Year ended Aug. 31, 2004 | Year ended Aug. 31, 2003 | Year ended Aug. 31, 2002 | |||||||||||||||||||
Net asset value, beginning of period | $ | 22.49 | $ | 17.63 | $ | 14.58 | $ | 12.23 | $ | 11.59 | $ | 12.95 | ||||||||||||
Income from investment operations: | ||||||||||||||||||||||||
Net investment income (loss)a | (0.04 | ) | 0.27 | 0.22 | 0.09 | 0.05 | 0.03 | |||||||||||||||||
Net realized and unrealized gain (loss)b | 2.56 | 4.71 | 2.92 | 2.31 | 0.62 | (1.38 | ) | |||||||||||||||||
Total from investment operations | 2.52 | 4.98 | 3.14 | 2.40 | 0.67 | (1.35 | ) | |||||||||||||||||
Less distributions from: | ||||||||||||||||||||||||
Net investment income | (0.19 | ) | (0.12 | ) | (0.09 | ) | (0.05 | ) | (0.03 | ) | (0.01 | ) | ||||||||||||
Total distributions | (0.19 | ) | (0.12 | ) | (0.09 | ) | (0.05 | ) | (0.03 | ) | (0.01 | ) | ||||||||||||
Net asset value, end of period | $ | 24.82 | $ | 22.49 | $ | 17.63 | $ | 14.58 | $ | 12.23 | $ | 11.59 | ||||||||||||
Total return | 11.22 | %c | 28.36 | % | 21.54 | % | 19.56 | % | 5.89 | % | (10.47 | )% | ||||||||||||
Ratios/Supplemental data: | ||||||||||||||||||||||||
Net assets, end of period (000s) | $ | 263,723 | $ | 188,319 | $ | 79,324 | $ | 41,920 | $ | 33,643 | $ | 31,883 | ||||||||||||
Ratio of expenses to average net assetsd | 0.52 | % | 0.54 | % | 0.57 | % | 0.79 | % | 0.84 | % | 0.84 | % | ||||||||||||
Ratio of net investment income (loss) to average net assetsd | (0.34 | )% | 1.34 | % | 1.34 | % | 0.64 | % | 0.43 | % | 0.20 | % | ||||||||||||
Portfolio turnover ratee | 3 | % | 11 | % | 5 | % | 4 | % | 10 | % | 12 | % |
a | Based on average shares outstanding throughout each period. |
b | The amounts reported may not accord with the change in aggregate gains and losses in securities due to the timing of capital share transactions. |
c | Not annualized. |
d | Annualized for periods of less than one year. |
e | Portfolio turnover rates exclude portfolio securities received or delivered as a result of processing capital share transactions in Creation Units. |
See notes to financial statements.
FINANCIAL HIGHLIGHTS | 91 |
Table of Contents
Financial Highlights (Continued)
iSHARES®, INC.
(For a share outstanding throughout each period)
iShares MSCI United Kingdom Index Fund | ||||||||||||||||||||||||
Six months ended Feb. 28, 2007 (Unaudited) | Year ended Aug. 31, 2006 | Year ended Aug. 31, 2005 | Year ended Aug. 31, 2004 | Year ended Aug. 31, 2003 | Year ended Aug. 31, 2002 | |||||||||||||||||||
Net asset value, beginning of period | $ | 21.92 | $ | 18.74 | $ | 15.72 | $ | 13.00 | $ | 12.77 | $ | 15.11 | ||||||||||||
Income from investment operations: | ||||||||||||||||||||||||
Net investment incomea | 0.22 | 0.97 | 0.60 | 0.48 | 0.39 | 0.48 | ||||||||||||||||||
Net realized and unrealized gain (loss)b | 1.77 | 2.79 | 2.76 | 2.72 | 0.12 | (2.60 | ) | |||||||||||||||||
Total from investment operations | 1.99 | 3.76 | 3.36 | 3.20 | 0.51 | (2.12 | ) | |||||||||||||||||
Less distributions from: | ||||||||||||||||||||||||
Net investment income | (0.81 | ) | (0.58 | ) | (0.34 | ) | (0.48 | ) | (0.28 | ) | (0.22 | ) | ||||||||||||
Total distributions | (0.81 | ) | (0.58 | ) | (0.34 | ) | (0.48 | ) | (0.28 | ) | (0.22 | ) | ||||||||||||
Net asset value, end of period | $ | 23.10 | $ | 21.92 | $ | 18.74 | $ | 15.72 | $ | 13.00 | $ | 12.77 | ||||||||||||
Total return | 9.08 | %c | 20.61 | % | 21.53 | % | 24.77 | % | 4.20 | % | (14.19 | )% | ||||||||||||
Ratios/Supplemental data: | ||||||||||||||||||||||||
Net assets, end of period (000s) | $ | 1,081,079 | $ | 872,409 | $ | 464,850 | $ | 452,870 | $ | 150,809 | $ | 120,067 | ||||||||||||
Ratio of expenses to average net assetsd | 0.52 | % | 0.54 | % | 0.57 | % | 0.77 | % | 0.84 | % | 0.84 | % | ||||||||||||
Ratio of net investment income to average net assetsd | 1.89 | % | 4.81 | % | 3.39 | % | 3.11 | % | 3.23 | % | 3.39 | % | ||||||||||||
Portfolio turnover ratee | 3 | % | 10 | % | 11 | % | 6 | % | 6 | % | 14 | % |
a | Based on average shares outstanding throughout each period. |
b | The amounts reported may not accord with the change in aggregate gains and losses in securities due to the timing of capital share transactions. |
c | Not annualized. |
d | Annualized for periods of less than one year. |
e | Portfolio turnover rates exclude portfolio securities received or delivered as a result of processing capital share transactions in Creation Units. |
See notes to financial statements.
92 | 2007 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Notes to 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, 2007, 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 that market’s 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.
Pursuant to 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
NOTESTO FINANCIAL STATEMENTS | 93 |
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Notes to Financial Statements (Unaudited) (Continued)
iSHARES®, INC.
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”).
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 rate different 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 dates 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
Certain countries may levy taxes on stock dividends (based on the par value of the stock dividends received) and other taxable corporate events (i.e. spin-offs and tender offers) by companies whose securities are held by the Funds. These foreign taxes, if any, are paid by the Funds receiving the stock dividends or holding the securities subject to the taxable corporate event, and 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, 2007.
94 | 2007 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
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Notes to Financial Statements (Unaudited) (Continued)
iSHARES®, INC.
The Funds had tax basis net capital loss carryforwards as of August 31, 2006, the tax year-end of the Funds, as follows:
iShares MSCI Index Fund | Expiring 2008 | Expiring 2009 | Expiring 2010 | Expiring 2011 | Expiring 2012 | Expiring 2013 | Expiring 2014 | Total | ||||||||||||||||
Austria | $ | 491,457 | $ | 336,553 | $ | 1,291,324 | $ | 370,948 | $ | 855,364 | $ | – | $ | – | $ | 3,345,646 | ||||||||
Belgium | – | 59,876 | 1,677,678 | 117,767 | 175,781 | 33,969 | – | 2,065,071 | ||||||||||||||||
EMU | – | – | – | – | 4,037,607 | 1,873,963 | – | 5,911,570 | ||||||||||||||||
France | – | – | 2,436,748 | 236,944 | 2,400,550 | – | – | 5,074,242 | ||||||||||||||||
Germany | – | – | 8,697,227 | 5,469,732 | 8,656,712 | 2,241,687 | – | 25,065,358 | ||||||||||||||||
Italy | – | – | 2,675,493 | 848,408 | 541,980 | 527,327 | – | 4,593,208 | ||||||||||||||||
Netherlands | – | 60,885 | 3,222,792 | 1,497,810 | 2,481,175 | 129,137 | 403,525 | 7,795,324 | ||||||||||||||||
Spain | – | – | 1,083,394 | 678,910 | 1,582,094 | – | – | 3,344,398 | ||||||||||||||||
Sweden | – | 89,443 | 3,350,244 | 1,577,551 | 1,149,514 | – | 107,613 | 6,274,365 | ||||||||||||||||
Switzerland | – | – | 2,501,682 | 1,018,305 | 2,149,171 | 354,252 | – | 6,023,410 | ||||||||||||||||
United Kingdom | – | – | 9,945,254 | 6,448,554 | 4,272,059 | 1,517,783 | 7,063,063 | 29,246,713 |
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 marked-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, 2007, gross unrealized appreciation and gross unrealized depreciation based on cost for federal income tax purposes were as follows:
iShares MSCI Index Fund | Tax Cost | Gross Unrealized Appreciation | Gross Unrealized Depreciation | Net Unrealized Appreciation | |||||||||
Austria | $ | 358,787,664 | $ | 80,288,990 | $ | – | $ | 80,288,990 | |||||
Belgium | 226,290,307 | 35,226,144 | (314,232 | ) | 34,911,912 | ||||||||
EMU | 2,020,521,323 | 409,457,277 | (4,833,308 | ) | 404,623,969 | ||||||||
France | 167,827,791 | 22,158,486 | (4,624,797 | ) | 17,533,689 | ||||||||
Germany | 918,282,305 | 190,333,837 | (3,645,744 | ) | 186,688,093 | ||||||||
Italy | 195,922,841 | 13,713,739 | (133,294 | ) | 13,580,445 | ||||||||
Netherlands | 164,059,273 | 20,438,897 | (162,165 | ) | 20,276,732 | ||||||||
Spain | 626,219,009 | 48,106,613 | (764,023 | ) | 47,342,590 | ||||||||
Sweden | 332,676,281 | 51,116,776 | (3,765,189 | ) | 47,351,587 | ||||||||
Switzerland | 207,415,307 | 55,888,215 | (81,678 | ) | 55,806,537 | ||||||||
United Kingdom | 902,494,814 | 175,889,385 | (1,247,958 | ) | 174,641,427 |
NOTESTO FINANCIAL STATEMENTS | 95 |
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Notes to 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 Fund Advisors (“BGFA”) manages the investment of each Fund’s assets. BGFA is a California corporation indirectly owned by Barclays Bank PLC. Under the Investment Advisory Agreement, BGFA is responsible for all 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 of the average daily 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 Average Daily Net Assets | |
0.59% | First $7 billion | |
0.54 | Over $7 billion, up to and including $11 billion | |
0.49 | Over $11 billion, up to and including $24 billion | |
0.44 | Over $24 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 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, 2007, BGI earned securities lending agent fees as follows:
iShares MSCI Index Fund | Securities Lending Agent Fees | ||
Austria | $ | 8,078 | |
Belgium | 1,764 | ||
EMU | 98,397 | ||
France | 3,430 | ||
Germany | 36,906 |
iShares MSCI Index Fund | Securities Lending Agent Fees | ||
Italy | $ | 11,232 | |
Netherlands | 2,167 | ||
Spain | 114,851 | ||
Sweden | 6,767 | ||
Switzerland | 938 |
96 | 2007 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
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Notes to Financial Statements (Unaudited) (Continued)
iSHARES®, INC.
Cross trades for the six months ended February 28, 2007, if any, were executed by the Funds pursuant to Rule 17a-7 under the 1940 Act. Cross trading is the buying or selling of portfolio securities between funds to which BGFA (oran 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.
Each Fund may invest in the Institutional Shares of certain money market funds managed by BGFA, the Funds’ investment adviser, including the Government Money Market Fund (“GMMF”), Institutional Money Market Fund (“IMMF”), Prime Money Market Fund (“PMMF”) and Treasury Money Market Fund (“TMMF”) of Barclays Global Investors Funds. The GMMF, IMMF, PMMF and TMMF 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, Prime Money Market Master Portfolio and Treasury Money Market Master Portfolio (collectively, the “Money Market Master Portfolios”), respectively, which are also managed by BGFA. While the GMMF, IMMF, PMMF and TMMF do not directly charge an investment advisory fee, the Money Market Master Portfolios in which they invest do charge an investment advisory fee. Income distributions from the GMMF, IMMF, PMMF and TMMF are declared daily and paid monthly from net investment income. Income distributions earned by the Funds from temporary cash investments are recorded as interest from affiliated issuers in the accompanying Statements of Operations. Income distributions earned by the Funds from the investment of securities lending collateral, if any, are included in securities lending income in the accompanying Statements of Operations.
The following table provides information about the direct investment by the iShares MSCI United Kingdom Index Fund (exclusive of short-term investments) in issuers of which BGFA is an affiliate, for the six months ended February 28, 2007.
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 | Net Realized Gain | ||||||||
Barclays PLC | 1,993 | 476 | 137 | 2,332 | $ | 33,823,495 | $ | 397,174 |
As of February 28, 2007, certain directors and officers of the Company are also officers of BGI and/or BGFA.
3. INVESTMENT PORTFOLIO TRANSACTIONS
Purchases and sales of investments (excluding in-kind transactions and short-term investments) for the six months ended February 28, 2007, were as follows:
iShares MSCI Index Fund | Purchases | Sales | ||||
Austria | $ | 28,585,520 | $ | 39,199,971 | ||
Belgium | 10,943,538 | 12,463,225 | ||||
EMU | 20,315,401 | 49,512,133 | ||||
France | 3,210,459 | 5,835,355 | ||||
Germany | 15,037,270 | 32,183,984 | ||||
Italy | 9,942,047 | 11,637,638 | ||||
Netherlands | 7,507,717 | 5,553,099 | ||||
Spain | 28,960,239 | 27,647,446 | ||||
Sweden | 4,872,074 | 7,539,197 | ||||
Switzerland | 6,176,292 | 6,190,781 | ||||
United Kingdom | 28,188,454 | 48,120,651 |
NOTESTO FINANCIAL STATEMENTS | 97 |
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Notes to Financial Statements (Unaudited) (Continued)
iSHARES®, INC.
In-kind transactions (see Note 4) for the six months ended February 28, 2007, were as follows:
iShares MSCI Index Fund | In-kind Purchases | In-kind Sales | ||||
Austria | $ | 47,330,510 | $ | 54,404,331 | ||
Belgium | 90,572,280 | 4,033,185 | ||||
EMU | 442,361,517 | 72,984,832 | ||||
France | 6,153,594 | 50,716,956 | ||||
Germany | 230,414,177 | 75,665,322 | ||||
Italy | 119,952,685 | 75,898,004 | ||||
Netherlands | 85,599,639 | 32,666,832 | ||||
Spain | 563,289,769 | 154,839,196 | ||||
Sweden | 185,349,201 | – | ||||
Switzerland | 59,111,576 | 6,317,462 | ||||
United Kingdom | 191,118,557 | 28,407,643 |
4. CAPITAL SHARE TRANSACTIONS
The Company is authorized to issue 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 |
iShares MSCI Index Fund | Authorized Shares | |
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. Investors purchasing and redeeming Creation Units pay a purchase transaction fee and a redemption transaction fee directly to Investors Bank, the administrator, to offset transfer and other transaction costs associated with the issuance and redemption of Creation Units.
5. LOANS OF PORTFOLIO SECURITIES
Each Fund may lend its investment securities to approved borrowers, such as brokers, dealers and other financial institutions. The borrower pledges and maintains with the Fund collateral consisting of cash, an irrevocable letter of credit issued by a bank, or securities issued or guaranteed by the U.S. Government. The initial collateral received by each Fund is required to have a value of at least 102% of the market
98 | 2007 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
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Notes to Financial Statements (Unaudited) (Continued)
iSHARES®, INC.
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, 2007, 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 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 or non-U.S. Government debt securities. The market value of the securities on loan as of February 28, 2007 and the value of the related collateral are disclosed in the Statements of Assets and Liabilities. Securities lending income, as disclosed in the Funds’ Statements of Operations, represents the income earned from the investment of the cash collateral, net of rebates paid to, or fees paid by, borrowers and less the fees paid to BGI as securities lending agent.
6. RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS
In June 2006, the Financial Accounting Standards Board (“FASB”) issued FASB Interpretation No. 48 (“FIN 48”), “Accounting for Uncertainty in Income Taxes – an interpretation of FASB Statement No. 109.” FIN 48 clarifies the accounting for uncertainty in income taxes recognized in accordance with FASB Statement No. 109, “Accounting for Income Taxes.” This interpretation prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. It also provides guidance on de-recognition, classification, interest and penalties, accounting in interim periods, disclosure and transition. FIN 48 is effective for fiscal years beginning after December 15, 2006. The SEC staff has stated that it would not object if a fund does not implement FIN 48 in its NAV calculation until the date of the fund’s last NAV calculation in the first required financial statement reporting period for its fiscal year beginning after December 15, 2006. The Company is currently evaluating the impact of applying the various provisions of FIN 48.
In September 2006, FASB issued Statement of Financial Accounting Standards No. 157 (“FAS 157”), “Fair Value Measurements.” FAS 157 defines fair value, establishes a framework for measuring fair value in accordance with generally accepted accounting principles and expands disclosure about fair value measurements. FAS 157 is effective for fiscal years beginning after November 15, 2007. The Company is currently evaluating the impact the adoption of FAS 157 will have on the Funds’ financial statement disclosures.
NOTESTO FINANCIAL STATEMENTS | 99 |
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Notes:
NOTES | 101 |
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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 Domestic Subsector Index Funds
iShares Dow Jones U.S. Aerospace & Defense (ITA)
iShares Dow Jones U.S. Broker-Dealers (IAI)
iShares Dow Jones U.S. Healthcare Providers (IHF)
iShares Dow Jones U.S. Home Construction (ITB)
iShares Dow Jones U.S. Insurance (IAK)
iShares Dow Jones U.S. Medical Devices (IHI)
iShares Dow Jones U.S. Oil & Gas Exploration & Production (IEO)
iShares Dow Jones U.S. Oil Equipment & Services (IEZ)
iShares Dow Jones U.S. Pharmaceuticals (IHE)
iShares Dow Jones U.S. Regional Banks (IAT)
iShares Global Index Funds
iShares S&P Global 100 (IOO)
iShares S&P Global Consumer Discretionary Sector (RXI)
iShares S&P Global Consumer Staples Sector (KXI)
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 Industrials Sector (EXI)
iShares S&P Global Materials Sector (MXI)
iShares S&P Global Technology Sector (IXN)
iShares S&P Global Telecommunications Sector (IXP)
iShares S&P Global Utilities Sector (JXI)
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 Short Treasury (SHV)
iShares Lehman 1-3 Year Treasury (SHY)
iShares Lehman 3-7 Year Treasury (IEI)
iShares Lehman 7-10 Year Treasury (IEF)
iShares Lehman 10-20 Year Treasury (TLH)
iShares Lehman 20+ Year Treasury (TLT)
iShares Lehman TIPS (TIP)
iShares Lehman Credit (CFT)
iShares Lehman 1-3 Year Credit (CSJ)
iShares Lehman Intermediate Credit (CIU)
iShares iBoxx $ Investment Grade Corporate (LQD)
iShares Lehman Government/Credit (GBF)
iShares Lehman Intermediate Government/Credit (GVI)
iShares Lehman MBS Fixed-Rate (MBB)
iShares iBoxx $ High Yield Corporate (HYG)
iShares Specialty Index Funds
iShares KLD Select SocialSM (KLD)
iShares KLD 400 Social (DSI)
iShares Dow Jones Select Dividend (DVY)
iShares S&P U.S. Preferred Stock (PFF)
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 (“FXI”), iBoxx, KLD Research & Analytics, Inc., Morgan Stanley Capital International, Morningstar, Inc., The Nasdaq Stock Market, Inc., New York Stock Exchange LLC, 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. iBoxx is a registered trademark of International Index Company Limited. “Goldman Sachs®” is a trademark of Goldman, Sachs & Co. FXI does not make any warranty regarding the FTSE/Xinhua Index. All rights in the FTSE/Xinhua Index vest in FXI. “FTSE” is a trade and service mark of London Stock Exchange and The Financial Times; “Xinhua” is a trade and service mark of Xinhua Financial Network Limited.
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 2007 Semi-Annual Report.
4322-iS-0407
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iSHARES® MSCI AUSTRALIA INDEX FUND
Performance as of February 28, 2007
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 represented by the MSCI Australia Index (the “Index”). The Fund invests in a representative sample of securities in the Index, which has a similar investment profile as the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. For the six-month period ended February 28, 2007, the Fund returned 18.89%, while the Index returned 18.66%.
Average Annual Total Returns | ||||||||||||||||
Year Ended 2/28/07 | Five Years Ended 2/28/07 | Ten Years Ended 2/28/07 | ||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||
29.18% | 29.74% | 28.60% | 25.15% | 25.11% | 24.64% | 12.09% | 12.10% | 12.22% | ||||||||
Cumulative Total Returns | ||||||||||||||||
Year Ended 2/28/07 | Five Years Ended 2/28/07 | Ten Years Ended 2/28/07 | ||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||
29.18% | 29.74% | 28.60% | 206.97% | 206.58% | 200.81% | 213.17% | 213.38% | 216.73% |
“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. 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 2/28/07 | |||
Sector | Percentage of Net Assets | ||
Financial | 48.87 | % | |
Basic Materials | 16.60 | ||
Consumer Non-Cyclical | 11.68 | ||
Industrial | 8.91 | ||
Consumer Cyclical | 4.98 | ||
Energy | 3.56 | ||
Communications | 2.71 | ||
Utilities | 1.49 | ||
Technology | 0.48 | ||
Short-Term and Other Net Assets | 0.72 | ||
TOTAL | 100.00 | % | |
TEN LARGEST FUND HOLDINGS As of 2/28/07 | |||
Security | Percentage of Net Assets | ||
BHP Billiton Ltd. | 10.05 | % | |
National Australia Bank Ltd. | 6.96 | ||
Commonwealth Bank of Australia | 6.82 | ||
Australia & New Zealand Banking Group Ltd. | 5.71 | ||
Westpac Banking Corp. | 4.97 | ||
Westfield Group | 3.47 | ||
Woolworths Ltd. | 3.47 | ||
QBE Insurance Group Ltd. | 2.73 | ||
Rio Tinto Ltd. | 2.29 | ||
Brambles Ltd. | 2.18 | ||
TOTAL | 48.65 | % | |
FUND PERFORMANCE OVERVIEWS | 1 |
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Fund Performance Overview
iSHARES® MSCI BRAZIL INDEX FUND
Performance as of February 28, 2007
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 represented by the MSCI Brazil Index (the “Index”). The Fund invests in a representative sample of securities in the Index, which has a similar investment profile as the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. For the six-month period ended February 28, 2007, the Fund returned 19.57%, while the Index returned 19.84%.
Average Annual Total Returns | ||||||||||||||||
Year Ended 2/28/07 | Five Years Ended 2/28/07 | Inception to 2/28/07 | ||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||
10.99% | 13.44% | 11.92% | 30.60% | 29.89% | 33.08% | 15.91% | 15.90% | 18.42% | ||||||||
Cumulative Total Returns | ||||||||||||||||
Year Ended 2/28/07 | Five Years Ended 2/28/07 | Inception to 2/28/07 | ||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||
10.99% | 13.44% | 11.92% | 279.98% | 269.68% | 317.36% | 166.54% | 166.41% | 207.29% |
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.
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 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 2/28/07 | |||
Sector | Percentage of Net Assets | ||
Basic Materials | 29.58 | % | |
Energy | 22.35 | ||
Financial | 17.21 | ||
Consumer Non-Cyclical | 8.90 | ||
Utilities | 7.39 | ||
Communications | 6.18 | ||
Industrial | 4.95 | ||
Consumer Cyclical | 2.87 | ||
Short-Term and Other Net Assets | 0.57 | ||
TOTAL | 100.00 | % | |
TEN LARGEST FUND HOLDINGS As of 2/28/07 | |||
Security | Percentage of Net Assets | ||
Petroleo Brasileiro SA Preferred | 12.37 | % | |
Companhia Vale do Rio Doce Class A Preferred | 11.09 | ||
Petroleo Brasileiro SA | 9.98 | ||
Companhia Vale do Rio Doce ADR | 9.01 | ||
Banco Bradesco SA Preferred | 6.86 | ||
Banco Itau Holding Financeira SA Preferred | 4.73 | ||
Unibanco Uniao de Bancos | |||
Brasileiros SA | 4.28 | ||
Companhia de Bebidas das Americas Preferred | 4.24 | ||
Gerdau SA Preferred | 2.29 | ||
Usinas Siderurgicas de Minas Gerais SA Class A Preferred | 2.00 | ||
TOTAL | 66.85 | % | |
2 | 2007 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Fund Performance Overview
iSHARES® MSCI CANADA INDEX FUND
Performance as of February 28, 2007
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 represented by the MSCI Canada Index (the “Index”). The Fund invests in a representative sample of securities in the Index, which has a similar investment profile as the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. For the six-month period ended February 28, 2007, the Fund returned 4.03%, while the Index returned 4.20%.
Average Annual Total Returns | ||||||||||||||||
Year Ended 2/28/07 | Five Years Ended 2/28/07 | Ten Years Ended 2/28/07 | ||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||
10.42% | 10.62% | 10.77% | 20.08% | 20.03% | 20.51% | 12.24% | 12.29% | 12.77% | ||||||||
Cumulative Total Returns | ||||||||||||||||
Year Ended 2/28/07 | Five Years Ended 2/28/07 | Ten Years Ended 2/28/07 | ||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||
10.42% | 10.62% | 10.77% | 149.62% | 149.16% | 154.21% | 217.18% | 218.76% | 232.70% |
“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. 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 2/28/07 | |||
Sector | Percentage of Net Assets | ||
Financial | 31.12 | % | |
Energy | 27.10 | ||
Basic Materials | 17.65 | ||
Communications | 6.80 | ||
Industrial | 5.16 | ||
Consumer Cyclical | 3.80 | ||
Technology | 3.15 | ||
Diversified | 2.26 | ||
Consumer Non-Cyclical | 2.06 | ||
Utilities | 0.69 | ||
Short-Term and Other Net Assets | 0.21 | ||
TOTAL | 100.00 | % | |
TEN LARGEST FUND HOLDINGS As of 2/28/07 | |||
Security | Percentage of Net Assets | ||
Royal Bank of Canada | 6.23 | % | |
Manulife Financial Corp. | 5.45 | ||
Bank of Nova Scotia | 4.52 | ||
EnCana Corp. | 4.11 | ||
Suncor Energy Inc. | 3.43 | ||
Bank of Montreal | 3.19 | ||
Canadian Imperial Bank of Commerce | 3.04 | ||
Canadian Natural Resources Ltd. | 2.85 | ||
Barrick Gold Corp. | 2.71 | ||
Sun Life Financial Inc. | 2.60 | ||
TOTAL | 38.13 | % | |
FUND PERFORMANCE OVERVIEWS | 3 |
Table of Contents
Fund Performance Overview
iSHARES® MSCI EMERGING MARKETS INDEX FUND
Performance as of February 28, 2007
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 securities in the Index, which has a similar investment profile as the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. For the six-month period ended February 28, 2007, the Fund returned 16.09%, while the Index returned 16.61%.
Average Annual Total Returns | ||||||||||
Year Ended 2/28/07 | Inception to 2/28/07 | |||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | |||||
15.87% | 17.32% | 17.05% | 37.36% | 37.54% | 37.17% |
Cumulative Total Returns | ||||
Inception to 2/28/07 | ||||
NAV | MARKET | INDEX | ||
244.75% | 246.51% | 243.02% |
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.
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 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 2/28/07 | |||
Sector | Percentage of Net Assets | ||
Financial | 20.37 | % | |
Energy | 14.96 | ||
Communications | 13.77 | ||
Basic Materials | 13.52 | ||
Technology | 10.58 | ||
Industrial | 9.86 | ||
Utilities | 4.67 | ||
Consumer Cyclical | 4.56 | ||
Consumer Non-Cyclical | 4.47 | ||
Diversified | 2.46 | ||
Exchange-Traded Funds | 0.55 | ||
Short-Term and Other Net Assets | 0.23 | ||
TOTAL | 100.00 | % | |
TEN LARGEST FUND HOLDINGS As of 2/28/07 | |||
Security | Percentage of Net Assets | ||
Samsung Electronics Co. Ltd. GDR (South Korea) | 4.15 | % | |
OAO Gazprom ADR (Russia) | 4.10 | ||
Taiwan Semiconductor Manufacturing Co. Ltd. ADR (Taiwan) | 3.67 | ||
POSCO ADR (South Korea) | 3.40 | ||
Kookmin Bank ADR (South Korea) | 2.95 | ||
Siliconware Precision Industries Co. ADR (Taiwan) | 2.24 | ||
LUKOIL ADR (Russia) | 1.98 | ||
Chunghwa Telecom Co. Ltd. Sponsored ADR (Taiwan) | 1.95 | ||
United Microelectronics Corp. ADR (Taiwan) | 1.94 | ||
China Mobile Ltd. (Hong Kong) | 1.92 | ||
TOTAL | 28.30 | % | |
4 | 2007 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Fund Performance Overview
iSHARES® MSCI HONG KONG INDEX FUND
Performance as of February 28, 2007
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 represented by the MSCI Hong Kong Index (the “Index”). The Fund invests in a representative sample of securities in the Index, which has a similar investment profile as the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. For the six-month period ended February 28, 2007, the Fund returned 14.13%, while the Index returned 14.46%.
Average Annual Total Returns | ||||||||||||||||
Year Ended 2/28/07 | Five Years Ended 2/28/07 | Ten Years Ended 2/28/07 | ||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||
21.57% | 20.62% | 22.15% | 15.25% | 14.98% | 16.22% | 3.48% | 3.35% | 5.17% | ||||||||
Cumulative Total Returns | ||||||||||||||||
Year Ended 2/28/07 | Five Years Ended 2/28/07 | Ten Years Ended 2/28/07 | ||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||
21.57% | 20.62% | 22.15% | 103.32% | 100.95% | 112.01% | 40.79% | 39.04% | 65.57% |
“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. 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 2/28/07 | |||
Sector | Percentage of Net Assets | ||
Financial | 45.63 | % | |
Diversified | 16.11 | ||
Utilities | 12.38 | ||
Consumer Cyclical | 11.98 | ||
Industrial | 6.68 | ||
Communications | 5.48 | ||
Basic Materials | 1.02 | ||
Technology | 0.64 | ||
Short-Term and Other Net Assets | 0.08 | ||
TOTAL | 100.00 | % | |
TEN LARGEST FUND HOLDINGS As of 2/28/07 | |||
Security | Percentage of Net Assets | ||
Hutchison Whampoa Ltd. | 8.92 | % | |
Cheung Kong (Holdings) Ltd. | 8.10 | ||
Sun Hung Kai Properties Ltd. | 7.14 | ||
CLP Holdings Ltd. | 5.84 | ||
Hong Kong Exchanges & Clearing Ltd. | 4.83 | ||
Esprit Holdings Ltd. | 4.77 | ||
Swire Pacific Ltd. Class A | 4.65 | ||
Hang Seng Bank Ltd. | 4.60 | ||
BOC Hong Kong Holdings Ltd. | 3.96 | ||
Bank of East Asia Ltd. | 3.65 | ||
TOTAL | 56.46 | % | |
FUND PERFORMANCE OVERVIEWS | 5 |
Table of Contents
Fund Performance Overview
iSHARES® MSCI MALAYSIA INDEX FUND
Performance as of February 28, 2007
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 represented by the MSCI Malaysia Index (the “Index”). The Fund invests in a representative sample of securities in the Index, which has a similar investment profile as the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities included in the Index. For the six-month period ended February 28, 2007, the Fund returned 33.96%, while the Index returned 34.66%.
Average Annual Total Returns | ||||||||||||||||
Year Ended 2/28/07 | Five Years Ended 2/28/07 | Ten Years Ended 2/28/07 | ||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||
41.64% | 38.66% | 42.67% | 16.06% | 15.60% | 17.18% | (1.75)% | (2.01)% | (0.80)% | ||||||||
Cumulative Total Returns | ||||||||||||||||
Year Ended 2/28/07 | Five Years Ended 2/28/07 | Ten Years Ended 2/28/07 | ||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||
41.64% | 38.66% | 42.67% | 110.54% | 106.40% | 120.95% | (16.21)% | (18.38)% | (7.68)% |
“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. Achieving such exceptional returns involves the risk of volatility and 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. As the Fund has a NAV 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. 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 2/28/07 | |||
Sector | Percentage of Net Assets | ||
Financial | 31.48 | % | |
Consumer Cyclical | 14.86 | ||
Consumer Non-Cyclical | 14.01 | ||
Industrial | 13.11 | ||
Communications | 9.84 | ||
Utilities | 8.85 | ||
Diversified | 5.80 | ||
Energy | 1.49 | ||
Technology | 0.35 | ||
Short-Term and Other Net Assets | 0.21 | ||
TOTAL | 100.00 | % | |
TEN LARGEST FUND HOLDINGS As of 2/28/07 | |||
Security | Percentage of Net Assets | ||
Malayan Banking Bhd | 9.74 | % | |
Bumiputra-Commerce Holdings Bhd | 8.41 | ||
IOI Corp. Bhd | 5.35 | ||
Tenaga Nasional Bhd | 5.22 | ||
Genting Bhd | 5.10 | ||
Sime Darby Bhd | 4.70 | ||
Malaysia International Shipping Corp. Bhd | 4.22 | ||
Maxis Communications Bhd | 4.19 | ||
Public Bank Bhd | 3.83 | ||
Telekom Malaysia Bhd | 3.48 | ||
TOTAL | 54.24 | % | |
6 | 2007 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Fund Performance Overview
iSHARES® MSCI MEXICO INDEX FUND
Performance as of February 28, 2007
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 represented by the MSCI Mexico Index (the “Index”). The Fund invests in a representative sample of securities in the Index, which has a similar investment profile as the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. For the six-month period ended February 28, 2007, the Fund returned 23.43%, while the Index returned 22.28%.
Average Annual Total Returns | ||||||||||||||||
Year Ended 2/28/07 | Five Years Ended 2/28/07 | Ten Years Ended 2/28/07 | ||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||
32.99% | 32.29% | 30.47% | 28.16% | 27.73% | 27.42% | 17.20% | 17.05% | 18.48% | ||||||||
Cumulative Total Returns | ||||||||||||||||
Year Ended 2/28/07 | Five Years Ended 2/28/07 | Ten Years Ended 2/28/07 | ||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||
32.99% | 32.29% | 30.47% | 245.78% | 239.99% | 235.91% | 388.87% | 382.79% | 445.09% |
“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. 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 2/28/07 | |||
Sector | Percentage of Net Assets | ||
Communications | 41.66 | % | |
Industrial | 19.74 | ||
Consumer Cyclical | 11.45 | ||
Consumer Non-Cyclical | 10.06 | ||
Basic Materials | 6.74 | ||
Financial | 5.74 | ||
Diversified | 4.53 | ||
Short-Term and Other Net Assets | 0.08 | ||
TOTAL | 100.00 | % | |
TEN LARGEST FUND HOLDINGS As of 2/28/07 | |||
Security | Percentage of Net Assets | ||
America Movil SAB de CV Series L | 24.17 | % | |
Cemex SA de CV Series CPO | 16.24 | ||
Telefonos de Mexico SA de CV Series L | 8.92 | ||
Fomento Economico Mexicano SAB | 4.76 | ||
Wal-Mart de Mexico SA de CV Series V | 4.75 | ||
Grupo Televisa SA Series CPO | 4.66 | ||
Grupo Financiero Banorte SAB de CV Series O | 4.39 | ||
Grupo Mexico SA de CV Series B | 3.34 | ||
Grupo Carso SA de CV Series A1 | 2.87 | ||
Grupo Modelo SA de CV Series C | 2.77 | ||
TOTAL | 76.87 | % | |
FUND PERFORMANCE OVERVIEWS | 7 |
Table of Contents
Fund Performance Overview
iSHARES® MSCI PACIFIC EX-JAPAN INDEX FUND
Performance as of February 28, 2007
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 represented by the MSCI Pacific ex-Japan Index (the “Index”). The Fund invests in a representative sample of securities in the Index, which has a similar investment profile as the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. For the six-month period ended February 28, 2007, the Fund returned 19.23%, while the Index returned 19.31%.
Average Annual Total Returns | ||||||||||||||||
Year Ended 2/28/07 | Five Years Ended 2/28/07 | Inception to 2/28/07 | ||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||
28.38% | 28.68% | 28.37% | 22.29% | 22.18% | 22.17% | 22.76% | 22.70% | 22.69% | ||||||||
Cumulative Total Returns | ||||||||||||||||
Year Ended 2/28/07 | Five Years Ended 2/28/07 | Inception to 2/28/07 | ||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||
28.38% | 28.68% | 28.37% | 173.54% | 172.30% | 172.21% | 199.40% | 198.57% | 198.59% |
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 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 2/28/07 | |||
Sector | Percentage of Net Assets | ||
Financial | 48.18 | % | |
Basic Materials | 11.26 | ||
Industrial | 9.06 | ||
Consumer Non-Cyclical | 7.95 | ||
Consumer Cyclical | 6.58 | ||
Communications | 5.71 | ||
Diversified | 3.99 | ||
Utilities | 3.69 | ||
Energy | 2.38 | ||
Technology | 0.67 | ||
Short-Term and Other Net Assets | 0.53 | ||
TOTAL | 100.00 | % | |
TEN LARGEST FUND HOLDINGS As of 2/28/07 | |||
Security | Percentage of Net Assets | ||
BHP Billiton Ltd. (Australia) | 6.68 | % | |
National Australia Bank Ltd. (Australia) | 4.63 | ||
Commonwealth Bank of Australia (Australia) | 4.51 | ||
Australia & New Zealand Banking Group Ltd. (Australia) | 3.78 | ||
Westpac Banking Corp. (Australia) | 3.28 | ||
Westfield Group (Australia) | 2.31 | ||
Woolworths Ltd. (Australia) | 2.30 | ||
Hutchison Whampoa Ltd. (Hong Kong) | 1.82 | ||
QBE Insurance Group Ltd. (Australia) | 1.81 | ||
Cheung Kong (Holdings) Ltd. (Hong Kong) | 1.66 | ||
TOTAL | 32.78 | % | |
8 | 2007 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Fund Performance Overview
iSHARES® MSCI SINGAPORE INDEX FUND
Performance as of February 28, 2007
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 represented by the MSCI Singapore Index (the “Index”). The Fund invests in a representative sample of securities in the Index, which has a similar investment profile as the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. For the six-month period ended February 28, 2007, the Fund returned 32.31%, while the Index returned 32.84%.
Average Annual Total Returns | ||||||||||||||||
Year Ended 2/28/07 | Five Years Ended 2/28/07 | Ten Years Ended 2/28/07 | ||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||
40.64% | 40.76% | 41.30% | 19.93% | 19.45% | 19.65% | 2.34% | 2.29% | 2.83% | ||||||||
Cumulative Total Returns | ||||||||||||||||
Year Ended 2/28/07 | Five Years Ended 2/28/07 | Ten Years Ended 2/28/07 | ||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||
40.64% | 40.76% | 41.30% | 148.08% | 143.18% | 145.26% | 26.03% | 25.42% | 32.20% |
“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. Achieving such exceptional returns involves the risk of volatility and 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. 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 2/28/07 | |||
Sector | Percentage of Net Assets | ||
Financial | 55.89 | % | |
Communications | 15.22 | ||
Industrial | 11.16 | ||
Diversified | 5.67 | ||
Consumer Cyclical | 5.23 | ||
Consumer Non-Cyclical | 4.46 | ||
Technology | 2.02 | ||
Energy | 0.25 | ||
Short-Term and Other Net Assets | 0.10 | ||
TOTAL | 100.00 | % | |
TEN LARGEST FUND HOLDINGS As of 2/28/07 | |||
Security | Percentage of Net Assets | ||
United Overseas Bank Ltd. | 12.52 | % | |
DBS Group Holdings Ltd. | 12.07 | ||
Singapore Telecommunications Ltd. | 11.78 | ||
Oversea-Chinese Banking Corp. | 10.60 | ||
Keppel Corp. Ltd. | 4.56 | ||
Singapore Airlines Ltd. | 4.41 | ||
CapitaLand Ltd. | 4.30 | ||
City Developments Ltd. | 3.76 | ||
Singapore Press Holdings Ltd. | 3.44 | ||
Singapore Exchange Ltd. | 2.69 | ||
TOTAL | 70.13 | % | |
FUND PERFORMANCE OVERVIEWS | 9 |
Table of Contents
Fund Performance Overview
iSHARES® MSCI SOUTH AFRICA INDEX FUND
Performance as of February 28, 2007
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 represented by the MSCI South Africa Index (the “Index”). The Fund invests in a representative sample of securities in the Index, which has a similar investment profile as the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. For the six-month period ended February 28, 2007, the Fund returned 20.57%, while the Index returned 21.12%.
Average Annual Total Returns | ||||||||||
Year Ended 2/28/07 | Inception to 2/28/07 | |||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | |||||
9.90% | 10.81% | 10.82% | 33.38% | 33.64% | 34.99% |
Cumulative Total Returns | ||||
Inception to 2/28/07 | ||||
NAV | MARKET | INDEX | ||
223.04% | 225.62% | 239.08% |
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.
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 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 2/28/07 | |||
Sector | Percentage of Net Assets | ||
Basic Materials | 26.05 | % | |
Financial | 21.60 | ||
Communications | 14.85 | ||
Consumer Cyclical | 9.95 | ||
Energy | 9.40 | ||
Diversified | 7.81 | ||
Industrial | 5.31 | ||
Consumer Non-Cyclical | 4.98 | ||
Short-Term and Other Net Assets | 0.05 | ||
TOTAL | 100.00 | % | |
TEN LARGEST FUND HOLDINGS As of 2/28/07 | |||
Security | Percentage of Net Assets | ||
Sasol Ltd. | 9.40 | % | |
Standard Bank Group Ltd. | 8.37 | ||
MTN Group Ltd. | 7.98 | ||
Impala Platinum Holdings Ltd. | 7.37 | ||
Gold Fields Ltd. | 5.15 | ||
Anglo Platinum Ltd. | 4.60 | ||
FirstRand Ltd. | 4.57 | ||
Naspers Ltd. | 3.55 | ||
Telkom South Africa Ltd. | 3.32 | ||
AngloGold Ashanti Ltd. | 3.24 | ||
TOTAL | 57.55 | % | |
10 | 2007 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Fund Performance Overview
iSHARES® MSCI SOUTH KOREA INDEX FUND
Performance as of February 28, 2007
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 represented by the MSCI Korea Index (the “Index”). The Fund invests in a representative sample of securities in the Index, which has a similar investment profile as the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. For the six-month period ended February 28, 2007, the Fund returned 8.13%, while the Index returned 7.61%.
Average Annual Total Returns | ||||||||||||||||
Year Ended 2/28/07 | Five Years Ended 2/28/07 | Inception to 2/28/07 | ||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||
6.38% | 2.77% | 6.30% | 19.45% | 18.62% | 21.37% | 14.46% | 14.15% | 15.09% | ||||||||
Cumulative Total Returns | ||||||||||||||||
Year Ended 2/28/07 | Five Years Ended 2/28/07 | Inception to 2/28/07 | ||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||
6.38% | 2.77% | 6.30% | 143.17% | 134.82% | 163.40% | 150.91% | 146.35% | 160.45% |
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.
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. As the Fund has a NAV 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 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 2/28/07 | |||
Sector | Percentage of Net Assets | ||
Industrial | 35.43 | % | |
Financial | 20.85 | ||
Consumer Cyclical | 13.56 | ||
Basic Materials | 9.95 | ||
Communications | 6.87 | ||
Consumer Non-Cyclical | 5.14 | ||
Energy | 3.39 | ||
Utilities | 3.00 | ||
Technology | 0.49 | ||
Short-Term and Other Net Assets | 1.32 | ||
TOTAL | 100.00 | % | |
TEN LARGEST FUND HOLDINGS As of 2/28/07 | |||
Security | Percentage of Net Assets | ||
Samsung Electronics Co. Ltd. | 18.28 | % | |
Kookmin Bank | 8.24 | ||
POSCO | 7.59 | ||
Shinhan Financial Group Ltd. | 3.29 | ||
Hyundai Motor Co. Ltd. | 3.08 | ||
Korea Electric Power Corp. | 3.00 | ||
SK Corp. | 2.51 | ||
Shinsegae Co. Ltd. | 2.33 | ||
Hyundai Heavy Industries Co. Ltd. | 2.21 | ||
KT&G Corp. | 1.88 | ||
TOTAL | 52.41 | % | |
FUND PERFORMANCE OVERVIEWS | 11 |
Table of Contents
Fund Performance Overview
iSHARES® MSCI TAIWAN INDEX FUND
Performance as of February 28, 2007
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 represented by the MSCI Taiwan Index (the “Index”). The Fund invests in a representative sample of securities in the Index, which has a similar investment profile as the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. For the six-month period ended February 28, 2007, the Fund returned 16.42%, while the Index returned 16.42%.
Average Annual Total Returns | ||||||||||||||||
Year Ended 2/28/07 | Five Years Ended 2/28/07 | Inception to 2/28/07 | ||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||
14.96% | 11.09% | 15.85% | 6.85% | 5.56% | 7.91% | (3.29)% | (3.77)% | (2.32)% | ||||||||
Cumulative Total Returns | ||||||||||||||||
Year Ended 2/28/07 | Five Years Ended 2/28/07 | Inception to 2/28/07 | ||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||
14.96% | 11.09% | 15.85% | 39.24% | 31.07% | 46.31% | (20.05)% | (22.67)% | (14.58)% |
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. As the Fund has a NAV 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 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 2/28/07 | |||
Sector | Percentage of Net Assets | ||
Technology | 36.68 | % | |
Industrial | 24.91 | ||
Financial | 17.09 | ||
Basic Materials | 10.74 | ||
Communications | 4.65 | ||
Consumer Cyclical | 3.56 | ||
Energy | 1.24 | ||
Consumer Non-Cyclical | 0.93 | ||
Short-Term and Other Net Assets | 0.20 | ||
TOTAL | 100.00 | % | |
TEN LARGEST FUND HOLDINGS As of 2/28/07 | |||
Security | Percentage of Net Assets | ||
Taiwan Semiconductor Manufacturing Co. Ltd. | 14.09 | % | |
Hon Hai Precision Industry Co. Ltd. | 9.15 | ||
Cathay Financial Holding Co. Ltd. | 3.89 | ||
United Microelectronics Corp. | 3.42 | ||
China Steel Corp. | 2.98 | ||
Chunghwa Telecom Co. Ltd. | 2.96 | ||
AU Optronics Corp. | 2.83 | ||
MediaTek Inc. | 2.74 | ||
Nan Ya Plastic Corp. | 2.73 | ||
Formosa Plastic Co. | 2.30 | ||
TOTAL | 47.09 | % | |
12 | 2007 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Shareholder Expenses (Unaudited)
iSHARES®, INC.
As a shareholder of a 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, 2006 to February 28, 2007.
