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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: State Street Bank and Trust Company
200 Clarendon Street, Boston, MA 02116
(Address of principal executive offices) (Zip code)
CT Corporation System
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, 2008
Date of reporting period: February 29, 2008
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Item 1. | Reports to Stockholders. |
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Table of Contents
iSHARES® MSCI AUSTRIA INDEX FUND
Performance as of February 29, 2008
The iShares MSCI Austria Index Fund (the “Fund”) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of publicly traded securities in the aggregate in the Austrian market, as measured by the MSCI Austria Investable Market IndexSM (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to 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 29, 2008, the Fund declined 8.15%, while the Index declined 9.31%.
Average Annual Total Returns | ||||||||||||||||
Year Ended 2/29/08 | Five Years Ended 2/29/08 | Ten Years Ended 2/29/08 | ||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||
(4.38)% | (4.23)% | (6.95)% | 32.17% | 32.42% | 32.39% | 13.40% | 13.28% | 13.39% | ||||||||
Cumulative Total Returns | ||||||||||||||||
Year Ended 2/29/08 | Five Years Ended 2/29/08 | Ten Years Ended 2/29/08 | ||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||
(4.38)% | (4.23)% | (6.95)% | 303.34% | 307.16% | 306.67% | 251.78% | 247.83% | 251.38% |
Effective February 1, 2008, the Fund changed its underlying index from the MSCI Austria IndexSM to the MSCI Austria Investable Market Index. Performance shown above reflects the MSCI Austria Index through January 31, 2008 and the MSCI Austria Investable Market Index thereafter.
“Average Annual Total Returns” represent the average annual change in value of an investment over the period(s) indicated. “Cumulative Total Returns” represent the total change in value of an investment over the period(s) 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 table(s) 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 2/29/08 | |||
Sector | Percentage of Net Assets | ||
Financial | 39.22 | % | |
Industrial | 16.54 | ||
Energy | 14.84 | ||
Basic Materials | 10.05 | ||
Communications | 9.93 | ||
Utilities | 6.31 | ||
Consumer Cyclical | 1.25 | ||
Consumer Non-Cyclical | 1.07 | ||
Short-Term and Other Net Assets | 0.79 | ||
TOTAL | 100.00 | % | |
TEN LARGEST FUND HOLDINGS As of 2/29/08 | |||
Security | Percentage of Net Assets | ||
Erste Bank der Oesterreichischen Sparkassen AG | 14.77 | % | |
OMV AG | 14.25 | ||
Telekom Austria AG | 9.93 | ||
voestalpine AG | 7.99 | ||
Oesterreichische Elektrizitaetswirtschafts | 5.13 | ||
Raiffeisen International Bank | 4.78 | ||
Wienerberger AG | 4.78 | ||
Meinl European Land Ltd. | 4.69 | ||
CA Immobilien Anlagen AG | 3.98 | ||
Vienna Insurance Group | 3.78 | ||
TOTAL | 74.08 | % | |
FUND PERFORMANCE OVERVIEWS | 1 |
Table of Contents
Fund Performance Overview
iSHARES® MSCI BELGIUM INDEX FUND
Performance as of February 29, 2008
The iShares MSCI Belgium Index Fund (the “Fund”) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of publicly traded securities in the aggregate in the Belgian market, as measured by the MSCI Belgium Investable Market IndexSM (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to 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 29, 2008, the Fund declined 9.10%, while the Index declined 10.95%.
Average Annual Total Returns | ||||||||||||||||
Year Ended 2/29/08 | Five Years Ended 2/29/08 | Ten Years Ended 2/29/08 | ||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||
(7.78)% | (7.76)% | (9.78)% | 26.31% | 25.97% | 25.47% | 8.15% | 8.06% | 7.72% | ||||||||
Cumulative Total Returns | ||||||||||||||||
Year Ended 2/29/08 | Five Years Ended 2/29/08 | Ten Years Ended 2/29/08 | ||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||
(7.78)% | (7.76)% | (9.78)% | 221.53% | 217.23% | 211.02% | 118.98% | 117.04% | 110.32% |
Effective December 1, 2007, the Fund changed its underlying index from the MSCI Belgium IndexSM to the MSCI Belgium Investable Market Index. Performance shown reflects the MSCI Belgium Index through November 30, 2007 and the MSCI Belgium Investable Market Index thereafter.
“Average Annual Total Returns” represent the average annual change in value of an investment over the period(s) indicated. “Cumulative Total Returns” represent the total change in value of an investment over the period(s) 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 table(s) 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 2/29/08 | |||
Sector | Percentage of Net Assets | ||
Financial | 47.56 | % | |
Consumer Non-Cyclical | 20.35 | ||
Diversified | 10.84 | ||
Basic Materials | 8.42 | ||
Communications | 7.25 | ||
Industrial | 4.40 | ||
Consumer Cyclical | 0.75 | ||
Technology | 0.10 | ||
Short-Term and Other Net Assets | 0.33 | ||
TOTAL | 100.00 | % | |
TEN LARGEST FUND HOLDINGS As of 2/29/08 | |||
Security | Percentage of Net Assets | ||
Fortis | 23.01 | % | |
KBC Group NV | 12.89 | ||
InBev | 9.19 | ||
Groupe Bruxelles Lambert SA | 5.22 | ||
Belgacom SA | 4.84 | ||
Solvay SA | 4.57 | ||
Delhaize Group | 4.37 | ||
Dexia SA | 4.32 | ||
Umicore | 3.82 | ||
Cofinimmo SA | 3.63 | ||
TOTAL | 75.86 | % | |
2 | 2008 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Fund Performance Overview
iSHARES® MSCI EMU INDEX FUND
Performance as of February 29, 2008
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 EMU markets, as measured by the MSCI EMU IndexSM (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to 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 29, 2008, the Fund declined 3.74%, while the Index declined 3.56%.
Average Annual Total Returns | ||||||||||||||||
Year Ended 2/29/08 | Five Years Ended 2/29/08 | Inception to 2/29/08 | ||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||
6.06% | 6.05% | 6.10% | 24.01% | 24.02% | 24.33% | 5.37% | 5.38% | 5.68% | ||||||||
Cumulative Total Returns | ||||||||||||||||
Year Ended 2/29/08 | Five Years Ended 2/29/08 | Inception to 2/29/08 | ||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||
6.06% | 6.05% | 6.10% | 193.24% | 193.39% | 197.08% | 48.80% | 48.97% | 52.15% |
Total returns for the period 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 period(s) indicated. “Cumulative Total Returns” represent the total change in value of an investment over the period(s) 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 table(s) 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 2/29/08 | |||
Sector | Percentage of Net Assets | ||
Financial | 27.52 | % | |
Communications | 13.87 | ||
Industrial | 11.52 | ||
Consumer Non-Cyclical | 10.74 | ||
Utilities | 10.28 | ||
Basic Materials | 7.63 | ||
Energy | 7.61 | ||
Consumer Cyclical | 7.56 | ||
Technology | 2.13 | ||
Diversified | 0.98 | ||
Short-Term and Other Net Assets | 0.16 | ||
TOTAL | 100.00 | % | |
TEN LARGEST FUND HOLDINGS As of 2/29/08 | |||
Security | Percentage of Net Assets | ||
Total SA (France) | 3.55 | % | |
Nokia OYJ (Finland) | 3.19 | ||
Telefonica SA (Spain) | 2.79 | ||
E.ON AG (Germany) | 2.59 | ||
Banco Santander SA (Spain) | 2.53 | ||
Siemens AG (Germany) | 2.45 | ||
Eni SpA (Italy) | 2.03 | ||
Allianz SE Registered (Germany) | 1.76 | ||
Daimler AG Registered (Germany) | 1.75 | ||
Banco Bilbao Vizcaya Argentaria SA (Spain) | 1.68 | ||
TOTAL | 24.32 | % | |
FUND PERFORMANCE OVERVIEWS | 3 |
Table of Contents
Fund Performance Overview
iSHARES® MSCI FRANCE INDEX FUND
Performance as of February 29, 2008
The iShares MSCI France Index Fund (the “Fund”) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of publicly traded securities in the aggregate in the French market, as measured by the MSCI France Index SM (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to 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 29, 2008, the Fund declined 5.50%, while the Index declined 5.34%.
Average Annual Total Returns | ||||||||||||||||
Year Ended 2/29/08 | Five Years Ended 2/29/08 | Ten Years Ended 2/29/08 | ||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||
1.26% | 1.59% | 1.49% | 21.71% | 21.86% | 22.01% | 8.76% | 8.78% | 9.03% | ||||||||
Cumulative Total Returns | ||||||||||||||||
Year Ended 2/29/08 | Five Years Ended 2/29/08 | Ten Years Ended 2/29/08 | ||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||
1.26% | 1.59% | 1.49% | 167.13% | 168.67% | 170.33% | 131.48% | 132.06% | 137.34% |
“Average Annual Total Returns” represent the average annual change in value of an investment over the period(s) indicated. “Cumulative Total Returns” represent the total change in value of an investment over the period(s) 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 table(s) 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 2/29/08 | |||
Sector | Percentage of Net Assets | ||
Financial | 17.49 | % | |
Consumer Non-Cyclical | 16.80 | ||
Energy | 13.31 | ||
Industrial | 13.28 | ||
Communications | 11.29 | ||
Utilities | 8.87 | ||
Basic Materials | 7.95 | ||
Consumer Cyclical | 6.90 | ||
Diversified | 2.03 | ||
Technology | 1.96 | ||
Short-Term and Other Net Assets | 0.12 | ||
TOTAL | 100.00 | % | |
TEN LARGEST FUND HOLDINGS As of 2/29/08 | |||
Security | Percentage of Net Assets | ||
Total SA | 12.21 | % | |
Sanofi-Aventis | 5.66 | ||
BNP Paribas | 5.52 | ||
ArcelorMittal | 5.40 | ||
Suez SA | 4.98 | ||
France Telecom SA | 4.62 | ||
AXA | 4.06 | ||
Vivendi | 3.46 | ||
Carrefour SA | 3.17 | ||
Societe Generale | 3.02 | ||
TOTAL | 52.10 | % | |
4 | 2008 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Fund Performance Overview
iSHARES® MSCI GERMANY INDEX FUND
Performance as of February 29, 2008
The iShares MSCI Germany Index Fund (the “Fund”) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of publicly traded securities in the aggregate in the German market, as measured by the MSCI Germany Index SM (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to 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 29, 2008, the Fund declined 1.61%, while the Index declined 1.44%.
Average Annual Total Returns | ||||||||||||||||
Year Ended 2/29/08 | Five Years Ended 2/29/08 | Ten Years Ended 2/29/08 | ||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||
14.93% | 14.80% | 15.35% | 29.61% | 29.72% | 29.89% | 7.56% | 7.58% | 7.75% | ||||||||
Cumulative Total Returns | ||||||||||||||||
Year Ended 2/29/08 | Five Years Ended 2/29/08 | Ten Years Ended 2/29/08 | ||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||
14.93% | 14.80% | 15.35% | 265.75% | 267.32% | 269.76% | 107.32% | 107.61% | 110.94% |
“Average Annual Total Returns” represent the average annual change in value of an investment over the period(s) indicated. “Cumulative Total Returns” represent the total change in value of an investment over the period(s) 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 table(s) 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 2/29/08 | |||
Sector | Percentage of Net Assets | ||
Financial | 21.12 | % | |
Consumer Cyclical | 17.41 | ||
Industrial | 16.10 | ||
Utilities | 15.32 | ||
Basic Materials | 14.04 | ||
Consumer Non-Cyclical | 5.50 | ||
Communications | 4.92 | ||
Technology | 4.33 | ||
Energy | 0.68 | ||
Diversified | 0.46 | ||
Short-Term and Other Net Assets | 0.12 | ||
TOTAL | 100.00 | % | |
TEN LARGEST FUND HOLDINGS As of 2/29/08 | |||
Security | Percentage of Net Assets | ||
E.ON AG | 10.29 | % | |
Siemens AG | 9.78 | ||
Allianz SE Registered | 7.01 | ||
Daimler AG Registered | 6.98 | ||
BASF SE | 5.49 | ||
Bayer AG | 4.91 | ||
Deutsche Bank AG | 4.84 | ||
RWE AG | 4.68 | ||
Deutsche Telekom AG | 4.67 | ||
SAP AG | 3.69 | ||
TOTAL | 62.34 | % | |
FUND PERFORMANCE OVERVIEWS | 5 |
Table of Contents
Fund Performance Overview
iSHARES® MSCI ITALY INDEX FUND
Performance as of February 29, 2008
The iShares MSCI Italy Index Fund (the “Fund”) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of publicly traded securities in the aggregate in the Italian market, as measured by the MSCI Italy Index SM (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to 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 29, 2008, the Fund declined 6.92%, while the Index declined 6.04%.
Average Annual Total Returns | ||||||||||||||||
Year Ended 2/29/08 | Five Years Ended 2/29/08 | Ten Years Ended 2/29/08 | ||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||
(4.49)% | (4.47)% | (3.34)% | 18.29% | 18.38% | 18.33% | 7.85% | 7.81% | 7.82% | ||||||||
Cumulative Total Returns | ||||||||||||||||
Year Ended 2/29/08 | Five Years Ended 2/29/08 | Ten Years Ended 2/29/08 | ||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||
(4.49)% | (4.47)% | (3.34)% | 131.63% | 132.51% | 131.97% | 112.95% | 112.12% | 112.38% |
“Average Annual Total Returns” represent the average annual change in value of an investment over the period(s) indicated. “Cumulative Total Returns” represent the total change in value of an investment over the period(s) 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 table(s) 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 2/29/08 | |||
Sector | Percentage of Net Assets | ||
Financial | 46.08 | % | |
Energy | 19.20 | ||
Utilities | 11.41 | ||
Communications | 9.25 | ||
Consumer Non-Cyclical | 5.15 | ||
Consumer Cyclical | 5.00 | ||
Industrial | 3.37 | ||
Diversified | 0.34 | ||
Short-Term and Other Net Assets | 0.20 | ||
TOTAL | 100.00 | % | |
TEN LARGEST FUND HOLDINGS As of 2/29/08 | |||
Security | Percentage of Net Assets | ||
Eni SpA | 17.89 | % | |
UniCredito SpA | 13.20 | ||
Intesa Sanpaolo SpA | 10.09 | ||
Telecom Italia SpA | 5.45 | ||
Assicurazioni Generali SpA | 4.90 | ||
Enel SpA | 4.84 | ||
Terna SpA | 4.62 | ||
Unione di Banche Italiane ScpA | 3.72 | ||
Fiat SpA | 3.09 | ||
Mediobanca SpA | 3.04 | ||
TOTAL | 70.84 | % | |
6 | 2008 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Fund Performance Overview
iSHARES® MSCI NETHERLANDS INDEX FUND
Performance as of February 29, 2008
The iShares MSCI Netherlands Index Fund (the “Fund”) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of publicly traded securities in the aggregate in the Dutch market, as measured by the MSCI Netherlands Investable Market IndexSM (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to 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 29, 2008, the Fund declined 4.61%, while the Index declined 3.45%.
Average Annual Total Returns | ||||||||||||||||
Year Ended 2/29/08 | Five Years Ended 2/29/08 | Ten Years Ended 2/29/08 | ||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||
7.74% | 7.76% | 9.27% | 22.35% | 22.42% | 22.13% | 4.02% | 4.01% | 5.13% | ||||||||
Cumulative Total Returns | ||||||||||||||||
Year Ended 2/29/08 | Five Years Ended 2/29/08 | Ten Years Ended 2/29/08 | ||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||
7.74% | 7.76% | 9.27% | 174.16% | 174.93% | 171.74% | 48.25% | 48.19% | 64.93% |
Effective February 1, 2008, the Fund changed its underlying index from the MSCI Netherlands IndexSM to the MSCI Netherlands Investable Market Index. Performance shown above reflects the MSCI Netherlands Index through January 31, 2008 and the MSCI Netherlands Investable Market Index thereafter.
“Average Annual Total Returns ”represent the average annual change in value of an investment over the period(s) indicated. “Cumulative Total Returns ”represent the total change in value of an investment over the period(s) 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 table(s) 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 2/29/08 | |||
Sector | Percentage of Net Assets | ||
Consumer Non-Cyclical | 25.99 | % | |
Financial | 24.83 | ||
Industrial | 18.65 | ||
Communications | 14.55 | ||
Basic Materials | 6.60 | ||
Technology | 4.59 | ||
Energy | 2.46 | ||
Consumer Cyclical | 1.70 | ||
Diversified | 0.52 | ||
Short-Term and Other Net Assets | 0.11 | ||
TOTAL | 100.00 | % | |
TEN LARGEST FUND HOLDINGS As of 2/29/08 | |||
Security | Percentage of Net Assets | ||
ING Groep NV | 16.16 | % | |
Unilever NV | 13.13 | ||
Koninklijke Philips Electronics NV | 11.29 | ||
Koninklijke KPN NV | 8.80 | ||
Aegon NV | 4.79 | ||
Akzo Nobel NV | 4.73 | ||
TNT NV | 4.35 | ||
Koninklijke Ahold NV | 4.30 | ||
Reed Elsevier NV | 3.48 | ||
Heineken NV | 3.46 | ||
TOTAL | 74.49 | % | |
FUND PERFORMANCE OVERVIEWS | 7 |
Table of Contents
Fund Performance Overview
iSHARES® MSCI SPAIN INDEX FUND
Performance as of February 29, 2008
The iShares MSCI Spain Index Fund (the “Fund”) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of publicly traded securities in the aggregate in the Spanish market, as measured by the MSCI Spain Index SM (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to 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 29, 2008, the Fund returned 2.20%, while the Index returned 2.21%.
Average Annual Total Returns | ||||||||||||||||
Year Ended 2/29/08 | Five Years Ended 2/29/08 | Ten Years Ended 2/29/08 | ||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||
9.29% | 9.46% | 9.66% | 27.86% | 27.91% | 28.14% | 11.09% | 11.10% | 11.13% | ||||||||
Cumulative Total Returns | ||||||||||||||||
Year Ended 2/29/08 | Five Years Ended 2/29/08 | Ten Years Ended 2/29/08 | ||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||
9.29% | 9.46% | 9.66% | 241.67% | 242.33% | 245.48% | 186.32% | 186.44% | 187.24% |
“Average Annual Total Returns ”represent the average annual change in value of an investment over the period(s) indicated. “Cumulative Total Returns” represent the total change in value of an investment over the period(s) 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 table(s) 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 2/29/08 | |||
Sector | Percentage of Net Assets | ||
Financial | 38.75 | % | |
Communications | 23.11 | ||
Utilities | 15.31 | ||
Industrial | 7.40 | ||
Energy | 6.69 | ||
Consumer Non-Cyclical | 3.79 | ||
Consumer Cyclical | 3.03 | ||
Technology | 1.14 | ||
Basic Materials | 0.68 | ||
Short-Term and Other Net Assets | 0.10 | ||
TOTAL | 100.00 | % | |
TEN LARGEST FUND HOLDINGS As of 2/29/08 | |||
Security | Percentage of Net Assets | ||
Telefonica SA | 21.38 | % | |
Banco Santander SA | 17.58 | ||
Banco Bilbao Vizcaya Argentaria SA | 10.05 | ||
Banco Popular Espanol SA | 5.06 | ||
Repsol YPF SA | 4.92 | ||
Iberdrola SA | 4.81 | ||
Gas Natural SDG SA | 3.76 | ||
Union Fenosa SA | 3.15 | ||
Actividades de Construccionesy | 2.93 | ||
Abertis Infraestructuras SA | 2.93 | ||
TOTAL | 76.57 | % | |
8 | 2008 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Fund Performance Overview
iSHARES® MSCI SWEDEN INDEX FUND
Performance as of February 29, 2008
The iShares MSCI Sweden Index Fund (the “Fund”) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of publicly traded securities in the aggregate in the Swedish market, as measured by the MSCI Sweden Index SM (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to 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 29, 2008, the Fund declined 12.00%, while the Index declined 11.87%.
Average Annual Total Returns | ||||||||||||||||
Year Ended 2/29/08 | Five Years Ended 2/29/08 | Ten Years Ended 2/29/08 | ||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||
(3.24)% | (2.97)% | (3.18)% | 27.81% | 27.83% | 28.02% | 8.34% | 8.34% | 9.38% | ||||||||
Cumulative Total Returns | ||||||||||||||||
Year Ended 2/29/08 | Five Years Ended 2/29/08 | Ten Years Ended 2/29/08 | ||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||
(3.24)% | (2.97)% | (3.18)% | 241.11% | 241.29% | 243.83% | 122.76% | 122.69% | 145.17% |
“Average Annual Total Returns” represent the average annual change in value of an investment over the period(s) indicated. “Cumulative Total Returns” represent the total change in value of an investment over the period(s) 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 table(s) 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 2/29/08 | |||
Sector | Percentage of Net Assets | ||
Industrial | 27.07 | % | |
Financial | 23.19 | ||
Communications | 20.89 | ||
Consumer Cyclical | 13.38 | ||
Basic Materials | 7.30 | ||
Consumer Non-Cyclical | 7.01 | ||
Energy | 1.03 | ||
Short-Term and Other Net Assets | 0.13 | ||
TOTAL | 100.00 | % | |
TEN LARGEST FUND HOLDINGS As of 2/29/08 | |||
Security | Percentage of Net Assets | ||
Telefonaktiebolaget LM Ericsson AB Class B | 10.63 | % | |
Nordea Bank AB | 10.41 | ||
Hennes & Mauritz AB Class B | 8.87 | ||
TeliaSonera AB | 5.93 | ||
Volvo AB Class B | 5.40 | ||
Sandvik AB | 5.06 | ||
Svenska Handelsbanken AB Class A | 4.58 | ||
Skandinaviska Enskilda Banken AB Class A | 3.86 | ||
Atlas Copco AB Class A | 3.49 | ||
Svenska Cellulosa AB Class B | 3.09 | ||
TOTAL | 61.32 | % | |
FUND PERFORMANCE OVERVIEWS | 9 |
Table of Contents
Fund Performance Overview
iSHARES® MSCI SWITZERLAND INDEX FUND
Performance as of February 29, 2008
The iShares MSCI Switzerland Index Fund (the “Fund”) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of publicly traded securities in the aggregate in the Swiss market, as measured by the MSCI Switzerland IndexSM (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to 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 29, 2008, the Fund returned 0.42%, while the Index declined 1.70%.
Average Annual Total Returns | ||||||||||||||||
Year Ended 2/29/08 | Five Years Ended 2/29/08 | Ten Years Ended 2/29/08 | ||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||
4.30% | 3.76% | 1.77% | 21.22% | 21.01% | 20.48% | 5.51% | 5.41% | 5.71% | ||||||||
Cumulative Total Returns | ||||||||||||||||
Year Ended 2/29/08 | Five Years Ended 2/29/08 | Ten Years Ended 2/29/08 | ||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||
4.30% | 3.76% | 1.77% | 161.72% | 159.45% | 153.87% | 70.97% | 69.36% | 74.32% |
“Average Annual Total Returns” represent the average annual change in value of an investment over the period(s) indicated. “Cumulative Total Returns” represent the total change in value of an investment over the period(s) 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 table(s) 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 2/29/08 | |||
Sector | Percentage of Net Assets | ||
Consumer Non-Cyclical | 50.29 | % | |
Financial | 22.72 | ||
Industrial | 10.20 | ||
Consumer Cyclical | 6.43 | ||
Basic Materials | 6.33 | ||
Communications | 2.76 | ||
Technology | 0.72 | ||
Short-Term and Other Net Assets | 0.55 | ||
TOTAL | 100.00 | % | |
TEN LARGEST FUND HOLDINGS As of 2/29/08 | |||
Security | Percentage of Net Assets | ||
Nestle SA Registered | 18.18 | % | |
Roche Holding AG Genusschein | 14.01 | ||
Novartis AG Registered | 10.15 | ||
UBS AG Registered | 5.56 | ||
Zurich Financial Services AG Registered | 4.88 | ||
ABB Ltd. Registered | 4.87 | ||
Credit Suisse Group Registered | 4.28 | ||
Syngenta AG Registered | 4.05 | ||
Swiss Reinsurance Co. Registered | 4.05 | ||
Compagnie Financiere Richemont SA A Units Bearer | 3.92 | ||
TOTAL | 73.95 | % | |
10 | 2008 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Fund Performance Overview
iSHARES® MSCI UNITED KINGDOM INDEX FUND
Performance as of February 29, 2008
The iShares MSCI United Kingdom Index Fund (the “Fund”) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of publicly traded securities in the aggregate in the British market, as measured by the MSCI United Kingdom IndexSM (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to 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 29, 2008, the Fund declined 7.79%, while the Index declined 7.52%.
Average Annual Total Returns | ||||||||||||||||
Year Ended 2/29/08 | Five Years Ended 2/29/08 | Ten Years Ended 2/29/08 | ||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||
(1.28)% | (1.63)% | (0.62)% | 18.21% | 18.30% | 19.13% | 4.60% | 4.55% | 5.17% | ||||||||
Cumulative Total Returns | ||||||||||||||||
Year Ended 2/29/08 | Five Years Ended 2/29/08 | Ten Years Ended 2/29/08 | ||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||
(1.28)% | (1.63)% | (0.62)% | 130.84% | 131.68% | 139.89% | 56.83% | 55.98% | 65.62% |
“Average Annual Total Returns” represent the average annual change in value of an investment over the period(s) indicated. “Cumulative Total Returns” represent the total change in value of an investment over the period(s) 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 table(s) 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 2/29/08 | |||
Sector | Percentage of Net Assets | ||
Financial | 23.07 | % | |
Consumer Non-Cyclical | 21.10 | ||
Energy | 18.57 | ||
Basic Materials | 12.59 | ||
Communications | 10.70 | ||
Consumer Cyclical | 4.59 | ||
Utilities | 4.56 | ||
Industrial | 3.82 | ||
Technology | 0.41 | ||
Diversified | 0.11 | ||
Short-Term and Other Net Assets | 0.48 | ||
TOTAL | 100.00 | % | |
TEN LARGEST FUND HOLDINGS As of 2/29/08 | |||
Security | Percentage of Net Assets | ||
BP PLC | 7.33 | % | |
HSBC Holdings PLC | 6.40 | ||
Vodafone Group PLC | 6.13 | ||
Royal Dutch Shell PLC Class A | 4.60 | ||
GlaxoSmithKline PLC | 4.32 | ||
Rio Tinto PLC | 4.04 | ||
Royal Dutch Shell PLC Class B | 3.47 | ||
Anglo American PLC | 3.03 | ||
BG Group PLC | 2.85 | ||
Royal Bank of Scotland Group PLC | 2.71 | ||
TOTAL | 44.88 | % | |
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, 2007 to February 29, 2008.
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 (9/1/07) | Ending Account Value (2/29/08) | Annualized Expense Ratio | Expenses Paid During Perioda (9/1/07 to 2/29/08) | |||||
Austria | |||||||||
Actual | $1,000.00 | $ 918.50 | 0.51 | % | $2.43 | ||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,022.30 | 0.51 | 2.56 | |||||
Belgium | |||||||||
Actual | 1,000.00 | 909.00 | 0.51 | 2.42 | |||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,022.30 | 0.51 | 2.56 | |||||
EMU | |||||||||
Actual | 1,000.00 | 962.60 | 0.51 | 2.49 | |||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,022.30 | 0.51 | 2.56 | |||||
France | |||||||||
Actual | 1,000.00 | 945.00 | 0.51 | 2.47 | |||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,022.30 | 0.51 | 2.56 |
12 | 2008 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Shareholder Expenses (Unaudited) (Continued)
iSHARES®, INC.
iShares MSCI Index Fund | Beginning Account Value | Ending Account Value (2/29/08) | Annualized Expense Ratio | Expenses Paid During Perioda (9/1/07 to 2/29/08) | |||||
Germany | |||||||||
Actual | $1,000.00 | $ 983.90 | 0.51 | % | $2.52 | ||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,022.30 | 0.51 | 2.56 | |||||
Italy | |||||||||
Actual | 1,000.00 | 930.80 | 0.51 | 2.45 | |||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,022.30 | 0.51 | 2.56 | |||||
Netherlands | |||||||||
Actual | 1,000.00 | 953.90 | 0.51 | 2.48 | |||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,022.30 | 0.51 | 2.56 | |||||
Spain | |||||||||
Actual | 1,000.00 | 1,022.00 | 0.51 | 2.56 | |||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,022.30 | 0.51 | 2.56 | |||||
Sweden | |||||||||
Actual | 1,000.00 | 880.00 | 0.51 | 2.38 | |||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,022.30 | 0.51 | 2.56 | |||||
Switzerland | |||||||||
Actual | 1,000.00 | 1,004.20 | 0.51 | 2.54 | |||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,022.30 | 0.51 | 2.56 | |||||
United Kingdom | |||||||||
Actual | 1,000.00 | 922.10 | 0.51 | 2.44 | |||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,022.30 | 0.51 | 2.56 |
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 (182 days) and divided by the number of days in the year (366 days). |
SHAREHOLDER EXPENSES | 13 |
Table of Contents
Schedule of Investments (Unaudited)
iSHARES® MSCI AUSTRIA INDEX FUND
February 29, 2008
Security | Shares | Value | |||
COMMON STOCKS – 99.21% | |||||
AIRLINES – 0.20% | |||||
Austrian Airlines AGa,b | 75,869 | $ | 595,464 | ||
595,464 | |||||
BANKS – 19.55% | |||||
Erste Bank der Oesterreichischen | 755,058 | 44,130,761 | |||
Raiffeisen International Bank Holding AG | 110,202 | 14,287,220 | |||
58,417,981 | |||||
BIOTECHNOLOGY – 1.07% | |||||
Intercell AGa | 82,983 | 3,187,205 | |||
3,187,205 | |||||
BUILDING MATERIALS – 4.78% | |||||
Wienerberger AG | 293,044 | 14,280,330 | |||
14,280,330 | |||||
CHEMICALS – 0.32% | |||||
Lenzing AG | 1,746 | 964,819 | |||
964,819 | |||||
ELECTRIC – 6.31% | |||||
EVN AGb | 27,066 | 3,535,699 | |||
Oesterreichische Elektrizitaetswirtschafts AG Class A | 205,701 | 15,317,073 | |||
18,852,772 | |||||
ELECTRICAL COMPONENTS & | |||||
Zumtobel AG | 90,691 | 2,589,723 | |||
2,589,723 | |||||
ENGINEERING & CONSTRUCTION – 2.82% | |||||
Flughafen Wien AG | 64,171 | 7,351,162 | |||
Meinl Airports International AGa | 140,722 | 1,066,014 | |||
8,417,176 | |||||
ENTERTAINMENT – 0.95% | |||||
bwin Interactive | 94,081 | 2,852,203 | |||
2,852,203 | |||||
ENVIRONMENTAL CONTROL – 0.57% | |||||
BWT AG | 30,818 | 1,439,569 | |||
Christ Water Technology AGa | 16,122 | 281,460 | |||
1,721,029 |
Security | Shares | Value | |||
FOREST PRODUCTS & PAPER – 1.74% | |||||
Mayr-Melnhof Karton AG | 50,642 | $ | 5,188,606 | ||
5,188,606 | |||||
INSURANCE – 3.78% | |||||
Vienna Insurance Group | 134,168 | 11,281,860 | |||
11,281,860 | |||||
IRON & STEEL – 7.99% | |||||
voestalpine AG | 376,340 | 23,881,249 | |||
23,881,249 | |||||
LODGING – 0.10% | |||||
Warimpex Finanz-und Beteiligungs AG | 26,625 | 295,466 | |||
295,466 | |||||
MACHINERY – 3.36% | |||||
Andritz AG | 167,812 | 9,515,114 | |||
A-TEC Industries AG | 5,730 | 513,224 | |||
10,028,338 | |||||
MACHINERY – CONSTRUCTION & MINING – 0.75% | |||||
Palfinger AG | 65,893 | 2,247,723 | |||
2,247,723 | |||||
MANUFACTURING – 2.05% | |||||
RHI AGa | 150,757 | 6,138,138 | |||
6,138,138 | |||||
OIL & GAS – 14.25% | |||||
OMV AG | 585,368 | 42,566,199 | |||
42,566,199 | |||||
OIL & GAS SERVICES – 0.59% | |||||
Schoeller-Bleckmann Oilfield Equipment AG | 19,858 | 1,755,427 | |||
1,755,427 | |||||
REAL ESTATE – 15.89% | |||||
CA Immo International AGa | 73,260 | 1,156,646 | |||
CA Immobilien Anlagen AGa | 537,933 | 11,890,221 | |||
conwert Immobilien Invest SEa | 179,510 | 2,888,650 | |||
ECO Business-Immobilien AGa | 93,266 | 1,118,538 | |||
Immoeast AGa | 897,254 | 8,131,864 | |||
IMMOFINANZ AG | 654,761 | 7,136,867 | |||
Meinl European Land Ltd.a | 1,111,793 | 14,008,848 | |||
Sparkassen Immobilien AGa | 107,241 | 1,139,618 | |||
47,471,252 |
14 | 2008 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI AUSTRIA INDEX FUND
February 29, 2008
Security | Shares | Value | ||||
TELECOMMUNICATIONS – 9.93% | ||||||
Telekom Austria AG | 1,305,646 | $ | 29,672,055 | |||
29,672,055 | ||||||
TRANSPORTATION – 1.34% | ||||||
Oesterreichische Post AG | 101,782 | 4,017,397 | ||||
4,017,397 | ||||||
TOTAL COMMON STOCKS | ||||||
(Cost: $334,229,488) | 296,422,412 | |||||
SHORT-TERM INVESTMENTS – 1.47% |
| |||||
MONEY MARKET FUNDS – 1.47% | ||||||
Barclays Global Investors Funds Institutional Money Market Fund, Institutional Shares 3.59%c,d | 19,275 | 19,275 | ||||
BGI Cash Premier Fund LLC 3.63%c,d,e | 4,363,538 | 4,363,538 | ||||
4,382,813 | ||||||
TOTAL SHORT-TERM INVESTMENTS | 4,382,813 | |||||
TOTAL INVESTMENTS IN SECURITIES –100.68% | ||||||
(Cost: $338,612,301) | 300,805,225 | |||||
Other Assets, Less Liabilities – (0.68)% | (2,042,784 | ) | ||||
NET ASSETS – 100.00% | $ | 298,762,441 | ||||
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 | The rate quoted is the annualized seven-day yield of the fund at period end. |
e | This security represents an investment of securities lending collateral. See Note 5. |
See notes to financial statements.