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 (9/1/06) | Ending Account Value (2/28/07) | Annualized Expense Ratio | Expenses Paid During Period a (9/1/06 to 2/28/07) | |||||
Australia | |||||||||
Actual | $1,000.00 | $1,188.90 | 0.52 | % | $2.82 | ||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,022.20 | 0.52 | 2.61 | |||||
Brazil | |||||||||
Actual | 1,000.00 | 1,195.70 | 0.69 | 3.76 | |||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,021.40 | 0.69 | 3.46 | |||||
Canada | |||||||||
Actual | 1,000.00 | 1,040.30 | 0.52 | 2.63 | |||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,022.20 | 0.52 | 2.61 | |||||
Emerging Markets | |||||||||
Actual | 1,000.00 | 1,160.90 | 0.75 | 4.02 | |||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,021.10 | 0.75 | 3.76 |
SHAREHOLDER EXPENSES | 13 |
Table of Contents
Shareholder Expenses (Unaudited) (Continued)
iSHARES®, INC.
iShares MSCI Index Fund | Beginning Account Value (9/1/06) | Ending Account Value (2/28/07) | Annualized Expense Ratio | Expenses Paid During Period a (9/1/06 to 2/28/07) | |||||
Hong Kong | |||||||||
Actual | $1,000.00 | $1,141.30 | 0.52 | % | $2.76 | ||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,022.20 | 0.52 | 2.61 | |||||
Malaysia | |||||||||
Actual | 1,000.00 | 1,339.60 | 0.52 | 3.02 | |||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,022.20 | 0.52 | 2.61 | |||||
Mexico | |||||||||
Actual | 1,000.00 | 1,234.30 | 0.52 | 2.88 | |||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,022.20 | 0.52 | 2.61 | |||||
Pacific ex-Japan | |||||||||
Actual | 1,000.00 | 1,192.30 | 0.50 | 2.72 | |||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,022.30 | 0.50 | 2.51 | |||||
Singapore | |||||||||
Actual | 1,000.00 | 1,323.10 | 0.52 | 3.00 | |||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,022.20 | 0.52 | 2.61 | |||||
South Africa | |||||||||
Actual | 1,000.00 | 1,205.70 | 0.68 | 3.72 | |||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,021.40 | 0.68 | 3.41 | |||||
South Korea | |||||||||
Actual | 1,000.00 | 1,081.30 | 0.68 | 3.51 | |||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,021.40 | 0.68 | 3.41 | |||||
Taiwan | |||||||||
Actual | 1,000.00 | 1,164.20 | 0.68 | 3.65 | |||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,021.40 | 0.68 | 3.41 |
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 | 2007 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited)
iSHARES® MSCI AUSTRALIA INDEX FUND
February 28, 2007
Security | Shares | Value | |||
COMMON STOCKS – 99.28% | |||||
AIRLINES – 0.53% | |||||
Qantas Airways Ltd. | 1,194,246 | $ | 4,846,181 | ||
4,846,181 | |||||
APPAREL – 0.30% | |||||
Billabong International Ltd. | 206,727 | 2,793,573 | |||
2,793,573 | |||||
BANKS – 26.10% | |||||
Australia & New Zealand | |||||
Banking Group Ltd. | 2,280,622 | 52,652,572 | |||
Commonwealth Bank of Australia | 1,597,088 | 62,870,937 | |||
Macquarie Office Trust | 2,454,909 | 3,094,953 | |||
National Australia Bank Ltd. | 2,017,292 | 64,153,238 | |||
Suncorp-Metway Ltd.a | 700,660 | 12,018,891 | |||
Westpac Banking Corp. | 2,280,920 | 45,758,008 | |||
240,548,599 | |||||
BEVERAGES – 2.07% | |||||
Coca-Cola Amatil Ltd. | 647,903 | 4,221,960 | |||
Foster’s Group Ltd. | 2,510,487 | 12,501,834 | |||
Lion Nathan Ltd. | 365,389 | 2,386,759 | |||
19,110,553 | |||||
BIOTECHNOLOGY – 0.40% | |||||
Sonic Healthcare Ltd. | 327,868 | 3,632,311 | |||
3,632,311 | |||||
BUILDING MATERIALS – 3.11% | |||||
Boral Ltd. | 730,654 | 4,836,038 | |||
CSR Ltd. | 1,096,288 | 3,135,667 | |||
James Hardie Industries NV | 576,067 | 4,321,242 | |||
Rinker Group Ltd. | 1,112,796 | 16,379,140 | |||
28,672,087 | |||||
COMMERCIAL SERVICES – 3.24% | |||||
A.B.C. Learning Centres Ltd. | 441,811 | 2,381,175 | |||
Brambles Ltd.b | 1,925,629 | 20,119,390 | |||
Sydney Roads Group | 1,166,774 | 1,204,361 | |||
Transurban Group | 1,036,096 | 6,163,758 | |||
29,868,684 | |||||
COMPUTERS – 0.48% | |||||
Computershare Ltd. | 555,609 | 4,391,055 | |||
4,391,055 |
Security | Shares | Value | |||
DIVERSIFIED FINANCIAL SERVICES – 3.98% | |||||
ASX Ltd. | 212,182 | $ | 6,996,852 | ||
Babcock & Brown Ltd. | 284,080 | 5,730,325 | |||
Challenger Financial Services | |||||
Group Ltd. | 449,959 | 1,630,908 | |||
Macquarie Bank Ltd. | 310,714 | 19,338,892 | |||
Perpetual Ltd. | 50,890 | 2,991,369 | |||
36,688,346 | |||||
ELECTRIC – 0.74% | |||||
AGL Energy Ltd.b | 537,067 | 6,783,607 | |||
6,783,607 | |||||
ENGINEERING & CONSTRUCTION – 1.44% | |||||
Downer EDI Ltd. | 372,481 | 2,154,264 | |||
Leighton Holdings Ltd. | 171,875 | 4,211,839 | |||
Multiplex Group | 784,006 | 2,724,311 | |||
WorleyParsons Ltd. | 194,405 | 4,197,171 | |||
13,287,585 | |||||
ENTERTAINMENT – 2.05% | |||||
Aristocrat Leisure Ltd. | 435,274 | 5,761,966 | |||
Tabcorp Holdings Ltd. | 649,209 | 8,261,439 | |||
Tattersall’s Ltd. | 1,340,103 | 4,857,297 | |||
18,880,702 | |||||
FOOD – 3.72% | |||||
Goodman Fielder Ltd. | 1,322,106 | 2,354,363 | |||
Woolworths Ltd. | 1,490,569 | 31,946,233 | |||
34,300,596 | |||||
FOREST PRODUCTS & PAPER – 0.19% | |||||
PaperlinX Ltd. | 556,721 | 1,772,220 | |||
1,772,220 | |||||
GAS – 0.75% | |||||
Alinta Ltd. | 610,826 | 6,858,530 | |||
6,858,530 | |||||
HEALTH CARE – PRODUCTS – 0.33% | |||||
Cochlear Ltd. | 67,607 | 3,022,593 | |||
3,022,593 | |||||
HOUSEHOLD PRODUCTS & WARES – 0.16% | |||||
Pacific Brands Ltd. | 628,040 | 1,449,952 | |||
1,449,952 |
SCHEDULESOF INVESTMENTS | 15 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI AUSTRALIA INDEX FUND
February 28, 2007
Security | Shares | Value | |||
INSURANCE – 6.56% | |||||
AMP Ltd. | 2,322,607 | $ | 18,868,312 | ||
AXA Asia Pacific Holdings Ltd. | 1,080,758 | 6,344,295 | |||
Insurance Australia Group Ltd. | 2,145,980 | 10,111,731 | |||
QBE Insurance Group Ltd. | 998,042 | 25,165,030 | |||
60,489,368 | |||||
INVESTMENT COMPANIES – 1.55% | |||||
Macquarie Airports | 843,405 | 2,458,876 | |||
Macquarie Communications Infrastructure Group | 394,287 | 1,845,430 | |||
Macquarie Infrastructure Group | 3,297,451 | 9,977,190 | |||
14,281,496 | |||||
IRON & STEEL – 1.02% | |||||
BlueScope Steel Ltd. | 899,589 | 6,613,395 | |||
OneSteel Ltd. | 710,264 | 2,809,456 | |||
9,422,851 | |||||
MANUFACTURING – 2.59% | |||||
Ansell Ltd. | 183,741 | 1,686,672 | |||
Futuris Corp. Ltd. | 766,181 | 1,267,796 | |||
Orica Ltd. | 384,143 | 7,491,465 | |||
Wesfarmers Ltd. | 468,507 | 13,455,885 | |||
23,901,818 | |||||
MEDIA – 0.97% | |||||
APN News & Media Ltd. | 345,839 | 1,621,398 | |||
John Fairfax Holdings Ltd. | 1,257,849 | 4,767,297 | |||
Publishing & Broadcasting Ltd. | 169,043 | 2,561,387 | |||
8,950,082 | |||||
MINING – 15.39% | |||||
Alumina Ltd. | 1,443,382 | 7,665,489 | |||
BHP Billiton Ltd. | 4,332,780 | 92,622,200 | |||
Iluka Resources Ltd. | 290,740 | 1,351,623 | |||
Newcrest Mining Ltd. | 414,695 | 7,368,414 | |||
Paladin Resources Ltd.a,b | 522,978 | 3,749,933 | |||
Rio Tinto Ltd.a | 354,476 | 21,115,788 | |||
Zinifex Ltd. | 604,023 | 7,957,715 | |||
141,831,162 | |||||
OIL & GAS – 3.56% | |||||
Caltex Australia Ltd. | 166,130 | 2,923,045 | |||
Origin Energy Ltd. | 1,058,758 | 7,391,440 | |||
Santos Ltd. | 743,097 | 5,480,498 | |||
Woodside Petroleum Ltd. | 578,984 | 16,998,401 | |||
32,793,384 |
Security | Shares | Value | |||
PACKAGING & CONTAINERS – 0.67% | |||||
Amcor Ltd. | 1,077,351 | $ | 6,188,472 | ||
6,188,472 | |||||
PHARMACEUTICALS – 1.76% | |||||
CSL Ltd. | 226,016 | 13,828,635 | |||
Symbion Health Ltd. | 802,673 | 2,397,047 | |||
16,225,682 | |||||
REAL ESTATE – 10.68% | |||||
Centro Properties Group | 1,020,967 | 7,907,949 | |||
CFS Retail Property Trust | 1,698,235 | 3,211,498 | |||
Commonwealth Property Office Fund | 1,807,341 | 1,965,250 | |||
DB RREEF Trust | 3,320,038 | 4,564,962 | |||
GPT Group | 2,404,998 | 9,569,842 | |||
ING Industrial Fund | 1,040,290 | 1,950,878 | |||
Investa Property Group | 1,882,291 | 3,515,068 | |||
Lend Lease Corp. Ltd. | 445,742 | 6,339,564 | |||
Macquarie Goodman Group | 1,747,234 | 9,857,409 | |||
Mirvac Group | 1,227,312 | 5,473,562 | |||
Stockland | 1,779,291 | 12,099,194 | |||
Westfield Group | 1,866,187 | 31,982,549 | |||
98,437,725 | |||||
RETAIL – 2.10% | |||||
Coles Group Ltd. | 1,409,062 | 17,053,753 | |||
Harvey Norman Holdings Ltd. | 659,961 | 2,262,071 | |||
19,315,824 | |||||
TELECOMMUNICATIONS – 1.74% | |||||
Telstra Corp. Ltd. | 3,552,465 | 11,924,442 | |||
Telstra Corp. Ltd. | 1,852,954 | 4,131,899 | |||
16,056,341 | |||||
TRANSPORTATION – 1.10% | |||||
Toll Holdings Ltd. | 665,375 | 10,155,347 | |||
10,155,347 | |||||
TOTAL COMMON STOCKS | 914,956,726 |
16 | 2007 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI AUSTRALIA INDEX FUND
February 28, 2007
Security | Principal | Value | ||||
SHORT-TERM INVESTMENTS – 2.97% | ||||||
CERTIFICATES OF DEPOSITc – 0.14% | ||||||
Credit Suisse First Boston NY | ||||||
5.28% - 5.43%, | $ | 292,607 | $ | 292,607 | ||
Deutsche Bank AG | ||||||
5.35%, 08/08/07 | 487,679 | 487,679 | ||||
Washington Mutual Bank | ||||||
5.33%, 03/19/07 | 487,679 | 487,679 | ||||
1,267,965 | ||||||
COMMERCIAL PAPERc – 0.66% | ||||||
Amstel Funding Corp. | ||||||
5.22%, 04/16/07 - 04/17/07d | 185,535 | 184,280 | ||||
BNP Paribas Finance Inc. | ||||||
5.12%, 06/06/07 | 68,275 | 67,334 | ||||
Bryant Park Funding LLC | ||||||
5.27%, 03/06/07d | 48,073 | 48,038 | ||||
Cantabric Finance LLC | ||||||
5.25%, 03/06/07d | 156,057 | 155,943 | ||||
Cheyne Finance LLC | ||||||
5.24%, 04/12/07 - 04/23/07d | 146,304 | 145,253 | ||||
Concord Minutemen | ||||||
Capital Co. LLC | ||||||
5.29%, 03/19/07d | 99,422 | 99,159 | ||||
Crown Point Capital Co. LLC | ||||||
5.20%, 07/18/07d | 225,337 | 220,813 | ||||
Edison Asset Securitization LLC | ||||||
5.21%, 04/11/07d | 80,844 | 80,364 | ||||
Five Finance Inc. | ||||||
5.22%, 04/20/07d | 89,733 | 89,082 | ||||
General Electric Capital Corp. | ||||||
5.12% - 5.20%, | 341,375 | 335,512 | ||||
Giro Funding Corp. | ||||||
5.25%, 03/05/07 - 03/12/07d | 319,917 | 319,532 | ||||
Grampian Funding LLC | ||||||
5.14% - 5.23%, | 380,390 | 375,665 | ||||
Harrier Finance Funding LLC | ||||||
5.12%, 06/06/07d | 195,072 | 192,383 |
Security | Principal | Value | ||||
Irish Permanent Treasury PLC | ||||||
5.18%, 07/10/07 | $ | 97,536 | $ | 95,697 | ||
KKR Pacific Funding Trust | ||||||
5.29%, 03/13/07d | 243,839 | 243,409 | ||||
Lexington Parker Capital Co. LLC | ||||||
5.18% - 5.20%, | 246,469 | 242,274 | ||||
Liberty Street Funding Corp. | ||||||
5.27%, 03/06/07d | 23,409 | 23,391 | ||||
Lockhart Funding LLC | ||||||
5.25%, 05/04/07 - 05/14/07d | 440,074 | 435,894 | ||||
Nationwide Building Society | ||||||
5.21%, 04/13/07d | 185,318 | 184,165 | ||||
Nestle Capital Corp. | ||||||
5.19%, 08/09/07 | 117,043 | 114,326 | ||||
Sedna Finance Inc. | ||||||
5.22%, 04/17/07d | 111,191 | 110,433 | ||||
Simba Funding Corp. | ||||||
5.20%, 07/23/07d | 195,072 | 191,014 | ||||
Societe Generale | ||||||
5.18%, 05/16/07 | 487,679 | 482,346 | ||||
Thames Asset Global | ||||||
Securitization No. 1 Inc. | ||||||
5.25% - 5.28%, | 743,137 | 742,418 | ||||
Thornburg Mortgage | ||||||
Capital Resources LLC | ||||||
5.28%, 03/12/07d | 142,792 | 142,562 | ||||
Three Pillars Funding Corp. | ||||||
5.26%, 03/01/07 - 03/12/07d | 102,409 | 102,328 | ||||
Tulip Funding Corp. | ||||||
5.29%, 03/15/07d | 374,461 | 373,691 | ||||
Westpac Banking Corp. | ||||||
5.20%, 07/12/07d | 175,564 | 172,192 | ||||
Zela Finance Inc. | ||||||
5.20%, 07/16/07d | 117,043 | 114,727 | ||||
6,084,225 | ||||||
MEDIUM-TERM NOTESc – 0.06% | ||||||
Bank of America N.A. | ||||||
5.28%, 04/20/07 | 48,768 | 48,768 |
SCHEDULESOF INVESTMENTS | 17 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI AUSTRALIA INDEX FUND
February 28, 2007
Security | Shares or Principal | Value | ||||
Cullinan Finance Corp. | ||||||
5.71%, 06/28/07d | $ | 146,304 | $ | 146,304 | ||
K2 USA LLC | ||||||
5.39%, 06/04/07d | 146,304 | 146,304 | ||||
Sigma Finance Inc. | ||||||
5.13% - 5.51%, | 228,234 | 228,234 | ||||
569,610 | ||||||
MONEY MARKET FUNDS – 0.05% | ||||||
Barclays Global Investors Funds Institutional Money Market Fund, Institutional Shares | 462,881 | 462,881 | ||||
462,881 | ||||||
REPURCHASE AGREEMENTSc– 0.40% | ||||||
Banc of America Securities LLC | $ | 390,143 | 390,143 | |||
Bear Stearns Companies Inc. (The) | 292,607 | 292,607 | ||||
BNP Securities Corp. | 19,507 | 19,507 | ||||
Citigroup Global Markets Holdings Inc. | 292,607 | 292,607 |
Security | Principal | Value | ||||
Citigroup Global Markets Holdings Inc. | $ | 390,143 | $ | 390,143 | ||
Citigroup Global Markets Holdings Inc. | 214,579 | 214,579 | ||||
Citigroup Global Markets Holdings Inc. | 117,043 | 117,043 | ||||
Goldman Sachs Group Inc. (The) | 72,385 | 72,385 | ||||
Greenwich Capital Markets Inc. | 819,301 | 819,301 | ||||
HSBC Securities Inc. | 97,536 | 97,536 |
18 | 2007 iSHARES SEMI-ANNUALTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI AUSTRALIA INDEX FUND
February 28, 2007
Security | Principal | Value | ||||
JP Morgan Securities Inc. | $ | 48,768 | $ | 48,768 | ||
Merrill Lynch & Co. Inc. | 195,072 | 195,072 | ||||
Morgan Stanley | 195,072 | 195,072 | ||||
Morgan Stanley | 136,550 | 136,550 | ||||
Wachovia Capital | 429,157 | 429,157 | ||||
3,710,470 | ||||||
TIME DEPOSITSc – 0.12% | ||||||
Bank of Nova Scotia | ||||||
5.30%, 03/02/07 | 81,805 | 81,805 | ||||
Chase Bank USA N.A. | ||||||
5.38%, 03/01/07 | 292,607 | 292,607 |
Security | Principal | Value | ||||
Citibank N.A. | $ | 292,607 | $ | 292,607 | ||
Deutsche Bank AG | 458,167 | 458,167 | ||||
1,125,186 | ||||||
VARIABLE & FLOATING RATE NOTESc – 1.54% | ||||||
Allstate Life Global Funding II 02/15/08 - 03/07/08d | 499,383 | 499,427 | ||||
American Express Centurion Bank | 214,579 | 214,675 | ||||
American Express Credit Corp. | 58,521 | 58,550 | ||||
AmeriCredit Automobile Receivables Trust | 8,890 | 8,890 | ||||
Arkle Master Issuer PLC Series 2006-1A Class 1A | 146,304 | 146,304 | ||||
ASIF Global Financing | 19,507 | 19,509 | ||||
Australia & New Zealand Banking Group Ltd. | 126,797 | 126,797 | ||||
Bank of Ireland 08/14/07 - 02/20/08d | 282,854 | 282,862 | ||||
Beta Finance Inc. 04/25/07 - 07/25/07d | 497,432 | 497,442 | ||||
BMW US Capital LLC | 195,072 | 195,072 | ||||
BNP Paribas | 360,882 | 360,882 | ||||
Brigantine High Grade Funding Ltd. | 187,269 | 187,251 | ||||
Carlyle Loan Investment Ltd. | 142,402 | 142,402 | ||||
CC USA Inc. | 97,536 | 97,541 |
SCHEDULESOF INVESTMENTS | 19 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI AUSTRALIA INDEX FUND
February 28, 2007
Security | Principal | Value | ||||
Commodore CDO Ltd. | $ | 48,768 | $ | 48,768 | ||
Credit Agricole SA | 195,072 | 195,072 | ||||
Credit Suisse First Boston NY | 97,536 | 97,536 | ||||
Cullinan Finance Corp. | 48,768 | 48,768 | ||||
DaimlerChrysler Auto Trust Series 2006-C Class A1 | 14,964 | 14,964 | ||||
DEPFA Bank PLC | 195,072 | 195,072 | ||||
Dorada Finance Inc. 06/27/07 - 07/17/07d | 224,332 | 224,336 | ||||
Eli Lilly Services Inc. | 130,210 | 130,210 | ||||
Fifth Third Bancorp | 390,143 | 390,143 | ||||
Five Finance Inc. 06/29/07 - 07/13/07d | 126,797 | 126,790 | ||||
General Electric Capital Corp. 07/09/07 - 02/22/08d | 204,825 | 204,845 | ||||
Granite Master Issuer PLC | 682,750 | 682,750 | ||||
Harrier Finance Funding LLC 07/25/07 - 08/15/07d | 253,593 | 253,594 | ||||
Hartford Life Global Funding Trust 07/13/07 - 03/14/08 | 292,607 | 292,627 | ||||
HBOS Treasury Services PLC | 195,072 | 195,072 | ||||
Holmes Financing PLC | 341,375 | 341,375 | ||||
JP Morgan Securities Inc. | 390,143 | 390,143 |
Security | Principal | Value | ||||
JPMorgan Chase & Co. 07/27/07 - 02/29/08g | $ | 536,447 | $ | 536,447 | ||
K2 USA LLC 04/02/07 - 06/28/07d | 146,304 | 146,301 | ||||
Kestrel Funding LLC | 78,029 | 78,026 | ||||
Kommunalkredit Austria AG | 117,043 | 117,043 | ||||
Leafs LLC | 188,999 | 188,999 | ||||
Links Finance LLC 05/10/07 - 05/16/07d | 214,579 | 214,574 | ||||
Lothian Mortgages Master Issuer PLC | 68,773 | 68,773 | ||||
Marshall & Ilsley Bank | 107,289 | 107,289 | ||||
Master Funding LLC | 353,027 | 353,026 | ||||
Merrill Lynch & Co. Inc. | 214,579 | 214,579 | ||||
Metropolitan Life Global Funding I | 292,607 | 292,607 | ||||
Metropolitan Life Insurance Funding Agreement | 19,507 | 19,507 | ||||
Mound Financing PLC | 183,367 | 183,367 | ||||
Natexis Banques Populaires 06/20/07 - 02/08/08d | 312,114 | 312,111 | ||||
National City Bank of Indiana | 97,536 | 97,538 | ||||
Nationwide Building Society 07/20/07 - 01/28/08d | 643,736 | 643,809 | ||||
Newcastle Ltd. | 195,559 | 195,534 |
20 | 2007 iSHARES SEMI-ANNUALTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI AUSTRALIA INDEX FUND
February 28, 2007
Security | Principal | Value | ||||
Northern Rock PLC | ||||||
5.38%, 02/01/08d | $ | 234,086 | $ | 234,090 | ||
Northlake CDO I | ||||||
5.42%, 09/06/07d | 58,521 | 58,521 | ||||
Pricoa Global Funding I | ||||||
5.31%, 02/27/08d | 263,347 | 263,347 | ||||
Sedna Finance Inc. | ||||||
5.32% - 5.34%, | ||||||
05/25/07 - 08/21/07d | 282,854 | 282,852 | ||||
Skandinaviska Enskilda Banken | ||||||
5.32%, 02/15/08d | 195,072 | 195,072 | ||||
Strips III LLC | ||||||
5.37%, 07/24/07d | 39,694 | 39,694 | ||||
SunTrust Bank | ||||||
5.29%, 05/01/07 | 195,072 | 195,073 | ||||
Tango Finance Corp. | ||||||
5.27% - 5.34%, | ||||||
04/25/07 - 07/16/07d | 475,975 | 475,959 | ||||
Union Hamilton Special Funding LLC | ||||||
5.36% - 5.37%, | ||||||
03/28/07 - 06/21/07d | 321,868 | 321,869 | ||||
Wachovia Asset Securitization Inc. | ||||||
5.31%, 03/25/07d | 220,201 | 220,201 | ||||
Wachovia Bank N.A. | ||||||
5.36%, 05/22/07 | 390,143 | 390,143 | ||||
Wal-Mart Stores Inc. | ||||||
5.50%, 07/16/07d | 146,304 | 146,341 | ||||
Wells Fargo & Co. | ||||||
5.33%, 11/15/07d | 97,536 | 97,541 | ||||
WhistleJacket Capital Ltd. | ||||||
5.28% - 5.35%, | ||||||
04/18/07 - 06/13/07d | 146,304 | 146,305 | ||||
White Pine Finance LLC | ||||||
5.28% - 5.32%, | ||||||
05/22/07 - 08/20/07d | 585,215 | 585,163 | ||||
Wind MasterTrust | ||||||
5.31%, 07/25/07d | 78,029 | 78,029 | ||||
14,169,399 | ||||||
TOTAL SHORT-TERM INVESTMENTS | 27,389,736 | |||||
Value | ||||||
TOTAL INVESTMENTS | $ | 942,346,462 | ||||
Other Assets, Less Liabilities – (2.25)% | (20,752,130 | ) | ||||
NET ASSETS – 100.00% | $ | 921,594,332 | ||||
a | All or a portion of this security represents a security on loan. See Note 5. |
b | Non-income earning security. |
c | All or a portion of this security (these securities) represent(s) an investment of securities lending collateral. See Note 5. |
d | This security or a portion of these securities may be resold to qualified institutional buyers under Rule 144A or pursuant to Section 4(2) of the Securities Act of 1933. |
e | Affiliated issuer. See Note 2. |
f | The rate quoted is the annualized seven-day yield of the fund at period end. |
g | 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 financial statements.
SCHEDULESOF INVESTMENTS | 21 |
Table of Contents
Schedule of Investments (Unaudited)
iSHARES® MSCI BRAZIL INDEX FUND
February 28, 2007
Security | Shares | Value | |||
COMMON STOCKS – 39.43% | |||||
AEROSPACE & DEFENSE – 1.87% | |||||
Empresa Brasileira de Aeronautica SA | 4,795,600 | $ | 53,942,029 | ||
53,942,029 | |||||
AGRICULTURE – 0.71% | |||||
Souza Cruz SA | 1,135,800 | 20,597,409 | |||
20,597,409 | |||||
BANKS – 4.65% | |||||
Banco Nossa Caixa SA | 567,200 | 10,673,406 | |||
Unibanco Uniao de Bancos Brasileiros SA | 14,513,020 | 123,733,237 | |||
134,406,643 | |||||
CHEMICALS – 0.40% | |||||
Braskem SA Class A | 1,766,836 | 11,468,205 | |||
11,468,205 | |||||
COMMERCIAL SERVICES – 0.84% | |||||
Companhia de Concessoes Rodoviarias | 1,893,000 | 24,342,393 | |||
24,342,393 | |||||
COSMETICS & PERSONAL CARE – 0.74% | |||||
Natura Cosmeticos SA | 1,688,600 | 21,419,688 | |||
21,419,688 | |||||
ELECTRIC – 1.79% | |||||
Centrais Eletricas Brasileiras SA | 1,388,200,000 | 29,424,870 | |||
EDP - Energias do Brasil SA | 707,300 | 11,127,565 | |||
Tractebel Energia SA | 1,388,200 | 11,279,534 | |||
51,831,969 | |||||
FOOD – 0.85% | |||||
Cosan SA Industria e Comercioa | 757,190 | 13,988,220 | |||
Perdigao SA | 883,400 | 10,652,398 | |||
24,640,618 | |||||
HEALTH CARE - SERVICES – 0.40% | |||||
Diagnosticos da America SAa | 525,100 | 11,402,313 | |||
11,402,313 | |||||
INTERNET – 0.55% | |||||
Submarino SA | 484,530 | 15,953,202 | |||
15,953,202 |
Security | Shares | Value | |||
IRON & STEEL – 2.22% | |||||
Companhia Siderurgica Nacional SA | 1,556,184 | $ | 54,316,173 | ||
Gerdau SA | 693,100 | 9,944,336 | |||
64,260,509 | |||||
MINING – 9.01% | |||||
Companhia Vale do Rio Doce ADR | 7,628,784 | 260,294,110 | |||
260,294,110 | |||||
OIL & GAS – 9.98% | |||||
Petroleo Brasileiro SA | 12,792,300 | 288,323,860 | |||
288,323,860 | |||||
REAL ESTATE – 0.97% | |||||
Cyrela Brazil Realty SA | 2,019,200 | 18,736,806 | |||
Gafisa SA | 631,000 | 9,178,182 | |||
27,914,988 | |||||
RETAIL – 0.64% | |||||
Lojas Renner SA | 1,317,100 | 18,543,626 | |||
18,543,626 | |||||
TELECOMMUNICATIONS – 1.18% | |||||
Brasil Telecom Participacoes SA | 794,200,000 | 13,605,774 | |||
Tele Norte Leste Participacoes SA | 793,538 | 20,371,088 | |||
33,976,862 | |||||
TRANSPORTATION – 1.75% | |||||
All America Latina | |||||
Logistica SA | 4,417,000 | 50,661,305 | |||
50,661,305 | |||||
WATER – 0.88% | |||||
Companhia de Saneamento | |||||
Basico do Estado de Sao Paulo | 189,300,000 | 25,279,531 | |||
25,279,531 | |||||
TOTAL COMMON STOCKS | 1,139,259,260 |
22 | 2007 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI BRAZIL INDEX FUND
February 28, 2007
Security | Shares | Value | |||
PREFERRED STOCKS – 60.00% | |||||
AIRLINES – 1.30% | |||||
Gol Linhas Aereas Inteligentes SA | 594,100 | $ | 16,986,279 | ||
Tam SAa | 705,300 | 20,697,216 | |||
37,683,495 | |||||
BANKS – 11.59% | |||||
Banco Bradesco SA | 5,388,600 | 198,233,471 | |||
Banco Itau Holding Financeira SA | 3,988,370 | 136,746,798 | |||
334,980,269 | |||||
BEVERAGES – 4.24% | |||||
Companhia de Bebidasdas Americas | 252,400,000 | 122,455,017 | |||
122,455,017 | |||||
BUILDING MATERIALS – 0.65% | |||||
Duratex SA | 1,009,620 | 18,737,178 | |||
18,737,178 | |||||
ELECTRIC – 4.50% | |||||
Centrais Eletricas Brasileiras SA Class B | 1,180,400,000 | 24,797,855 | |||
Companhia Energetica de Minas Gerais | 1,189,500,000 | 56,583,896 | |||
Companhia Energetica de Sao Paulo Class Ba | 1,766,800,000 | 20,847,074 | |||
Companhia Paranaense de Energia Class B | 1,388,200,000 | 16,085,601 | |||
Eletropaulo Metropolitana Electricidade de Sao Paulo SA Class Ba | 239,780,000 | 11,813,937 | |||
130,128,363 | |||||
FOOD – 1.12% | |||||
Companhia Brasileira de Distribuicao Grupo Pao de Acucar | 454,320,000 | 13,449,839 | |||
Sadia SA | 6,005,000 | 18,922,963 | |||
32,372,802 |
Security | Shares | Value | |||
FOREST PRODUCTS & PAPER – 2.57% | |||||
Aracruz Celulose SA Class B | 6,233,200 | $ | 33,206,544 | ||
Klabin SA | 7,748,000 | 18,722,204 | |||
Votorantim Celulose e Papel SA | 1,226,900 | 22,243,703 | |||
74,172,451 | |||||
GAS – 0.22% | |||||
Companhia de Gas de Sao Paulo Class A | 37,860,000 | 6,259,473 | |||
6,259,473 | |||||
IRON & STEEL – 4.29% | |||||
Gerdau SA | 3,872,373 | 66,047,398 | |||
Usinas Siderurgicas de Minas Gerais SA Class A | 1,388,200 | 57,810,062 | |||
123,857,460 | |||||
MACHINERY – 0.68% | |||||
Weg SA | 2,650,200 | 19,598,747 | |||
19,598,747 | |||||
MEDIA – 0.53% | |||||
Net Servicos de Comunicacao SAa | 1,216,568 | 15,472,132 | |||
15,472,132 | |||||
MINING – 11.09% | |||||
Companhia Vale do Rio Doce Class A | 10,896,400 | 320,578,966 | |||
320,578,966 | |||||
OIL & GAS – 12.37% | |||||
Petroleo Brasileiro SA | 17,702,700 | 357,556,183 | |||
357,556,183 | |||||
RETAIL – 0.71% | |||||
Lojas Americanas SA | 365,400,000 | 20,395,619 | |||
20,395,619 | |||||
TELECOMMUNICATIONS – 3.92% | |||||
Brasil Telecom Participacoes SA | 2,902,600,000 | 23,447,754 | |||
Tele Norte Leste Participacoes SA | 3,097,539 | 40,269,466 | |||
Telemig Celular Participacoes SA | 2,650,200,000 | 4,818,541 |
SCHEDULESOF INVESTMENTS | 23 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI BRAZIL INDEX FUND
February 28, 2007
Security | Shares | Value | |||
Telesp Celular Participacoes SAa | 5,805,283 | $ | 21,602,325 | ||
TIM Participacoes SA | 7,193,400,000 | 23,074,413 | |||
113,212,499 | |||||
TEXTILES – 0.22% | |||||
Companhia de Tecidos | |||||
Norte de Minas | 50,480,400 | 6,407,658 | |||
6,407,658 | |||||
TOTAL PREFERRED STOCKS | 1,733,868,312 | ||||
SHORT-TERM INVESTMENTS – 0.17% | |||||
MONEY MARKET FUNDS – 0.17% | |||||
Barclays Global Investors Funds Institutional Money Market Fund, Institutional Shares | |||||
5.30%b,c | 4,775,657 | 4,775,657 | |||
4,775,657 | |||||
TOTAL SHORT-TERM INVESTMENTS | 4,775,657 | ||||
TOTAL INVESTMENTS | 2,877,903,229 | ||||
Other Assets, Less Liabilities – 0.40% | 11,629,849 | ||||
NET ASSETS – 100.00% | $ | 2,889,533,078 | |||
ADR – American Depositary Receipts
a | Non-income earning security. |
b | Affiliated issuer. See Note 2. |
c | The rate quoted is the annualized seven-day yield of the fund at period end. |
See notes to financial statements.
24 | 2007 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited)
iSHARES® MSCI CANADA INDEX FUND
February 28, 2007
Security | Shares | Value | |||
COMMON STOCKS – 99.79% | |||||
AEROSPACE & DEFENSE – 0.28% | |||||
CAE Inc. | 276,604 | $ | 2,870,897 | ||
2,870,897 | |||||
AIRLINES – 0.27% | |||||
ACE Aviation Holdings Inc. | 90,830 | 2,804,184 | |||
2,804,184 | |||||
APPAREL – 0.33% | |||||
Gildan Activewear Inc.a | 66,198 | 3,419,002 | |||
3,419,002 | |||||
AUTO PARTS & EQUIPMENT – 0.84% | |||||
Magna International Inc. | 119,508 | 8,747,918 | |||
8,747,918 | |||||
BANKS – 17.93% | |||||
Bank of Montreal | 551,124 | 33,258,739 | |||
Bank of Nova Scotia | 1,088,980 | 47,235,105 | |||
Canadian Imperial | |||||
Bank of Commerce | 369,941 | 31,758,357 | |||
National Bank of Canada | 178,302 | 9,929,743 | |||
Royal Bank of Canada | 1,410,100 | 65,048,236 | |||
187,230,180 | |||||
BEVERAGES – 0.11% | |||||
Cott Corp.a | 78,937 | 1,102,715 | |||
1,102,715 | |||||
CHEMICALS – 2.82% | |||||
Agrium Inc. | 145,792 | 5,581,513 | |||
Methanex Corp. | 117,501 | 2,956,189 | |||
NOVA Chemicals Corp. | 90,844 | 2,858,849 | |||
Potash Corp. of Saskatchewan Inc. | 114,634 | 18,001,414 | |||
29,397,965 | |||||
COAL – 0.39% | |||||
Fording Canadian Coal Trust | 162,217 | 4,074,275 | |||
4,074,275 | |||||
COMMERCIAL SERVICES – 0.29% | |||||
QuebecorWorld Inc. | 93,081 | 1,230,443 | |||
Ritchie Bros. Auctioneers Inc. | 32,373 | 1,846,770 | |||
3,077,213 |
Security | Shares | Value | |||
COMPUTERS – 2.68% | |||||
CGI Group Inc.a | 293,768 | $ | 2,475,313 | ||
Research In Motion Ltd.a | 182,506 | 25,535,742 | |||
28,011,055 | |||||
DIVERSIFIED FINANCIAL SERVICES – 0.99% | |||||
CI Financial Income Fund | 68,310 | 1,546,740 | |||
IGM Financial Inc. | 131,156 | 5,665,474 | |||
TSX Group Inc. | 75,276 | 3,136,099 | |||
10,348,313 | |||||
ELECTRIC – 0.69% | |||||
Fortis Inc. | 117,946 | 2,645,499 | |||
TransAlta Corp. | 220,953 | 4,556,431 | |||
7,201,930 | |||||
ELECTRONICS – 0.13% | |||||
Celestica Inc.a | 222,419 | 1,394,209 | |||
1,394,209 | |||||
ENGINEERING & CONSTRUCTION – 0.49% | |||||
SNC-Lavalin Group Inc. | 165,914 | 5,085,454 | |||
5,085,454 | |||||
FOOD – 0.96% | |||||
George Weston Ltd. | 56,837 | 3,441,582 | |||
Loblaw Companies Ltd. | 120,607 | 4,757,216 | |||
Saputo Inc. | 51,293 | 1,837,283 | |||
10,036,081 | |||||
FOREST PRODUCTS & PAPER – 0.38% | |||||
Abitibi-Consolidated Inc. | 435,817 | 1,200,536 | |||
Canfor Corp.a | 87,543 | 859,341 | |||
Domtar Inc.a | 232,215 | 1,932,897 | |||
3,992,774 | |||||
HAND & MACHINE TOOLS – 0.43% | |||||
Finning International Inc. | 100,017 | 4,448,328 | |||
4,448,328 | |||||
HEALTH CARE – SERVICES – 0.27% | |||||
MDS Inc. | 154,037 | 2,863,849 | |||
2,863,849 | |||||
HOLDING COMPANIES - DIVERSIFIED – 2.26% | |||||
Brookfield Asset Management Inc. | |||||
Class A | 383,664 | 20,528,830 | |||
Onex Corp. | 120,623 | 3,069,712 | |||
23,598,542 |
SCHEDULESOF INVESTMENTS | 25 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI CANADA INDEX FUND
February 28, 2007
Security | Shares | Value | |||
INSURANCE – 11.34% | |||||
Fairfax Financial Holdings Ltd. | 18,782 | $ | 3,615,601 | ||
Great-West Lifeco Inc. | 294,150 | 9,081,259 | |||
Manulife Financial Corp. | 1,701,913 | 56,926,381 | |||
Power Corp. of Canada | 376,613 | 12,414,048 | |||
Power Financial Corp. | 271,470 | 9,279,363 | |||
Sun Life Financial Inc. | 630,257 | 27,117,364 | |||
118,434,016 | |||||
IRON & STEEL – 0.69% | |||||
Algoma Steel Inc.a | 34,977 | 1,501,933 | |||
IPSCO Inc. | 52,026 | 5,648,296 | |||
7,150,229 | |||||
LODGING – 0.23% | |||||
Four Seasons Hotels Inc. | 29,130 | 2,347,939 | |||
2,347,939 | |||||
MANUFACTURING – 0.58% | |||||
Bombardier Inc. Class Ba | 1,555,497 | 6,049,266 | |||
6,049,266 | |||||
MEDIA – 3.59% | |||||
Astral Media Inc. Class A | 55,246 | 1,931,761 | |||
Rogers Communications Inc. | 488,433 | 15,904,117 | |||
Shaw Communications Inc. | 190,598 | 6,531,259 | |||
Thomson Corp. | 246,783 | 9,923,516 | |||
Yellow Pages Income Fund | 276,578 | 3,179,627 | |||
37,470,280 | |||||
MINING – 13.76% | |||||
Aber Diamond Corp. | 65,161 | 2,322,911 | |||
Agnico-Eagle Mines Ltd. | 131,428 | 5,160,501 | |||
Alcan Inc. | 413,161 | 21,430,602 | |||
Barrick Gold Corp. | 949,368 | 28,273,362 | |||
Bema Gold Corp.a | 537,598 | 3,356,119 | |||
Cameco Corp. | 387,364 | 14,288,084 | |||
Eldorado Gold Corp.a | 378,280 | 2,251,840 | |||
First Quantum Minerals Ltd. | 74,026 | 4,289,853 | |||
Goldcorp Inc. | 771,962 | 20,659,390 | |||
Ivanhoe Mines Ltd.a | 272,428 | 2,753,206 | |||
Kinross Gold Corp.a | 398,846 | 5,592,110 | |||
Lundin Mining Corp.a | 266,104 | 2,891,275 |
Security | Shares | Value | |||
Meridian Gold Inc.a | 110,673 | $ | 3,027,922 | ||
Novelis Inc. | 81,440 | 3,542,228 | |||
Pan American Silver Corp.a | 82,031 | 2,456,977 | |||
Teck Cominco Ltd. Class B | 232,490 | 16,353,908 | |||
Yamana Gold Inc. | 339,407 | 5,004,773 | |||
143,655,061 | |||||
OIL & GAS – 23.68% | |||||
ARC Energy Trust | 106,118 | 1,945,791 | |||
Canadian Natural Resources Ltd. | 593,191 | 29,711,405 | |||
Canadian Oil Sands Trust | 255,409 | 5,946,583 | |||
Canetic Resources Trust | 247,434 | 3,156,891 | |||
Duvernay Oil Corp.a | 45,621 | 1,248,542 | |||
EnCana Corp. | 885,542 | 42,934,683 | |||
Enerplus Resources Fund | 134,763 | 5,810,940 | |||
Ensign Resource Service Group | 142,156 | 2,290,160 | |||
First Calgary Petroleums Ltd.a | 257,286 | 1,360,431 | |||
Harvest Energy Trust | 134,179 | 3,145,777 | |||
Husky Energy Inc. | 140,598 | 9,101,009 | |||
Imperial Oil Ltd. | 370,269 | 13,183,856 | |||
Nexen Inc. | 288,559 | 16,500,687 | |||
Niko Resources Ltd. | 39,355 | 2,809,273 | |||
OPTI Canada Inc.a | 189,922 | 3,181,159 | |||
Penn West Energy Trust | 259,439 | 7,772,881 | |||
Petro-Canada | 548,113 | 20,217,379 | |||
Precision Drilling Trust | 67,682 | 1,583,316 | |||
PrimeWest Energy Trust | 91,226 | 1,781,651 | |||
Provident Energy Trust | 229,634 | 2,496,980 | |||
Shell Canada Ltd. | 227,131 | 8,643,201 | |||
Suncor Energy Inc. | 506,902 | 35,855,573 | |||
Talisman Energy Inc. | 1,199,943 | 20,641,210 | |||
UTS Energy Corp.a | 460,743 | 1,559,976 | |||
Western Oil Sands Inc. Class Aa | 159,547 | 4,347,385 | |||
247,226,739 | |||||
OIL & GAS SERVICES – 0.24% | |||||
Trican Well Service Ltd. | 127,821 | 2,539,959 | |||
2,539,959 | |||||
PHARMACEUTICALS – 0.43% | |||||
Angiotech Pharmaceuticals Inc.a | 94,503 | 624,620 | |||
Biovail Corp. | 155,437 | 3,212,007 | |||
QLT Inc.a | 82,660 | 691,565 | |||
4,528,192 |
26 | 2007 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI CANADA INDEX FUND
February 28, 2007
Security | Shares | Value | |||
PIPELINES – 2.79% | |||||
Enbridge Inc. | 381,265 | $ | 12,066,645 | ||
TransCanada Corp. | 537,509 | 17,098,704 | |||
29,165,349 | |||||
REAL ESTATE – 0.86% | |||||
Brookfield Properties Corp. | 158,312 | 7,090,995 | |||
MI Developments Inc. Class A | 51,402 | 1,885,025 | |||
8,976,020 | |||||
RETAIL – 2.13% | |||||
Alimentation Couche Tard Inc. | 149,200 | 3,149,290 | |||
Canadian Tire Corp. Ltd. Class A | 86,100 | 5,261,238 | |||
Jean Coutu Group Inc. Class A | 158,833 | 2,006,155 | |||
RONA Inc.a | 126,463 | 2,529,152 | |||
Shoppers Drug Mart Corp. | 213,830 | 9,311,466 | |||
22,257,301 | |||||
SOFTWARE – 0.47% | |||||
Cognos Inc.a | 98,929 | 3,736,783 | |||
Open Text Corp.a | 52,524 | 1,148,088 | |||
4,884,871 | |||||
TELECOMMUNICATIONS – 3.21% | |||||
BCE Inc. | 294,996 | 7,723,660 | |||
Nortel Networks Corp.a | 477,521 | 14,278,185 | |||
TELUS Corp. | 64,884 | 3,118,173 | |||
TELUS Corp. NVS | 178,404 | 8,410,876 | |||
33,530,894 | |||||
TRANSPORTATION – 3.25% | |||||
Canadian National Railway Co. | 569,169 | 24,804,517 | |||
Canadian Pacific Railway Ltd. | 171,661 | 9,142,663 | |||
33,947,180 | |||||
TOTAL COMMON STOCKS | |||||
(Cost: $890,175,456) | 1,041,868,180 |
Security | Shares | Value | |||
SHORT-TERM INVESTMENTS – 0.03% | |||||
MONEY MARKET FUNDS – 0.03% | |||||
Barclays Global Investors Funds | 300,977 | $ | 300,977 | ||
300,977 | |||||
TOTAL SHORT-TERM INVESTMENTS | |||||
(Cost: $300,977) | 300,977 | ||||
TOTAL INVESTMENTS | |||||
(Cost: $890,476,433) | 1,042,169,157 | ||||
Other Assets, Less Liabilities – 0.18% | 1,887,693 | ||||
NET ASSETS – 100.00% | $ | 1,044,056,850 | |||
NVS – Non-Voting Shares
a | Non-income earning security. |
b | Affiliated issuer. See Note 2. |
c | The rate quoted is the annualized seven-day yield of the fund at period end. |
See notes to financial statements.
SCHEDULESOF INVESTMENTS | 27 |
Table of Contents
Schedule of Investments (Unaudited)
iSHARES® MSCI EMERGING MARKETS INDEX FUND
February 28, 2007
Security | Shares | Value | |||
COMMON STOCKS – 97.79% | |||||
ARGENTINA – 0.91% | |||||
BBVA Banco Frances SA ADR | 914,298 | $ | 10,688,144 | ||
Petrobras Energia | |||||
Participaciones SA ADRa | 1,720,261 | 18,200,361 | |||
Tenaris SA ADR | 2,201,996 | 99,992,638 | |||
128,881,143 | |||||
BRAZIL – 8.69% | |||||
Aracruz Celulose SA ADR | 560,444 | 30,073,425 | |||
Banco Bradesco SA ADR | 4,834,569 | 177,863,793 | |||
Banco Itau Holding | 5,506,569 | 188,379,725 | |||
Brasil Telecom | 674,519 | 27,318,019 | |||
Companhia Brasileira de | 821,337 | 24,599,043 | |||
Companhia de Bebidas das | 1,044,028 | 50,499,634 | |||
Companhia Energetica de | 139,260 | 6,705,369 | |||
Companhia Vale do Rio | 4,893,568 | 166,968,540 | |||
Companhia Vale do Rio Doce | 6,658,460 | 196,757,493 | |||
Empresa Brasileira de | 1,152,904 | 52,284,196 | |||
Gerdau SA Sponsored ADR | 1,835,700 | 31,482,255 | |||
Net Servicos de | 600,084 | 8,221,151 | |||
Petroleo Brasileiro SA ADR | 1,909,988 | 172,662,915 | |||
Tele Norte Leste | 1,779,152 | 23,075,601 | |||
Unibanco-Uniao de Bancos | 651,568 | 55,696,033 | |||
Votorantim Celulose e | 778,168 | 13,952,552 | |||
1,226,539,744 | |||||
CHILE – 2.04% | |||||
Banco Santander Chile | 1,672,037 | 79,588,961 |
Security | Shares | Value | |||
Compania de | |||||
Telecomunicaciones de | |||||
Chile SA ADR | 2,019,316 | $ | 17,164,186 | ||
Enersis SA ADR | 4,917,780 | 76,963,257 | |||
LAN Airlines SA | |||||
Sponsored ADR | 453,339 | 30,908,653 | |||
Sociedad Quimica y Minera | 613,044 | 83,668,245 | |||
288,293,302 | |||||
CHINA – 7.04% | |||||
Angang New Steel Co. | |||||
Ltd. Class Hb | 11,816,000 | 18,603,587 | |||
Bank of China Ltd. Class Ha,b | 143,480,000 | 68,688,505 | |||
Bank of Communications Co. | |||||
Ltd. Class Hb | 39,774,000 | 40,067,762 | |||
Beijing Capital International | |||||
Airport Co. Ltd. Class Hb | 13,508,000 | 12,449,291 | |||
China Construction | |||||
Bank Class Hb | 169,644,000 | 95,545,947 | |||
China Eastern Airlines Corp. | |||||
Ltd. Class Ha,b | 59,080,000 | 17,696,094 | |||
China Life Insurance Co. | |||||
Ltd. Class H | 43,888,000 | 117,693,074 | |||
China Petroleum & Chemical | |||||
Corp. Class H | 109,804,000 | 87,845,449 | |||
China Shipping Development | |||||
Co. Ltd. Class H | 15,210,000 | 21,065,781 | |||
Cofco International Ltd.b | 5,070,000 | 4,231,328 | |||
COSCO Pacific Ltd. | 6,752,000 | 18,063,413 | |||
Datang International Power | |||||
Generation Co. | |||||
Ltd. Class Hb | 6,760,000 | 6,835,887 | |||
Guangshen Railway | |||||
Co. Ltd. Class Hb | 54,086,363 | 33,993,068 | |||
Huadian Power International | |||||
Corp. Ltd.b | 28,730,000 | 10,076,444 | |||
Huaneng Power International | |||||
Inc. Class Hb | 20,256,000 | 17,501,632 | |||
Hunan Non-Ferrous Metal | |||||
Corp. Ltd. Class Ha | 23,660,000 | 15,899,927 | |||
Industrial & Commercial | |||||
Bank of China Class Ha | 176,396,000 | 97,316,636 |
28 | 2007 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI EMERGING MARKETS INDEX FUND
February 28, 2007
Security | Shares | Value | |||
Jiangsu Expressway Co. | |||||
Ltd. Class Hb | 5,070,000 | $ | 3,777,044 | ||
Jiangxi Copper Co. Ltd.b | 16,898,000 | 19,293,954 | |||
Maanshan Iron & Steel Co. | |||||
Ltd. Class Hb | 18,568,000 | 11,978,895 | |||
PetroChina Co. Ltd. Class H | 114,798,000 | 133,867,079 | |||
Ping An Insurance (Group) | 9,287,500 | 42,144,039 | |||
Shanghai Forte Land Co. | |||||
Class H | 5,064,000 | 2,119,642 | |||
Sinopec Shanghai | |||||
Petrochemical Co. Ltd. | |||||
Class H | 20,280,000 | 10,279,789 | |||
Sinotrans Ltd. | 20,256,000 | 7,830,360 | |||
Travelsky Technology Ltd. | |||||
Class H | 1,690,000 | 3,093,455 | |||
Tsingtao Brewery Co. Ltd. | |||||
Class Hb | 3,380,000 | 5,762,912 | |||
Weichai Power Co. Ltd. | |||||
Class Hb | 3,377,000 | 14,524,173 | |||
XinAo Gas Holdings Ltd.b | 3,388,000 | 3,304,604 | |||
Yanzhou Coal Mining Co. | 20,256,800 | 18,617,286 | |||
Zhejiang Expressway Co. | 20,280,000 | 15,212,011 | |||
Zijin Mining Group Co. Ltd. | |||||
Class H | 27,008,000 | 18,253,554 | |||
993,632,622 | |||||
CZECH REPUBLIC – 1.83% | |||||
CEZ AS | 4,293,817 | 172,320,655 | |||
Komercni Banka AS | 239,343 | 39,126,809 | |||
Philip Morris CR AS | 10,131 | 5,272,273 | |||
Unipetrol ASa | 3,585,500 | 37,046,908 | |||
Zentiva NV | 86,835 | 4,886,152 | |||
258,652,797 | |||||
EGYPT – 0.70% | |||||
Orascom Construction | |||||
Industries Co. GDR | 469,063 | 45,030,048 | |||
Orascom Telecom Holding | |||||
SAE GDR | 756,242 | 53,390,685 | |||
98,420,733 |
Security | Shares | Value | |||
HONG KONG – 4.99% | |||||
Air China Ltd.b | 25,320,000 | $ | 18,960,102 | ||
AMP Ltd. | 2,322,607 | 18,868,312 | |||
Beijing Enterprises | |||||
Holdings Ltd.b | 3,380,000 | 8,220,371 | |||
Brilliance China Automotive | |||||
Holdings Ltd.a,b | 21,798,000 | 5,357,214 | |||
Chaoda Modern Agriculture | |||||
(Holdings) Ltd. | 1,688,000 | 1,222,953 | |||
China Agri-Industries Ltd.d | 5,274,000 | 2,356,062 | |||
China Everbright | |||||
Pacific Ltd.a,b | 18,796,000 | 17,346,897 | |||
China Mengniu Dairy Co. Ltd.b | 3,376,000 | 9,269,383 | |||
China Merchants Holdings | |||||
International Co. Ltd. | 6,752,000 | 26,317,269 | |||
China Mobile Ltd. | 29,118,000 | 270,594,678 | |||
China Overseas Land & | |||||
Investment Ltd.b | 27,008,000 | 27,242,046 | |||
China Resources | |||||
Enterprises Ltd. | 11,830,000 | 34,904,125 | |||
China Resources Land Ltd.b | 27,040,000 | 27,689,669 | |||
China Resources Power | |||||
Holdings Co. Ltd. | 5,064,000 | 7,130,295 | |||
China Travel International | |||||
Investment Hong Kong Ltd.b | 59,366,951 | 26,065,133 | |||
Citic Pacific Ltd. | 9,295,000 | 31,231,999 | |||
CNOOC Ltd. | 101,280,000 | 81,674,282 | |||
Denway Motors Ltd.b | 32,072,000 | 12,726,495 | |||
GOME Electrical Appliances | |||||
Holdings Ltd.b | 7,495,000 | 8,317,864 | |||
Guangdong Investment Ltd. | 11,820,110 | 6,203,353 | |||
Guangzhou Investment | |||||
Co. Ltd. | 28,696,000 | 6,538,264 | |||
Lenovo Group Ltd.b | 35,448,000 | 13,612,381 | |||
Li Ning Co. Ltd.b | 3,376,000 | 6,352,444 | |||
Nine Dragons Paper | |||||
Holdings Ltd.b | 9,284,000 | 19,251,795 | |||
Shanghai Industrial | |||||
Holdings Ltd. | 3,380,000 | 7,917,515 | |||
Shenzhen Investment Ltd. | 27,030,000 | 12,109,750 | |||
Sinofert Holdings Ltd.b | 28,502,000 | 15,104,167 | |||
703,716,506 |
SCHEDULESOF INVESTMENTS | 29 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI EMERGING MARKETS INDEX FUND
February 28, 2007
Security | Shares | Value | |||
HUNGARY – 1.81% | |||||
Gedeon Richter Rtb | 403,528 | $ | 78,379,059 | ||
MagyarTelekom | |||||
Telecommunications PLC | 2,805,594 | 13,703,504 | |||
MOL Magyar Olaj-es | |||||
Gazipari Rtb | 546,068 | 58,562,157 | |||
OTP Bank Ltd.b | 2,470,388 | 105,435,650 | |||
256,080,370 | |||||
INDIA – 5.97% | |||||
HDFC Bank Ltd. ADR | 2,139,540 | 142,001,270 | |||
ICICI Bank Ltd. ADR | 3,426,640 | 131,343,111 | |||
Infosys Technologies Ltd. ADR | 3,398,334 | 184,393,603 | |||
Mahanagar Telephone | |||||
Nigam Ltd. ADR | 5,057,423 | 30,243,390 | |||
Reliance Industries Ltd. GDRe | 1,516,917 | 93,745,471 | |||
Satyam Computer Services | |||||
Ltd. ADR | 4,952,648 | 106,779,091 | |||
Videsh Sanchar Nigam | |||||
Ltd. ADRb | 4,634,404 | 78,136,051 | |||
Wipro Ltd. ADRb | 4,806,096 | 76,128,561 | |||
842,770,548 | |||||
INDONESIA – 2.18% | |||||
PT Aneka Tambang Tbk | 45,576,000 | 45,418,781 | |||
PT Astra Agro Lestari Tbk | 2,110,000 | 2,899,907 | |||
PT Astra International Inc. Tbk | 13,089,000 | 20,139,128 | |||
PT Bank Central Asia Tbk | 38,015,000 | 20,503,080 | |||
PT Bank Danamon | |||||
Indonesia Tbk | 13,092,987 | 8,244,502 | |||
PT Bank Internasional | |||||
Indonesia Tbk | 118,582,000 | 2,532,277 | |||
PT Bank Mandiri Tbk | 28,274,000 | 7,198,932 | |||
PT Bank Pan Indonesia Tbka | 213,606,522 | 13,333,595 | |||
PT Bank Rakyat Indonesia Tbk | 34,089,061 | 17,732,359 | |||
PT Berlian Laju Tanker Tbk | 22,392,500 | 4,291,395 | |||
PT Bumi Resources Tbk | 124,701,000 | 16,523,923 | |||
PT Indosat Tbk | 1,266,000 | 817,982 | |||
PT Kalbe Farma Tbka | 246,164,656 | 32,888,450 | |||
PT Perusahaan Gas | |||||
Negara Tbk | 16,036,000 | 15,717,265 | |||
PT Ramayana Lestari | |||||
Sentosa Tbk | 84,509,870 | 7,126,168 |
Security | Shares | Value | |||
PT Semen | |||||
Gresik (Persero) Tbk | 438,000 | $ | 1,851,481 | ||
PTTelekomunikasi | |||||
Indonesia Tbk | 79,336,000 | 77,324,690 | |||
PT United Tractors Tbk | 16,521,771 | 12,574,748 | |||
307,118,663 | |||||
ISRAEL – 3.46% | |||||
Africa Israel Investments Ltd. | 76,895 | 6,810,387 | |||
AudioCodes Ltd.a | 33,300 | 324,675 | |||
Bank Hapoalim Ltd. | 9,803,227 | 45,342,250 | |||
Bank Leumi Le-Israel | 12,834,863 | 46,030,154 | |||
Check Point Software | |||||
Technologies Ltd.a | 1,366,436 | 30,854,125 | |||
Clal Industries and | |||||
Investments Ltd. | 459,980 | 2,657,759 | |||
Clal Insurance Co. Ltd. | 83,556 | 2,118,628 | |||
Discount Investment | |||||
Corp. Ltd. | 70,980 | 2,153,307 | |||
ECI Telecom Ltd.a | 414,404 | 3,323,520 | |||
Elbit Systems Ltd. | 646,504 | 22,143,069 | |||
Elite Industries Ltd. | 189,900 | 2,099,890 | |||
Israel Chemicals Ltd. | 6,903,076 | 42,407,417 | |||
Israel Corp. Ltd. (The) | 9,284 | 4,884,229 | |||
Israel Discount Bank Class Aa | 14,491,096 | 32,941,808 | |||
Koor Industries Ltd.a | 273,513 | 14,869,350 | |||
Makhteshim-Agan | |||||
Industries Ltd. | 2,967,628 | 17,759,311 | |||
Mizrahi Tefahot Bank Ltd. | 4,618,540 | 32,897,238 | |||
NICE Systems Ltd.a | 169,000 | 5,792,339 | |||
Orbotech Ltd.a | 570,456 | 12,749,692 | |||
Super-Sol Ltd.a | 1,658,603 | 6,440,069 | |||
Syneron Medical Ltd.a | 168,800 | 4,508,648 | |||
Teva Pharmaceutical | |||||
Industries Ltd. | 4,165,984 | 148,912,189 | |||
488,020,054 | |||||
MEXICO – 7.21% | |||||
Alfa SAB de CV Class Ab | 3,629,200 | 22,977,563 | |||
America Movil SAB de CV | |||||
Series Lb | 90,308,000 | 197,735,846 | |||
Carso Infraestructura y | |||||
Construccion SA de CVa,b | 2,849,700 | 2,524,954 |
30 | 2007 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI EMERGING MARKETS INDEX FUND
February 28, 2007
Security | Shares | Value | |||
Cemex SA de CV | 39,414,800 | $ | 134,537,169 | ||
Consorcio Ara SA de CVb | 5,915,000 | 37,280,080 | |||
Controladora Comercial | 9,452,800 | 24,102,015 | |||
Corporacion GEO SAB de | 5,645,700 | 30,545,048 | |||
Desarrolladora Homex SAB | 1,089,900 | 9,905,963 | |||
Empresas ICA SAB de CVa,b | 5,196,100 | 18,560,160 | |||
Fomento Economico | 5,154,500 | 57,086,480 | |||
Grupo Carso SA de CV | 761,241 | 2,568,387 | |||
Grupo Financiero Banorte | 10,144,456 | 39,634,449 | |||
Grupo Mexico SA de CV | 11,186,700 | 48,837,833 | |||
Grupo Modelo SA de CV | 11,083,698 | 57,037,056 | |||
Grupo Televisa SA Series CPOb | 17,470,800 | 95,633,926 | |||
Industrias Penoles SA de | 761,488 | 7,405,440 | |||
Kimberly-Clark de Mexico | 6,245,600 | 26,197,723 | |||
Telefonos de Mexico SA de | 47,524,900 | 69,103,129 | |||
TV Azteca SA de CV | 10,550,000 | 8,449,830 | |||
Urbi Desarrollos Urbanos | 3,436,300 | 13,441,037 | |||
Wal-Mart de Mexico SA de | 29,711,800 | 114,886,336 | |||
1,018,450,424 | |||||
PERU – 0.29% | |||||
Compania de Minas | 1,493,882 | 41,410,409 | |||
41,410,409 | |||||
PHILIPPINE ISLANDS – 1.58% | |||||
Ayala Corp. | 2,557,320 | 29,508,045 | |||
Ayala Land Inc. Class B | 31,228,000 | 9,812,538 |
Security | Shares | Value | |||
Bank of the Philippine Islands | 20,053,800 | $ | 25,618,619 | ||
Filinvest Land Inc.a | 329,224,375 | 11,396,424 | |||
Globe Telecom Inc. | 388,240 | 10,359,466 | |||
Jollibee Foods Corp. | 32,494,000 | 33,476,536 | |||
Manila Electric Co. Class B | 9,368,400 | 13,801,898 | |||
Megaworld Corp.d | 237,841,040 | 14,946,999 | |||
Metropolitan Bank& Trust Co. | 40 | 51 | |||
Petron Corp. | 169,644,000 | 15,380,078 | |||
Philippine Long Distance | 540,160 | 25,821,279 | |||
SM Investments Corp. | 1,612,040 | 11,708,527 | |||
SM Prime Holdings Inc. | 94,528,000 | 21,424,983 | |||
223,255,443 | |||||
RUSSIA – 9.15% | |||||
JSC MMC Norilsk Nickel ADR | 512,427 | 90,955,792 | |||
LUKOIL ADR | 3,527,076 | 279,697,127 | |||
Mobile TeleSystems | 759,600 | 38,967,480 | |||
OAO Gazprom ADR | 14,201,083 | 578,268,100 | |||
OAO Tatneft ADR | 208,957 | 17,970,302 | |||
Polyus Gold ADRa | 478,782 | 24,561,517 | |||
RAO Unified Energy | 200,028 | 23,743,324 | |||
Rostelecom ADRb | 604,307 | 29,478,095 | |||
Sberbank GDR | 78,820 | 34,254,585 | |||
Surgutneftegaz ADRb | 1,796,933 | 106,378,434 | |||
Vimpel-Communications | 844,000 | 67,908,240 | |||
1,292,182,996 | |||||
SOUTH AFRICA – 10.34% | |||||
African Bank Investments Ltd. | 8,215,591 | 31,175,713 | |||
Alexander Forbes Ltd.a | 8,164,152 | 18,464,837 | |||
Anglo Platinum Ltd. | 356,903 | 50,542,407 | |||
AngloGold Ashanti Ltd. | 930,130 | 40,283,083 | |||
AVI Ltd. | 3,403,408 | 9,358,635 | |||
Barloworld Ltd. | 1,782,732 | 42,501,440 | |||
Bidvest Group Ltd. | 2,105,974 | 40,826,356 | |||
Consol Ltd. | 3,403,408 | 8,960,893 | |||
Edgars Consolidated | 3,828,150 | 23,316,383 | |||
FirstRand Ltd. | 22,306,088 | 73,450,952 |
SCHEDULESOF INVESTMENTS | 31 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI EMERGING MARKETS INDEX FUND
February 28, 2007
Security | Shares | Value | |||
Foschini Ltd. | 4,871,828 | $ | 43,618,913 | ||
Gold Fields Ltd. | 2,781,026 | 47,779,826 | |||
Impala Platinum Holdings Ltd. | 3,194,088 | 90,465,418 | |||
Imperial Holdings Ltd.a | 2,029,457 | 45,760,652 | |||
Investec Ltd. | 3,701,085 | 43,507,454 | |||
JD Group Ltd. | 2,400,424 | 29,966,934 | |||
Liberty Group Ltd. | 625,406 | 6,878,924 | |||
Metropolitan Holdings Ltd. | 7,477,163 | 15,626,040 | |||
Mittal Steel South Africa Ltd. | 2,831,003 | 42,757,164 | |||
MTN Group Ltd. | 8,808,032 | 106,568,795 | |||
Nampak Ltd. | 5,844,973 | 18,684,177 | |||
Naspers Ltd. | 2,907,958 | 68,567,885 | |||
Nedbank Group Ltd. | 2,660,289 | 49,286,286 | |||
Network Healthcare | 14,603,032 | 28,309,399 | |||
Pick’n Pay Stores Ltd. | 3,868,910 | 17,479,326 | |||
Reunert Ltd. | 1,339,428 | 14,087,999 | |||
Sanlam Ltd. | 13,516,660 | 35,216,574 | |||
Sappi Ltd. | 345,690 | 4,871,685 | |||
Sasol Ltd. | 3,627,916 | 116,220,207 | |||
Shoprite Holdings Ltd. | 9,836,821 | 36,516,322 | |||
SPAR Group Ltd. (The) | 1,357,276 | 8,399,350 | |||
Standard Bank Group Ltd. | 7,589,330 | 104,866,796 | |||
Steinhoff International | 1,418,764 | 5,081,435 | |||
Telkom South Africa Ltd. | 1,022,235 | 22,909,038 | |||
Tiger Brands Ltd. | 1,302,864 | 31,276,045 | |||
Tongaat-Hulett Group Ltd. | 1,228,209 | 20,263,853 | |||
Truworths International Ltd. | 7,542,831 | 35,259,959 | |||
Woolworths Holdings Ltd. | 10,964,568 | 30,692,891 | |||
1,459,800,046 | |||||
SOUTH KOREA – 15.29% | |||||
Hyundai Heavy Industries | 285,120 | 48,746,225 | |||
Kookmin Bank ADRa | 4,663,100 | 416,601,354 | |||
Korea Electric Power | 12,289,688 | 258,206,345 | |||
KT Corp. ADRa | 5,971,300 | 134,234,824 | |||
LG.Philips LCD Co. | 5,291,880 | 85,516,781 | |||
POSCO ADR | 5,175,408 | 479,760,322 |
Security | Shares | Value | |||
Samsung Electronics Co. | 1,952,300 | $ | 586,178,075 | ||
Samsung Heavy Industries | 1,080,000 | 26,492,514 | |||
SKTelecom Co. Ltd. ADR | 5,411,884 | 123,390,955 | |||
2,159,127,395 | |||||
TAIWAN – 10.93% | |||||
AU Optronics Corp. ADRb | 11,282,592 | 159,648,677 | |||
Chunghwa Telecom Co. Ltd. | 14,277,948 | 275,421,617 | |||
Siliconware Precision | 34,833,568 | 316,288,797 | |||
Taiwan Semiconductor | 46,741,044 | 518,825,588 | |||
United Microelectronics | 82,806,597 | 273,261,770 | |||
1,543,446,449 | |||||
THAILAND – 2.28% | |||||
Advanced Info Service PCL | 6,472,400 | 14,203,057 | |||
Aromatics Thailand PCL | 8,478,300 | 10,863,212 | |||
Bangkok Bank PCL | 7,865,600 | 26,180,053 | |||
Bangkok Expressway PCL | 15,628,400 | 10,817,891 | |||
Banpu PCL | 2,511,000 | 13,830,839 | |||
Charoen Pokphand Foods PCL | 28,000 | 3,827 | |||
Electricity Generating PCL | 3,378,700 | 9,902,228 | |||
Kasikornbank PCL | 12,016,400 | 23,360,306 | |||
Kiatnakin Bank PCL | 6,273,100 | 5,497,046 | |||
Krung Thai Bank PCL | 14,309,100 | 4,889,118 | |||
PTT Chemical PCL | 5,131,968 | 11,790,678 | |||
PTT Exploration & | 13,444,400 | 38,808,577 | |||
PTT PCL | 7,471,500 | 45,775,317 | |||
Ratchaburi Electricity | 27,707,600 | 36,113,735 | |||
Siam Cement PCL | 2,511,000 | 17,602,887 | |||
Siam City Cement PCL | 508,400 | 4,073,190 | |||
Siam Makro PCL | 10,876,800 | 26,431,105 | |||
Thai Airways | 2,353,600 | 2,929,001 |
32 | 2007 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI EMERGING MARKETS INDEX FUND
February 28, 2007
Security | Shares | Value | |||
Thai Union Frozen | 10,044,000 | $ | 6,804,477 | ||
Thanachart Capital PCL | 15,118,900 | 5,388,474 | |||
Tisco Bank PCL | 6,344,700 | 3,961,933 | |||
United Broadcasting Corp. PCLa,d | 5,658,800 | 3,000,247 | |||
322,227,198 | |||||
TURKEY – 1.10% | |||||
Adana Cimento Sanayi | 3,207,552 | 20,975,507 | |||
AkbankTAS b | 3,290,756 | 21,635,938 | |||
Akcansa Cimento Sanayi | 442,267 | 2,860,903 | |||
Arcelik ASb | 793,071 | 5,354,421 | |||
Dogan Yayin Holding ASa,b | 2,296,528 | 7,663,211 | |||
Eregli Demir ve Celik | 1,468,972 | 12,046,713 | |||
Hurriyet Gazetecilik ve | 1,831,487 | 5,023,803 | |||
Tofas Turk Otomobil | 5,980,077 | 22,195,408 | |||
Trakya Cam Sanayii ASb | 141,872 | 411,223 | |||
Tupras-Turkiye Petrol | 729,326 | 14,050,289 | |||
Turk Sise ve Cam | 2,774,418 | 11,180,051 | |||
Turkiye Garanti Bankasi ASb | 3,980,304 | 15,195,222 | |||
Yapi ve Kredi Bankasi ASa,b | 7,510,168 | 16,246,811 | |||
154,839,500 | |||||
TOTAL COMMON STOCKS | 13,806,866,342 | ||||
PREFERRED STOCKS – 1.43% | |||||
BRAZIL – 1.43% | |||||
Petroleo Brasileiro SA ADR | 2,483,208 | 202,580,109 | |||
202,580,109 | |||||
TOTAL PREFERRED STOCKS | 202,580,109 |
Security | Shares or Principal | Value | ||||
EXCHANGE-TRADED FUNDS – 0.55% | ||||||
iShares MSCI Malaysia | 902,055 | $ | 9,083,694 | |||
iShares MSCI South Korea | 562,297 | 27,546,930 | ||||
iShares MSCI Taiwan | 2,897,456 | 40,361,562 | ||||
TOTAL EXCHANGE-TRADED FUNDS | 76,992,186 | |||||
SHORT-TERM INVESTMENTS – 7.21% | ||||||
CERTIFICATES OF DEPOSITf – 0.34% | ||||||
Credit Suisse First Boston NY | $ | 10,997,597 | 10,997,597 | |||
Deutsche Bank AG | 18,329,327 | 18,329,327 | ||||
Washington Mutual Bank | 18,329,327 | 18,329,327 | ||||
47,656,251 | ||||||
COMMERCIAL PAPERf – 1.62% | ||||||
Amstel Funding Corp. | 6,973,283 | 6,926,135 | ||||
BNP Paribas Finance Inc. | 2,566,106 | 2,530,740 | ||||
Bryant Park Funding LLC | 1,806,832 | 1,805,509 | ||||
Cantabric Finance LLC | 5,865,385 | 5,861,108 | ||||
Cheyne Finance LLC | 5,498,798 | 5,459,312 | ||||
Concord Minutemen | 3,736,763 | 3,726,880 | ||||
Crown Point Capital Co. LLC | 8,469,249 | 8,299,205 | ||||
Edison Asset Securitization LLC | 3,038,489 | 3,020,460 |
SCHEDULESOF INVESTMENTS | 33 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI EMERGING MARKETS INDEX FUND
February 28, 2007
Security | Principal | Value | ||||
Five Finance Inc. | $ | 3,372,596 | $ | 3,348,145 | ||
General Electric Capital Corp. | 12,830,529 | 12,610,161 | ||||
Giro Funding Corp. | 12,024,039 | 12,009,541 | ||||
Grampian Funding LLC | 14,296,875 | 14,119,309 | ||||
Harrier Finance Funding LLC | 7,331,731 | 7,230,684 | ||||
Irish Permanent Treasury PLC | 3,665,865 | 3,596,766 | ||||
KKR Pacific Funding Trust | 9,164,664 | 9,148,503 | ||||
Lexington Parker Capital Co. LLC | 9,263,495 | 9,105,821 | ||||
Liberty Street Funding Corp. | 879,808 | 879,164 | ||||
Lockhart Funding LLC | 16,540,092 | 16,382,981 | ||||
Nationwide Building Society | 6,965,144 | 6,921,800 | ||||
Nestle Capital Corp. | 4,399,039 | 4,296,933 | ||||
Sedna Finance Inc. | 4,179,087 | 4,150,606 | ||||
Simba Funding Corp. | 7,331,731 | 7,179,231 | ||||
Societe Generale | 18,329,327 | 18,128,886 | ||||
Thames Asset Global | 27,930,669 | 27,903,659 |
Security | Shares or Principal | Value | ||||
Thornburg Mortgage | $ | 5,366,827 | $ | 5,358,169 | ||
Three Pillars Funding Corp. | 3,849,012 | 3,845,982 | ||||
Tulip Funding Corp. | 14,074,064 | 14,045,110 | ||||
Westpac Banking Corp. | 6,598,558 | 6,471,792 | ||||
Zela Finance Inc. | 4,399,039 | 4,311,987 | ||||
228,674,579 | ||||||
MEDIUM-TERM NOTES – 0.15% | ||||||
Bank of America N.A. | 1,832,933 | 1,832,933 | ||||
Cullinan Finance Corp. | 5,498,798 | 5,498,798 | ||||
K2 USA LLC | 5,498,798 | 5,498,798 | ||||
Sigma Finance Inc. | 8,578,125 | 8,578,125 | ||||
21,408,654 | ||||||
MONEY MARKET FUNDS – 0.04% | ||||||
Barclays Global Investors Funds | 5,552,948 | 5,552,948 | ||||
5,552,948 | ||||||
REPURCHASE AGREEMENTSf – 0.99% | ||||||
Banc of America Securities LLC | $ | 14,663,462 | 14,663,462 |
34 | 2007 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI EMERGING MARKETS INDEX FUND
February 28, 2007
Security | Principal | Value | ||||
Bear Stearns Companies Inc. (The) | $ | 10,997,596 | $ | 10,997,596 | ||
BNP Securities Corp. | 733,173 | 733,173 | ||||
Citigroup Global Markets Holdings Inc. | 10,997,596 | 10,997,596 | ||||
Citigroup Global Markets Holdings Inc. | 14,663,462 | 14,663,462 | ||||
Citigroup Global Markets Holdings Inc. | 8,064,904 | 8,064,904 |
Security | Principal | Value | ||||
Citigroup Global Markets Holdings Inc. | $ | 4,399,039 | $ | 4,399,039 | ||
Goldman Sachs Group Inc. (The) | 2,720,585 | 2,720,585 | ||||
Greenwich Capital Markets Inc. | 30,793,270 | 30,793,270 | ||||
HSBC Securities Inc. | 3,665,865 | 3,665,865 |
SCHEDULESOF INVESTMENTS | 35 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI EMERGING MARKETS INDEX FUND
February 28, 2007
Security | Principal | Value | ||||
JP Morgan Securities Inc. | $ | 1,832,933 | $ | 1,832,933 | ||
Merrill Lynch & Co. Inc. | 7,331,731 | 7,331,731 | ||||
Morgan Stanley 5.36%, due 3/1/07, maturity value $7,332,823 (collateralized by non-U.S. Government debt securities, value $7,706,093, 0.00% to 10.00%, 3/1/07 to 2/28/37). | 7,331,731 | 7,331,731 | ||||
Morgan Stanley 5.51%, due 2/4/08, maturity value $5,394,574 (collateralized by non-U.S. Government debt securities, value $6,086,369, 0.00% to 10.00%, 3/1/07 to 2/28/37).h | 5,132,212 | 5,132,212 | ||||
Wachovia Capital 5.38%, due 3/1/07, maturity value $16,132,219 (collateralized by non-U.S. Government debt securities, value $16,949,671, 0.00% to 8.32%, 2/15/08 to 3/15/49). | 16,129,808 | 16,129,808 | ||||
139,457,367 |
Security | Principal | Value | ||||
TIME DEPOSITSf – 0.30% | ||||||
Bank of Nova Scotia | ||||||
5.30%, 03/02/07 | $ | 3,074,635 | $ | 3,074,635 | ||
Chase Bank USA N.A. | ||||||
5.38%, 03/01/07 | 10,997,596 | 10,997,596 | ||||
Citibank N.A. | ||||||
5.47%, 03/01/07 | 10,997,596 | 10,997,596 | ||||
Deutsche Bank AG | ||||||
5.38%, 03/01/07 | 17,220,110 | 17,220,110 | ||||
42,289,937 | ||||||
VARIABLE & FLOATING RATE NOTESf – 3.77% | ||||||
Allstate Life Global Funding II | ||||||
5.30% - 5.40%, | 18,769,231 | 18,771,099 | ||||
American Express Centurion Bank | ||||||
5.41%, 07/19/07 | 8,064,904 | 8,068,537 | ||||
American Express Credit Corp. | ||||||
5.42%, 03/05/08 | 2,199,519 | 2,200,590 | ||||
AmeriCredit Automobile Receivables Trust | ||||||
5.35%, 03/06/07 | 334,142 | 334,142 | ||||
Arkle Master Issuer PLC | ||||||
Series 2006-1A Class 1A 5.30%, 11/19/07e | 5,498,798 | 5,498,798 | ||||
ASIF Global Financing | ||||||
5.40%, 05/03/07e | 733,173 | 733,240 | ||||
Australia & New Zealand Banking Group Ltd. | ||||||
5.32%, 02/22/08e | 4,765,625 | 4,765,625 | ||||
Bank of Ireland | ||||||
5.30% - 5.32%, | 10,631,010 | 10,631,315 | ||||
Beta Finance Inc. | ||||||
5.29% - 5.41%, | 18,695,914 | 18,696,255 | ||||
BMW US Capital LLC | ||||||
5.32%, 01/15/08e | 7,331,731 | 7,331,731 | ||||
BNP Paribas | ||||||
5.33%, 11/19/07e | 13,563,702 | 13,563,702 |
36 | 2007 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI EMERGING MARKETS INDEX FUND
February 28, 2007
Security | Principal | Value | ||||
Brigantine High Grade Funding Ltd. | ||||||
5.40%, 09/05/07e | $ | 7,038,462 | $ | 7,037,803 | ||
Carlyle Loan Investment Ltd. | ||||||
5.37%, | 5,352,164 | 5,352,163 | ||||
CC USA Inc. | ||||||
5.36%, 07/30/07e | 3,665,865 | 3,666,067 | ||||
Commodore CDO Ltd. | ||||||
5.44%, 12/12/07e | 1,832,933 | 1,832,933 | ||||
Credit Agricole SA | ||||||
5.33%, 11/23/07 | 7,331,731 | 7,331,731 | ||||
Credit Suisse First Boston NY | ||||||
5.36%, 04/24/07 | 3,665,865 | 3,665,890 | ||||
Cullinan Finance Corp. | ||||||
5.36%, 04/25/07e | 1,832,933 | 1,832,933 | ||||
DaimlerChrysler Auto Trust | ||||||
Series 2006-C Class A1 5.33%, 10/08/07e | 562,405 | 562,405 | ||||
DEPFA Bank PLC | ||||||
5.40%, 12/14/07e | 7,331,731 | 7,331,731 | ||||
Dorada Finance Inc. | ||||||
5.33% - 5.41%, | 8,431,491 | 8,431,633 | ||||
Eli Lilly Services Inc. | ||||||
5.31%, 03/01/07e | 4,893,930 | 4,893,930 | ||||
Fifth Third Bancorp | ||||||
5.32%, 02/22/08e | 14,663,462 | 14,663,462 | ||||
Five Finance Inc. | ||||||
5.31% - 5.37%, | 4,765,625 | 4,765,385 | ||||
General Electric Capital Corp. | ||||||
5.28% - 5.45%, | 7,698,318 | 7,699,075 | ||||
Granite Master Issuer PLC | ||||||
5.29%, 08/20/07e | 25,661,058 | 25,661,058 | ||||
Harrier Finance Funding LLC | ||||||
5.29% - 5.36%, | 9,531,250 | 9,531,302 | ||||
Hartford Life Global Funding Trust | ||||||
5.36% - 5.40%, | 10,997,596 | 10,998,303 |
Security | Principal | Value | ||||
HBOS Treasury Services PLC | ||||||
5.46%, 01/24/08e | $ | 7,331,731 | $ | 7,331,731 | ||
Holmes Financing PLC | ||||||
5.29%, 07/16/07e | 12,830,529 | 12,830,529 | ||||
JP Morgan Securities Inc. | ||||||
5.40%, 11/16/07 | 14,663,462 | 14,663,462 | ||||
JPMorgan Chase & Co. | ||||||
5.29% - 5.45%, | 20,162,260 | 20,162,260 | ||||
K2 USA LLC | ||||||
5.20% - 5.33%, | 5,498,798 | 5,498,703 | ||||
Kestrel Funding LLC | ||||||
5.30%, 07/11/07e | 2,932,692 | 2,932,579 | ||||
Kommunalkredit Austria AG | ||||||
5.32%, 02/08/08e | 4,399,039 | 4,399,039 | ||||
Leafs LLC | ||||||
5.32%, 01/22/08e | 7,103,494 | 7,103,494 | ||||
Links Finance LLC | ||||||
5.28% - 5.35%, | 8,064,904 | 8,064,742 | ||||
Lothian Mortgages Master Issuer PLC | ||||||
5.29%, 04/24/07e | 2,584,814 | 2,584,814 | ||||
Marshall & Ilsley Bank | ||||||
5.32%, 02/15/08 | 4,032,452 | 4,032,452 | ||||
Master Funding LLC | ||||||
5.35%, | 13,268,453 | 13,268,454 | ||||
Merrill Lynch & Co. Inc. | ||||||
5.46%, 05/30/07h | 8,064,904 | 8,064,904 | ||||
Metropolitan Life Global Funding I | ||||||
5.33%, 03/06/08e | 10,997,596 | 10,997,596 | ||||
Metropolitan Life Insurance Funding Agreement | ||||||
5.44%, 08/01/07e,h | 733,173 | 733,173 | ||||
Mound Financing PLC | ||||||
5.29%, 05/08/07e | 6,891,827 | 6,891,827 | ||||
Natexis Banques Populaires | ||||||
5.33% - 5.35%, | 11,730,770 | 11,730,636 |
SCHEDULESOF INVESTMENTS | 37 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI EMERGING MARKETS INDEX FUND
February 28, 2007
Security | Principal | Value | ||||
National City Bank of Indiana | ||||||
5.34%, 05/21/07 | $ | 3,665,865 | $ | 3,665,934 | ||
Nationwide Building Society | ||||||
5.37% - 5.48%, | 24,194,712 | 24,197,436 | ||||
Newcastle Ltd. | ||||||
5.34%, | 7,350,060 | 7,349,087 | ||||
Northern Rock PLC | ||||||
5.38%, 02/01/08e | 8,798,077 | 8,798,243 | ||||
Northlake CDO I | ||||||
5.42%, 09/06/07e | 2,199,519 | 2,199,519 | ||||
Pricoa Global Funding I | ||||||
5.31%, 02/27/08e | 9,897,837 | 9,897,837 | ||||
Sedna Finance Inc. | ||||||
5.32% - 5.34%, | 10,631,010 | 10,630,933 | ||||
Skandinaviska Enskilda Banken | ||||||
5.32%, 02/15/08e | 7,331,731 | 7,331,731 | ||||
Strips III LLC | ||||||
5.37%, 07/24/07e | 1,491,880 | 1,491,880 | ||||
SunTrust Bank | ||||||
5.29%, 05/01/07 | 7,331,731 | 7,331,795 | ||||
Tango Finance Corp. | ||||||
5.27% - 5.34%, | 17,889,424 | 17,888,833 | ||||
Union Hamilton Special Funding LLC | ||||||
5.36% - 5.37%, | 12,097,356 | 12,097,356 | ||||
Wachovia Asset Securitization Inc. | ||||||
5.31%, 03/25/07e | 8,276,199 | 8,276,199 | ||||
Wachovia Bank N.A. | ||||||
5.36%, 05/22/07 | 14,663,462 | 14,663,462 | ||||
Wal-Mart Stores Inc. | ||||||
5.50%, 07/16/07e | 5,498,798 | 5,500,190 | ||||
Wells Fargo & Co. | ||||||
5.33%, 11/15/07e | 3,665,865 | 3,666,011 |
Security | Principal | Value | |||||
WhistleJacket Capital Ltd. | |||||||
5.28% - 5.35%, | $ | 5,498,798 | $ | 5,498,820 | |||
White Pine Finance LLC | |||||||
5.28% - 5.32%, | 21,995,193 | 21,993,221 | |||||
Wind Master Trust | |||||||
5.31%, 07/25/07e | 2,932,692 | 2,932,692 | |||||
532,554,412 | |||||||
TOTAL SHORT-TERM INVESTMENTS (Cost: $1,017,594,148) | 1,017,594,148 | ||||||
TOTAL INVESTMENTS IN SECURITIES – 106.98% | 15,104,032,785 | ||||||
Other Assets, Less Liabilities – (6.98)% | (985,666,697 | ) | |||||
NET ASSETS – 100.00% | $ | 14,118,366,088 | |||||
ADR – American Depositary Receipts
GDR – Global Depositary Receipts
a | Non-income earning security. |
b | All or a portion of this security represents a security on loan. See Note 5. |
c | Affiliated issuer. See Note 2. |
d | Security valued at fair value in accordance with procedures approved by the Board of Directors. See Note 1. |
e | This security or a portion of these securities may be resold to qualified institutional buyers under Rule 144A or pursuant to Section 4(2) of the Securities Act of 1933. |
f | All or a portion of this security (these securities) represent(s) an investment of securities lending collateral. See Note 5. |
g | The rate quoted is the annualized seven-day yield of the fund at period end. |
h | 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 financial statements.
38 | 2007 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited)
iSHARES® MSCI HONG KONG INDEX FUND
February 28, 2007
Security | Shares | Value | |||
COMMON STOCKS – 99.92% | |||||
AIRLINES – 1.05% | |||||
Cathay Pacific Airways Ltd.a | 5,705,000 | $ | 14,225,439 | ||
14,225,439 | |||||
APPAREL – 1.02% | |||||
Yue Yuen Industrial Holdings Ltd.a | 3,993,500 | 13,801,889 | |||
13,801,889 | |||||
BANKS – 13.08% | |||||
Bank of East Asia Ltd. | 8,671,700 | 49,617,269 | |||
BOC Hong Kong Holdings Ltd. | 22,249,500 | 53,827,368 | |||
Hang Seng Bank Ltd.a | 4,593,700 | 62,564,121 | |||
Wing Hang Bank Ltd. | 1,047,000 | 11,847,318 | |||
177,856,076 | |||||
CHEMICALS – 1.02% | |||||
Kingboard Chemical Holdings Co. Ltd. | 3,288,500 | 13,806,792 | |||
13,806,792 | |||||
DISTRIBUTION & WHOLESALE – 7.96% | |||||
Esprit Holdings Ltd. | 6,220,500 | 64,814,293 | |||
Li & Fung Ltd. | 13,693,000 | 43,468,172 | |||
108,282,465 | |||||
DIVERSIFIED FINANCIAL SERVICES – 4.83% | |||||
Hong Kong Exchanges & Clearing Ltd. | 6,372,000 | 65,617,987 | |||
65,617,987 | |||||
ELECTRIC – 8.94% | |||||
CLP Holdings Ltd. | 10,839,700 | 79,435,355 | |||
Hongkong Electric Holdings Ltd. | 8,329,500 | 42,168,340 | |||
121,603,695 | |||||
ELECTRICAL COMPONENTS & | |||||
Johnson Electric Holdings Ltd.a | 8,557,500 | 6,243,712 | |||
6,243,712 | |||||
ENGINEERING & CONSTRUCTION – 3.19% | |||||
Cheung Kong Infrastructure Holdings Ltd.a | 2,677,000 | 9,389,015 | |||
New World Development Co. Ltd.a | 15,431,800 | 34,015,027 | |||
43,404,042 |
Security | Shares | Value | |||
GAS – 3.44% | |||||
Hong Kong & China Gas Co. Ltd. (The)a | 21,415,663 | $ | 46,766,152 | ||
46,766,152 | |||||
HAND & MACHINE TOOLS – 0.63% | |||||
Techtronic Industries Co. Ltd. | 6,275,500 | 8,595,145 | |||
8,595,145 | |||||
HOLDING COMPANIES - DIVERSIFIED – 16.11% | |||||
Hutchison Whampoa Ltd. | 12,749,800 | 121,340,403 | |||
Melco International Development Ltd.a | 4,397,000 | 8,498,739 | |||
Swire Pacific Ltd. Class A | 5,587,000 | 63,219,641 | |||
Wharf Holdings Ltd. (The) | 7,341,000 | 26,028,916 | |||
219,087,699 | |||||
LODGING – 1.45% | |||||
Shangri-La Asia Ltd. | 7,598,000 | 19,694,520 | |||
19,694,520 | |||||
MEDIA – 0.78% | |||||
Television Broadcasts Ltd. | 1,619,000 | 10,538,017 | |||
10,538,017 | |||||
REAL ESTATE – 25.56% | |||||
Cheung Kong (Holdings) Ltd. | 8,987,000 | 110,147,492 | |||
Hang Lung Properties Ltd. | 13,692,000 | 36,191,621 | |||
Henderson Land Development Co. Ltd. | 5,252,000 | 29,781,703 | |||
Hopewell Holdings Ltd. | 3,740,000 | 14,385,904 | |||
Hysan Development Co. Ltd. | 3,788,000 | 10,424,843 | |||
Kerry Properties Ltd.a | 2,852,500 | 14,167,019 | |||
Shui On Land Ltd.b | 10,269,000 | 9,332,706 | |||
Shun Tak Holdings Ltd.a | 5,533,000 | 8,201,444 | |||
Sino Land Co. Ltd. | 7,756,000 | 17,830,570 | |||
Sun Hung Kai Properties Ltd. | 8,198,000 | 97,014,336 | |||
347,477,638 | |||||
REAL ESTATE INVESTMENT TRUSTS – 2.16% | |||||
Link REIT (The) | 12,551,000 | 29,335,952 | |||
29,335,952 | |||||
RETAIL – 0.31% | |||||
Giordano International Ltd.a | 9,128,000 | 4,241,343 | |||
4,241,343 |
SCHEDULESOF INVESTMENTS | 39 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI HONG KONG INDEX FUND
February 28, 2007
Security | Shares or Principal | Value | ||||
SEMICONDUCTORS – 0.64% | ||||||
ASM Pacific Technology Ltd.a | 1,039,500 | $ | 6,067,509 | |||
Solomon Systech International Ltd.a | 13,692,000 | 2,699,036 | ||||
8,766,545 | ||||||
TELECOMMUNICATIONS – 4.70% | ||||||
Foxconn International Holdings Ltd.a,b | 12,551,000 | 33,175,653 | ||||
Hutchison Telecommunications International Ltd.b | 8,585,000 | 17,912,202 | ||||
PCCW Ltd.a | 21,679,576 | 12,793,012 | ||||
63,880,867 | ||||||
TEXTILES – 0.19% | ||||||
Texwinca Holdings Ltd.a | 3,602,000 | 2,558,926 | ||||
2,558,926 | ||||||
TRANSPORTATION – 2.40% | ||||||
MTR Corp. Ltd.a | 8,334,083 | 22,029,212 | ||||
Orient Overseas International Ltd. | 1,301,200 | 10,626,392 | ||||
32,655,604 | ||||||
TOTAL COMMON STOCKS | 1,358,440,505 | |||||
SHORT-TERM INVESTMENTS – 11.26% | ||||||
CERTIFICATES OF DEPOSITc– 0.52% | ||||||
Credit Suisse First Boston NY | ||||||
5.28% - 5.43%, | $ | 1,641,824 | 1,641,824 | |||
Deutsche Bank AG | ||||||
5.35%, 08/08/07 | 2,736,373 | 2,736,373 | ||||
Washington Mutual Bank | ||||||
5.33%, 03/19/07 | 2,736,373 | 2,736,373 | ||||
7,114,570 | ||||||
COMMERCIAL PAPERc – 2.51% | ||||||
Amstel Funding Corp. | ||||||
5.22%, | 1,041,037 | 1,034,011 | ||||
BNP Paribas Finance Inc. | ||||||
5.12%, 06/06/07 | 383,092 | 377,812 |
Security | Principal | Value | ||||
Bryant Park Funding LLC | ||||||
5.27%, 03/06/07d | $ | 269,741 | $ | 269,543 | ||
Cantabric Finance LLC | ||||||
5.25%, 03/06/07d | 875,639 | 875,001 | ||||
Cheyne Finance LLC | ||||||
5.24%, | 820,912 | 815,017 | ||||
Concord Minutemen Capital Co. LLC | ||||||
5.29%, 03/19/07d | 557,859 | 556,383 | ||||
Crown Point Capital Co. LLC | ||||||
5.20%, 07/18/07d | 1,264,369 | 1,238,983 | ||||
Edison Asset Securitization LLC | ||||||
5.21%, 04/11/07d | 453,614 | 450,922 | ||||
Five Finance Inc. | ||||||
5.22%, 04/20/07d | 503,493 | 499,842 | ||||
General Electric Capital Corp. | ||||||
5.12% - 5.20%, | 1,915,461 | 1,882,562 | ||||
Giro Funding Corp. | ||||||
5.25%, 03/05/07 - 03/12/07d | 1,795,061 | 1,792,896 | ||||
Grampian Funding LLC | ||||||
5.14% - 5.23%, | 2,134,371 | 2,107,863 | ||||
Harrier Finance Funding LLC | ||||||
5.12%, 06/06/07d | 1,094,549 | 1,079,464 | ||||
Irish Permanent Treasury PLC | ||||||
5.18%, 07/10/07 | 547,275 | 536,959 | ||||
KKR Pacific Funding Trust | ||||||
5.29%, 03/13/07d | 1,368,187 | 1,365,774 | ||||
Lexington Parker Capital Co. LLC | ||||||
5.18% - 5.20%, | 1,382,941 | 1,359,402 | ||||
Liberty Street Funding Corp. | ||||||
5.27%, 03/06/07d | 131,346 | 131,250 | ||||
Lockhart Funding LLC | ||||||
5.25%, | 2,469,259 | 2,445,804 | ||||
Nationwide Building Society | ||||||
5.21%, 04/13/07d | 1,039,822 | 1,033,351 | ||||
Nestle Capital Corp. | ||||||
5.19%, 08/09/07 | 656,730 | 641,486 |
40 | 2007 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI HONG KONG INDEX FUND
February 28, 2007
Security | Shares or Principal | Value | ||||
Sedna Finance Inc. | $ | 623,893 | $ | 619,641 | ||
Simba Funding Corp. | 1,094,549 | 1,071,783 | ||||
Societe Generale | 2,736,373 | 2,706,449 | ||||
Thames Asset Global Securitization No. 1 Inc. | ||||||
5.25% - 5.28%, | 4,169,751 | 4,165,719 | ||||
Thornburg Mortgage Capital Resources LLC | 801,210 | 799,917 | ||||
Three Pillars Funding Corp. | ||||||
5.26%, | 574,616 | 574,164 | ||||
Tulip Funding Corp. | 2,101,108 | 2,096,785 | ||||
Westpac Banking Corp. | 985,094 | 966,170 | ||||
Zela Finance Inc. | 656,730 | 643,734 | ||||
34,138,687 | ||||||
MEDIUM-TERM NOTESc – 0.24% | ||||||
Bank of America N.A. | 273,637 | 273,637 | ||||
Cullinan Finance Corp. | 820,912 | 820,912 | ||||
K2 USA LLC | 820,912 | 820,912 | ||||
Sigma Finance Inc. | 1,280,622 | 1,280,622 | ||||
3,196,083 | ||||||
MONEY MARKET FUNDS – 0.15% | ||||||
Barclays Global Investors Funds Institutional Money Market Fund, Institutional Shares | 2,063,042 | 2,063,042 | ||||
2,063,042 |
Security | Principal | Value | ||||
REPURCHASE AGREEMENTSc – 1.53% | ||||||
Banc of America Securities LLC | $ | 2,189,098 | $ | 2,189,098 | ||
Bear Stearns Companies Inc. (The) | 1,641,824 | 1,641,824 | ||||
BNP Securities Corp. | 109,455 | 109,455 | ||||
Citigroup Global Markets Holdings Inc. | 1,641,824 | 1,641,824 | ||||
Citigroup Global Markets Holdings Inc. | 2,189,098 | 2,189,098 | ||||
Citigroup Global Markets Holdings Inc. | 1,204,004 | 1,204,004 |
SCHEDULESOF INVESTMENTS | 41 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI HONG KONG INDEX FUND
February 28, 2007
Security | Principal | Value | ||||
Citigroup Global Markets Holdings Inc. | $ | 656,730 | $ | 656,730 | ||
Goldman Sachs Group Inc. (The) | 406,154 | 406,154 | ||||
Greenwich Capital Markets Inc. | 4,597,107 | 4,597,107 | ||||
HSBC Securities Inc. | 547,275 | 547,275 | ||||
JP Morgan Securities Inc. | 273,637 | 273,637 | ||||
Merrill Lynch & Co. Inc. | 1,094,549 | 1,094,549 |
Security | Principal | Value | ||||
Morgan Stanley | $ | 1,094,549 | $ | 1,094,549 | ||
Morgan Stanley | 766,184 | 766,184 | ||||
Wachovia Capital | 2,408,008 | 2,408,008 | ||||
20,819,496 | ||||||
TIME DEPOSITSc – 0.46% | ||||||
Bank of Nova Scotia | 459,010 | 459,010 | ||||
Chase Bank USA N.A. | 1,641,824 | 1,641,824 | ||||
Citibank N.A. | 1,641,824 | 1,641,824 | ||||
Deutsche Bank AG | 2,570,779 | 2,570,779 | ||||
6,313,437 | ||||||
VARIABLE & FLOATING RATE NOTESc– 5.85% | ||||||
Allstate Life Global Funding II | 2,802,046 | 2,802,324 | ||||
American Express | 1,204,004 | 1,204,547 |
42 | 2007 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI HONG KONG INDEX FUND
February 28, 2007
Security | Principal | Value | ||||
American Express Credit Corp. | $ | 328,365 | $ | 328,525 | ||
AmeriCredit Automobile Receivables Trust | 49,884 | 49,884 | ||||
Arkle Master Issuer PLC Series 2006-1A Class 1A | 820,912 | 820,912 | ||||
ASIF Global Financing | 109,455 | 109,465 | ||||
Australia & New Zealand Banking Group Ltd. | 711,457 | 711,457 | ||||
Bank of Ireland | 1,587,096 | 1,587,141 | ||||
Beta Finance Inc. | 2,791,101 | 2,791,151 | ||||
BMW US Capital LLC | 1,094,549 | 1,094,549 | ||||
BNP Paribas | 2,024,916 | 2,024,916 | ||||
Brigantine High Grade Funding Ltd. | 1,050,767 | 1,050,669 | ||||
Carlyle Loan Investment Ltd. | 799,021 | 799,021 | ||||
CC USA Inc. | 547,275 | 547,305 | ||||
Commodore CDO Ltd. | 273,637 | 273,637 | ||||
Credit Agricole SA | 1,094,549 | 1,094,549 | ||||
Credit Suisse First Boston NY | 547,275 | 547,278 | ||||
Cullinan Finance Corp. | 273,637 | 273,637 | ||||
DaimlerChrysler Auto Trust Series 2006-C Class A1 | 83,961 | 83,961 |
Security | Principal | Value | ||||
DEPFA Bank PLC | $ | 1,094,549 | $ | 1,094,549 | ||
Dorada Finance Inc. | 1,258,732 | 1,258,752 | ||||
Eli Lilly Services Inc. | 730,612 | 730,612 | ||||
Fifth Third Bancorp | 2,189,098 | 2,189,098 | ||||
Five Finance Inc. | 711,457 | 711,421 | ||||
General Electric Capital Corp. | 1,149,277 | 1,149,390 | ||||
Granite Master Issuer PLC | 3,830,922 | 3,830,922 | ||||
Harrier Finance Funding LLC | 1,422,914 | 1,422,922 | ||||
Hartford Life Global Funding Trust | 1,641,824 | 1,641,929 | ||||
HBOS Treasury Services PLC | 1,094,549 | 1,094,549 | ||||
Holmes Financing PLC | 1,915,461 | 1,915,461 | ||||
JP Morgan Securities Inc. | 2,189,098 | 2,189,098 | ||||
JPMorgan Chase & Co. | 3,010,010 | 3,010,010 | ||||
K2 USA LLC | 820,912 | 820,897 | ||||
Kestrel Funding LLC | 437,820 | 437,803 | ||||
Kommunalkredit Austria AG | 656,730 | 656,730 | ||||
Leafs LLC | 1,060,476 | 1,060,476 |
SCHEDULESOF INVESTMENTS | 43 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI HONG KONG INDEX FUND
February 28, 2007
Security | Principal | Value | ||||
Links Finance LLC | ||||||
5.28% - 5.35%, | ||||||
05/10/07 - 05/16/07d | $ | 1,204,004 | $ | 1,203,980 | ||
Lothian Mortgages Master | ||||||
Issuer PLC | ||||||
5.29%, 04/24/07d | 385,885 | 385,885 | ||||
Marshall & Ilsley Bank | ||||||
5.32%, 02/15/08 | 602,002 | 602,002 | ||||
Master Funding LLC | ||||||
5.35%, 04/25/07 - 05/25/07d | 1,980,839 | 1,980,838 | ||||
Merrill Lynch & Co. Inc. | ||||||
5.46%, 05/30/07g | 1,204,004 | 1,204,004 | ||||
Metropolitan Life Global Funding I | ||||||
5.33%, 03/06/08d | 1,641,824 | 1,641,824 | ||||
Metropolitan Life Insurance | ||||||
Funding Agreement | ||||||
5.44%, 08/01/07d,g | 109,455 | 109,455 | ||||
Mound Financing PLC | ||||||
5.29%, 05/08/07d | 1,028,876 | 1,028,876 | ||||
Natexis Banques Populaires | ||||||
5.33% - 5.35%, | ||||||
06/20/07 - 02/08/08d | 1,751,279 | 1,751,259 | ||||
National City Bank of Indiana | ||||||
5.34%, 05/21/07 | 547,275 | 547,285 | ||||
Nationwide Building Society | ||||||
5.37% - 5.48%, | ||||||
07/20/07 - 01/28/08d | 3,612,013 | 3,612,419 | ||||
Newcastle Ltd. | ||||||
5.34%, 04/24/07 - 01/24/08d | 1,097,286 | 1,097,141 | ||||
Northern Rock PLC | ||||||
5.38%, 02/01/08d | 1,313,459 | 1,313,484 | ||||
Northlake CDO I | ||||||
5.42%, 09/06/07d | 328,365 | 328,365 | ||||
Pricoa Global Funding I | ||||||
5.31%, 02/27/08d | 1,477,641 | 1,477,641 | ||||
Sedna Finance Inc. | ||||||
5.32% - 5.34%, | ||||||
05/25/07 - 08/21/07d | 1,587,096 | 1,587,085 | ||||
Skandinaviska Enskilda Banken | ||||||
5.32%, 02/15/08d | 1,094,549 | 1,094,549 |
Security | Principal | Value | |||||
Strips III LLC | |||||||
5.37%, 07/24/07d | $ | 222,722 | $ | 222,722 | |||
SunTrust Bank | |||||||
5.29%, 05/01/07 | 1,094,549 | 1,094,559 | |||||
Tango Finance Corp. | |||||||
5.27% - 5.34%, | |||||||
04/25/07 - 07/16/07d | 2,670,700 | 2,670,611 | |||||
Union Hamilton Special | |||||||
Funding LLC | |||||||
5.36% - 5.37%, | |||||||
03/28/07 - 06/21/07d | 1,806,006 | 1,806,006 | |||||
Wachovia Asset | |||||||
Securitization Inc. | |||||||
5.31%, 03/25/07d | 1,235,548 | 1,235,548 | |||||
Wachovia Bank N.A. | |||||||
5.36%, 05/22/07 | 2,189,098 | 2,189,098 | |||||
Wal-Mart Stores Inc. | |||||||
5.50%, 07/16/07d | 820,912 | 821,120 | |||||
Wells Fargo & Co. | |||||||
5.33%, 11/15/07d | 547,275 | 547,296 | |||||
WhistleJacket Capital Ltd. | |||||||
5.28% - 5.35%, | |||||||
04/18/07 - 06/13/07d | 820,912 | 820,915 | |||||
White Pine Finance LLC | |||||||
5.28% - 5.32%, | |||||||
05/22/07 - 08/20/07d | 3,283,648 | 3,283,352 | |||||
Wind Master Trust | |||||||
5.31%, 07/25/07d | 437,820 | 437,820 | |||||
79,504,686 | |||||||
TOTAL SHORT-TERM INVESTMENTS | 153,150,001 | ||||||
TOTAL INVESTMENTS IN SECURITIES – 111.18% | 1,511,590,506 | ||||||
Other Assets, Less Liabilities – (11.18)% | (151,994,449 | ) | |||||
NET ASSETS – 100.00% | $ | 1,359,596,057 |
a | All or a portion of this security represents a security on loan. See Note 5. |
b | Non-income earning security. |
c | All or a portion of this security (these securities) represent(s) an investment of securities lending collateral. See Note 5. |
44 | 2007 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI HONG KONG INDEX FUND
February 28, 2007
d | This security or a portion of these securities may be resold to qualified institutional buyers under Rule 144A or pursuant to Section 4(2) of the Securities Act of 1933. |
e | Affiliated issuer. See Note 2. |
f | The rate quoted is the annualized seven-day yield of the fund at period end. |
g | 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 financial statements.
SCHEDULESOF INVESTMENTS | 45 |
Table of Contents
Schedule of Investments (Unaudited)
iSHARES® MSCI MALAYSIA INDEX FUND
February 28, 2007
Security | Shares | Value | |||
COMMON STOCKS – 99.79% | |||||
AGRICULTURE – 10.80% | |||||
British American Tobacco | |||||
(Malaysia) Bhd | 1,784,700 | $ | 22,671,753 | ||
Golden Hope Plantations Bhd | 5,987,800 | 11,196,143 | |||
Highlands & Lowlands Bhd | 2,079,400 | 3,442,912 | |||
IOI Corp. Bhd | 9,432,800 | 51,970,608 | |||
Kuala Lumpur Kepong Bhd | 5,181,300 | 15,530,588 | |||
104,812,004 | |||||
AIRLINES – 1.11% | |||||
AirAsia Bhda | 11,338,600 | 5,276,025 | |||
Malaysian Airline System Bhda | 3,471,800 | 5,500,568 | |||
10,776,593 | |||||
AUTO MANUFACTURERS – 1.36% | |||||
DRB-Hicom Bhd | 8,408,400 | 4,512,644 | |||
Proton Holdings Bhd | 3,439,800 | 7,070,100 | |||
Tan Chong Motor Holdings Bhd | 4,713,800 | 1,655,145 | |||
13,237,889 | |||||
AUTO PARTS & EQUIPMENT– 0.76% | |||||
UMW Holdings Bhd | 2,802,800 | 7,361,050 | |||
7,361,050 | |||||
BANKS – 26.17% | |||||
AMMB Holdings Bhd | 19,237,400 | 18,342,254 | |||
Bumiputra-Commerce | |||||
Holdings Bhd | 30,600,032 | 81,675,792 | |||
Hong Leong Bank Bhd | 6,497,400 | 11,407,082 | |||
Malayan Banking Bhd | 26,499,200 | 94,558,949 | |||
Public Bank Bhd | 14,141,400 | 37,139,846 | |||
RHB Capital Bhd | 8,790,600 | 10,991,387 | |||
254,115,310 | |||||
BEVERAGES – 0.34% | |||||
Guinness Anchor Bhd | 1,911,000 | 3,273,194 | |||
3,273,194 | |||||
BUILDING MATERIALS – 0.69% | |||||
Lafarge Malayan Cement Bhd | 16,052,400 | 6,690,409 | |||
6,690,409 | |||||
COMMERCIAL SERVICES – 1.79% | |||||
PLUS Expressways Bhd | 20,766,200 | 17,428,669 | |||
17,428,669 |
Security | Shares | Value | |||
DIVERSIFIED FINANCIAL SERVICES – 2.32% | |||||
Bursa Malaysia Bhd | 4,331,600 | $ | 13,230,979 | ||
Hong Leong Credit Bhd | 2,930,200 | 4,767,953 | |||
TA Enterprise Bhd | 9,300,200 | 4,486,822 | |||
22,485,754 | |||||
ELECTRIC – 7.45% | |||||
Malakoff Bhd | 7,516,600 | 21,672,184 | |||
Tenaga Nasional Bhd | 14,778,450 | 50,625,578 | |||
72,297,762 | |||||
ENGINEERING & CONSTRUCTION – 7.26% | |||||
Gamuda Bhd | 7,898,800 | 15,107,611 | |||
IJM Corp. Bhd | 4,862,200 | 12,075,690 | |||
Malaysian Resources Corp. Bhda | 10,701,600 | 5,285,118 | |||
MMC Corp. Bhd | 4,236,200 | 6,590,719 | |||
Road Builder (Malaysia) | |||||
Holdings Bhd | 4,585,500 | 5,550,248 | |||
Transmile Group Bhd | 1,979,800 | 7,912,418 | |||
YTL Corp. Bhd | 9,172,888 | 17,937,277 | |||
70,459,081 | |||||
ENTERTAINMENT – 6.53% | |||||
Berjaya Sports Toto Bhd | 9,300,200 | 12,053,357 | |||
Magnum Corp. Bhd | 11,083,800 | 9,492,264 | |||
Resorts World Bhd | 6,808,800 | 29,155,581 | |||
Tanjong PLC | 3,091,600 | 12,708,833 | |||
63,410,035 | |||||
FOOD – 1.08% | |||||
PPB Group Bhd | 6,497,466 | 10,479,784 | |||
10,479,784 | |||||
GAS – 1.40% | |||||
Petronas Gas Bhd | 5,505,200 | 13,594,057 | |||
13,594,057 | |||||
HOLDING COMPANIES - DIVERSIFIED – 5.80% | |||||
Mulpha International Bhda | 10,446,800 | 5,039,992 | |||
Multi-Purpose Holdings Bhda | 8,026,200 | 5,590,616 | |||
Sime Darby Bhd | 20,511,400 | 45,671,973 | |||
56,302,581 | |||||
INSURANCE – 0.18% | |||||
Kurnia Asia Bhd | 5,223,431 | 1,729,712 | |||
1,729,712 |
46 | 2007 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI MALAYSIA INDEX FUND
February 28, 2007
Security | Shares | Value | |||
LODGING – 5.10% | |||||
Genting Bhd | 4,881,800 | $ | 49,472,995 | ||
49,472,995 | |||||
MEDIA – 2.17% | |||||
Astro All Asia Networks PLC | 6,624,800 | 9,928,690 | |||
Media Prima Bhd | 8,281,000 | 5,673,537 | |||
Star Publications (Malaysia) Bhd | 6,115,360 | 5,516,568 | |||
21,118,795 | |||||
OIL & GAS – 1.20% | |||||
Petronas Dagangan Bhd | 3,439,800 | 5,597,162 | |||
Shell Refining Co. | 2,066,400 | 6,016,923 | |||
11,614,085 | |||||
OIL & GAS SERVICES – 0.29% | |||||
Scomi Group Bhd | 8,281,000 | 2,860,408 | |||
2,860,408 | |||||
REAL ESTATE – 2.81% | |||||
IGB Corp. Bhd | 9,172,800 | 5,760,822 | |||
IOI Properties Bhd | 1,146,650 | 3,404,271 | |||
KLCC Property Holdings Bhd | 5,860,400 | 5,286,573 | |||
SP Setia Bhd | 7,007,000 | 12,801,827 | |||
27,253,493 | |||||
SEMICONDUCTORS – 0.35% | |||||
Malaysian Pacific Industries Bhd | 1,163,500 | 3,421,082 | |||
3,421,082 | |||||
TELECOMMUNICATIONS – 7.67% | |||||
Maxis Communications Bhd | 12,177,600 | 40,673,114 | |||
Telekom Malaysia Bhd | 11,720,800 | 33,793,914 | |||
74,467,028 | |||||
TRANSPORTATION – 5.16% | |||||
Malaysia International | 15,449,400 | 41,016,106 | |||
Malaysian Bulk Carriers Bhd | 3,312,400 | 3,479,769 | |||
Pos Malaysia & Services | 4,331,600 | 5,638,623 | |||
50,134,498 | |||||
TOTAL COMMON STOCKS | 968,796,268 |
Security | Shares | Value | |||
SHORT-TERM INVESTMENTS – 0.18% | |||||
MONEY MARKET FUNDS – 0.18% | |||||
Barclays Global Investors Funds | 1,749,437 | $ | 1,749,437 | ||
1,749,437 | |||||
TOTAL SHORT-TERM INVESTMENTS | 1,749,437 | ||||
TOTAL INVESTMENTS | 970,545,705 | ||||
Other Assets, Less Liabilities – 0.03% | 249,600 | ||||
NET ASSETS – 100.00% | $ | 970,795,305 | |||
a | Non-income earning security. |
b | Affiliated issuer. See Note 2. |
c | The rate quoted is the annualized seven-day yield of the fund at period end. |
See notes to financial statements.