SCHEDULESOF INVESTMENTS | 15 |
Table of Contents
Schedule of Investments (Unaudited)
iSHARES® MSCI BELGIUM INDEX FUND
February 29, 2008
Security | Shares | Value | |||
COMMON STOCKS – 99.67% | |||||
BANKS – 40.91% | |||||
Banque Nationale de Belgique | 460 | $ | 2,042,604 | ||
Dexia SA | 533,573 | 12,692,969 | |||
Fortis | 3,037,123 | 67,684,435 | |||
KBC Group NV | 299,576 | 37,901,892 | |||
120,321,900 | |||||
BEVERAGES – 9.19% | |||||
InBev | 296,657 | 27,021,299 | |||
27,021,299 | |||||
BIOTECHNOLOGY – 0.04% | |||||
Devgen NVa | 4,960 | 116,335 | |||
116,335 | |||||
CHEMICALS – 4.60% | |||||
Solvay SA | 106,243 | 13,427,184 | |||
Tessenderlo Chemie NV | 2,163 | 96,506 | |||
13,523,690 | |||||
DIVERSIFIED FINANCIAL SERVICES – 1.65% | |||||
KBC Ancora SCA | 48,184 | 4,844,601 | |||
4,844,601 | |||||
ELECTRICAL COMPONENTS & | |||||
NV Bekaert SA | 28,708 | 3,813,391 | |||
3,813,391 | |||||
ELECTRONICS – 0.97% | |||||
Barco NV | 22,613 | 1,647,782 | |||
EVS Broadcast Equipment SA | 11,667 | 1,206,165 | |||
2,853,947 | |||||
FOOD – 7.11% | |||||
Colruyt SA | 32,778 | 8,059,673 | |||
Delhaize Group | 168,370 | 12,861,918 | |||
20,921,591 | |||||
HEALTH CARE – PRODUCTS – 0.10% | |||||
Ion Beam Applications SAa | 14,525 | 312,454 | |||
312,454 | |||||
HOLDING COMPANIES – DIVERSIFIED – 10.84% | |||||
Ackermans & van Haaren NV | 41,971 | 4,324,417 | |||
Compagnie Nationale a Portefeuille SA | 49,766 | 3,487,377 |
Security | Shares | Value | |||
Groupe Bruxelles Lambert SA | 127,313 | $ | 15,367,205 | ||
Sofina SA | 78,632 | 8,700,970 | |||
31,879,969 | |||||
INVESTMENT COMPANIES – 0.56% | |||||
RHJ International SAa | 126,020 | 1,660,579 | |||
1,660,579 | |||||
MANUFACTURING – 0.93% | |||||
AGFA-Gevaert NV | 282,805 | 2,747,688 | |||
2,747,688 | |||||
MINING – 3.82% | |||||
Umicore | 218,890 | 11,228,313 | |||
11,228,313 | |||||
PHARMACEUTICALS – 3.91% | |||||
Omega Pharma SA | 33,378 | 1,588,034 | |||
UCB SA | 208,337 | 9,918,428 | |||
11,506,462 | |||||
REAL ESTATE INVESTMENT TRUSTS – 3.63% | |||||
Cofinimmo SA | 51,909 | 10,669,145 | |||
10,669,145 | |||||
RETAIL – 0.75% | |||||
SA D’Ieteren NV | 6,240 | 2,216,669 | |||
2,216,669 | |||||
SEMICONDUCTORS – 0.10% | |||||
ICOS Vision Systems Corp. NVa | 5,350 | 289,949 | |||
289,949 | |||||
TELECOMMUNICATIONS – 7.25% | |||||
Belgacom SA | 295,706 | 14,250,689 | |||
Mobistar SA | 67,244 | 5,764,634 | |||
Option NVa | 43,080 | 353,159 | |||
Telenet Group Holding NVa | 45,240 | 964,938 | |||
21,333,420 | |||||
TRANSPORTATION – 1.20% | |||||
Compagnie Maritime Belge SA | 23,397 | 1,748,955 | |||
Euronav SA | 45,642 | 1,773,109 | |||
3,522,064 | |||||
VENTURE CAPITAL – 0.81% | |||||
GIMV NV | 33,542 | 2,378,478 | |||
2,378,478 | |||||
TOTAL COMMON STOCKS | 293,161,944 |
16 | 2008 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI BELGIUM INDEX FUND
February 29, 2008
Security | Shares | Value | |||
SHORT-TERM INVESTMENTS – 0.02% | |||||
MONEY MARKET FUNDS – 0.02% | |||||
Barclays Global Investors Funds Institutional Money Market Fund, Institutional Shares | 63,007 | $ | 63,007 | ||
63,007 | |||||
TOTAL SHORT-TERM INVESTMENTS | |||||
(Cost: $63,007) | 63,007 | ||||
TOTAL INVESTMENTS IN SECURITIES – 99.69% | 293,224,951 | ||||
Other Assets, Less Liabilities – 0.31% | 902,891 | ||||
NET ASSETS – 100.00% | $ | 294,127,842 | |||
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 | 17 |
Table of Contents
Schedule of Investments (Unaudited)
February 29, 2008
Security | Shares | Value | |||
COMMON STOCKS – 98.42% | |||||
AUSTRIA – 1.66% | |||||
Andritz AG | 23,922 | $ | 1,356,402 | ||
bwin Interactive Entertainment AGa | 14,044 | 425,764 | |||
Erste Bank der Oesterreichischen | 115,877 | 6,772,646 | |||
Flughafen Wien AG | 6,569 | 752,517 | |||
Immoeast AGa | 245,374 | 2,223,839 | |||
IMMOFINANZ AG | 221,777 | 2,417,360 | |||
Mayr-Melnhof Karton AG | 10,458 | 1,071,491 | |||
Meinl European Land Ltd.a | 208,394 | 2,625,812 | |||
Oesterreichische Elektrizitaetswirtschafts AG Class A | 52,894 | 3,938,636 | |||
OMV AG | 99,826 | 7,259,046 | |||
Raiffeisen International Bank Holding AG | 30,241 | 3,920,617 | |||
RHI AGa | 15,416 | 627,669 | |||
Telekom Austria AG | 202,977 | 4,612,847 | |||
Vienna Insurance Group | 18,863 | 1,586,144 | |||
voestalpine AG | 68,662 | 4,357,056 | |||
Wienerberger AG | 46,062 | 2,244,648 | |||
46,192,494 | |||||
BELGIUM – 3.43% | |||||
AGFA-Gevaert NV | 52,199 | 507,157 | |||
Barco NV | 2,795 | 203,668 | |||
Belgacom SA | 99,363 | 4,788,510 | |||
Cofinimmo SA | 9,551 | 1,963,070 | |||
Colruyt SA | 8,362 | 2,056,104 | |||
Compagnie Maritime Belge SA | 7,558 | 564,970 | |||
Compagnie Nationale a Portefeuille SA | 12,071 | 845,881 | |||
Delhaize Group | 61,292 | 4,682,144 | |||
Dexia SA | 325,896 | 7,752,618 | |||
Euronav SA | 11,243 | 436,770 | |||
Fortis | 1,306,758 | 29,122,027 | |||
Groupe Bruxelles Lambert SA | 40,589 | 4,899,260 | |||
InBev | 95,689 | 8,715,928 | |||
KBC Ancora SCA | 2,623 | 263,726 | |||
KBC Group NV | 107,012 | 13,538,993 | |||
Mobistar SA | 15,247 | 1,307,081 | |||
NV Bekaert SA | 8,012 | 1,064,264 |
Security | Shares | Value | |||
Omega Pharma SA | 10,279 | $ | 489,047 | ||
SA D’Ieteren NV | 1,614 | 573,350 | |||
Solvay SA | 35,885 | 4,535,212 | |||
UCB SA | 66,564 | 3,168,953 | |||
Umicore | 74,775 | 3,835,703 | |||
95,314,436 | |||||
FINLAND – 5.41% | |||||
Amer Sports OYJ Class Ab | 49,347 | 1,037,554 | |||
Cargotec Corp. Class Ba | 24,570 | 1,227,161 | |||
Elisa OYJ Class A | 80,964 | 2,486,499 | |||
Fortum OYJ | 281,988 | 11,857,982 | |||
Kesko OYJ Class B | 33,829 | 1,553,000 | |||
Kone OYJ Class B | 103,112 | 3,640,988 | |||
Konecranes OYJ | 39,787 | 1,461,696 | |||
Metso OYJ | 67,287 | 3,536,377 | |||
Neste Oil OYJ | 73,157 | 2,583,247 | |||
Nokia OYJ | 2,424,506 | 88,703,486 | |||
Nokian Renkaat OYJ | 71,162 | 2,955,729 | |||
OKO Bank PLC Class A | 44,836 | 787,518 | |||
Orion OYJ Class B | 47,911 | 1,027,727 | |||
Outokumpu OYJ | 72,463 | 2,784,254 | |||
Rautaruukki OYJ | 49,036 | 2,168,482 | |||
Sampo OYJ Class A | 235,659 | 6,446,726 | |||
SanomaWSOY OYJ Class B | 23,422 | 593,445 | |||
Stora Enso OYJ Class R | 332,216 | 4,185,998 | |||
TietoEnator OYJ | 26,218 | 495,131 | |||
UPM-Kymmene OYJ | 326,599 | 5,696,856 | |||
Uponor OYJ | 21,280 | 559,202 | |||
Wartsila OYJ Class B | 38,480 | 2,656,198 | |||
YIT OYJ | 77,546 | 1,947,131 | |||
150,392,387 | |||||
FRANCE – 29.30% | |||||
Accor SA | 127,161 | 9,119,357 | |||
Aeroports de Paris | 19,336 | 2,364,463 | |||
Air France-KLM | 95,987 | 2,611,264 | |||
Alcatel-Lucent | 1,432,499 | 8,502,986 | |||
ALSTOM | 63,623 | 13,575,173 | |||
ArcelorMittal | 567,801 | 43,676,461 | |||
Atos Origin SAa | 45,992 | 2,501,667 | |||
AXA | 940,772 | 32,105,621 | |||
BNP Paribas | 513,979 | 46,480,774 | |||
Bouygues SA | 117,003 | 8,071,155 |
18 | 2008 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI EMU INDEX FUND
February 29, 2008
Security | Shares | Value | |||
Cap Gemini SA | 83,722 | $ | 4,631,465 | ||
Carrefour SA | 354,698 | 25,135,641 | |||
Casino Guichard-Perrachon SA | 26,950 | 3,067,641 | |||
Christian Dior SA | 5,225 | 573,568 | |||
CNP Assurances SA | 25,999 | 2,871,770 | |||
Compagnie de Saint-Gobain | 164,094 | 13,008,582 | |||
Compagnie Generale de Geophysique-Veritasa | 16,177 | 3,991,461 | |||
Compagnie Generale des Etablissements Michelin Class B | 84,765 | 8,442,809 | |||
Credit Agricole SA | 430,095 | 11,778,807 | |||
Dassault Systemes SA | 25,041 | 1,375,754 | |||
Eiffage SA | 12,005 | 1,062,870 | |||
Electricite de France | 50,507 | 4,734,661 | |||
Essilor International SA | 121,855 | 7,270,031 | |||
Eurazeo | 6,785 | 824,540 | |||
European Aeronautic Defence and Space Co.b | 205,292 | 5,432,126 | |||
France Telecom SA | 1,119,579 | 37,867,821 | |||
Gaz de France | 121,683 | 7,015,930 | |||
Gecina SA | 7,081 | 1,031,968 | |||
Groupe Danone | 272,054 | 21,468,009 | |||
Hermes International | 40,532 | 4,778,546 | |||
Icade | 11,785 | 1,678,158 | |||
Imerys SA | 22,908 | 1,932,190 | |||
JCDecaux SAb | 24,527 | 745,061 | |||
Klepierre | 45,767 | 2,695,781 | |||
Lafarge SA | 93,523 | 16,324,546 | |||
Lagardere SCA | 69,217 | 5,485,089 | |||
L’Air Liquide SA | 154,205 | 21,993,565 | |||
Legrand SA | 28,159 | 895,574 | |||
L’Oreal SA | 160,815 | 19,218,170 | |||
LVMH Moet Hennessy Louis Vuitton SA | 143,963 | 14,911,682 | |||
M6-Metropole Television | 55,671 | 1,321,801 | |||
Natixis | 156,587 | 2,315,341 | |||
Neopost SA | 26,172 | 2,737,118 | |||
Neuf Cegetel | 12,005 | 636,774 | |||
PagesJaunes SA | 69,348 | 1,298,068 | |||
Pernod Ricard SA | 104,476 | 11,165,793 | |||
PPR SAb | 45,848 | 6,319,152 | |||
PSA Peugeot Citroen SA | 91,581 | 7,029,312 | |||
Publicis Groupe SA | 77,881 | 2,836,365 |
Security | Shares | Value | |||
Renault SA | 114,635 | $ | 12,390,750 | ||
Safran SAb | 105,090 | 2,123,439 | |||
Sanofi-Aventis | 612,054 | 45,333,676 | |||
Schneider Electric SA | 132,188 | 15,195,081 | |||
SCOR SE | 111,584 | 2,549,405 | |||
SES SA | 75,305 | 1,871,427 | |||
Societe BIC | 12,759 | 809,449 | |||
Societe des Autoroutes | 18,413 | 2,090,588 | |||
Societe Generaleb | 237,205 | 25,603,175 | |||
Societe Generale NV Newa | 59,758 | 6,566,214 | |||
Societe Television Francaise 1 | 92,942 | 2,215,195 | |||
Sodexo | 61,882 | 3,505,016 | |||
STMicroelectronics NV | 466,991 | 5,671,512 | |||
Suez SA | 627,912 | 40,235,974 | |||
Technip SA | 62,064 | 5,101,036 | |||
Thales SA | 66,681 | 4,108,862 | |||
Total SA | 1,301,148 | 98,743,886 | |||
Unibail-Rodamco | 41,101 | 10,095,580 | |||
Valeo SA | 47,490 | 1,811,737 | |||
Vallourec SA | 30,405 | 6,382,243 | |||
Veolia Environnement | 207,416 | 18,536,881 | |||
Vinci SA | 236,082 | 16,471,884 | |||
Vivendi | 692,480 | 27,563,877 | |||
Wendel | 6,785 | 772,729 | |||
Zodiac SA | 26,937 | 1,410,402 | |||
814,072,479 | |||||
GERMANY – 24.08% | |||||
Adidas AG | 130,106 | 8,283,734 | |||
Allianz SE Registered | 274,111 | 48,895,029 | |||
ALTANA AG | 39,026 | 907,639 | |||
Arcandor AGa,b | 49,602 | 878,760 | |||
BASF SE | 305,844 | 38,992,063 | |||
Bayer AG | 448,690 | 34,636,797 | |||
Bayerische Motoren Werke AG | 102,868 | 5,650,010 | |||
Beiersdorf AG | 55,197 | 4,436,922 | |||
Bilfinger Berger AG | 21,433 | 1,709,517 | |||
Celesio AG | 44,347 | 2,552,895 | |||
Commerzbank AG | 382,740 | 11,667,235 | |||
Continental AG | 89,789 | 8,821,898 | |||
Daimler AG Registered | 573,338 | 48,558,747 | |||
Deutsche Bank AG | 306,537 | 34,557,175 |
SCHEDULESOF INVESTMENTS | 19 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI EMU INDEX FUND
February 29, 2008
Security | Shares | Value | |||
Deutsche Boerse AG | 121,463 | $ | 19,340,980 | ||
Deutsche Lufthansa AG Registered | 139,649 | 3,283,898 | |||
Deutsche Post AG | 488,290 | 16,293,182 | |||
Deutsche Postbank AG | 52,721 | 5,152,702 | |||
Deutsche Telekom AG | 1,707,013 | 32,574,105 | |||
Douglas Holding AG | 13,636 | 726,599 | |||
E.ON AG | 382,250 | 72,072,481 | |||
Fraport AG | 4,167 | 311,425 | |||
Fresenius Medical Care AG & Co. KGaA | 117,932 | 6,207,059 | |||
GEA Group AGa | 85,640 | 2,806,918 | |||
Heidelberger | 46,271 | 1,130,928 | |||
HeidelbergerCement AG | 7,823 | 1,253,522 | |||
Henkel KGaA | 68,667 | 2,802,062 | |||
Hochtief AG | 28,241 | 3,092,834 | |||
Hypo Real Estate Holding AG | 109,816 | 3,157,519 | |||
Infineon Technologies AGa | 491,431 | 3,998,782 | |||
IVG Immobilien AG | 56,028 | 1,964,796 | |||
K+S AG | 21,401 | 6,262,552 | |||
Linde AG | 71,115 | 9,481,019 | |||
MAN AG | 71,700 | 9,493,702 | |||
Merck KGaA | 38,717 | 4,830,822 | |||
METRO AG | 95,387 | 8,032,445 | |||
MLP AG | 38,476 | 544,385 | |||
Muenchener Rueckversicherungs- Gesellschaft AG Registered | 125,275 | 22,135,048 | |||
Premiere AGa | 27,665 | 594,695 | |||
Puma AG | 4,706 | 1,682,883 | |||
Q-Cells AGa | 27,141 | 2,229,481 | |||
QIAGEN NVa | 71,212 | 1,596,739 | |||
Rheinmetall AG | 20,083 | 1,408,851 | |||
RWE AG | 275,181 | 33,365,874 | |||
Salzgitter AG | 26,237 | 4,667,325 | |||
SAP AG | 530,639 | 25,463,849 | |||
Siemens AG | 524,989 | 68,078,527 | |||
SolarWorld AG | 50,549 | 2,317,501 | |||
Suedzucker AG | 35,057 | 771,690 | |||
ThyssenKrupp AG | 213,703 | 12,376,719 | |||
TUI AGa | 142,882 | 3,448,856 | |||
Volkswagen AG | 96,440 | 21,959,371 | |||
Wacker Chemie AG | 3,123 | 674,221 | |||
Wincor Nixdorf AG | 13,560 | 1,084,647 | |||
669,219,415 |
Security | Shares | Value | |||
GREECE – 1.69% | |||||
Coca-Cola Hellenic Bottling Co. SA ADR | 259,075 | $ | 11,293,079 | ||
Hellenic Telecommunications Organization SA SP ADR | 920,658 | 12,787,940 | |||
National Bank of Greece SA ADR | 2,089,942 | 22,843,066 | |||
46,924,085 | |||||
IRELAND – 1.94% | |||||
Allied Irish Banks PLC | 553,459 | 11,426,803 | |||
Anglo Irish Bank Corp. PLC | 239,703 | 3,426,054 | |||
Bank of Ireland | 623,162 | 8,845,308 | |||
CRH PLC | 335,818 | 12,515,720 | |||
DCC PLC | 40,939 | 1,034,913 | |||
Elan Corp. PLCa | 283,568 | 6,612,243 | |||
Greencore Group PLC | 98,031 | 648,859 | |||
IAWS Group PLC | 46,320 | 940,227 | |||
Irish Life & Permanent PLC | 180,353 | 2,950,677 | |||
Kerry Group PLC Class A | 74,107 | 2,331,263 | |||
Kingspan Group PLC | 60,980 | 831,035 | |||
Paddy Power PLC | 34,042 | 1,093,014 | |||
Ryanair Holdings PLCa | 43,520 | 208,312 | |||
Smurfit Kappa Group PLCa | 74,161 | 1,069,546 | |||
53,933,974 | |||||
ITALY – 10.58% | |||||
A2A SpA | 370,778 | 1,508,513 | |||
Alleanza Assicurazioni SpA | 236,625 | 3,053,374 | |||
Arnoldo Mondadori Editore SpA | 474 | 3,846 | |||
Assicurazioni Generali SpA | 638,520 | 27,597,030 | |||
Atlantia SpA | 179,316 | 5,771,056 | |||
Autogrill SpA | 82,001 | 1,318,304 | |||
Banca Carige SpAb | 184,855 | 724,723 | |||
Banca Monte dei Paschi di | 1,167,950 | 5,328,060 | |||
Banca Popolare di Milano Scrl | 281,743 | 3,376,802 | |||
Banco Popolare SpAa | 409,617 | 7,797,868 | |||
Bulgari SpA | 72,083 | 809,776 | |||
Enel SpA | 2,654,878 | 28,756,692 | |||
Eni SpA | 1,622,186 | 56,443,722 | |||
Fiat SpA | 427,446 | 9,130,104 | |||
Finmeccanica SpA | 200,298 | 6,200,036 | |||
Fondiaria-Sai SpA | 44,319 | 1,980,070 | |||
IFIL Investments SpA | 94,339 | 738,279 |
20 | 2008 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI EMU INDEX FUND
February 29, 2008
Security | Shares | Value | |||
Intesa Sanpaolo SpA | 4,629,934 | $ | 31,277,727 | ||
Italcementi SpA | 68,305 | 1,400,904 | |||
Italcementi SpA RNC | 46,457 | 711,964 | |||
Lottomatica SpA | 58,663 | 2,132,008 | |||
Luxottica Group SpA | 70,871 | 1,969,959 | |||
Mediaset SpA | 478,396 | 4,339,362 | |||
Mediobanca SpA | 298,492 | 5,786,607 | |||
Mediolanum SpAb | 204,555 | 1,294,931 | |||
Parmalat SpA | 920,677 | 3,525,647 | |||
Pirelli & C. SpAa | 1,493,833 | 1,481,999 | |||
Prysmian SpAa | 52,091 | 1,028,822 | |||
Saipem SpA | 64,755 | 2,667,003 | |||
Seat Pagine Gialle SpAb | 3,846,393 | 1,136,310 | |||
Snam Rete Gas SpA | 472,247 | 3,299,616 | |||
Telecom Italia SpA | 5,879,496 | 14,825,526 | |||
Terna SpA | 869,755 | 3,779,574 | |||
UniCredito SpA | 5,817,502 | 43,142,121 | |||
Unione di Banche Italiane ScpA | 381,839 | 9,013,865 | |||
Unipol Gruppo Finanziario SpA | 186,421 | 527,806 | |||
293,880,006 | |||||
NETHERLANDS – 7.68% | |||||
Aegon NV | 898,037 | 13,578,567 | |||
Akzo Nobel NV | 155,002 | 11,459,526 | |||
ASML Holding NVa | 256,257 | 6,259,392 | |||
Corio NV | 24,609 | 2,295,706 | |||
Corporate Express NV | 26,418 | 314,826 | |||
Fugro NV CVA | 29,660 | 2,258,096 | |||
Hagemeyer NVb | 203,632 | 1,490,025 | |||
Heineken Holding NV | 19,613 | 1,003,996 | |||
Heineken NV | 143,253 | 8,131,292 | |||
ING Groep NV | 1,148,437 | 38,791,589 | |||
Koninklijke Ahold NVa | 744,408 | 9,865,649 | |||
Koninklijke DSM NV | 93,886 | 4,154,701 | |||
Koninklijke KPN NV | 1,131,246 | 21,501,154 | |||
Koninklijke Philips Electronics NV | 710,405 | 28,018,542 | |||
Oce NV | 38,548 | 718,622 | |||
Randstad Holding NVb | 36,735 | 1,408,685 | |||
Reed Elsevier NV | 379,295 | 7,122,742 | |||
SBM Offshore NV | 90,289 | 2,933,249 | |||
TNT NV | 246,673 | 9,777,523 | |||
TomTom NVa | 33,152 | 1,570,235 | |||
Unilever NV | 1,046,475 | 32,615,060 |
Security | Shares | Value | |||
Vedior NV | 99,300 | $ | 2,511,450 | ||
Wereldhave NV | 7,907 | 962,210 | |||
Wolters Kluwer NV | 180,874 | 4,717,367 | |||
213,460,204 | |||||
PORTUGAL – 0.96% | |||||
Banco BPI SA Registered | 163,009 | 785,698 | |||
Banco Comercial Portugues SA Class Rb | 1,451,955 | 4,210,047 | |||
Banco Espirito Santo SA Registered | 151,025 | 2,731,765 | |||
BRISA - Auto - estradas de Portugal SA | 209,942 | 3,180,755 | |||
CIMPOR - Cimentos de Portugal SGPS SA | 145,685 | 1,221,933 | |||
Energias de Portugal SA | 1,202,130 | 7,071,695 | |||
Jeronimo Martins SGPS SA | 104,919 | 777,274 | |||
Portugal Telecom SGPS SA | 310,549 | 3,983,706 | |||
Sonae Industria SGPS SAa | 64,314 | 464,743 | |||
Sonae SGPS SA | 569,601 | 1,046,301 | |||
Zon Multimedia - Servicos de Telecomunicacoes e Multimedia SGPS SA | 93,636 | 1,165,620 | |||
26,639,537 | |||||
SPAIN – 11.69% | |||||
Abertis Infraestructuras SA | 166,401 | 5,289,724 | |||
Acciona SA | 17,849 | 4,579,320 | |||
Acerinox SA | 102,983 | 2,604,599 | |||
Actividades de Construcciones y Servicios SA | 118,846 | 6,119,850 | |||
Antena 3 de Television SAb | 77,245 | 1,070,635 | |||
Banco Bilbao Vizcaya Argentaria SA | 2,238,609 | 46,762,429 | |||
Banco Popular Espanol SAb | 508,084 | 8,029,465 | |||
Banco Sabadell SAb | 310,565 | 2,875,959 | |||
Banco Santander SA | 3,879,600 | 70,263,176 | |||
Bankinter SAb | 80,895 | 1,204,734 | |||
Cintra Concesiones de Infraestructuras de Transporte SAb | 115,658 | 1,850,618 | |||
Criteria CaixaCorp SA | 311,318 | 2,155,110 | |||
Enagas SA | 41,958 | 1,270,744 | |||
Fomento de Construcciones y Contratas SA | 24,591 | 1,496,250 |
SCHEDULESOF INVESTMENTS | 21 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI EMU INDEX FUND
February 29, 2008
Security | Shares | Value | |||
Gamesa Corporacion Tecnologica SA | 101,977 | $ | 4,203,126 | ||
Gas Natural SDG SA | 92,056 | 5,616,561 | |||
Gestevision Telecinco SA | 54,466 | 1,169,164 | |||
Grupo Ferrovial SA | 38,479 | 2,541,051 | |||
Iberdrola Renovables SAa | 447,989 | 2,788,378 | |||
Iberdrola SA | 2,209,692 | 32,203,521 | |||
Iberia Lineas Aereas de | 259,336 | 940,938 | |||
Indra Sistemas SA | 77,794 | 2,177,747 | |||
Industria de Diseno Textil SA | 123,594 | 6,445,024 | |||
Mapfre SA | 299,474 | 1,359,348 | |||
Promotora de Informaciones SAb | 35,843 | 502,234 | |||
Red Electrica de Espana SA | 53,243 | 3,343,863 | |||
Repsol YPF SA | 525,142 | 18,216,433 | |||
SacyrVallehermoso SAb | 59,218 | 1,815,957 | |||
Sogecable SAa,b | 31,877 | 1,342,407 | |||
Telefonica SA | 2,653,200 | 77,495,313 | |||
Union Fenosa SA | 71,488 | 4,737,157 | |||
Zardoya Otis SAb | 65,396 | 1,641,060 | |||
Zeltia SAb | 88,842 | 596,130 | |||
324,708,025 | |||||
TOTAL COMMON STOCKS | 2,734,737,042 | ||||
PREFERRED STOCKS – 1.42% | |||||
GERMANY – 1.04% | |||||
Bayerische Motoren Werke AG | 14,615 | 677,592 | |||
Fresenius SE | 11,945 | 1,009,141 | |||
Henkel KGaA | 114,647 | 5,083,872 | |||
Porsche Automobil Holding SE | 5,360 | 9,238,117 | |||
ProSiebenSat.1 Media AG | 62,905 | 1,361,774 | |||
RWE AG | 22,964 | 2,316,208 | |||
Volkswagen AG | 65,307 | 9,114,175 | |||
28,800,879 | |||||
ITALY – 0.38% | |||||
Intesa Sanpaolo SpA RNC | 541,558 | 3,459,151 | |||
Istituto Finanziario Industriale SpAa | 33,331 | 948,746 | |||
Telecom Italia SpA RNC | 2,467,029 | 4,797,597 | |||
Unipol Gruppo Finanziario SpA | 521,969 | 1,385,117 | |||
10,590,611 | |||||
TOTAL PREFERRED STOCKS | 39,391,490 |
Security | Shares | Value | ||||
SHORT-TERM INVESTMENTS – 2.13% |
| |||||
MONEY MARKET FUNDS – 2.13% |
| |||||
Barclays Global Investors Funds | 1,285,993 | $ | 1,285,993 | |||
BGI Cash Premier Fund LLC | 57,759,398 | 57,759,398 | ||||
59,045,391 | ||||||
TOTAL SHORT-TERM INVESTMENTS |
| |||||
(Cost: $59,045,391) | 59,045,391 | |||||
TOTAL INVESTMENTS IN | 2,833,173,923 | |||||
Other Assets, Less Liabilities – (1.97)% | (54,615,371 | ) | ||||
NET ASSETS – 100.00% | $ | 2,778,558,552 | ||||
ADR – American Depositary Receipts
SP ADR – Sponsored 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 | Affiliated issuer. See Note 2. |
d | The rate quoted is the annualized seven-day yield of the fund at period end. |
e | This security represents an investment of securities lending collateral. See Note 5. |
See notes to financial statements.