SCHEDULESOF INVESTMENTS | 47 |
Table of Contents
Schedule of Investments (Unaudited)
iSHARES® MSCI MEXICO INDEX FUND
February 28, 2007
Security | Shares | Value | |||
COMMON STOCKS – 99.92% | |||||
BEVERAGES – 8.35% | |||||
Coca-Cola FEMSA | |||||
SAB de CV ADR | 247,200 | $ | 8,528,400 | ||
Fomento Economico | |||||
Mexicano SABa | 4,476,236 | 49,574,654 | |||
Grupo Modelo SA de CV | |||||
Series Ca | 5,603,200 | 28,834,242 | |||
86,937,296 | |||||
BUILDING MATERIALS – 16.24% | |||||
Cemex SA de CV Series CPOa,b | 49,496,676 | 168,950,310 | |||
168,950,310 | |||||
DIVERSIFIED FINANCIAL SERVICES – 4.39% | |||||
Grupo Financiero Banorte | |||||
SAB de CV Series Oa | 11,680,200 | 45,634,611 | |||
45,634,611 | |||||
ENGINEERING& CONSTRUCTION – 3.97% | |||||
Carso Infraestructura y | |||||
Construccion SA de CVa,b | 5,586,600 | 4,949,962 | |||
Empresas ICA SAB de CVa,b | 2,637,774 | 9,421,972 | |||
Grupo Aeroportuario del | |||||
Pacifico SA de CV Class Ha | 3,626,100 | 15,047,568 | |||
Grupo Aeroportuario del | |||||
Sureste SA de CV ADR | 267,554 | 11,924,882 | |||
41,344,384 | |||||
FOOD – 1.71% | |||||
Grupo Bimbo SA de CV | 3,832,100 | 17,807,833 | |||
17,807,833 | |||||
FOREST PRODUCTS & PAPER – 2.22% | |||||
Kimberly-Clark de Mexico | |||||
SA de CV Class Aa | 5,505,200 | 23,092,050 | |||
23,092,050 | |||||
HOLDING COMPANIES - DIVERSIFIED – 4.53% | |||||
Alfa SAB de CV Class Aa | 2,722,200 | 17,235,072 | |||
Grupo Carso SA de CV | 8,858,030 | 29,886,526 | |||
47,121,598 | |||||
HOME BUILDERS – 4.23% | |||||
Corporacion Geo SAB de CV | |||||
Series Ba,b | 3,481,400 | 18,835,491 |
Security | Shares or Principal | Value | ||||
Desarrolladora Homex | ||||||
SAB de CVa,b | 1,297,830 | $ | 11,795,812 | |||
Urbi Desarrollos Urbanos | ||||||
SA de CVa,b | 3,419,600 | 13,375,715 | ||||
44,007,018 | ||||||
MEDIA – 6.05% | ||||||
Grupo Televisa SA Series CPOa | 8,858,000 | 48,488,067 | ||||
TV Azteca SA de CV Series CPOa | 18,030,900 | 14,441,520 | ||||
62,929,587 | ||||||
MINING – 4.05% | ||||||
Grupo Mexico SA de CVSeries Ba | 7,951,600 | 34,714,340 | ||||
Industrias Penoles SA de CV | ||||||
Series CP a | 762,200 | 7,412,364 | ||||
42,126,704 | ||||||
REAL ESTATE – 1.35% | ||||||
Consorcio Ara SA de CVa | 2,224,800 | 14,022,100 | ||||
14,022,100 | ||||||
RETAIL – 7.22% | ||||||
Controladora Comercial | ||||||
Mexicana SA de CVa | 4,490,800 | 11,450,293 | ||||
Organizacion Soriana SAB de | ||||||
CV Class Ba | 4,980,578 | 14,265,282 | ||||
Wal-Mart de Mexico SA de | ||||||
CV Series Va | 12,779,500 | 49,414,372 | ||||
75,129,947 | ||||||
TELECOMMUNICATIONS – 35.61% | ||||||
America Movil SAB de | ||||||
CV Series La | 114,877,040 | 251,531,523 | ||||
Carso Global Telecom | ||||||
Class A1a,b | 7,605,342 | 26,239,179 | ||||
Telefonos de Mexico SA de | ||||||
CV Series La | 63,839,400 | 92,825,072 | ||||
370,595,774 | ||||||
TOTAL COMMON STOCKS | 1,039,699,212 | |||||
SHORT-TERM INVESTMENTS – 6.22% | ||||||
CERTIFICATES OF DEPOSITc – 0.29% | ||||||
Credit Suisse First Boston NY | ||||||
5.28% - 5.43%, | ||||||
04/23/07 - 08/21/07 | $ | 690,707 | 690,707 |
48 | 2007 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI MEXICO INDEX FUND
February 28, 2007
Security | Principal | Value | |||
Deutsche Bank AG | |||||
5.35%, 08/08/07 $ | 1,151,177 | $ | 1,151,177 | ||
Washington Mutual Bank | |||||
5.33%, 03/19/07 | 1,151,177 | 1,151,177 | |||
2,993,061 | |||||
COMMERCIAL PAPERc – 1.38% | |||||
Amstel Funding Corp. | |||||
5.22%, 04/16/07 - 04/17/07d | 437,959 | 435,004 | |||
BNP Paribas Finance Inc. | |||||
5.12%, 06/06/07 | 161,165 | 158,944 | |||
Bryant Park Funding LLC | |||||
5.27%, 03/06/07d | 113,478 | 113,395 | |||
Cantabric Finance LLC | |||||
5.25%, 03/06/07d | 368,377 | 368,108 | |||
Cheyne Finance LLC | |||||
5.24%, 04/12/07 - 04/23/07d | 345,353 | 342,873 | |||
Concord Minutemen | |||||
Capital Co. LLC | |||||
5.29%, 03/19/07d | 234,688 | 234,067 | |||
Crown Point Capital Co. LLC | |||||
5.20%, 07/18/07d | 531,913 | 521,233 | |||
Edison Asset Securitization LLC | |||||
5.21%, 04/11/07d | 190,833 | 189,701 | |||
Five Finance Inc. | |||||
5.22%, 04/20/07d | 211,817 | 210,281 | |||
General Electric Capital Corp. | |||||
5.12% - 5.20%, | |||||
06/04/07 - 07/17/07d | 805,824 | 791,984 | |||
Giro Funding Corp. | |||||
5.25%, 03/05/07 - 03/12/07d | 755,172 | 754,262 | |||
Grampian Funding LLC | |||||
5.14% - 5.23%, | |||||
04/23/07 - 06/06/07d | 897,918 | 886,766 | |||
Harrier Finance Funding LLC | |||||
5.12%, 06/06/07d | 460,471 | 454,125 | |||
Irish Permanent Treasury PLC | |||||
5.18%, 07/10/07 | 230,235 | 225,896 | |||
KKR Pacific Funding Trust | |||||
5.29%, 03/13/07d | 575,589 | 574,574 | |||
Lexington Parker Capital Co. LLC | |||||
5.18% - 5.20%, | |||||
05/17/07 - 07/25/07d | 581,796 | 571,893 |
Security | Principal | Value | ||||
Liberty Street Funding Corp. | ||||||
5.27%, 03/06/07d | $ | 55,257 | $ | 55,216 | ||
Lockhart Funding LLC | ||||||
5.25%, | 1,038,804 | 1,028,936 | ||||
Nationwide Building Society | ||||||
5.21%, 04/13/07d | 437,447 | 434,725 | ||||
Nestle Capital Corp. | ||||||
5.19%, 08/09/07 | 276,283 | 269,870 | ||||
Sedna Finance Inc. | ||||||
5.22%, 04/17/07d | 262,468 | 260,680 | ||||
Simba Funding Corp. | ||||||
5.20%, 07/23/07d | 460,471 | 450,893 | ||||
Societe Generale | ||||||
5.18%, 05/16/07 | 1,151,177 | 1,138,589 | ||||
Thames Asset Global | ||||||
Securitization No. 1 Inc. | ||||||
5.25% - 5.28%, | ||||||
03/02/07 - 03/12/07d | 1,754,192 | 1,752,495 | ||||
Thornburg Mortgage | ||||||
Capital Resources LLC | ||||||
5.28%, 03/12/07d | 337,065 | 336,521 | ||||
Three Pillars Funding Corp. | ||||||
5.26%, 03/01/07 - 03/12/07d | 241,738 | 241,547 | ||||
Tulip Funding Corp. | ||||||
5.29%, 03/15/07d | 883,925 | 882,106 | ||||
Westpac Banking Corp. | ||||||
5.20%, 07/12/07d | 414,424 | 406,462 | ||||
Zela Finance Inc. | ||||||
5.20%, 07/16/07d | 276,283 | 270,815 | ||||
14,361,961 | ||||||
MEDIUM-TERM NOTESc – 0.13% | ||||||
Bank of America N.A. | ||||||
5.28%, 04/20/07 | 115,118 | 115,118 | ||||
Cullinan Finance Corp. | ||||||
5.71%, 06/28/07d | 345,353 | 345,353 | ||||
K2 USA LLC | ||||||
5.39%, 06/04/07d | 345,353 | 345,353 | ||||
Sigma Finance Inc. | ||||||
5.13% - 5.51%, | ||||||
03/30/07 - 06/18/07d | 538,751 | 538,751 | ||||
1,344,575 |
SCHEDULESOF INVESTMENTS | 49 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI MEXICO INDEX FUND
February 28, 2007
Security | Shares or Principal | Value | ||||
MONEY MARKET FUNDS – 0.11% | ||||||
Barclays Global Investors Funds | 1,138,909 | $ | 1,138,909 | |||
1,138,909 | ||||||
REPURCHASE AGREEMENTSc – 0.84% | ||||||
Banc of America Securities LLC | $ | 920,942 | 920,942 | |||
BearStearns Companies Inc. (The) | 690,706 | 690,706 | ||||
BNP Securities Corp. | 46,047 | 46,047 | ||||
Citigroup Global Markets Holdings Inc. | 690,706 | 690,706 | ||||
Citigroup Global Markets Holdings Inc. | 920,942 | 920,942 |
Security | Principal | Value | ||||
Citigroup Global Markets Holdings Inc. | $ | 506,518 | $ | 506,518 | ||
Citigroup Global Markets Holdings Inc. | 276,283 | 276,283 | ||||
Goldman Sachs Group Inc. (The) | 170,867 | 170,867 | ||||
Greenwich Capital Markets Inc. | 1,933,978 | 1,933,978 | ||||
HSBC Securities Inc. | 230,235 | 230,235 | ||||
JP Morgan Securities Inc. | 115,118 | 115,118 |
50 | 2007 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI MEXICO INDEX FUND
February 28, 2007
Security | Principal | Value | ||||
Merrill Lynch & Co. Inc. | $ | 460,471 | $ | 460,471 | ||
Morgan Stanley | 460,471 | 460,471 | ||||
Morgan Stanley | 322,330 | 322,330 | ||||
Wachovia Capital | 1,013,036 | 1,013,036 | ||||
8,758,650 | ||||||
TIME DEPOSITSc – 0.26% | ||||||
Bank of Nova Scotia | 193,103 | 193,103 | ||||
Chase Bank USA N.A. | 690,706 | 690,706 | ||||
Citibank N.A. | 690,706 | 690,706 | ||||
Deutsche Bank AG | 1,081,513 | 1,081,513 | ||||
2,656,028 |
Security | Principal | Value | ||||
VARIABLE& FLOATING RATE NOTESc– 3.21% | ||||||
Allstate Life Global Funding II | $ | 1,178,806 | $ | 1,178,923 | ||
American Express | 506,518 | 506,746 | ||||
American Express Credit Corp. | 138,141 | 138,209 | ||||
AmeriCredit Automobile | 20,986 | 20,986 | ||||
Arkle Master Issuer PLC | 345,353 | 345,353 | ||||
ASIF Global Financing | 46,047 | 46,051 | ||||
Australia & New Zealand | 299,306 | 299,306 | ||||
Bank of Ireland | 667,683 | 667,702 | ||||
Beta Finance Inc. | 1,174,201 | 1,174,221 | ||||
BMW US Capital LLC | 460,471 | 460,471 | ||||
BNP Paribas | 851,871 | 851,871 | ||||
Brigantine High Grade | 442,052 | 442,011 | ||||
Carlyle Loan Investment Ltd. | 336,144 | 336,144 | ||||
CC USA Inc. | 230,235 | 230,248 | ||||
Commodore CDO Ltd. | 115,118 | 115,118 | ||||
Credit Agricole SA | 460,471 | 460,471 |
SCHEDULESOF INVESTMENTS | 51 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI MEXICO INDEX FUND
February 28, 2007
Security | Principal | Value | ||||
Credit Suisse First Boston NY | ||||||
5.36%, 04/24/07 | $ | 230,235 | $ | 230,237 | ||
Cullinan Finance Corp. | ||||||
5.36%, 04/25/07d | 115,118 | 115,118 | ||||
DaimlerChrysler Auto Trust | ||||||
Series 2006-C Class A1 | ||||||
5.33%, 10/08/07d | 35,322 | 35,322 | ||||
DEPFA Bank PLC | ||||||
5.40%, 12/14/07d | 460,471 | 460,471 | ||||
Dorada Finance Inc. | ||||||
5.33% - 5.41%, | 529,542 | 529,551 | ||||
Eli Lilly Services Inc. | ||||||
5.31%, 03/01/07d | 307,364 | 307,364 | ||||
Fifth Third Bancorp | ||||||
5.32%, 02/22/08d | 920,942 | 920,942 | ||||
Five Finance Inc. | ||||||
5.31% - 5.37%, | 299,306 | 299,291 | ||||
General Electric Capital Corp. | ||||||
5.28% - 5.45%, | 483,495 | 483,542 | ||||
Granite Master Issuer PLC | ||||||
5.29%, 08/20/07d | 1,611,648 | 1,611,648 | ||||
Harrier Finance Funding LLC | ||||||
5.29% - 5.36%, | 598,612 | 598,615 | ||||
Hartford Life Global Funding Trust | ||||||
5.36% - 5.40%, | 690,706 | 690,751 | ||||
HBOS Treasury Services PLC | ||||||
5.46%, 01/24/08d | 460,471 | 460,471 | ||||
Holmes Financing PLC | ||||||
5.29%, 07/16/07d | 805,824 | 805,824 | ||||
JP Morgan Securities Inc. | ||||||
5.40%, 11/16/07 | 920,942 | 920,942 | ||||
JPMorgan Chase & Co. | ||||||
5.29% - 5.45%, | 1,266,295 | 1,266,295 | ||||
K2 USA LLC | ||||||
5.20% - 5.33%, | 345,353 | 345,347 |
Security | Principal | Value | ||||
Kestrel Funding LLC | ||||||
5.30%, 07/11/07d | $ | 184,188 | $ | 184,181 | ||
Kommunalkredit Austria AG | ||||||
5.32%, 02/08/08d | 276,283 | 276,283 | ||||
Leafs LLC | ||||||
5.32%, 01/22/08d | 446,137 | 446,136 | ||||
Links Finance LLC | ||||||
5.28% - 5.35%, | 506,518 | 506,508 | ||||
Lothian Mortgages Master Issuer PLC | ||||||
5.29%, 04/24/07d | 162,340 | 162,340 | ||||
Marshall & Ilsley Bank | ||||||
5.32%, 02/15/08 | 253,259 | 253,259 | ||||
Master Funding LLC | ||||||
5.35%, | 833,328 | 833,328 | ||||
Merrill Lynch & Co. Inc. | ||||||
5.46%, 05/30/07g | 506,518 | 506,518 | ||||
Metropolitan Life Global Funding I | ||||||
5.33%, 03/06/08d | 690,706 | 690,706 | ||||
Metropolitan Life Insurance Funding Agreement | ||||||
5.44%, 08/01/07d,g | 46,047 | 46,047 | ||||
Mound Financing PLC | ||||||
5.29%, 05/08/07d | 432,843 | 432,843 | ||||
Natexis Banques Populaires | ||||||
5.33% - 5.35%, | 736,754 | 736,745 | ||||
National City Bank of Indiana | ||||||
5.34%, 05/21/07 | 230,235 | 230,240 | ||||
Nationwide Building Society | ||||||
5.37% - 5.48%, | 1,519,554 | 1,519,725 | ||||
Newcastle Ltd. | ||||||
5.34%, | 461,622 | 461,561 | ||||
Northern Rock PLC | ||||||
5.38%, 02/01/08d | 552,565 | 552,576 | ||||
Northlake CDO I | ||||||
5.42%, 09/06/07d | 138,141 | 138,141 | ||||
Pricoa Global Funding I | ||||||
5.31%, 02/27/08d | 621,636 | 621,636 |
52 | 2007 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI MEXICO INDEX FUND
February 28, 2007
Security | Principal | Value | |||||
Sedna Finance Inc. | |||||||
5.32% - 5.34%, | $ | 667,683 | $ | 667,678 | |||
Skandinaviska Enskilda Banken | |||||||
5.32%, 02/15/08d | 460,471 | 460,471 | |||||
Strips III LLC | |||||||
5.37%, 07/24/07d | 93,698 | 93,698 | |||||
SunTrust Bank | |||||||
5.29%, 05/01/07 | 460,471 | 460,475 | |||||
Tango Finance Corp. | |||||||
5.27% - 5.34%, | 1,123,549 | 1,123,512 | |||||
Union Hamilton Special Funding LLC | |||||||
5.36% - 5.37%, | 759,777 | 759,777 | |||||
Wachovia Asset Securitization Inc. | |||||||
5.31%, 03/25/07d | 519,788 | 519,788 | |||||
Wachovia Bank N.A. | |||||||
5.36%, 05/22/07 | 920,942 | 920,942 | |||||
Wal-Mart Stores Inc. | |||||||
5.50%, 07/16/07d | 345,353 | 345,441 | |||||
Wells Fargo & Co. | |||||||
5.33%, 11/15/07d | 230,235 | 230,245 | |||||
WhistleJacket Capital Ltd. | |||||||
5.28% - 5.35%, | 345,353 | 345,355 | |||||
White Pine Finance LLC | |||||||
5.28% - 5.32%, | 1,381,413 | 1,381,289 | |||||
Wind Master Trust | |||||||
5.31%, 07/25/07d | 184,188 | 184,188 | |||||
33,447,194 | |||||||
TOTAL SHORT-TERM | 64,700,378 | ||||||
TOTAL INVESTMENTS | 1,104,399,590 | ||||||
Other Assets, Less Liabilities – (6.14)% | (63,838,564 | ) | |||||
NET ASSETS – 100.00% | $ | 1,040,561,026 | |||||
ADR – American Depositary Receipts
a | All or a portion of this security represents a security on loan. See Note 5. |
b | Non-income earning security. |
c | All or a portion of this security (these securities) represent(s) an investment of securities lending collateral. See Note 5. |
d | This security or a portion of these securities may be resold to qualified institutional buyers under Rule 144A or pursuant to Section 4(2) of the Securities Act of 1933. |
e | Affiliated issuer. See Note 2. |
f | The rate quoted is the annualized seven-day yield of the fund at period end. |
g | 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 financial statements.
SCHEDULESOF INVESTMENTS | 53 |
Table of Contents
Schedule of Investments (Unaudited)
iSHARES® MSCI PACIFIC EX-JAPAN INDEX FUND
February 28, 2007
Security | Shares | Value | |||
COMMON STOCKS – 99.47% | |||||
AUSTRALIA – 66.02% | |||||
A.B.C. Learning Centres Ltd.a | 958,205 | $ | 5,164,321 | ||
AGL Energy Ltd.b | 1,111,040 | 14,033,367 | |||
Alinta Ltd. | 1,269,258 | 14,251,594 | |||
Alumina Ltd. | 3,006,152 | 15,965,021 | |||
Amcor Ltd. | 2,225,216 | 12,781,987 | |||
AMP Ltd. | 4,829,961 | 39,237,466 | |||
Ansell Ltd. | 399,302 | 3,665,440 | |||
APN News & Media Ltd. | 719,823 | 3,374,748 | |||
Aristocrat Leisure Ltd. | 908,792 | 12,030,189 | |||
ASX Ltd. | 439,945 | 14,507,498 | |||
Australia & New Zealand Banking Group Ltd. | 4,701,269 | 108,537,892 | |||
AXA Asia Pacific Holdings Ltd. | 2,249,077 | 13,202,594 | |||
Babcock & Brown Ltd. | 588,357 | 11,868,055 | |||
BHP Billiton Ltd. | 8,967,168 | 191,691,899 | |||
Billabong International Ltd. | 439,821 | 5,943,452 | |||
BlueScope Steel Ltd. | 1,845,040 | 13,563,947 | |||
Boral Ltd. | 1,563,105 | 10,345,848 | |||
Brambles Ltd.b | 3,982,272 | 41,607,642 | |||
Caltex Australia Ltd. | 360,358 | 6,340,471 | |||
Centro Properties Group | 2,085,810 | 16,155,743 | |||
CFS Retail Property Trust | 3,641,982 | 6,887,279 | |||
Challenger Financial Services Group Ltd. | 921,312 | 3,339,360 | |||
Coca-Cola Amatil Ltd. | 1,374,756 | 8,958,387 | |||
Cochlear Ltd. | 140,691 | 6,290,053 | |||
Coles Group Ltd. | 2,890,028 | 34,977,754 | |||
Commonwealth Bank of Australia | 3,288,824 | 129,467,786 | |||
Commonwealth Property | |||||
Office Fund | 3,732,960 | 4,059,113 | |||
Computershare Ltd. | 1,180,609 | 9,330,516 | |||
CSL Ltd. | 470,728 | 28,801,172 | |||
CSR Ltd. | 2,251,872 | 6,440,936 | |||
DB RREEF Trust | 6,923,922 | 9,520,204 | |||
Downer EDI Ltd. | 794,798 | 4,596,756 | |||
Foster’s Group Ltd. | 5,120,295 | 25,498,270 | |||
Futuris Corp. Ltd. | 1,588,246 | 2,628,063 | |||
Goodman Fielder Ltd. | 2,732,681 | 4,866,268 | |||
GPT Group | 4,881,597 | 19,424,595 |
Security | Shares | Value | |||
Harvey Norman Holdings Ltd. | 1,458,364 | $ | 4,998,663 | ||
Iluka Resources Ltd. | 631,597 | 2,936,235 | |||
ING Industrial Fund | 2,161,774 | 4,054,020 | |||
Insurance Australia Group Ltd. | 4,446,762 | 20,952,880 | |||
Investa Property Group | 3,998,193 | 7,466,392 | |||
James Hardie Industries NV | 1,215,761 | 9,119,769 | |||
John Fairfax Holdings Ltd. | 2,593,514 | 9,829,521 | |||
Leighton Holdings Ltd. | 365,006 | 8,944,561 | |||
Lend Lease Corp. Ltd. | 939,921 | 13,368,024 | |||
Lion Nathan Ltd. | 759,004 | 4,957,894 | |||
Macquarie Airports | 1,769,222 | 5,158,016 | |||
Macquarie Bank Ltd. | 644,492 | 40,113,292 | |||
Macquarie Communications Infrastructure Group | 847,813 | 3,968,124 | |||
Macquarie Goodman Group | 3,524,782 | 19,885,840 | |||
Macquarie Infrastructure Group | 6,828,192 | 20,660,252 | |||
Macquarie Office Trust | 5,175,553 | 6,524,923 | |||
Mirvac Group | 2,571,116 | 11,466,655 | |||
Multiplex Group | 1,627,427 | 5,655,080 | |||
National Australia Bank Ltd. | 4,176,928 | 132,833,253 | |||
Newcrest Mining Ltd. | 863,676 | 15,346,030 | |||
OneSteel Ltd. | 1,509,488 | 5,970,793 | |||
Orica Ltd. | 799,794 | 15,597,393 | |||
Origin Energy Ltd. | 2,139,499 | 14,936,349 | |||
Pacific Brands Ltd. | 1,351,001 | 3,119,047 | |||
Paladin Resources Ltd.a,b | 1,097,934 | 7,872,566 | |||
PaperlinX Ltd. | 1,195,225 | 3,804,781 | |||
Perpetual Ltd. | 106,943 | 6,286,224 | |||
Publishing & Broadcasting Ltd. | 344,252 | 5,216,202 | |||
Qantas Airways Ltd. | 2,531,893 | 10,274,276 | |||
QBE Insurance Group Ltd. | 2,063,488 | 52,029,612 | |||
Rinker Group Ltd. | 2,299,808 | 33,850,658 | |||
Rio Tinto Ltd.a | 732,704 | 43,646,459 | |||
Santos Ltd. | 1,556,128 | 11,476,774 | |||
Sonic Healthcare Ltd. | 697,449 | 7,726,742 | |||
Stockland | 3,690,970 | 25,098,627 | |||
Suncorp-Metway Ltd.a | 1,437,925 | 24,665,693 | |||
Sydney Roads Group | 2,410,513 | 2,488,166 | |||
Symbion Health Ltd. | 1,666,158 | 4,975,699 | |||
Tabcorp Holdings Ltd. | 1,347,136 | 17,142,834 | |||
Tattersall’s Ltd. | 2,758,112 | 9,996,970 |
54 | 2007 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI PACIFIC EX-JAPAN INDEX FUND
February 28, 2007
Security | Shares | Value | |||
Telstra Corp. Ltd. | 7,295,144 | $ | 24,487,369 | ||
Telstra Corp. Ltd. | |||||
Installment Receipt | 3,816,960 | 8,511,433 | |||
Toll Holdings Ltd. | 1,384,938 | 21,137,743 | |||
Transurban Groupa | 2,151,569 | 12,799,732 | |||
Wesfarmers Ltd. | 973,383 | 27,956,317 | |||
Westfield Group | 3,862,656 | 66,197,860 | |||
Westpac Banking Corp. | 4,688,568 | 94,058,333 | |||
Woodside Petroleum Ltd.a | 1,197,504 | 35,157,540 | |||
Woolworths Ltd. | 3,086,272 | 66,145,722 | |||
WorleyParsons Ltd. | 375,746 | 8,112,292 | |||
Zinifex Ltd. | 1,266,381 | 16,683,967 | |||
1,895,019,283 | |||||
HONG KONG – 20.37% | |||||
ASM Pacific Technology Ltd.a | 450,000 | 2,626,627 | |||
Bank of East Asia Ltd. | 3,763,200 | 21,532,077 | |||
BOC Hong Kong Holdings Ltd. | 9,520,000 | 23,031,374 | |||
Cathay Pacific Airways Ltd.a | 2,464,000 | 6,143,993 | |||
Cheung Kong (Holdings) Ltd. | 3,888,000 | 47,652,548 | |||
Cheung Kong Infrastructure Holdings Ltd.a | 1,125,000 | 3,945,701 | |||
CLP Holdings Ltd. | 4,647,000 | 34,054,088 | |||
Esprit Holdings Ltd. | 2,689,500 | 28,023,156 | |||
Foxconn International Holdings Ltd.a,b | 5,376,000 | 14,210,207 | |||
Giordano International Ltd. | 4,032,000 | 1,873,477 | |||
Hang Lung Properties Ltd. | 5,850,736 | 15,465,062 | |||
Hang Seng Bank Ltd. | 1,948,800 | 26,541,776 | |||
Henderson Land Development Co. Ltd. | 2,250,000 | 12,758,727 | |||
Hong Kong & China Gas Co. Ltd. (The)a | 9,183,836 | 20,055,072 | |||
Hong Kong Exchanges & Clearing Ltd. | 2,688,000 | 27,680,657 | |||
Hongkong Electric Holdings Ltd. | 3,584,000 | 18,144,106 | |||
Hopewell Holdings Ltd. | 1,568,000 | 6,031,310 | |||
Hutchinson Telecommunications International Ltd.b | 3,584,000 | 7,477,849 | |||
Hutchison Whampoa Ltd.a | 5,491,000 | 52,258,087 | |||
Hysan Development Co. Ltd. | 1,568,000 | 4,315,246 | |||
Johnson Electric Holdings Ltd. | 3,808,000 | 2,778,388 |
Security | Shares | Value | |||
Kerry Properties Ltd.a | 1,232,000 | $ | 6,118,761 | ||
Kingboard Chemical Holdings Co. Ltd. | 1,462,500 | 6,140,317 | |||
Li & Fung Ltd. | 5,823,600 | 18,486,909 | |||
Link REIT (The) | 5,488,000 | 12,827,321 | |||
Melco International Development Ltd. | 1,800,000 | 3,479,129 | |||
MTR Corp. Ltd.a | 3,648,000 | 9,642,640 | |||
New World Development Co. Ltd. | 6,719,941 | 14,812,204 | |||
Noble Group Ltd. | 2,464,000 | 2,255,009 | |||
Orient Overseas International Ltd. | 450,000 | 3,674,974 | |||
PCCW Ltd.a | 10,125,845 | 5,975,212 | |||
Shangri-La Asia Ltd. | 3,136,000 | 8,128,720 | |||
Shui On Land Ltd.b | 4,704,000 | 4,275,105 | |||
Shun Tak Holdings Ltd. | 2,700,000 | 4,002,151 | |||
Sino Land Co. Ltd. | 3,492,000 | 8,027,894 | |||
Solomon Systech International Ltd. | 6,272,000 | 1,236,368 | |||
Sun Hung Kai Properties Ltd. | 3,522,000 | 41,679,006 | |||
Swire Pacific Ltd. Class A | 2,427,000 | 27,462,693 | |||
Techtronic Industries Co. Ltd. | 2,250,000 | 3,081,679 | |||
Television Broadcasts Ltd. | 675,000 | 4,393,553 | |||
Wharf Holdings Ltd. (The) | 3,136,000 | 11,119,286 | |||
Wing Hang Bank Ltd. | 450,000 | 5,091,970 | |||
Yue Yuen Industrial Holdings Ltd. | 1,800,000 | 6,220,959 | |||
584,731,388 | |||||
NEW ZEALAND – 1.75% | |||||
Auckland International Airport Ltd. | 2,671,158 | 4,191,068 | |||
Contact Energy Ltd. | 686,823 | 4,262,415 | |||
Fisher & Paykel Appliances Holdings Ltd. | 675,941 | 1,728,139 | |||
Fisher & Paykel Healthcare Corp. Ltd. | 1,361,126 | 3,718,263 | |||
Fletcher Building Ltd. | 1,209,626 | 8,998,141 | |||
Kiwi Income Property Trust | 1,596,346 | 1,744,330 | |||
Sky City Entertainment Group Ltd. | 1,164,625 | 3,956,444 | |||
Sky Network Television Ltd. | 533,465 | 2,111,210 |
SCHEDULESOF INVESTMENTS | 55 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI PACIFIC EX-JAPAN INDEX FUND
February 28, 2007
Security | Shares | Value | |||
Telecom Corp. of New Zealand Ltd. | 4,918,714 | $ | 16,606,410 | ||
Tower Ltd.b | 390,051 | 674,832 | |||
Vector Ltd. | 459,846 | 869,668 | |||
Warehouse Group Ltd. (The) | 270,060 | 1,318,470 | |||
50,179,390 | |||||
SINGAPORE – 11.33% | |||||
Allgreen Properties Ltd.a | 1,568,000 | 1,619,506 | |||
Ascendas Real Estate Investment Trusta | 2,475,000 | 3,915,346 | |||
CapitaCommercial Trust | 2,464,000 | 4,542,232 | |||
CapitaLand Ltd. | 3,300,000 | 15,100,507 | |||
CapitaMall Trust Management Ltd.a | 2,250,000 | 5,147,900 | |||
Chartered Semiconductor Manufacturing Ltd.a,b | 2,475,000 | 2,362,151 | |||
City Developments Ltd. | 1,302,000 | 11,490,113 | |||
ComfortDelGro Corp. Ltd. | 4,725,000 | 5,745,056 | |||
COSCO Corp. (Singapore) Ltd. | 2,025,000 | 3,587,351 | |||
Creative Technology Ltd. | 146,250 | 946,478 | |||
DBS Group Holdings Ltd. | 2,878,000 | 40,072,822 | |||
Fraser and Neave Ltd. | 2,016,150 | 6,431,647 | |||
Haw Par Corp. Ltd. | 225,397 | 1,068,232 | |||
Jardine Cycle & Carriage Ltd. | 358,000 | 3,042,327 | |||
Keppel Corp. Ltd. | 1,433,000 | 16,674,228 | |||
Keppel Land Ltd.a | 900,000 | 5,000,817 | |||
Neptune Orient Lines Ltd.a | 1,125,000 | 2,117,993 | |||
Olam International Ltd. | 1,800,000 | 2,906,357 | |||
Oversea-Chinese Banking Corp. | 6,495,600 | 36,092,564 | |||
Parkway Holdings Ltd. | 1,568,251 | 3,034,498 | |||
SembCorp Industries Ltd. | 2,016,240 | 5,799,285 | |||
SembCorp Marine Ltd.a | 1,350,000 | 3,071,090 | |||
Singapore Airlines Ltd. | 1,350,000 | 13,943,455 | |||
Singapore Exchange Ltd. | 2,025,000 | 9,001,471 | |||
Singapore Land Ltd. | 224,000 | 1,332,505 | |||
Singapore Petroleum Co. Ltd.a | 192,000 | 562,288 | |||
Singapore Post Ltd. | 3,360,000 | 2,460,010 | |||
Singapore Press Holdings Ltd. | 3,807,517 | 10,951,512 | |||
Singapore Technologies Engineering Ltd.a | 3,360,000 | 7,116,457 |
Security | Shares or Principal | Value | ||||
Singapore Telecommunications Ltd.a | 18,225,328 | $ | 38,124,562 | |||
SMRT Corp. Ltd. | 1,800,000 | 1,706,161 | ||||
STATS ChipPAC Ltd.a,b | 3,375,000 | 3,265,240 | ||||
Suntec REIT a | 2,250,000 | 2,779,866 | ||||
United Overseas Bank Ltd. | 2,959,000 | 39,459,781 | ||||
United Overseas Land Ltd. | 1,350,000 | 4,394,836 | ||||
Venture Corp. Ltd. | 675,000 | 6,133,355 | ||||
Want Want Holdings Ltd. | 1,125,000 | 1,732,500 | ||||
Wing Tai Holdings Ltd. | 1,350,333 | 2,453,947 | ||||
325,186,446 | ||||||
TOTAL COMMON STOCKS | 2,855,116,507 | |||||
SHORT-TERM INVESTMENTS – 6.36% | ||||||
CERTIFICATES OF DEPOSITc– 0.30% | ||||||
Credit Suisse First Boston NY | ||||||
5.28% - 5.43%, | $ | 1,950,475 | 1,950,475 | |||
Deutsche Bank AG | ||||||
5.35%, 08/08/07 | 3,250,791 | 3,250,791 | ||||
Washington Mutual Bank | ||||||
5.33%, 03/19/07 | 3,250,791 | 3,250,791 | ||||
8,452,057 | ||||||
COMMERCIAL PAPERc – 1.41% | ||||||
Amstel Funding Corp. | ||||||
5.22%, | 1,236,744 | 1,228,379 | ||||
BNP Paribas Finance Inc. | ||||||
5.12%, 06/06/07 | 455,111 | 448,838 | ||||
Bryant Park Funding LLC | ||||||
5.27%, 03/06/07d | 320,450 | 320,215 | ||||
Cantabric Finance LLC | ||||||
5.25%, 03/06/07d | 1,040,253 | 1,039,495 | ||||
Cheyne Finance LLC | ||||||
5.24%, | 975,237 | 968,235 | ||||
Concord Minutemen Capital Co. LLC | ||||||
5.29%, 03/19/07d | 662,732 | 660,979 | ||||
Crown Point Capital Co. LLC | ||||||
5.20%, 07/18/07d | 1,502,060 | 1,471,902 |
56 | 2007 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI PACIFIC EX-JAPAN INDEX FUND
February 28, 2007
Security | Principal | Value | ||||
Edison Asset Securitization LLC | ||||||
5.21%, 04/11/07d | $ | 538,890 | $ | 535,693 | ||
Five Finance Inc. | ||||||
5.22%, 04/20/07d | 598,146 | 593,809 | ||||
General Electric Capital Corp. | ||||||
5.12% - 5.20%, | 2,275,554 | 2,236,471 | ||||
Giro Funding Corp. | ||||||
5.25%, | 2,132,519 | 2,129,947 | ||||
Grampian Funding LLC | ||||||
5.14% - 5.23%, | 2,535,617 | 2,504,125 | ||||
Harrier Finance Funding LLC | ||||||
5.12%, 06/06/07d | 1,300,316 | 1,282,395 | ||||
Irish Permanent Treasury PLC | ||||||
5.18%, 07/10/07 | 650,158 | 637,903 | ||||
KKR Pacific Funding Trust | ||||||
5.29%, 03/13/07d | 1,625,395 | 1,622,529 | ||||
Lexington Parker Capital Co. LLC | ||||||
5.18% - 5.20%, | 1,642,924 | 1,614,960 | ||||
Liberty Street Funding Corp. | ||||||
5.27%, 03/06/07d | 156,038 | 155,924 | ||||
Lockhart Funding LLC | ||||||
5.25%, | 2,933,462 | 2,905,597 | ||||
Nationwide Building Society | ||||||
5.21%, 04/13/07d | 1,235,301 | �� | 1,227,613 | |||
Nestle Capital Corp. | ||||||
5.19%, 08/09/07 | 780,190 | 762,081 | ||||
Sedna Finance Inc. | ||||||
5.22%, 04/17/07d | 741,180 | 736,129 | ||||
Simba Funding Corp. | ||||||
5.20%, 07/23/07d | 1,300,316 | 1,273,270 | ||||
Societe Generale | ||||||
5.18%, 05/16/07 | 3,250,791 | 3,215,242 | ||||
Thames Asset Global Securitization No. 1 Inc. | ||||||
5.25% - 5.28%, | 4,953,633 | 4,948,843 |
Security | Shares or Principal | Value | ||||
Thornburg Mortgage Capital Resources LLC | ||||||
5.28%, 03/12/07d | $ | 951,832 | $ | 950,296 | ||
Three Pillars Funding Corp. | ||||||
5.26%, | 682,640 | 682,103 | ||||
Tulip Funding Corp. | ||||||
5.29%, 03/15/07d | 2,496,100 | 2,490,965 | ||||
Westpac Banking Corp. | ||||||
5.20%, 07/12/07d | 1,170,285 | 1,147,802 | ||||
Zela Finance Inc. | ||||||
5.20%, 07/16/07d | 780,190 | 764,751 | ||||
40,556,491 | ||||||
MEDIUM-TERM NOTESc – 0.13% | ||||||
Bank of America N.A. | ||||||
5.28%, 04/20/07 | 325,079 | 325,079 | ||||
Cullinan Finance Corp. | ||||||
5.71%, 06/28/07d | 975,237 | 975,237 | ||||
K2 USA LLC | ||||||
5.39%, 06/04/07d | 975,237 | 975,237 | ||||
Sigma Finance Inc. | ||||||
5.13% - 5.51%, | 1,521,370 | 1,521,370 | ||||
3,796,923 | ||||||
MONEY MARKET FUNDS – 0.11% | ||||||
Barclays Global Investors Funds Institutional Money Market Fund, Institutional Shares | 3,176,265 | 3,176,265 | ||||
3,176,265 | ||||||
REPURCHASE AGREEMENTSc– 0.86% | ||||||
Banc of America Securities LLC | $ | 2,600,633 | 2,600,633 |
SCHEDULESOF INVESTMENTS | 57 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI PACIFIC EX-JAPAN INDEX FUND
February 28, 2007
Security | Principal | Value | ||||
Bear Stearns Companies Inc. (The) | $ | 1,950,475 | $ | 1,950,475 | ||
BNP Securities Corp. | 130,032 | 130,032 | ||||
Citigroup Global Markets Holdings Inc. | 1,950,475 | 1,950,475 | ||||
Citigroup Global Markets Holdings Inc. | 2,600,633 | 2,600,633 | ||||
Citigroup Global Markets Holdings Inc. | 1,430,348 | 1,430,348 |
Security | Principal | Value | ||||
Citigroup Global Markets Holdings Inc. | $ | 780,190 | $ | 780,190 | ||
Goldman Sachs Group Inc. (The) | 482,508 | 482,508 | ||||
Greenwich Capital Markets Inc. | 5,461,329 | 5,461,329 | ||||
HSBC Securities Inc. | 650,158 | 650,158 | ||||
JP Morgan Securities Inc. | 325,079 | 325,079 |
58 | 2007 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI PACIFIC EX-JAPAN INDEX FUND
February 28, 2007
Security | Principal | Value | ||||
Merrill Lynch & Co. Inc. | $ | 1,300,316 | $ | 1,300,316 | ||
Morgan Stanley | 1,300,316 | 1,300,316 | ||||
Morgan Stanley | 910,221 | 910,221 | ||||
Wachovia Capital | 2,860,696 | 2,860,696 | ||||
24,733,409 | ||||||
TIME DEPOSITSc – 0.26% | ||||||
Bank of Nova Scotia | ||||||
5.30%, 03/02/07 | 545,301 | 545,301 | ||||
Chase Bank USA N.A. | ||||||
5.38%, 03/01/07 | 1,950,475 | 1,950,475 | ||||
Citibank N.A. | ||||||
5.47%, 03/01/07 | 1,950,475 | 1,950,475 | ||||
Deutsche Bank AG | ||||||
5.38%, 03/01/07 | 3,054,066 | 3,054,066 | ||||
7,500,317 |
Security | Principal | Value | ||||
VARIABLE & FLOATING RATE NOTESc– 3.29% | ||||||
Allstate Life Global Funding II | ||||||
5.30% - 5.40%, | $ | 3,328,810 | $ | 3,329,141 | ||
American Express Centurion Bank | 1,430,348 | 1,430,992 | ||||
American Express Credit Corp. | 390,095 | 390,285 | ||||
AmeriCredit Automobile | 59,262 | 59,262 | ||||
Arkle Master Issuer PLC | ||||||
Series 2006-1A Class 1A | ||||||
5.30%, 11/19/07d | 975,237 | 975,237 | ||||
ASIF Global Financing | ||||||
5.40%, 05/03/07d | 130,032 | 130,044 | ||||
Australia & New Zealand | ||||||
Banking Group Ltd. | ||||||
5.32%, 02/22/08d | 845,206 | 845,206 | ||||
Bank of Ireland | ||||||
5.30% - 5.32%, | 1,885,459 | 1,885,512 | ||||
Beta Finance Inc. | ||||||
5.29% - 5.41%, | 3,315,807 | 3,315,867 | ||||
BMW US Capital LLC | ||||||
5.32%, 01/15/08d | 1,300,316 | 1,300,316 | ||||
BNP Paribas | ||||||
5.33%, 11/19/07d | 2,405,585 | 2,405,585 | ||||
Brigantine High Grade | ||||||
Funding Ltd. | ||||||
5.40%, 09/05/07d | 1,248,304 | 1,248,187 | ||||
Carlyle Loan Investment Ltd. | ||||||
5.37%, 04/13/07 - 07/15/07d | 949,231 | 949,231 | ||||
CC USA Inc. | ||||||
5.36%, 07/30/07d | 650,158 | 650,194 | ||||
Commodore CDO Ltd. | ||||||
5.44%, 12/12/07d | 325,079 | 325,079 | ||||
Credit Agricole SA | ||||||
5.33%, 11/23/07 | 1,300,316 | 1,300,316 |
SCHEDULESOF INVESTMENTS | 59 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI PACIFIC EX-JAPAN INDEX FUND
February 28, 2007
Security | Principal | Value | ||||
Credit Suisse First Boston NY | ||||||
5.36%, 04/24/07 | $ | 650,158 | $ | 650,162 | ||
Cullinan Finance Corp. | ||||||
5.36%, 04/25/07d | 325,079 | 325,079 | ||||
DaimlerChrysler Auto Trust | ||||||
Series 2006-C Class A1 | ||||||
5.33%, 10/08/07d | 99,745 | 99,745 | ||||
DEPFA Bank PLC | ||||||
5.40%, 12/14/07d | 1,300,316 | 1,300,316 | ||||
Dorada Finance Inc. | ||||||
5.33% - 5.41%, | 1,495,364 | 1,495,389 | ||||
Eli Lilly Services Inc. | ||||||
5.31%, 03/01/07d | 867,961 | 867,961 | ||||
Fifth Third Bancorp | ||||||
5.32%, 02/22/08d | 2,600,633 | 2,600,633 | ||||
Five Finance Inc. | ||||||
5.31% - 5.37%, | 845,206 | 845,163 | ||||
General Electric Capital Corp. | ||||||
5.28% - 5.45%, | 1,365,332 | 1,365,467 | ||||
Granite Master Issuer PLC | ||||||
5.29%, 08/20/07d | 4,551,107 | 4,551,107 | ||||
Harrier Finance Funding LLC | ||||||
5.29% - 5.36%, | 1,690,411 | 1,690,420 | ||||
Hartford Life Global Funding Trust | ||||||
5.36% - 5.40%, | 1,950,475 | 1,950,599 | ||||
HBOS Treasury Services PLC | ||||||
5.46%, 01/24/08d | 1,300,316 | 1,300,316 | ||||
Holmes Financing PLC | ||||||
5.29%, 07/16/07d | 2,275,554 | 2,275,554 | ||||
JP Morgan Securities Inc. | ||||||
5.40%, 11/16/07 | 2,600,633 | 2,600,633 | ||||
JPMorgan Chase & Co. | ||||||
5.29% - 5.45%, | 3,575,870 | 3,575,870 |
Security | Principal | Value | ||||
K2 USA LLC | ||||||
5.20% - 5.33%, | $ | 975,237 | $ | 975,221 | ||
Kestrel Funding LLC | ||||||
5.30%, 07/11/07d | 520,127 | 520,106 | ||||
Kommunalkredit Austria AG | ||||||
5.32%, 02/08/08d | 780,190 | 780,190 | ||||
Leafs LLC | ||||||
5.32%, 01/22/08d | 1,259,838 | 1,259,838 | ||||
Links Finance LLC | ||||||
5.28% - 5.35%, | 1,430,348 | 1,430,319 | ||||
Lothian Mortgages Master | ||||||
Issuer PLC | ||||||
5.29%, 04/24/07d | 458,429 | 458,429 | ||||
Marshall & Ilsley Bank | ||||||
5.32%, 02/15/08 | 715,174 | 715,174 | ||||
Master Funding LLC | ||||||
5.35%, 04/25/07 - 05/25/07d | 2,353,222 | 2,353,222 | ||||
Merrill Lynch & Co. Inc. | ||||||
5.46%, 05/30/07g | 1,430,348 | 1,430,348 | ||||
Metropolitan Life Global Funding I | ||||||
5.33%, 03/06/08d | 1,950,475 | 1,950,475 | ||||
Metropolitan Life Insurance | ||||||
Funding Agreement | ||||||
5.44%, 08/01/07d,g | 130,032 | 130,032 | ||||
Mound Financing PLC | ||||||
5.29%, 05/08/07d | 1,222,297 | 1,222,297 | ||||
Natexis Banques Populaires | ||||||
5.33% - 5.35%, | 2,080,506 | 2,080,482 | ||||
National City Bank of Indiana | ||||||
5.34%, 05/21/07 | 650,158 | 650,170 | ||||
Nationwide Building Society | ||||||
5.37% - 5.48%, | 4,291,044 | 4,291,526 | ||||
Newcastle Ltd. | ||||||
5.34%, 04/24/07 - 01/24/08d | 1,303,567 | 1,303,394 | ||||
Northern Rock PLC | ||||||
5.38%, 02/01/08d | 1,560,380 | 1,560,409 |
60 | 2007 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI PACIFIC EX-JAPAN INDEX FUND
February 28, 2007
Security | Principal | Value | ||||
Northlake CDO I | ||||||
5.42%, 09/06/07d | $ | 390,095 | $ | 390,095 | ||
Pricoa Global Funding I | ||||||
5.31%, 02/27/08d | 1,755,427 | 1,755,427 | ||||
Sedna Finance Inc. | ||||||
5.32% - 5.34%, | 1,885,459 | 1,885,445 | ||||
Skandinaviska Enskilda Banken | ||||||
5.32%, 02/15/08d | 1,300,316 | 1,300,316 | ||||
Strips III LLC | ||||||
5.37%, 07/24/07d | 264,592 | 264,592 | ||||
SunTrust Bank | ||||||
5.29%, 05/01/07 | 1,300,316 | 1,300,328 | ||||
Tango Finance Corp. | ||||||
5.27% - 5.34%, | 3,172,772 | 3,172,668 | ||||
Union Hamilton Special | ||||||
Funding LLC | ||||||
5.36% - 5.37%, | 2,145,522 | 2,145,522 | ||||
Wachovia Asset | ||||||
Securitization Inc. | ||||||
5.31%, 03/25/07d | 1,467,822 | 1,467,822 | ||||
Wachovia Bank N.A. | ||||||
5.36%, 05/22/07 | 2,600,633 | 2,600,633 | ||||
Wal-Mart Stores Inc. | ||||||
5.50%, 07/16/07d | 975,237 | 975,484 | ||||
Wells Fargo & Co. | ||||||
5.33%, 11/15/07d | 650,158 | 650,184 | ||||
WhistleJacket Capital Ltd. | ||||||
5.28% - 5.35%, | 975,237 | 975,241 | ||||
White Pine Finance LLC | ||||||
5.28% - 5.32%, | 3,900,949 | 3,900,600 |
Security | Principal | Value | |||||
Wind Master Trust | |||||||
5.31%, 07/25/07d | $ | 520,127 | $ | 520,127 | |||
94,450,984 | |||||||
TOTAL SHORT-TERM INVESTMENTS | 182,666,446 | ||||||
TOTAL INVESTMENTS | 3,037,782,953 | ||||||
Other Assets, Less Liabilities – (5.83)% | (167,353,477 | ) | |||||
NET ASSETS – 100.00% | $ | 2,870,429,476 | |||||
a | All or a portion of this security represents a security on loan. See Note 5. |
b | Non-income earning security. |
c | All or a portion of this security (these securities) represent(s) an investment of securities lending collateral. See Note 5. |
d | This security or a portion of these securities may be resold to qualified institutional buyers under Rule 144A or pursuant to Section 4(2) of the Securities Act of 1933. |
e | Affiliated issuer. See Note 2. |
f | The rate quoted is the annualized seven-day yield of the fund at period end. |
g | 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 financial statements.
SCHEDULESOF INVESTMENTS | 61 |
Table of Contents
Schedule of Investments (Unaudited)
iSHARES® MSCI SINGAPORE INDEX FUND
February 28, 2007
Security | Shares | Value | |||
COMMON STOCKS – 99.90% | |||||
AIRLINES – 4.41% | |||||
Singapore Airlines Ltd. | 6,405,000 | $ | 66,153,947 | ||
66,153,947 | |||||
BANKS – 35.19% | |||||
DBS Group Holdings Ltd. | 13,007,000 | 181,107,436 | |||
Oversea-Chinese Banking Corp. | 28,638,000 | 159,126,001 | |||
United Overseas Bank Ltd. | 14,091,000 | 187,910,704 | |||
528,144,141 | |||||
BEVERAGES – 2.18% | |||||
Fraser and Neave Ltd. | 10,248,000 | 32,691,773 | |||
32,691,773 | |||||
COMPUTERS – 0.30% | |||||
Creative Technology Ltd.a | 704,550 | 4,559,598 | |||
4,559,598 | |||||
DISTRIBUTION & WHOLESALE – 0.82% | |||||
Jardine Cycle & Carriage Ltd. | 1,442,000 | 12,254,290 | |||
12,254,290 | |||||
DIVERSIFIED FINANCIAL SERVICES – 2.69% | |||||
Singapore Exchange Ltd. | 9,096,000 | 40,433,273 | |||
40,433,273 | |||||
ELECTRONICS – 1.64% | |||||
Venture Corp. Ltd. | 2,710,000 | 24,624,285 | |||
24,624,285 | |||||
ENGINEERING & CONSTRUCTION – 3.89% | |||||
SembCorp Industries Ltd. | 8,967,000 | 25,791,665 | |||
Singapore Technologies Engineering Ltd.a | 15,372,000 | 32,557,791 | |||
58,349,456 | |||||
FOOD – 1.36% | |||||
Olam International Ltd.a | 7,686,000 | 12,410,146 | |||
Want Want Holdings Ltd.a | 5,170,000 | 7,961,800 | |||
20,371,946 | |||||
HEALTH CARE - SERVICES – 0.92% | |||||
Parkway Holdings Ltd.a | 7,138,500 | 13,812,688 | |||
13,812,688 | |||||
HOLDING COMPANIES - DIVERSIFIED – 5.67% | |||||
Haw Par Corp. Ltd. | 1,281,000 | 6,071,090 | |||
Keppel Corp. Ltd. | 5,887,000 | 68,500,474 |
Security | Shares | Value | |||
Noble Group Ltd.a | 11,529,000 | $ | 10,551,136 | ||
85,122,700 | |||||
MEDIA – 3.44% | |||||
Singapore Press Holdings Ltd. | 17,940,000 | 51,600,588 | |||
51,600,588 | |||||
OIL & GAS – 0.25% | |||||
Singapore Petroleum Co. Ltd.a | 1,281,000 | 3,751,515 | |||
3,751,515 | |||||
REAL ESTATE – 14.21% | |||||
Allgreen Properties Ltd.a | 7,686,000 | 7,938,473 | |||
CapitaCommercial Trusta | 11,529,000 | 21,253,002 | |||
CapitaLand Ltd.a | 14,097,000 | 64,506,619 | |||
City Developments Ltd. | 6,405,000 | 56,523,942 | |||
Keppel Land Ltd.a | 3,944,000 | 21,914,692 | |||
Singapore Land Ltd. | 1,860,000 | 11,064,553 | |||
UOL Group Ltd. | 6,405,000 | 20,851,054 | |||
Wing Tai Holdings Ltd.a | 5,124,000 | 9,311,796 | |||
213,364,131 | |||||
REAL ESTATE INVESTMENT TRUSTS – 3.80% | |||||
Ascendas Real Estate | |||||
Investment Trusta | 11,529,000 | 18,238,392 | |||
CapitaMall Trust | |||||
Management Ltd.a | 10,748,000 | 24,590,946 | |||
Suntec REITa | 11,529,000 | 14,244,033 | |||
57,073,371 | |||||
SEMICONDUCTORS – 1.72% | |||||
Chartered Semiconductor | |||||
Manufacturing Ltd.a,b | 11,529,000 | 11,003,328 | |||
STATS ChipPAC Ltd.a,b | 15,372,000 | 14,872,077 | |||
25,875,405 | |||||
SHIPBUILDING – 0.97% | |||||
SembCorp Marine Ltd.a | 6,405,000 | 14,570,616 | |||
14,570,616 | |||||
TELECOMMUNICATIONS – 11.78% | |||||
Singapore Telecommunications Ltd.a | 84,558,568 | 176,883,424 | |||
176,883,424 |
62 | 2007 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI SINGAPORE INDEX FUND
February 28, 2007
Security | Shares or Principal | Value | ||||
TRANSPORTATION – 4.66% | ||||||
ComfortDelGro Corp. Ltd. | 20,502,000 | $ | 24,928,073 | |||
COSCO Corp. (Singapore) Ltd. | 8,967,000 | 15,885,321 | ||||
Neptune Orient Lines Ltd.a | 5,124,000 | 9,646,753 | ||||
Singapore Post Ltd.a | 16,653,000 | 12,192,424 | ||||
SMRT Corp. Ltd. | 7,686,000 | 7,285,308 | ||||
69,937,879 | ||||||
TOTAL COMMON STOCKS | 1,499,575,026 | |||||
SHORT-TERM INVESTMENTS – 11.40% | ||||||
CERTIFICATES OF DEPOSITc– 0.53% | ||||||
Credit Suisse First Boston NY | ||||||
5.28% - 5.43%, | ||||||
04/23/07 - 08/21/07 | $ | 1,845,971 | 1,845,971 | |||
Deutsche Bank AG | ||||||
5.35%, 08/08/07 | 3,076,619 | 3,076,619 | ||||
Washington Mutual Bank | ||||||
5.33%, 03/19/07 | 3,076,619 | 3,076,619 | ||||
7,999,209 | ||||||
COMMERCIAL PAPERc – 2.56% | ||||||
Amstel Funding Corp. | ||||||
5.22%, | 1,170,481 | 1,162,569 | ||||
BNP Paribas Finance Inc. | ||||||
5.12%, 06/06/07 | 430,727 | 424,790 | ||||
Bryant Park Funding LLC | ||||||
5.27%, 03/06/07d | 303,281 | 303,059 | ||||
Cantabric Finance LLC | ||||||
5.25%, 03/06/07d | 984,518 | 983,800 | ||||
Cheyne Finance LLC | ||||||
5.24%, | 922,986 | 916,358 | ||||
Concord Minutemen | ||||||
Capital Co. LLC | ||||||
5.29%, 03/19/07d | 627,224 | 625,565 | ||||
Crown Point Capital Co. LLC | ||||||
5.20%, 07/18/07d | 1,421,582 | 1,393,040 | ||||
Edison Asset Securitization LLC | ||||||
5.21%, 04/11/07d | 510,017 | 506,991 | ||||
Five Finance Inc. | ||||||
5.22%, 04/20/07d | 566,098 | 561,994 |
Security | Principal | Value | ||||
General Electric Capital Corp. | ||||||
5.12% - 5.20%, | ||||||
06/04/07 - 07/17/07d | $ | 2,153,633 | $ | 2,116,643 | ||
Giro Funding Corp. | ||||||
5.25%, 03/05/07 - 03/12/07d | 2,018,262 | 2,015,828 | ||||
Grampian Funding LLC | ||||||
5.14% - 5.23%, | ||||||
04/23/07 - 06/06/07d | 2,399,762 | 2,369,957 | ||||
Harrier Finance Funding LLC | ||||||
5.12%, 06/06/07d | 1,230,647 | 1,213,687 | ||||
Irish Permanent Treasury PLC | ||||||
5.18%, 07/10/07 | 615,324 | 603,725 | ||||
KKR Pacific Funding Trust | ||||||
5.29%, 03/13/07d | 1,538,309 | 1,535,597 | ||||
Lexington Parker Capital | ||||||
Co. LLC | ||||||
5.18% - 5.20%, | ||||||
05/17/07 - 07/25/07d | 1,554,898 | 1,528,433 | ||||
Liberty Street Funding Corp. | ||||||
5.27%, 03/06/07d | 147,678 | 147,570 | ||||
Lockhart Funding LLC | ||||||
5.25%, 05/04/07 - 05/14/07d | 2,776,291 | 2,749,920 | ||||
Nationwide Building Society | ||||||
5.21%, 04/13/07d | 1,169,115 | 1,161,840 | ||||
Nestle Capital Corp. | ||||||
5.19%, 08/09/07 | 738,388 | 721,250 | ||||
Sedna Finance Inc. | ||||||
5.22%, 04/17/07d | 701,469 | 696,688 | ||||
Simba Funding Corp. | ||||||
5.20%, 07/23/07d | 1,230,647 | 1,205,050 | ||||
Societe Generale | ||||||
5.18%, 05/16/07 | 3,076,619 | 3,042,974 | ||||
Thames Asset Global | ||||||
Securitization No. 1 Inc. | ||||||
5.25% - 5.28%, | ||||||
03/02/07 - 03/12/07d | 4,688,225 | 4,683,691 | ||||
Thornburg Mortgage | ||||||
Capital Resources LLC | ||||||
5.28%, 03/12/07d | 900,834 | 899,381 | ||||
Three Pillars Funding Corp. | ||||||
5.26%, 03/01/07 - 03/12/07d | 646,065 | 645,556 |
SCHEDULESOF INVESTMENTS | 63 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI SINGAPORE INDEX FUND
February 28, 2007
Security | Shares or Principal | Value | ||||
Tulip Funding Corp. | ||||||
5.29%, 03/15/07d | $ | 2,362,363 | $ | 2,357,503 | ||
Westpac Banking Corp. | ||||||
5.20%, 07/12/07d | 1,107,583 | 1,086,305 | ||||
Zela Finance Inc. | ||||||
5.20%, 07/16/07d | 738,388 | 723,777 | ||||
38,383,541 | ||||||
MEDIUM-TERM NOTESc – 0.24% | ||||||
Bank of America N.A. | ||||||
5.28%, 04/20/07 | 307,662 | 307,662 | ||||
Cullinan Finance Corp. | ||||||
5.71%, 06/28/07d | 922,986 | 922,986 | ||||
K2 USA LLC | ||||||
5.39%, 06/04/07d | 922,986 | 922,986 | ||||
Sigma Finance Inc. | ||||||
5.13% - 5.51%, | ||||||
03/30/07 - 06/18/07d | 1,439,858 | 1,439,858 | ||||
3,593,492 | ||||||
MONEY MARKET FUNDS – 0.08% | ||||||
Barclays Global Investors Funds Institutional Money Market Fund, Institutional Shares | 1,244,278 | 1,244,278 | ||||
1,244,278 | ||||||
REPURCHASE AGREEMENTSc– 1.56% | ||||||
Banc of America Securities LLC | $ | 2,461,295 | 2,461,295 | |||
Bear Stearns Companies Inc. (The) | 1,845,971 | 1,845,971 |
Security | Principal | Value | ||||
BNP Securities Corp. | $ | 123,065 | $ | 123,065 | ||
Citigroup Global Markets Holdings Inc. | 1,845,971 | 1,845,971 | ||||
Citigroup Global Markets Holdings Inc. | 2,461,295 | 2,461,295 | ||||
Citigroup Global Markets Holdings Inc. | 1,353,712 | 1,353,712 | ||||
Citigroup Global Markets Holdings Inc. | 738,388 | 738,388 |
64 | 2007 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI SINGAPORE INDEX FUND
February 28, 2007
Security | Principal | Value | ||||
Goldman Sachs Group Inc. (The) | $ | 456,656 | $ | 456,656 | ||
Greenwich Capital Markets Inc. | 5,168,719 | 5,168,719 | ||||
HSBC Securities Inc. | 615,324 | 615,324 | ||||
JP Morgan Securities Inc. | 307,662 | 307,662 | ||||
Merrill Lynch & Co. Inc. | 1,230,647 | 1,230,647 |
Security | Principal | Value | ||||
Morgan Stanley | $ | 1,230,647 | $ | 1,230,647 | ||
Morgan Stanley | 861,453 | 861,453 | ||||
Wachovia Capital | 2,707,424 | 2,707,424 | ||||
23,408,229 | ||||||
TIME DEPOSITSc – 0.47% | ||||||
Bank of Nova Scotia | ||||||
5.30%, 03/02/07 | 516,084 | 516,084 | ||||
Chase Bank USA N.A. | ||||||
5.38%, 03/01/07 | 1,845,971 | 1,845,971 | ||||
Citibank N.A. | ||||||
5.47%, 03/01/07 | 1,845,971 | 1,845,971 | ||||
Deutsche Bank AG | ||||||
5.38%, 03/01/07 | 2,890,434 | 2,890,434 | ||||
7,098,460 | ||||||
VARIABLE & FLOATING RATE NOTESc – 5.96% | ||||||
Allstate Life Global Funding II | ||||||
5.30% - 5.40%, | ||||||
02/15/08 - 03/07/08d | 3,150,457 | 3,150,770 | ||||
American Express Centurion Bank | ||||||
5.41%, 07/19/07 | 1,353,712 | 1,354,322 |
SCHEDULESOF INVESTMENTS | 65 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI SINGAPORE INDEX FUND
February 28, 2007
Security | Principal | Value | ||||
American Express Credit Corp. | ||||||
5.42%, 03/05/08 | $ | 369,194 | $ | 369,374 | ||
AmeriCredit Automobile | ||||||
Receivables Trust | ||||||
5.35%, 03/06/07 | 56,086 | 56,086 | ||||
Arkle Master Issuer PLC | ||||||
Series 2006-1A Class 1A | ||||||
5.30%, 11/19/07d | 922,986 | 922,986 | ||||
ASIF Global Financing | ||||||
5.40%, 05/03/07d | 123,065 | 123,076 | ||||
Australia & New Zealand | ||||||
Banking Group Ltd. | ||||||
5.32%, 02/22/08d | 799,921 | 799,921 | ||||
Bank of Ireland | ||||||
5.30% - 5.32%, | ||||||
08/14/07 - 02/20/08d | 1,784,439 | 1,784,490 | ||||
Beta Finance Inc. | ||||||
5.29% - 5.41%, | ||||||
04/25/07 - 07/25/07d | 3,138,151 | 3,138,208 | ||||
BMW US Capital LLC | ||||||
5.32%, 01/15/08d | 1,230,647 | 1,230,647 | ||||
BNP Paribas | ||||||
5.33%, 11/19/07d | 2,276,698 | 2,276,698 | ||||
Brigantine High Grade | ||||||
Funding Ltd. | ||||||
5.40%, 09/05/07d | 1,181,422 | 1,181,311 | ||||
Carlyle Loan Investment Ltd. | ||||||
5.37%, 04/13/07 - 07/15/07d | 898,373 | 898,373 | ||||
CC USA Inc. | ||||||
5.36%, 07/30/07d | 615,324 | 615,358 | ||||
Commodore CDO Ltd. | ||||||
5.44%, 12/12/07d | 307,662 | 307,662 | ||||
Credit Agricole SA | ||||||
5.33%, 11/23/07 | 1,230,647 | 1,230,647 | ||||
Credit Suisse First Boston NY | ||||||
5.36%, 04/24/07 | 615,324 | 615,328 | ||||
Cullinan Finance Corp. | ||||||
5.36%, 04/25/07d | 307,662 | 307,662 | ||||
DaimlerChrysler Auto Trust | ||||||
Series 2006-C Class A1 | ||||||
5.33%, 10/08/07d | 94,401 | 94,401 | ||||
DEPFA Bank PLC | ||||||
5.40%, 12/14/07d | 1,230,647 | 1,230,647 |
Security | Principal | Value | ||||
Dorada Finance Inc. | ||||||
5.33% - 5.41%, | ||||||
06/27/07 - 07/17/07d | $ | 1,415,245 | $ | 1,415,268 | ||
Eli Lilly Services Inc. | ||||||
5.31%, 03/01/07d | 821,457 | 821,457 | ||||
Fifth Third Bancorp | ||||||
5.32%, 02/22/08d | 2,461,295 | 2,461,295 | ||||
Five Finance Inc. | ||||||
5.31% - 5.37%, | ||||||
06/29/07 - 07/13/07d | 799,921 | 799,881 | ||||
General Electric Capital Corp. | ||||||
5.28% - 5.45%, | ||||||
07/09/07 - 02/22/08d | 1,292,180 | 1,292,306 | ||||
Granite Master Issuer PLC | ||||||
5.29%, 08/20/07d | 4,307,266 | 4,307,266 | ||||
Harrier Finance Funding LLC | ||||||
5.29% - 5.36%, | ||||||
07/25/07 - 08/15/07d | 1,599,842 | 1,599,851 | ||||
Hartford Life Global Funding Trust | ||||||
5.36% - 5.40%, | ||||||
07/13/07 - 03/14/08 | 1,845,971 | 1,846,089 | ||||
HBOS Treasury Services PLC | ||||||
5.46%, 01/24/08d | 1,230,647 | 1,230,647 | ||||
Holmes Financing PLC | ||||||
5.29%, 07/16/07d | 2,153,633 | 2,153,633 | ||||
JP Morgan Securities Inc. | ||||||
5.40%, 11/16/07 | 2,461,295 | 2,461,295 | ||||
JPMorgan Chase & Co. | ||||||
5.29% - 5.45%, | ||||||
07/27/07 - 02/29/08g | 3,384,280 | 3,384,281 | ||||
K2 USA LLC | ||||||
5.20% - 5.33%, | ||||||
04/02/07 - 06/28/07d | 922,986 | 922,970 | ||||
Kestrel Funding LLC | ||||||
5.30%, 07/11/07d | 492,259 | 492,240 | ||||
Kommunalkredit Austria AG | ||||||
5.32%, 02/08/08d | 738,388 | 738,388 | ||||
Leafs LLC | ||||||
5.32%, 01/22/08d | 1,192,337 | 1,192,337 | ||||
Links Finance LLC | ||||||
5.28% - 5.35%, | ||||||
05/10/07 - 05/16/07d | 1,353,712 | 1,353,685 |
66 | 2007 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI SINGAPORE INDEX FUND
February 28, 2007
Security | Principal | Value | ||||
Lothian Mortgages Master | ||||||
Issuer PLC | ||||||
5.29%, 04/24/07d | $ | 433,867 | $ | 433,867 | ||
Marshall & Ilsley Bank | ||||||
5.32%, 02/15/08 | 676,856 | 676,856 | ||||
Master Funding LLC | ||||||
5.35%, 04/25/07 - 05/25/07d | 2,227,140 | 2,227,140 | ||||
Merrill Lynch & Co. Inc. | ||||||
5.46%, 05/30/07g | 1,353,712 | 1,353,712 | ||||
Metropolitan Life Global Funding I | ||||||
5.33%, 03/06/08d | 1,845,971 | 1,845,971 | ||||
Metropolitan Life Insurance | ||||||
Funding Agreement | ||||||
5.44%, 08/01/07d,g | 123,065 | 123,065 | ||||
Mound Financing PLC | ||||||
5.29%, 05/08/07d | 1,156,809 | 1,156,809 | ||||
Natexis Banques Populaires | ||||||
5.33% - 5.35%, | ||||||
06/20/07 - 02/08/08d | 1,969,036 | 1,969,013 | ||||
National City Bank of Indiana | ||||||
5.34%, 05/21/07 | 615,324 | 615,335 | ||||
Nationwide Building Society | ||||||
5.37% - 5.48%, | ||||||
07/20/07 - 01/28/08d | 4,061,136 | 4,061,594 | ||||
Newcastle Ltd. | ||||||
5.34%, 04/24/07 - 01/24/08d | 1,233,724 | 1,233,560 | ||||
Northern Rock PLC | ||||||
5.38%, 02/01/08d | 1,476,777 | 1,476,805 | ||||
Northlake CDO I | ||||||
5.42%, 09/06/07d | 369,194 | 369,194 | ||||
Pricoa Global Funding I | ||||||
5.31%, 02/27/08d | 1,661,374 | 1,661,374 | ||||
Sedna Finance Inc. | ||||||
5.32% - 5.34%, | ||||||
05/25/07 - 08/21/07d | 1,784,439 | 1,784,425 | ||||
Skandinaviska Enskilda Banken | ||||||
5.32%, 02/15/08d | 1,230,647 | 1,230,647 | ||||
Strips III LLC | ||||||
5.37%, 07/24/07d | 250,415 | 250,415 | ||||
SunTrust Bank | ||||||
5.29%, 05/01/07 | 1,230,647 | 1,230,658 |
Security | Principal | Value | |||||
Tango Finance Corp. | |||||||
5.27% - 5.34%, | |||||||
04/25/07 - 07/16/07d | $ | 3,002,780 | $ | 3,002,680 | |||
Union Hamilton Special | |||||||
Funding LLC | |||||||
5.36% - 5.37%, | |||||||
03/28/07 - 06/21/07d | 2,030,568 | 2,030,568 | |||||
Wachovia Asset | |||||||
Securitization Inc. | |||||||
5.31%, 03/25/07d | 1,389,178 | 1,389,178 | |||||
Wachovia Bank N.A. | |||||||
5.36%, 05/22/07 | 2,461,295 | 2,461,295 | |||||
Wal-Mart Stores Inc. | |||||||
5.50%, 07/16/07d | 922,986 | 923,219 | |||||
Wells Fargo & Co. | |||||||
5.33%, 11/15/07d | 615,324 | 615,348 | |||||
WhistleJacket Capital Ltd. | |||||||
5.28% - 5.35%, | |||||||
04/18/07 - 06/13/07d | 922,986 | 922,989 | |||||
White Pine Finance LLC | |||||||
5.28% - 5.32%, | |||||||
05/22/07 - 08/20/07d | 3,691,942 | 3,691,611 | |||||
Wind Master Trust | |||||||
5.31%, 07/25/07d | 492,259 | 492,259 | |||||
89,390,443 | |||||||
TOTAL SHORT-TERM INVESTMENTS | 171,117,652 | ||||||
TOTAL INVESTMENTS | 1,670,692,678 | ||||||
Other Assets, Less Liabilities – (11.30)% | (169,674,860 | ) | |||||
NET ASSETS – 100.00% | $ | 1,501,017,818 | |||||
a | All or a portion of this security represents a security on loan. See Note 5. |
b | Non-income earning security. |
c | All or a portion of this security (these securities) represent(s) an investment of securities lending collateral. See Note 5. |
d | This security or a portion of these securities may be resold to qualified institutional buyers under Rule 144A or pursuant to Section 4(2) of the Securities Act of 1933. |
e | Affiliated issuer. See Note 2. |
f | The rate quoted is the annualized seven-day yield of the fund at period end. |
g | 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 financial statements.
SCHEDULESOF INVESTMENTS | 67 |
Table of Contents
Schedule of Investments (Unaudited)
iSHARES® MSCI SOUTH AFRICA INDEX FUND
February 28, 2007
Security | Shares | Value | |||
COMMON STOCKS – 99.95% | |||||
BANKS – 14.79% | |||||
FirstRand Ltd. | 4,959,628 | $ | 16,331,389 | ||
Nedbank Group Ltd. | 357,182 | 6,617,392 | |||
Standard Bank Group Ltd. | 2,162,498 | 29,880,666 | |||
52,829,447 | |||||
BUILDING MATERIALS – 0.39% | |||||
Pretoria Portland Cement Co. Ltd. | 23,870 | 1,381,272 | |||
1,381,272 | |||||
DIVERSIFIED FINANCIAL SERVICES – 2.24% | |||||
African Bank Investments Ltd. | 833,218 | 3,161,813 | |||
Alexander Forbes Ltd.a | 631,284 | 1,427,773 | |||
Investec Ltd. | 291,648 | 3,428,417 | |||
8,018,003 | |||||
ELECTRONICS – 0.91% | |||||
Reunert Ltd. | 309,318 | 3,253,382 | |||
3,253,382 | |||||
ENGINEERING & CONSTRUCTION – 2.15% | |||||
Aveng Ltd. | 697,996 | 3,790,692 | |||
Murray & Roberts Holdings Ltd. | 526,070 | 3,876,831 | |||
7,667,523 | |||||
FOOD – 3.24% | |||||
Shoprite Holdings Ltd. | 764,150 | 2,836,683 | |||
SPAR Group Ltd. (The) | 300,762 | 1,861,232 | |||
Tiger Brands Ltd. | 286,688 | 6,882,120 | |||
11,580,035 | |||||
FOREST PRODUCTS & PAPER – 1.42% | |||||
Sappi Ltd. | 360,220 | 5,076,451 | |||
5,076,451 | |||||
HEALTH CARE – PRODUCTS – 0.51% | |||||
Aspen Pharmacare Holdings Ltd.a | 377,394 | 1,827,481 | |||
1,827,481 | |||||
HEALTH CARE - SERVICES – 1.23% | |||||
Network Healthcare Holdings Ltd.a | 2,265,666 | 4,392,214 | |||
4,392,214 | |||||
HOLDING COMPANIES - DIVERSIFIED – 7.81% | |||||
AVI Ltd. | 561,658 | 1,544,438 | |||
Barloworld Ltd. | 354,454 | 8,450,404 | |||
Bidvest Group Ltd. | 459,668 | 8,911,112 |
Security | Shares | Value | |||
Imperial Holdings Ltd.a | 330,522 | $ | 7,452,684 | ||
Tongaat-Hulett Group Ltd. | 93,868 | 1,548,700 | |||
27,907,338 | |||||
HOME FURNISHINGS – 2.07% | |||||
Lewis Group Ltd. | 168,888 | 1,578,978 | |||
Steinhoff International | |||||
Holdings Ltd. | 1,618,882 | 5,798,176 | |||
7,377,154 | |||||
INSURANCE – 4.13% | |||||
Liberty Group Ltd. | 195,672 | 2,152,223 | |||
Metropolitan Holdings Ltd. | 983,320 | 2,054,977 | |||
Sanlam Ltd. | 4,040,974 | 10,528,434 | |||
14,735,634 | |||||
IRON & STEEL – 2.04% | |||||
Kumba Iron Ore Ltd.a | 109,492 | 1,919,381 | |||
Mittal Steel South Africa Ltd. | 354,392 | 5,352,448 | |||
7,271,829 | |||||
MEDIA – 3.55% | |||||
Naspers Ltd. | 538,284 | 12,692,410 | |||
12,692,410 | |||||
MINING – 22.59% | |||||
Anglo Platinum Ltd. | 116,126 | 16,445,050 | |||
AngloGold Ashanti Ltd. | 267,158 | 11,570,370 | |||
Gold Fields Ltd. | 1,071,546 | 18,409,854 | |||
Harmony Gold Mining Co. Ltd.a | 597,432 | 7,950,372 | |||
Impala Platinum Holdings Ltd. | 928,760 | 26,305,055 | |||
80,680,701 | |||||
OIL & GAS – 9.40% | |||||
Sasol Ltd. | 1,047,552 | 33,558,304 | |||
33,558,304 | |||||
PACKAGING & CONTAINERS – 1.24% | |||||
Consol Ltd. | 561,782 | 1,479,126 | |||
Nampak Ltd. | 919,832 | 2,940,356 | |||
4,419,482 | |||||
REAL ESTATE – 0.44% | |||||
Allan Gray Property Trust | 1,771,464 | 1,558,765 | |||
1,558,765 |
68 | 2007 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI SOUTH AFRICA INDEX FUND
February 28, 2007
Security | Shares | Value | |||
RETAIL – 7.88% | |||||
Edgars Consolidated Stores Ltd. | 888,336 | $ | 5,410,650 | ||
Ellerine Holdings Ltd. | 183,086 | 2,016,305 | |||
Foschini Ltd. | 359,600 | 3,219,605 | |||
JD Group Ltd. | 314,464 | 3,925,774 | |||
Massmart Holdings Ltd. | 353,028 | 4,072,299 | |||
Pick’n Pay Stores Ltd. | 388,306 | 1,754,325 | |||
Truworths International Ltd. | 810,774 | 3,790,070 | |||
Woolworths Holdings Ltd. | 1,409,694 | 3,946,128 | |||
28,135,156 | |||||
TELECOMMUNICATIONS – 11.30% | |||||
MTN Group Ltd. | 2,353,582 | 28,476,100 | |||
Telkom South Africa Ltd. | 529,480 | 11,866,036 | |||
40,342,136 | |||||
TRANSPORTATION – 0.62% | |||||
Grindrod Ltd. | 580,382 | 1,376,485 | |||
Super Group Ltd. | 492,528 | 846,466 | |||
2,222,951 | |||||
TOTAL COMMON STOCKS | 356,927,668 | ||||
SHORT-TERM INVESTMENTS – 0.00% | |||||
MONEY MARKET FUNDS – 0.00% | |||||
Barclays Global Investors | |||||
Money Market Fund, | |||||
Institutional Shares | |||||
5.30%b,c | 2,130 | 2,130 | |||
2,130 | |||||
TOTAL SHORT-TERM INVESTMENTS | 2,130 | ||||
TOTAL INVESTMENTS | 356,929,798 | ||||
Other Assets, Less Liabilities – 0.05% | 170,315 | ||||
NET ASSETS – 100.00% | $ | 357,100,113 |
a | Non-income earning security. |
b | Affiliated issuer. See Note 2. |
c | The rate quoted is the annualized seven-day yield of the fund at period end. |
See notes to financial statements.
SCHEDULESOF INVESTMENTS | 69 |
Table of Contents
Schedule of Investments (Unaudited)
iSHARES® MSCI SOUTH KOREA INDEX FUND
February 28, 2007
Security | Shares | Value | |||
COMMON STOCKS – 96.44% | |||||
ADVERTISING – 0.20% | |||||
Cheil Communications Inc.a | 13,500 | $ | 3,268,557 | ||
3,268,557 | |||||
AEROSPACE& DEFENSE – 0.42% | |||||
Hanjin Heavy Industries & | 222,750 | 6,977,939 | |||
6,977,939 | |||||
AGRICULTURE – 1.88% | |||||
KT&G Corp. | 517,725 | 31,282,311 | |||
31,282,311 | |||||
AIRLINES – 0.53% | |||||
Asiana Airlines Inc. | 418,500 | 2,755,335 | |||
Korean Air Co. Ltd. | 170,392 | 6,052,472 | |||
8,807,807 | |||||
APPAREL – 0.15% | |||||
LG Fashion Corp. | 109,954 | 2,487,013 | |||
2,487,013 | |||||
AUTO MANUFACTURERS – 3.73% | |||||
Hyundai Motor Co. Ltd. | 702,000 | 51,436,763 | |||
Kia Motors Corp.a,b | 837,000 | 10,799,140 | |||
62,235,903 | |||||
AUTO PARTS & EQUIPMENT – 1.78% | |||||
Hankook Tire Co. Ltd. | 486,000 | 7,947,754 | |||
Hyundai Mobis | 263,256 | 21,805,212 | |||
29,752,966 | |||||
BANKS – 9.58% | |||||
Daegu Bank | 540,000 | 9,203,568 | |||
Kookmin Bank | 1,525,509 | 137,371,948 | |||
Korea Exchange Banka | 445,500 | 6,410,242 | |||
Pusan Bank | 486,000 | 6,734,947 | |||
159,720,705 | |||||
BEVERAGES – 0.26% | |||||
Hite Brewery Co. Ltd. | 40,500 | 4,365,244 | |||
4,365,244 | |||||
CHEMICALS – 2.02% | |||||
Hanwha Chemical Corp. | 222,750 | 3,169,640 | |||
Honam Petrochemical Corp.b | 60,750 | 5,225,390 | |||
KCC Corp. | 20,250 | 5,483,434 |
Security | Shares | Value | |||
Korea Zinc Co. Ltd.a | 60,750 | $ | 5,922,109 | ||
LG Chem Ltd. | 202,500 | 9,354,094 | |||
LG Petrochemical Co. Ltd. | 94,515 | 2,955,789 | |||
Samsung Fine Chemicals Co. Ltd.a | 60,750 | 1,619,226 | |||
33,729,682 | |||||
COMMERCIAL SERVICES – 0.23% | |||||
S1 Corp. | 94,500 | 3,773,176 | |||
3,773,176 | |||||
COSMETICS & PERSONAL CARE – 0.60% | |||||
AmorePacific Corp. | 15,250 | 8,971,541 | |||
Pacific Corp. | 6,759 | 1,022,786 | |||
9,994,327 | |||||
DISTRIBUTION & WHOLESALE – 1.89% | |||||
Daewoo International Corp. | 195,750 | 7,795,078 | |||
Hyosung Corp. | 5 | 148 | |||
LG International Corp. | 145,715 | 3,172,090 | |||
Samsung Corp. | 627,750 | 20,598,359 | |||
31,565,675 | |||||
DIVERSIFIED FINANCIAL SERVICES – 8.58% | |||||
Daewoo Securities Co. Ltd.a | 526,500 | 9,728,257 | |||
Daishin Securities Co. Ltd.a | 168,750 | 3,879,620 | |||
Hana Financial Group Inc. | 519,751 | 27,596,421 | |||
Hyundai Securities Co. Ltd. | 499,500 | 6,868,987 | |||
Korea Investment Holdings Co. Ltd. | 168,755 | 8,422,518 | |||
Mirae Asset Securities Co. Ltd.a | 60,750 | 4,386,747 | |||
Mirae Asset Securities Co. Ltd. | 12,318 | 235,451 | |||
Samsung Securities Co.a | 243,000 | 13,547,308 | |||
Shinhan Financial Group Ltd. | 972,000 | 54,808,538 | |||
Tong Yang Investment Bankb | 371,250 | 4,100,032 | |||
Woori Investment & Securities Co.a | 425,250 | 9,483,116 | |||
143,056,995 | |||||
ELECTRIC – 3.00% | |||||
Korea Electric Power Corp. | 1,188,000 | 49,957,311 | |||
49,957,311 | |||||
ELECTRICAL COMPONENTS & | |||||
LG Electronics Inc. | 472,506 | 29,954,984 | |||
LS Cable Ltd. | 87,750 | 3,186,843 |
70 | 2007 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI SOUTH KOREA INDEX FUND
February 28, 2007
Security | Shares | Value | |||
Samsung Electronics Co. Ltd. | 506,250 | $ | 304,814,431 | ||
337,956,258 | |||||
ELECTRONICS – 3.02% | |||||
Daeduck Electronics Co. Ltd.a | 438,751 | 3,573,559 | |||
Hyundai Autonet Co. Ltd.a | 445,500 | 3,491,335 | |||
LG.Philips LCD Co. Ltd.b | 445,500 | 14,641,845 | |||
Samsung Electro-Mechanics Co. Ltd.a | 438,750 | 16,516,606 | |||
Samsung SDI Co. Ltd.a | 182,250 | 12,211,931 | |||
50,435,276 | |||||
ENGINEERING & CONSTRUCTION – 3.39% | |||||
Daelim Industrial Co. Ltd. | 114,750 | 9,809,255 | |||
Daewoo Engineering & Construction Co. Ltd.a | 702,000 | 14,238,293 | |||
GS Engineering & Construction Corp. | 162,000 | 14,794,520 | |||
Hyundai Engineering & Construction Co. Inc.b | 175,500 | 9,579,165 | |||
Samsung Engineering Co. Ltd. | 148,500 | 8,105,448 | |||
56,526,681 | |||||
ENVIRONMENTAL CONTROL – 0.32% | |||||
Woongjin Coway Co. Ltd. | 189,000 | 5,268,398 | |||
5,268,398 | |||||
FOOD – 1.23% | |||||
CJ Corp.a | 87,750 | 9,094,616 | |||
Lotte Confectionery Co. Ltd. | 3,500 | 4,493,469 | |||
Nong Shim Co. Ltd.a | 13,502 | 3,713,516 | |||
ORION Corp. | 13,509 | 3,292,254 | |||
20,593,855 | |||||
HOME BUILDERS – 1.05% | |||||
Hyundai Development Co. | 290,257 | 17,568,917 | |||
17,568,917 | |||||
HOUSEHOLD PRODUCTS & WARES – 0.39% | |||||
LG Household & Health Care Ltd.a | 54,000 | 6,537,114 | |||
6,537,114 | |||||
INSURANCE – 2.69% | |||||
Dongbu Insurance Co. Ltd. | 175,500 | 4,780,264 | |||
Hyundai Marine & | |||||
Fire Insurance Co. Ltd. | 330,750 | 4,495,699 |
Security | Shares | Value | |||
Korean Reinsurance Co. | 337,500 | $ | 4,694,967 | ||
Samsung Fire & Marine Insurance Co. Ltd. | 175,500 | 30,936,604 | |||
44,907,534 | |||||
INTERNET – 1.86% | |||||
Daum Communications Corp.a,b | 51,975 | 3,604,086 | |||
NCsoft Corp.a,b | 67,500 | 3,727,302 | |||
NHN Corp.b | 172,800 | 23,671,233 | |||
31,002,621 | |||||
IRON & STEEL – 7.82% | |||||
Dongkuk Steel Mill Co. Ltd. | 155,261 | 3,808,569 | |||
POSCOa | 337,500 | 126,513,221 | |||
130,321,790 | |||||
LODGING – 0.56% | |||||
Kangwon Land Inc.a | 486,002 | 9,263,816 | |||
9,263,816 | |||||
MACHINERY- DIVERSIFIED – 0.37% | |||||
Doosan Infracore Co. Ltd. | 290,250 | 6,118,151 | |||
6,118,151 | |||||
MANUFACTURING – 0.51% | |||||
Cheil Industries Inc. | 209,250 | 8,588,205 | |||
8,588,205 | |||||
MINING – 0.11% | |||||
Poongsan Corp. | 87,768 | 1,812,772 | |||
1,812,772 | |||||
MULTIPLE UTILITIES – 0.72% | |||||
KT Freetel Co. Ltd. | 438,750 | 12,020,548 | |||
12,020,548 | |||||
OIL & GAS – 3.39% | |||||
SK Corp.a | 492,750 | 41,860,465 | |||
S-Oil Corp. | 202,500 | 14,622,491 | |||
56,482,956 | |||||
PHARMACEUTICALS – 0.55% | |||||
Hanmi Pharm Co. Ltd.a | 28,313 | 3,472,604 | |||
Yuhan Corp.a | 35,398 | 5,638,420 | |||
9,111,024 | |||||
RETAIL – 3.42% | |||||
Hyundai Department Store Co. Ltd. | 67,500 | 6,056,865 | |||
Lotte Shopping Co. Ltd. | 33,750 | 12,203,329 |
SCHEDULESOF INVESTMENTS | 71 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI SOUTH KOREA INDEX FUND
February 28, 2007
Security | Shares | Value | |||
Shinsegae Co. Ltd. | 67,500 | $ | 38,849,952 | ||
57,110,146 | |||||
SEMICONDUCTORS – 0.49% | |||||
Samsung Techwin Co. Ltd.a | 222,750 | 8,231,602 | |||
8,231,602 | |||||
SHIPBUILDING – 4.89% | |||||
Daewoo Shipbuilding & | |||||
Marine Engineering Co. Ltd. | 452,250 | 15,944,250 | |||
Hyundai Heavy | |||||
Industries Co. Ltd.a | 216,000 | 36,928,958 | |||
Hyundai Mipo Dockyard | 54,000 | 8,773,495 | |||
Samsung Heavy | |||||
Industries Co. Ltd. | 810,000 | 19,869,385 | |||
81,516,088 | |||||
TELECOMMUNICATIONS – 4.09% | |||||
KT Corp. | 452,261 | 20,218,953 | |||
KT Corp. ADRb | 405,000 | 9,104,400 | |||
SKTelecom Co. Ltd. | 119,920 | 25,023,128 | |||
SKTelecom Co. Ltd. ADR | 608,175 | 13,866,390 | |||
68,212,871 | |||||
TRANSPORTATION – 0.45% | |||||
Hanjin Shipping Co. Ltd.a | 222,750 | 7,521,981 | |||
7,521,981 | |||||
TOTAL COMMON STOCKS | 1,608,084,215 | ||||
PREFERRED STOCKS – 2.24% | |||||
AUTO MANUFACTURERS – 0.45% | |||||
Hyundai Motor Co. Ltd. | 182,250 | 7,528,432 | |||
7,528,432 | |||||
ELECTRICAL COMPONENTS & | |||||
LG Electronics Inc. | 141,750 | 4,937,241 | |||
Samsung Electronics Co. Ltd. | 54,000 | 24,944,250 | |||
29,881,491 | |||||
TOTAL PREFERRED STOCKS | 37,409,923 |
Security | Principal | Value | ||||
SHORT-TERM INVESTMENTS – 7.44% | ||||||
CERTIFICATES OF DEPOSITd – 0.35% | ||||||
Credit Suisse First Boston NY | ||||||
5.28% – 5.43%, | ||||||
04/23/07 – 08/21/07 | $ | 1,338,032 | $ | 1,338,032 | ||
Deutsche Bank AG | ||||||
5.35%, 08/08/07 | 2,230,054 | 2,230,054 | ||||
Washington Mutual Bank | ||||||
5.33%, 03/19/07 | 2,230,054 | 2,230,054 | ||||
5,798,140 | ||||||
COMMERCIAL PAPERd – 1.67% | ||||||
Amstel Funding Corp. | ||||||
5.22%, 04/16/07 - 04/17/07e | 848,411 | 842,668 | ||||
BNP Paribas Finance Inc. | ||||||
5.12%, 06/06/07 | 312,208 | 307,905 | ||||
Bryant Park Funding LLC | ||||||
5.27%, 03/06/07e | 219,830 | 219,669 | ||||
Cantabric Finance LLC | ||||||
5.25%, 03/06/07e | 713,617 | 713,097 | ||||
Cheyne Finance LLC | ||||||
5.24%, 04/12/07 - 04/23/07 e | 669,016 | 664,212 | ||||
Concord Minutemen Capital | ||||||
Co. LLC | ||||||
5.29%, 03/19/07e | 454,637 | 453,434 | ||||
Crown Point Capital Co. LLC | ||||||
5.20%, 07/18/07e | 1,030,419 | 1,009,730 | ||||
Edison Asset Securitization LLC | ||||||
5.21%, 04/11/07e | 369,680 | 367,487 | ||||
Five Finance Inc. | ||||||
5.22%, 04/20/07e | 410,330 | 407,355 | ||||
General Electric Capital Corp. | ||||||
5.12% - 5.20%, | ||||||
06/04/07 - 07/17/07e | 1,561,038 | 1,534,227 | ||||
Giro Funding Corp. | ||||||
5.25%, 03/05/07 - 03/12/07 e | 1,462,915 | 1,461,152 | ||||
Grampian Funding LLC | ||||||
5.14% - 5.23%, | ||||||
04/23/07 - 06/06/07e | 1,739,442 | 1,717,838 | ||||
Harrier Finance Funding LLC | ||||||
5.12%, 06/06/07e | 892,022 | 879,728 |
72 | 2007 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI SOUTH KOREA INDEX FUND
February 28, 2007
Security | Principal | Value | ||||
Irish Permanent Treasury PLC | ||||||
5.18%, 07/10/07 | $ | 446,011 | $ | 437,604 | ||
KKR Pacific Funding Trust | ||||||
5.29%, 03/13/07e | 1,115,027 | 1,113,061 | ||||
Lexington Parker Capital Co. LLC | ||||||
5.18% - 5.20%, | ||||||
05/17/07 - 07/25/07e | 1,127,051 | 1,107,867 | ||||
Liberty Street Funding Corp. | ||||||
5.27%, 03/06/07e | 107,043 | 106,964 | ||||
Lockhart Funding LLC | ||||||
5.25%, 05/04/07 - 05/14/07e | 2,012,365 | 1,993,250 | ||||
Nationwide Building Society | ||||||
5.21%, 04/13/07e | 847,420 | 842,147 | ||||
Nestle Capital Corp. | ||||||
5.19%, 08/09/07 | 535,213 | 522,790 | ||||
Sedna Finance Inc. | ||||||
5.22%, 04/17/07e | 508,452 | 504,987 | ||||
Simba Funding Corp. | ||||||
5.20%, 07/23/07e | 892,022 | 873,467 | ||||
Societe Generale | ||||||
5.18%, 05/16/07 | 2,230,054 | 2,205,667 | ||||
Thames Asset Global | ||||||
Securitization No. 1 Inc. | ||||||
5.25% - 5.28%, | ||||||
03/02/07 - 03/12/07e | 3,398,209 | 3,394,924 | ||||
Thornburg Mortgage | ||||||
Capital Resources LLC | ||||||
5.28%, 03/12/07e | 652,960 | 651,906 | ||||
Three Pillars Funding Corp. | ||||||
5.26%, | 468,293 | 467,925 | ||||
Tulip Funding Corp. | ||||||
5.29%, 03/15/07e | 1,712,333 | 1,708,811 | ||||
Westpac Banking Corp. | ||||||
5.20%, 07/12/07e | 802,819 | 787,396 | ||||
Zela Finance Inc. | ||||||
5.20%, 07/16/07e | 535,213 | 524,622 | ||||
27,821,890 |
Security | Shares or Principal | Value | ||||
MEDIUM-TERM NOTESd – 0.15% | ||||||
Bank of America N.A. | ||||||
5.28%, 04/20/07 | $ | 223,005 | $ | 223,005 | ||
Cullinan Finance Corp. | ||||||
5.71%, 06/28/07 e | 669,016 | 669,016 | ||||
K2 USA LLC | ||||||
5.39%, 06/04/07 e | 669,016 | 669,016 | ||||
Sigma Finance Inc. | ||||||
5.13% – 5.51%, | ||||||
03/30/07 – 06/18/07e | 1,043,666 | 1,043,666 | ||||
2,604,703 | ||||||
MONEY MARKET FUNDS – 0.06% | ||||||
Barclays Global Investors Funds | ||||||
Institutional Money Market | ||||||
Fund, Institutional Shares | ||||||
5.30%f,g | 946,492 | 946,492 | ||||
946,492 | ||||||
REPURCHASE AGREEMENTSd – 1.02% | ||||||
Banc of America Securities LLC | $ | 1,784,043 | 1,784,043 | |||
Bear Stearns Companies Inc. (The) | 1,338,032 | 1,338,032 | ||||
BNP Securities Corp. | 89,202 | 89,202 |
SCHEDULESOF INVESTMENTS | 73 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI SOUTH KOREA INDEX FUND
February 28, 2007
Security | Principal | Value | ||||
Citigroup Global Markets Holdings Inc. | $ | 1,338,032 | $ | 1,338,032 | ||
Citigroup Global Markets Holdings Inc. | 1,784,043 | 1,784,043 | ||||
Citigroup Global Markets Holdings Inc. | 981,224 | 981,224 | ||||
Citigroup Global Markets Holdings Inc. | 535,213 | 535,213 | ||||
Goldman Sachs Group Inc. (The) | 331,002 | 331,002 | ||||
Greenwich Capital Markets Inc. | 3,746,490 | 3,746,490 |
Security | Principal | Value | ||||
HSBC Securities Inc. | $ | 446,011 | $ | 446,011 | ||
JP Morgan Securities Inc. | 223,005 | 223,005 | ||||
Merrill Lynch & Co. Inc. | 892,022 | 892,022 | ||||
Morgan Stanley | 892,022 | 892,022 | ||||
Morgan Stanley | 624,415 | 624,415 | ||||
Wachovia Capital | 1,962,447 | 1,962,447 | ||||
16,967,203 |
74 | 2007 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI SOUTH KOREA INDEX FUND
February 28, 2007
Security | Principal | Value | ||||
TIME DEPOSITSd – 0.31% | ||||||
Bank of Nova Scotia | ||||||
5.30%, 03/02/07 | $ | 374,078 | $ | 374,078 | ||
Chase Bank USA N.A. | ||||||
5.38%, 03/01/07 | 1,338,032 | 1,338,032 | ||||
Citibank N.A. | ||||||
5.47%, 03/01/07 | 1,338,032 | 1,338,032 | ||||
Deutsche Bank AG | ||||||
5.38%, 03/01/07 | 2,095,100 | 2,095,100 | ||||
5,145,242 | ||||||
VARIABLE & FLOATING RATE NOTESd – 3.88% | ||||||
Allstate Life Global Funding II | ||||||
5.30% - 5.40%, | 2,283,575 | 2,283,802 | ||||
American Express Centurion Bank | ||||||
5.41%, 07/19/07 | 981,224 | 981,666 | ||||
American Express Credit Corp. | ||||||
5.42%, 03/05/08 | 267,606 | 267,737 | ||||
AmeriCredit Automobile | ||||||
Receivables Trust | ||||||
5.35%, 03/06/07 | 40,654 | 40,654 | ||||
Arkle Master Issuer PLC | ||||||
Series 2006-1A Class 1A | ||||||
5.30%, 11/19/07e | 669,016 | 669,016 | ||||
ASIF Global Financing | ||||||
5.40%, 05/03/07e | 89,202 | 89,210 | ||||
Australia & New Zealand | ||||||
Banking Group Ltd. | ||||||
5.32%, 02/22/08e | 579,814 | 579,814 | ||||
Bank of Ireland | ||||||
5.30% - 5.32%, | 1,293,431 | 1,293,468 | ||||
Beta Finance Inc. | ||||||
5.29% - 5.41%, | 2,274,655 | 2,274,696 | ||||
BMW US Capital LLC | ||||||
5.32%, 01/15/08e | 892,022 | 892,022 | ||||
BNP Paribas | ||||||
5.33%, 11/19/07e | 1,650,240 | 1,650,240 |
Security | Principal | Value | ||||
Brigantine High Grade | ||||||
Funding Ltd. | ||||||
5.40%, 09/05/07e | $ | 856,341 | $ | 856,261 | ||
Carlyle Loan Investment Ltd. | ||||||
5.37%, 04/13/07 - 07/15/07e | 651,176 | 651,176 | ||||
CC USA Inc. | ||||||
5.36%, 07/30/07e | 446,011 | 446,035 | ||||
Commodore CDO Ltd. | ||||||
5.44%, 12/12/07e | 223,005 | 223,005 | ||||
Credit Agricole SA | ||||||
5.33%, 11/23/07 | 892,022 | 892,022 | ||||
Credit Suisse First Boston NY | ||||||
5.36%, 04/24/07 | 446,011 | 446,014 | ||||
Cullinan Finance Corp. | ||||||
5.36%, 04/25/07e | 223,005 | 223,005 | ||||
DaimlerChrysler Auto Trust | ||||||
Series 2006-C Class A1 | ||||||
5.33%, 10/08/07e | 68,425 | 68,425 | ||||
DEPFA Bank PLC | ||||||
5.40%, 12/14/07e | 892,022 | 892,022 | ||||
Dorada Finance Inc. | ||||||
5.33% - 5.41%, | ||||||
06/27/07 - 07/17/07e | 1,025,825 | 1,025,842 | ||||
Eli Lilly Services Inc. | ||||||
5.31%, 03/01/07e | 595,424 | 595,424 | ||||
Fifth Third Bancorp | ||||||
5.32%, 02/22/08e | 1,784,043 | 1,784,043 | ||||
Five Finance Inc. | ||||||
5.31% - 5.37%, | 579,814 | 579,785 | ||||
General Electric Capital Corp. | ||||||
5.28% - 5.45%, | 936,623 | 936,715 | ||||
Granite Master Issuer PLC | ||||||
5.29%, 08/20/07e | 3,122,075 | 3,122,075 | ||||
Harrier Finance Funding LLC | ||||||
5.29% - 5.36%, | 1,159,628 | 1,159,635 | ||||
Hartford Life Global | ||||||
Funding Trust | ||||||
5.36% - 5.40%, | 1,338,032 | 1,338,119 |
SCHEDULESOF INVESTMENTS | 75 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI SOUTH KOREA INDEX FUND
February 28, 2007
Security | Principal | Value | ||||
HBOS Treasury Services PLC | ||||||
5.46%, 01/24/08e | $ | 892,022 | $ | 892,022 | ||
Holmes Financing PLC | ||||||
5.29%, 07/16/07e | 1,561,038 | 1,561,038 | ||||
JP Morgan Securities Inc. | ||||||
5.40%, 11/16/07 | 1,784,043 | 1,784,043 | ||||
JPMorgan Chase & Co. | ||||||
5.29% - 5.45%, | 2,453,059 | 2,453,059 | ||||
K2 USA LLC | ||||||
5.20% - 5.33%, | 669,016 | 669,005 | ||||
Kestrel Funding LLC | ||||||
5.30%, 07/11/07e | 356,809 | 356,795 | ||||
Kommunalkredit Austria AG | ||||||
5.32%, 02/08/08e | 535,213 | 535,213 | ||||
Leafs LLC | ||||||
5.32%, 01/22/08e | 864,253 | 864,253 | ||||
Links Finance LLC | ||||||
5.28% - 5.35%, | 981,224 | 981,204 | ||||
Lothian Mortgages | ||||||
Master Issuer PLC | ||||||
5.29%, 04/24/07e | 314,484 | 314,484 | ||||
Marshall & Ilsley Bank | ||||||
5.32%, 02/15/08 | 490,612 | 490,612 | ||||
Master Funding LLC | ||||||
5.35%, | 1,614,318 | 1,614,318 | ||||
Merrill Lynch & Co. Inc. | ||||||
5.46%, 05/30/07h | 981,224 | 981,224 | ||||
Metropolitan Life | ||||||
Global Funding I | ||||||
5.33%, 03/06/08e | 1,338,032 | 1,338,032 | ||||
Metropolitan Life Insurance | ||||||
Funding Agreement | ||||||
5.44%, 08/01/07e,h | 89,202 | 89,202 | ||||
Mound Financing PLC | ||||||
5.29%, 05/08/07e | 838,500 | 838,500 |
Security | Principal | Value | ||||
Natexis Banques Populaires | ||||||
5.33% - 5.35%, | $ | 1,427,234 | $ | 1,427,218 | ||
National City Bank of Indiana | ||||||
5.34%, 05/21/07 | 446,011 | 446,019 | ||||
Nationwide Building Society | ||||||
5.37% - 5.48%, | 2,943,671 | 2,944,003 | ||||
Newcastle Ltd. | ||||||
5.34%, | 894,252 | 894,133 | ||||
Northern Rock PLC | ||||||
5.38%, 02/01/08e | 1,070,426 | 1,070,446 | ||||
Northlake CDO I | ||||||
5.42%, 09/06/07e | 267,606 | 267,606 | ||||
Pricoa Global Funding I | ||||||
5.31%, 02/27/08e | 1,204,229 | 1,204,229 | ||||
Sedna Finance Inc. | ||||||
5.32% - 5.34%, | 1,293,431 | 1,293,422 | ||||
Skandinaviska Enskilda Banken | ||||||
5.32%, 02/15/08e | 892,022 | 892,022 | ||||
Strips III LLC | ||||||
5.37%, 07/24/07e | 181,511 | 181,511 | ||||
SunTrust Bank | ||||||
5.29%, 05/01/07 | 892,022 | 892,029 | ||||
Tango Finance Corp. | ||||||
5.27% - 5.34%, | 2,176,532 | 2,176,460 | ||||
Union Hamilton | ||||||
Special Funding LLC | ||||||
5.36% - 5.37%, | 1,471,835 | 1,471,836 | ||||
Wachovia Asset Securitization Inc. | ||||||
5.31%, 03/25/07e | 1,006,931 | 1,006,932 | ||||
Wachovia Bank N.A. | ||||||
5.36%, 05/22/07 | 1,784,043 | 1,784,043 | ||||
Wal-Mart Stores Inc. | ||||||
5.50%, 07/16/07e | 669,016 | 669,185 | ||||
Wells Fargo & Co. | ||||||
5.33%, 11/15/07e | 446,011 | 446,028 |
76 | 2007 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI SOUTH KOREA INDEX FUND
February 28, 2007
Security | Principal | Value | |||||
WhistleJacket Capital Ltd. | |||||||
5.28% - 5.35%, | $ | 669,016 | $ | 669,019 | |||
White Pine Finance LLC | |||||||
5.28% - 5.32%, | 2,676,064 | 2,675,824 | |||||
Wind Master Trust | |||||||
5.31%, 07/25/07e | 356,809 | 356,809 | |||||
64,793,706 | |||||||
TOTAL SHORT-TERM INVESTMENTS | 124,077,376 | ||||||
TOTAL INVESTMENTS | 1,769,571,514 | ||||||
Other Assets, Less Liabilities – (6.12)% | (102,098,043 | ) | |||||
NET ASSETS – 100.00% | $ | 1,667,473,471 | |||||
ADR - American Depositary Receipts
a | All or a portion of this security represents a security on loan. See Note 5. |
b | Non-income earning security. |
c | Security valued at fair value in accordance with procedures approved by the Board of Directors. See Note 1. |
d | All or a portion of this security (these securities) represent(s) an investment of securities lending collateral. See Note 5. |
e | This security or a portion of these securities may be resold to qualified institutional buyers under Rule 144A or pursuant to Section 4(2) of the Securities Act of 1933. |
f | Affiliated issuer. See Note 2. |
g | The rate quoted is the annualized seven-day yield of the fund at period end. |
h | 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 financial statements.