22 | 2008 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited)
iSHARES® MSCI FRANCE INDEX FUND
February 29, 2008
Security | Shares | Value | |||
COMMON STOCKS – 99.88% | |||||
ADVERTISING – 0.70% | |||||
JCDecaux SAa | 31,437 | $ | 954,967 | ||
PagesJaunes SA | 56,813 | 1,063,436 | |||
Publicis Groupe SA | 67,151 | 2,445,587 | |||
4,463,990 | |||||
AEROSPACE & DEFENSE – 1.46% | |||||
European Aeronautic Defence and Space Co.a | 155,218 | 4,107,143 | |||
Safran SAa | 79,059 | 1,597,459 | |||
Thales SA | 42,332 | 2,608,484 | |||
Zodiac SA | 18,659 | 976,972 | |||
9,290,058 | |||||
AIRLINES – 0.27% | |||||
Air France-KLM | 64,005 | 1,741,215 | |||
1,741,215 | |||||
APPAREL – 0.61% | |||||
Hermes International | 32,980 | 3,888,198 | |||
3,888,198 | |||||
AUTO MANUFACTURERS – 2.37% | |||||
PSA Peugeot Citroen SA | 72,304 | 5,549,703 | |||
Renault SA | 87,995 | 9,511,267 | |||
15,060,970 | |||||
AUTO PARTS & EQUIPMENT – 1.27% | |||||
Compagnie Generale des Etablissements Michelin Class B | 68,249 | 6,797,774 | |||
Valeo SA | 33,033 | 1,260,204 | |||
8,057,978 | |||||
BANKS – 10.80% | |||||
BNP Paribas | 388,041 | 35,091,796 | |||
Credit Agricole SA | 312,735 | 8,564,725 | |||
Natixis | 86,930 | 1,285,372 | |||
Societe Generalea | 178,105 | 19,224,103 | |||
Societe Generale NV Newa,b | 41,160 | 4,522,664 | |||
68,688,660 | |||||
BEVERAGES – 1.40% | |||||
Pernod Ricard SA | 83,349 | 8,907,861 | |||
8,907,861 |
Security | Shares | Value | |||
BUILDING MATERIALS – 3.78% | |||||
Compagnie de Saint-Gobain | 133,097 | $ | 10,551,289 | ||
Imerys SA | 15,313 | 1,291,585 | |||
Lafarge SA | 69,943 | 12,208,630 | |||
24,051,504 | |||||
CHEMICALS – 2.55% | |||||
L’Air Liquide SA | 113,579 | 16,199,261 | |||
16,199,261 | |||||
COMMERCIAL SERVICES – 0.19% | |||||
Societe des Autoroutes | 10,632 | 1,207,143 | |||
1,207,143 | |||||
COMPUTERS – 0.85% | |||||
Atos Origin SAb | 32,950 | 1,792,267 | |||
Cap Gemini SA | 65,680 | 3,633,389 | |||
5,425,656 | |||||
COSMETICS & PERSONAL CARE – 2.43% | |||||
Christian Dior SA | 13,021 | 1,429,365 | |||
L’Oreal SA | 117,587 | 14,052,215 | |||
15,481,580 | |||||
ELECTRIC – 0.70% | |||||
Electricite de France | 47,622 | 4,464,214 | |||
4,464,214 | |||||
ELECTRICAL COMPONENTS & | |||||
Legrand SA | 22,044 | 701,092 | |||
701,092 | |||||
ENGINEERING & CONSTRUCTION – 3.73% | |||||
Aeroports de Paris | 16,519 | 2,019,992 | |||
Bouygues SA | 106,446 | 7,342,907 | |||
Eiffage SA | 8,817 | 780,618 | |||
Vinci SA | 194,986 | 13,604,539 | |||
23,748,056 | |||||
FOOD – 6.11% | |||||
Carrefour SA | 284,626 | 20,169,995 | |||
Casino Guichard-Perrachon SA | 20,787 | 2,366,125 | |||
Groupe Danone | 207,123 | 16,344,250 | |||
38,880,370 | |||||
FOOD SERVICE – 0.40% | |||||
Sodexo | 45,418 | 2,572,490 | |||
2,572,490 |
SCHEDULESOF INVESTMENTS | 23 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI FRANCE INDEX FUND
February 29, 2008
Security | Shares | Value | |||
GAS – 0.85% | |||||
Gaz de France | 93,396 | $ | 5,384,974 | ||
5,384,974 | |||||
HAND & MACHINE TOOLS – 1.89% | |||||
Schneider Electric SA | 104,725 | 12,038,194 | |||
12,038,194 | |||||
HEALTH CARE – PRODUCTS – 0.88% | |||||
Essilor International SA | 93,643 | 5,586,866 | |||
5,586,866 | |||||
HOLDING COMPANIES – DIVERSIFIED – 2.03% | |||||
LVMH Moet Hennessy Louis Vuitton SA | 116,294 | 12,045,728 | |||
Wendel | 7,850 | 894,020 | |||
12,939,748 | |||||
HOME FURNISHINGS – 0.14% | |||||
Thomson | 114,812 | 890,653 | |||
890,653 | |||||
HOUSEHOLD PRODUCTS & WARES – 0.13% | |||||
Societe BIC | 13,036 | 827,022 | |||
827,022 | |||||
INSURANCE – 4.72% | |||||
AXA | 756,048 | 25,801,565 | |||
CNP Assurances SA | 21,046 | 2,324,677 | |||
SCOR SE | 82,472 | 1,884,271 | |||
30,010,513 | |||||
INVESTMENT COMPANIES – 0.11% | |||||
Eurazeo | 5,788 | 703,380 | |||
703,380 | |||||
IRON & STEEL – 5.40% | |||||
ArcelorMittal | 446,759 | 34,365,652 | |||
34,365,652 | |||||
LODGING – 1.05% | |||||
Accor SA | 92,685 | 6,646,909 | |||
6,646,909 | |||||
MACHINERY – 1.56% | |||||
ALSTOM | 46,526 | 9,927,204 | |||
9,927,204 | |||||
MEDIA – 4.55% | |||||
Lagardere SCA | 60,884 | 4,824,742 | |||
M6-Metropole Television | 31,555 | 749,213 |
Security | Shares | Value | |||
Societe Television Francaise 1 | 56,183 | $ | 1,339,075 | ||
Vivendi | 552,844 | 22,005,724 | |||
28,918,754 | |||||
METAL FABRICATE & HARDWARE – 0.75% | |||||
Vallourec SA | 22,580 | 4,739,716 | |||
4,739,716 | |||||
OFFICE & BUSINESS EQUIPMENT – 0.25% | |||||
Neopost SA | 15,500 | 1,621,020 | |||
1,621,020 | |||||
OIL & GAS – 12.69% | |||||
Compagnie Generale de Geophysique-Veritasb | 12,391 | 3,057,316 | |||
Total SA | 1,023,756 | 77,692,657 | |||
80,749,973 | |||||
OIL & GAS SERVICES – 0.62% | |||||
Technip SA | 48,054 | 3,949,555 | |||
3,949,555 | |||||
PHARMACEUTICALS – 5.66% | |||||
Sanofi-Aventis | 485,761 | 35,979,394 | |||
35,979,394 | |||||
REAL ESTATE – 1.65% | |||||
Gecina SA | 5,966 | 869,470 | |||
Klepierre | 33,506 | 1,973,580 | |||
Unibail-Rodamco | 31,079 | 7,633,891 | |||
10,476,941 | |||||
REAL ESTATE INVESTMENT TRUSTS – 0.21% | |||||
Icade | 9,307 | 1,325,296 | |||
1,325,296 | |||||
RETAIL – 0.79% | |||||
PPR SA | 36,498 | 5,030,457 | |||
5,030,457 | |||||
SEMICONDUCTORS – 0.62% | |||||
STMicroelectronics NV | 324,404 | 3,939,822 | |||
3,939,822 | |||||
SOFTWARE – 0.24% | |||||
Dassault Systemes SA | 27,729 | 1,523,432 | |||
1,523,432 | |||||
TELECOMMUNICATIONS – 6.04% | |||||
Alcatel-Lucent | 1,096,318 | 6,507,493 | |||
France Telecom SA | 868,144 | 29,363,467 |
24 | 2008 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI FRANCE INDEX FUND
February 29, 2008
Security | Shares | Value | ||||
Neuf Cegetel | 14,847 | $ | 787,521 | |||
SES SA | 71,624 | 1,779,949 | ||||
38,438,430 | ||||||
WATER – 7.32% |
| |||||
Suez SA | 494,242 | 31,670,534 | ||||
Veolia Environnement | 166,593 | 14,888,508 | ||||
46,559,042 | ||||||
TOTAL COMMON STOCKS | 635,403,243 | |||||
SHORT-TERM INVESTMENTS – 1.07% |
| |||||
MONEY MARKET FUNDS – 1.07% |
| |||||
Barclays Global Investors Funds | 218,401 |
| 218,401 |
| ||
BGI Cash Premier Fund LLC | 6,610,740 |
| 6,610,740 |
| ||
6,829,141 | ||||||
TOTAL SHORT-TERM INVESTMENTS | 6,829,141 | |||||
TOTAL INVESTMENTS | 642,232,384 | |||||
Other Assets, Less Liabilities – (0.95)% | (6,066,209 | ) | ||||
NET ASSETS – 100.00% | $ | 636,166,175 | ||||
a | All or a portion of this security represents a security on loan. See Note 5. |
b | Non-income earning security. |
c | Affiliated issuer. See Note 2. |
d | The rate quoted is the annualized seven-day yield of the fund at period end. |
e | This security represents an investment of securities lending collateral. See Note 5. |
See notes to financial statements.
SCHEDULESOF INVESTMENTS | 25 |
Table of Contents
Schedule of Investments (Unaudited)
iSHARES® MSCI GERMANY INDEX FUND
February 29, 2008
Security | Shares | Value | |||
COMMON STOCKS – 95.69% | |||||
AIRLINES – 0.48% | |||||
Deutsche Lufthansa AG Registered | 400,586 | $ | 9,419,928 | ||
9,419,928 | |||||
APPAREL – 1.35% | |||||
Adidas AG | 353,995 | 22,538,548 | |||
Puma AG | 11,193 | 4,002,657 | |||
26,541,205 | |||||
AUTO MANUFACTURERS – 10.94% | |||||
Bayerische Motoren Werke AG | 287,619 | 15,797,433 | |||
Daimler AG Registered | 1,619,060 | 137,125,961 | |||
Volkswagen AG | 272,629 | 62,077,574 | |||
215,000,968 | |||||
AUTO PARTS & EQUIPMENT – 1.33% | |||||
Continental AG | 265,243 | 26,060,504 | |||
26,060,504 | |||||
BANKS – 7.76% | |||||
Commerzbank AG | 1,086,476 | 33,119,534 | |||
Deutsche Bank AG | 843,548 | 95,096,630 | |||
Deutsche Postbank AG | 144,801 | 14,152,166 | |||
Hypo Real Estate Holding AG | 349,937 | 10,061,673 | |||
152,430,003 | |||||
BIOTECHNOLOGY – 0.18% | |||||
QIAGEN NVa | 157,630 | 3,534,433 | |||
3,534,433 | |||||
BUILDING MATERIALS – 0.17% | |||||
HeidelbergerCement AG | 21,160 | 3,390,582 | |||
3,390,582 | |||||
CHEMICALS – 11.57% | |||||
ALTANA AG | 59,764 | 1,389,949 | |||
BASF SE | 846,684 | 107,943,775 | |||
Bayer AG | 1,250,415 | 96,526,267 | |||
K+S AG | 63,958 | 18,715,963 | |||
Wacker Chemie AG | 13,284 | 2,867,869 | |||
227,443,823 | |||||
COMPUTERS – 0.11% | |||||
Wincor Nixdorf AG | 27,797 | 2,223,446 | |||
2,223,446 |
Security | Shares | Value | |||
COSMETICS & PERSONAL CARE – 0.62% | |||||
Beiersdorf AG | 152,790 | $ | 12,281,779 | ||
12,281,779 | |||||
DIVERSIFIED FINANCIAL SERVICES – 2.84% | |||||
Deutsche Boerse AG | 346,128 | 55,115,176 | |||
MLP AG | 53,515 | 757,167 | |||
55,872,343 | |||||
ELECTRIC – 14.97% | |||||
E.ON AG | 1,072,499 | 202,217,563 | |||
RWE AG | 759,055 | 92,035,910 | |||
294,253,473 | |||||
ENERGY – ALTERNATE SOURCES – 0.68% | |||||
Q-Cells AGa | 82,232 | 6,754,898 | |||
SolarWorld AG | 142,810 | 6,547,356 | |||
13,302,254 | |||||
ENGINEERING & CONSTRUCTION – 2.19% | |||||
Bilfinger Berger AG | 63,735 | 5,083,566 | |||
Fraport AG | 28,856 | 2,156,584 | |||
Hochtief AG | 72,743 | 7,966,503 | |||
Linde AG | 209,249 | 27,896,981 | |||
43,103,634 | |||||
FOOD – 1.27% | |||||
METRO AG | 281,509 | 23,705,593 | |||
Suedzucker AG | 61,020 | 1,343,200 | |||
25,048,793 | |||||
HEALTH CARE - PRODUCTS – 0.89% | |||||
Fresenius Medical Care AG & Co. KGaA | 331,647 | 17,455,420 | |||
17,455,420 | |||||
HOLDING COMPANIES - DIVERSIFIED – 0.46% | |||||
GEA Group AGa | 274,174 | 8,986,266 | |||
8,986,266 | |||||
HOUSEHOLD PRODUCTS & WARES – 0.39% | |||||
Henkel KGaA | 185,728 | 7,578,915 | |||
7,578,915 | |||||
INSURANCE – 10.23% | |||||
Allianz SE Registered | 772,103 | 137,725,224 | |||
Muenchener Rueckversicherungs- Gesellschaft AG Registered | 358,017 | 63,258,618 | |||
200,983,842 |
26 | 2008 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI GERMANY INDEX FUND
February 29, 2008
Security | Shares | Value | |||
IRON & STEEL – 2.47% | |||||
Salzgitter AG | 70,525 | $ | 12,545,760 | ||
ThyssenKrupp AG | 622,602 | 36,058,315 | |||
48,604,075 | |||||
LEISURE TIME – 0.45% | |||||
TUI AGa,b | 363,587 | 8,776,187 | |||
8,776,187 | |||||
MACHINERY – DIVERSIFIED – 1.66% | |||||
Heidelberger Druckmaschinen AG | 97,187 | 2,375,387 | |||
MAN AG | 194,251 | 25,720,519 | |||
Rheinmetall AG | 63,385 | 4,446,547 | |||
32,542,453 | |||||
MANUFACTURING – 9.78% | |||||
Siemens AG | 1,482,308 | 192,219,923 | |||
192,219,923 | |||||
MEDIA – 0.09% | |||||
Premiere AGa | 85,102 | 1,829,378 | |||
1,829,378 | |||||
PHARMACEUTICALS – 1.15% | |||||
Celesio AG | 150,613 | 8,670,241 | |||
Merck KGaA | 112,452 | 14,030,933 | |||
22,701,174 | |||||
REAL ESTATE – 0.29% | |||||
IVG Immobilien AG | 164,077 | 5,753,870 | |||
5,753,870 | |||||
RETAIL – 0.18% | |||||
Arcandor AGa,b | 114,502 | 2,028,544 | |||
Douglas Holding AG | 26,933 | 1,435,133 | |||
3,463,677 | |||||
SEMICONDUCTORS – 0.53% | |||||
Infineon Technologies AGa | 1,286,804 | 10,470,745 | |||
10,470,745 | |||||
SOFTWARE – 3.69% | |||||
SAP AG | 1,509,704 | 72,446,379 | |||
72,446,379 | |||||
TELECOMMUNICATIONS – 4.67% | |||||
Deutsche Telekom AG | 4,809,173 | 91,771,125 | |||
91,771,125 |
Security | Shares | Value | |||
TRANSPORTATION – 2.30% | |||||
Deutsche Post AG | 1,355,171 | $ | 45,219,126 | ||
45,219,126 | |||||
TOTAL COMMON STOCKS | 1,880,709,723 | ||||
PREFERRED STOCKS – 4.19% | |||||
AUTO MANUFACTURERS – 2.68% | |||||
Bayerische Motoren Werke AG | 33,577 | 1,556,723 | |||
Porsche Automobil Holding SE | 14,992 | 25,839,151 | |||
Volkswagen AG | 181,528 | 25,333,854 | |||
52,729,728 | |||||
ELECTRIC – 0.35% | |||||
RWE AG | 67,260 | 6,784,016 | |||
6,784,016 | |||||
HEALTH CARE - SERVICES – 0.30% | |||||
Fresenius SE | 68,734 | 5,806,804 | |||
5,806,804 | |||||
HOUSEHOLD PRODUCTS & WARES – 0.70% | |||||
Henkel KGaA | 312,195 | 13,843,882 | |||
13,843,882 | |||||
MEDIA – 0.16% | |||||
ProSiebenSat.1 Media AG | 145,173 | 3,142,720 | |||
3,142,720 | |||||
TOTAL PREFERRED STOCKS | 82,307,150 | ||||
SHORT-TERM INVESTMENTS – 0.30% | |||||
MONEY MARKET FUNDS – 0.30% | |||||
Barclays Global Investors Funds | 196,324 | 196,324 | |||
BGI Cash Premier Fund LLC 3.63%c,d,e | 5,720,936 | 5,720,936 | |||
5,917,260 | |||||
TOTAL SHORT-TERM INVESTMENTS | |||||
(Cost: $5,917,260) | 5,917,260 | ||||
SCHEDULESOF INVESTMENTS | 27 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI GERMANY INDEX FUND
February 29, 2008
Value | ||||
TOTAL INVESTMENTS | $ | 1,968,934,133 | ||
Other Assets, Less Liabilities – (0.18)% | (3,481,201 | ) | ||
NET ASSETS – 100.00% | $ | 1,965,452,932 | ||
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 | The rate quoted is the annualized seven-day yield of the fund at period end. |
e | This security represents an investment of securities lending collateral. See |
Note 5. |
See notes to financial statements.
28 | 2008 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited)
iSHARES® MSCI ITALY INDEX FUND
February 29, 2008
Security | Shares | Value | |||
COMMON STOCKS – 95.53% | |||||
AEROSPACE & DEFENSE – 2.64% | |||||
Finmeccanica SpA | 350,560 | $ | 10,851,255 | ||
10,851,255 | |||||
AUTO MANUFACTURERS – 3.09% | |||||
Fiat SpA | 594,230 | 12,692,555 | |||
12,692,555 | |||||
AUTO PARTS & EQUIPMENT – 0.74% | |||||
Pirelli & C. SpAa | 3,077,727 | 3,053,346 | |||
3,053,346 | |||||
BANKS – 32.71% | |||||
Banca Carige SpA | 758,594 | 2,974,063 | |||
Banca Monte dei Paschi di | 982,433 | 4,481,752 | |||
Banca Popolare di Milano Scrl | 330,967 | 3,966,771 | |||
Banco Popolare SpAa | 629,403 | 11,981,929 | |||
Intesa Sanpaolo SpA | 6,133,813 | 41,437,250 | |||
UniCredito SpA | 7,314,166 | 54,241,259 | |||
Unione di Banche Italiane ScpA | 647,653 | 15,288,791 | |||
134,371,815 | |||||
BUILDING MATERIALS – 0.05% | |||||
Italcementi SpA | 6,570 | 134,748 | |||
Italcementi SpA RNC | 5,035 | 77,162 | |||
211,910 | |||||
COMMERCIAL SERVICES – 2.26% | |||||
Atlantia SpA | 288,633 | 9,289,284 | |||
9,289,284 | |||||
DIVERSIFIED FINANCIAL SERVICES – 3.04% | |||||
Mediobanca SpA | 643,999 | 12,484,653 | |||
12,484,653 | |||||
ELECTRIC – 11.41% | |||||
A2A SpA | 1,975,026 | 8,035,409 | |||
Enel SpA | 1,834,107 | 19,866,393 | |||
Terna SpA | 4,366,609 | 18,975,367 | |||
46,877,169 | |||||
ELECTRICAL COMPONENTS & | |||||
Prysmian SpAa | 141,260 | 2,789,953 | |||
2,789,953 |
Security | Shares | Value | |||
ENTERTAINMENT – 0.50% | |||||
Lottomatica SpA | 57,088 | $ | 2,074,767 | ||
2,074,767 | |||||
FOOD – 1.33% | |||||
Parmalat SpA | 1,421,784 | 5,444,590 | |||
5,444,590 | |||||
HEALTH CARE - PRODUCTS – 1.56% | |||||
Luxottica Group SpA | 230,630 | 6,410,686 | |||
6,410,686 | |||||
HOLDING COMPANIES - DIVERSIFIED – 0.25% | |||||
IFIL Investments SpA | 133,042 | 1,041,161 | |||
1,041,161 | |||||
INSURANCE – 8.18% | |||||
Assicurazioni Generali SpA | 465,670 | 20,126,400 | |||
Fondiaria-Sai SpA | 136,640 | 6,104,759 | |||
Mediolanum SpAb | 561,006 | 3,551,436 | |||
Unipol Gruppo Finanziario SpA | 1,346,301 | 3,811,723 | |||
33,594,318 | |||||
MEDIA – 1.77% | |||||
Arnoldo Mondadori Editore SpA | 8,404 | 68,192 | |||
Mediaset SpA | 791,979 | 7,183,762 | |||
7,251,954 | |||||
OIL & GAS – 17.89% | |||||
Eni SpA | 2,111,622 | 73,473,575 | |||
73,473,575 | |||||
OIL & GAS SERVICES – 1.31% | |||||
Saipem SpA | 130,242 | 5,364,154 | |||
5,364,154 | |||||
RETAIL – 0.67% | |||||
Autogrill SpA | 92,476 | 1,486,707 | |||
Bulgari SpA | 113,394 | 1,273,861 | |||
2,760,568 | |||||
TELECOMMUNICATIONS – 5.45% | |||||
Telecom Italia SpA | 8,872,241 | 22,371,924 | |||
22,371,924 | |||||
TOTAL COMMON STOCKS | 392,409,637 |
SCHEDULESOF INVESTMENTS | 29 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI ITALY INDEX FUND
February 29, 2008
Security | Shares | Value | ||||
PREFERRED STOCKS – 4.27% | ||||||
BANKS – 0.79% | ||||||
Intesa Sanpaolo SpA RNC | 511,638 | $ | 3,268,040 | |||
3,268,040 | ||||||
HOLDING COMPANIES – DIVERSIFIED – 0.09% |
| |||||
Istituto Finanziario Industriale SpAa | 12,467 | 354,865 | ||||
354,865 | ||||||
INSURANCE – 1.36% | ||||||
Unipol Gruppo Finanziario SpAb | 2,102,999 | 5,580,600 | ||||
5,580,600 | ||||||
TELECOMMUNICATIONS – 2.03% | ||||||
Telecom Italia SpA RNC | 4,282,196 | 8,327,527 | ||||
8,327,527 | ||||||
TOTAL PREFERRED STOCKS | ||||||
(Cost: $19,895,779) | 17,531,032 | |||||
SHORT-TERM INVESTMENTS – 1.51% |
| |||||
MONEY MARKET FUNDS – 1.51% | ||||||
Barclays Global Investors Funds | 144,078 | 144,078 | ||||
BGI Cash Premier Fund LLC | 6,052,073 | 6,052,073 | ||||
6,196,151 | ||||||
TOTAL SHORT-TERM INVESTMENTS |
| |||||
(Cost: $6,196,151) | 6,196,151 | |||||
TOTAL INVESTMENTS | 416,136,820 | |||||
Other Assets, Less Liabilities – (1.31)% | (5,384,464 | ) | ||||
NET ASSETS – 100.00% | $ | 410,752,356 | ||||
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 | The rate quoted is the annualized seven-day yield of the fund at period end. |
e | This security represents an investment of securities lending collateral. See |
Note 5. |
See notes to financial statements.
30 | 2008 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited)
iSHARES® MSCI NETHERLANDS INDEX FUND
February 29, 2008
Security | Shares | Value | |||
COMMON STOCKS – 99.89% | |||||
BANKS – 0.65% | |||||
SNS REAAL NV | 80,846 | $ | 1,717,025 | ||
1,717,025 | |||||
BEVERAGES – 4.71% | |||||
Heineken Holding NV | 64,447 | 3,299,063 | |||
Heineken NV | 160,130 | 9,089,260 | |||
12,388,323 | |||||
BIOTECHNOLOGY – 0.21% | |||||
Crucell NVa | 34,322 | 479,359 | |||
Pharming Group NVa | 35,247 | 67,421 | |||
546,780 | |||||
BUILDING MATERIALS – 0.20% | |||||
Wavin NV | 44,727 | 519,435 | |||
519,435 | |||||
CHEMICALS – 6.60% | |||||
Akzo Nobel NV | 168,261 | 12,439,783 | |||
Koninklijke DSM NV | 111,174 | 4,919,740 | |||
17,359,523 | |||||
COMMERCIAL SERVICES – 2.10% | |||||
Brunel International NV | 2,527 | 60,421 | |||
Randstad Holding NVb | 43,558 | 1,670,328 | |||
USG People NV | 25,470 | 579,603 | |||
Vedior NV | 127,220 | 3,217,590 | |||
5,527,942 | |||||
DISTRIBUTION & WHOLESALE – 1.46% | |||||
Corporate Express NVb | 89,007 | 1,060,704 | |||
Hagemeyer NVb | 379,496 | 2,776,864 | |||
3,837,568 | |||||
DIVERSIFIED FINANCIAL SERVICES – 0.18% | |||||
BinckBank NV | 33,161 | 430,422 | |||
KAS Bank NV | 806 | 31,642 | |||
462,064 | |||||
ELECTRICAL COMPONENTS & | |||||
Draka Holding NV | 4,950 | 143,980 | |||
TKH Group NV | 13,534 | 292,369 | |||
436,349 | |||||
ELECTRONICS – 11.29% | |||||
Koninklijke Philips Electronics NV | 752,972 | 29,697,395 | |||
29,697,395 |
Security | Shares | Value | |||
ENGINEERING & CONSTRUCTION – 1.38% | |||||
Arcadis NV | 7,614 | $ | 470,328 | ||
Koninklijke BAM Groep NV | 54,797 | 1,217,031 | |||
Koninklijke Boskalis Westminster NV | 34,465 | 1,930,657 | |||
3,618,016 | |||||
FOOD – 18.68% | |||||
CSM NV | 31,762 | 985,092 | |||
Koninklijke Ahold NVa | 854,362 | 11,322,871 | |||
Koninklijke Wessanen NV | 42,940 | 578,211 | |||
Nutreco Holding NV | 17,458 | 1,248,556 | |||
Sligro Food Group NV | 7,445 | 276,001 | |||
Super de Boer NVa | 30,696 | 198,048 | |||
Unilever NV | 1,108,581 | 34,550,693 | |||
49,159,472 | |||||
HOLDING COMPANIES - DIVERSIFIED – 0.52% | |||||
Eriks Group NV | 4,826 | 344,338 | |||
Imtech NV | 33,157 | 793,793 | |||
Kendrion NVa | 1,062 | 26,118 | |||
Ordina NV | 14,754 | 212,781 | |||
1,377,030 | |||||
HOUSEWARES – 0.10% | |||||
Hunter Douglas NV | 4,479 | 261,783 | |||
261,783 | |||||
INSURANCE – 20.95% | |||||
Aegon NV | 834,204 | 12,613,395 | |||
ING Groep NVb | 1,258,564 | 42,511,429 | |||
55,124,824 | |||||
INVESTMENT COMPANIES – 0.08% | |||||
Kardan NV | 15,087 | 212,316 | |||
212,316 | |||||
MANUFACTURING – 0.53% | |||||
Aalberts Industries NV | 52,346 | 1,025,117 | |||
Koninklijke Ten Cate NV | 11,114 | 378,443 | |||
1,403,560 | |||||
MEDIA – 5.75% | |||||
Reed Elsevier NV | 487,857 | 9,161,416 | |||
Telegraaf Media Groep NV | 8,975 | 325,636 | |||
Wolters Kluwer NV | 216,628 | 5,649,866 | |||
15,136,918 |
SCHEDULESOF INVESTMENTS | 31 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI NETHERLANDS INDEX FUND
February 29, 2008
Security | Shares | Value | |||
METAL FABRICATE & HARDWARE – 0.33% | |||||
Advanced Metallurgical Group NVa | 10,498 | $ | 876,536 | ||
876,536 | |||||
OFFICE & BUSINESS EQUIPMENT– 0.45% | |||||
Oce NVb | 63,597 | 1,185,592 | |||
1,185,592 | |||||
OIL & GAS SERVICES – 2.46% | |||||
Fugro NV CVA | 41,207 | 3,137,201 | |||
SBM Offshore NV | 102,434 | 3,327,808 | |||
6,465,009 | |||||
PHARMACEUTICALS – 0.29% | |||||
OPG Groep NV | 25,446 | 764,866 | |||
764,866 | |||||
REAL ESTATE INVESTMENT TRUSTS – 2.97% | |||||
Corio NV | 39,410 | 3,676,450 | |||
Eurocommercial Properties NV | 7,689 | 426,870 | |||
VastNed Offices/Industrial NV | 4,934 | 157,521 | |||
VastNed Retail NV | 6,986 | 717,034 | |||
Wereldhave NV | 23,333 | 2,839,414 | |||
7,817,289 | |||||
RETAIL – 0.12% | |||||
Beter Bed Holding NV | 7,083 | 166,882 | |||
Macintosh Retail Group NV | 5,489 | 154,158 | |||
321,040 | |||||
SEMICONDUCTORS – 2.73% | |||||
ASM International NV | 16,136 | 318,449 | |||
ASML Holding NVa | 281,382 | 6,873,101 | |||
7,191,550 | |||||
SOFTWARE – 1.41% | |||||
Exact Holding NV | 5,422 | 223,887 | |||
Tele Atlas NVa | 30,720 | 1,310,472 | |||
TomTom NVa | 41,737 | 1,976,861 | |||
Unit 4 Agresso NV | 6,731 | 188,937 | |||
3,700,157 | |||||
TELECOMMUNICATIONS – 8.80% | |||||
Koninklijke KPN NV | 1,217,781 | 23,145,891 | |||
23,145,891 |
Security | Shares | Value | ||||
TEXTILES – 0.02% | ||||||
Gamma Holding NV | 865 | $ | 57,779 | |||
57,779 | ||||||
TRANSPORTATION – 4.75% | ||||||
Royal Vopak NV | 9,570 | 501,514 | ||||
Smit Internationale NV | 5,729 | 537,661 | ||||
TNT NV | 288,994 | 11,455,026 | ||||
12,494,201 | ||||||
TOTAL COMMON STOCKS | 262,806,233 | |||||
SHORT-TERM INVESTMENTS – 2.15% |
| |||||
MONEY MARKET FUNDS – 2.15% |
| |||||
Barclays Global Investors Funds | 91,050 | 91,050 | ||||
BGI Cash Premier Fund LLC 3.63%c,d,e | 5,565,712 | 5,565,712 | ||||
5,656,762 | ||||||
TOTAL SHORT-TERM INVESTMENTS |
| |||||
(Cost: $5,656,762) | 5,656,762 | |||||
TOTAL INVESTMENTS |
| |||||
(Cost: $275,090,659) | 268,462,995 | |||||
Other Assets, Less Liabilities – (2.04)% | (5,355,811 | ) | ||||
NET ASSETS – 100.00% | $ | 263,107,184 | ||||
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 | The rate quoted is the annualized seven-day yield of the fund at period end. |
e | This security represents an investment of securities lending collateral. See Note 5. |
See notes to financial statements.
32 | 2008 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited)
iSHARES® MSCI SPAIN INDEX FUND
February 29, 2008
Security | Shares | Value | |||
COMMON STOCKS – 99.90% | |||||
AIRLINES – 0.32% | |||||
Iberia Lineas Aereas de | 507,305 | $ | 1,840,633 | ||
1,840,633 | |||||
BANKS – 35.58% | |||||
Banco Bilbao Vizcaya Argentaria SA | 2,794,636 | 58,377,308 | |||
Banco Popular Espanol SAa | 1,859,720 | 29,389,938 | |||
Banco Sabadell SAa | 1,174,398 | 10,875,407 | |||
Banco Santander SA | 5,640,072 | 102,146,966 | |||
Bankinter SAa | 400,037 | 5,957,575 | |||
206,747,194 | |||||
BIOTECHNOLOGY – 0.14% | |||||
Zeltia SA | 123,248 | 826,994 | |||
826,994 | |||||
COMMERCIAL SERVICES – 3.65% | |||||
Abertis Infraestructuras SAa | 535,502 | 17,023,081 | |||
Cintra Concesiones de Infraestructuras de Transporte SAa | 259,619 | 4,154,105 | |||
21,177,186 | |||||
COMPUTERS – 1.14% | |||||
Indra Sistemas SA | 236,148 | 6,610,671 | |||
6,610,671 | |||||
DIVERSIFIED FINANCIAL SERVICES – 0.78% | |||||
Criteria CaixaCorp SA | 653,075 | 4,520,935 | |||
4,520,935 | |||||
ELECTRIC – 10.35% | |||||
Iberdrola SA | 1,918,670 | 27,962,236 | |||
Red Electrica de Espana SA | 221,018 | 13,880,770 | |||
Union Fenosa SA | 276,479 | 18,320,899 | |||
60,163,905 | |||||
ENERGY - ALTERNATE SOURCES – 1.77% | |||||
Gamesa Corporacion Tecnologica SA | 249,213 | 10,271,666 | |||
10,271,666 |
Security | Shares | Value | |||
ENGINEERING & CONSTRUCTION – 6.80% | |||||
Acciona SA | 50,319 | $ | 12,909,787 | ||
Actividades de Construcciones y Servicios SAa | 330,910 | 17,039,864 | |||
Fomento de Construcciones y | 54,011 | 3,286,324 | |||
Grupo Ferrovial SAa | 6,486 | 4,390,559 | |||
SacyrVallehermoso SAa | 62,235 | 1,908,475 | |||
39,535,009 | |||||
GAS – 4.96% | |||||
Enagas SA | 230,696 | 6,986,881 | |||
Gas Natural SDG SA | 357,790 | 21,829,641 | |||
28,816,522 | |||||
INSURANCE – 2.39% | |||||
Mapfre SA | 3,059,654 | 13,888,134 | |||
13,888,134 | |||||
IRON & STEEL – 0.68% | |||||
Acerinox SA | 157,105 | 3,973,428 | |||
3,973,428 | |||||
MACHINERY – 0.60% | |||||
Zardoya Otis SAa | 137,759 | 3,456,951 | |||
3,456,951 | |||||
MEDIA – 1.73% | |||||
Antena 3 de Television SA | 41,375 | 573,468 | |||
Gestevision Telecinco SAa | 207,523 | 4,454,675 | |||
Promotora de Informaciones SAa | 179,189 | 2,510,808 | |||
Sogecable SAa,b | 59,615 | 2,510,512 | |||
10,049,463 | |||||
OIL & GAS – 4.92% | |||||
Repsol YPF SA | 824,082 | 28,586,239 | |||
28,586,239 | |||||
RETAIL – 2.71% | |||||
Industria de Diseno Textil SA | 301,910 | 15,743,621 | |||
15,743,621 | |||||
TELECOMMUNICATIONS – 21.38% | |||||
Telefonica SA | 4,253,606 | 124,240,362 | |||
124,240,362 | |||||
TOTAL COMMON STOCKS | 580,448,913 |
SCHEDULESOF INVESTMENTS | 33 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI SPAIN INDEX FUND
February 29, 2008
Security | Shares | Value | ||||
SHORT-TERM INVESTMENTS – 10.32% |
| |||||
MONEY MARKET FUNDS – 10.32% | ||||||
Barclays Global Investors Funds | 386,598 | $ | 386,598 | |||
BGI Cash Premier Fund LLC | 59,614,404 | 59,614,404 | ||||
60,001,002 | ||||||
TOTAL SHORT-TERM INVESTMENTS | 60,001,002 | |||||
TOTAL INVESTMENTS | 640,449,915 | |||||
Other Assets, Less Liabilities – (10.22)% | (59,399,061 | ) | ||||
NET ASSETS – 100.00% | $ | 581,050,854 | ||||
a | All or a portion of this security represents a security on loan. See Note 5. |
b | Non-income earning security. |
c | Affiliated issuer. See Note 2. |
d | The rate quoted is the annualized seven-day yield of the fund at period end. |
e | This security represents an investment of securities lending collateral. See Note 5. |
See notes to financial statements.
34 | 2008 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited)
iSHARES® MSCI SWEDEN INDEX FUND
February 29, 2008
Security | Shares | Value | |||
COMMON STOCKS – 99.85% | |||||
AGRICULTURE – 2.08% | |||||
Swedish Match AB | 232,193 | $ | 5,456,812 | ||
5,456,812 | |||||
AUTO MANUFACTURERS – 2.93% | |||||
Scania AB Class B | 314,665 | 7,675,502 | |||
7,675,502 | |||||
BANKS – 20.48% | |||||
Nordea Bank AB | 1,795,595 | 27,239,938 | |||
Skandinaviska Enskilda Banken AB Class A | 401,238 | 10,112,402 | |||
Svenska Handelsbanken AB Class A | 426,064 | 11,981,086 | |||
Swedbank AB Class A | 156,722 | 4,280,079 | |||
53,613,505 | |||||
COMMERCIAL SERVICES – 1.59% | |||||
Securitas AB Class B | 273,082 | 3,308,462 | |||
Securitas Direct AB Class Ba | 115,155 | 492,730 | |||
Securitas Systems AB Class B | 142,240 | 368,862 | |||
4,170,054 | |||||
COSMETICS & PERSONAL CARE – 0.46% | |||||
Oriflame Cosmetics SA SDR | 17,843 | 1,197,264 | |||
1,197,264 | |||||
DIVERSIFIED FINANCIAL SERVICES – 0.16% | |||||
D. Carnegie & Co. AB | 23,424 | 405,276 | |||
405,276 | |||||
ENGINEERING & CONSTRUCTION – 2.42% | |||||
Skanska AB Class B | 325,844 | 6,337,425 | |||
6,337,425 | |||||
FOOD – 0.17% | |||||
Axfood AB | 12,960 | 452,662 | |||
452,662 | |||||
FOREST PRODUCTS & PAPER – 3.78% | |||||
Billerud AB | 18,907 | 215,274 | |||
Holmen AB Class B | 46,135 | 1,596,432 | |||
Svenska Cellulosa AB Class B | 488,096 | 8,069,141 | |||
9,880,847 | |||||
HAND & MACHINE TOOLS – 5.06% | |||||
Sandvik AB | 773,964 | 13,234,121 | |||
13,234,121 |
Security | Shares | Value | |||
HEALTH CARE - PRODUCTS – 1.70% | |||||
Elekta AB Class B | 37,215 | $ | 683,090 | ||
Getinge AB Class B | 147,576 | 3,779,155 | |||
4,462,245 | |||||
HOME FURNISHINGS – 1.58% | |||||
Electrolux AB Class B | 220,155 | 3,568,210 | |||
Nobia AB | 65,257 | 557,919 | |||
4,126,129 | |||||
HOUSEHOLD PRODUCTS & WARES – 0.99% | |||||
Husqvarna AB | 235,707 | 2,588,235 | |||
2,588,235 | |||||
INVESTMENT COMPANIES – 1.62% | |||||
Investor AB Class B | 198,706 | 4,243,102 | |||
4,243,102 | |||||
IRON & STEEL – 2.41% | |||||
SSAB Svenskt Stal AB Class A | 156,785 | 4,446,972 | |||
SSAB Svenskt Stal AB Class B | 72,600 | 1,870,922 | |||
6,317,894 | |||||
MACHINERY – 13.11% | |||||
Atlas Copco AB Class A | 581,042 | 9,134,844 | |||
Atlas Copco AB Class B | 343,773 | 4,944,951 | |||
Volvo AB Class A | 409,121 | 6,117,022 | |||
Volvo AB Class B | 939,983 | 14,130,443 | |||
34,327,260 | |||||
MANUFACTURING – 1.98% | |||||
Alfa Laval AB | 82,913 | 4,508,551 | |||
Trelleborg AB Class B | 37,333 | 674,667 | |||
5,183,218 | |||||
MEDIA – 1.34% | |||||
Eniro AB | 71,907 | 545,430 | |||
Modern Times Group MTG AB Class B | 44,867 | 2,948,762 | |||
3,494,192 | |||||
METAL FABRICATE & HARDWARE – 4.50% | |||||
Assa Abloy AB Class Bb | 272,058 | 4,927,548 | |||
Hoganas AB Class B | 10,923 | 234,574 | |||
SKF AB Class B | 356,069 | 6,622,298 | |||
11,784,420 | |||||
MINING – 1.11% | |||||
Boliden AB | 251,800 | 2,897,583 | |||
2,897,583 |
SCHEDULESOF INVESTMENTS | 35 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI SWEDEN INDEX FUND
February 29, 2008
Security | Shares | Value | |||
OIL & GAS – 1.03% | |||||
Lundin Petroleum ABa | 203,854 | $ | 2,684,507 | ||
2,684,507 | |||||
REAL ESTATE – 0.93% | |||||
Castellum AB | 67,477 | 833,907 | |||
Fabege AB | 56,672 | 626,893 | |||
Kungsleden AB | 59,428 | 710,354 | |||
Wihlborgs Fastigheter AB | 12,489 | 267,698 | |||
2,438,852 | |||||
RETAIL – 8.87% | |||||
Hennes & Mauritz AB Class B | 410,246 | 23,205,539 | |||
23,205,539 | |||||
TELECOMMUNICATIONS – 19.55% | |||||
Millicom International Cellular SA SDRa | 28,322 | 3,130,619 | |||
Tele2 AB Class B | 265,098 | 4,694,072 | |||
Telefonaktiebolaget LM Ericsson AB Class B | 12,810,272 | 27,821,787 | |||
TeliaSonera AB | 1,940,300 | 15,535,231 | |||
51,181,709 | |||||
TOTAL COMMON STOCKS | 261,358,353 | ||||
RIGHTS – 0.02% | |||||
HEALTH CARE - PRODUCTS – 0.02% | |||||
Getinge ABc | 145,359 | 55,954 | |||
55,954 | |||||
TOTAL RIGHTS | 55,954 |
Security | Shares | Value | ||||
SHORT-TERM INVESTMENTS – 1.77% |
| |||||
MONEY MARKET FUNDS – 1.77% | ||||||
Barclays Global Investors Funds | 101,725 | $ | 101,725 | |||
BGI Cash Premier Fund LLC | 4,519,500 | 4,519,500 | ||||
4,621,225 | ||||||
TOTAL SHORT-TERM INVESTMENTS | ||||||
(Cost: $4,621,225) | 4,621,225 | |||||
TOTAL INVESTMENTS | 266,035,532 | |||||
Other Assets, Less Liabilities – (1.64)% | (4,284,772 | ) | ||||
NET ASSETS – 100.00% | $ | 261,750,760 | ||||
SDR – Swedish 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 | Affiliated issuer. See Note 2. |
e | The rate quoted is the annualized seven-day yield of the fund at period end. |
f | This security represents an investment of securities lending collateral. See Note 5. |
See notes to financial statements.
36 | 2008 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited)
iSHARES® MSCI SWITZERLAND INDEX FUND
February 29, 2008
Security | Shares | Value | |||
COMMON STOCKS – 99.45% | |||||
BANKS – 6.15% | |||||
Banque Cantonale Vaudoise Registered | 1,712 | $ | 885,687 | ||
Credit Suisse Group Registered | 418,162 | 20,831,983 | |||
EFG International Registered | 37,848 | 1,276,346 | |||
Julius Baer Holding AG Registered | 71,681 | 5,335,901 | |||
Vontobel Holding AG Registered | 44,391 | 1,577,799 | |||
29,907,716 | |||||
BUILDING MATERIALS – 3.52% | |||||
Geberit AG Registered | 21,474 | 3,168,228 | |||
Holcim Ltd. Registered | 136,064 | 13,947,929 | |||
17,116,157 | |||||
CHEMICALS – 6.33% | |||||
Ciba Specialty Chemicals AG Registered | 25,244 | 1,015,274 | |||
Givaudan SA Registered | 6,933 | 6,967,539 | |||
Lonza Group AG Registered | 23,439 | 3,098,852 | |||
Syngenta AG Registered | 68,617 | 19,704,872 | |||
30,786,537 | |||||
COMMERCIAL SERVICES – 1.83% | |||||
Adecco SA Registered | 70,126 | 3,688,367 | |||
SGS SA Registered | 3,862 | 5,216,919 | |||
8,905,286 | |||||
COMPUTERS – 0.48% | |||||
Logitech International SA Registereda | 91,122 | 2,350,071 | |||
2,350,071 | |||||
DIVERSIFIED FINANCIAL SERVICES – 5.56% | |||||
UBS AG Registered | 821,729 | 27,049,826 | |||
27,049,826 | |||||
ENGINEERING & CONSTRUCTION – 4.87% | |||||
ABB Ltd. Registered | 929,784 | 23,712,253 | |||
23,712,253 | |||||
FOOD – 18.49% | |||||
Lindt & Sprungli AG Participation Certificates | 456 | 1,519,854 | |||
Nestle SA Registered | 184,796 | 88,432,269 | |||
89,952,123 |
Security | Shares | Value | |||
HAND & MACHINE TOOLS – 0.61% | |||||
Schindler Holding AG Participation Certificates | 34,303 | $ | 2,354,675 | ||
Schindler Holding AG Registered | 9,193 | 626,195 | |||
2,980,870 | |||||
HEALTH CARE - PRODUCTS – 5.17% | |||||
Nobel Biocare Holding AG Bearer | 23,575 | 5,725,486 | |||
Sonova Holding AG Registered | 49,460 | 4,702,917 | |||
Straumann Holding AG Registered | 12,022 | 3,530,124 | |||
Synthes Inc. | 79,573 | 11,183,521 | |||
25,142,048 | |||||
INSURANCE – 9.97% | |||||
Swiss Life Holding Registereda | 20,097 | 5,058,907 | |||
Swiss Reinsurance Co. Registered | 244,341 | 19,686,796 | |||
Zurich Financial Services | 75,529 | 23,752,054 | |||
48,497,757 | |||||
INVESTMENT COMPANIES – 0.36% | |||||
Pargesa Holding SA Class B | 17,328 | 1,776,294 | |||
1,776,294 | |||||
LEISURE TIME – 0.01% | |||||
Kuoni Reisen Holding AG Registered | 55 | 25,780 | |||
25,780 | |||||
MACHINERY – 0.08% | |||||
Rieter Holding AG Registered | 1,007 | 408,328 | |||
408,328 | |||||
MANUFACTURING – 0.37% | |||||
Sulzer AG Registered | 1,554 | 1,792,504 | |||
1,792,504 | |||||
PHARMACEUTICALS – 24.80% | |||||
Actelion Ltd. Registereda | 59,888 | 3,129,805 | |||
Novartis AG Registered | 1,001,745 | 49,377,065 | |||
Roche Holding AG Genusschein | 347,095 | 68,135,433 | |||
120,642,303 | |||||
REAL ESTATE – 0.68% | |||||
PSP Swiss Property AG Registereda | 53,836 | 3,306,081 | |||
3,306,081 |
SCHEDULESOF INVESTMENTS | 37 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI SWITZERLAND INDEX FUND
February 29, 2008
Security | Shares | Value | |||
RETAIL – 6.42% | |||||
Compagnie Financiere Richemont SA A Units Bearer | 327,734 | $ | 19,090,082 | ||
Swatch Group AG (The) Bearer | 25,622 | 7,572,703 | |||
Swatch Group AG (The) Registered | 79,592 | 4,563,692 | |||
31,226,477 | |||||
SEMICONDUCTORS – 0.24% | |||||
OC Oerlikon Corp. AG Registereda | 3,591 | 1,168,847 | |||
1,168,847 | |||||
TELECOMMUNICATIONS – 2.76% | |||||
Swisscom AG Registered | 35,193 | 13,427,488 | |||
13,427,488 | |||||
TRANSPORTATION – 0.75% | |||||
Kuehne & Nagel International AG Registered | 37,615 | 3,661,318 | |||
3,661,318 | |||||
TOTAL COMMON STOCKS | |||||
(Cost: $438,703,249) | 483,836,064 | ||||
SHORT-TERM INVESTMENTS – 0.02% | |||||
MONEY MARKET FUNDS – 0.02% | |||||
Barclays Global Investors Funds Institutional Money Market Fund, Institutional Shares 3.59%b,c | 111,806 | 111,806 | |||
111,806 | |||||
TOTAL SHORT-TERM INVESTMENTS | |||||
(Cost: $111,806) | 111,806 | ||||
TOTAL INVESTMENTS | |||||
(Cost: $438,815,055) | 483,947,870 | ||||
Other Assets, Less Liabilities – 0.53% | 2,578,728 | ||||
NET ASSETS – 100.00% | $ | 486,526,598 | |||
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.
38 | 2008 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited)
iSHARES® MSCI UNITED KINGDOM INDEX FUND
February 29, 2008
Security | Shares | Value | |||
COMMON STOCKS – 99.52% | |||||
ADVERTISING – 0.48% | |||||
WPP Group PLC | 463,976 | $ | 5,505,343 | ||
5,505,343 | |||||
AEROSPACE & DEFENSE – 2.05% | |||||
BAE Systems PLC | 1,432,890 | 13,759,846 | |||
BBA Aviation PLC | 84,122 | 308,734 | |||
Cobham PLC | 455,308 | 1,652,900 | |||
Meggitt PLC | 260,760 | 1,449,777 | |||
Rolls-Royce Group PLCa | 739,683 | 6,393,135 | |||
23,564,392 | |||||
AGRICULTURE – 3.16% | |||||
British American Tobacco PLC | 623,007 | 23,484,461 | |||
Imperial Tobacco Group PLC | 276,138 | 12,853,473 | |||
36,337,934 | |||||
AIRLINES – 0.10% | |||||
British Airways PLCa | 235,299 | 1,205,246 | |||
1,205,246 | |||||
APPAREL – 0.13% | |||||
Burberry Group PLC | 174,994 | 1,466,363 | |||
1,466,363 | |||||
AUTO PARTS & EQUIPMENT – 0.13% | |||||
GKN PLC | 284,242 | 1,498,348 | |||
1,498,348 | |||||
BANKS – 15.67% | |||||
Alliance & Leicester PLC | 80,649 | 904,006 | |||
Barclays PLCb | 2,729,016 | 25,907,796 | |||
HBOS PLC | 1,522,152 | 18,273,164 | |||
HSBC Holdings PLC | 4,831,893 | 73,624,868 | |||
Lloyds TSB Group PLC | 2,302,020 | 20,766,573 | |||
Royal Bank of Scotland Group PLC | 4,077,360 | 31,226,135 | |||
Standard Chartered PLC | 286,317 | 9,534,129 | |||
180,236,671 | |||||
BEVERAGES – 3.02% | |||||
Diageo PLC | 1,066,408 | 21,934,230 | |||
SABMiller PLC | 366,559 | 7,678,046 | |||
Scottish & Newcastle PLC | 325,990 | 5,116,344 | |||
34,728,620 |
Security | Shares | Value | |||
BUILDING MATERIALS – 0.09% | |||||
Travis Perkins PLC | 47,637 | $ | 1,027,193 | ||
1,027,193 | |||||
CHEMICALS – 0.29% | |||||
Johnson Matthey PLC | 87,085 | 3,371,046 | |||
3,371,046 | |||||
COMMERCIAL SERVICES – 1.49% | |||||
Aggreko PLC | 64,206 | 752,901 | |||
Bunzl PLC | 130,908 | 1,816,305 | |||
Capita Group PLC | 240,635 | 3,140,083 | |||
Davis Service Group PLC (The) | 42,115 | 420,132 | |||
De La Rue PLC | 33,669 | 606,453 | |||
Experian Group Ltd. | 415,421 | 3,520,274 | |||
G4S PLC | 463,613 | 2,017,354 | |||
Hays PLC | 583,200 | 1,264,511 | |||
Intertek Group PLC | 35,235 | 630,104 | |||
Rank Group PLC | 78,449 | 141,226 | |||
Rentokil Initial PLC | 722,923 | 1,199,324 | |||
Serco Group PLC | 193,803 | 1,680,836 | |||
17,189,503 | |||||
COMPUTERS – 0.10% | |||||
LogicaCMG PLC | 600,039 | 1,113,030 | |||
1,113,030 | |||||
DISTRIBUTION & WHOLESALE – 0.42% | |||||
Inchcape PLC | 184,803 | 1,443,789 | |||
Wolseley PLC | 273,943 | 3,386,724 | |||
4,830,513 | |||||
DIVERSIFIED FINANCIAL SERVICES – 1.78% | |||||
Cattles PLC | 73,722 | 343,156 | |||
Close Brothers Group PLC | 28,188 | 369,512 | |||
ICAP PLC | 209,133 | 2,627,087 | |||
Investec PLC | 164,127 | 1,207,981 | |||
London Stock Exchange | |||||
Group PLC | 62,640 | 1,693,361 | |||
Man Group PLC | 698,697 | 7,713,657 | |||
Old Mutual PLC | 2,120,584 | 5,285,487 | |||
Schroders PLC | 43,869 | 836,427 | |||
Tullett Prebon PLC | 39,539 | 397,187 | |||
20,473,855 |
SCHEDULESOF INVESTMENTS | 39 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI UNITED KINGDOM INDEX FUND
February 29, 2008
Security | Shares | Value | |||
ELECTRIC – 3.06% | |||||
British Energy Group PLC | 420,732 | $ | 4,732,783 | ||
International Power PLC | 608,618 | 4,603,546 | |||
National Grid PLC | 1,061,675 | 15,490,668 | |||
Scottish & Southern Energy PLC | 351,736 | 10,334,174 | |||
35,161,171 | |||||
ELECTRONICS – 0.05% | |||||
Electrocomponents PLC | 89,005 | 312,934 | |||
Premier Farnell PLC | 73,602 | 219,614 | |||
532,548 | |||||
ENGINEERING & CONSTRUCTION – 0.33% | |||||
AMEC PLC | 139,635 | 2,152,655 | |||
Balfour Beatty PLC | 179,568 | 1,593,990 | |||
3,746,645 | |||||
ENTERTAINMENT – 0.24% | |||||
Ladbrokes PLC | 256,563 | 1,552,755 | |||
PartyGaming PLCa | 243,719 | 127,262 | |||
William Hill PLC | 145,328 | 1,089,856 | |||
2,769,873 | |||||
ENVIRONMENTAL CONTROL – 0.05% | |||||
Biffa PLC | 78,644 | 542,451 | |||
542,451 | |||||
FOOD – 5.34% | |||||
Cadbury Schweppes PLC | 852,833 | 9,551,044 | |||
J Sainsbury PLC | 634,123 | 4,481,115 | |||
Tate & Lyle PLC | 196,272 | 2,049,727 | |||
Tesco PLC | 3,199,323 | 25,488,194 | |||
Unilever PLC | 534,528 | 16,969,998 | |||
Wm Morrison | |||||
Supermarkets PLC | 487,644 | 2,885,814 | |||
61,425,892 | |||||
FOOD SERVICE – 0.55% | |||||
Associated British Foods PLC | 73,341 | 1,237,876 | |||
Compass Group PLC | 781,173 | 5,073,514 | |||
6,311,390 | |||||
FOREST PRODUCTS & PAPER – 0.10% | |||||
Mondi PLC | 151,291 | 1,176,707 | |||
1,176,707 | |||||
GAS – 0.84% | |||||
Centrica PLC | 1,494,469 | 9,602,137 | |||
9,602,137 |
Security | Shares | Value | |||
HEALTH CARE – PRODUCTS – 0.45% | |||||
Smith & Nephew PLC | 368,716 | $ | 4,807,764 | ||
SSL International PLC | 43,587 | 423,762 | |||
5,231,526 | |||||
HOLDING COMPANIES - DIVERSIFIED – 0.11% | |||||
Tomkins PLC | 358,683 | 1,212,937 | |||
1,212,937 | |||||
HOME BUILDERS – 0.45% | |||||
Barratt Developments PLC | 118,348 | 965,213 | |||
Berkeley Group Holdings PLC (The)a | 34,191 | 710,053 | |||
Bovis Homes Group PLC | 24,534 | 284,522 | |||
Persimmon PLC | 116,667 | 1,710,385 | |||
TaylorWimpey PLC | 438,480 | 1,501,098 | |||
5,171,271 | |||||
HOME FURNISHINGS – 0.02% | |||||
Galiform PLCa | 116,877 | 191,224 | |||
191,224 | |||||
HOUSEHOLD PRODUCTS & WARES – 1.17% | |||||
Reckitt Benckiser PLC | 247,689 | 13,450,791 | |||
13,450,791 | |||||
INSURANCE – 3.90% | |||||
Aviva PLC | 1,064,880 | 12,953,156 | |||
Friends Provident PLC | 754,458 | 2,003,525 | |||
Legal & General Group PLC | 2,644,006 | 6,553,283 | |||
Prudential PLC | 1,006,155 | 12,218,813 | |||
Resolution PLC | 277,453 | 3,808,176 | |||
Royal & Sun Alliance Insurance Group PLC | 1,310,674 | 3,441,494 | |||
Standard Life PLC | 881,746 | 3,841,192 | |||
44,819,639 | |||||
LEISURE TIME – 0.44% | |||||
Carnival PLC | 68,121 | 2,711,481 | |||
Thomas Cook Group PLCa | 194,516 | 1,186,912 | |||
TUI Travel PLCa | 223,537 | 1,201,693 | |||
5,100,086 | |||||
LODGING – 0.16% | |||||
InterContinental Hotels Group PLC | 121,905 | 1,870,837 | |||
1,870,837 |
40 | 2008 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI UNITED KINGDOM INDEX FUND
February 29, 2008
Security | Shares | Value | |||
MANUFACTURING – 0.62% | |||||
Charter PLCa | 35,413 | $ | 582,568 | ||
Cookson Group PLC | 47,241 | 561,012 | |||
FKI PLC | 120,321 | 175,318 | |||
IMI PLC | 136,242 | 1,052,884 | |||
Invensys PLCa | 325,989 | 1,668,156 | |||
Smiths Group PLC | 155,504 | 3,073,179 | |||
7,113,117 | |||||
MEDIA – 2.49% | |||||
British Sky Broadcasting Group PLC | 459,487 | 5,191,586 | |||
Daily Mail & General Trust PLC Class A | 121,968 | 1,136,669 | |||
Emap PLC | 85,887 | 1,578,621 | |||
ITV PLC | 1,384,344 | 1,845,004 | |||
Pearson PLC | 325,421 | 4,311,201 | |||
Reed Elsevier PLC | 446,516 | 5,657,895 | |||
Reuters Group PLC | 518,085 | 6,157,684 | |||
Trinity Mirror PLC | 60,166 | 341,094 | |||
United Business Media PLC | 100,177 | 1,068,098 | |||
Yell Group PLC | 319,561 | 1,393,708 | |||
28,681,560 | |||||
MINING – 12.20% | |||||
Anglo American PLC | 541,575 | 34,839,914 | |||
Antofagasta PLC | 79,083 | 1,278,159 | |||
BHP Billiton PLC | 925,506 | 30,008,570 | |||
Eurasian Natural Resources Corp. | 129,456 | 2,652,393 | |||
Kazakhmys PLC | 43,075 | 1,324,687 | |||
Lonmin PLC | 31,858 | 2,095,710 | |||
Rio Tinto PLC | 408,726 | 46,505,760 | |||
Vedanta Resources PLC | 28,720 | 1,254,571 | |||
Xstrata PLC | 258,390 | 20,353,980 | |||
140,313,744 | |||||
OIL & GAS – 18.57% | |||||
BG Group PLC | 1,381,995 | 32,768,848 | |||
BP PLC | 7,765,011 | 84,336,034 | |||
Royal Dutch Shell PLC | 1,472,040 | 52,941,530 | |||
Royal Dutch Shell PLC | 1,126,476 | 39,908,400 | |||
Tullow Oil PLC | 290,298 | 3,623,566 | |||
213,578,378 |
Security | Shares | Value | |||
PACKAGING & CONTAINERS – 0.20% | |||||
Rexam PLC | 265,570 | $ | 2,331,000 | ||
2,331,000 | |||||
PHARMACEUTICALS – 6.47% | |||||
AstraZeneca PLC | 598,734 | 22,545,662 | |||
GlaxoSmithKline PLC | 2,264,436 | 49,638,665 | |||
Shire PLC | 112,517 | 2,215,806 | |||
74,400,133 | |||||
REAL ESTATE – 1.34% | |||||
British Land Co. PLC | 210,627 | 3,986,587 | |||
Brixton PLC | 56,376 | 367,269 | |||
Great Portland Estates PLC | 44,063 | 438,251 | |||
Hammerson PLC | 119,565 | 2,628,118 | |||
Land Securities Group PLC | 191,313 | 6,012,845 | |||
Liberty International PLC | 104,437 | 2,001,633 | |||
15,434,703 | |||||
REAL ESTATE INVESTMENT TRUSTS – 0.16% | |||||
SEGRO PLC | 180,386 | 1,858,708 | |||
1,858,708 | |||||
RETAIL – 1.95% | |||||
Carphone Warehouse | 161,338 | 986,068 | |||
DSG International PLC | 746,460 | 942,885 | |||
Enterprise Inns PLC | 212,837 | 1,761,241 | |||
Home Retail Group PLC | 358,220 | 1,845,559 | |||
Kesa Electricals PLC | 217,413 | 929,827 | |||
Kingfisher PLC | 976,001 | 2,545,256 | |||
Marks & Spencer Group PLC | 692,368 | 5,546,908 | |||
Mitchells & Butlers PLC | 165,876 | 1,469,974 | |||
Next PLC | 85,759 | 2,198,928 | |||
Punch Taverns PLC | 110,097 | 1,413,677 | |||
Signet Group PLC | 706,197 | 860,420 | |||
Whitbread PLC | 77,517 | 1,952,132 | |||
22,452,875 | |||||
SEMICONDUCTORS – 0.10% | |||||
ARM Holdings PLC | 526,611 | 950,638 | |||
CSR PLCa | 26,991 | 171,541 | |||
1,122,179 | |||||
SOFTWARE – 0.21% | |||||
Misys PLC | 99,084 | 294,661 | |||
Sage Group PLC | 527,502 | 2,072,381 | |||
2,367,042 |
SCHEDULESOF INVESTMENTS | 41 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI UNITED KINGDOM INDEX FUND
February 29, 2008
Security | Shares | Value | |||
TELECOMMUNICATIONS – 7.73% | |||||
BT Group PLC | 3,293,300 | $ | 14,870,843 | ||
Cable & Wireless PLC | 999,291 | 3,514,412 | |||
Vodafone Group PLC | 21,771,837 | 70,462,992 | |||
88,848,247 | |||||
TRANSPORTATION – 0.43% | |||||
Arriva PLC | 45,675 | 620,551 | |||
FirstGroup PLC | 175,035 | 2,015,960 | |||
National Express Group PLC | 53,244 | 1,203,171 | |||
Stagecoach Group PLC | 215,951 | 1,080,368 | |||
Stagecoach Group PLC | 303,597 | 60 | |||
4,920,110 | |||||
VENTURE CAPITAL – 0.22% | |||||
3i Group PLC | 157,993 | 2,570,808 | |||
2,570,808 | |||||
WATER – 0.66% | |||||
Severn Trent PLC | 95,112 | 2,688,486 | |||
United Utilities PLC | 359,705 | 4,958,590 | |||
7,647,076 | |||||
TOTAL COMMON STOCKS | |||||
(Cost: $1,083,361,395) | 1,144,504,862 | ||||
SHORT-TERM INVESTMENTS – 0.01% | |||||
MONEY MARKET FUNDS – 0.01% | |||||
Barclays Global Investors Funds | 113,277 | 113,277 | |||
113,277 | |||||
TOTAL SHORT-TERM INVESTMENTS | |||||
(Cost: $113,277) | 113,277 | ||||
TOTAL INVESTMENTS | |||||
(Cost: $1,083,474,672) | 1,144,618,139 | ||||
Other Assets, Less Liabilities – 0.47% | 5,379,777 | ||||
NET ASSETS – 100.00% | $ | 1,149,997,916 | |||
a | Non-income earning security. |
b | Affiliated issuer. See Note 2. |
c | Security valued at fair value in accordance with procedures approved by the Board of Directors. See Note 1. |
d | The rate quoted is the annualized seven-day yield of the fund at period end. |
See notes to financial statements.