SCHEDULESOF INVESTMENTS | 77 |
Table of Contents
Schedule of Investments (Unaudited)
iSHARES® MSCI TAIWAN INDEX FUND
February 28, 2007
Security | Shares | Value | |||
COMMON STOCKS – 99.80% | |||||
AIRLINES – 0.38% | |||||
China Airlinesa | 9,684,907 | $ | 4,541,178 | ||
EVA Airways Corp. | 9,684,396 | 4,158,853 | |||
8,700,031 | |||||
APPAREL – 0.66% | |||||
Pou Chen Corp. | 13,719,541 | 15,197,671 | |||
15,197,671 | |||||
AUTO MANUFACTURERS – 0.43% | |||||
China Motor Co. Ltd. | 3,286,759 | 3,157,084 | |||
Yulon Motor Co. Ltd. | 5,649,483 | 6,738,230 | |||
9,895,314 | |||||
AUTO PARTS & EQUIPMENT – 0.15% | |||||
Cheng Shin Rubber | |||||
Industry Co. Ltd. | 3,642,039 | 3,559,140 | |||
3,559,140 | |||||
BANKS – 7.58% | |||||
Chang Hwa | |||||
Commercial Bank Ltd.a | 29,052,446 | 19,309,517 | |||
Chinatrust Financial | |||||
Holding Co. Ltd. | 46,806,566 | 37,360,021 | |||
E.Sun Financial | |||||
Holding Co. Ltd. | 22,596,378 | 14,949,956 | |||
First Financial | |||||
Holding Co. Ltd. | 31,473,867 | 23,115,860 | |||
Hua Nan Financial | |||||
Holdings Co. Ltd. | 25,824,965 | 19,750,808 | |||
Mega Financial | |||||
Holding Co. Ltd. | 62,946,136 | 42,027,769 | |||
Taishin Financial | |||||
Holdings Co. Ltd.a | 35,508,439 | 18,858,807 | |||
175,372,738 | |||||
BUILDING MATERIALS – 1.36% | |||||
Asia Cement Corp. | 10,491,860 | 10,714,752 | |||
Taiwan Cement Corp. | 19,651,156 | 16,490,272 | |||
Taiwan Glass Industrial Corp. | 5,220,288 | 4,333,077 | |||
31,538,101 |
Security | Shares | Value | |||
CHEMICALS – 7.60% | |||||
Eternal Chemical Co. Ltd. | 3,534,911 | $ | 6,136,477 | ||
Formosa Chemicals & | |||||
Fibre Co. | 20,982,393 | 40,436,478 | |||
Formosa Plastic Co. | 29,859,111 | 53,103,002 | |||
Nan Ya Plastic Corp. | 37,122,447 | 63,203,924 | |||
Oriental Union Chemical Corp. | 3,680,063 | 2,585,537 | |||
Taiwan Fertilizer Co. Ltd. | 5,649,000 | 10,440,792 | |||
175,906,210 | |||||
COMMERCIAL SERVICES – 0.18% | |||||
Taiwan Secom Co. Ltd. | 2,421,610 | 4,064,189 | |||
4,064,189 | |||||
COMPUTERS – 10.27% | |||||
Acer Inc. | 16,947,663 | 32,403,726 | |||
Advantech Co. Ltd. | 1,614,733 | 5,782,655 | |||
Benq Corp.a | 16,140,019 | 7,812,847 | |||
CMC Magnetics Corp.a | 22,596,400 | 6,926,362 | |||
Compal Electronics Inc. | 24,210,547 | 21,344,959 | |||
Foxconn Technology Co. Ltd. | 2,681,065 | 30,024,673 | |||
High Tech Computer Corp. | 2,421,200 | 35,601,560 | |||
Innolux Display Corp.a | 10,719,000 | 29,765,964 | |||
Inventec Co. Ltd. | 11,298,284 | 9,069,487 | |||
Lite-On Technology Corp. | 16,213,284 | 23,692,553 | |||
MiTAC International Corp. | 7,263,059 | 8,188,851 | |||
Quanta Computer Inc. | 13,151,075 | 22,550,402 | |||
Ritek Corp.a | 17,754,389 | 4,353,732 | |||
237,517,771 | |||||
DIVERSIFIED FINANCIAL SERVICES – 3.27% | |||||
Fubon Financial | |||||
Holding Co. Ltd. | 25,824,000 | 23,825,481 | |||
Fuhwa Financial | |||||
Holdings Co. Ltd.a | 10,491,821 | 5,094,663 | |||
Polaris Securities Co. Ltd.a | 13,945,227 | 6,602,292 | |||
SinoPac Financial | |||||
Holdings Co. Ltd. | 41,964,193 | 21,141,293 | |||
Waterland Financial Holdings | 12,105,000 | 3,783,961 | |||
Yuanta Core Pacific | |||||
Securities Co. Ltd. | 19,569,644 | 15,263,728 | |||
75,711,418 |
78 | 2007 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI TAIWAN INDEX FUND
February 28, 2007
Security | Shares | Value | |||
ELECTRICAL COMPONENTS & | |||||
Delta Electronics Inc. | 10,157,834 | $ | 32,985,986 | ||
Pacific Electric Wire & | |||||
Cable Co. Ltd.b | 986 | – | |||
Phoenixtec Power Co. Ltd. | 3,228,438 | 3,399,903 | |||
Tatung Co. Ltd.a | 26,631,120 | 12,002,189 | |||
Walsin Lihwa Corp.a | 19,368,069 | 10,022,020 | |||
58,410,098 | |||||
ELECTRONICS – 18.65% | |||||
Asia Optical Co. Inc. | 807,000 | 3,783,961 | |||
Asustek Computer Inc. | 19,368,556 | 51,727,858 | |||
AU Optronics Corp. | 45,192,710 | 65,423,134 | |||
Cheng Uei Precision | |||||
Industry Co. Ltd. | 1,075,000 | 4,012,898 | |||
Chi Mei Optoelectronics Corp. | 27,438,216 | 27,812,941 | |||
Chunghwa Picture Tubes Ltd.a | 45,192,105 | 8,654,391 | |||
Compeq Manufacturing Co. Ltd.a | 6,456,200 | 2,841,120 | |||
Gigabyte Technology Co. Ltd. | 3,228,017 | 2,547,145 | |||
HannStar Display Corp.a | 37,929,000 | 6,503,759 | |||
Hon Hai Precision | |||||
Industry Co. Ltd. | 30,339,550 | 211,778,346 | |||
Micro-Star International Co. Ltd. | 6,456,429 | 4,898,656 | |||
Nan Ya Printed Circuit | |||||
Board Corp. | 1,340,000 | 8,926,555 | |||
Optimax Technology Corp.a | 3,228,157 | 1,861,456 | |||
Phoenix Precision | |||||
Technology Corp. | 3,228,814 | 3,669,775 | |||
Synnex Technology | |||||
International Corp. | 5,649,946 | 6,481,577 | |||
Wintek Corp. | 7,093,537 | 6,243,174 | |||
Ya Hsin Industrial Co. Ltd. | 6,757,461 | 5,680,779 | |||
Yageo Corp.a | 19,368,100 | 8,523,140 | |||
431,370,665 | |||||
FOOD – 0.75% | |||||
Uni-President Enterprises Co. | 17,754,637 | 17,350,510 | |||
17,350,510 | |||||
FOREST PRODUCTS & PAPER – 0.17% | |||||
Yuen Foong Yu Paper | 9,684,360 | 3,909,013 | |||
3,909,013 |
Security | Shares | Value | |||
HOME FURNISHINGS – 0.42% | |||||
Nien Made Enterprise Co. Ltd. | 2,421,443 | $ | 2,270,792 | ||
Teco Electric and | |||||
Machinery Co. Ltd. | 13,719,092 | 7,369,588 | |||
9,640,380 | |||||
INSURANCE – 4.78% | |||||
Cathay Financial | |||||
Holding Co. Ltd. | 41,157,905 | 89,935,331 | |||
Shin Kong Financial | |||||
Holding Co. Ltd. | 20,582,832 | 20,614,065 | |||
110,549,396 | |||||
INVESTMENT COMPANIES – 1.27% | |||||
China Development Financial | |||||
Holding Co. | 63,753,808 | 29,409,951 | |||
29,409,951 | |||||
IRON & STEEL – 2.97% | |||||
China Steel Corp. | 62,139,468 | 68,834,312 | |||
68,834,312 | |||||
LEISURE TIME – 0.11% | |||||
Giant Manufacturing Co. Ltd. | 1,614,914 | 2,470,157 | |||
2,470,157 | |||||
MANUFACTURING – 0.31% | |||||
Largan Precision Co. Ltd. | 523,000 | 7,182,322 | |||
7,182,322 | |||||
METAL FABRICATE & HARDWARE – 1.20% | |||||
CatcherTechnology Co. Ltd. | 2,421,707 | 24,253,818 | |||
Yieh Phui Enterprise Co. Ltd. | 8,070,413 | 3,441,253 | |||
27,695,071 | |||||
MULTIPLE UTILITIES – 0.19% | |||||
Fu Sheng Industrial Co. Ltd. | 4,842,292 | 4,526,331 | |||
4,526,331 | |||||
OFFICE & BUSINESS EQUIPMENT – 0.13% | |||||
Kinpo Electronics Inc. | 8,070,181 | 3,061,525 | |||
3,061,525 | |||||
OIL & GAS – 1.24% | |||||
Formosa Petrochemical Corp. | 13,719,000 | 28,603,803 | |||
28,603,803 |
SCHEDULESOF INVESTMENTS | 79 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI TAIWAN INDEX FUND
February 28, 2007
Security | Shares | Value | |||
REAL ESTATE – 0.19% | |||||
Cathay Real Estate | 6,456,493 | $ | 4,369,645 | ||
4,369,645 | |||||
RETAIL – 0.34% | |||||
President Chain Store Corp. | 3,228,640 | 7,838,883 | |||
7,838,883 | |||||
SEMICONDUCTORS – 26.28% | |||||
Advanced Semiconductor | |||||
Engineering Inc.a | 24,210,690 | 28,692,790 | |||
Macronix | |||||
International Co. Ltd.a | 22,596,492 | 9,258,047 | |||
MediaTek Inc. | 5,649,462 | 63,438,572 | |||
Novatek Microelectronics | |||||
Corp. Ltd. | 3,228,284 | 15,969,963 | |||
Powerchip | |||||
Semiconductor Corp. | 45,258,000 | 29,531,017 | |||
Realtek | |||||
Semiconductor Corp. | 5,649,903 | 9,430,794 | |||
Siliconware Precision | |||||
Industries Co. Ltd. | 16,947,240 | 30,808,488 | |||
Taiwan Semiconductor | |||||
Manufacturing Co. Ltd. | 154,944,136 | 325,876,438 | |||
United Microelectronics Corp. | 129,120,262 | 79,157,187 | |||
Via Technologies Inc.a | 6,590,861 | 6,820,891 | |||
Winbond Electronics Corp.a | 24,210,280 | 9,037,525 | |||
608,021,712 | |||||
TELECOMMUNICATIONS – 4.65% | |||||
Accton Technology Corp.a | 4,842,259 | 3,188,985 | |||
Chunghwa Telecom Co. Ltd. | 36,315,800 | 68,443,435 | |||
Compal Communications Inc. | 878,000 | 2,997,724 | |||
D-Link Corp. | 4,842,001 | 7,031,555 | |||
Inventec Appliances Corp. | 952,000 | 2,418,282 | |||
Taiwan Cellular Corp. | 19,368,920 | 18,751,701 | |||
Zyxel Communications Corp. | 3,228,250 | 4,737,053 | |||
107,568,735 | |||||
TEXTILES – 0.88% | |||||
Far Eastern Textile Ltd. | 17,754,612 | 15,249,029 | |||
Formosa Taffeta Co. Ltd. | 6,456,515 | 5,094,671 | |||
20,343,700 |
Security | Shares | Value | |||
TRANSPORTATION – 0.87% | |||||
Evergreen Marine Corp. Ltd. | 6,877,467 | $ | 4,487,573 | ||
U-Ming Marine Transport Corp. | 3,228,800 | 4,860,348 | |||
Wan Hai Lines Ltd. | 7,263,794 | 4,772,721 | |||
Yang Ming Marine | |||||
Transport Corp. | 8,877,667 | 6,062,140 | |||
20,182,782 | |||||
TOTAL COMMON STOCKS | 2,308,801,574 | ||||
SHORT-TERM INVESTMENTS – 0.04% | |||||
MONEY MARKET FUNDS – 0.04% | |||||
Barclays Global Investors Funds Institutional Money Market Fund, Institutional Shares | |||||
5.30%c,d | 868,857 | 868,857 | |||
868,857 | |||||
TOTAL SHORT-TERM INVESTMENTS | 868,857 | ||||
TOTAL INVESTMENTS | 2,309,670,431 | ||||
Other Assets, Less Liabilities – 0.16% | 3,710,447 | ||||
NET ASSETS – 100.00% | $ | 2,313,380,878 |
a | Non-income earning security. |
b | Security valued at fair value in accordance with procedures approved by the Board of Directors. See Note 1. |
c | Affiliated issuer. See Note 2. |
d | The rate quoted is the annualized seven-day yield of the fund at period end. |
See notes to financial statements.
80 | 2007 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Statements of Assets and Liabilities (Unaudited)
iSHARES®, INC.
February 28, 2007
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 | $ | 800,176,832 | $ | 1,954,032,646 | $ | 890,175,456 | $ | 12,159,920,067 | $ | 1,306,187,855 | $ | 751,143,281 | |||||||||||
Affiliated issuers | 462,881 | 4,775,657 | 300,977 | 329,737,773 | 2,063,042 | 1,749,437 | |||||||||||||||||
Total cost of investments | $ | 800,639,713 | $ | 1,958,808,303 | $ | 890,476,433 | $ | 12,489,657,840 | $ | 1,308,250,897 | $ | 752,892,718 | |||||||||||
Investments in securities, at value (including securities on loana) | |||||||||||||||||||||||
Unaffiliated issuers | $ | 941,883,581 | $ | 2,873,127,572 | $ | 1,041,868,180 | $ | 14,621,530,609 | $ | 1,509,527,464 | $ | 968,796,268 | |||||||||||
Affiliated issuers | 462,881 | 4,775,657 | 300,977 | 482,502,176 | 2,063,042 | 1,749,437 | |||||||||||||||||
Total value of investments | 942,346,462 | 2,877,903,229 | 1,042,169,157 | 15,104,032,785 | 1,511,590,506 | 970,545,705 | |||||||||||||||||
Foreign currencies, at valueb | 866,539 | 76,548 | 1,614,774 | 17,601,025 | 335,856 | 52 | |||||||||||||||||
Receivables: | |||||||||||||||||||||||
Investment securities sold | 2,825,387 | 20,005,712 | 19,059,007 | 75,172,746 | 8,845,236 | 13,188,060 | |||||||||||||||||
Dividends and interest | 5,894,047 | 13,566,293 | 1,151,122 | 22,869,004 | 317,448 | 336,503 | |||||||||||||||||
Capital shares sold | 176,075 | – | – | – | 180,916 | 25,711,964 | |||||||||||||||||
Total Assets | 952,108,510 | 2,911,551,782 | 1,063,994,060 | 15,219,675,560 | 1,521,269,962 | 1,009,782,284 | |||||||||||||||||
LIABILITIES | |||||||||||||||||||||||
Payables: | |||||||||||||||||||||||
Investment securities purchased | 3,247,664 | 20,430,404 | 19,511,792 | 72,595,646 | 9,379,383 | 29,501,940 | |||||||||||||||||
Collateral for securities on loan (Note 5) | 26,926,855 | – | – | 1,012,041,200 | 151,086,959 | – | |||||||||||||||||
Capital shares redeemed | – | – | 7,650 | 7,872,631 | 647,834 | 9,144,407 | |||||||||||||||||
Investment advisory fees (Note 2) | 339,659 | 1,588,300 | 417,768 | 8,799,995 | 559,729 | 340,632 | |||||||||||||||||
Total Liabilities | 30,514,178 | 22,018,704 | 19,937,210 | 1,101,309,472 | 161,673,905 | 38,986,979 | |||||||||||||||||
NET ASSETS | $ | 921,594,332 | $ | 2,889,533,078 | $ | 1,044,056,850 | $ | 14,118,366,088 | $ | 1,359,596,057 | $ | 970,795,305 | |||||||||||
Net assets consist of: | |||||||||||||||||||||||
Paid-in capital | $ | 743,026,579 | $ | 2,006,138,989 | $ | 857,444,873 | $ | 10,550,852,671 | $ | 1,146,301,615 | $ | 807,157,887 | |||||||||||
Undistributed (distributions in excess of) net investment income | (8,620,956 | ) | 6,732,702 | 1,852,400 | (9,985,998 | ) | (2,705,876 | ) | (1,857,096 | ) | |||||||||||||
Undistributed net realized gain (accumulated net realized loss) | 45,472,962 | (42,452,875 | ) | 33,076,625 | 963,273,264 | 12,660,932 | (52,157,011 | ) | |||||||||||||||
Net unrealized appreciation on investments and translation of assets and liabilities in foreign currencies | 141,715,747 | 919,114,262 | 151,682,952 | 2,614,226,151 | 203,339,386 | 217,651,525 | |||||||||||||||||
NET ASSETS | $ | 921,594,332 | $ | 2,889,533,078 | $ | 1,044,056,850 | $ | 14,118,366,088 | $ | 1,359,596,057 | $ | 970,795,305 | |||||||||||
Shares outstanding | 37,600,000 | 63,100,000 | 41,100,000 | 126,600,000 | 85,575,000 | 95,550,000 | |||||||||||||||||
Net asset value per share | $ | 24.51 | $ | 45.79 | $ | 25.40 | $ | 111.52 | $ | 15.89 | $ | 10.16 | |||||||||||
a | Securities on loan with market values of $25,613,280, $–, $–, $943,693,567, $142,949,306 and $–, respectively. See Note 5. |
b | Cost of foreign currencies: $865,109, $76,011, $1,619,049, $17,699,753, $335,953 and $52, respectively. |
See notes to financial statements.
FINANCIAL STATEMENTS | 81 |
Table of Contents
Statements of Assets and Liabilities (Unaudited) (Continued)
iSHARES®, INC.
February 28, 2007
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 | $ | 1,022,020,905 | $ | 2,225,531,792 | $ | 1,435,069,183 | $ | 346,621,973 | $ | 1,149,974,451 | $ | 1,815,828,889 | |||||||||||
Affiliated issuers (Note 2) | 1,138,909 | 3,176,265 | 1,244,278 | 2,130 | 946,492 | 868,857 | |||||||||||||||||
Total cost of investments | $ | 1,023,159,814 | $ | 2,228,708,057 | $ | 1,436,313,461 | $ | 346,624,103 | $ | 1,150,920,943 | $ | 1,816,697,746 | |||||||||||
Investments in securities, at value (including securities on loana) (Note 1): | |||||||||||||||||||||||
Unaffiliated issuers | $ | 1,103,260,681 | $ | 3,034,606,688 | $ | 1,669,448,400 | $ | 356,927,668 | $ | 1,768,625,022 | $ | 2,308,801,574 | |||||||||||
Affiliated issuers (Note 2) | 1,138,909 | 3,176,265 | 1,244,278 | 2,130 | 946,492 | 868,857 | |||||||||||||||||
Total value of investments | 1,104,399,590 | 3,037,782,953 | 1,670,692,678 | 356,929,798 | 1,769,571,514 | 2,309,670,431 | |||||||||||||||||
Foreign currencies, at valueb | 1,285,141 | 2,029,107 | 880,401 | 336,114 | – | 4,761,119 | |||||||||||||||||
Receivables: | |||||||||||||||||||||||
Investment securities sold | 40,367,940 | 23,559,020 | – | 534,469 | 2,426,720 | 68,092,781 | |||||||||||||||||
Dividends and interest | 75,316 | 12,963,644 | 653,054 | 296 | 21,963,388 | 5,396 | |||||||||||||||||
Capital shares sold | – | 205,738 | 501,117 | – | – | – | |||||||||||||||||
Total Assets | 1,146,127,987 | 3,076,540,462 | 1,672,727,250 | 357,800,677 | 1,793,961,622 | 2,382,529,727 | |||||||||||||||||
LIABILITIES | |||||||||||||||||||||||
Payables: | |||||||||||||||||||||||
Investment securities purchased | 41,424,506 | 25,537,677 | – | 508,888 | – | 68,006,052 | |||||||||||||||||
Collateral for securities on loan (Note 5) | 63,561,469 | 179,490,181 | 169,873,374 | – | 123,130,884 | – | |||||||||||||||||
Capital shares redeemed | 100,594 | – | 1,259,117 | – | 2,470,331 | – | |||||||||||||||||
Investment advisory fees (Note 2) | 480,392 | 1,083,128 | 576,941 | 191,676 | 886,936 | 1,142,797 | |||||||||||||||||
Total Liabilities | 105,566,961 | 206,110,986 | 171,709,432 | 700,564 | 126,488,151 | 69,148,849 | |||||||||||||||||
NET ASSETS | $ | 1,040,561,026 | $ | 2,870,429,476 | $ | 1,501,017,818 | $ | 357,100,113 | $ | 1,667,473,471 | $ | 2,313,380,878 | |||||||||||
Net assets consist of: | |||||||||||||||||||||||
Paid-in capital | $ | 846,820,466 | $ | 2,093,467,945 | $ | 1,229,462,724 | $ | 341,151,394 | $ | 1,109,950,370 | $ | 1,992,952,582 | |||||||||||
Undistributed (distributions in excess of) net investment income (accumulated net investment loss) | (1,131,513 | ) | (29,477,729 | ) | (4,987,676 | ) | 385,000 | 17,243,015 | (5,639,785 | ) | |||||||||||||
Undistributed net realized gain (accumulated net realized loss) | 113,654,114 | (2,652,611 | ) | 42,160,298 | 5,259,264 | (78,107,122 | ) | (166,904,752 | ) | ||||||||||||||
Net unrealized appreciation on investments and translation of assets and liabilities in foreign currencies | 81,217,959 | 809,091,871 | 234,382,472 | 10,304,455 | 618,387,208 | 492,972,833 | |||||||||||||||||
NET ASSETS | $ | 1,040,561,026 | $ | 2,870,429,476 | $ | 1,501,017,818 | $ | 357,100,113 | $ | 1,667,473,471 | $ | 2,313,380,878 | |||||||||||
Shares outstanding | 20,600,000 | 22,400,000 | 128,100,000 | 3,100,000 | 33,750,000 | 161,400,000 | |||||||||||||||||
Net asset value per share | $ | 50.51 | $ | 128.14 | $ | 11.72 | $ | 115.19 | $ | 49.41 | $ | 14.33 | |||||||||||
a | Securities on loan with market values of $60,172,575, $169,155,837, $160,437,731, $–, $116,797,452 and $–, respectively. See Note 5. |
b | Cost of foreign currencies: $1,307,091, $2,023,795, $879,487, $337,354, $– and $4,760,974, respectively. |
See notes to financial statements.
82 | 2007 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Statements of Operations (Unaudited)
iSHARES®, INC.
Six months ended February 28, 2007
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 | $ | 15,777,658 | $ | 40,253,994 | $ | 9,541,116 | $ | 87,948,339 | $ | 11,443,871 | $ | 5,339,224 | |||||||||||
Dividends from affiliated issuers (Note 2) | – | – | – | 1,284,241 | – | – | |||||||||||||||||
Interest from affiliated issuers (Note 2) | 15,601 | 170,726 | 9,885 | 562,694 | 47,830 | 23,580 | |||||||||||||||||
Securities lending income | 53,455 | – | – | 4,680,656 | 157,617 | – | |||||||||||||||||
Total investment income | 15,846,714 | 40,424,720 | 9,551,001 | 94,475,930 | 11,649,318 | 5,362,804 | |||||||||||||||||
EXPENSES | |||||||||||||||||||||||
Investment advisory fees | 1,929,536 | 9,353,296 | 2,764,546 | 51,386,005 | 2,958,817 | 1,309,872 | |||||||||||||||||
Foreign taxes (Note 1) | – | 110,842 | 1,367 | 293,974 | – | – | |||||||||||||||||
Total expenses | 1,929,536 | 9,464,138 | 2,765,913 | 51,679,979 | 2,958,817 | 1,309,872 | |||||||||||||||||
Less investment advisory fees waived | – | – | – | (253,832 | ) | – | – | ||||||||||||||||
Net expenses | 1,929,536 | 9,464,138 | 2,765,913 | 51,426,147 | 2,958,817 | 1,309,872 | |||||||||||||||||
Net investment income | 13,917,178 | 30,960,582 | 6,785,088 | 43,049,783 | 8,690,501 | 4,052,932 | |||||||||||||||||
NET REALIZED AND | |||||||||||||||||||||||
Net realized gain (loss) from: | |||||||||||||||||||||||
Investments in unaffiliated issuers | (2,285,842 | ) | 25,814,635 | (9,690,976 | ) | (32,864,625 | ) | (4,781,426 | ) | 6,164,716 | |||||||||||||
Investments in affiliated issuers (Note 2) | – | – | – | 42,475,138 | – | – | |||||||||||||||||
In-kind redemptions | 59,898,854 | – | 54,152,024 | 1,079,506,510 | 38,929,428 | – | |||||||||||||||||
Foreign currency transactions | 72,252 | (254,189 | ) | (172,002 | ) | 670,670 | (5,806 | ) | 149,540 | ||||||||||||||
Net realized gain | 57,685,264 | 25,560,446 | 44,289,046 | 1,089,787,693 | 34,142,196 | 6,314,256 | |||||||||||||||||
Net change in unrealized appreciation (depreciation) on: | |||||||||||||||||||||||
Investments | 56,789,490 | 425,893,023 | (10,391,386 | ) | 837,228,621 | 98,811,441 | 112,346,885 | ||||||||||||||||
Translation of assets and liabilities in foreign currencies | (16,734 | ) | 6,065 | (20,814 | ) | (408,480 | ) | (375 | ) | 17 | |||||||||||||
Net change in unrealized appreciation (depreciation) | 56,772,756 | 425,899,088 | (10,412,200 | ) | 836,820,141 | 98,811,066 | 112,346,902 | ||||||||||||||||
Net realized and unrealized gain | 114,458,020 | 451,459,534 | 33,876,846 | 1,926,607,834 | 132,953,262 | 118,661,158 | |||||||||||||||||
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS | $ | 128,375,198 | $ | 482,420,116 | $ | 40,661,934 | $ | 1,969,657,617 | $ | 141,643,763 | $ | 122,714,090 | |||||||||||
a | Net of foreign withholding tax of $518,238, $6,293,201, $1,567,547, $8,114,915, $– and $–, respectively. |
See notes to financial statements.
FINANCIAL STATEMENTS | 83 |
Table of Contents
Statements of Operations (Unaudited) (Continued)
iSHARES®, INC.
Six months ended February 28, 2007
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 | $ | 6,866,166 | $ | 40,803,269 | $ | 7,724,917 | $ | 4,442,123 | $ | 22,282,064 | $ | 1,208,408 | ||||||||||||
Interest from affiliated issuers (Note 2) | 28,126 | 56,472 | 40,604 | 4,008 | 53,542 | 80,692 | ||||||||||||||||||
Securities lending income | 458,551 | 177,855 | 131,562 | – | 407,778 | – | ||||||||||||||||||
Total investment income | 7,352,843 | 41,037,596 | 7,897,083 | 4,446,131 | 22,743,384 | 1,289,100 | ||||||||||||||||||
EXPENSES | ||||||||||||||||||||||||
Investment advisory fees | 2,759,008 | 5,905,917 | 2,446,751 | 1,159,414 | 5,500,273 | 6,928,885 | ||||||||||||||||||
Foreign taxes (Note 1) | – | – | – | – | 96 | – | ||||||||||||||||||
Total expenses | 2,759,008 | 5,905,917 | 2,446,751 | 1,159,414 | 5,500,369 | 6,928,885 | ||||||||||||||||||
Net investment income (loss) | 4,593,835 | 35,131,679 | 5,450,332 | 3,286,717 | 17,243,015 | (5,639,785 | ) | |||||||||||||||||
NET REALIZED AND | ||||||||||||||||||||||||
Net realized gain (loss) from: | ||||||||||||||||||||||||
Investments in unaffiliated issuers | (2,011,944 | ) | (4,474,398 | ) | (1,654,265 | ) | (1,828,721 | ) | 9,278,373 | (8,616,332 | ) | |||||||||||||
In-kind redemptions | 124,560,064 | 18,669,017 | 61,450,794 | 11,763,327 | – | – | ||||||||||||||||||
Foreign currency transactions | (34,260 | ) | 263,014 | 25,030 | (22,968 | ) | 35,941 | (108,084 | ) | |||||||||||||||
Net realized gain (loss) | 122,513,860 | 14,457,633 | 59,821,559 | 9,911,638 | 9,314,314 | (8,724,416 | ) | |||||||||||||||||
Net change in unrealized appreciation | ||||||||||||||||||||||||
Investments | 61,248,827 | 357,848,578 | 162,179,367 | 53,303,216 | 101,729,889 | 312,390,625 | ||||||||||||||||||
Translation of assets and liabilities in foreign currencies | (21,863 | ) | (96,481 | ) | (18,855 | ) | 8,512 | (263,363 | ) | 126,431 | ||||||||||||||
Net change in unrealized appreciation (depreciation) | 61,226,964 | 357,752,097 | 162,160,512 | 53,311,728 | 101,466,526 | 312,517,056 | ||||||||||||||||||
Net realized and unrealized gain | 183,740,824 | 372,209,730 | 221,982,071 | 63,223,366 | 110,780,840 | 303,792,640 | ||||||||||||||||||
NET INCREASE IN NET | $ | 188,334,659 | $ | 407,341,409 | $ | 227,432,403 | $ | 66,510,083 | $ | 128,023,855 | $ | 298,152,855 | ||||||||||||
a Net of foreign withholding tax of $–, $1,242,785, $–, $–, $4,365,200 and $268,356, respectively.
See notes to financial statements.
84 | 2007 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Statements of Changes in Net Assets
iSHARES®, INC.
iShares MSCI Australia Index Fund | iShares MSCI Brazil Index Fund | iShares MSCI Canada Index Fund | ||||||||||||||||||||||
Six months ended February 28, 2007 (Unaudited) | Year ended August 31, 2006 | Six months ended February 28, 2007 (Unaudited) | Year ended August 31, 2006 | Six months ended February 28, 2007 (Unaudited) | Year ended August 31, 2006 | |||||||||||||||||||
INCREASE (DECREASE) IN NET ASSETS |
| |||||||||||||||||||||||
OPERATIONS: | ||||||||||||||||||||||||
Net investment income | $ | 13,917,178 | $ | 20,156,434 | $ | 30,960,582 | $ | 43,261,595 | $ | 6,785,088 | $ | 9,118,778 | ||||||||||||
Net realized gain (loss) | 57,685,264 | 30,254,258 | 25,560,446 | (13,454,900 | ) | 44,289,046 | 88,304,312 | |||||||||||||||||
Net change in unrealized appreciation (depreciation) | 56,772,756 | 40,835,313 | 425,899,088 | 276,489,590 | (10,412,200 | ) | 43,740,392 | |||||||||||||||||
Net increase in net assets resulting from operations | 128,375,198 | 91,246,005 | 482,420,116 | 306,296,285 | 40,661,934 | 141,163,482 | ||||||||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS: |
| |||||||||||||||||||||||
From net investment income | (35,850,508 | ) | (16,397,050 | ) | (59,308,876 | ) | (20,219,476 | ) | (12,092,201 | ) | (4,108,502 | ) | ||||||||||||
Total distributions to shareholders | (35,850,508 | ) | (16,397,050 | ) | (59,308,876 | ) | (20,219,476 | ) | (12,092,201 | ) | (4,108,502 | ) | ||||||||||||
CAPITAL SHARE TRANSACTIONS: |
| |||||||||||||||||||||||
Proceeds from shares sold | 331,074,426 | 336,128,324 | – | 1,649,177,320 | 37,046,247 | 727,046,964 | ||||||||||||||||||
Cost of shares redeemed | (188,411,790 | ) | (93,925,541 | ) | (1,873,086 | ) | (19,244,643 | ) | (122,719,865 | ) | (183,241,984 | ) | ||||||||||||
Net increase (decrease) in net assets from capital share transactions | 142,662,636 | 242,202,783 | (1,873,086 | ) | 1,629,932,677 | (85,673,618 | ) | 543,804,980 | ||||||||||||||||
INCREASE (DECREASE) IN NET ASSETS | 235,187,326 | 317,051,738 | 421,238,154 | 1,916,009,486 | (57,103,885 | ) | 680,859,960 | |||||||||||||||||
NET ASSETS | ||||||||||||||||||||||||
Beginning of period | 686,407,006 | 369,355,268 | 2,468,294,924 | 552,285,438 | 1,101,160,735 | 420,300,775 | ||||||||||||||||||
End of period | $ | 921,594,332 | $ | 686,407,006 | $ | 2,889,533,078 | $ | 2,468,294,924 | $ | 1,044,056,850 | $ | 1,101,160,735 | ||||||||||||
Undistributed (distributions in excess of) net investment income included in net assets at end of period | $ | (8,620,956 | ) | $ | 13,312,374 | $ | 6,732,702 | $ | 35,080,996 | $ | 1,852,400 | $ | 7,159,513 | |||||||||||
SHARES ISSUED AND REDEEMED |
| |||||||||||||||||||||||
Shares sold | 14,000,000 | 16,200,000 | – | 44,050,000 | 1,500,000 | 31,900,000 | ||||||||||||||||||
Shares redeemed | (8,200,000 | ) | (4,600,000 | ) | (50,000 | ) | (500,000 | ) | (5,000,000 | ) | (8,000,000 | ) | ||||||||||||
Net increase (decrease) in shares outstanding | 5,800,000 | 11,600,000 | (50,000 | ) | 43,550,000 | (3,500,000 | ) | 23,900,000 | ||||||||||||||||
See notes to financial statements.
FINANCIAL STATEMENTS | 85 |
Table of Contents
Statements of Changes in Net Assets (Continued)
iSHARES®, INC.
iShares MSCI Emerging Markets Index Fund | iShares MSCI Hong Kong Index Fund | iShares MSCI Malaysia Index Fund | ||||||||||||||||||||||
Six months ended February 28, 2007 (Unaudited) | Year ended August 31, 2006 | Six months ended February 28, 2007 (Unaudited) | Year ended August 31, 2006 | Six months ended February 28, 2007 (Unaudited) | Year ended August 31, 2006 | |||||||||||||||||||
INCREASE (DECREASE) IN NET ASSETS |
| |||||||||||||||||||||||
OPERATIONS: | ||||||||||||||||||||||||
Net investment income | $ | 43,049,783 | $ | 192,922,376 | $ | 8,690,501 | $ | 21,409,153 | $ | 4,052,932 | $ | 14,348,448 | ||||||||||||
Net realized gain (loss) | 1,089,787,693 | 1,340,943,115 | 34,142,196 | 45,228,751 | 6,314,256 | (17,343,416 | ) | |||||||||||||||||
Net change in unrealized appreciation (depreciation) | 836,820,141 | 667,014,214 | 98,811,066 | 17,114,750 | 112,346,902 | 40,249,132 | ||||||||||||||||||
Net increase in net assets resulting from operations | 1,969,657,617 | 2,200,879,705 | 141,643,763 | 83,752,654 | 122,714,090 | 37,254,164 | ||||||||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS: |
| |||||||||||||||||||||||
From net investment income | (209,458,860 | ) | (113,762,995 | ) | (25,623,625 | ) | (17,872,090 | ) | (11,518,123 | ) | (14,088,338 | ) | ||||||||||||
Total distributions to shareholders | (209,458,860 | ) | (113,762,995 | ) | (25,623,625 | ) | (17,872,090 | ) | (11,518,123 | ) | (14,088,338 | ) | ||||||||||||
CAPITAL SHARE TRANSACTIONS: |
| |||||||||||||||||||||||
Proceeds from shares sold | 3,390,992,123 | 6,532,568,942 | 480,715,455 | 385,690,233 | 541,143,365 | 210,424,492 | ||||||||||||||||||
Cost of shares redeemed | (3,002,204,950 | ) | (3,651,163,544 | ) | (119,851,515 | ) | (206,843,656 | ) | (55,877,969 | ) | (246,831,356 | ) | ||||||||||||
Net increase (decrease) in net assets from capital share transactions | 388,787,173 | 2,881,405,398 | 360,863,940 | 178,846,577 | 485,265,396 | (36,406,864 | ) | |||||||||||||||||
INCREASE (DECREASE) IN NET ASSETS | 2,148,985,930 | 4,968,522,108 | 476,884,078 | 244,727,141 | 596,461,363 | (13,241,038 | ) | |||||||||||||||||
NET ASSETS | ||||||||||||||||||||||||
Beginning of period | 11,969,380,158 | 7,000,858,050 | 882,711,979 | 637,984,838 | 374,333,942 | 387,574,980 | ||||||||||||||||||
End of period | $ | 14,118,366,088 | $ | 11,969,380,158 | $ | 1,359,596,057 | $ | 882,711,979 | $ | 970,795,305 | $ | 374,333,942 | ||||||||||||
Undistributed (distributions in excess of) net investment income included in net assets at end of period | $ | (9,985,998 | ) | $ | 156,423,079 | $ | (2,705,876 | ) | $ | 14,227,248 | $ | (1,857,096 | ) | $ | 5,608,095 | |||||||||
SHARES ISSUED AND REDEEMED |
| |||||||||||||||||||||||
Shares sold | 31,650,000 | 71,850,000 | 31,050,000 | 28,575,000 | 54,150,000 | 27,900,000 | ||||||||||||||||||
Shares redeemed | (27,900,000 | ) | (38,850,000 | ) | (7,650,000 | ) | (15,450,000 | ) | (6,900,000 | ) | (33,525,000 | ) | ||||||||||||
Net increase (decrease) in shares outstanding | 3,750,000 | 33,000,000 | 23,400,000 | 13,125,000 | 47,250,000 | (5,625,000 | ) | |||||||||||||||||
See notes to financial statements.
86 | 2007 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Statements of Changes in Net Assets (Continued)
iSHARES®, INC.
iShares MSCI Mexico Index Fund | iShares MSCI Pacific ex-Japan Index Fund | iShares MSCI Singapore Index Fund | ||||||||||||||||||||||
Six months ended February 28, 2007 (Unaudited) | Year ended August 31, 2006 | Six months ended February 28, 2007 (Unaudited) | Year ended August 31, 2006 | Six months ended February 28, 2007 (Unaudited) | Year ended August 31, 2006 | |||||||||||||||||||
INCREASE (DECREASE) IN NET ASSETS |
| |||||||||||||||||||||||
OPERATIONS: | ||||||||||||||||||||||||
Net investment income | $ | 4,593,835 | $ | 9,375,502 | $ | 35,131,679 | $ | 67,346,500 | $ | 5,450,332 | $ | 22,841,028 | ||||||||||||
Net realized gain | 122,513,860 | 128,613,827 | 14,457,633 | 71,241,794 | 59,821,559 | 31,826,561 | ||||||||||||||||||
Net change in unrealized appreciation (depreciation) | 61,226,964 | (14,767,360 | ) | 357,752,097 | 163,112,452 | 162,160,512 | 28,410,392 | |||||||||||||||||
Net increase in net assets resulting from operations | 188,334,659 | 123,221,969 | 407,341,409 | 301,700,746 | 227,432,403 | 83,077,981 | ||||||||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS: |
| |||||||||||||||||||||||
From net investment income | (11,694,155 | ) | (6,377,728 | ) | (101,866,512 | ) | (62,872,256 | ) | (29,331,787 | ) | (14,378,298 | ) | ||||||||||||
Total distributions to shareholders | (11,694,155 | ) | (6,377,728 | ) | (101,866,512 | ) | (62,872,256 | ) | (29,331,787 | ) | (14,378,298 | ) | ||||||||||||
CAPITAL SHARE TRANSACTIONS: |
| |||||||||||||||||||||||
Proceeds from shares sold | 806,959,257 | 939,038,789 | 506,566,059 | 508,919,684 | 867,493,068 | 245,347,020 | ||||||||||||||||||
Cost of shares redeemed | (707,145,887 | ) | (547,333,327 | ) | (36,542,402 | ) | (174,924,729 | ) | (139,195,629 | ) | (80,563,776 | ) | ||||||||||||
Net increase in net assets from capital share transactions | 99,813,370 | 391,705,462 | 470,023,657 | 333,994,955 | 728,297,439 | 164,783,244 | ||||||||||||||||||
INCREASE IN NET ASSETS | 276,453,874 | 508,549,703 | 775,498,554 | 572,823,445 | 926,398,055 | 233,482,927 | ||||||||||||||||||
NET ASSETS | ||||||||||||||||||||||||
Beginning of period | 764,107,152 | 255,557,449 | 2,094,930,922 | 1,522,107,477 | 574,619,763 | 341,136,836 | ||||||||||||||||||
End of period | $ | 1,040,561,026 | $ | 764,107,152 | $ | 2,870,429,476 | $ | 2,094,930,922 | $ | 1,501,017,818 | $ | 574,619,763 | ||||||||||||
Undistributed (distributions in excess of) net investment income included in net assets at end of period | $ | (1,131,513 | ) | $ | 5,968,807 | $ | (29,477,729 | ) | $ | 37,257,104 | $ | (4,987,676 | ) | $ | 18,893,779 | |||||||||
SHARES ISSUED AND REDEEMED |
| |||||||||||||||||||||||
Shares sold | 17,000,000 | 24,400,000 | 4,000,000 | 4,800,000 | 77,300,000 | 28,700,000 | ||||||||||||||||||
Shares redeemed | (14,900,000 | ) | (14,700,000 | ) | (300,000 | ) | (1,700,000 | ) | (12,300,000 | ) | (9,500,000 | ) | ||||||||||||
Net increase in shares outstanding | 2,100,000 | 9,700,000 | 3,700,000 | 3,100,000 | 65,000,000 | 19,200,000 | ||||||||||||||||||
See notes to financial statements.
FINANCIAL STATEMENTS | 87 |
Table of Contents
Statements of Changes in Net Assets (Continued)
iSHARES®, INC.
iShares MSCI South Africa Index Fund | iShares MSCI South Korea Index Fund | iShares MSCI Taiwan Index Fund | ||||||||||||||||||||||
Six months ended February 28, 2007 (Unaudited) | Year ended August 31, 2006 | Six months ended February 28, 2007 (Unaudited) | Year ended August 31, 2006 | Six months ended February 28, 2007 (Unaudited) | Year ended August 31, 2006 | |||||||||||||||||||
INCREASE (DECREASE) IN NET ASSETS |
| |||||||||||||||||||||||
OPERATIONS: | ||||||||||||||||||||||||
Net investment income (loss) | $ | 3,286,717 | $ | 8,177,584 | $ | 17,243,015 | $ | 10,350,623 | $ | (5,639,785 | ) | $ | 45,072,947 | |||||||||||
Net realized gain (loss) | 9,911,638 | 99,303,479 | 9,314,314 | (54,701,832 | ) | (8,724,416 | ) | (76,184,152 | ) | |||||||||||||||
Net change in unrealized appreciation (depreciation) | 53,311,728 | (95,009,170 | ) | 101,466,526 | 299,045,492 | 312,517,056 | 123,093,505 | |||||||||||||||||
Net increase in net assets resulting from operations | 66,510,083 | 12,471,893 | 128,023,855 | 254,694,283 | 298,152,855 | 91,982,300 | ||||||||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS: |
| |||||||||||||||||||||||
From net investment income | (9,144,852 | ) | (4,618,354 | ) | (10,954,387 | ) | (7,841,332 | ) | (44,460,389 | ) | (16,050,567 | ) | ||||||||||||
Total distributions to shareholders | (9,144,852 | ) | (4,618,354 | ) | (10,954,387 | ) | (7,841,332 | ) | (44,460,389 | ) | (16,050,567 | ) | ||||||||||||
CAPITAL SHARE TRANSACTIONS: |
| |||||||||||||||||||||||
Proceeds from shares sold | 70,402,175 | 395,411,010 | 93,568,219 | 1,159,560,093 | 432,036,989 | 1,391,773,216 | ||||||||||||||||||
Cost of shares redeemed | (68,565,161 | ) | (258,896,840 | ) | (164,497,904 | ) | (483,534,641 | ) | (266,099,142 | ) | (326,594,755 | ) | ||||||||||||
Net increase (decrease) in net assets from capital share transactions | 1,837,014 | 136,514,170 | (70,929,685 | ) | 676,025,452 | 165,937,847 | 1,065,178,461 | |||||||||||||||||
INCREASE IN NET ASSETS | 59,202,245 | 144,367,709 | 46,139,783 | 922,878,403 | 419,630,313 | 1,141,110,194 | ||||||||||||||||||
NET ASSETS | ||||||||||||||||||||||||
Beginning of period | 297,897,868 | 153,530,159 | 1,621,333,688 | 698,455,285 | 1,893,750,565 | 752,640,371 | ||||||||||||||||||
End of period | $ | 357,100,113 | $ | 297,897,868 | $ | 1,667,473,471 | $ | 1,621,333,688 | $ | 2,313,380,878 | $ | 1,893,750,565 | ||||||||||||
Undistributed net investment income (accumulated net investment loss) included in net assets at end of period | $ | 385,000 | $ | 6,243,135 | $ | 17,243,015 | $ | 10,954,387 | $ | (5,639,785 | ) | $ | 44,460,389 | |||||||||||
SHARES ISSUED AND REDEEMED |
| |||||||||||||||||||||||
Shares sold | 650,000 | 3,650,000 | 1,950,000 | 26,100,000 | 30,300,000 | 111,950,000 | ||||||||||||||||||
Shares redeemed | (600,000 | ) | (2,450,000 | ) | (3,450,000 | ) | (10,950,000 | ) | (19,550,000 | ) | (26,350,000 | ) | ||||||||||||
Net increase (decrease) in shares outstanding | 50,000 | 1,200,000 | (1,500,000 | ) | 15,150,000 | 10,750,000 | 85,600,000 | |||||||||||||||||
See notes to financial statements.
88 | 2007 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
iSHARES®, INC.
(For a share outstanding throughout each period)
iShares MSCI Australia Index Fund | ||||||||||||||||||||||||
Six months ended Feb. 28, 2007 (Unaudited) | Year ended Aug. 31, 2006 | Year ended Aug. 31, 2005 | Year ended Aug. 31, 2004 | Year ended Aug. 31, 2003 | Year ended Aug. 31, 2002 | |||||||||||||||||||
Net asset value, beginning of period | $ | 21.59 | $ | 18.28 | $ | 13.56 | $ | 11.22 | $ | 9.36 | $ | 9.24 | ||||||||||||
Income from investment operations: | ||||||||||||||||||||||||
Net investment incomea | 0.43 | 0.75 | 0.70 | 0.45 | 0.32 | 0.23 | ||||||||||||||||||
Net realized and unrealized gain (loss)b | 3.59 | 3.23 | 4.60 | 2.32 | 1.81 | (0.07 | ) | |||||||||||||||||
Total from investment operations | 4.02 | 3.98 | 5.30 | 2.77 | 2.13 | 0.16 | ||||||||||||||||||
Less distributions from: | ||||||||||||||||||||||||
Net investment income | (1.10 | ) | (0.67 | ) | (0.58 | ) | (0.43 | ) | (0.27 | ) | (0.04 | ) | ||||||||||||
Total distributions | (1.10 | ) | (0.67 | ) | (0.58 | ) | (0.43 | ) | (0.27 | ) | (0.04 | ) | ||||||||||||
Net asset value, end of period | $ | 24.51 | $ | 21.59 | $ | 18.28 | $ | 13.56 | $ | 11.22 | $ | 9.36 | ||||||||||||
Total return | 18.89 | %c | 22.35 | % | 39.58 | % | 24.95 | % | 23.33 | % | 1.74 | % | ||||||||||||
Ratios/Supplemental data: | ||||||||||||||||||||||||
Net assets, end of period (000s) | $ | 921,594 | $ | 686,407 | $ | 369,355 | $ | 178,998 | $ | 87,541 | $ | 76,731 | ||||||||||||
Ratio of expenses to average net assetsd | 0.52 | % | 0.54 | % | 0.57 | % | 0.79 | % | 0.84 | % | 0.84 | % | ||||||||||||
Ratio of net investment income to average net assetsd | 3.77 | % | 3.75 | % | 4.13 | % | 3.37 | % | 3.21 | % | 2.47 | % | ||||||||||||
Portfolio turnover ratee | 4 | % | 7 | % | 17 | % | 9 | % | 8 | % | 5 | % |
a | Based on average shares outstanding throughout each period. |
b | The amounts reported may not accord with the change in aggregate gains and losses in securities due to the timing of capital share transactions. |
c | Not annualized. |
d | Annualized for periods of less than one year. |
e | Portfolio turnover rates exclude portfolio securities received or delivered as a result of processing capital share transactions in Creation Units. |
See notes to financial statements.
FINANCIAL HIGHLIGHTS | 89 |
Table of Contents
Financial Highlights (Continued)
iSHARES®, INC.
(For a share outstanding throughout each period)
iShares MSCI Brazil Index Fund | ||||||||||||||||||||||||
Six months ended Feb. 28, 2007 (Unaudited) | Year ended Aug. 31, 2006 | Year ended Aug. 31, 2005 | Year ended Aug. 31, 2004 | Year ended Aug. 31, 2003 | Year ended Aug. 31, 2002 | |||||||||||||||||||
Net asset value, beginning of period | $ | 39.09 | $ | 28.18 | $ | 16.96 | $ | 12.19 | $ | 8.30 | $ | 11.20 | ||||||||||||
Income from investment operations: | ||||||||||||||||||||||||
Net investment incomea | 0.49 | 1.00 | 0.89 | 0.55 | 0.32 | 0.38 | ||||||||||||||||||
Net realized and unrealized gain (loss)b | 7.15 | 10.49 | 10.79 | 4.49 | 3.68 | (3.28 | ) | |||||||||||||||||
Total from investment operations | 7.64 | 11.49 | 11.68 | 5.04 | 4.00 | (2.90 | ) | |||||||||||||||||
Less distributions from: | ||||||||||||||||||||||||
Net investment income | (0.94 | ) | (0.58 | ) | (0.46 | ) | (0.27 | ) | (0.11 | ) | – | |||||||||||||
Total distributions | (0.94 | ) | (0.58 | ) | (0.46 | ) | (0.27 | ) | (0.11 | ) | – | |||||||||||||
Net asset value, end of period | $ | 45.79 | $ | 39.09 | $ | 28.18 | $ | 16.96 | $ | 12.19 | $ | 8.30 | ||||||||||||
Total return | 19.57 | %c | 41.13 | % | 69.72 | % | 41.42 | % | 48.85 | % | (25.89 | )% | ||||||||||||
Ratios/Supplemental data: | ||||||||||||||||||||||||
Net assets, end of period (000s) | $ | 2,889,533 | $ | 2,468,295 | $ | 552,285 | $ | 209,504 | $ | 103,035 | $ | 83,788 | ||||||||||||
Ratio of expenses to average net assetsd | 0.69 | % | 0.70 | % | 0.74 | % | 0.96 | % | 0.99 | % | 0.99 | % | ||||||||||||
Ratio of expenses to average net assets exclusive of foreign taxesd | 0.68 | % | n/a | n/a | n/a | n/a | n/a | |||||||||||||||||
Ratio of net investment income to average net assetsd | 2.27 | % | 2.65 | % | 3.94 | % | 3.59 | % | 3.59 | % | 3.50 | % | ||||||||||||
Portfolio turnover ratee | 4 | % | 15 | % | 48 | % | 106 | % | 85 | % | 103 | % |
a | Based on average shares outstanding throughout each period. |
b | The amounts reported may not accord with the change in aggregate gains and losses in securities due to the timing of capital share transactions. |
c | Not annualized. |
d | Annualized for periods of less than one year. |
e | Portfolio turnover rates include portfolio transactions that are executed as a result of the Fund processing capital share transactions in Creation Units solely for cash in U.S. dollars. Excluding such transactions, the portfolio turnover rate for the six months ended February 28, 2007 and the years ended August 31, 2006 and August 31, 2005 would have been 4%, 13% and 9%, respectively. See Note 4. |
See notes to financial statements.
90 | 2007 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Financial Highlights (Continued)
iSHARES®, INC.
(For a share outstanding throughout each period)
iShares MSCI Canada Index Fund | ||||||||||||||||||||||||
Six months ended Feb. 28, 2007 (Unaudited) | Year ended Aug. 31, 2006 | Year ended Aug. 31, 2005 | Year ended Aug. 31, 2004 | Year ended Aug. 31, 2003 | Year ended Aug. 31, 2002 | |||||||||||||||||||
Net asset value, beginning of period | $ | 24.69 | $ | 20.30 | $ | 14.33 | $ | 12.25 | $ | 9.49 | $ | 10.70 | ||||||||||||
Income from investment operations: | ||||||||||||||||||||||||
Net investment incomea | 0.16 | 0.25 | 0.17 | 0.11 | 0.10 | 0.07 | ||||||||||||||||||
Net realized and unrealized gain (loss)b | 0.83 | 4.29 | 6.00 | 2.17 | 2.69 | (1.27 | ) | |||||||||||||||||
Total from investment operations | 0.99 | 4.54 | 6.17 | 2.28 | 2.79 | (1.20 | ) | |||||||||||||||||
Less distributions from: | ||||||||||||||||||||||||
Net investment income | (0.28 | ) | (0.15 | ) | (0.20 | ) | (0.20 | ) | (0.03 | ) | (0.01 | ) | ||||||||||||
Total distributions | (0.28 | ) | (0.15 | ) | (0.20 | ) | (0.20 | ) | (0.03 | ) | (0.01 | ) | ||||||||||||
Net asset value, end of period | $ | 25.40 | $ | 24.69 | $ | 20.30 | $ | 14.33 | $ | 12.25 | $ | 9.49 | ||||||||||||
Total return | 4.03 | %c | 22.46 | % | 43.35 | % | 18.70 | % | 29.47 | % | (11.23 | )% | ||||||||||||
Ratios/Supplemental data: | ||||||||||||||||||||||||
Net assets, end of period (000s) | $ | 1,044,057 | $ | 1,101,161 | $ | 420,301 | $ | 325,298 | $ | 503,407 | $ | 66,420 | ||||||||||||
Ratio of expenses to average net assetsd | 0.52 | % | 0.54 | % | 0.57 | % | 0.70 | %e | 0.84 | % | 0.84 | % | ||||||||||||
Ratio of expenses to average net assets exclusive of foreign taxesd | 0.52 | % | n/a | n/a | n/a | n/a | n/a | |||||||||||||||||
Ratio of net investment income to average net assetsd | 1.28 | % | 1.09 | % | 1.00 | % | 0.81 | % | 0.98 | % | 0.70 | % | ||||||||||||
Portfolio turnover ratef | 5 | % | 20 | % | 9 | % | 10 | % | 10 | % | 5 | % |
a | Based on average shares outstanding throughout each period. |
b | The amounts reported may not accord with the change in aggregate gains and losses in securities due to the timing of capital share transactions. |
c | Not annualized. |
d | Annualized for periods of less than one year. |
e | Ratio of expenses to average net assets prior to voluntary reimbursed distribution fees for the year ended August 31, 2004 was 0.80%. |
f | Portfolio turnover rates exclude portfolio securities received or delivered as a result of processing capital share transactions in Creation Units. |
See notes to financial statements.
FINANCIAL HIGHLIGHTS | 91 |
Table of Contents
Financial Highlights (Continued)
iSHARES®, INC.
(For a share outstanding throughout each period)
iShares MSCI Emerging Markets Index Fund | ||||||||||||||||||||
Six months ended Feb. 28, 2007 (Unaudited) | Year ended Aug. 31, 2006 | 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 | $ | 97.43 | $ | 77.92 | $ | 53.96 | $ | 45.13 | $ | 33.75 | ||||||||||
Income from investment operations: | ||||||||||||||||||||
Net investment incomec | 0.33 | 1.65 | 1.65 | 1.13 | 0.26 | |||||||||||||||
Net realized and unrealized gaind | 15.33 | 18.85 | 24.72 | 7.97 | 11.12 | |||||||||||||||
Total from investment operations | 15.66 | 20.50 | 26.37 | 9.10 | 11.38 | |||||||||||||||
Less distributions from: | ||||||||||||||||||||
Net investment income | (1.57 | ) | (0.99 | ) | (2.41 | ) | (0.27 | ) | – | |||||||||||
Total distributions | (1.57 | ) | (0.99 | ) | (2.41 | ) | (0.27 | ) | – | |||||||||||
Net asset value, end of period | $ | 111.52 | $ | 97.43 | $ | 77.92 | $ | 53.96 | $ | 45.13 | ||||||||||
Total return | 16.09 | %e | 26.44 | % | 46.17 | % | 20.21 | % | 33.72 | %e | ||||||||||
Ratios/Supplemental data: | ||||||||||||||||||||
Net assets, end of period (000s) | $ | 14,118,366 | $ | 11,969,380 | $ | 7,000,858 | $ | 1,958,596 | $ | 297,846 | ||||||||||
Ratio of expenses to average net assets prior to waived feesf | 0.75 | % | 0.77 | % | 0.78 | % | 0.77 | % | 0.78 | % | ||||||||||
Ratio of expenses to average net assets after waived feesf | 0.75 | % | 0.77 | % | 0.77 | % | 0.76 | % | 0.78 | % | ||||||||||
Ratio of expenses to average net assets after waived fees and exclusive of foreign taxesf | 0.74 | % | 0.75 | % | 0.74 | % | 0.74 | % | 0.72 | % | ||||||||||
Ratio of net investment income to average net assetsf | 0.63 | % | 1.77 | % | 2.40 | % | 2.10 | % | 1.58 | % | ||||||||||
Portfolio turnover rateg | 4 | % | 12 | % | 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 | The amounts reported may not accord with the change in aggregate gains and losses in securities due to the timing of capital share transactions. |
e | Not annualized. |
f | Annualized for periods of less than one year. |
g | Portfolio turnover rates exclude portfolio securities received or delivered as a result of processing capital share transactions in Creation Units. |
See notes to financial statements.