42 | 2008 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Statements of Assets and Liabilities (Unaudited)
iSHARES®, INC.
February 29, 2008
iShares MSCI | |||||||||||||||
Austria Index Fund | Belgium Index Fund | EMU Index Fund | France Index Fund | ||||||||||||
ASSETS | |||||||||||||||
Investments, at cost: | |||||||||||||||
Unaffiliated issuers | $ | 334,229,488 | $ | 301,060,717 | $ | 2,417,120,972 | $ | 688,437,380 | |||||||
Affiliated issuers (Note 2) | 4,382,813 | 63,007 | 59,045,391 | 6,829,141 | |||||||||||
Total cost of investments | $ | 338,612,301 | $ | 301,123,724 | $ | 2,476,166,363 | $ | 695,266,521 | |||||||
Investments in securities, at value | |||||||||||||||
Unaffiliated issuers | $ | 296,422,412 | $ | 293,161,944 | $ | 2,774,128,532 | $ | 635,403,243 | |||||||
Affiliated issuers (Note 2) | 4,382,813 | 63,007 | 59,045,391 | 6,829,141 | |||||||||||
Total value of investments | 300,805,225 | 293,224,951 | 2,833,173,923 | 642,232,384 | |||||||||||
Foreign currencies, at valueb | 86,787 | 123,444 | 5,796,842 | 3,335,368 | |||||||||||
Receivables: | |||||||||||||||
Investment securities sold | 172,556 | 5,186,289 | 12,733,404 | 2,387,839 | |||||||||||
Due from custodian (Note 4) | – | – | – | 334,940 | |||||||||||
Dividends and interest | 2,201,896 | 256,208 | 1,168,985 | 14,178 | |||||||||||
Capital shares sold | – | – | – | 352,830 | |||||||||||
Total Assets | 303,266,464 | 298,790,892 | 2,852,873,154 | 648,657,539 | |||||||||||
LIABILITIES | |||||||||||||||
Payables: | |||||||||||||||
Investment securities purchased | – | 4,527,608 | 15,440,689 | 5,652,539 | |||||||||||
Collateral for securities on loan (Note 5) | 4,363,538 | – | 57,759,398 | 6,610,740 | |||||||||||
Capital shares redeemed | 4,967 | 19,019 | – | – | |||||||||||
Investment advisory fees (Note 2) | 135,518 | 116,423 | 1,114,515 | 228,085 | |||||||||||
Total Liabilities | 4,504,023 | 4,663,050 | 74,314,602 | 12,491,364 | |||||||||||
NET ASSETS | $ | 298,762,441 | $ | 294,127,842 | $ | 2,778,558,552 | $ | 636,166,175 | |||||||
Net assets consist of: | |||||||||||||||
Paid-in capital | $ | 336,280,624 | $ | 304,468,848 | $ | 2,327,761,052 | $ | 675,644,719 | |||||||
Undistributed (distributions in excess of) net investment income (accumulated net investment loss) | (946,667 | ) | (2,618,493 | ) | 284,282 | (262,473 | ) | ||||||||
Undistributed net realized gain | 948,945 | 118,377 | 93,307,518 | 13,760,985 | |||||||||||
Net unrealized appreciation (depreciation) on investments and translation of assets and liabilities in foreign currencies | (37,520,461 | ) | (7,840,890 | ) | 357,205,700 | (52,977,056 | ) | ||||||||
NET ASSETS | $ | 298,762,441 | $ | 294,127,842 | $ | 2,778,558,552 | $ | 636,166,175 | |||||||
Shares outstandingc | 8,900,000 | 12,880,000 | 25,900,000 | 18,600,000 | |||||||||||
Net asset value per share | $ | 33.57 | $ | 22.84 | $ | 107.28 | $ | 34.20 | |||||||
a | Securities on loan with market values of $4,148,090, $-, $54,972,868 and $6,500,592, respectively. See Note 5. |
b | Cost of foreign currencies: $86,773, $118,872, $5,641,710 and $3,263,940, respectively. |
c | $0.001 par value, number of shares authorized: 19.8 million, 136.2 million, 500 million and 340.2 million, respectively. |
See notes to financial statements.
FINANCIAL STATEMENTS | 43 |
Table of Contents
Statements of Assets and Liabilities (Unaudited) (Continued)
iSHARES®, INC.
February 29, 2008
iShares MSCI | ||||||||||||||||
Germany Index Fund | Italy Index Fund | Netherlands Index Fund | Spain Index Fund | |||||||||||||
ASSETS | ||||||||||||||||
Investments, at cost: | ||||||||||||||||
Unaffiliated issuers | $ | 1,881,108,829 | $ | 424,512,079 | $ | 269,433,897 | $ | 638,473,715 | ||||||||
Affiliated issuers (Note 2) | 5,917,260 | 6,196,151 | 5,656,762 | 60,001,002 | ||||||||||||
Total cost of investments | $ | 1,887,026,089 | $ | 430,708,230 | $ | 275,090,659 | $ | 698,474,717 | ||||||||
Investments in securities, at value | ||||||||||||||||
Unaffiliated issuers | $ | 1,963,016,873 | $ | 409,940,669 | $ | 262,806,233 | $ | 580,448,913 | ||||||||
Affiliated issuers (Note 2) | 5,917,260 | 6,196,151 | 5,656,762 | 60,001,002 | ||||||||||||
Total value of investments | 1,968,934,133 | 416,136,820 | 268,462,995 | 640,449,915 | ||||||||||||
Foreign currencies, at valueb | 2,563,055 | 359,931 | 170,277 | 232,334 | ||||||||||||
Receivables: | ||||||||||||||||
Investment securities sold | 3,407,100 | 10,546,965 | 2,483,517 | 10,993,809 | ||||||||||||
Dividends and interest | 359,245 | 84,227 | 4,451 | 196,245 | ||||||||||||
Capital shares sold | 13,891 | 513,989 | – | 37,886 | ||||||||||||
Total Assets | 1,975,277,424 | 427,641,932 | 271,121,240 | 651,910,189 | ||||||||||||
LIABILITIES | ||||||||||||||||
Payables: | ||||||||||||||||
Investment securities purchased | 3,328,608 | 10,719,571 | 2,345,750 | 10,973,667 | ||||||||||||
Collateral for securities on loan (Note 5) | 5,720,936 | 6,052,073 | 5,565,712 | 59,614,404 | ||||||||||||
Capital shares redeemed | – | – | – | 14,241 | ||||||||||||
Investment advisory fees (Note 2) | 774,948 | 117,932 | 102,594 | 257,023 | ||||||||||||
Total Liabilities | 9,824,492 | 16,889,576 | 8,014,056 | 70,859,335 | ||||||||||||
NET ASSETS | $ | 1,965,452,932 | $ | 410,752,356 | $ | 263,107,184 | $ | 581,050,854 | ||||||||
Net assets consist of: | ||||||||||||||||
Paid-in capital | $ | 1,839,163,898 | $ | 435,347,783 | $ | 266,660,608 | $ | 587,280,674 | ||||||||
Undistributed (distributions in excess of) net investment income (accumulated net investment loss) | (1,000,730 | ) | (149,325 | ) | 1,209,359 | 3,724,279 | ||||||||||
Undistributed net realized gain (accumulated net realized loss) | 45,297,027 | (9,907,574 | ) | 1,858,246 | 48,060,765 | |||||||||||
Net unrealized appreciation (depreciation) on investments and translation of assets and liabilities in foreign currencies | 81,992,737 | (14,538,528 | ) | (6,621,029 | ) | (58,014,864 | ) | |||||||||
NET ASSETS | $ | 1,965,452,932 | $ | 410,752,356 | $ | 263,107,184 | $ | 581,050,854 | ||||||||
Shares outstandingc | 63,000,000 | 13,650,000 | 9,600,000 | 9,975,000 | ||||||||||||
Net asset value per share | $ | 31.20 | $ | 30.09 | $ | 27.41 | $ | 58.25 | ||||||||
a | Securities on loan with market values of $5,443,193, $5,752,041, $5,312,181 and $56,785,956, respectively. See Note 5. |
b | Cost of foreign currencies: $2,489,771, $356,473, $163,665 and $224,787, respectively. |
c | $0.001 par value, number of shares authorized: 382.2 million, 63.6 million, 255 million and 127.8 million, respectively. |
See notes to financial statements.
44 | 2008 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Statements of Assets and Liabilities (Unaudited) (Continued)
iSHARES®, INC.
February 29, 2008
iShares MSCI | |||||||||||
Sweden Index Fund | Switzerland Index Fund | United Kingdom Index Fund | |||||||||
ASSETS | |||||||||||
Investments, at cost: | |||||||||||
Unaffiliated issuers | $ | 307,592,211 | $ | 438,703,249 | $ | 1,052,849,497 | |||||
Affiliated issuers (Note 2) | 4,621,225 | 111,806 | 30,625,175 | ||||||||
Total cost of investments | $ | 312,213,436 | $ | 438,815,055 | $ | 1,083,474,672 | |||||
Investments in securities, at value | |||||||||||
Unaffiliated issuers | $ | 261,414,307 | $ | 483,836,064 | $ | 1,118,597,066 | |||||
Affiliated issuers (Note 2) | 4,621,225 | 111,806 | 26,021,073 | ||||||||
Total value of investments | 266,035,532 | 483,947,870 | 1,144,618,139 | ||||||||
Foreign currencies, at valueb | 171,421 | 316,543 | 1,036,192 | ||||||||
Receivables: | |||||||||||
Investment securities sold | 1,221,447 | 2,473,979 | 3,608,327 | ||||||||
Dividends and interest | 3,068 | 2,385,526 | 4,618,235 | ||||||||
Capital shares sold | – | 80,389 | – | ||||||||
Total Assets | 267,431,468 | 489,204,307 | 1,153,880,893 | ||||||||
LIABILITIES | |||||||||||
Payables: | |||||||||||
Investment securities purchased | 1,057,330 | 2,477,379 | 3,415,884 | ||||||||
Collateral for securities on loan (Note 5) | 4,519,500 | – | – | ||||||||
Capital shares redeemed | – | 20,097 | – | ||||||||
Investment advisory fees (Note 2) | 103,878 | 180,233 | 467,093 | ||||||||
Total Liabilities | 5,680,708 | 2,677,709 | 3,882,977 | ||||||||
NET ASSETS | $ | 261,750,760 | $ | 486,526,598 | $ | 1,149,997,916 | |||||
Net assets consist of: | |||||||||||
Paid-in capital | $ | 293,023,575 | $ | 432,602,134 | $ | 1,084,579,171 | |||||
Undistributed net investment income | (1,079,764 | ) | 755,448 | 4,845,902 | |||||||
Undistributed net realized gain (accumulated net realized loss) | 15,977,276 | 7,861,931 | (662,604 | ) | |||||||
Net unrealized appreciation (depreciation) on investments | (46,170,327 | ) | 45,307,085 | 61,235,447 | |||||||
NET ASSETS | $ | 261,750,760 | $ | 486,526,598 | $ | 1,149,997,916 | |||||
Shares outstandingc | 8,925,000 | 19,000,000 | 52,200,000 | ||||||||
Net asset value per share | $ | 29.33 | $ | 25.61 | $ | 22.03 | |||||
a | Securities on loan with market values of $4,157,547, $- and $-, respectively. See Note 5. |
b | Cost of foreign currencies: $164,120, $300,030 and $1,014,522, respectively. |
c | $0.001 par value, number of shares authorized: 63.6 million, 318.625 million and 943.2 million, respectively. |
See notes to financial statements.
FINANCIAL STATEMENTS | 45 |
Table of Contents
Statements of Operations (Unaudited)
iSHARES®, INC.
Six months ended February 29, 2008
iShares MSCI | ||||||||||||||||
Austria Index Fund | Belgium Index Fund | EMU Index Fund | France Index Fund | |||||||||||||
NET INVESTMENT INCOME | ||||||||||||||||
Dividends from unaffiliated issuersa | $ | 623,613 | $ | 544,560 | $ | 15,713,088 | $ | 1,552,970 | ||||||||
Interest from affiliated issuers (Note 2) | 8,021 | 14,195 | 71,375 | 9,437 | ||||||||||||
Securities lending income from affiliated issuers (Note 2) | 37,278 | 24,778 | 233,455 | 7,415 | ||||||||||||
Total investment income | 668,912 | 583,533 | 16,017,918 | 1,569,822 | ||||||||||||
EXPENSES | ||||||||||||||||
Investment advisory fees (Note 2) | 960,669 | 783,794 | 7,429,773 | 1,343,904 | ||||||||||||
Total expenses | 960,669 | 783,794 | 7,429,773 | 1,343,904 | ||||||||||||
Net investment income (loss) | (291,757 | ) | (200,261 | ) | 8,588,145 | 225,918 | ||||||||||
NET REALIZED AND UNREALIZED GAIN (LOSS) | ||||||||||||||||
Net realized gain (loss) from: | ||||||||||||||||
Investments in unaffiliated issuers | (12,474,590 | ) | (3,206,475 | ) | (15,625,939 | ) | (5,602,964 | ) | ||||||||
In-kind redemptions | 30,799,064 | 6,046,533 | 122,278,029 | 26,655,977 | ||||||||||||
Foreign currency transactions | 18,332 | 47,816 | 962,668 | 61,062 | ||||||||||||
Net realized gain | 18,342,806 | 2,887,874 | 107,614,758 | 21,114,075 | ||||||||||||
Net change in unrealized appreciation (depreciation) on: | ||||||||||||||||
Investments | (44,841,173 | ) | (34,592,818 | ) | (194,006,510 | ) | (60,669,252 | ) | ||||||||
Translation of assets and liabilities in foreign currencies | 220,505 | 53,604 | 177,218 | 52,260 | ||||||||||||
Net change in unrealized appreciation (depreciation) | (44,620,668 | ) | (34,539,214 | ) | (193,829,292 | ) | (60,616,992 | ) | ||||||||
Net realized and unrealized loss | (26,277,862 | ) | (31,651,340 | ) | (86,214,534 | ) | (39,502,917 | ) | ||||||||
NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS | $ | (26,569,619 | ) | $ | (31,851,601 | ) | $ | (77,626,389 | ) | $ | (39,276,999 | ) | ||||
a | Net of foreign withholding tax of $110,049, $96,099, $2,516,251 and $266,270, respectively. |
See notes to financial statements.
46 | 2008 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Statements of Operations (Unaudited) (Continued)
iSHARES®, INC.
Six months ended February 29, 2008
iShares MSCI | ||||||||||||||||
Germany Index Fund | Italy Index Fund | Netherlands Index Fund | Spain Index Fund | |||||||||||||
NET INVESTMENT INCOME | ||||||||||||||||
Dividends from unaffiliated issuersa | $ | 4,205,577 | $ | 1,272,843 | $ | 2,513,302 | $ | 8,174,335 | ||||||||
Interest from affiliated issuers (Note 2) | 36,865 | 8,143 | 12,806 | 22,883 | ||||||||||||
Securities lending income from affiliated issuers (Note 2) | 24,050 | 16,621 | 16,663 | 384,188 | ||||||||||||
Total investment income | 4,266,492 | 1,297,607 | 2,542,771 | 8,581,406 | ||||||||||||
EXPENSES | ||||||||||||||||
Investment advisory fees (Note 2) | 4,752,271 | 495,198 | 658,238 | 1,592,542 | ||||||||||||
Total expenses | 4,752,271 | 495,198 | 658,238 | 1,592,542 | ||||||||||||
Net investment income (loss) | (485,779 | ) | 802,409 | 1,884,533 | 6,988,864 | |||||||||||
NET REALIZED AND UNREALIZED GAIN (LOSS) | ||||||||||||||||
Net realized gain (loss) from: | ||||||||||||||||
Investments in unaffiliated issuers | (7,381,266 | ) | (4,457,245 | ) | (7,299,257 | ) | (3,721,657 | ) | ||||||||
In-kind redemptions | 91,462,936 | 1,114,346 | 18,813,373 | 56,182,035 | ||||||||||||
Foreign currency transactions | 273,952 | 25,464 | 629 | 43,264 | ||||||||||||
Net realized gain (loss) | 84,355,622 | (3,317,435 | ) | 11,514,745 | 52,503,642 | |||||||||||
Net change in unrealized appreciation (depreciation) on: | ||||||||||||||||
Investments | (130,915,409 | ) | (4,387,224 | ) | (24,390,160 | ) | (79,361,790 | ) | ||||||||
Translation of assets and liabilities in foreign currencies | 62,189 | 10,712 | 5,717 | 10,848 | ||||||||||||
Net change in unrealized appreciation (depreciation) | (130,853,220 | ) | (4,376,512 | ) | (24,384,443 | ) | (79,350,942 | ) | ||||||||
Net realized and unrealized loss | (46,497,598 | ) | (7,693,947 | ) | (12,869,698 | ) | (26,847,300 | ) | ||||||||
NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS | $ | (46,983,377 | ) | $ | (6,891,538 | ) | $ | (10,985,165 | ) | $ | (19,858,436 | ) | ||||
a | Net of foreign withholding tax of $723,312, $213,341, $303,929 and $1,416,908, respectively. |
See notes to financial statements.
FINANCIAL STATEMENTS | 47 |
Table of Contents
Statements of Operations (Unaudited) (Continued)
iSHARES®, INC.
Six months ended February 29, 2008
iShares MSCI | ||||||||||||
Sweden Index Fund | Switzerland Index Fund | United Kingdom Index Fund | ||||||||||
NET INVESTMENT INCOME | ||||||||||||
Dividends from unaffiliated issuersa | $ | 18,313 | $ | 1,678,560 | $ | 15,500,554 | ||||||
Interest from affiliated issuers (Note 2) | 14,382 | 8,940 | 44,507 | |||||||||
Securities lending income from affiliated issuers (Note 2) | 10,113 | – | 6,763 | |||||||||
Total investment income | 42,808 | 1,687,500 | 15,551,824 | |||||||||
EXPENSES | ||||||||||||
Investment advisory fees (Note 2) | 1,122,572 | 932,052 | 2,941,163 | |||||||||
Total expenses | 1,122,572 | 932,052 | 2,941,163 | |||||||||
Net investment income (loss) | (1,079,764 | ) | 755,448 | 12,610,661 | ||||||||
NET REALIZED AND UNREALIZED GAIN (LOSS) | ||||||||||||
Net realized gain (loss) from: | ||||||||||||
Investments in unaffiliated issuers | (8,839,848 | ) | (1,099,335 | ) | (4,518,671 | ) | ||||||
Investments in affiliated issuers (Note 2) | – | – | (391,261 | ) | ||||||||
In-kind redemptions | 29,643,086 | 15,640,835 | 37,193,577 | |||||||||
Foreign currency transactions | 22,320 | 13,456 | (280,010 | ) | ||||||||
Net realized gain | 20,825,558 | 14,554,956 | 32,003,635 | |||||||||
Net change in unrealized appreciation (depreciation) on: | ||||||||||||
Investments | (77,020,101 | ) | (10,532,585 | ) | (142,141,573 | ) | ||||||
Translation of assets and liabilities in foreign currencies | 11,092 | 170,962 | 66,526 | |||||||||
Net change in unrealized appreciation (depreciation) | (77,009,009 | ) | (10,361,623 | ) | (142,075,047 | ) | ||||||
Net realized and unrealized gain (loss) | (56,183,451 | ) | 4,193,333 | (110,071,412 | ) | |||||||
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS | $ | (57,263,215 | ) | $ | 4,948,781 | $ | (97,460,751 | ) | ||||
a | Net of foreign withholding tax of $3,232, $227,005 and $163,794, respectively. |
See notes to financial statements.
48 | 2008 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Statements of Changes in Net Assets
iSHARES®, INC.
iShares MSCI Austria Index Fund | iShares MSCI Belgium Index Fund | |||||||||||||||
Six months ended February 29, 2008 (Unaudited) | Year ended August 31, 2007 | Six months ended February 29, 2008 (Unaudited) | Year ended August 31, 2007 | |||||||||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||||||||||
OPERATIONS: | ||||||||||||||||
Net investment income (loss) | $ | (291,757 | ) | $ | 6,906,656 | $ | (200,261 | ) | $ | 7,500,507 | ||||||
Net realized gain | 18,342,806 | 89,929,345 | 2,887,874 | 4,698,517 | ||||||||||||
Net change in unrealized appreciation (depreciation) | (44,620,668 | ) | (27,238,773 | ) | (34,539,214 | ) | 13,471,138 | |||||||||
Net increase (decrease) in net assets resulting from operations | (26,569,619 | ) | 69,597,228 | (31,851,601 | ) | 25,670,162 | ||||||||||
DISTRIBUTIONS TO SHAREHOLDERS: | ||||||||||||||||
From net investment income | (7,323,699 | ) | (8,705,133 | ) | (9,168,782 | ) | (4,042,358 | ) | ||||||||
Total distributions to shareholders | (7,323,699 | ) | (8,705,133 | ) | (9,168,782 | ) | (4,042,358 | ) | ||||||||
CAPITAL SHARE TRANSACTIONS: | ||||||||||||||||
Proceeds from shares sold | 85,287,263 | 345,391,061 | 52,925,830 | 145,006,107 | ||||||||||||
Cost of shares redeemed | (226,145,324 | ) | (324,406,725 | ) | (21,261,004 | ) | (15,634,722 | ) | ||||||||
Net increase (decrease) in net assets from capital share transactions | (140,858,061 | ) | 20,984,336 | 31,664,826 | 129,371,385 | |||||||||||
INCREASE (DECREASE) IN NET ASSETS | (174,751,379 | ) | 81,876,431 | (9,355,557 | ) | 150,999,189 | ||||||||||
NET ASSETS | ||||||||||||||||
Beginning of period | 473,513,820 | 391,637,389 | 303,483,399 | 152,484,210 | ||||||||||||
End of period | $ | 298,762,441 | $ | 473,513,820 | $ | 294,127,842 | $ | 303,483,399 | ||||||||
Undistributed net investment income | ||||||||||||||||
(accumulated net investment loss) included in net assets at end of period | $ | (946,667 | ) | $ | 6,668,789 | $ | (2,618,493 | ) | $ | 6,750,550 | ||||||
SHARES ISSUED AND REDEEMED | ||||||||||||||||
Shares sold | 2,300,000 | 8,800,000 | 2,000,000 | 5,640,000 | ||||||||||||
Shares redeemed | (6,100,000 | ) | (8,700,000 | ) | (840,000 | ) | (600,000 | ) | ||||||||
Net increase (decrease) in shares outstanding | (3,800,000 | ) | 100,000 | 1,160,000 | 5,040,000 | |||||||||||
See notes to financial statements.
FINANCIAL STATEMENTS | 49 |
Table of Contents
Statements of Changes in Net Assets (Continued)
iSHARES®, INC.
iShares MSCI EMU Index Fund | iShares MSCI France Index Fund | |||||||||||||||
Six months ended February 29, 2008 (Unaudited) | Year ended August 31, 2007 | Six months ended February 29, 2008 (Unaudited) | Year ended August 31, 2007 | |||||||||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||||||||||
OPERATIONS: | ||||||||||||||||
Net investment income | $ | 8,588,145 | $ | 64,897,028 | $ | 225,918 | $ | 5,363,789 | ||||||||
Net realized gain | 107,614,758 | 78,401,296 | 21,114,075 | 16,902,131 | ||||||||||||
Net change in unrealized appreciation (depreciation) | (193,829,292 | ) | 372,001,498 | (60,616,992 | ) | 131,397 | ||||||||||
Net increase (decrease) in net assets resulting from operations | (77,626,389 | ) | 515,299,822 | (39,276,999 | ) | 22,397,317 | ||||||||||
DISTRIBUTIONS TO SHAREHOLDERS: | ||||||||||||||||
From net investment income | (70,470,544 | ) | (39,632,439 | ) | (5,537,010 | ) | (2,600,180 | ) | ||||||||
Total distributions to shareholders | (70,470,544 | ) | (39,632,439 | ) | (5,537,010 | ) | (2,600,180 | ) | ||||||||
CAPITAL SHARE TRANSACTIONS: | ||||||||||||||||
Proceeds from shares sold | 278,111,668 | 890,425,624 | 373,304,894 | 308,549,207 | ||||||||||||
Cost of shares redeemed | (323,021,513 | ) | (189,448,664 | ) | (138,020,470 | ) | (94,536,345 | ) | ||||||||
Net increase (decrease) in net assets from capital share transactions | (44,909,845 | ) | 700,976,960 | 235,284,424 | 214,012,862 | |||||||||||
INCREASE (DECREASE) IN NET ASSETS | (193,006,778 | ) | 1,176,644,343 | 190,470,415 | 233,809,999 | |||||||||||
NET ASSETS | ||||||||||||||||
Beginning of period | 2,971,565,330 | 1,794,920,987 | 445,695,760 | 211,885,761 | ||||||||||||
End of period | $ | 2,778,558,552 | $ | 2,971,565,330 | $ | 636,166,175 | $ | 445,695,760 | ||||||||
Undistributed (distributions in excess of) net investment income included in net assets at end of period | $ | 284,282 | $ | 62,166,681 | $ | (262,473 | ) | $ | 5,048,619 | |||||||
SHARES ISSUED AND REDEEMED | ||||||||||||||||
Shares sold | 2,600,000 | 8,300,000 | 10,200,000 | 8,200,000 | ||||||||||||
Shares redeemed | (2,700,000 | ) | (1,750,000 | ) | (3,800,000 | ) | (2,800,000 | ) | ||||||||
Net increase (decrease) in shares outstanding | (100,000 | ) | 6,550,000 | 6,400,000 | 5,400,000 | |||||||||||
See notes to financial statements.
50 | 2008 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Statements of Changes in Net Assets (Continued)
iSHARES®, INC.
iShares MSCI Germany Index Fund | iShares MSCI Italy Index Fund | |||||||||||||||
Six months ended February 29, 2008 (Unaudited) | Year ended August 31, 2007 | Six months ended February 29, 2008 (Unaudited) | Year ended August 31, 2007 | |||||||||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||||||||||
OPERATIONS: | ||||||||||||||||
Net investment income (loss) | $ | (485,779 | ) | $ | 28,068,699 | $ | 802,409 | $ | 8,244,893 | |||||||
Net realized gain (loss) | 84,355,622 | 152,044,593 | (3,317,435 | ) | 45,811,884 | |||||||||||
Net change in unrealized appreciation (depreciation) | (130,853,220 | ) | 148,406,473 | (4,376,512 | ) | (31,574,902 | ) | |||||||||
Net increase (decrease) in net assets resulting from operations | (46,983,377 | ) | 328,519,765 | (6,891,538 | ) | 22,481,875 | ||||||||||
DISTRIBUTIONS TO SHAREHOLDERS: | ||||||||||||||||
From net investment income | (28,435,651 | ) | (17,227,480 | ) | (8,261,678 | ) | (4,310,712 | ) | ||||||||
Total distributions to shareholders | (28,435,651 | ) | (17,227,480 | ) | (8,261,678 | ) | (4,310,712 | ) | ||||||||
CAPITAL SHARE TRANSACTIONS: | ||||||||||||||||
Proceeds from shares sold | 655,473,975 | 972,720,932 | 287,892,085 | 255,824,310 | ||||||||||||
Cost of shares redeemed | (255,847,128 | ) | (445,562,698 | ) | (34,481,729 | ) | (247,823,971 | ) | ||||||||
Net increase in net assets from capital share transactions | 399,626,847 | 527,158,234 | 253,410,356 | 8,000,339 | ||||||||||||
INCREASE IN NET ASSETS | 324,207,819 | 838,450,519 | 238,257,140 | 26,171,502 | ||||||||||||
NET ASSETS | ||||||||||||||||
Beginning of period | 1,641,245,113 | 802,794,594 | 172,495,216 | 146,323,714 | ||||||||||||
End of period | $ | 1,965,452,932 | $ | 1,641,245,113 | $ | 410,752,356 | $ | 172,495,216 | ||||||||
Undistributed (distributions in excess of) net investment income (accumulated net investment loss) included in net assets at end of period | $ | (1,000,730 | ) | $ | 27,920,700 | $ | (149,325 | ) | $ | 7,309,944 | ||||||
SHARES ISSUED AND REDEEMED | ||||||||||||||||
Shares sold | 19,500,000 | 31,800,000 | 9,600,000 | 7,500,000 | ||||||||||||
Shares redeemed | (7,500,000 | ) | (14,700,000 | ) | (1,050,000 | ) | (7,200,000 | ) | ||||||||
Net increase in shares outstanding | 12,000,000 | 17,100,000 | 8,550,000 | 300,000 | ||||||||||||
See notes to financial statements.