92 | 2007 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Financial Highlights (Continued)
iSHARES®, INC.
(For a share outstanding throughout each period)
iShares MSCI Hong Kong Index Fund | ||||||||||||||||||||||||
Six months ended Feb. 28, 2007 (Unaudited) | Year ended Aug. 31, 2006 | Year ended Aug. 31, 2005 | Year ended Aug. 31, 2004 | Year ended Aug. 31, 2003 | Year ended Aug. 31, 2002 | |||||||||||||||||||
Net asset value, beginning of period | $ | 14.20 | $ | 13.01 | $ | 10.91 | $ | 9.03 | $ | 7.99 | $ | 8.93 | ||||||||||||
Income from investment operations: | ||||||||||||||||||||||||
Net investment incomea | 0.12 | 0.38 | 0.33 | 0.28 | 0.23 | 0.23 | ||||||||||||||||||
Net realized and unrealized gain (loss)b | 1.88 | 1.17 | 2.04 | 1.75 | 0.95 | (1.11 | ) | |||||||||||||||||
Total from investment operations | 2.00 | 1.55 | 2.37 | 2.03 | 1.18 | (0.88 | ) | |||||||||||||||||
Less distributions from: | ||||||||||||||||||||||||
Net investment income | (0.31 | ) | (0.36 | ) | (0.27 | ) | (0.15 | ) | (0.14 | ) | (0.06 | ) | ||||||||||||
Total distributions | (0.31 | ) | (0.36 | ) | (0.27 | ) | (0.15 | ) | (0.14 | ) | (0.06 | ) | ||||||||||||
Net asset value, end of period | $ | 15.89 | $ | 14.20 | $ | 13.01 | $ | 10.91 | $ | 9.03 | $ | 7.99 | ||||||||||||
Total return | 14.13 | %c | 12.20 | % | 21.96 | % | 22.69 | % | 15.14 | % | (9.94 | )% | ||||||||||||
Ratios/Supplemental data: | ||||||||||||||||||||||||
Net assets, end of period (000s) | $ | 1,359,596 | $ | 882,712 | $ | 637,985 | $ | 449,923 | $ | 250,627 | $ | 99,502 | ||||||||||||
Ratio of expenses to average net assetsd | 0.52 | % | 0.54 | % | 0.57 | % | 0.80 | % | 0.84 | % | 0.84 | % | ||||||||||||
Ratio of net investment income to average net assetsd | 1.53 | % | 2.87 | % | 2.75 | % | 2.78 | % | 3.06 | % | 2.56 | % | ||||||||||||
Portfolio turnover ratee | 4 | % | 10 | % | 6 | % | 5 | % | 10 | % | 15 | % |
a | Based on average shares outstanding throughout each period. |
b | The amounts reported may not accord with the change in aggregate gains and losses in securities due to the timing of capital share transactions. |
c | Not annualized. |
d | Annualized for periods of less than one year. |
e | Portfolio turnover rates exclude portfolio securities received or delivered as a result of processing capital share transactions in Creation Units. |
See notes to financial statements.
FINANCIAL HIGHLIGHTS | 93 |
Table of Contents
Financial Highlights (Continued)
iSHARES®, INC.
(For a share outstanding throughout each period)
iShares MSCI Malaysia Index Fund | ||||||||||||||||||||||||
Six months ended Feb. 28, 2007 (Unaudited) | Year ended Aug. 31, 2006 | Year ended Aug. 31, 2005 | Year ended Aug. 31, 2004 | Year ended Aug. 31, 2003 | Year ended Aug. 31, 2002 | |||||||||||||||||||
Net asset value, beginning of period | $ | 7.75 | $ | 7.19 | $ | 6.54 | $ | 5.99 | $ | 5.68 | $ | 5.11 | ||||||||||||
Income from investment operations: | ||||||||||||||||||||||||
Net investment incomea | 0.07 | 0.26 | 0.20 | 0.13 | 0.10 | 0.08 | ||||||||||||||||||
Net realized and unrealized gainb | 2.54 | 0.59 | 0.61 | 0.52 | 0.30 | 0.52 | ||||||||||||||||||
Total from investment operations | 2.61 | 0.85 | 0.81 | 0.65 | 0.40 | 0.60 | ||||||||||||||||||
Less distributions from: | ||||||||||||||||||||||||
Net investment income | (0.20 | ) | (0.29 | ) | (0.16 | ) | (0.10 | ) | (0.09 | ) | (0.03 | ) | ||||||||||||
Total distributions | (0.20 | ) | (0.29 | ) | (0.16 | ) | (0.10 | ) | (0.09 | ) | (0.03 | ) | ||||||||||||
Net asset value, end of period | $ | 10.16 | $ | 7.75 | $ | 7.19 | $ | 6.54 | $ | 5.99 | $ | 5.68 | ||||||||||||
Total return | 33.96 | %c | 12.35 | % | 12.39 | % | 11.01 | % | 7.39 | % | 11.82 | % | ||||||||||||
Ratios/Supplemental data: | ||||||||||||||||||||||||
Net assets, end of period (000s) | $ | 970,795 | $ | 374,334 | $ | 387,575 | $ | 224,218 | $ | 99,730 | $ | 93,262 | ||||||||||||
Ratio of expenses to average net assetsd | 0.52 | % | 0.54 | % | 0.57 | % | 0.79 | % | 0.84 | % | 0.84 | % | ||||||||||||
Ratio of net investment income to average net assetsd | 1.61 | % | 3.46 | % | 2.85 | % | 1.97 | % | 1.91 | % | 1.53 | % | ||||||||||||
Portfolio turnover ratee | 15 | % | 60 | % | 15 | % | 39 | % | 35 | % | 37 | % |
a | Based on average shares outstanding throughout each period. |
b | The amounts reported may not accord with the change in aggregate gains and losses in securities due to the timing of capital share transactions. |
c | Not annualized. |
d | Annualized for periods of less than one year. |
e | Portfolio turnover rates include portfolio transactions that are executed as a result of the Fund processing capital share transactions in Creation Units solely for cash in U.S. dollars. Excluding such transactions, the portfolio turnover rate for the six months ended February 28, 2007 and the years ended August 31, 2006 and August 31, 2005 would have been 3%, 9% and 9%, respectively. See Note 4. |
See notes to financial statements.
94 | 2007 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Financial Highlights (Continued)
iSHARES®, INC.
(For a share outstanding throughout each period)
iShares MSCI Mexico Index Fund | ||||||||||||||||||||||||
Six months ended Feb. 28, 2007 (Unaudited) | Year ended Aug. 31, 2006 | Year ended Aug. 31, 2005 | Year ended Aug. 31, 2004 | Year ended Aug. 31, 2003 | Year ended Aug. 31, 2002 | |||||||||||||||||||
Net asset value, beginning of period | $ | 41.30 | $ | 29.04 | $ | 19.35 | $ | 15.04 | $ | 13.65 | $ | 15.35 | ||||||||||||
Income from investment operations: | ||||||||||||||||||||||||
Net investment incomea | 0.21 | 0.76 | 0.42 | 0.26 | 0.19 | 0.32 | ||||||||||||||||||
Net realized and unrealized gain (loss)b | 9.46 | 11.98 | 9.55 | 4.26 | 1.72 | (1.95 | ) | |||||||||||||||||
Total from investment operations | 9.67 | 12.74 | 9.97 | 4.52 | 1.91 | (1.63 | ) | |||||||||||||||||
Less distributions from: | ||||||||||||||||||||||||
Net investment income | (0.46 | ) | (0.48 | ) | (0.28 | ) | (0.21 | ) | (0.52 | ) | (0.07 | ) | ||||||||||||
Total distributions | (0.46 | ) | (0.48 | ) | (0.28 | ) | (0.21 | ) | (0.52 | ) | (0.07 | ) | ||||||||||||
Net asset value, end of period | $ | 50.51 | $ | 41.30 | $ | 29.04 | $ | 19.35 | $ | 15.04 | $ | 13.65 | ||||||||||||
Total return | 23.43 | %c | 44.11 | % | 51.77 | % | 30.28 | % | 14.60 | % | (10.67 | )% | ||||||||||||
Ratios/Supplemental data: | ||||||||||||||||||||||||
Net assets, end of period (000s) | $ | 1,040,561 | $ | 764,107 | $ | 255,557 | $ | 129,623 | $ | 60,155 | $ | 70,994 | ||||||||||||
Ratio of expenses to average net assetsd | 0.52 | % | 0.54 | % | 0.57 | % | 0.78 | % | 0.84 | % | 0.84 | % | ||||||||||||
Ratio of net investment income to average net assetsd | 0.87 | % | 2.06 | % | 1.70 | % | 1.40 | % | 1.43 | % | 2.05 | % | ||||||||||||
Portfolio turnover ratee | 16 | % | 12 | % | 9 | % | 12 | % | 13 | % | 8 | % |
a | Based on average shares outstanding throughout each period. |
b | The amounts reported may not accord with the change in aggregate gains and losses in securities due to the timing of capital share transactions. |
c | Not annualized. |
d | Annualized for periods of less than one year. |
e | Portfolio turnover rates exclude portfolio securities received or delivered as a result of processing capital share transactions in Creation Units. |
See notes to financial statements.
FINANCIAL HIGHLIGHTS | 95 |
Table of Contents
Financial Highlights (Continued)
iSHARES®, INC.
(For a share outstanding throughout each period)
iShares MSCI Pacific ex-Japan Index Fund | ||||||||||||||||||||||||
Six months ended Feb. 28, 2007 (Unaudited) | Year ended Aug. 31, 2006 | 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 | $ | 112.03 | $ | 97.57 | $ | 75.73 | $ | 62.03 | $ | 52.51 | $ | 50.03 | ||||||||||||
Income from investment operations: | ||||||||||||||||||||||||
Net investment incomeb | 1.79 | 3.83 | 3.70 | 2.68 | 1.87 | 1.35 | ||||||||||||||||||
Net realized and unrealized gainc | 19.52 | 14.33 | 21.15 | 12.53 | 8.53 | 1.40 | ||||||||||||||||||
Total from investment operations | 21.31 | 18.16 | 24.85 | 15.21 | 10.40 | 2.75 | ||||||||||||||||||
Less distributions from: | ||||||||||||||||||||||||
Net investment income | (5.20 | ) | (3.70 | ) | (3.01 | ) | (1.51 | ) | (0.88 | ) | (0.27 | ) | ||||||||||||
Total distributions | (5.20 | ) | (3.70 | ) | (3.01 | ) | (1.51 | ) | (0.88 | ) | (0.27 | ) | ||||||||||||
Net asset value, end of period | $ | 128.14 | $ | 112.03 | $ | 97.57 | $ | 75.73 | $ | 62.03 | $ | 52.51 | ||||||||||||
Total return | 19.23 | %d | 19.17 | % | 33.27 | % | 24.74 | % | 20.15 | % | 5.51 | %d | ||||||||||||
Ratios/Supplemental data: | ||||||||||||||||||||||||
Net assets, end of period (000s) | $ | 2,870,429 | $ | 2,094,931 | $ | 1,522,107 | $ | 651,250 | $ | 223,298 | $ | 105,029 | ||||||||||||
Ratio of expenses to average net assetse | 0.50 | % | 0.50 | % | 0.50 | % | 0.50 | % | 0.50 | % | 0.50 | % | ||||||||||||
Ratio of net investment income to average net assetse | 2.97 | % | 3.67 | % | 4.09 | % | 3.68 | % | 3.47 | % | 2.87 | % | ||||||||||||
Portfolio turnover ratef | 4 | % | 8 | % | 16 | % | 8 | % | 8 | % | 5 | % |
a | Commencement of operations. |
b | Based on average shares outstanding throughout each period. |
c | The amounts reported may not accord with the change in aggregate gains and losses in securities due to the timing of capital share transactions. |
d | Not annualized. |
e | Annualized for periods of less than one year. |
f | Portfolio turnover rates exclude portfolio securities received or delivered as a result of processing capital share transactions in Creation Units. |
See notes to financial statements.
96 | 2007 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Financial Highlights (Continued)
iSHARES®, INC.
(For a share outstanding throughout each period)
iShares MSCI Singapore Index Fund | ||||||||||||||||||||||||
Six months ended Feb. 28, 2007 (Unaudited) | Year ended Aug. 31, 2006 | Year ended Aug. 31, 2005 | Year ended Aug. 31, 2004 | Year ended Aug. 31, 2003 | Year ended Aug. 31, 2002 | |||||||||||||||||||
Net asset value, beginning of period | $ | 9.11 | $ | 7.77 | $ | 6.52 | $ | 5.38 | $ | 5.01 | $ | 5.34 | ||||||||||||
Income from investment operations: | ||||||||||||||||||||||||
Net investment incomea | 0.06 | 0.40 | 0.38 | 0.22 | 0.12 | 0.07 | ||||||||||||||||||
Net realized and unrealized gain (loss)b | 2.86 | 1.23 | 1.15 | 1.04 | 0.33 | (0.36 | ) | |||||||||||||||||
Total from investment operations | 2.92 | 1.63 | 1.53 | 1.26 | 0.45 | (0.29 | ) | |||||||||||||||||
Less distributions from: | ||||||||||||||||||||||||
Net investment income | (0.31 | ) | (0.29 | ) | (0.28 | ) | (0.12 | ) | (0.08 | ) | (0.04 | ) | ||||||||||||
Total distributions | (0.31 | ) | (0.29 | ) | (0.28 | ) | (0.12 | ) | (0.08 | ) | (0.04 | ) | ||||||||||||
Net asset value, end of period | $ | 11.72 | $ | 9.11 | $ | 7.77 | $ | 6.52 | $ | 5.38 | $ | 5.01 | ||||||||||||
Total return | 32.31 | %c | 21.61 | % | 24.06 | % | 23.47 | % | 9.30 | % | (5.42 | )% | ||||||||||||
Ratios/Supplemental data: | ||||||||||||||||||||||||
Net assets, end of period (000s) | $ | 1,501,018 | $ | 574,620 | $ | 341,137 | $ | 170,047 | $ | 108,202 | $ | 88,126 | ||||||||||||
Ratio of expenses to average net assetsd | 0.52 | % | 0.54 | % | 0.57 | % | 0.79 | % | 0.84 | % | 0.84 | % | ||||||||||||
Ratio of net investment income to average net assetsd | 1.16 | % | 4.74 | % | 5.19 | % | 3.50 | % | 2.67 | % | 1.44 | % | ||||||||||||
Portfolio turnover ratee | 4 | % | 6 | % | 8 | % | 9 | % | 14 | % | 9 | % |
a | Based on average shares outstanding throughout each period. |
b | The amounts reported may not accord with the change in aggregate gains and losses in securities due to the timing of capital share transactions. |
c | Not annualized. |
d | Annualized for periods of less than one year. |
e | Portfolio turnover rates exclude portfolio securities received or delivered as a result of processing capital share transactions in Creation Units. |
See notes to the financial statements.
FINANCIAL HIGHLIGHTS | 97 |
Table of Contents
Financial Highlights (Continued)
iSHARES®, INC.
(For a share outstanding throughout each period)
iShares MSCI South Africa Index Fund | ||||||||||||||||||||
Six months ended Feb. 28, 2007 (Unaudited) | Year ended Aug. 31, 2006 | Year ended Aug. 31, 2005 | Year ended Aug. 31, 2004 | Period from Feb. 3, 2003a to Aug. 31, 2003 | ||||||||||||||||
Net asset value, beginning of period | $ | 97.67 | $ | 82.99 | $ | 59.92 | $ | 46.81 | $ | 38.72 | ||||||||||
Income from investment operations: | ||||||||||||||||||||
Net investment incomeb | 1.02 | 2.87 | 1.92 | 1.23 | 0.89 | |||||||||||||||
Net realized and unrealized gainc | 19.01 | 13.78 | 22.36 | 13.24 | 7.20 | |||||||||||||||
Total from investment operations | 20.03 | 16.65 | 24.28 | 14.47 | 8.09 | |||||||||||||||
Less distributions from: | ||||||||||||||||||||
Net investment income | (2.51 | ) | (1.97 | ) | (1.21 | ) | (1.36 | ) | – | |||||||||||
Total distributions | (2.51 | ) | (1.97 | ) | (1.21 | ) | (1.36 | ) | – | |||||||||||
Net asset value, end of period | $ | 115.19 | $ | 97.67 | $ | 82.99 | $ | 59.92 | $ | 46.81 | ||||||||||
Total return | 20.57 | %d | 20.06 | % | 40.62 | % | 31.30 | % | 20.89 | %d | ||||||||||
Ratios/Supplemental data: | ||||||||||||||||||||
Net assets, end of period (000s) | $ | 357,100 | $ | 297,898 | $ | 153,530 | $ | 92,882 | $ | 81,914 | ||||||||||
Ratio of expenses to average net assetse | 0.68 | % | 0.70 | % | 0.74 | % | 0.95 | % | 0.99 | % | ||||||||||
Ratio of net investment income to average net assetse | 1.94 | % | 2.79 | % | 2.62 | % | 2.23 | % | 3.86 | % | ||||||||||
Portfolio turnover ratef | 3 | % | 7 | % | 32 | % | 13 | % | 17 | % |
a | Commencement of operations. |
b | Based on average shares outstanding throughout each period. |
c | The amounts reported may not accord with the change in aggregate gains and losses in securities due to the timing of capital share transactions. |
d | Not annualized. |
e | Annualized for periods of less than one year. |
f | Portfolio turnover rates exclude portfolio securities received or delivered as a result of processing capital share transactions in Creation Units. |
See notes to financial statements.
98 | 2007 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Financial Highlights (Continued)
iSHARES®, INC.
(For a share outstanding throughout each period)
iShares MSCI South Korea Index Fund | ||||||||||||||||||||||||
Six months ended Feb. 28, 2007 (Unaudited) | Year ended Aug. 31, 2006 | Year ended Aug. 31, 2005 | Year ended Aug. 31, 2004 | Year ended Aug. 31, 2003 | Year ended Aug. 31, 2002 | |||||||||||||||||||
Net asset value, beginning of period | $ | 46.00 | $ | 34.75 | $ | 24.17 | $ | 23.06 | $ | 21.17 | $ | 13.25 | ||||||||||||
Income from investment operations: | ||||||||||||||||||||||||
Net investment income (loss)a | 0.51 | 0.31 | 0.46 | 0.22 | 0.19 | (0.00 | )b | |||||||||||||||||
Net realized and unrealized gainc | 3.23 | 11.20 | 10.22 | 1.13 | 1.70 | 7.92 | ||||||||||||||||||
Total from investment operations | 3.74 | 11.51 | 10.68 | 1.35 | 1.89 | 7.92 | ||||||||||||||||||
Less distributions from: | ||||||||||||||||||||||||
Net investment income | (0.33 | ) | (0.26 | ) | (0.10 | ) | (0.24 | ) | – | – | ||||||||||||||
Total distributions | (0.33 | ) | (0.26 | ) | (0.10 | ) | (0.24 | ) | – | – | ||||||||||||||
Net asset value, end of period | $ | 49.41 | $ | 46.00 | $ | 34.75 | $ | 24.17 | $ | 23.06 | $ | 21.17 | ||||||||||||
Total return | 8.13 | %d | 33.16 | % | 44.29 | % | 5.83 | % | 8.93 | % | 59.77 | % | ||||||||||||
Ratios/Supplemental data: | ||||||||||||||||||||||||
Net assets, end of period (000s) | $ | 1,667,473 | $ | 1,621,334 | $ | 698,455 | $ | 315,464 | $ | 154,486 | $ | 96,336 | ||||||||||||
Ratio of expenses to average net assetse | 0.68 | % | 0.70 | % | 0.74 | % | 0.94 | % | 0.99 | % | 1.00 | % | ||||||||||||
Ratio of expenses to average net assets exclusive of foreign taxese | 0.68 | % | 0.70 | % | 0.74 | % | 0.94 | % | 0.99 | % | 0.99 | % | ||||||||||||
Ratio of net investment income (loss) to average net assetse | 2.15 | % | 0.71 | % | 1.49 | % | 0.87 | % | 0.98 | % | (0.01 | )% | ||||||||||||
Portfolio turnover ratef | 6 | % | 47 | % | 30 | % | 29 | % | 39 | % | 25 | % |
a | Based on average shares outstanding throughout each period. |
b | Rounds to less than $0.01. |
c | The amounts reported may not accord with the change in aggregate gains and losses in securities due to the timing of capital share transactions. |
d | Not annualized. |
e | Annualized for periods of less than one year. |
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, 2007 and the years ended August 31, 2006 and August 31, 2005 would have been 0% and 14% and 9%, respectively. See Note 4. |
See notes to the financial statements.
FINANCIAL HIGHLIGHTS | 99 |
Table of Contents
Financial Highlights (Continued)
iSHARES®, INC.
(For a share outstanding throughout each period)
iShares MSCI Taiwan Index Fund | ||||||||||||||||||||||||
Six months ended Feb. 28, 2007 (Unaudited) | Year ended Aug. 31, 2006 | Year ended Aug. 31, 2005 | Year ended Aug. 31, 2004 | Year ended Aug. 31, 2003 | Year ended Aug. 31, 2002 | |||||||||||||||||||
Net asset value, beginning of period | $ | 12.57 | $ | 11.57 | $ | 10.66 | $ | 10.79 | $ | 8.82 | $ | 9.01 | ||||||||||||
Income from investment operations: | ||||||||||||||||||||||||
Net investment income (loss)a | (0.04 | ) | 0.34 | 0.27 | 0.14 | 0.04 | (0.03 | ) | ||||||||||||||||
Net realized and unrealized gain (loss)b | 2.10 | 0.80 | 0.72 | (0.25 | ) | 1.93 | (0.16 | ) | ||||||||||||||||
Total from investment operations | 2.06 | 1.14 | 0.99 | (0.11 | ) | 1.97 | (0.19 | ) | ||||||||||||||||
Less distributions from: | ||||||||||||||||||||||||
Net investment income | (0.30 | ) | (0.14 | ) | (0.08 | ) | (0.02 | ) | – | – | ||||||||||||||
Total distributions | (0.30 | ) | (0.14 | ) | (0.08 | ) | (0.02 | ) | – | – | ||||||||||||||
Net asset value, end of period | $ | 14.33 | $ | 12.57 | $ | 11.57 | $ | 10.66 | $ | 10.79 | $ | 8.82 | ||||||||||||
Total return | 16.42 | %c | 9.84 | % | 9.28 | % | (1.10 | )% | 22.45 | % | (2.11 | )% | ||||||||||||
Ratios/Supplemental data: | ||||||||||||||||||||||||
Net assets, end of period (000s) | $ | 2,313,381 | $ | 1,893,751 | $ | 752,640 | $ | 390,228 | $ | 234,727 | $ | 142,043 | ||||||||||||
Ratio of expenses to average net assetsd | 0.68 | % | 0.85 | % | 1.03 | % | 1.19 | %e | 1.31 | % | 1.33 | % | ||||||||||||
Ratio of expenses to average net assets exclusive of foreign taxesd | n/a | 0.70 | % | 0.74 | % | 0.92 | % | 0.99 | % | 0.99 | % | |||||||||||||
Ratio of net investment income (loss) to average net assetsd | (0.56 | )% | 2.74 | % | 2.34 | % | 1.23 | % | 0.43 | % | (0.28 | )% | ||||||||||||
Portfolio turnover ratef | 19 | % | 29 | % | 20 | % | 19 | % | 15 | % | 11 | % |
a | Based on average shares outstanding throughout each period. |
b | The amounts reported may not accord with the change in aggregate gains and losses in securities due to the timing of capital share transactions. |
c | Not annualized. |
d | Annualized for periods of less than one year. |
e | Ratio of expenses to average net assets prior to voluntary reimbursed distribution fees for the year ended August 31, 2004 was 1.22%. |
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, 2007 and the years ended August 31, 2006 and August 31, 2005 would have been 5%, 10% and 10%, respectively. See Note 4. |
See notes to the financial statements.
100 | 2007 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Notes to 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, 2007, 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 that market’s 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.
Pursuant to 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”).
NOTESTO FINANCIAL STATEMENTS | 101 |
Table of Contents
Notes to 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 rate different 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 dates 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
Certain countries may levy taxes on stock dividends (based on the par value of the stock dividends received) and other taxable corporate events (i.e. spin-offs and tender offers) by companies whose securities are held by the Funds. These foreign taxes, if any, are paid by the Funds receiving the stock dividends or holding the securities subject to the taxable corporate event, and 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, 2007.
102 | 2007 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Notes to Financial Statements (Unaudited) (Continued)
iSHARES®, INC.
The Funds had tax basis net capital loss carryforwards as of August 31, 2006, 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 | Expiring 2014 | Total | ||||||||||||||||||
Australia | $ | – | $ | 71,019 | $ | 1,971,994 | $ | 3,625,203 | $ | 650,082 | $ | 596,240 | $ | 384,424 | $ | – | $ | 7,298,962 | |||||||||
Brazil | – | – | – | – | 45,165,910 | – | – | – | 45,165,910 | ||||||||||||||||||
Canada | – | – | – | – | – | – | 2,931,648 | – | 2,931,648 | ||||||||||||||||||
Emerging Markets | – | – | – | – | – | 840,778 | 20,296,564 | 11,239,258 | 32,376,600 | ||||||||||||||||||
Hong Kong | 4,085,707 | – | – | 4,971,970 | 2,870,602 | 2,330,414 | 468,716 | 425,440 | 15,152,849 | ||||||||||||||||||
Malaysia | 8,654,333 | – | – | 9,819,029 | 2,898,105 | 775,477 | 6,820,474 | 1,543,708 | 30,511,126 | ||||||||||||||||||
Mexico | – | – | – | 1,319,032 | 2,329,290 | 3,136,171 | 12,912 | 632,766 | 7,430,171 | ||||||||||||||||||
Pacific ex-Japan | – | – | – | – | 329,461 | 2,563,114 | 1,175,692 | 853,529 | 4,921,796 | ||||||||||||||||||
Singapore | – | – | – | 3,754,702 | 4,428,316 | 4,256,421 | 2,558,348 | – | 14,997,787 | ||||||||||||||||||
South Africa | – | – | – | – | – | 527,613 | – | 260,738 | 788,351 | ||||||||||||||||||
South Korea | – | – | 556,540 | 666,642 | 504,041 | 3,363,449 | 11,590,303 | 3,172,573 | 19,853,548 | ||||||||||||||||||
Taiwan | – | – | – | 12,532,361 | 8,689,663 | 9,129,874 | 12,022,719 | 14,435,986 | 56,810,603 |
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 marked-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, 2007, gross unrealized appreciation and gross unrealized depreciation based on cost for federal income tax purposes were as follows:
iShares MSCI Index Fund | Tax Cost | Gross Unrealized Appreciation | Gross Unrealized Depreciation | Net Unrealized Appreciation | |||||||||
Australia | $ | 817,754,528 | $ | 125,373,100 | $ | (781,166 | ) | $ | 124,591,934 | ||||
Brazil | 1,981,939,958 | 909,121,908 | (13,158,637 | ) | 895,963,271 | ||||||||
Canada | 900,135,841 | 159,909,030 | (17,875,714 | ) | 142,033,316 | ||||||||
Emerging Markets | 12,544,303,209 | 2,727,686,992 | (167,957,416 | ) | 2,559,729,576 | ||||||||
Hong Kong | 1,317,631,230 | 207,056,616 | (13,097,340 | ) | 193,959,276 | ||||||||
Malaysia | 778,223,898 | 192,321,807 | – | 192,321,807 | |||||||||
Mexico | 1,025,425,089 | 79,238,132 | (263,631 | ) | 78,974,501 | ||||||||
Pacific ex-Japan | 2,276,648,447 | 764,518,287 | (3,383,781 | ) | 761,134,506 | ||||||||
Singapore | 1,443,282,303 | 228,711,603 | (1,301,228 | ) | 227,410,375 | ||||||||
South Africa | 350,069,386 | 27,060,739 | (20,200,327 | ) | 6,860,412 | ||||||||
South Korea | 1,176,939,961 | 607,850,849 | (15,219,296 | ) | 592,631,553 | ||||||||
Taiwan | 1,864,789,717 | 474,368,787 | (29,488,073 | ) | 444,880,714 |
NOTESTO FINANCIAL STATEMENTS | 103 |
Table of Contents
Notes to 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 Fund Advisors (“BGFA”) manages the investment of each Fund’s assets. BGFA is a California corporation indirectly owned by Barclays Bank PLC. Under the Investment Advisory Agreement, BGFA is responsible for all 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 of the average daily 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 Average Daily Net Assets | |
0.59% | First $7 billion | |
0.54 | Over $7 billion, up to and including $11 billion | |
0.49 | Over $11 billion, up to and including $24 billion | |
0.44 | Over $24 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 of the average daily net assets of these four Funds as follows:
Investment Advisory Fee | Aggregate Average Daily 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 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 MSCI Index Funds, as follows:
Investment Advisory Fee | Average Daily Net Assets | |
0.75% | First $14 billion | |
0.68 | Over $14 billion, up to and including $28 billion | |
0.61 | Over $28 billion |
104 | 2007 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
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Notes to Financial Statements (Unaudited) (Continued)
iSHARES®, INC.
BGFA voluntarily waived 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 MSCI Index Funds.
For its investment advisory services to the iShares MSCI Pacific ex-Japan Index Fund, BGFA is entitled to an annual investment advisory fee of 0.50% of the average daily net assets of the Fund.
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 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, 2007, BGI earned securities lending agent fees as follows:
iShares MSCI Index Fund | Securities Lending Agent Fees | ||
Australia | $ | 53,455 | |
Emerging Markets | 4,680,656 | ||
Hong Kong | 157,617 | ||
Mexico | 458,551 |
iShares MSCI Index Fund | Securities Lending Agent Fees | ||
Pacific ex-Japan | $ | 177,855 | |
Singapore | 131,562 | ||
South Korea | 407,778 |
Cross trades for the six months ended February 28, 2007, if any, were executed by the Funds pursuant to Rule 17a-7 under the 1940 Act. 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.
Each Fund may invest in the Institutional Shares of certain money market funds managed by BGFA, the Funds’ investment adviser, including the Government Money Market Fund (“GMMF”), Institutional Money Market Fund (“IMMF”), Prime Money Market Fund (“PMMF”) and Treasury Money Market Fund (“TMMF”) of Barclays Global Investors Funds. The GMMF, IMMF, PMMF and TMMF 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, Prime Money Market Master Portfolio and Treasury Money Market Master Portfolio (collectively, the “Money Market Master Portfolios”), respectively, which are also managed by BGFA. While the GMMF, IMMF, PMMFand TMMF do not directly charge an investment advisory fee, the Money Market Master Portfolios in which they invest do charge an investment advisory fee. Income distributions from the GMMF, IMMF, PMMFand TMMFare declared daily and paid monthly from net investment income. Income distributions earned by the Funds from temporary cash investments are recorded as interest from affiliated issuers in the accompanying Statements of Operations. Income distributions earned by the Funds from the investment of securities lending collateral, if any, are included in securities lending income 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 MSCI Index Funds that invest in securities in the Fund’s benchmark index. As of February 28,
NOTESTO FINANCIAL STATEMENTS | 105 |
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Notes to Financial Statements (Unaudited) (Continued)
iSHARES®, INC.
2007, the iShares MSCI Emerging Markets Index Fund held shares of the iShares MSCI Malaysia, iShares MSCI South Korea and iShares MSCI Taiwan Index Funds.
The following table provides information about the direct investment by the iShares MSCI Emerging Markets Index Fund (exclusive of short-term investments) in issuers of which BGFA is an affiliate, or issuers of which the Fund owns 5% or more of the outstanding voting securities, for the six months ended February 28, 2007.
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 | Dividend Income | Net Realized Gain | ||||||||||
iShares MSCI Malaysia | |||||||||||||||||
Index Fund | 1,039 | – | 137 | 902 | $ | 9,083,694 | $ | 176,251 | $ | 101,664 | |||||||
iShares MSCI South Korea | |||||||||||||||||
Index Fund | 546 | 140 | 124 | 562 | 27,546,930 | 197,279 | 2,693,944 | ||||||||||
iShares MSCI Taiwan Index Fund | 2,812 | 724 | 639 | 2,897 | 40,361,562 | 910,711 | 1,447,929 | ||||||||||
Siliconware Precision | |||||||||||||||||
Industries Co. ADR | 33,802 | 8,708 | 7,676 | 34,834 | 316,288,797 | – | 29,010,853 | ||||||||||
Sociedad Quimica y | |||||||||||||||||
Minera de Chile SA ADR | 595 | 153 | 135 | 613 | 83,668,245 | – | 9,220,748 |
As of February 28, 2007, certain directors and officers of the Company are also officers of BGI and/or BGFA.
3. INVESTMENT PORTFOLIO TRANSACTIONS
Purchases and sales of investments (excluding in-kind transactions and short-term investments) for the six months ended February 28, 2007, were as follows:
iShares MSCI Index Fund | Purchases | Sales | ||||
Australia | $ | 29,638,371 | $ | 51,056,331 | ||
Brazil | 119,462,067 | 157,402,562 | ||||
Canada | 56,327,114 | 60,052,296 | ||||
Emerging Markets | 488,614,871 | 654,904,620 | ||||
Hong Kong | 43,838,296 | 45,011,216 | ||||
Malaysia | 555,285,942 | 77,817,962 | ||||
Mexico | 159,522,777 | 171,740,630 | ||||
Pacific ex-Japan | 97,665,138 | 156,881,531 | ||||
Singapore | 41,242,318 | 43,955,489 | ||||
South Africa | 9,541,711 | 15,244,654 | ||||
South Korea | 92,486,111 | 177,896,965 | ||||
Taiwan | 533,476,049 | 394,617,655 |
106 | 2007 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
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Notes to Financial Statements (Unaudited) (Continued)
iSHARES®, INC.
In-kind transactions (see Note 4) for the six months ended February 28, 2007, were as follows:
iShares MSCI Index Fund | In-kind Purchases | In-kind Sales | ||||
Australia | $ | 328,228,675 | $ | 187,119,604 | ||
Canada | 36,772,067 | 122,248,221 | ||||
Emerging Markets | 3,346,003,381 | 2,962,131,369 | ||||
Hong Kong | 461,519,299 | 115,385,238 | ||||
Mexico | 804,688,320 | 700,295,694 | ||||
Pacific ex-Japan | 500,897,145 | 36,310,702 | ||||
Singapore | 850,279,670 | 136,161,055 | ||||
South Africa | 70,331,944 | 68,462,949 |
4. CAPITAL SHARE TRANSACTIONS
The Company has been authorized to issue 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 |
iShares MSCI Index Fund | Authorized Shares | |
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). Investors purchasing and redeeming Creation Units pay a purchase transaction fee and a redemption transaction fee directly to Investors Bank, the administrator, to offset transfer and other transaction costs associated with the issuance and redemption of Creation Units, including Creation Units for cash. Investors transacting in Creation Units for cash pay an additional variable charge to compensate the relevant Fund for brokerage and market impact expenses relating to investing in portfolio securities.
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
NOTESTO FINANCIAL STATEMENTS | 107 |
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Notes to Financial Statements (Unaudited) (Continued)
iSHARES®, INC.
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, 2007, 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 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 or non-U.S. Government debt securities. The market value of the securities on loan as of February 28, 2007 and the value of the related collateral are disclosed in the Statements of Assets and Liabilities. Securities lending income, as disclosed in the Funds’ Statements of Operations, represents the income earned from the investment of the cash collateral, net of rebates paid to, or fees paid by, borrowers and less the fees paid to BGI as securities lending agent.
6. RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS
In June 2006, the Financial Accounting Standards Board (“FASB”) issued FASB Interpretation No. 48 (“FIN 48”), “Accounting for Uncertainty in Income Taxes - an interpretation of FASB Statement No. 109.” FIN 48 clarifies the accounting for uncertainty in income taxes recognized in accordance with FASB Statement No. 109, “Accounting for Income Taxes.” This interpretation prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. It also provides guidance on de-recognition, classification, interest and penalties, accounting in interim periods, disclosure and transition. FIN 48 is effective for fiscal years beginning after December 15, 2006. The SEC staff has stated that it would not object if a fund does not implement FIN 48 in its NAV calculation until the date of the fund’s last NAV calculation in the first required financial statement reporting period for its fiscal year beginning after December 15, 2006. The Company is currently evaluating the impact of applying the various provisions of FIN 48.
In September 2006, FASB issued Statement of Financial Accounting Standards No. 157 (“FAS 157”), “Fair Value Measurements.” FAS 157 defines fair value, establishes a framework for measuring fair value in accordance with generally accepted accounting principles and expands disclosure about fair value measurements. FAS 157 is effective for fiscal years beginning after November 15, 2007. The Company is currently evaluating the impact the adoption of FAS 157 will have on the Funds’ financial statement disclosures.
108 | 2007 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
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Notes:
NOTES | 109 |
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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 Domestic Subsector Index Funds
iShares Dow Jones U.S. Aerospace & Defense (ITA)
iShares Dow Jones U.S. Broker-Dealers (IAI)
iShares Dow Jones U.S. Healthcare Providers (IHF)
iShares Dow Jones U.S. Home Construction (ITB)
iShares Dow Jones U.S. Insurance (IAK)
iShares Dow Jones U.S. Medical Devices (IHI)
iShares Dow Jones U.S. Oil & Gas Exploration & Production (IEO)
iShares Dow Jones U.S. Oil Equipment & Services (IEZ)
iShares Dow Jones U.S. Pharmaceuticals (IHE)
iShares Dow Jones U.S. Regional Banks (IAT)
iShares Global Index Funds
iShares S&P Global 100 (IOO)
iShares S&P Global Consumer
Discretionary Sector (RXI)
iShares S&P Global Consumer Staples
Sector (KXI)
iShares S&P Global Energy Sector (IXC)
iShares S&PGlobal Financials Sector(IXG)
iShares S&PGlobal Healthcare Sector(IXJ)
iShares S&PGlobal Industrials Sector(EXI)
iShares S&PGlobal Materials Sector(MXI)
iShares S&PGlobal Technology Sector(IXN)
iShares S&P Global Telecommunications Sector (IXP)
iShares S&P Global Utilities Sector (JXI)
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 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 Short Treasury (SHV)
iShares Lehman 1-3 YearTreasury (SHY)
iShares Lehman 3-7 YearTreasury (IEI)
iShares Lehman 7-10 YearTreasury (IEF)
iShares Lehman 10-20 YearTreasury (TLH)
iShares Lehman 20+ YearTreasury (TLT)
iShares Lehman TIPS (TIP)
iShares Lehman Credit (CFT)
iShares Lehman 1-3 Year Credit (CSJ)
iShares Lehman Intermediate Credit (CIU)
iShares iBoxx $ Investment Grade Corporate (LQD)
iShares Lehman Government/Credit (GBF)
iShares Lehman Intermediate Government/Credit (GVI)
iShares Lehman MBS Fixed-Rate (MBB)
iShares iBoxx $ High Yield Corporate (HYG)
iShares Specialty Index Funds
iShares KLD Select Social SM (KLD)
iShares KLD 400 Social (DSI)
iShares Dow Jones Select Dividend (DVY)
iShares S&P U.S. Preferred Stock (PFF)
iShares International Index Funds
iShares MSCI EAFE (EFA)
iShares MSCI EAFE Growth (EFG)
iShares MSCI EAFEValue (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 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 trademarkof 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 (“FXI”), iBoxx, KLD Research & Analytics, Inc., Morgan Stanley Capital International, Morningstar, Inc., The Nasdaq Stock Market, Inc., New York Stock Exchange LLC, 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. iBoxx is a registered trademarkof International Index Company Limited. “Goldman Sachs®” is a trademarkof Goldman, Sachs & Co. FXI does not make any warranty regarding the FTSE/Xinhua Index. All rights in the FTSE/Xinhua Index vest in FXI. “FTSE” is a trade and service mark of London Stock Exchange and The Financial Times; “Xinhua” is a trade and service mark of Xinhua Financial Network Limited.
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 2007 Semi-Annual Report.
110 | 2007 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
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iSHARES® MSCI JAPAN INDEX FUND
Performance as of February 28, 2007
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 represented by the MSCI Japan Index (the “Index”). The Fund invests in a representative sample of securities in the Index, which has a similar investment profile as the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. For the six-month period ended February 28, 2007, the Fund returned 8.15%, while the Index returned 8.35%.
Average Annual Total Returns | ||||||||||||||||
Year Ended 2/28/07 | Five Years Ended 2/28/07 | Ten Years Ended 2/28/07 | ||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||
6.53% | 7.50% | 7.01% | 15.04% | 14.90% | 15.63% | 2.82% | 2.74% | 3.58% | ||||||||
Cumulative Total Returns | ||||||||||||||||
Year Ended 2/28/07 | Five Years Ended 2/28/07 | Ten Years Ended 2/28/07 | ||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||
6.53% | 7.50% | 7.01% | 101.51% | 100.27% | 106.67% | 32.06% | 31.00% | 42.13% |
“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. 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 2/28/07 | |||
Sector | Percentage of Net Assets | ||
Consumer Cyclical | 25.06 | % | |
Financial | 20.66 | ||
Industrial | 20.37 | ||
Consumer Non-Cyclical | 9.93 | ||
Basic Materials | 8.78 | ||
Utilities | 4.79 | ||
Technology | 4.75 | ||
Communications | 4.56 | ||
Energy | 0.95 | ||
Short-Term and Other Net Assets | 0.15 | ||
TOTAL | 100.00 | % | |
TEN LARGEST FUND HOLDINGS As of 2/28/07 | |||
Security | Percentage of Net Assets | ||
Toyota Motor Corp. | 6.48 | % | |
Mitsubishi UFJ Financial Group Inc. | 3.47 | ||
Mizuho Financial Group Inc. | 2.21 | ||
Sumitomo Mitsui Financial Group Inc. | 2.07 | ||
Canon Inc. | 1.93 | ||
Takeda Pharmaceutical Co. Ltd. | 1.93 | ||
Honda Motor Co. Ltd. | 1.93 | ||
Sony Corp. | 1.76 | ||
Nippon Steel Corp. | 1.38 | ||
Tokyo Electric Power Co. Inc. (The) | 1.37 | ||
TOTAL | 24.53 | % | |
FUND PERFORMANCE OVERVIEW | 1 |
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Shareholder Expenses (Unaudited)
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, 2006 to February 28, 2007.