FINANCIAL STATEMENTS | 51 |
Table of Contents
Statements of Changes in Net Assets (Continued)
iSHARES®, INC.
iShares MSCI Netherlands Index Fund | iShares MSCI Spain Index Fund | |||||||||||||||
Six months ended February 29, 2008 (Unaudited) | Year ended August 31, 2007 | Six months ended February 29, 2008 (Unaudited) | Year ended August 31, 2007 | |||||||||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||||||||||
OPERATIONS: | ||||||||||||||||
Net investment income | $ | 1,884,533 | $ | 7,751,323 | $ | 6,988,864 | $ | 12,640,003 | ||||||||
Net realized gain | 11,514,745 | 25,566,651 | 52,503,642 | 113,046,969 | ||||||||||||
Net change in unrealized appreciation (depreciation) | (24,384,443 | ) | 4,801,697 | (79,350,942 | ) | (7,855,721 | ) | |||||||||
Net increase (decrease) in net assets resulting from operations | (10,985,165 | ) | 38,119,671 | (19,858,436 | ) | 117,831,251 | ||||||||||
DISTRIBUTIONS TO SHAREHOLDERS: | ||||||||||||||||
From net investment income | (8,855,735 | ) | (3,524,849 | ) | (13,812,797 | ) | (4,483,132 | ) | ||||||||
Total distributions to shareholders | (8,855,735 | ) | (3,524,849 | ) | (13,812,797 | ) | (4,483,132 | ) | ||||||||
CAPITAL SHARE TRANSACTIONS: | ||||||||||||||||
Proceeds from shares sold | 99,793,843 | 202,315,940 | 651,530,500 | 743,582,607 | ||||||||||||
Cost of shares redeemed | (68,199,621 | ) | (95,548,185 | ) | (559,364,429 | ) | (512,504,767 | ) | ||||||||
Net increase in net assets from capital share transactions | 31,594,222 | 106,767,755 | 92,166,071 | 231,077,840 | ||||||||||||
INCREASE IN NET ASSETS | 11,753,322 | 141,362,577 | 58,494,838 | 344,425,959 | ||||||||||||
NET ASSETS | ||||||||||||||||
Beginning of period | 251,353,862 | 109,991,285 | 522,556,016 | 178,130,057 | ||||||||||||
End of period | $ | 263,107,184 | $ | 251,353,862 | $ | 581,050,854 | $ | 522,556,016 | ||||||||
Undistributed net investment income included in net assets at end of period | $ | 1,209,359 | $ | 8,180,561 | $ | 3,724,279 | $ | 10,548,212 | ||||||||
SHARES ISSUED AND REDEEMED | ||||||||||||||||
Shares sold | 3,250,000 | 7,350,000 | 10,275,000 | 14,100,000 | ||||||||||||
Shares redeemed | (2,100,000 | ) | (3,450,000 | ) | (9,300,000 | ) | (9,075,000 | ) | ||||||||
Net increase in shares outstanding | 1,150,000 | 3,900,000 | 975,000 | 5,025,000 | ||||||||||||
See notes to financial statements.
52 | 2008 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Statements of Changes in Net Assets (Continued)
iSHARES®, INC.
iShares MSCI Sweden Index Fund | iShares MSCI Switzerland Index Fund | |||||||||||||||
Six months ended February 29, 2008 (Unaudited) | Year ended August 31, 2007 | Six months ended February 29, 2008 (Unaudited) | Year ended August 31, 2007 | |||||||||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||||||||||
OPERATIONS: | ||||||||||||||||
Net investment income (loss) | $ | (1,079,764 | ) | $ | 13,800,011 | $ | 755,448 | $ | 3,903,136 | |||||||
Net realized gain | 20,825,558 | 35,325,675 | 14,554,956 | 8,791,737 | ||||||||||||
Net change in unrealized appreciation (depreciation) | (77,009,009 | ) | 28,147,722 | (10,361,623 | ) | 19,142,733 | ||||||||||
Net increase (decrease) in net assets resulting from operations | (57,263,215 | ) | 77,273,408 | 4,948,781 | 31,837,606 | |||||||||||
DISTRIBUTIONS TO SHAREHOLDERS: | ||||||||||||||||
From net investment income | (13,788,192 | ) | (3,600,238 | ) | (3,929,999 | ) | (1,891,314 | ) | ||||||||
Total distributions to shareholders | (13,788,192 | ) | (3,600,238 | ) | (3,929,999 | ) | (1,891,314 | ) | ||||||||
CAPITAL SHARE TRANSACTIONS: | ||||||||||||||||
Proceeds from shares sold | 63,221,151 | 453,975,174 | 204,107,662 | 119,606,280 | ||||||||||||
Cost of shares redeemed | (303,445,184 | ) | (106,048,705 | ) | (37,597,902 | ) | (18,873,671 | ) | ||||||||
Net increase (decrease) in net assets from capital share transactions | (240,224,033 | ) | 347,926,469 | 166,509,760 | 100,732,609 | |||||||||||
INCREASE (DECREASE) IN NET ASSETS | (311,275,440 | ) | 421,599,639 | 167,528,542 | 130,678,901 | |||||||||||
NET ASSETS | ||||||||||||||||
Beginning of period | 573,026,200 | 151,426,561 | 318,998,056 | 188,319,155 | ||||||||||||
End of period | $ | 261,750,760 | $ | 573,026,200 | $ | 486,526,598 | $ | 318,998,056 | ||||||||
Undistributed net investment income (accumulated net investment loss) included in net assets at end of period | $ | (1,079,764 | ) | $ | 13,788,192 | $ | 755,448 | $ | 3,929,999 | |||||||
SHARES ISSUED AND REDEEMED | ||||||||||||||||
Shares sold | 1,950,000 | 13,725,000 | 8,125,000 | 4,750,000 | ||||||||||||
Shares redeemed | (9,600,000 | ) | (3,000,000 | ) | (1,500,000 | ) | (750,000 | ) | ||||||||
Net increase (decrease) in shares outstanding | (7,650,000 | ) | 10,725,000 | 6,625,000 | 4,000,000 | |||||||||||
See notes to financial statements.
FINANCIAL STATEMENTS | 53 |
Table of Contents
Statements of Changes in Net Assets (Continued)
iSHARES®, INC.
iShares MSCI United Kingdom Index Fund | ||||||||
Six months ended February 29, 2008 (Unaudited) | Year ended August 31, 2007 | |||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||
OPERATIONS: | ||||||||
Net investment income | $ | 12,610,661 | $ | 37,583,387 | ||||
Net realized gain | 32,003,635 | 40,620,180 | ||||||
Net change in unrealized appreciation (depreciation) | (142,075,047 | ) | 76,385,578 | |||||
Net increase (decrease) in net assets resulting from operations | (97,460,751 | ) | 154,589,145 | |||||
DISTRIBUTIONS TO SHAREHOLDERS: | ||||||||
From net investment income | (40,172,261 | ) | (34,304,512 | ) | ||||
Total distributions to shareholders | (40,172,261 | ) | (34,304,512 | ) | ||||
CAPITAL SHARE TRANSACTIONS: | ||||||||
Proceeds from shares sold | 277,276,840 | 229,005,308 | ||||||
Cost of shares redeemed | (117,384,250 | ) | (93,960,543 | ) | ||||
Net increase in net assets from capital share transactions | 159,892,590 | 135,044,765 | ||||||
INCREASE IN NET ASSETS | 22,259,578 | 255,329,398 | ||||||
NET ASSETS | ||||||||
Beginning of period | 1,127,738,338 | 872,408,940 | ||||||
End of period | $ | 1,149,997,916 | $ | 1,127,738,338 | ||||
Undistributed net investment income included in net assets at end of period | $ | 4,845,902 | $ | 32,407,502 | ||||
SHARES ISSUED AND REDEEMED | ||||||||
Shares sold | 11,600,000 | 9,800,000 | ||||||
Shares redeemed | (5,000,000 | ) | (4,000,000 | ) | ||||
Net increase in shares outstanding | 6,600,000 | 5,800,000 | ||||||
See notes to financial statements.
54 | 2008 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
iSHARES®, INC.
(For a share outstanding throughout each period)
iShares MSCI Austria Index Fund | ||||||||||||||||||||||||
Six months ended | Year ended Aug. 31, 2007 | Year ended Aug. 31, 2006 | Year ended Aug. 31, 2005 | Year ended Aug. 31, 2004 | Year ended Aug. 31, 2003 | |||||||||||||||||||
Net asset value, beginning of period | $ | 37.28 | $ | 31.08 | $ | 26.62 | $ | 17.04 | $ | 10.61 | $ | 8.19 | ||||||||||||
Income from investment operations: | ||||||||||||||||||||||||
Net investment income (loss)a | (0.03 | ) | 0.51 | 0.44 | 0.29 | 0.21 | 0.09 | |||||||||||||||||
Net realized and unrealized gain (loss)b | (2.97 | ) | 6.42 | 4.31 | 9.38 | 6.39 | 2.43 | |||||||||||||||||
Total from investment operations | (3.00 | ) | 6.93 | 4.75 | 9.67 | 6.60 | 2.52 | |||||||||||||||||
Less distributions from: | ||||||||||||||||||||||||
Net investment income | (0.71 | ) | (0.73 | ) | (0.29 | ) | (0.09 | ) | (0.17 | ) | (0.10 | ) | ||||||||||||
Total distributions | (0.71 | ) | (0.73 | ) | (0.29 | ) | (0.09 | ) | (0.17 | ) | (0.10 | ) | ||||||||||||
Net asset value, end of period | $ | 33.57 | $ | 37.28 | $ | 31.08 | $ | 26.62 | $ | 17.04 | $ | 10.61 | ||||||||||||
Total return | (8.15 | )%c | 22.35 | % | 18.00 | % | 56.82 | % | 62.70 | % | 31.15 | % | ||||||||||||
Ratios/Supplemental data: | ||||||||||||||||||||||||
Net assets, end of period (000s) | $ | 298,762 | $ | 473,514 | $ | 391,637 | $ | 196,952 | $ | 57,920 | $ | 22,288 | ||||||||||||
Ratio of expenses to average net assetsd | 0.51 | % | 0.51 | % | 0.54 | % | 0.57 | % | 0.77 | % | 0.84 | % | ||||||||||||
Ratio of net investment income (loss) to average net assetsd | (0.16 | )% | 1.36 | % | 1.48 | % | 1.26 | % | 1.37 | % | 0.98 | % | ||||||||||||
Portfolio turnover ratee | 13 | % | 21 | % | 32 | % | 21 | % | 11 | % | 26 | % |
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 | 55 |
Table of Contents
Financial Highlights (Continued)
iSHARES®, INC.
(For a share outstanding throughout each period)
iShares MSCI Belgium Index Fund | ||||||||||||||||||||||||
Six months ended | Year ended Aug. 31, 2007 | Year ended Aug. 31, 2006 | Year ended Aug. 31, 2005 | Year ended Aug. 31, 2004 | Year ended Aug. 31, 2003 | |||||||||||||||||||
Net asset value, beginning of period | $ | 25.89 | $ | 22.83 | $ | 18.94 | $ | 14.77 | $ | 11.16 | $ | 10.43 | ||||||||||||
Income from investment operations: | ||||||||||||||||||||||||
Net investment income (loss)a | (0.02 | ) | 0.76 | 0.75 | 0.71 | 0.37 | 0.41 | |||||||||||||||||
Net realized and unrealized gain (loss)b | (2.31 | ) | 2.74 | 3.95 | 3.75 | 4.25 | 0.43 | |||||||||||||||||
Total from investment operations | (2.33 | ) | 3.50 | 4.70 | 4.46 | 4.62 | 0.84 | |||||||||||||||||
Less distributions from: | ||||||||||||||||||||||||
Net investment income | (0.72 | ) | (0.44 | ) | (0.81 | ) | (0.29 | ) | (1.01 | ) | (0.11 | ) | ||||||||||||
Total distributions | (0.72 | ) | (0.44 | ) | (0.81 | ) | (0.29 | ) | (1.01 | ) | (0.11 | ) | ||||||||||||
Net asset value, end of period | $ | 22.84 | $ | 25.89 | $ | 22.83 | $ | 18.94 | $ | 14.77 | $ | 11.16 | ||||||||||||
Total return | (9.10 | )%c | 15.36 | % | 25.66 | % | 30.22 | % | 42.88 | % | 8.25 | % | ||||||||||||
Ratios/Supplemental data: | ||||||||||||||||||||||||
Net assets, end of period (000s) | $ | 294,128 | $ | 303,483 | $ | 152,484 | $ | 46,960 | $ | 24,813 | $ | 21,871 | ||||||||||||
Ratio of expenses to average net assetsd | 0.51 | % | 0.51 | % | 0.54 | % | 0.57 | % | 0.78 | % | 0.84 | % | ||||||||||||
Ratio of net investment income (loss) to average net assetsd | (0.13 | )% | 2.90 | % | 3.60 | % | 3.89 | % | 2.79 | % | 4.10 | % | ||||||||||||
Portfolio turnover ratee | 18 | % | 12 | % | 10 | % | 10 | % | 21 | % | 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.
56 | 2008 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Financial Highlights (Continued)
iSHARES®, INC.
(For a share outstanding throughout each period)
iShares MSCI EMU Index Fund | ||||||||||||||||||||||||
Six months ended Feb. 29, 2008 | Year ended Aug. 31, 2007 | Year ended Aug. 31, 2006 | Year ended Aug. 31, 2005 | Year ended Aug. 31, 2004 | Year ended Aug. 31, 2003 | |||||||||||||||||||
Net asset value, beginning of period | $ | 114.29 | $ | 92.28 | $ | 74.97 | $ | 59.38 | $ | 50.12 | $ | 46.02 | ||||||||||||
Income from investment operations: | ||||||||||||||||||||||||
Net investment incomea | 0.34 | 2.80 | 2.73 | 1.76 | 1.36 | 0.93 | ||||||||||||||||||
Net realized and unrealized gain (loss)b | (4.39 | ) | 21.06 | 15.90 | 15.13 | 8.69 | 3.62 | |||||||||||||||||
Total from investment operations | (4.05 | ) | 23.86 | 18.63 | 16.89 | 10.05 | 4.55 | |||||||||||||||||
Less distributions from: | ||||||||||||||||||||||||
Net investment income | (2.96 | ) | (1.85 | ) | (1.32 | ) | (1.30 | ) | (0.79 | ) | (0.45 | ) | ||||||||||||
Total distributions | (2.96 | ) | (1.85 | ) | (1.32 | ) | (1.30 | ) | (0.79 | ) | (0.45 | ) | ||||||||||||
Net asset value, end of period | $ | 107.28 | $ | 114.29 | $ | 92.28 | $ | 74.97 | $ | 59.38 | $ | 50.12 | ||||||||||||
Total return | (3.74 | )%c | 26.10 | % | 25.18 | % | 28.54 | % | 20.07 | % | 10.05 | % | ||||||||||||
Ratios/Supplemental data: | ||||||||||||||||||||||||
Net assets, end of period (000s) | $ | 2,778,559 | $ | 2,971,565 | $ | 1,794,921 | $ | 547,284 | $ | 326,606 | $ | 165,388 | ||||||||||||
Ratio of expenses to average net assetsd | 0.51 | % | 0.51 | % | 0.54 | % | 0.58 | % | 0.79 | % | 0.84 | % | ||||||||||||
Ratio of expenses to average net | n/a | n/a | n/a | 0.57 | % | 0.79 | % | n/a | ||||||||||||||||
Ratio of net investment income to average net assetsd | 0.59 | % | 2.60 | % | 3.23 | % | 2.50 | % | 2.29 | % | 2.08 | % | ||||||||||||
Portfolio turnover ratee | 17 | % | 5 | % | 8 | % | 8 | % | 11 | % | 7 | % |
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 | 57 |
Table of Contents
Financial Highlights (Continued)
iSHARES®, INC.
(For a share outstanding throughout each period)
iShares MSCI France Index Fund | ||||||||||||||||||||||||
Six months ended Feb. 29, 2008 | Year ended Aug. 31, 2007 | Year ended Aug. 31, 2006 | Year ended Aug. 31, 2005 | Year ended Aug. 31, 2004 | Year ended Aug. 31, 2003 | |||||||||||||||||||
Net asset value, beginning of period | $ | 36.53 | $ | 31.16 | $ | 25.41 | $ | 20.40 | $ | 16.90 | $ | 15.52 | ||||||||||||
Income from investment operations: | ||||||||||||||||||||||||
Net investment incomea | 0.02 | 0.77 | 0.55 | 0.47 | 0.24 | 0.23 | ||||||||||||||||||
Net realized and unrealized gain (loss)b | (2.00 | ) | 5.06 | 5.52 | 4.84 | 3.54 | 1.33 | |||||||||||||||||
Total from investment operations | (1.98 | ) | 5.83 | 6.07 | 5.31 | 3.78 | 1.56 | |||||||||||||||||
Less distributions from: | ||||||||||||||||||||||||
Net investment income | (0.35 | ) | (0.46 | ) | (0.32 | ) | (0.30 | ) | (0.28 | ) | (0.18 | ) | ||||||||||||
Total distributions | (0.35 | ) | (0.46 | ) | (0.32 | ) | (0.30 | ) | (0.28 | ) | (0.18 | ) | ||||||||||||
Net asset value, end of period | $ | 34.20 | $ | 36.53 | $ | 31.16 | $ | 25.41 | $ | 20.40 | $ | 16.90 | ||||||||||||
Total return | (5.50 | )%c | 18.83 | % | 24.13 | % | 26.13 | % | 22.44 | % | 10.22 | % | ||||||||||||
Ratios/Supplemental data: | ||||||||||||||||||||||||
Net assets, end of period (000s) | $ | 636,166 | $ | 445,696 | $ | 211,886 | $ | 81,326 | $ | 61,201 | $ | 54,075 | ||||||||||||
Ratio of expenses to average net assetsd | 0.51 | % | 0.51 | % | 0.54 | % | 0.57 | % | 0.79 | % | 0.84 | % | ||||||||||||
Ratio of net investment income to average net assetsd | 0.09 | % | 2.17 | % | 1.95 | % | 1.98 | % | 1.23 | % | 1.56 | % | ||||||||||||
Portfolio turnover ratee | 4 | % | 6 | % | 10 | % | 7 | % | 9 | % | 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.
58 | 2008 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Financial Highlights (Continued)
iSHARES®, INC.
(For a share outstanding throughout each period)
iShares MSCI Germany Index Fund | ||||||||||||||||||||||||
Six months ended Feb. 29, 2008 | Year ended Aug. 31, 2007 | Year ended Aug. 31, 2006 | Year ended Aug. 31, 2005 | Year ended Aug. 31, 2004 | Year ended Aug. 31, 2003 | |||||||||||||||||||
Net asset value, beginning of period | $ | 32.18 | $ | 23.68 | $ | 19.08 | $ | 14.96 | $ | 12.57 | $ | 12.07 | ||||||||||||
Income from investment operations: | ||||||||||||||||||||||||
Net investment income (loss)a | (0.01 | ) | 0.68 | 0.57 | 0.28 | 0.19 | 0.21 | |||||||||||||||||
Net realized and unrealized gain (loss)b | (0.45 | ) | 8.33 | 4.15 | 4.03 | 2.40 | 0.41 | |||||||||||||||||
Total from investment operations | (0.46 | ) | 9.01 | 4.72 | 4.31 | 2.59 | 0.62 | |||||||||||||||||
Less distributions from: | ||||||||||||||||||||||||
Net investment income | (0.52 | ) | (0.51 | ) | (0.12 | ) | (0.19 | ) | (0.20 | ) | (0.12 | ) | ||||||||||||
Total distributions | (0.52 | ) | (0.51 | ) | (0.12 | ) | (0.19 | ) | (0.20 | ) | (0.12 | ) | ||||||||||||
Net asset value, end of period | $ | 31.20 | $ | 32.18 | $ | 23.68 | $ | 19.08 | $ | 14.96 | $ | 12.57 | ||||||||||||
Total return | (1.61 | )%c | 38.47 | % | 24.82 | % | 28.89 | % | 20.55 | % | 5.39 | % | ||||||||||||
Ratios/Supplemental data: | ||||||||||||||||||||||||
Net assets, end of period (000s) | $ | 1,965,453 | $ | 1,641,245 | $ | 802,795 | $ | 314,793 | $ | 98,764 | $ | 101,800 | ||||||||||||
Ratio of expenses to average net assetsd | 0.51 | % | 0.51 | % | 0.54 | % | 0.57 | % | 0.80 | % | 0.84 | % | ||||||||||||
Ratio of net investment income (loss) to average net assetsd | (0.05 | )% | 2.32 | % | 2.62 | % | 1.54 | % | 1.27 | % | 1.98 | % | ||||||||||||
Portfolio turnover ratee | 4 | % | 4 | % | 12 | % | 9 | % | 9 | % | 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 | 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 | 59 |
Table of Contents
Financial Highlights (Continued)
iSHARES®, INC.
(For a share outstanding throughout each period)
iShares MSCI Italy Index Fund | ||||||||||||||||||||||||
Six months ended Feb. 29, 2008 | Year ended Aug. 31, 2007 | Year ended Aug. 31, 2006 | Year ended Aug. 31, 2005 | Year ended Aug. 31, 2004 | Year ended Aug. 31, 2003 | |||||||||||||||||||
Net asset value, beginning of period | $ | 33.82 | $ | 30.48 | $ | 25.77 | $ | 20.21 | $ | 16.67 | $ | 15.15 | ||||||||||||
Income from investment operations: | ||||||||||||||||||||||||
Net investment incomea | 0.14 | 1.35 | 1.07 | 0.78 | 0.56 | 0.43 | ||||||||||||||||||
Net realized and unrealized gain (loss)b | (2.38 | ) | 2.66 | 4.15 | 5.42 | 3.59 | 1.47 | |||||||||||||||||
Total from investment operations | (2.24 | ) | 4.01 | 5.22 | 6.20 | 4.15 | 1.90 | |||||||||||||||||
Less distributions from: | ||||||||||||||||||||||||
Net investment income | (1.49 | ) | (0.67 | ) | (0.51 | ) | (0.64 | ) | (0.61 | ) | (0.38 | ) | ||||||||||||
Total distributions | (1.49 | ) | (0.67 | ) | (0.51 | ) | (0.64 | ) | (0.61 | ) | (0.38 | ) | ||||||||||||
Net asset value, end of period | $ | 30.09 | $ | 33.82 | $ | 30.48 | $ | 25.77 | $ | 20.21 | $ | 16.67 | ||||||||||||
Total return | (6.92 | )%c | 13.20 | % | 20.61 | % | 30.74 | % | 25.09 | % | 12.79 | % | ||||||||||||
Ratios/Supplemental data: | ||||||||||||||||||||||||
Net assets, end of period (000s) | $ | 410,752 | $ | 172,495 | $ | 146,324 | $ | 42,526 | $ | 27,279 | $ | 29,997 | ||||||||||||
Ratio of expenses to average net assetsd | 0.51 | % | 0.52 | % | 0.54 | % | 0.57 | % | 0.83 | % | 0.84 | % | ||||||||||||
Ratio of expenses to average net | n/a | n/a | n/a | n/a | 0.79 | % | n/a | |||||||||||||||||
Ratio of net investment income to average net assetsd | 0.83 | % | 4.02 | % | 3.87 | % | 3.18 | % | 2.85 | % | 2.84 | % | ||||||||||||
Portfolio turnover ratee | 10 | % | 16 | % | 15 | % | 18 | % | 9 | % | 22 | % |
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.
60 | 2008 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Financial Highlights (Continued)
iSHARES®, INC.
(For a share outstanding throughout each period)
iShares MSCI Netherlands Index Fund | ||||||||||||||||||||||||
Six months ended Feb. 29, 2008 | Year ended Aug. 31, 2007 | Year ended Aug. 31, 2006 | Year ended Aug. 31, 2005 | Year ended Aug. 31, 2004 | Year ended Aug. 31, 2003 | |||||||||||||||||||
Net asset value, beginning of period | $ | 29.75 | $ | 24.17 | $ | 19.10 | $ | 15.70 | $ | 14.31 | $ | 14.69 | ||||||||||||
Income from investment operations: | ||||||||||||||||||||||||
Net investment incomea | 0.22 | 0.98 | 0.60 | 0.57 | 0.39 | 0.30 | ||||||||||||||||||
Net realized and unrealized gain (loss)b | (1.53 | ) | 5.05 | 4.95 | 3.09 | 1.37 | (0.43 | ) | ||||||||||||||||
Total from investment operations | (1.31 | ) | 6.03 | 5.55 | 3.66 | 1.76 | (0.13 | ) | ||||||||||||||||
Less distributions from: | ||||||||||||||||||||||||
Net investment income | (1.03 | ) | (0.45 | ) | (0.48 | ) | (0.26 | ) | (0.37 | ) | (0.25 | ) | ||||||||||||
Total distributions | (1.03 | ) | (0.45 | ) | (0.48 | ) | (0.26 | ) | (0.37 | ) | (0.25 | ) | ||||||||||||
Net asset value, end of period | $ | 27.41 | $ | 29.75 | $ | 24.17 | $ | 19.10 | $ | 15.70 | $ | 14.31 | ||||||||||||
Total return | (4.61 | )%c | 25.22 | % | 29.53 | % | 23.40 | % | 12.28 | % | (0.78 | )% | ||||||||||||
Ratios/Supplemental data: | ||||||||||||||||||||||||
Net assets, end of period (000s) | $ | 263,107 | $ | 251,354 | $ | 109,991 | $ | 63,974 | $ | 28,265 | $ | 18,599 | ||||||||||||
Ratio of expenses to average net assetsd | 0.51 | % | 0.51 | % | 0.54 | % | 0.57 | % | 0.78 | % | 0.84 | % | ||||||||||||
Ratio of net investment income to average net assetsd | 1.46 | % | 3.50 | % | 2.78 | % | 3.13 | % | 2.45 | % | 2.37 | % | ||||||||||||
Portfolio turnover ratee | 19 | % | 8 | % | 17 | % | 6 | % | 9 | % | 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 | 61 |
Table of Contents
Financial Highlights (Continued)
iSHARES®, INC.
(For a share outstanding throughout each period)
iShares MSCI Spain Index Fund | ||||||||||||||||||||||||
Six months ended | Year ended Aug. 31, 2007 | Year ended Aug. 31, 2006 | Year ended Aug. 31, 2005 | Year ended Aug. 31, 2004 | Year ended Aug. 31, 2003 | |||||||||||||||||||
Net asset value, beginning of period | $ | 58.06 | $ | 44.81 | $ | 35.70 | $ | 27.55 | $ | 22.39 | $ | 17.95 | ||||||||||||
Income from investment operations: | ||||||||||||||||||||||||
Net investment incomea | 0.69 | 1.30 | 1.07 | 0.79 | 0.44 | 0.24 | ||||||||||||||||||
Net realized and unrealized gainb | 0.66 | 12.33 | 8.78 | 7.97 | 4.99 | 4.36 | ||||||||||||||||||
Total from investment operations | 1.35 | 13.63 | 9.85 | 8.76 | 5.43 | 4.60 | ||||||||||||||||||
Less distributions from: | ||||||||||||||||||||||||
Net investment income | (1.16 | ) | (0.38 | ) | (0.74 | ) | (0.61 | ) | (0.27 | ) | (0.16 | ) | ||||||||||||
Total distributions | (1.16 | ) | (0.38 | ) | (0.74 | ) | (0.61 | ) | (0.27 | ) | (0.16 | ) | ||||||||||||
Net asset value, end of period | $ | 58.25 | $ | 58.06 | $ | 44.81 | $ | 35.70 | $ | 27.55 | $ | 22.39 | ||||||||||||
Total return | 2.20 | %c | 30.47 | % | 28.09 | % | 31.85 | % | 24.28 | % | 25.81 | % | ||||||||||||
Ratios/Supplemental data: | ||||||||||||||||||||||||
Net assets, end of period (000s) | $ | 581,051 | $ | 522,556 | $ | 178,130 | $ | 66,945 | $ | 45,456 | $ | 50,372 | ||||||||||||
Ratio of expenses to average net assetsd | 0.51 | % | 0.51 | % | 0.54 | % | 0.57 | % | 0.80 | % | 0.84 | % | ||||||||||||
Ratio of net investment income to average net assetsd | 2.24 | % | 2.36 | % | 2.67 | % | 2.33 | % | 1.64 | % | 1.22 | % | ||||||||||||
Portfolio turnover ratee | 17 | % | 12 | % | 6 | % | 8 | % | 6 | % | 17 | % |
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.
62 | 2008 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Financial Highlights (Continued)
iSHARES®, INC.
(For a share outstanding throughout each period)
iShares MSCI Sweden Index Fund | ||||||||||||||||||||||||
Six months ended | Year ended Aug. 31, 2007 | Year ended Aug. 31, 2006 | Year ended Aug. 31, 2005 | Year ended Aug. 31, 2004 | Year ended Aug. 31, 2003 | |||||||||||||||||||
Net asset value, beginning of period | $ | 34.57 | $ | 25.88 | $ | 21.58 | $ | 16.82 | $ | 12.59 | $ | 9.88 | ||||||||||||
Income from investment operations: | ||||||||||||||||||||||||
Net investment income (loss)a | (0.08 | ) | 1.15 | 0.76 | 0.46 | 0.28 | 0.25 | |||||||||||||||||
Net realized and unrealized gain (loss)b | (4.05 | ) | 7.88 | 3.96 | 4.45 | 4.20 | 2.58 | |||||||||||||||||
Total from investment operations | (4.13 | ) | 9.03 | 4.72 | 4.91 | 4.48 | 2.83 | |||||||||||||||||
Less distributions from: | ||||||||||||||||||||||||
Net investment income | (1.11 | ) | (0.34 | ) | (0.42 | ) | (0.15 | ) | (0.25 | ) | (0.12 | ) | ||||||||||||
Total distributions | (1.11 | ) | (0.34 | ) | (0.42 | ) | (0.15 | ) | (0.25 | ) | (0.12 | ) | ||||||||||||
Net asset value, end of period | $ | 29.33 | $ | 34.57 | $ | 25.88 | $ | 21.58 | $ | 16.82 | $ | 12.59 | ||||||||||||
Total return | (12.00 | )%c | 35.01 | % | 22.16 | % | 29.21 | % | 35.81 | % | 29.04 | % | ||||||||||||
Ratios/Supplemental data: | ||||||||||||||||||||||||
Net assets, end of period (000s) | $ | 261,751 | $ | 573,026 | $ | 151,427 | $ | 61,513 | $ | 27,758 | $ | 16,992 | ||||||||||||
Ratio of expenses to average net assetsd | 0.51 | % | 0.51 | % | 0.54 | % | 0.58 | % | 0.92 | % | 0.84 | % | ||||||||||||
Ratio of expenses to average net | n/a | n/a | n/a | 0.57 | % | 0.79 | % | n/a | ||||||||||||||||
Ratio of net investment income (loss) to average net assetsd | (0.49 | )% | 3.42 | % | 3.13 | % | 2.28 | % | 1.74 | % | 2.44 | % | ||||||||||||
Portfolio turnover ratee | 6 | % | 7 | % | 14 | % | 6 | % | 9 | % | 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 | 63 |
Table of Contents
Financial Highlights (Continued)
iSHARES®, INC.
(For a share outstanding throughout each period)
iShares MSCI Switzerland Index Fund | ||||||||||||||||||||||||
Six months ended | Year ended Aug. 31, 2007 | Year ended Aug. 31, 2006 | Year ended Aug. 31, 2005 | Year ended Aug. 31, 2004 | Year ended Aug. 31, 2003 | |||||||||||||||||||
Net asset value, beginning of period | $ | 25.78 | $ | 22.49 | $ | 17.63 | $ | 14.58 | $ | 12.23 | $ | 11.59 | ||||||||||||
Income from investment operations: | ||||||||||||||||||||||||
Net investment incomea | 0.05 | 0.36 | 0.27 | 0.22 | 0.09 | 0.05 | ||||||||||||||||||
Net realized and unrealized gainb | 0.06 | 3.12 | 4.71 | 2.92 | 2.31 | 0.62 | ||||||||||||||||||
Total from investment operations | 0.11 | 3.48 | 4.98 | 3.14 | 2.40 | 0.67 | ||||||||||||||||||
Less distributions from: | ||||||||||||||||||||||||
Net investment income | (0.28 | ) | (0.19 | ) | (0.12 | ) | (0.09 | ) | (0.05 | ) | (0.03 | ) | ||||||||||||
Total distributions | (0.28 | ) | (0.19 | ) | (0.12 | ) | (0.09 | ) | (0.05 | ) | (0.03 | ) | ||||||||||||
Net asset value, end of period | $ | 25.61 | $ | 25.78 | $ | 22.49 | $ | 17.63 | $ | 14.58 | $ | 12.23 | ||||||||||||
Total return | 0.42 | %c | 15.53 | % | 28.36 | % | 21.54 | % | 19.56 | % | 5.89 | % | ||||||||||||
Ratios/Supplemental data: | ||||||||||||||||||||||||
Net assets, end of period (000s) | $ | 486,527 | $ | 318,998 | $ | 188,319 | $ | 79,324 | $ | 41,920 | $ | 33,643 | ||||||||||||
Ratio of expenses to average net assetsd | 0.51 | % | 0.51 | % | 0.54 | % | 0.57 | % | 0.79 | % | 0.84 | % | ||||||||||||
Ratio of net investment income to average net assetsd | 0.41 | % | 1.42 | % | 1.34 | % | 1.34 | % | 0.64 | % | 0.43 | % | ||||||||||||
Portfolio turnover ratee | 4 | % | 5 | % | 11 | % | 5 | % | 4 | % | 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.