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 (9/1/06) | Ending Account Value (2/28/07) | Annualized Expense Ratio | Expenses Paid During Period a (9/1/06 to 2/28/07) | |||||||||
Actual | $ | 1,000.00 | $ | 1,081.50 | 0.52 | % | $ | 2.68 | ||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,022.20 | 0.52 | 2.61 |
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 | 2007 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited)
iSHARES® MSCI JAPAN INDEX FUND
February 28, 2007
Security | Shares | Value | |||
COMMON STOCKS – 99.85% | |||||
ADVERTISING – 0.24% | |||||
Asatsu-DK Inc. | 167,800 | $ | 5,225,826 | ||
Dentsu Inc. | 8,390 | 23,367,515 | |||
Hakuhodo DY Holdings Inc. | 117,460 | 7,930,793 | |||
36,524,134 | |||||
AGRICULTURE – 0.72% | |||||
Japan Tobacco Inc. | 23,492 | 107,263,974 | |||
107,263,974 | |||||
AIRLINES – 0.14% | |||||
All Nippon Airways Co. Ltd. | 3,356,000 | 13,114,133 | |||
Japan Airlines Corp.a,b | 3,356,000 | 7,420,956 | |||
20,535,089 | |||||
APPAREL – 0.20% | |||||
Asics Corp. | 461,000 | 5,384,850 | |||
Gunze Ltd. | 1,678,000 | 9,573,600 | |||
Onward Kashiyama Co. Ltd. | 1,105,000 | 15,416,002 | |||
30,374,452 | |||||
AUTO MANUFACTURERS – 9.34% | |||||
Hino Motors Ltd. | 1,678,000 | 9,304,520 | |||
Honda Motor Co. Ltd. | 7,718,800 | 287,944,431 | |||
Nissan Motor Co. Ltd. | 11,227,100 | 130,004,483 | |||
Toyota Motor Corp. | 14,263,000 | 965,432,418 | |||
1,392,685,852 | |||||
AUTO PARTS & EQUIPMENT – 1.66% | |||||
Aisin Seiki Co. Ltd. | 1,007,000 | 34,760,771 | |||
Bridgestone Corp. | 3,020,400 | 63,474,668 | |||
Denso Corp. | 2,517,700 | 97,958,366 | |||
JTEKT Corp. | 503,400 | 8,879,656 | |||
NGK Spark Plug Co. Ltd. | 629,000 | 11,918,007 | |||
NHK Spring Co. Ltd. | 406,000 | 4,153,032 | |||
NOK Corp. | 503,400 | 8,603,494 | |||
Sumitomo Rubber Industries Inc. | 503,400 | 5,990,581 | |||
Tokai Rika Co. Ltd. | 167,800 | 4,114,099 | |||
Toyoda Gosei Co. Ltd. | 335,600 | 7,590,902 | |||
247,443,576 | |||||
BANKS – 11.11% | |||||
Bank of Fukuoka Ltd. (The) | 3,356,000 | 28,295,936 | |||
Bank of Kyoto Ltd. (The) | 433,000 | 4,849,483 | |||
Bank of Yokohama Ltd. (The) | 6,712,000 | 54,835,768 |
Security | Shares | Value | |||
Chiba Bank Ltd. (The) | 3,356,000 | $ | 32,006,414 | ||
Gunma Bank Ltd. | 1,678,000 | 11,556,299 | |||
Hokuhoku Financial Group Inc. | 6,717,000 | 25,284,061 | |||
Joyo Bank Ltd. (The) | 3,356,000 | 22,007,951 | |||
Mitsubishi UFJ Financial Group Inc. | 41,950 | 516,917,753 | |||
Mitsubishi UFJ Securities Co. Ltd. | 1,678,000 | 20,039,414 | |||
Mitsui Trust Holdings Inc. | 3,361,000 | 37,472,093 | |||
Mizuho Financial Group Inc. | 46,984 | 329,127,906 | |||
Nishi-Nippon City Bank Ltd. (The) | 3,356,000 | 16,116,504 | |||
Resona Holdings Inc. | 23,493 | 66,621,497 | |||
Sapporo Hokuyo Holdings Inc. | 1,128 | 11,709,837 | |||
77 Bank Ltd. (The) | 1,678,000 | 11,882,028 | |||
Shinsei Bank Ltd. | 6,712,000 | 35,915,162 | |||
Shizuoka Bank Ltd. (The) | 3,356,000 | 35,830,189 | |||
Sumitomo Mitsui Financial Group Inc. | 31,882 | 309,442,546 | |||
Sumitomo Trust & Banking Co. Ltd. (The) | 6,712,000 | 76,022,315 | |||
Suruga Bank Ltd. | 776,000 | 10,695,092 | |||
1,656,628,248 | |||||
BEVERAGES – 0.81% | |||||
Asahi Breweries Ltd. | 1,678,000 | 27,474,532 | |||
Coca-Cola West Japan Co. Ltd. | 335,600 | 7,520,091 | |||
Ito En Ltd.b | 335,600 | 10,876,516 | |||
Kirin Brewery Co. Ltd. | 4,038,000 | 62,400,962 | |||
Sapporo Holdings Ltd.b | 1,678,000 | 12,490,999 | |||
120,763,100 | |||||
BUILDING MATERIALS – 1.30% | |||||
Asahi Glass Co. Ltd. | 5,034,000 | 67,213,470 | |||
Daikin Industries Ltd. | 1,174,600 | 41,934,068 | |||
JS Group Corp. | 1,342,400 | 30,137,013 | |||
Matsushita Electric Works Ltd. | 1,678,000 | 19,090,552 | |||
Nippon Sheet Glass Co. Ltd. | 1,678,000 | 8,610,575 | |||
Sumitomo Osaka Cement Co. Ltd. | 1,678,000 | 5,480,745 | |||
Taiheiyo Cement Corp. | 5,034,000 | 22,092,923 | |||
194,559,346 | |||||
CHEMICALS – 3.79% | |||||
Asahi Kasei Corp. | 6,712,000 | 49,170,916 |
SCHEDULEOF INVESTMENTS | 3 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI JAPAN INDEX FUND
February 28, 2007
Security | Shares | Value | |||
Daicel Chemical Industries Ltd. | 1,678,000 | $ | 12,080,297 | ||
Dainippon Ink & Chemical Inc. | 3,356,000 | 13,652,293 | |||
Denki Kagaku Kogyo Kabushiki Kaisha | 3,356,000 | 15,153,480 | |||
Hitachi Chemical Co. Ltd. | 335,600 | 7,803,334 | |||
JSR Corp. | 839,000 | 19,402,118 | |||
Kaneka Corp. | 1,678,000 | 15,649,155 | |||
Mitsubishi Chemical Holdings Corp. | 5,873,000 | 47,535,190 | |||
Mitsubishi Gas Chemical Co. Inc. | 1,678,000 | 18,212,499 | |||
Mitsui Chemicals Inc. | 3,356,000 | 29,145,664 | |||
Nippon Kayaku Co. Ltd. | 1,678,000 | 14,431,210 | |||
Nissan Chemical Industries Ltd. | 1,103,000 | 14,122,049 | |||
Nitto Denko Corp. | 839,000 | 42,840,444 | |||
Shin-Etsu Chemical Co. Ltd. | 2,013,600 | 126,099,608 | |||
Showa Denko K.K. | 5,034,000 | 19,033,903 | |||
Sumitomo Chemical Co. Ltd. | 6,712,000 | 50,983,669 | |||
Taiyo Nippon Sanso Corp. | 1,678,000 | 14,983,533 | |||
Tokuyama Corp. | 908,000 | 15,748,323 | |||
Tosoh Corp. | 3,356,000 | 17,249,474 | |||
Ube Industries Ltd. | 5,042,000 | 16,255,593 | |||
Zeon Corp. | 566,000 | 5,933,004 | |||
565,485,756 | |||||
COMMERCIAL SERVICES – 0.91% | |||||
Benesse Corp. | 335,600 | 12,915,863 | |||
Dai Nippon Printing Co. Ltd. | 3,356,000 | 50,700,427 | |||
Goodwill Group Inc. (The)b | 6,712 | 5,149,351 | |||
Kamigumi Co. Ltd. | 1,678,000 | 14,955,209 | |||
KK DaVinci Advisorsa | 5,034 | 5,948,095 | |||
Park 24 Co. Ltd.b | 335,600 | 4,704,660 | |||
TIS Inc. | 335,600 | 6,925,281 | |||
Toppan Printing Co. Ltd. | 3,356,000 | 33,904,140 | |||
135,203,026 | |||||
COMPUTERS – 1.04% | |||||
CSK Holdings Corp. | 335,600 | 14,700,291 | |||
Fujitsu Ltd. | 8,390,000 | 58,206,355 | |||
Itochu Techno-Science Corp. | 167,800 | 8,114,901 | |||
Meitec Corp.b | 167,800 | 5,254,150 | |||
Net One Systems Co. Ltd. | 3,356 | 4,163,666 | |||
Obic Co. Ltd. | 16,780 | 3,400,327 |
Security | Shares | Value | |||
Otsuka Corp. | 62,000 | $ | 6,049,036 | ||
TDK Corp. | 671,200 | 55,912,090 | |||
155,800,816 | |||||
COSMETICS & PERSONAL CARE – 0.84% | |||||
Aderans Co. Ltd. | 167,800 | 4,319,450 | |||
Kao Corp. | 2,608,000 | 76,158,839 | |||
Shiseido Co. Ltd. | 1,678,000 | 35,546,947 | |||
Uni-Charm Corp. | 167,800 | 9,998,464 | |||
126,023,700 | |||||
DISTRIBUTION & WHOLESALE – 3.79% | |||||
Canon Marketing Japan Inc. | 167,800 | 3,646,749 | |||
Hitachi High-Technologies Corp. | 167,800 | 4,687,665 | |||
ITOCHU Corp. | 8,390,000 | 80,794,952 | |||
Marubeni Corp. | 6,716,000 | 42,114,935 | |||
Mitsubishi Corp. | 6,701,900 | 156,114,647 | |||
Mitsui & Co. Ltd. | 8,390,000 | 150,826,687 | |||
Sojitz Corp.a | 2,855,600 | 12,725,297 | |||
Sumitomo Corp. | 5,034,000 | 90,496,012 | |||
Toyota Tsusho Corp. | 839,000 | 23,296,704 | |||
564,703,648 | |||||
DIVERSIFIED FINANCIAL SERVICES – 3.60% | |||||
ACOM Co. Ltd. | 352,380 | 13,056,068 | |||
Aeon Credit Service Co. Ltd. | 504,270 | 9,575,959 | |||
AIFUL Corp. | 335,600 | 9,120,412 | |||
Credit Saison Co. Ltd. | 839,000 | 27,616,154 | |||
Daiwa Securities Group Inc. | 6,712,000 | 85,029,430 | |||
Nikko Cordial Corp. | 4,195,000 | 40,609,909 | |||
Nomura Holdings Inc. | 8,725,600 | 189,630,924 | |||
ORIX Corp. | 419,500 | 115,421,361 | |||
Promise Co. Ltd. | 419,700 | 14,310,571 | |||
SFCG Co. Ltd. | 16,780 | 2,733,291 | |||
Shinko Securities Co. Ltd. | 1,678,000 | 8,907,980 | |||
Takefuji Corp. | 552,870 | 21,557,660 | |||
537,569,719 | |||||
ELECTRIC – 4.08% | |||||
Chubu Electric Power Co. Inc. | 3,349,900 | 112,808,381 | |||
Electric Power Development Co. Ltd. | 839,000 | 42,273,958 | |||
Hokkaido Electric Power Co. Inc. | 839,000 | 22,942,651 | |||
Kansai Electric Power Co. Inc. (The) | 3,852,700 | 114,457,559 |
4 | 2007 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI JAPAN INDEX FUND
February 28, 2007
Security | Shares | Value | |||
Kyushu Electric Power Co. Inc. | 1,845,800 | $ | 52,810,583 | ||
Tohoku Electric Power Co. Inc. | 2,181,500 | 58,180,698 | |||
Tokyo Electric Power Co. Inc. (The) | 5,873,000 | 204,713,593 | |||
608,187,423 | |||||
ELECTRICAL COMPONENTS & | |||||
Casio Computer Co. Ltd. | 1,174,600 | 25,973,347 | |||
Fujikura Ltd. | 1,678,000 | 11,797,055 | |||
Furukawa Electric Co. Ltd. (The) | 3,356,000 | 22,234,544 | |||
Hitachi Cable Ltd. | 1,678,000 | 10,083,437 | |||
Hitachi Ltd. | 16,780,000 | 117,687,302 | |||
Mitsubishi Electric Corp. | 10,068,000 | 100,692,746 | |||
SANYO Electric Co. Ltd.a,b | 6,712,000 | 10,083,437 | |||
Sharp Corp. | 5,034,000 | 93,257,628 | |||
Stanley Electric Co. Ltd. | 672,400 | 13,364,578 | |||
Sumitomo Electric Industries Ltd. | 3,356,000 | 50,020,644 | |||
Toshiba Corp. | 15,102,000 | 95,339,461 | |||
Ushio Inc. | 167,800 | 3,236,047 | |||
553,770,226 | |||||
ELECTRONICS – 4.19% | |||||
Advantest Corp. | 671,200 | 31,383,281 | |||
Alps Electric Co. Ltd. | 839,000 | 10,033,869 | |||
Dainippon Screen Manufacturing Co. Ltd. | 815,000 | 6,672,153 | |||
Fanuc Ltd. | 839,000 | 74,917,669 | |||
Hirose Electric Co. Ltd. | 167,800 | 21,172,384 | |||
IBIDEN Co. Ltd. | 671,200 | 33,592,573 | |||
Keyence Corp. | 184,292 | 43,349,099 | |||
Kyocera Corp. | 839,000 | 76,333,882 | |||
Mabuchi Motor Co. Ltd. | 167,800 | 10,437,490 | |||
Minebea Co. Ltd. | 1,678,000 | 11,074,785 | |||
Murata Manufacturing Co. Ltd. | 1,006,800 | 72,906,646 | |||
NEC Corp. | 10,068,000 | 53,362,906 | |||
NGK Insulators Ltd. | 1,678,000 | 31,723,172 | |||
Nippon Electric Glass Co. Ltd. | 1,259,000 | 30,761,742 | |||
Omron Corp. | 1,174,600 | 32,912,791 | |||
Secom Co. Ltd. | 1,006,800 | 50,728,750 | |||
Tokyo Seimitsu Co. Ltd.b | 167,800 | 6,316,310 | |||
Yaskawa Electric Corp. | 1,142,000 | 12,433,473 | |||
Yokogawa Electric Corp. | 1,006,800 | 14,861,739 | |||
624,974,714 |
Security | Shares | Value | |||
ENGINEERING & CONSTRUCTION – 0.96% | |||||
Chiyoda Corp. | 609,000 | $ | 13,517,914 | ||
JGC Corp. | 1,202,000 | 18,240,250 | |||
Kajima Corp. | 5,034,000 | 26,681,453 | |||
Nishimatsu Construction Co. Ltd. | 1,678,000 | 5,749,824 | |||
Obayashi Corp. | 3,356,000 | 22,574,436 | |||
Okumura Corp.b | 1,678,000 | 9,262,033 | |||
Shimizu Corp. | 3,356,000 | 20,166,874 | |||
Taisei Corp. | 5,034,000 | 19,118,876 | |||
Toda Corp. | 1,678,000 | 7,874,145 | |||
143,185,805 | |||||
ENTERTAINMENT – 0.22% | |||||
Oriental Land Co. Ltd. | 335,600 | 19,855,306 | |||
Toho Co. Ltd. | 672,400 | 13,392,953 | |||
33,248,259 | |||||
ENVIRONMENTAL CONTROL – 0.05% | |||||
Kurita Water Industries Ltd. | 335,600 | 7,690,037 | |||
7,690,037 | |||||
FOOD – 1.00% | |||||
Ajinomoto Co. Inc. | 3,356,000 | 41,438,393 | |||
Katokichi Co. Ltd. | 671,200 | 5,024,724 | |||
Kikkoman Corp. | 1,678,000 | 23,778,216 | |||
Meiji Dairies Corp. | 1,678,000 | 14,487,859 | |||
Meiji Seika Kaisha Ltd. | 1,678,000 | 8,440,630 | |||
Nichirei Corp. | 1,678,000 | 10,225,058 | |||
Nippon Meat Packers Inc. | 1,118,000 | 13,974,410 | |||
Nisshin Seifun Group Inc. | 841,000 | 8,787,256 | |||
Nissin Food Products Co. Ltd. | 504,200 | 18,000,304 | |||
Yakult Honsha Co. Ltd. | 167,800 | 5,070,043 | |||
149,226,893 | |||||
FOREST PRODUCTS & PAPER – 0.26% | |||||
Nippon Paper Group Inc. | 5,034 | 19,373,795 | |||
Oji Paper Co. Ltd. | 3,356,000 | 18,778,985 | |||
38,152,780 | |||||
GAS – 0.71% | |||||
Osaka Gas Co. Ltd. | 10,068,000 | 39,512,343 | |||
Tokyo Gas Co. Ltd. | 11,746,000 | 65,924,716 | |||
105,437,059 | |||||
HAND & MACHINE TOOLS – 0.73% | |||||
Fuji Electric Holdings Co. Ltd. | 3,356,000 | 16,456,396 | |||
Makita Corp. | 335,600 | 12,321,053 |
SCHEDULEOF INVESTMENTS | 5 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI JAPAN INDEX FUND
February 28, 2007
Security | Shares | Value | |||
Nidec Corp. | 552,200 | $ | 36,118,918 | ||
OSG Corp.b | 335,600 | 5,401,436 | |||
SMC Corp. | 168,500 | 22,469,511 | |||
THK Co. Ltd. | 671,800 | 16,896,350 | |||
109,663,664 | |||||
HEALTH CARE - PRODUCTS – 0.68% | |||||
Hoya Corp. | 2,013,600 | 69,677,680 | |||
Terumo Corp. | 839,000 | 32,077,225 | |||
101,754,905 | |||||
HOME BUILDERS – 0.72% | |||||
Daiwa House Industry Co. Ltd. | 2,664,000 | 47,553,361 | |||
Haseko Corp.a | 3,356,000 | 12,887,539 | |||
Sekisui Chemical Co. Ltd. | 2,654,000 | 21,884,273 | |||
Sekisui House Ltd. | 1,678,000 | 25,066,971 | |||
107,392,144 | |||||
HOME FURNISHINGS – 3.32% | |||||
Matsushita Electric Industrial Co. Ltd. | 10,068,015 | 203,085,250 | |||
Pioneer Corp. | 839,400 | 11,498,048 | |||
Sony Corp. | 5,034,000 | 262,141,031 | |||
Yamaha Corp. | 839,000 | 19,154,281 | |||
495,878,610 | |||||
HOUSEWARES – 0.12% | |||||
TOTO Ltd. | 1,678,000 | 17,730,987 | |||
17,730,987 | |||||
INSURANCE – 2.36% | |||||
Millea Holdings Inc. | 3,524,000 | 131,757,775 | |||
Mitsui Sumitomo Insurance Co. Ltd. | 6,180,000 | 77,090,265 | |||
Sompo Japan Insurance Inc. | 4,345,000 | 58,234,038 | |||
T&D Holdings Inc. | 1,174,600 | 84,958,619 | |||
352,040,697 | |||||
INTERNET – 1.34% | |||||
Access Co. Ltd.a,b | 995 | 4,870,659 | |||
E*Trade Securities Co. Ltd. | 6,712 | 9,120,412 | |||
eAccess Ltd. | 5,034 | 3,662,327 | |||
Index Corp.b | 5,034 | 3,033,528 | |||
Matsui Securities Co. Ltd. | 503,400 | 5,128,107 | |||
Rakuten Inc. | 31,882 | 16,575,357 | |||
SBI Holdings Inc. | 46,984 | 20,064,906 |
Security | Shares | Value | |||
SoftBank Corp.b | 3,685,100 | $ | 93,149,973 | ||
Trend Micro Inc. | 533,500 | 15,083,977 | |||
Yahoo! Japan Corp. | 75,510 | 28,646,449 | |||
199,335,695 | |||||
IRON & STEEL – 3.83% | |||||
Daido Steel Co. Ltd. | 1,678,000 | 12,009,486 | |||
JFE Holdings Inc. | 2,685,050 | 165,202,469 | |||
Kobe Steel Ltd. | 13,424,000 | 53,929,392 | |||
Nippon Steel Corp. | 30,204,000 | 205,209,267 | |||
Nisshin Steel Co. Ltd. | 5,042,000 | 22,085,479 | |||
Sumitomo Metal Industries Ltd. | 20,136,000 | 101,627,446 | |||
Tokyo Steel Manufacturing Co. Ltd. | 671,800 | 11,209,424 | |||
571,272,963 | |||||
LEISURE TIME – 0.64% | |||||
Namco Bandai Holdings Inc. | 1,006,898 | 14,854,688 | |||
Round One Corp. | 1,678 | 4,092,856 | |||
Sankyo Co. Ltd. | 335,600 | 15,040,182 | |||
Sega Sammy Holdings Inc. | 839,000 | 20,995,358 | |||
Shimano Inc. | 335,600 | 10,140,085 | |||
Yamaha Motor Co. Ltd. | 1,007,000 | 29,916,361 | |||
95,039,530 | |||||
MACHINERY – 0.21% | |||||
Hitachi Construction Machinery Co. Ltd. | 335,600 | 9,601,924 | |||
Japan Steel Works Ltd. (The) | 1,678,000 | 16,116,504 | |||
Okuma Corp. | 493,000 | 5,675,419 | |||
31,393,847 | |||||
MACHINERY - CONSTRUCTION & MINING – 0.68% | |||||
Komatsu Ltd. | 4,530,600 | 100,756,476 | |||
100,756,476 | |||||
MACHINERY – DIVERSIFIED – 1.08% | |||||
Amada Co. Ltd. | 1,678,000 | 19,019,741 | |||
Ebara Corp.b | 1,678,000 | 7,859,982 | |||
Kubota Corp. | 5,034,000 | 50,006,481 | |||
Sumitomo Heavy Industries Ltd. | 3,356,000 | 34,385,653 | |||
Toyota Industries Corp. | 1,006,800 | 49,963,995 | |||
161,235,852 |
6 | 2007 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI JAPAN INDEX FUND
February 28, 2007
Security | Shares | Value | |||
MANUFACTURING – 2.63% | |||||
ARRK Corp. | 336,600 | $ | 4,653,338 | ||
FUJIFILM Holdings Corp. | 2,517,000 | 108,127,865 | |||
Glory Ltd. | 167,800 | 3,328,101 | |||
Ishikawajima-Harima Heavy Industries Co. Ltd. | 6,718,000 | 26,875,402 | |||
Kawasaki Heavy Industries Ltd. | 6,712,000 | 27,361,236 | |||
Konica Minolta Holdings Inc.a | 2,517,000 | 32,247,170 | |||
Mitsubishi Heavy Industries Ltd. | 16,780,000 | 94,744,651 | |||
Nikon Corp. | 1,678,000 | 38,520,994 | |||
Olympus Corp. | 1,678,000 | 56,223,657 | |||
392,082,414 | |||||
MEDIA – 0.06% | |||||
Fuji Television Network Inc. | 1,655 | 3,757,396 | |||
Tokyo Broadcasting System Inc. | 167,800 | 5,551,555 | |||
9,308,951 | |||||
METAL FABRICATE & HARDWARE – 0.29% | |||||
NSK Ltd. | 3,356,000 | 29,230,637 | |||
NTN Corp. | 1,678,000 | 13,708,942 | |||
42,939,579 | |||||
MINING – 0.90% | |||||
DOWA HOLDINGS Co. Ltd. | 1,678,000 | 17,320,285 | |||
Mitsubishi Materials Corp. | 5,034,000 | 23,070,111 | |||
Mitsui Mining & Smelting Co. Ltd. | 3,356,000 | 18,948,930 | |||
Nippon Light Metal Co. Ltd. | 1,678,000 | 5,140,853 | |||
Sumitomo Metal Mining Co. Ltd. | 2,885,000 | 51,498,291 | |||
Sumitomo Titanium Corp. | 78,400 | 9,627,548 | |||
Toho Titanium Co. Ltd.b | 167,800 | 9,106,250 | |||
134,712,268 | |||||
OFFICE & BUSINESS EQUIPMENT – 2.56% | |||||
Canon Inc. | 5,285,050 | 288,595,801 | |||
Ricoh Co. Ltd. | 3,356,000 | 74,209,562 | |||
Seiko Epson Corp. | 671,200 | 19,373,794 | |||
382,179,157 | |||||
OIL & GAS – 0.95% | |||||
INPEX Holdings Inc.a | 4,054 | 33,941,580 | |||
Nippon Mining Holdings Inc. | 4,195,000 | 35,086,678 | |||
Nippon Oil Corp. | 6,712,500 | 49,004,621 | |||
Showa Shell Sekiyu K.K. | 503,400 | 5,816,387 |
Security | Shares | Value | |||
TonenGeneral Sekiyu K.K.b | 1,678,000 | $ | 18,410,769 | ||
142,260,035 | |||||
PACKAGING & CONTAINERS – 0.11% | |||||
Toyo Seikan Kaisha Ltd. | 839,000 | 16,357,261 | |||
16,357,261 | |||||
PHARMACEUTICALS – 4.97% | |||||
Astellas Pharma Inc. | 2,684,830 | 117,603,644 | |||
Chugai Pharmaceutical Co. Ltd. | 1,342,400 | 33,252,682 | |||
Daiichi Sankyo Co. Ltd. | 3,523,869 | 113,313,423 | |||
Eisai Co. Ltd. | 1,342,400 | 68,318,116 | |||
Kyowa Hakko Kogyo Co. Ltd. | 1,678,000 | 15,309,263 | |||
Mediceo Paltac Holdings Co. Ltd. | 671,200 | 12,519,323 | |||
Santen Pharmaceutical Co. Ltd. | 167,800 | 4,588,530 | |||
Shionogi & Co. Ltd. | 1,678,000 | 32,431,278 | |||
Suzuken Co. Ltd. | 335,600 | 12,009,486 | |||
Taisho Pharmaceutical Co. Ltd. | 1,098,000 | 20,387,391 | |||
Takeda Pharmaceutical Co. Ltd. | 4,195,700 | 288,247,441 | |||
Tanabe Seiyaku Co. Ltd. | 1,678,000 | 22,631,084 | |||
740,611,661 | |||||
REAL ESTATE – 3.00% | |||||
Daito Trust Construction Co. Ltd. | 503,400 | 24,387,189 | |||
Leopalace21 Corp. | 671,200 | 21,243,195 | |||
Mitsubishi Estate Co. Ltd. | 5,333,000 | 166,086,593 | |||
Mitsui Fudosan Co. Ltd. | 4,210,000 | 116,189,391 | |||
NTT Urban Development Corp. | 4,197 | 9,493,151 | |||
Sumitomo Realty & Development Co. Ltd. | 1,678,000 | 66,845,255 | |||
Tokyo Tatemono Co. Ltd. | 1,678,000 | 23,310,866 | |||
Tokyu Land Corp. | 1,678,000 | 19,954,441 | |||
447,510,081 | |||||
REAL ESTATE INVESTMENT TRUSTS – 0.52% | |||||
Japan Real Estate | |||||
Investment Corp. | 1,678 | 20,535,089 | |||
Japan Retail Fund Investment Corp. | 1,678 | 15,578,343 | |||
Nippon Building Fund Inc. | 2,456 | 35,652,783 | |||
Nomura Real Estate Office Fund Inc. | 520 | 6,144,238 | |||
77,910,453 |
SCHEDULEOF INVESTMENTS | 7 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI JAPAN INDEX FUND
February 28, 2007
Security | Shares | Value | |||
RETAIL – 2.97% | |||||
AEON Co. Ltd. | 2,852,600 | $ | 59,466,785 | ||
Aoyama Trading Co. Ltd. | 335,600 | 10,621,598 | |||
Autobacs Seven Co. Ltd. | 167,800 | 6,670,363 | |||
Citizen Watch Co. Ltd. | 1,845,800 | 17,369,853 | |||
Daimaru Inc. (The) | 1,678,000 | 23,240,055 | |||
FamilyMart Co. Ltd. | 335,600 | 9,205,385 | |||
Fast Retailing Co. Ltd. | 277,000 | 22,630,375 | |||
Isetan Co. Ltd. | 1,006,800 | 18,354,121 | |||
Lawson Inc. | 335,600 | 12,859,214 | |||
Marui Co. Ltd. | 1,510,200 | 18,965,925 | |||
Mitsukoshi Ltd. | 1,678,000 | 7,775,010 | |||
Nitori Co. Ltd. | 167,800 | 7,874,144 | |||
Ryohin Keikaku Co. Ltd. | 91,300 | 6,241,550 | |||
Seven & I Holdings Co. Ltd. | 4,027,280 | 129,161,193 | |||
Shimachu Co. Ltd. | 335,600 | 10,055,113 | |||
Shimamura Co. Ltd. | 47,700 | 5,402,659 | |||
Takashimaya Co. Ltd. | 1,678,000 | 21,979,626 | |||
UNY Co. Ltd. | 1,245,000 | 17,348,145 | |||
USS Co. Ltd. | 117,460 | 7,385,551 | |||
Yamada Denki Co. Ltd. | 335,600 | 29,938,743 | |||
442,545,408 | |||||
SEMICONDUCTORS – 0.98% | |||||
Elpida Memory Inc.a,b | 335,600 | 15,011,858 | |||
NEC Electronics Corp.a,b | 167,800 | 4,531,882 | |||
Rohm Co. Ltd. | 503,800 | 46,219,403 | |||
Sanken Electric Co. Ltd. | 332,000 | 3,213,943 | |||
Shinko Electric Industries Co. Ltd. | 167,800 | 3,823,775 | |||
Sumco Corp. | 335,600 | 12,434,350 | |||
Tokyo Electron Ltd. | 839,052 | 60,900,934 | |||
146,136,145 | |||||
SHIPBUILDING – 0.09% | |||||
Mitsui Engineering & | |||||
Shipbuilding Co. Ltd. | 3,356,000 | 13,425,700 | |||
13,425,700 | |||||
SOFTWARE – 0.17% | |||||
Fuji Soft ABC Inc. | 167,800 | 4,900,097 | |||
Konami Corp. | 504,200 | 13,404,482 | |||
Nomura Research Institute Ltd. | 42,000 | 6,377,010 | |||
24,681,589 |
Security | Shares | Value | |||
STORAGE & WAREHOUSING – 0.04% | |||||
Mitsubishi Logistics Corp. | 319,000 | $ | 5,532,726 | ||
5,532,726 | |||||
TELECOMMUNICATIONS – 2.92% | |||||
Hikari Tsushin Inc. | 167,800 | 7,590,902 | |||
KDDI Corp. | 11,746 | 91,898,063 | |||
Nippon Telegraph & Telephone Corp. | 25,170 | 133,407,267 | |||
NTT Data Corp. | 6,712 | 33,989,112 | |||
NTT DoCoMo Inc. | 88,934 | 162,878,660 | |||
Oki Electric Industry Co. Ltd.b | 3,356,000 | 5,919,770 | |||
435,683,774 | |||||
TEXTILES – 1.00% | |||||
Kuraray Co. Ltd. | 1,678,000 | 18,325,796 | |||
Mitsubishi Rayon Co. Ltd. | 3,356,000 | 22,121,247 | |||
Nisshinbo Industries Inc. | 1,678,000 | 22,092,923 | |||
Teijin Ltd. | 5,034,000 | 27,361,235 | |||
Toray Industries Inc. | 6,712,000 | 48,434,485 | |||
Toyobo Co. Ltd. | 3,356,000 | 10,734,894 | |||
149,070,580 | |||||
TOYS, GAMES & HOBBIES – 0.90% | |||||
Nintendo Co. Ltd. | 503,400 | 133,832,129 | |||
133,832,129 | |||||
TRANSPORTATION – 4.34% | |||||
Central Japan Railway Co. | 8,390 | 100,551,125 | |||
East Japan Railway Co. | 16,780 | 128,592,142 | |||
Hankyu Hanshin Holdings Inc. | 5,039,800 | 33,730,526 | |||
Kawasaki Kisen Kaisha Ltd. | 3,356,000 | 33,365,979 | |||
Keihin Electric Express Railway Co. Ltd.b | 1,682,000 | 13,784,209 | |||
Keio Corp. | 3,356,000 | 23,622,433 | |||
Kintetsu Corp. | 8,394,000 | 27,629,320 | |||
Mitsui O.S.K. Lines Ltd. | 5,034,000 | 56,846,791 | |||
Nippon Express Co. Ltd. | 5,034,000 | 32,119,711 | |||
Nippon Yusen Kabushiki Kaisha | 5,034,000 | 39,724,775 | |||
Odakyu Electric Railway Co. Ltd. | 1,678,000 | 12,561,810 | |||
Seino Holdings Co. Ltd. | 1,243,000 | 12,484,028 | |||
Tobu Railway Co. Ltd. | 5,034,000 | 26,044,157 | |||
Tokyu Corp. | 5,034,000 | 40,574,503 | |||
West Japan Railway Co. | 8,390 | 39,653,965 |
8 | 2007 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI JAPAN INDEX FUND
February 28, 2007
Security | Shares or Principal | Value | ||||
Yamato Holdings Co. Ltd. | 1,678,000 | $ | 26,837,237 | |||
648,122,711 | ||||||
VENTURE CAPITAL – 0.07% | ||||||
JAFCO Co. Ltd. | 167,800 | 10,310,031 | ||||
10,310,031 | ||||||
TOTAL COMMON STOCKS | 14,894,145,655 | |||||
SHORT-TERM INVESTMENTS – 0.95% | ||||||
CERTIFICATES OF DEPOSITc – 0.04% | ||||||
Credit Suisse First Boston NY | ||||||
5.28% - 5.43%, | $ | 1,450,374 | 1,450,374 | |||
Deutsche Bank AG | ||||||
5.35%, 08/08/07 | 2,417,289 | 2,417,289 | ||||
Washington Mutual Bank | ||||||
5.33%, 03/19/07 | 2,417,289 | 2,417,289 | ||||
6,284,952 | ||||||
COMMERCIAL PAPERc – 0.20% | ||||||
Amstel Funding Corp. | ||||||
5.22%, | 919,643 | 913,426 | ||||
BNP Paribas Finance Inc. | ||||||
5.12%, 06/06/07 | 338,421 | 333,756 | ||||
Bryant Park Funding LLC | ||||||
5.27%, 03/06/07d | 238,287 | 238,112 | ||||
Cantabric Finance LLC | ||||||
5.25%, 03/06/07d | 773,533 | 772,969 | ||||
Cheyne Finance LLC | ||||||
5.24%, | 725,187 | 719,979 | ||||
Concord Minutemen Capital Co. LLC | ||||||
5.29%, 03/19/07d | 492,808 | 491,504 | ||||
Crown Point Capital Co. LLC | ||||||
5.20%, 07/18/07d | 1,116,933 | 1,094,507 | ||||
Edison Asset Securitization LLC | ||||||
5.21%, 04/11/07d | 400,719 | 398,341 | ||||
Five Finance Inc. | ||||||
5.22%, 04/20/07d | 444,781 | 441,557 |
Security | Principal | Value | ||||
General Electric Capital Corp. | ||||||
5.12% - 5.20%, | $ | 1,692,103 | $ | 1,663,040 | ||
Giro Funding Corp. | ||||||
5.25%, 03/05/07 - 03/12/07d | 1,585,742 | 1,583,830 | ||||
Grampian Funding LLC | ||||||
5.14% - 5.23%, | 1,885,486 | 1,862,068 | ||||
Harrier Finance Funding LLC | ||||||
5.12%, 06/06/07d | 966,916 | 953,590 | ||||
Irish Permanent Treasury PLC | ||||||
5.18%, 07/10/07 | 483,458 | 474,345 | ||||
KKR Pacific Funding Trust | ||||||
5.29%, 03/13/07d | 1,208,645 | 1,206,513 | ||||
Lexington Parker Capital Co. LLC | ||||||
5.18% - 5.20%, | 1,221,679 | 1,200,884 | ||||
Liberty Street Funding Corp. | ||||||
5.27%, 03/06/07d | 116,030 | 115,945 | ||||
Lockhart Funding LLC | ||||||
5.25%, | 2,181,323 | 2,160,603 | ||||
Nationwide Building Society | ||||||
5.21%, 04/13/07d | 918,570 | 912,854 | ||||
Nestle Capital Corp. | ||||||
5.19%, 08/09/07 | 580,149 | 566,684 | ||||
Sedna Finance Inc. | ||||||
5.22%, 04/17/07d | 551,142 | 547,386 | ||||
Simba Funding Corp. | ||||||
5.20%, 07/23/07d | 966,916 | 946,804 | ||||
Societe Generale | ||||||
5.18%, 05/16/07 | 2,417,289 | 2,390,855 | ||||
Thames Asset Global Securitization No. 1 Inc. | ||||||
5.25% - 5.28%, | 3,683,524 | 3,679,961 | ||||
Thornburg Mortgage Capital Resources LLC | ||||||
5.28%, 03/12/07d | 707,782 | 706,640 |
SCHEDULEOF INVESTMENTS | 9 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI JAPAN INDEX FUND
February 28, 2007
Security | Shares or Principal | Value | ||||
Three Pillars Funding Corp. | ||||||
5.26%, | $ | 507,611 | $ | 507,212 | ||
Tulip Funding Corp. | ||||||
5.29%, 03/15/07d | 1,856,101 | 1,852,282 | ||||
Westpac Banking Corp. | ||||||
5.20%, 07/12/07d | 870,224 | 853,506 | ||||
Zela Finance Inc. | ||||||
5.20%, 07/16/07d | 580,149 | 568,669 | ||||
30,157,822 | ||||||
MEDIUM-TERM NOTESc – 0.02% | ||||||
Bank of America N.A. | ||||||
5.28%, 04/20/07 | 241,729 | 241,729 | ||||
Cullinan Finance Corp. | ||||||
5.71%, 06/28/07d | 725,187 | 725,187 | ||||
K2 USA LLC | ||||||
5.39%, 06/04/07d | 725,187 | 725,187 | ||||
Sigma Finance Inc. | ||||||
5.13% - 5.51%, | 1,131,292 | 1,131,292 | ||||
2,823,395 | ||||||
MONEY MARKET FUNDS – 0.06% | ||||||
Barclays Global Investors Funds Institutional Money Market Fund, Institutional Shares | ||||||
5.30%e,f | 8,015,452 | 8,015,452 | ||||
8,015,452 | ||||||
REPURCHASE AGREEMENTSc – 0.12% | ||||||
Banc of America Securities LLC | $ | 1,933,832 | 1,933,832 |
Security | Principal | Value | ||||
Bear Stearns Companies Inc. (The) | $ | 1,450,374 | $ | 1,450,374 | ||
BNP Securities Corp. | 96,692 | 96,692 | ||||
Citigroup Global Markets Holdings Inc. | 1,450,374 | 1,450,374 | ||||
Citigroup Global Markets Holdings Inc. | 1,933,832 | 1,933,832 | ||||
Citigroup Global Markets Holdings Inc. | 1,063,607 | 1,063,607 |
10 | 2007 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI JAPAN INDEX FUND
February 28, 2007
Security | Principal | Value | ||||
Citigroup Global Markets Holdings Inc. | $ | 580,149 | $ | 580,149 | ||
Goldman Sachs Group Inc. (The) | 358,793 | 358,793 | ||||
Greenwich Capital Markets Inc. | 4,061,046 | 4,061,046 | ||||
HSBC Securities Inc. | 483,458 | 483,458 | ||||
JP Morgan Securities Inc. | 241,729 | 241,729 |
Security | Principal | Value | ||||
Merrill Lynch & Co. Inc. | $ | 966,916 | $ | 966,916 | ||
Morgan Stanley | 966,916 | 966,916 | ||||
Morgan Stanley | 676,841 | 676,841 | ||||
Wachovia Capital | 2,127,215 | 2,127,215 | ||||
18,391,774 | ||||||
TIME DEPOSITSc – 0.04% | ||||||
Bank of Nova Scotia | ||||||
5.30%, 03/02/07 | 405,486 | 405,486 | ||||
Chase Bank USA N.A. | ||||||
5.38%, 03/01/07 | 1,450,374 | 1,450,374 | ||||
Citibank N.A. | ||||||
5.47%, 03/01/07 | 1,450,374 | 1,450,374 |
SCHEDULEOF INVESTMENTS | 11 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI JAPAN INDEX FUND
February 28, 2007
Security | Principal | Value | ||||
Deutsche Bank AG | ||||||
5.38%, 03/01/07 | $ | 2,271,005 | $ | 2,271,005 | ||
5,577,239 | ||||||
VARIABLE & FLOATING RATE NOTESc – 0.47% | ||||||
Allstate Life Global Funding II | ||||||
5.30% - 5.40%, | 2,475,304 | 2,475,550 | ||||
American Express Centurion Bank | ||||||
5.41%, 07/19/07 | 1,063,607 | 1,064,086 | ||||
American Express Credit Corp. | ||||||
5.42%, 03/05/08 | 290,075 | 290,216 | ||||
AmeriCredit Automobile Receivables Trust | ||||||
5.35%, 03/06/07 | 44,067 | 44,067 | ||||
Arkle Master Issuer PLC Series 2006-1A Class 1A | ||||||
5.30%, 11/19/07d | 725,187 | 725,187 | ||||
ASIF Global Financing | ||||||
5.40%, 05/03/07d | 96,692 | 96,700 | ||||
Australia & New Zealand Banking Group Ltd. | ||||||
5.32%, 02/22/08d | 628,495 | 628,495 | ||||
Bank of Ireland | ||||||
5.30% - 5.32%, | 1,402,028 | 1,402,068 | ||||
Beta Finance Inc. | ||||||
5.29% - 5.41%, | 2,465,635 | 2,465,680 | ||||
BMW US Capital LLC | ||||||
5.32%, 01/15/08d | 966,916 | 966,916 | ||||
BNP Paribas | ||||||
5.33%, 11/19/07d | 1,788,794 | 1,788,794 | ||||
Brigantine High Grade Funding Ltd. | ||||||
5.40%, 09/05/07d | 928,239 | 928,152 | ||||
Carlyle Loan Investment Ltd. | ||||||
5.37%, | 705,849 | 705,849 | ||||
CC USA Inc. | ||||||
5.36%, 07/30/07d | 483,458 | 483,485 |
Security | Principal | Value | ||||
Commodore CDO Ltd. | ||||||
5.44%, 12/12/07d | $ | 241,729 | $ | 241,729 | ||
Credit Agricole SA | ||||||
5.33%, 11/23/07 | 966,916 | 966,916 | ||||
Credit Suisse First Boston NY | ||||||
5.36%, 04/24/07 | 483,458 | 483,461 | ||||
Cullinan Finance Corp. | ||||||
5.36%, 04/25/07d | 241,729 | 241,729 | ||||
DaimlerChrysler Auto Trust Series 2006-C Class A1 | ||||||
5.33%, 10/08/07d | 74,170 | 74,170 | ||||
DEPFA Bank PLC | ||||||
5.40%, 12/14/07d | 966,916 | 966,916 | ||||
Dorada Finance Inc. | ||||||
5.33% - 5.41%, | 1,111,953 | 1,111,971 | ||||
Eli Lilly Services Inc. | ||||||
5.31%, 03/01/07d | 645,416 | 645,416 | ||||
Fifth Third Bancorp | ||||||
5.32%, 02/22/08d | 1,933,832 | 1,933,832 | ||||
Five Finance Inc. | ||||||
5.31% - 5.37%, | 628,495 | 628,464 | ||||
General Electric Capital Corp. | ||||||
5.28% - 5.45%, | 1,015,262 | 1,015,361 | ||||
Granite Master Issuer PLC | ||||||
5.29%, 08/20/07d | 3,384,205 | 3,384,205 | ||||
Harrier Finance Funding LLC | ||||||
5.29% - 5.36%, | 1,256,991 | 1,256,998 | ||||
Hartford Life Global Funding Trust | ||||||
5.36% - 5.40%, | 1,450,374 | 1,450,467 | ||||
HBOS Treasury Services PLC | ||||||
5.46%, 01/24/08d | 966,916 | 966,916 | ||||
Holmes Financing PLC | ||||||
5.29%, 07/16/07d | 1,692,103 | 1,692,103 | ||||
JP Morgan Securities Inc. | ||||||
5.40%, 11/16/07 | 1,933,832 | 1,933,832 |
12 | 2007 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI JAPAN INDEX FUND
February 28, 2007
Security | Principal | Value | ||||
JPMorgan Chase & Co. | ||||||
5.29% - 5.45%, | $ | 2,659,018 | $ | 2,659,019 | ||
K2 USA LLC | ||||||
5.20% - 5.33%, | 725,187 | 725,175 | ||||
Kestrel Funding LLC | ||||||
5.30%, 07/11/07d | 386,766 | 386,751 | ||||
Kommunalkredit Austria AG | ||||||
5.32%, 02/08/08d | 580,149 | 580,149 | ||||
Leafs LLC | ||||||
5.32%, 01/22/08d | 936,816 | 936,816 | ||||
Links Finance LLC | ||||||
5.28% - 5.35%, | 1,063,607 | 1,063,586 | ||||
Lothian Mortgages Master Issuer PLC | ||||||
5.29%, 04/24/07d | 340,888 | 340,888 | ||||
Marshall & Ilsley Bank | ||||||
5.32%, 02/15/08 | 531,804 | 531,804 | ||||
Master Funding LLC | ||||||
5.35%, | 1,749,856 | 1,749,856 | ||||
Merrill Lynch & Co. Inc. | ||||||
5.46%, 05/30/07g | 1,063,607 | 1,063,607 | ||||
Metropolitan Life Global Funding I | ||||||
5.33%, 03/06/08d | 1,450,374 | 1,450,374 | ||||
Metropolitan Life Insurance Funding Agreement | ||||||
5.44%, 08/01/07d,g | 96,692 | 96,692 | ||||
Mound Financing PLC | ||||||
5.29%, 05/08/07d | 908,901 | 908,901 | ||||
Natexis Banques Populaires | ||||||
5.33% - 5.35%, | 1,547,065 | 1,547,047 | ||||
National City Bank of Indiana | ||||||
5.34%, 05/21/07 | 483,458 | 483,467 | ||||
Nationwide Building Society | ||||||
5.37% - 5.48%, | 3,190,822 | 3,191,181 |
Security | Principal | Value | ||||
Newcastle Ltd. | ||||||
5.34%, | $ | 969,333 | $ | 969,205 | ||
Northern Rock PLC | ||||||
5.38%, 02/01/08d | 1,160,299 | 1,160,321 | ||||
Northlake CDO I | ||||||
5.42%, 09/06/07d | 290,075 | 290,075 | ||||
Pricoa Global Funding I | ||||||
5.31%, 02/27/08d | 1,305,336 | 1,305,336 | ||||
Sedna Finance Inc. | ||||||
5.32% - 5.34%, | 1,402,028 | 1,402,018 | ||||
Skandinaviska Enskilda Banken | ||||||
5.32%, 02/15/08d | 966,916 | 966,916 | ||||
Strips III LLC | ||||||
5.37%, 07/24/07d | 196,751 | 196,751 | ||||
SunTrust Bank | ||||||
5.29%, 05/01/07 | 966,916 | 966,924 | ||||
Tango Finance Corp. | ||||||
5.27% - 5.34%, | 2,359,275 | 2,359,196 | ||||
Union Hamilton Special Funding LLC | ||||||
5.36% - 5.37%, | 1,595,411 | 1,595,411 | ||||
Wachovia Asset Securitization Inc. | ||||||
5.31%, 03/25/07d | 1,091,473 | 1,091,473 | ||||
Wachovia Bank N.A. | ||||||
5.36%, 05/22/07 | 1,933,832 | 1,933,832 | ||||
Wal-Mart Stores Inc. | ||||||
5.50%, 07/16/07d | 725,187 | 725,370 | ||||
Wells Fargo & Co. | ||||||
5.33%, 11/15/07d | 483,458 | 483,477 | ||||
WhistleJacket Capital Ltd. | ||||||
5.28% - 5.35%, | 725,187 | 725,190 | ||||
White Pine Finance LLC | ||||||
5.28% - 5.32%, | 2,900,747 | 2,900,487 |
SCHEDULEOF INVESTMENTS | 13 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI JAPAN INDEX FUND
February 28, 2007
Security | Principal | Value | ||||
Wind Master Trust | ||||||
5.31%, 07/25/07d | $386,766 | $ | 386,766 | |||
70,233,792 | ||||||
TOTAL SHORT-TERM INVESTMENTS | 141,484,426 | |||||
TOTAL INVESTMENTS IN SECURITIES – 100.80% | 15,035,630,081 | |||||
Other Assets, Less Liabilities – (0.80)% | (119,634,157 | ) | ||||
NET ASSETS – 100.00% | $ | 14,915,995,924 | ||||
a | Non-income earning security. |
b | All or a portion of this security represents a security on loan. See Note 5. |
c | All or a portion of this security (these securities) represent(s) an investment of securities lending collateral. See Note 5. |
d | This security or a portion of these securities may be resold to qualified institutional buyers under Rule 144A or pursuant to Section 4(2) of the Securities Act of 1933. |
e | Affiliated issuer. See Note 2. |
f | The rate quoted is the annualized seven-day yield of the fund at period end. |
g | 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 financial statements.
14 | 2007 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Statement of Assets and Liabilities (Unaudited)
iSHARES®, INC.
February 28, 2007
iShares MSCI Japan Index Fund | ||||
ASSETS | ||||
Investments, at cost: | ||||
Unaffiliated issuers | $ | 11,435,442,434 | ||
Affiliated issuers (Note 2) | 8,015,452 | |||
Total cost of investments | $ | 11,443,457,886 | ||
Investments in securities, at value (including securities on loana) (Note 1): | ||||
Unaffiliated issuers | $ | 15,027,614,629 | ||
Affiliated issuers (Note 2) | 8,015,452 | |||
Total value of investments | 15,035,630,081 | |||
Foreign currency, at valueb | 12,428,015 | |||
Receivables: | ||||
Investment securities sold | 11,532,326 | |||
Dividends and interest | 8,424,200 | |||
Capital shares sold | 3,448,881 | |||
Total Assets | 15,071,463,503 | |||
LIABILITIES | ||||
Payables: | ||||
Investment securities purchased | 16,260,831 | |||
Collateral for securities on loan (Note 5) | 133,468,974 | |||
Investment advisory fees (Note 2) | 5,737,774 | |||
Total Liabilities | 155,467,579 | |||
NET ASSETS | $ | 14,915,995,924 | ||
Net assets consist of: | ||||
Paid-in capital | $ | 11,401,193,554 | ||
Distributions in excess of net investment income | (33,330,905 | ) | ||
Accumulated net realized loss | (44,169,848 | ) | ||
Net unrealized appreciation on investments and translation of assets and liabilities in foreign currencies | 3,592,303,123 | |||
NET ASSETS | $ | 14,915,995,924 | ||
Shares outstanding | 1,006,800,000 | |||
Net asset value per share | $ | 14.82 | ||
a | Securities on loan with market value of $126,654,327. See Note 5. |
b | Cost of foreign currency: $12,368,802. |
See notes to financial statements.
FINANCIAL STATEMENTS | 15 |
Table of Contents
Statement of Operations (Unaudited)
iSHARES®, INC.
Six months ended February 28, 2007
iShares MSCI Japan Index Fund | ||||
NET INVESTMENT INCOME | ||||
Dividends from unaffiliated issuersa | $ | 68,574,053 | ||
Interest from affiliated issuers (Note 2) | 148,979 | |||
Securities lending income | 1,172,987 | |||
Total investment income | 69,896,019 | |||
EXPENSES | ||||
Investment advisory fees (Note 2) | 35,600,110 | |||
Total expenses | 35,600,110 | |||
Net investment income | 34,295,909 | |||
NET REALIZED AND UNREALIZED GAIN (LOSS) | ||||
Net realized gain (loss) from: | ||||
Investments in unaffiliated issuers | (11,253,251 | ) | ||
In-kind redemptions | 194,619,021 | |||
Foreign currency transactions | 29,467 | |||
Net realized gain | 183,395,237 | |||
Net change in unrealized appreciation (depreciation) on: | ||||
Investments | 865,881,198 | |||
Translation of assets and liabilities in foreign currencies | 367,242 | |||
Net change in unrealized appreciation (depreciation) | 866,248,440 | |||
Net realized and unrealized gain | 1,049,643,677 | |||
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS | $ | 1,083,939,586 | ||
a | Net of foreign withholding tax of $5,127,454. |
See notes to financial statements.
16 | 2007 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
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Statements of Changes in Net Assets
iSHARES®, INC.
iShares MSCI Japan Index Fund | ||||||||
Six months ended February 28, 2007 (Unaudited) | Year ended August 31, 2006 | |||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||
OPERATIONS: | ||||||||
Net investment income | $ | 34,295,909 | $ | 60,448,936 | ||||
Net realized gain | 183,395,237 | 448,842,325 | ||||||
Net change in unrealized appreciation (depreciation) | 866,248,440 | 1,877,307,601 | ||||||
Net increase in net assets resulting from operations | 1,083,939,586 | 2,386,598,862 | ||||||
DISTRIBUTIONS TO SHAREHOLDERS: | ||||||||
From net investment income | (97,091,876 | ) | (55,636,178 | ) | ||||
Total distributions to shareholders | (97,091,876 | ) | (55,636,178 | ) | ||||
CAPITAL SHARE TRANSACTIONS: | ||||||||
Proceeds from shares sold | 778,036,389 | 5,381,707,859 | ||||||
Cost of shares redeemed | (573,478,584 | ) | (1,236,187,530 | ) | ||||
Net increase in net assets from capital share transactions | 204,557,805 | 4,145,520,329 | ||||||
INCREASE IN NET ASSETS | 1,191,405,515 | 6,476,483,013 | ||||||
NET ASSETS | ||||||||
Beginning of period | 13,724,590,409 | 7,248,107,396 | ||||||
End of period | $ | 14,915,995,924 | $ | 13,724,590,409 | ||||
Undistributed (distributions in excess of) net investment income included in net assets at end of period | $ | (33,330,905 | ) | $ | 29,465,062 | |||
SHARES ISSUED AND REDEEMED | ||||||||
Shares sold | 54,600,000 | 426,600,000 | ||||||
Shares redeemed | (42,000,000 | ) | (91,800,000 | ) | ||||
Net increase in shares outstanding | 12,600,000 | 334,800,000 | ||||||
See notes to financial statements.
FINANCIAL STATEMENTS | 17 |
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iSHARES®, INC.
(For a share outstanding throughout each period)
iShares MSCI Japan Index Fund | ||||||||||||||||||||||||
Six months ended Feb. 28, 2007 (Unaudited) | Year ended Aug. 31, 2006 | Year ended Aug. 31, 2005 | Year ended Aug. 31, 2004 | Year ended Aug. 31, 2003 | Year ended Aug. 31, 2002 | |||||||||||||||||||
Net asset value, beginning of period | $ | 13.80 | $ | 10.99 | $ | 9.89 | $ | 8.29 | $ | 7.77 | $ | 9.07 | ||||||||||||
Income from investment operations: | ||||||||||||||||||||||||
Net investment income (loss)a | 0.03 | 0.06 | 0.06 | 0.03 | 0.00 | b | (0.01 | ) | ||||||||||||||||
Net realized and unrealized gain (loss)c | 1.09 | 2.81 | 1.08 | 1.57 | 0.52 | (1.29 | ) | |||||||||||||||||
Total from investment operations | 1.12 | 2.87 | 1.14 | 1.60 | 0.52 | (1.30 | ) | |||||||||||||||||
Less distributions from: | ||||||||||||||||||||||||
Net investment income | (0.10 | ) | (0.06 | ) | (0.04 | ) | (0.00 | )b | – | – | ||||||||||||||
Total distributions | (0.10 | ) | (0.06 | ) | (0.04 | ) | (0.00 | )b | – | – | ||||||||||||||
Net asset value, end of period | $ | 14.82 | $ | 13.80 | $ | 10.99 | $ | 9.89 | $ | 8.29 | $ | 7.77 | ||||||||||||
Total return | 8.15 | %d | 26.10 | % | 11.58 | % | 19.32 | % | 6.69 | % | (14.33 | )% | ||||||||||||
Ratios/Supplemental data: | ||||||||||||||||||||||||
Net assets, end of period (000s) | $ | 14,915,996 | $ | 13,724,590 | $ | 7,248,107 | $ | 5,863,332 | $ | 1,726,855 | $ | 666,376 | ||||||||||||
Ratio of expenses to average net assetse | 0.52 | % | 0.54 | % | 0.57 | % | 0.64 | %f | 0.84 | % | 0.84 | % | ||||||||||||
Ratio of net investment income (loss) to average net assetse | 0.50 | % | 0.48 | % | 0.59 | % | 0.28 | % | 0.03 | % | (0.12 | )% | ||||||||||||
Portfolio turnover rateg | 1 | % | 8 | % | 6 | % | 5 | % | 2 | % | 2 | % |
a | Based on average shares outstanding throughout each period. |
b | Rounds to less than $0.01. |
c | The amounts reported may not accord with the change in aggregate gains and losses in securities due to the timing of capital share transactions. |
d | Not annualized. |
e | Annualized for periods of less than one year. |
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 | Portfolio turnover rates exclude portfolio securities received or delivered as a result of processing capital share transactions in Creation Units. |
See notes to financial statements.
18 | 2007 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
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Notes to 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, 2007, 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.
Pursuant to 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 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”).
NOTESTO FINANCIAL STATEMENTS | 19 |
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Notes to 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 rate different 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 on the respective dates 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, 2007.
As of August 31, 2006, 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, $8,733,802 and $68,122,871 expiring in 2009, 2010, 2011, 2012, 2013 and 2014, respectively. Such losses may be applied against any net realized taxable gains in each succeeding year or until their respective expiration dates, 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 marked-to-market gains.
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
20 | 2007 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
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Notes to Financial Statements (Unaudited) (Continued)
iSHARES®, INC.
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, 2007, the cost of investments for federal income tax purposes was $11,521,442,973. Net unrealized appreciation was $3,514,187,108, of which $3,773,549,916 represented gross unrealized appreciation on securities and $259,362,808 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.
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 of the average daily 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 Average Daily Net Assets | |||
0.59% | First $7 billion | |||
0.54 | Over $7 billion, up to and including $11 billion | |||
0.49 | Over $11 billion, up to and including $24 billion | |||
0.44 | Over $24 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. Bar Cap and BGI are affiliates of BGFA, the Fund’s investment adviser. As securities lending agent,
NOTESTO FINANCIAL STATEMENTS | 21 |
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Notes to Financial Statements (Unaudited) (Continued)
iSHARES®, INC.
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, 2007, BGI earned securities lending agent fees of $1,172,987.
Cross trades for the six months ended February 28, 2007 were executed by the Fund pursuant to Rule 17a-7 under the 1940 Act. 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.
The Fund may invest in the Institutional Shares of certain money market funds managed by BGFA, the Fund’s investment adviser, including the Government Money Market Fund (“GMMF”), Institutional Money Market Fund (“IMMF”), Prime Money Market Fund (“PMMF”) and Treasury Money Market Fund (“TMMF”) of Barclays Global Investors Funds. The GMMF, IMMF, PMMF and TMMF 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, Prime Money Market Master Portfolio and Treasury Money Market Master Portfolio (collectively, the “Money Market Master Portfolios”), respectively, which are also managed by BGFA.While the GMMF, IMMF, PMMF and TMMF do not directly charge an investment advisory fee, the Money Market Master Portfolios in which they invest do charge an investment advisory fee. Income distributions from the GMMF, IMMF, PMMF and TMMF are declared daily and paid monthly from net investment income. Income distributions earned by the Fund from temporary cash investments are recorded as interest from affiliated issuers in the accompanying Statement of Operations. Income distributions earned by the Fund from the investment of securities lending collateral, if any, are included in securities lending income in the accompanying Statement of Operations.
As of February 28, 2007, certain directors and officers of the Company are also officers of BGI and/or BGFA.
3. INVESTMENT PORTFOLIO TRANSACTIONS
Purchases and sales of investments (excluding in-kind transactions and short-term investments) for the six months ended February 28, 2007, aggregated $137,184,094 and $209,831,330, respectively.
In-kind purchases and sales (see Note 4) for the six months ended February 28, 2007, aggregated $745,135,317 and $541,965,252, respectively.
4. CAPITAL SHARE TRANSACTIONS
The Company is authorized to issue 10.9 billion shares of $.001 par value capital stock. As of February 28, 2007, 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. Investors purchasing and redeeming Creation Units pay a purchase transaction fee and a redemption transaction fee directly to Investors Bank, the administrator, to offset transfer and other transaction costs associated with the issuance and redemption of Creation Units.
22 | 2007 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
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Notes to Financial Statements (Unaudited) (Continued)
iSHARES®, INC.
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, 2007, 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 or non-U.S. Government debt securities. The market value of the securities on loan as of February 28, 2007 and the value of the related collateral are disclosed in the Statement of Assets and Liabilities. Securities lending income, as disclosed in the Fund’s Statement of Operations, represents the income earned from the investment of the cash collateral, net of rebates paid to, or fees paid by, borrowers and less the fees paid to BGI as securities lending agent.
6. RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS
In June 2006, the Financial Accounting Standards Board (“FASB”) issued FASB Interpretation No. 48 (“FIN 48”), “Accounting for Uncertainty in Income Taxes – an interpretation of FASB Statement No.109.” FIN 48 clarifies the accounting for uncertainty in income taxes recognized in accordance with FASB Statement No. 109, “Accounting for Income Taxes.” This interpretation prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. It also provides guidance on de-recognition, classification, interest and penalties, accounting in interim periods, disclosure and transition. FIN 48 is effective for fiscal years beginning after December 15, 2006. The SEC staff has stated that it would not object if a fund does not implement FIN 48 in its NAV calculation until the date of the fund’s last NAV calculation in the first required financial statement reporting period for its fiscal year beginning after December 15, 2006. The Company is currently evaluating the impact of applying the various provisions of FIN 48.
In September 2006, FASB issued Statement of Financial Accounting Standards No. 157 (“FAS 157”), “Fair Value Measurements.” FAS 157 defines fair value, establishes a framework for measuring fair value in accordance with generally accepted accounting principles and expands disclosure about fair value measurements. FAS 157 is effective for fiscal years beginning after November 15, 2007. The Company is currently evaluating the impact the adoption of FAS 157 will have on the Fund’s financial statement disclosures.
NOTESTO FINANCIAL STATEMENTS | 23 |
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Notes:
24 | 2007 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
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Notes:
NOTES | 25 |
Table of Contents
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 Domestic Subsector Index Funds
iShares Dow Jones U.S. Aerospace & Defense (ITA)
iShares Dow Jones U.S. Broker-Dealers (IAI)
iShares Dow Jones U.S. Healthcare Providers (IHF)
iShares Dow Jones U.S. Home Construction (ITB)
iShares Dow Jones U.S. Insurance (IAK)
iShares Dow Jones U.S. Medical Devices (IHI)
iShares Dow Jones U.S. Oil & Gas Exploration & Production (IEO)
iShares Dow Jones U.S. Oil Equipment & Services (IEZ)
iShares Dow Jones U.S. Pharmaceuticals (IHE)
iShares Dow Jones U.S. Regional Banks (IAT)
iShares Global Index Funds
iShares S&P Global 100 (IOO)
iShares S&P Global Consumer Discretionary Sector (RXI)
iShares S&P Global Consumer Staples Sector (KXI)
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 Industrials Sector (EXI)
iShares S&P Global Materials Sector (MXI)
iShares S&P Global Technology Sector (IXN)
iShares S&P Global Telecommunications Sector (IXP)
iShares S&P Global Utilities Sector (JXI)
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 Short Treasury (SHV)
iShares Lehman 1-3 Year Treasury (SHY)
iShares Lehman 3-7 Year Treasury (IEI)
iShares Lehman 7-10 Year Treasury (IEF)
iShares Lehman 10-20 Year Treasury (TLH)
iShares Lehman 20+ Year Treasury (TLT)
iShares Lehman TIPS (TIP)
iShares Lehman Credit (CFT)
iShares Lehman 1-3 Year Credit (CSJ)
iShares Lehman Intermediate Credit (CIU)
iShares iBoxx $ Investment Grade Corporate (LQD)
iShares Lehman Government / Credit (GBF)
iShares Lehman Intermediate Government / Credit (GVI)
iShares Lehman MBS Fixed-Rate (MBB)
iShares iBoxx $ High Yield Corporate (HYG)
iShares Specialty Index Funds
iShares KLD Select SocialSM (KLD)
iShares KLD 400 Social (DSI)
iShares Dow Jones Select Dividend (DVY)
iShares S&P U.S. Preferred Stock (PFF)
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 (“FXI”), iBoxx, KLD Research & Analytics, Inc., Morgan Stanley Capital International, Morningstar, Inc., The Nasdaq Stock Market, Inc., New York Stock Exchange LLC, 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. iBoxx is a registered trademark of International Index Company Limited. “Goldman Sachs®” is a trademark of Goldman, Sachs & Co. FXI does not make any warranty regarding the FTSE / Xinhua Index. All rights in the FTSE / Xinhua Index vest in FXI. “FTSE” is a trade and service mark of London Stock Exchange and The Financial Times; “Xinhua” is a trade and service mark of Xinhua Financial Network Limited.
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 2007 Semi-Annual Report.
4322-iS-0407
26 | 2007 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
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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.
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Item 6. | Schedule of Investments. |
The Funds’ full schedules of investments are included as part of the report 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. |
The Nominating Committee of Registrant’s Board of Directors (the “Nominating Committee”) is charged with identifying nominees to serve as Board members and recommending such nominees to the Board. The Board believes that shareholders as a group are best served by the efficient allocation of Registrant and Board resources. As such, the Board is not required to consider any person nominated by any shareholder of the Registrant (acting solely in the capacity as shareholder and not in any other capacity) to serve as an independent Director, although the Nominating Committee may consider any such person if the Nominating Committee of the Board deems it appropriate after considering all circumstances the Nominating Committee’s members deem relevant.
Item 11. | Controls and Procedures. |
(a) The Principal Executive Officer 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.
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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 and Principal Executive Officer | ||
Date: April 20, 2007 |
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 and Principal Executive Officer | ||
Date: April 20, 2007 | ||
By: | /s/ Michael A. Latham | |
Michael A. Latham, Principal Financial Officer | ||
Date: April 20, 2007 |