64 | 2008 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
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. 29, 2008 | Year ended Aug. 31, 2007 | Year ended Aug. 31, 2006 | Year ended Aug. 31, 2005 | Year ended Aug. 31, 2004 | Year ended Aug. 31, 2003 | |||||||||||||||||||
Net asset value, beginning of period | $ | 24.73 | $ | 21.92 | $ | 18.74 | $ | 15.72 | $ | 13.00 | $ | 12.77 | ||||||||||||
Income from investment operations: | ||||||||||||||||||||||||
Net investment incomea | 0.26 | 0.84 | 0.97 | 0.60 | 0.48 | 0.39 | ||||||||||||||||||
Net realized and unrealized gain (loss)b | (2.12 | ) | 2.78 | 2.79 | 2.76 | 2.72 | 0.12 | |||||||||||||||||
Total from investment operations | (1.86 | ) | 3.62 | 3.76 | 3.36 | 3.20 | 0.51 | |||||||||||||||||
Less distributions from: | ||||||||||||||||||||||||
Net investment income | (0.84 | ) | (0.81 | ) | (0.58 | ) | (0.34 | ) | (0.48 | ) | (0.28 | ) | ||||||||||||
Total distributions | (0.84 | ) | (0.81 | ) | (0.58 | ) | (0.34 | ) | (0.48 | ) | (0.28 | ) | ||||||||||||
Net asset value, end of period | $ | 22.03 | $ | 24.73 | $ | 21.92 | $ | 18.74 | $ | 15.72 | $ | 13.00 | ||||||||||||
Total return | (7.79 | )%c | 16.77 | % | 20.61 | % | 21.53 | % | 24.77 | % | 4.20 | % | ||||||||||||
Ratios/Supplemental data: | ||||||||||||||||||||||||
Net assets, end of period (000s) | $ | 1,149,998 | $ | 1,127,738 | $ | 872,409 | $ | 464,850 | $ | 452,870 | $ | 150,809 | ||||||||||||
Ratio of expenses to average net assetsd | 0.51 | % | 0.51 | % | 0.54 | % | 0.57 | % | 0.77 | % | 0.84 | % | ||||||||||||
Ratio of net investment income to average net assetsd | 2.19 | % | 3.51 | % | 4.81 | % | 3.39 | % | 3.11 | % | 3.23 | % | ||||||||||||
Portfolio turnover ratee | 5 | % | 8 | % | 10 | % | 11 | % | 6 | % | 6 | % |
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 | 65 |
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.
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 MSCI 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
66 | 2008 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
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”).
Investments that may be valued using fair value pricing include, but are not limited to: (i) an unlisted security related to corporate actions; (ii) a restricted security (i.e., one that may not be publicly sold without registration under the Securities Act of 1933, as amended); (iii) a security whose trading has been suspended or which has been de-listed from its primary trading exchange; (iv) a security that is thinly traded; (v) a security in default or bankruptcy proceedings for which there is no current market quotation; (vi) a security affected by currency controls or restrictions; and (vii) a security affected by a significant event (i.e., an event that occurs after the close of the markets on which the security is traded but before the time as of which the Fund’s NAV is computed and that may materially affect the value of the Fund’s investments). Examples of events that may be “significant events” are government actions, natural disasters, armed conflict, acts of terrorism, and significant market fluctuations.
Valuing a Fund’s investments using fair value pricing will result in using prices for those investments that may differ from current market valuations. Accordingly, fair value pricing could result in a difference between the prices used to calculate a Fund’s net asset value and the prices used by the Fund’s benchmark index, which, in turn, could result in a difference between the Fund’s performance and the performance of the Fund’s benchmark index.
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
The Funds may be subject to foreign taxes (a portion of which may be reclaimable) on income, corporate events, capital gains on investments or currency repatriation. All foreign taxes are recorded in accordance with the applicable foreign tax regulations and rates that exist in the foreign markets in which the Funds invest. These foreign taxes, if any, are paid by the Funds and are disclosed in their Statements of Operations. Foreign taxes payable as of February 29, 2008, if any, are reflected in the Funds’ Statements of Assets and Liabilities.
NOTESTO FINANCIAL STATEMENTS | 67 |
Table of Contents
Notes to Financial Statements (Unaudited) (Continued)
iSHARES®, INC.
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 ordinary income and any net capital 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 29, 2008.
The Funds had tax basis net capital loss carryforwards as of August 31, 2007, 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 | Expiring 2015 | Total | ||||||||||||||||||
Austria | $ | 491,457 | $ | 336,553 | $ | 1,291,324 | $ | 370,948 | $ | 855,364 | $ | – | $ | – | $ | 9,795,917 | $ | 13,141,563 | |||||||||
Belgium | – | 59,876 | 1,677,678 | 117,767 | 175,781 | 33,969 | – | – | 2,065,071 | ||||||||||||||||||
EMU | – | – | – | – | 2,876,857 | 1,873,963 | – | – | 4,750,820 | ||||||||||||||||||
France | – | – | 2,436,748 | 236,944 | 2,400,550 | – | – | 158,472 | 5,232,714 | ||||||||||||||||||
Germany | – | – | 8,697,227 | 5,469,732 | 8,656,712 | 2,241,687 | – | 4,227,713 | 29,293,071 | ||||||||||||||||||
Italy | – | – | 2,648,775 | 848,408 | 541,980 | 527,327 | – | – | 4,566,490 | ||||||||||||||||||
Netherlands | – | 60,885 | 3,222,792 | 1,497,810 | 2,481,175 | 129,137 | 403,525 | 260,715 | 8,056,039 | ||||||||||||||||||
Spain | – | – | 163,675 | 678,910 | 1,582,094 | – | – | – | 2,424,679 | ||||||||||||||||||
Sweden | – | – | 713,472 | 1,577,551 | 1,149,514 | – | 107,613 | – | 3,548,150 | ||||||||||||||||||
Switzerland | – | – | 2,247,442 | 1,018,305 | 2,149,171 | 354,252 | – | – | 5,769,170 | ||||||||||||||||||
United Kingdom | – | – | 856,798 | 6,448,554 | 4,272,059 | 1,517,783 | 7,063,063 | – | 20,158,257 |
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.
68 | 2008 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
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Notes to Financial Statements (Unaudited) (Continued)
iSHARES®, INC.
As of February 29, 2008, 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 (Depreciation) | ||||||||||
Austria | $ | 346,712,209 | $ | 6,926,037 | $ | (52,833,021 | ) | $ | (45,906,984 | ) | ||||
Belgium | 303,521,467 | 26,896,718 | (37,193,234 | ) | (10,296,516 | ) | ||||||||
EMU | 2,488,185,980 | 438,726,746 | (93,738,803 | ) | 344,987,943 | |||||||||
France | 700,703,763 | 9,285,710 | (67,757,089 | ) | (58,471,379 | ) | ||||||||
Germany | 1,899,840,109 | 160,598,595 | (91,504,571 | ) | 69,094,024 | |||||||||
Italy | 433,032,123 | 4,937,943 | (21,833,246 | ) | (16,895,303 | ) | ||||||||
Netherlands | 278,743,494 | 9,521,675 | (19,802,174 | ) | (10,280,499 | ) | ||||||||
Spain | 702,711,463 | – | (62,261,548 | ) | (62,261,548 | ) | ||||||||
Sweden | 314,286,408 | 1,397,214 | (49,648,090 | ) | (48,250,876 | ) | ||||||||
Switzerland | 440,346,134 | 65,772,967 | (22,171,231 | ) | 43,601,736 | |||||||||
United Kingdom | 1,101,166,072 | 123,422,950 | (79,970,883 | ) | 43,452,067 |
The Funds adopted Financial Accounting Standards Board (“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 a tax position taken or expected to be taken in a tax return. FIN 48 provides guidance on the measurement, recognition, classification and disclosures of tax positions, along with accounting for the related interest and penalties. Management has reviewed the tax positions as of February 29, 2008, inclusive of the prior three open tax return years, and has determined that the implementation of FIN 48 did not have a material impact on the Funds’ financial statements.
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 the Funds and other iShares Funds in the same advisory fee category, 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 |
NOTESTO FINANCIAL STATEMENTS | 69 |
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Notes to Financial Statements (Unaudited) (Continued)
iSHARES®, INC.
State Street Bank and Trust Company (“State Street”) serves as administrator, custodian and transfer agent for the Company. As compensation for its services, State Street 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 Funds. 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 29, 2008, BGI earned securities lending agent fees as follows:
iShares MSCI Index Fund | Securities Lending Agent Fees | ||
Austria | $ | 37,278 | |
Belgium | 24,778 | ||
EMU | 233,455 | ||
France | 7,415 | ||
Germany | 24,050 |
iShares MSCI Index Fund | Securities Lending Agent Fees | ||
Italy | $ | 16,621 | |
Netherlands | 16,663 | ||
Spain | 384,188 | ||
Sweden | 10,113 | ||
United Kingdom | 6,763 |
Cross trades for the six months ended February 29, 2008, 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, 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.
Each Fund may invest its securities lending cash collateral, if any, in the BGI Cash Premier Fund LLC (“Premier Fund”), an affiliated private money market fund managed by BGFA. Although the Premier Fund is not registered as an investment company under the 1940 Act, it intends to operate as a money market fund in compliance with Rule 2a-7 under the 1940 Act. See Note 5 for additional information regarding the Premier Fund.
70 | 2008 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
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Notes to Financial Statements (Unaudited) (Continued)
iSHARES®, INC.
For the six months ended February 29, 2008, the iShares MSCI United Kingdom Index Fund had direct investments (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 as follows:
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 | Value at End of Period | Net Realized Loss | |||||||||
Barclays PLC | 2,376 | 736 | 383 | 2,729 | $ | 25,907,796 | $ | (391,261 | ) |
As of February 29, 2008, 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 29, 2008, were as follows:
iShares MSCI Index Fund | Purchases | Sales | ||||
Austria | $ | 48,934,196 | $ | 55,258,932 | ||
Belgium | 53,851,783 | 60,179,953 | ||||
EMU | 511,319,730 | 523,248,958 | ||||
France | 22,307,861 | 27,797,424 | ||||
Germany | 83,167,241 | 109,879,613 | ||||
Italy | 20,406,192 | 27,396,384 | ||||
Netherlands | 50,217,210 | 53,504,596 | ||||
Spain | 100,671,680 | 108,400,931 | ||||
Sweden | 24,313,573 | 39,433,958 | ||||
Switzerland | 15,344,796 | 16,294,504 | ||||
United Kingdom | 57,817,452 | 75,561,094 |
In-kind transactions (see Note 4) for the six months ended February 29, 2008, were as follows:
iShares MSCI Index Fund | In-kind Purchases | In-kind Sales | ||||
Austria | $ | 83,986,503 | $ | 223,277,656 | ||
Belgium | 50,621,259 | 20,879,901 | ||||
EMU | 263,940,209 | 301,591,764 | ||||
France | 371,265,391 | 136,174,300 | ||||
Germany | 654,089,538 | 255,109,395 | ||||
Italy | 286,199,961 | 33,773,825 | ||||
Netherlands | 95,763,593 | 67,322,029 | ||||
Spain | 649,802,888 | 555,916,932 | ||||
Sweden | 62,837,020 | 302,281,588 | ||||
Switzerland | 200,656,368 | 37,395,966 | ||||
United Kingdom | 275,660,643 | 116,723,016 |
NOTESTO FINANCIAL STATEMENTS | 71 |
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Notes to Financial Statements (Unaudited) (Continued)
iSHARES®, INC.
4. CAPITAL SHARE TRANSACTIONS
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 deposit of a designated portfolio of equity securities, which constitutes a substantial replication, or 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 State Street, the administrator, to offset transfer and other transaction costs associated with the issuance and redemption of Creation Units.
From time to time, settlement of securities related to in-kind contributions or in-kind redemptions may be delayed. In such cases, securities related to in-kind contributions are reflected as “Due from custodian” and securities related to in-kind redemptions are reflected as “Securities related to in-kind transactions” in the Statements of Assets and Liabilities.
5. LOANS OF PORTFOLIO SECURITIES
Each Fund may lend its investment securities to approved borrowers, such as brokers, dealers and other financial institutions. The borrower pledges and maintains with the Fund collateral consisting of cash, an irrevocable letter of credit issued by a bank, or securities issued or guaranteed by the U.S. government. The initial collateral received by each Fund is required to have a value of at least 102% of the market value of the loaned securities for securities traded on U.S. exchanges and a value of at least 105% for all other securities. The collateral is maintained thereafter, at a value equal to at least 100% of the current market value of the securities on loan. The risks to the Funds of securities lending are that the borrower may not provide additional collateral when required or may not return the securities when due.
As of February 29, 2008, certain Funds had loaned securities which were collateralized by cash. The cash collateral received was invested in the Premier Fund. The Premier Fund seeks to achieve its investment objective by investing in a portfolio of high-quality, short-term fixed-income instruments, including money market funds (which may be managed by BGFA or its affiliate) and other instruments that, at the time of investment, have remaining maturities of 397 calendar days or less from the date of acquisition.
The market value of the securities on loan as of February 29, 2008 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 PRONOUNCEMENT
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. Management does not believe that the adoption of this standard will have a material impact on the Funds’ financial statements.
72 | 2008 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
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Shareholder Meeting Results (Unaudited)
iSHARES®, INC.
A special meeting of shareholders of iShares, Inc. was held on December 7, 2007. At the special meeting, the following matters were voted upon and approved by the shareholders of the iShares MSCI Austria Index Fund and iShares MSCI Netherlands Index Fund. The results of the voting are presented below.
Proposal 1
To approve a change in the investment objective of each Fund — from tracking the existing indices to tracking the new MSCI Investable Market Indices.
iShares MSCI Index Fund | Votes For | Votes Withheld | Votes Abstaining | |||
Austria | 6,078,149 | 131,597 | 144,917 | |||
Netherlands | 4,241,941 | 69,510 | 116,533 |
Proposal 2
To approve the reclassification of the investment objective of each Fund from fundamental to non-fundamental.
iShares MSCI Index Fund | Votes For | Votes Against | Votes Abstaining | |||
Austria | 5,826,847 | 378,284 | 149,532 | |||
Netherlands | 4,201,608 | 107,984 | 118,392 |
SHAREHOLDER MEETING RESULTS | 73 |
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Notes:
74 | 2008 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
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Notes:
NOTES | 75 |
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Notes:
76 | 2008 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
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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 S&P North American Natural Resources Sector (IGE) |
iShares S&P North American Technology - Multimedia Networking (IGN) |
iShares S&P North American Technology- Semiconductors (IGW) |
iShares S&P North American Technology- Software (IGV) iShares S&P North American Technology Sector (IGM)
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. (IYY) 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 FTSE NAREIT Industrial/Office (FIO) iShares FTSE NAREIT Mortgage REITs (REM) iShares FTSE NAREIT Real Estate 50 (FTY) iShares FTSE NAREIT Residential (REZ) iShares FTSE NAREIT Retail (RTL) |
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 Infrastructure (IGF) 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 Chile (ECH) iShares MSCI France (EWQ) iShares MSCI Germany (EWG) iShares MSCI Hong Kong (EWH) iShares MSCI Israel Capped Investable Market (EIS) |
iShares MSCI Italy (EWI) iShares MSCI Japan (EWJ) iShares MSCI Japan Small Cap (SCJ) 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 Thailand Investable Market (THD) |
iShares MSCI Turkey Investable Market (TUR) |
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 iBoxx $ High Yield Corporate (HYG) |
iShares Lehman Government/Credit (GBF) iShares Lehman Intermediate Government/ Credit (GVI) |
iShares Lehman MBS (MBB) iShares S&P National Municipal (MUB) iShares S&P California Municipal (CMF) iShares S&P New York Municipal (NYF) iShares JPMorgan USD Emerging Markets (EMB) |
iShares Specialty Index Funds iShares KLD 400 Social (DSI) iShares KLD Select SocialSM (KLD) iShares Dow Jones Select Dividend (DVY) iShares Dow Jones EPAC Select Dividend (IDV) |
iShares S&P U.S. Preferred Stock (PFF)
iShares International Index Funds iShares FTSE Developed Small Capex-North America (IFSM) iShares FTSE EPRA/NAREIT Global Real Estate ex-U.S. (IFGL) |
iShares FTSE EPRA/NAREIT North America (IFNA) |
iShares FTSEEPRA/NAREIT Europe (IFEU) iShares FTSE EPRA/NAREIT Asia (IFAS) iShares MSCI ACWI (ACWI) iShares MSCI ACWI ex US (ACWX) iShares MSCI BRIC (BKF) iShares MSCI EAFE (EFA) iShares MSCI EAFE Growth (EFG) iShares MSCI EAFE Value (EFV) iShares MSCI EAFE Small Cap (SCZ) iShares MSCI Emerging Markets (EEM) iShares MSCI EMU (EZU) iShares MSCI Kokusai (TOK) iShares MSCI Pacific ex-Japan (EPP) iShares S&P Asia 50 (AIA) iShares S&P Europe 350 (IEV) iShares S&P Latin America 40 (ILF) iShares S&P World ex-U.S. Property (WPS) |
iSHARES FAMILYOF FUNDS | 77 |
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The iShares® Family of Funds (Continued)
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 Lehman Brothers, nor are they sponsored, endorsed, issued, sold or promoted by Cohen & Steers Capital Management, Inc., Dow Jones & Company, Inc., European Public Real Estate Association (“EPRA®”), FTSE International Limited (“FTSE”), FTSE/Xinhua Index Limited (“FXI”), iBoxx®, J.P. Morgan Securities Inc., KLD Research & Analytics, Inc., MSCI Inc., Morningstar Inc., The NASDAQ Stock Market, Inc., National Association of Real Estate Investment Trusts (“NAREIT”), New York Stock Exchange, Inc., Frank Russell Company, or Standard & Poor’s. None of these companies make any representation regarding the advisability of investing in the iShares Funds. Neither SEI nor BGI, nor any of their affiliates, are affiliated with the companies listed above. FXI does not make any warranty regarding the FTSE/Xinhua Index. All rights in the FTSE/Xinhua Index vest in FXI. Neither FTSE nor NAREIT makes any warranty regarding the FTSENAREIT Real Estate 50 Index, FTSENAREIT Residential Index, FTSENAREIT Retail Index, FTSENAREIT Mortgage REITs Index or FTSENAREIT Industrial/Office Index; all rights vest in NAREIT. Neither FTSEn or NAREIT makes any warranty regarding the FTSEEPRA/NAREIT Global Real Estate ex-US/North America/Europe/Asia Index; all rights vest in FTSE, NAREIT, and EPRA. All rights in the FTSE Developed Small Cap ex-North America Index vest in FTSE. “FTSE” is a trade- and servicemark of London Stock Exchange and The Financial Times Limited; “Xinhua” is a trade- and servicemark of Xinhua Financial Network Limited. “NAREIT®” is a trademark of NAREIT; “EPRA®” is a trademark of EPRA.
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 2008 Semi-Annual Report.
6712-iS-0408
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iSHARES® MSCI AUSTRALIA INDEX FUND
Performance as of February 29, 2008
The iShares MSCI Australia Index Fund (the “Fund”) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of publicly traded securities in the aggregate in the Australian market, as measured by the MSCI Australia IndexSM (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to 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 29, 2008, the Fund returned 3.36%, while the Index returned 2.88%.
Average Annual Total Returns | ||||||||||||||||
Year Ended 2/29/08 | Five Years Ended 2/29/08 | Ten Years Ended 2/29/08 | ||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||
16.48% | 15.15% | 15.76% | 29.34% | 28.96% | 28.73% | 14.08% | 13.97% | 14.06% | ||||||||
Cumulative Total Returns | ||||||||||||||||
Year Ended 2/29/08 | Five Years Ended 2/29/08 | Ten Years Ended 2/29/08 | ||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||
16.48% | 15.15% | 15.76% | 261.93% | 256.63% | 253.53% | 273.19% | 269.69% | 272.52% |
“Average Annual Total Returns” represent the average annual change in value of an investment over the period(s) indicated. “Cumulative Total Returns” represent the total change in value of an investment over the period(s) 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 table(s) 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 2/29/08 | |||
Sector | Percentage of Net Assets | ||
Financial | 40.41 | % | |
Basic Materials | 26.49 | ||
Consumer Non-Cyclical | 11.64 | ||
Industrial | 8.70 | ||
Energy | 4.89 | ||
Consumer Cyclical | 3.24 | ||
Communications | 2.57 | ||
Utilities | 0.54 | ||
Technology | 0.44 | ||
Short-Term and Other Net Assets | 1.08 | ||
TOTAL | 100.00 | % | |
TEN LARGEST FUND HOLDINGS As of 2/29/08 | |||
Security | Percentage of Net Assets | ||
BHP Billiton Ltd. | 14.48 | % | |
Commonwealth Bank of Australia | 6.06 | ||
National Australia Bank Ltd. | 5.11 | ||
Westpac Banking Corp. | 4.74 | ||
Australia and New Zealand Banking Group Ltd. | 4.48 | ||
Rio Tinto Ltd. | 4.29 | ||
Woolworths Ltd. | 3.84 | ||
Westfield Group | 3.34 | ||
Woodside Petroleum Ltd. | 3.00 | ||
Wesfarmers Ltd. | 2.24 | ||
TOTAL | 51.58 | % | |
FUND PERFORMANCE OVERVIEWS | 1 |
Table of Contents
Fund Performance Overview
iSHARES® MSCI BRAZIL INDEX FUND
Performance as of February 29, 2008
The iShares MSCI Brazil Index Fund (the “Fund”) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of publicly traded securities in the aggregate in the Brazilian market, as measured by the MSCI Brazil IndexSM (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to 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 29, 2008, the Fund returned 37.80%, while the Index returned 39.70%.
Average Annual Total Returns | ||||||||||||||||
Year Ended 2/29/08 | Five Years Ended 2/29/08 | Inception to 2/29/08 | ||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||
85.35% | 88.53% | 87.98% | 65.15% | 65.59% | 67.37% | 23.25% | 23.52% | 25.80% | ||||||||
Cumulative Total Returns | ||||||||||||||||
Year Ended 2/29/08 | Five Years Ended 2/29/08 | Inception to 2/29/08 | ||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||
85.35% | 88.53% | 87.98% | 1,128.45% | 1,144.84% | 1,213.53% | 394.04% | 402.25% | 477.66% |
Total returns for the period 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 period(s) indicated. “Cumulative Total Returns” represent the total change in value of an investment over the period(s) 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. 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 table(s) 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 2/29/08 | |||
Sector | Percentage of Net Assets | ||
Basic Materials | 32.51 | % | |
Energy | 26.49 | ||
Financial | 17.07 | ||
Consumer Non-Cyclical | 6.40 | ||
Communications | 5.97 | ||
Utilities | 5.90 | ||
Industrial | 2.35 | ||
Consumer Cyclical | 2.10 | ||
Diversified | 0.91 | ||
Short-Term and Other Net Assets | 0.30 | ||
TOTAL | 100.00 | % | |
TEN LARGEST FUND HOLDINGS As of 2/29/08 | |||
Security | Percentage of Net Assets | ||
Petroleo Brasileiro SA Preferred | 13.91 | % | |
Petroleo Brasileiro SA | 12.58 | ||
Companhia Vale do Rio Doce Class A Preferred | 11.35 | ||
Companhia Vale do Rio Doce ADR | 9.25 | ||
Banco Bradesco SA Preferred | 4.67 | ||
Banco Itau Holding Financeira SA Preferred | 4.40 | ||
Unibanco - Uniao de Bancos Brasileiros SA Units | 3.47 | ||
Companhia de Bebidas das Americas Preferred | 2.96 | ||
Companhia Siderurgica Nacional | 2.81 | ||
Gerdau SA Preferred | 2.03 | ||
TOTAL | 67.43 | % | |
2 | 2008 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Fund Performance Overview
iSHARES® MSCI BRIC INDEX FUND
Performance as of February 29, 2008
The iShares MSCI BRIC 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 BRIC IndexSM (the “Index”). The Index is designed to measure the combined equity market performance in Brazil, Russia, India and China (“BRIC”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to 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 period from November 12, 2007 (inception date of the Fund) through February 29, 2008, the Fund declined 5.10%, while the Index declined 4.69%.
Cumulative Total Returns | ||||
Inception to 2/29/08 | ||||
NAV | MARKET | INDEX | ||
(5.10)% | (4.62)% | (4.69)% |
“Cumulative Total Returns” represent the total change in value of an investment over the period indicated and are calculated from an inception date of 11/12/07.
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 (11/16/07), 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 table above do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption or sale of fund shares. The investment return and principal value of shares of the Fund will vary with changes in market conditions. Shares of the Fund may be worth more or less than their original cost when they are redeemed or sold in the market. The Fund’s past performance is no guarantee of future results.
PORTFOLIO ALLOCATION As of 2/29/08 | |||
Sector | Percentage of Net Assets | ||
Energy | 30.70 | % | |
Financial | 22.19 | ||
Basic Materials | 14.59 | ||
Communications | 12.75 | ||
Technology | 4.41 | ||
Consumer Non-Cyclical | 4.26 | ||
Industrial | 4.23 | ||
Utilities | 3.03 | ||
Diversified | 2.21 | ||
Consumer Cyclical | 1.45 | ||
Short-Term and Other Net Assets | 0.18 | ||
TOTAL | 100.00 | % | |
TEN LARGEST FUND HOLDINGS As of 2/29/08 | |||
Security | Percentage of Net Assets | ||
OAO Gazprom SP ADR Reg S (Russia) | 7.49 | % | |
China Mobile Ltd. (China) | 5.75 | ||
Petroleo Brasileiro SA Preferred (Brazil) | 4.67 | ||
Petroleo Brasileiro SA (Brazil) | 3.88 | ||
Reliance Industries Ltd. GDR (India) | 3.60 | ||
Companhia Vale do Rio Doce Class A | 3.52 | ||
Companhia Vale do Rio Doce (Brazil) | 2.98 | ||
LUKOIL SP ADR (Russia) | 2.18 | ||
ICICI Bank Ltd. SP ADR (India) | 2.16 | ||
Infosys Technologies Ltd. SP ADR (India) | 2.05 | ||
TOTAL | 38.28 | % | |
FUND PERFORMANCE OVERVIEWS | 3 |
Table of Contents
Fund Performance Overview
iSHARES® MSCI CANADA INDEX FUND
Performance as of February 29, 2008
The iShares MSCI Canada Index Fund (the “Fund”) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of publicly traded securities in the aggregate in the Canadian market, as measured by the MSCI Canada Index SM (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to 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 29, 2008, the Fund returned 8.81%, while the Index returned 8.91%.
Average Annual Total Returns | ||||||||||||||||
Year Ended 2/29/08 | Five Years Ended 2/29/08 | Ten Years Ended 2/29/08 | ||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||
27.96% | 27.93% | 28.24% | 27.77% | 27.83% | 28.16% | 13.54% | 13.49% | 13.96% |
Cumulative Total Returns | ||||||||||||||||
Year Ended 2/29/08 | Five Years Ended 2/29/08 | Ten Years Ended 2/29/08 | ||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||
27.96% | 27.93% | 28.24% | 240.47% | 241.35% | 245.69% | 256.18% | 254.60% | 269.50% |
“Average Annual Total Returns” represent the average annual change in value of an investment over the period(s) indicated. “Cumulative Total Returns” represent the total change in value of an investment over the period(s) 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 table(s) 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 2/29/08 | |||
Sector | Percentage of Net Assets | ||
Financial | 28.74 | % | |
Energy | 28.06 | ||
Basic Materials | 20.23 | ||
Communications | 5.46 | ||
Industrial | 5.23 | ||
Technology | 4.87 | ||
Consumer Cyclical | 2.60 | ||
Diversified | 1.90 | ||
Consumer Non-Cyclical | 1.46 | ||
Utilities | 1.19 | ||
Short-Term and Other Net Assets | 0.26 | ||
TOTAL | 100.00 | % | |
TEN LARGEST FUND HOLDINGS As of 2/29/08 | |||
Security | Percentage of Net Assets | ||
Royal Bank of Canada | 5.57 | % | |
Manulife Financial Corp. | 5.16 | ||
EnCana Corp. | 4.92 | ||
Research In Motion Ltd. | 4.52 | ||
Potash Corp. of Saskatchewan Inc. | 4.32 | ||
Bank of Nova Scotia | 4.11 | ||
Suncor Energy Inc. | 4.10 | ||
Barrick Gold Corp. | 3.89 | ||
Canadian Natural Resources Ltd. | 3.48 | ||
Goldcorp Inc. | 2.62 | ||
TOTAL | 42.69 | % | |
4 | 2008 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Fund Performance Overview
iSHARES® MSCI CHILE INDEX FUND
Performance as of February 29, 2008
The iShares MSCI Chile 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 Chile Investable Market IndexSM (the “Index”). The Index is designed to measure broad based equity market performance in Chile. The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to 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 period from November 12, 2007 (inception date of the Fund) through February 29, 2008, the Fund returned 0.10%, while the Index declined 0.03%.
Cumulative Total Returns | ||||
Inception to 2/29/08 | ||||
NAV | MARKET | INDEX | ||
0.10% | 1.13% | (0.03)% |
“Cumulative Total Returns” represent the total change in value of an investment over the period indicated and are calculated from an inception date of 11/12/07.
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 (11/16/07), 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 table above does 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 2/29/08 | |||
Sector | Percentage of Net Assets | ||
Utilities | 23.51 | % | |
Basic Materials | 17.85 | ||
Diversified | 16.27 | ||
Consumer Non-Cyclical | 13.59 | ||
Financial | 9.91 | ||
Consumer Cyclical | 9.51 | ||
Communications | 5.55 | ||
Industrial | 3.05 | ||
Technology | 0.64 | ||
Short-Term and Other Net Assets | 0.12 | ||
TOTAL | 100.00 | % | |
TEN LARGEST FUND HOLDINGS As of 2/29/08 | |||
Security | Percentage of Net Assets | ||
Empresas Copec SA | 15.91 | % | |
Empresa Nacional de Electricidad SA | 9.56 | ||
Enersis SA | 8.48 | ||
Empresas CMPC SA | 6.99 | ||
Centros Comerciales Sudamericanos SA | 6.70 | ||
Banco Santander Chile SA | 4.85 | ||
Sociedad Quimica y Minera de | 4.82 | ||
CAP SA | 4.79 | ||
Lan Airlines SA | 3.79 | ||
Empresa Nacional de | 3.34 | ||
TOTAL | 69.23 | % | |
FUND PERFORMANCE OVERVIEWS | 5 |
Table of Contents
Fund Performance Overview
iSHARES® MSCI HONG KONG INDEX FUND
Performance as of February 29, 2008
The iShares MSCI Hong Kong Index Fund (the “Fund”) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of publicly traded securities in the aggregate in the Hong Kong market, as measured by the MSCI Hong Kong IndexSM (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to 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 29, 2008, the Fund returned 6.33%, while the Index returned 6.71%.
Average Annual Total Returns | ||||||||||||||||
Year Ended 2/29/08 | Five Years Ended 2/29/08 | Ten Years Ended 2/29/08 | ||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||
22.46% | 21.62% | 23.22% | 23.68% | 23.05% | 24.53% | 8.32% | 8.00% | 9.68% |
Cumulative Total Returns | ||||||||||||||||
Year Ended 2/29/08 | Five Years Ended 2/29/08 | Ten Years Ended 2/29/08 | ||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||
22.46% | 21.62% | 23.22% | 189.45% | 182.08% | 199.42% | 122.47% | 115.86% | 151.96% |
“Average Annual Total Returns” represent the average annual change in value of an investment over the period(s) indicated. “Cumulative Total Returns” represent the total change in value of an investment over the period(s) 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 table(s) 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 2/29/08 | |||
Sector | Percentage of Net Assets | ||
Financial | 49.75 | % | |
Diversified | 13.76 | ||
Consumer Cyclical | 12.20 | ||
Utilities | 10.07 | ||
Industrial | 6.76 | ||
Communications | 4.78 | ||
Basic Materials | 1.34 | ||
Consumer Non-Cyclical | 0.71 | ||
Technology | 0.47 | ||
Short-Term and Other Net Assets | 0.16 | ||
TOTAL | 100.00 | % | |
TEN LARGEST FUND HOLDINGS As of 2/29/08 | |||
Security | Percentage of Net Assets | ||
Sun Hung Kai Properties Ltd. | 8.21 | % | |
Cheung Kong (Holdings) Ltd. | 7.96 | ||
Hong Kong Exchanges and Clearing Ltd. | 7.46 | ||
Hutchison Whampoa Ltd. | 7.31 | ||
Hang Seng Bank Ltd. | 4.98 | ||
Esprit Holdings Ltd. | 4.49 | ||
Hong Kong and China Gas Co. Ltd. (The) | 3.71 | ||
CLP Holdings Ltd. | 3.58 | ||
Swire Pacific Ltd. Class A | 3.23 | ||
BOC Hong Kong (Holdings) Ltd. | 3.23 | ||
TOTAL | 54.16 | % | |
6 | 2008 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Fund Performance Overview
iSHARES® MSCI JAPAN SMALL CAP INDEX FUND
Performance as of February 29, 2008
The iShares MSCI Japan Small Cap 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 Japan Small Cap IndexSM (the “Index”). The Index targets 40% of the eligible small cap universe within each industry group in the MSCI Japan IndexSM. The small cap universe is defined as all listed securities that have a market capitalization in the range of $200 million to $1,500 million. The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to 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 period from December 20, 2007 (inception date of the Fund) through February 29, 2008, the Fund declined 1.78%, while the Index declined 1.63%.
Cumulative Total Returns | ||||
Inception to 2/29/08 | ||||
NAV | MARKET | INDEX | ||
(1.78)% | (2.15)% | (1.63)% |
“Cumulative Total Returns” represent the total change in value of an investment over the period indicated and are calculated from an inception date of 12/20/07.
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 the day after the Fund’s inception, for the period from inception to the first day of secondary market trading in shares of the Fund (12/21/07), 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 table above does 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 2/29/08 | |||
Sector | Percentage of Net Assets | ||
Industrial | 25.00 | % | |
Consumer Cyclical | 22.51 | ||
Financial | 22.17 | ||
Consumer Non-Cyclical | 13.46 | ||
Basic Materials | 9.01 | ||
Communications | 3.65 | ||
Technology | 2.76 | ||
Utilities | 1.11 | ||
Energy | 0.11 | ||
Short-Term and Other Net Assets | 0.22 | ||
TOTAL | 100.00 | % | |
TEN LARGEST FUND HOLDINGS As of 2/29/08 | |||
Security | Percentage of Net Assets | ||
Yamaguchi Financial Group Inc. | 0.70 | % | |
Nagoya Railroad Co. Ltd. | 0.67 | ||
Toho Gas Co. Ltd. | 0.66 | ||
Iyo Bank Ltd. (The) | 0.62 | ||
Shimadzu Corp. | 0.60 | ||
Chugoku Bank Ltd. (The) | 0.57 | ||
Hisamitsu Pharmaceutical Co. Inc. | 0.54 | ||
Keihan Electric Railway Co. Ltd. | 0.53 | ||
Pacific Metals Co. Ltd. | 0.51 | ||
Hamamatsu Photonics K.K. | 0.51 | ||
TOTAL | 5.91 | % | |
FUND PERFORMANCE OVERVIEWS | 7 |
Table of Contents
Fund Performance Overview
iSHARES® MSCI MALAYSIA INDEX FUND
Performance as of February 29, 2008
The iShares MSCI Malaysia Index Fund (the “Fund”) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of publicly traded securities in the aggregate in the Malaysian market, as measured by the MSCI Malaysia IndexSM (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to 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 29, 2008, the Fund returned 20.02%, while the Index returned 20.31%.
Average Annual Total Returns | ||||||||||||||||
Year Ended 2/29/08 | Five Years Ended 2/29/08 | Ten Years Ended 2/29/08 | ||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||
29.59% | 29.54% | 30.13% | 22.99% | 23.20% | 23.92% | 10.17% | 10.13% | 11.56% |
Cumulative Total Returns | ||||||||||||||||
Year Ended 2/29/08 | Five Years Ended 2/29/08 | Ten Years Ended 2/29/08 | ||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||
29.59% | 29.54% | 30.13% | 181.37% | 183.81% | 192.25% | 163.45% | 162.39% | 198.72% |
“Average Annual Total Returns” represent the average annual change in value of an investment over the period(s) indicated. “Cumulative Total Returns” represent the total change in value of an investment over the period(s) 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. 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 table(s) 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 2/29/08 | |||
Sector | Percentage of Net Assets | ||
Financial | 29.27 | % | |
Consumer Non-Cyclical | 18.14 | ||
Consumer Cyclical | 14.59 | ||
Industrial | 12.57 | ||
Diversified | 10.83 | ||
Utilities | 6.66 | ||
Communications | 6.42 | ||
Energy | 1.12 | ||
Technology | 0.15 | ||
Short-Term and Other Net Assets | 0.25 | ||
TOTAL | 100.00 | % | |
TEN LARGEST FUND HOLDINGS As of 2/29/08 | |||
Security | Percentage of Net Assets | ||
Sime Darby Bhd | 9.73 | % | |
IOI Corp. Bhd | 9.26 | ||
Bumiputra-Commerce Holdings Bhd | 9.25 | ||
Malayan Banking Bhd | 7.72 | ||
Genting Bhd | 4.42 | ||
Telekom Malaysia Bhd | 4.11 | ||
Tenaga Nasional Bhd | 4.09 | ||
Public Bank Bhd | 3.85 | ||
Resorts World Bhd | 3.79 | ||
MISC Bhd | 3.43 | ||
TOTAL | 59.65 | % | |
8 | 2008 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Fund Performance Overview
iSHARES® MSCI MEXICO INDEX FUND
Performance as of February 29, 2008
The iShares MSCI Mexico Index Fund (the “Fund”) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of publicly traded securities in the aggregate in the Mexican market, as measured by the MSCI Mexico Investable Market IndexSM (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to 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 29, 2008, the Fund declined 2.64%, while the Index declined 1.94%.
Average Annual Total Returns | ||||||||||||||||
Year Ended 2/29/08 | Five Years Ended 2/29/08 | Ten Years Ended 2/29/08 | ||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||
12.48% | 15.48% | 12.95% | 38.60% | 39.21% | 37.95% | 16.50% | 16.68% | 17.59% | ||||||||
Cumulative Total Returns | ||||||||||||||||
Year Ended 2/29/08 | Five Years Ended 2/29/08 | Ten Years Ended 2/29/08 | ||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||
12.48% | 15.48% | 12.95% | 411.54% | 422.76% | 399.66% | 360.41% | 367.50% | 405.39% |
Effective December 1, 2007, the Fund changed its underlying index from the MSCI Mexico IndexSM to the MSCI Mexico Investable Market Index. Performance shown above reflects the MSCI Mexico Index through November 30, 2007 and the MSCI Mexico Investable Market Index thereafter.
“Average Annual Total Returns” represent the average annual change in value of an investment over the period(s) indicated. “Cumulative Total Returns” represent the total change in value of an investment over the period(s) 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 table(s) 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 2/29/08 | |||
Sector | Percentage of Net Assets | ||
Communications | 44.61 | % | |
Industrial | 17.07 | ||
Consumer Cyclical | 10.67 | ||
Consumer Non-Cyclical | 10.36 | ||
Basic Materials | 8.84 | ||
Diversified | 4.56 | ||
Financial | 3.78 | ||
Short-Term and Other Net Assets | 0.11 | ||
TOTAL | 100.00 | % | |
TEN LARGEST FUND HOLDINGS As of 2/29/08 | |||
Security | Percentage of Net Assets | ||
America Movil SAB de CV Series L | 25.06 | % | |
Cemex SAB de CV Series CPO | 12.38 | ||
Telefonos de Mexico SAB de CV Series L | 10.35 | ||
Fomento Economico Mexicano SAB de CV BD Units | 5.72 | ||
Grupo Mexico SA de CV Series B | 4.91 | ||
Grupo Televisa SA Series CPO | 4.85 | ||
Wal-Mart de Mexico SAB de CV Series V | 4.79 | ||
Grupo Financiero Banorte SAB de CV Series O | 3.53 | ||
Carso Global Telecom SAB de CV Class A1 | 3.29 | ||
Grupo Carso SA de CV Series A1 | 3.12 | ||
TOTAL | 78.00 | % | |
FUND PERFORMANCE OVERVIEWS | 9 |
Table of Contents
Fund Performance Overview
iSHARES® MSCI PACIFIC EX-JAPAN INDEX FUND
Performance as of February 29, 2008
The iShares MSCI Pacific ex-Japan Index Fund (the “Fund”) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of publicly traded securities in the aggregate in the Australia, Hong Kong, New Zealand and Singapore markets, as measured by the MSCI Pacific ex-Japan IndexSM (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to 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 29, 2008, the Fund returned 3.03%, while the Index returned 3.04%.
Average Annual Total Returns | ||||||||||||||||
Year Ended 2/29/08 | Five Years Ended 2/29/08 | Inception to 2/29/08 | ||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||
16.52% | 15.53% | 16.49% | 27.67% | 27.04% | 27.57% | 21.76% | 21.54% | 21.69% |
Cumulative Total Returns | ||||||||||||||||
Year Ended 2/29/08 | Five Years Ended 2/29/08 | Inception to 2/29/08 | ||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||
16.52% | 15.53% | 16.49% | 239.25% | 230.89% | 237.84% | 248.87% | 244.94% | 247.83% |
Total returns for the period 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 period(s) indicated. “Cumulative Total Returns” represent the total change in value of an investment over the period(s) 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 table(s) 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 2/29/08 | |||
Sector | Percentage of Net Assets | ||
Financial | 43.10 | % | |
Basic Materials | 17.65 | ||
Industrial | 8.92 | ||
Consumer Non-Cyclical | 8.36 | ||
Consumer Cyclical | 5.53 | ||
Communications | 5.40 | ||
Diversified | 3.99 | ||
Energy | 3.18 | ||
Utilities | 2.73 | ||
Technology | 0.39 | ||
Short-Term and Other Net Assets | 0.75 | ||
TOTAL | 100.00 | % | |
TEN LARGEST FUND HOLDINGS As of 2/29/08 | |||
Security | Percentage of Net Assets | ||
BHP Billiton Ltd. (Australia) | 9.51 | % | |
Commonwealth Bank of Australia (Australia) | 3.96 | ||
National Australia Bank Ltd. (Australia) | 3.35 | ||
Westpac Banking Corp. (Australia) | 3.12 | ||
Australia and New Zealand Banking Group Ltd. (Australia) | 2.95 | ||
Rio Tinto Ltd. (Australia) | 2.86 | ||
Woolworths Ltd. (Australia) | 2.53 | ||
Westfield Group (Australia) | 2.19 | ||
Woodside Petroleum Ltd. (Australia) | 1.92 | ||
Sun Hung Kai Properties Ltd. (Hong Kong) | 1.88 | ||
TOTAL | 34.27 | % | |
10 | 2008 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Fund Performance Overview
iSHARES® MSCI SINGAPORE INDEX FUND
Performance as of February 29, 2008
The iShares MSCI Singapore Index Fund (the “Fund”) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of publicly traded securities in the aggregate in the Singaporean market, as measured by the MSCI Singapore IndexSM (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to 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 29, 2008, the Fund declined 1.82%, while the Index declined 1.79%.
Average Annual Total Returns | ||||||||||||||||
Year Ended 2/29/08 | Five Years Ended 2/29/08 | Ten Years Ended 2/29/08 | ||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||
11.25% | 9.01% | 11.69% | 28.69% | 28.25% | 28.33% | 9.13% | 8.82% | 9.10% | ||||||||
Cumulative Total Returns | ||||||||||||||||
Year Ended 2/29/08 | Five Years Ended 2/29/08 | Ten Years Ended 2/29/08 | ||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||
11.25% | 9.01% | 11.69% | 252.89% | 247.00% | 248.09% | 139.67% | 132.75% | 138.84% |
“Average Annual Total Returns” represent the average annual change in value of an investment over the period(s) indicated. “Cumulative Total Returns” represent the total change in value of an investment over the period(s) 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 table(s) 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 2/29/08 | |||
Sector | Percentage of Net Assets | ||
Financial | 49.96 | % | |
Communications | 18.95 | ||
Industrial | 12.27 | ||
Diversified | 7.19 | ||
Consumer Cyclical | 5.75 | ||
Consumer Non-Cyclical | 5.18 | ||
Energy | 0.61 | ||
Short-Term and Other Net Assets | 0.09 | ||
TOTAL | 100.00 | % | |
TEN LARGEST FUND HOLDINGS As of 2/29/08 | |||
Security | Percentage of Net Assets | ||
Singapore Telecommunications Ltd. | 15.18 | % | |
United Overseas Bank Ltd. | 10.30 | ||
DBS Group Holdings Ltd. | 9.45 | ||
Oversea-Chinese Banking Corp. | 9.20 | ||
Keppel Corp. Ltd. | 5.54 | ||
CapitaLand Ltd. | 4.90 | ||
Singapore Airlines Ltd. | 4.38 | ||
Singapore Press Holdings Ltd. | 3.77 | ||
City Developments Ltd. | 3.42 | ||
Singapore Exchange Ltd. | 3.36 | ||
TOTAL | 69.50 | % | |
FUND PERFORMANCE OVERVIEWS | 11 |
Table of Contents
Fund Performance Overview
iSHARES® MSCI SOUTH AFRICA INDEX FUND
Performance as of February 29, 2008
The iShares MSCI South Africa Index Fund (the “Fund”) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of publicly traded securities in the aggregate in the South African market, as measured by the MSCI South Africa IndexSM (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to 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 29, 2008, the Fund declined 0.59%, while the Index declined 0.62%.
Average Annual Total Returns | ||||||||||||||||
Year Ended 2/29/08 | Five Years Ended 2/29/08 | Inception to 2/29/08 | ||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||
7.46% | 6.21% | 7.83% | 28.29% | 28.25% | 29.52% | 27.82% | 27.72% | 29.14% | ||||||||
Cumulative Total Returns | ||||||||||||||||
Year Ended 2/29/08 | Five Years Ended 2/29/08 | Inception to 2/29/08 | ||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||
7.46% | 6.21% | 7.83% | 247.50% | 247.01% | 264.50% | 247.15% | 245.85% | 265.62% |
Total returns for the period 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 period(s) indicated. “Cumulative Total Returns” represent the total change in value of an investment over the period(s) 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 table(s) 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 2/29/08 | |||
Sector | Percentage of Net Assets | ||
Basic Materials | 31.32 | % | |
Financial | 17.60 | ||
Communications | 16.20 | ||
Energy | 13.74 | ||
Diversified | 6.47 | ||
Industrial | 5.32 | ||
Consumer Cyclical | 4.52 | ||
Consumer Non-Cyclical | 3.58 | ||
Short-Term and Other Net Assets | 1.25 | ||
TOTAL | 100.00 | % | |
TEN LARGEST FUND HOLDINGS As of 2/29/08 | |||
Security | Percentage of Net Assets | ||
Sasol Ltd. | 13.74 | % | |
MTN Group Ltd. | 10.54 | ||
Impala Platinum Holdings Ltd. | 10.02 | ||
Standard Bank Group Ltd. | 6.42 | ||
Anglo Platinum Ltd. | 5.01 | ||
Gold Fields Ltd. | 3.86 | ||
AngloGold Ashanti Ltd. | 3.58 | ||
Naspers Ltd. | 3.31 | ||
FirstRand Ltd. | 3.01 | ||
Remgro Ltd. | 2.66 | ||
TOTAL | 62.15 | % | |
12 | 2008 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Fund Performance Overview
iSHARES® MSCI SOUTH KOREA INDEX FUND
Performance as of February 29, 2008
The iShares MSCI South Korea Index Fund (the “Fund”) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of publicly traded securities in the aggregate in the South Korean market, as measured by the MSCI Korea IndexSM (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to 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 29, 2008, the Fund declined 7.00%, while the Index declined 6.90%.
Average Annual Total Returns | ||||||||||||||||
Year Ended 2/29/08 | Five Years Ended 2/29/08 | Inception to 2/29/08 | ||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||
19.72% | 19.20% | 20.20% | 29.06% | 28.05% | 30.85% | 15.12% | 14.79% | 15.73% | ||||||||
Cumulative Total Returns | ||||||||||||||||
Year Ended 2/29/08 | Five Years Ended 2/29/08 | Inception to 2/29/08 | ||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||
19.72% | 19.20% | 20.20% | 258.10% | 244.23% | 283.60% | 200.38% | 193.67% | 213.06% |
Total returns for the period 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 period(s) indicated. “Cumulative Total Returns” represent the total change in value of an investment over the period(s) 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 table(s) 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 2/29/08 | |||
Sector | Percentage of Net Assets | ||
Industrial | 21.12 | % | |
Financial | 17.79 | ||
Technology | 16.79 | ||
Basic Materials | 13.45 | ||
Consumer Cyclical | 12.64 | ||
Communications | 5.98 | ||
Consumer Non-Cyclical | 4.30 | ||
Energy | 3.51 | ||
Utilities | 2.28 | ||
Diversified | 0.83 | ||
Short-Term and Other Net Assets | 1.31 | ||
TOTAL | 100.00 | % | |
TEN LARGEST FUND HOLDINGS As of 2/29/08 | |||
Security | Percentage of Net Assets | ||
Samsung Electronics Co. Ltd. | 13.79 | % | |
POSCO | 8.83 | ||
Kookmin Bank | 4.46 | ||
Shinhan Financial Group Ltd. | 3.79 | ||
Hyundai Heavy Industries Co. Ltd. | 3.59 | ||
Hyundai Motor Co. Ltd. | 2.30 | ||
LG Electronics Inc. | 2.16 | ||
Samsung Electronics Co. Ltd. Preferred | 1.93 | ||
Korea Electric Power Corp. | 1.93 | ||
Shinsegae Co. Ltd. | 1.92 | ||
TOTAL | 44.70 | % | |
FUND PERFORMANCE OVERVIEWS | 13 |
Table of Contents
Fund Performance Overview
iSHARES® MSCI TAIWAN INDEX FUND
Performance as of February 29, 2008
The iShares MSCI Taiwan Index Fund (the “Fund”) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of publicly traded securities in the aggregate in the Taiwanese market, as measured by the MSCI Taiwan IndexSM (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to 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 29, 2008, the Fund returned 0.17%, while the Index returned 0.60%.
Average Annual Total Returns | ||||||||||||||||
Year Ended 2/29/08 | Five Years Ended 2/29/08 | Inception to 2/29/08 | ||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||
11.78% | 14.48% | 12.53% | 16.28% | 16.46% | 17.39% | (1.45)% | (1.57)% | (0.51)% | ||||||||
Cumulative Total Returns | ||||||||||||||||
Year Ended 2/29/08 | Five Years Ended 2/29/08 | Inception to 2/29/08 | ||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||
11.78% | 14.48% | 12.53% | 112.54% | 114.20% | 122.90% | (10.63)% | (11.47)% | (3.87)% |
Total returns for the period 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 period(s) indicated. “Cumulative Total Returns” represent the total change in value of an investment over the period(s) 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 table(s) 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 2/29/08 | |||
Sector | Percentage of Net Assets | ||
Technology | 33.44 | % | |
Industrial | 25.31 | ||
Financial | 16.39 | ||
Basic Materials | 12.93 | ||
Communications | 4.93 | ||
Consumer Cyclical | 3.88 | ||
Energy | 1.66 | ||
Consumer Non-Cyclical | 1.20 | ||
Short-Term and Other Net Assets | 0.26 | ||
TOTAL | 100.00 | % | |
TEN LARGEST FUND HOLDINGS As of 2/29/08 | |||
Security | Percentage of Net Assets | ||
Taiwan Semiconductor Manufacturing Co. Ltd. | 11.24 | % | |
Hon Hai Precision Industry Co. Ltd. | 8.18 | ||
Cathay Financial Holding Co. Ltd. | 3.81 | ||
China Steel Corp. | 3.51 | ||
AU Optronics Corp. | 3.27 | ||
Nan Ya Plastic Corp. | 3.23 | ||
Chunghwa Telecom Co. Ltd. | 3.21 | ||
Formosa Plastics Corp. | 3.00 | ||
High Tech Computer Corp. | 2.73 | ||
MediaTek Inc. | 2.58 | ||
TOTAL | 44.76 | % | |
14 | 2008 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, 2007 to February 29, 2008.
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 (9/1/07)a | Ending Account Value (2/29/08)a | Annualized Expense Ratio | Expenses Paid During Periodb 2/29/08) | |||||
Australia | |||||||||
Actual | $1,000.00 | $1,033.60 | 0.51 | % | $2.58 | ||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,022.30 | 0.51 | 2.56 | |||||
Brazil | |||||||||
Actual | 1,000.00 | 1,378.00 | 0.64 | 3.78 | |||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,021.70 | 0.64 | 3.22 | |||||
BRIC | |||||||||
Actual | 1,000.00 | 949.00 | 0.72 | 2.09 | |||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,021.30 | 0.72 | 3.62 | |||||
Canada | |||||||||
Actual | 1,000.00 | 1,088.10 | 0.51 | 2.65 | |||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,022.30 | 0.51 | 2.56 |
SHAREHOLDER EXPENSES | 15 |
Table of Contents
Shareholder Expenses (Unaudited) (Continued)
iSHARES®, INC.
iShares MSCI Index Fund | Beginning Account Value (9/1/07)a | Ending Account Value (2/29/08)a | Annualized Expense Ratio | Expenses Paid Periodb | |||||
Chile | |||||||||
Actual | $1,000.00 | $1,001.00 | 0.63 | % | $1.88 | ||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,021.70 | 0.63 | 3.17 | |||||
Hong Kong | |||||||||
Actual | 1,000.00 | 1,063.30 | 0.51 | 2.62 | |||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,022.30 | 0.51 | 2.56 | |||||
Japan Small Cap | |||||||||
Actual | 1,000.00 | 982.20 | 0.51 | 0.98 | |||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,022.30 | 0.51 | 2.56 | |||||
Malaysia | |||||||||
Actual | 1,000.00 | 1,200.20 | 0.51 | 2.79 | |||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,022.30 | 0.51 | 2.56 | |||||
Mexico | |||||||||
Actual | 1,000.00 | 973.60 | 0.51 | 2.50 | |||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,022.30 | 0.51 | 2.56 | |||||
Pacific ex-Japan | |||||||||
Actual | 1,000.00 | 1,030.30 | 0.50 | 2.52 | |||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,022.40 | 0.50 | 2.51 | |||||
Singapore | |||||||||
Actual | 1,000.00 | 981.80 | 0.51 | 2.51 | |||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,022.30 | 0.51 | 2.56 | |||||
South Africa | |||||||||
Actual | 1,000.00 | 994.10 | 0.63 | 3.12 | |||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,021.70 | 0.63 | 3.17 | |||||
South Korea | |||||||||
Actual | 1,000.00 | 930.00 | 0.63 | 3.02 | |||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,021.70 | 0.63 | 3.17 | |||||
Taiwan | |||||||||
Actual | 1,000.00 | 1,001.70 | 0.64 | 3.19 | |||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,021.70 | 0.64 | 3.22 |
a | Account values are based on a start date of November 12, 2007 (commencement of operations) for the iShares MSCI BRIC Index Fund and iShares MSCI Chile Index Fund and a start date of December 20, 2007 (commencement of operations) for the iShares MSCI Japan Small Cap Index Fund. |
b | Except for the actual expenses for the iShares MSCI BRIC Index Fund, iShares MSCI Chile Index Fund and iShares MSCI Japan Small Cap Index Fund, actual and hypothetical 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 (182 days) and divided by the number of days in the year (366 days). Actual expenses for the iShares MSCI BRIC Index Fund and iShares MSCI Chile Index Fund, which commenced operations on November 12, 2007, 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 (109 days) and divided by the number of days in the year (366 days). Actual expenses for the iShares MSCI Japan Small Cap Index Fund, which commenced operations on December 20, 2007, 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 (71 days) and divided by the number of days in the year (366 days). |
16 | 2008 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited)
iSHARES® MSCI AUSTRALIA INDEX FUND
February 29, 2008
Security | Shares | Value | |||
COMMON STOCKS – 98.92% | |||||
AIRLINES – 0.44% | |||||
Qantas Airways Ltd. | 1,638,568 | $ | 6,468,064 | ||
6,468,064 | |||||
APPAREL – 0.23% | |||||
Billabong International Ltd. | 289,699 | 3,414,404 | |||
3,414,404 | |||||
BANKS – 22.81% | |||||
Australia and New Zealand Banking Group Ltd. | 3,222,016 | 66,305,223 | |||
Bendigo Bank Ltd. | 447,692 | 4,233,776 | |||
Commonwealth Bank of Australia | 2,272,877 | 89,570,451 | |||
National Australia Bank Ltd. | 2,798,756 | 75,528,041 | |||
St. George Bank Ltd. | 477,046 | 10,620,246 | |||
Suncorp-Metway Ltd. | 1,606,096 | 20,897,580 | |||
Westpac Banking Corp. | 3,215,935 | 70,150,888 | |||
337,306,205 | |||||
BEVERAGES – 1.99% | |||||
Coca-Cola Amatil Ltd. | 922,213 | 8,298,578 | |||
Foster’s Group Ltd. | 3,319,553 | 16,550,236 | |||
Lion Nathan Ltd. | 516,797 | 4,616,584 | |||
29,465,398 | |||||
BIOTECHNOLOGY – 0.49% | |||||
Sonic Healthcare Ltd. | 541,187 | 7,264,348 | |||
7,264,348 | |||||
BUILDING MATERIALS – 1.05% | |||||
Boral Ltd. | 1,041,995 | 5,887,080 | |||
CSR Ltd. | 1,611,366 | 5,094,579 | |||
James Hardie Industries NV | 815,439 | 4,576,570 | |||
15,558,229 | |||||
CHEMICALS – 0.84% | |||||
Incitec Pivot Ltd. | 89,238 | 12,354,037 | |||
12,354,037 | |||||
COMMERCIAL SERVICES – 2.47% | |||||
A.B.C. Learning Centres Ltd. | 656,091 | 1,313,334 | |||
Brambles Ltd. | 2,455,062 | 23,975,095 | |||
Transurban Groupa | 1,869,340 | 11,278,345 | |||
36,566,774 |
Security | Shares | Value | |||
COMPUTERS – 0.44% | |||||
Computershare Ltd. | 812,724 | $ | 6,469,489 | ||
6,469,489 | |||||
DIVERSIFIED FINANCIAL SERVICES – 3.14% | |||||
ASX Ltd. | 294,757 | 11,591,088 | |||
Babcock & Brown Ltd.a | 405,145 | 6,571,385 | |||
Challenger Financial Services Group Ltd.a | 627,907 | 1,292,157 | |||
Macquarie Group Ltd.a | 468,982 | 23,517,944 | |||
Perpetual Ltd.a | 65,853 | 3,387,939 | |||
46,360,513 | |||||
ELECTRIC – 0.54% | |||||
AGL Energy Ltd. | 759,613 | 7,958,070 | |||
7,958,070 | |||||
ENGINEERING & CONSTRUCTION – 1.73% | |||||
Boart Longyear Groupb | 2,329,783 | 4,467,522 | |||
Downer EDI Ltd. | 264,445 | 1,541,064 | |||
Leighton Holdings Ltd.a | 242,545 | 10,436,323 | |||
WorleyParsons Ltd. | 258,534 | 9,078,400 | |||
25,523,309 | |||||
ENTERTAINMENT – 1.73% | |||||
Aristocrat Leisure Ltd. | 609,479 | 5,929,109 | |||
Tabcorp Holdings Ltd. | 905,304 | 12,922,494 | |||
Tatts Group Ltd. | 1,854,267 | 6,781,822 | |||
25,633,425 | |||||
FOOD – 4.11% | |||||
Goodman Fielder Ltd. | 2,285,398 | 4,008,303 | |||
Woolworths Ltd. | 2,093,083 | 56,758,647 | |||
60,766,950 | |||||
FOREST PRODUCTS & PAPER – 0.05% | |||||
PaperlinX Ltd. | 388,930 | 771,267 | |||
771,267 | |||||
HEALTH CARE - PRODUCTS – 0.33% | |||||
Cochlear Ltd. | 96,747 | 4,878,701 | |||
4,878,701 | |||||
HOUSEHOLD PRODUCTS & WARES – 0.06% | |||||
Pacific Brands Ltd. | 432,516 | 898,157 | |||
898,157 |
SCHEDULESOF INVESTMENTS | 17 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI AUSTRALIA INDEX FUND
February 29, 2008
Security | Shares | Value | |||
INSURANCE – 5.12% | |||||
AMP Ltd. | 3,232,188 | $ | 24,338,279 | ||
AXA Asia Pacific Holdings Ltd. | 1,470,545 | 7,978,177 | |||
Insurance Australia Group Ltd. | 3,141,432 | 11,078,128 | |||
QBE Insurance Group Ltd. | 1,527,061 | 32,239,278 | |||
75,633,862 | |||||
INVESTMENT COMPANIES – 1.15% | |||||
Macquarie Airports | 1,196,736 | 3,929,188 | |||
Macquarie Communications Infrastructure Group | 374,793 | 1,633,709 | |||
Macquarie Infrastructure Group | 4,211,519 | 11,503,208 | |||
17,066,105 | |||||
IRON & STEEL – 1.46% | |||||
BlueScope Steel Ltd. | 1,282,101 | 13,072,122 | |||
OneSteel Ltd. | 1,278,728 | 8,444,623 | |||
21,516,745 | |||||
LODGING – 0.58% | |||||
Crown Ltd.b | 792,022 | 8,593,946 | |||
8,593,946 | |||||
MANUFACTURING – 3.98% | |||||
Ansell Ltd. | 127,785 | 1,527,595 | |||
Futuris Corp. Ltd. | 524,769 | 986,647 | |||
Orica Ltd. | 530,852 | 14,300,898 | |||
Wesfarmers Ltd. | 939,347 | 33,143,251 | |||
Wesfarmers Ltd. Partially Protected Shares | 249,722 | 8,864,739 | |||
58,823,130 | |||||
MEDIA – 0.51% | |||||
John Fairfax Holdings Ltd. | 2,059,329 | 7,474,030 | |||
7,474,030 | |||||
METAL FABRICATE & HARDWARE – 0.34% | |||||
Sims Group Ltd. | 167,634 | 5,103,998 | |||
5,103,998 | |||||
MINING – 24.14% | |||||
Alumina Ltd. | 1,944,776 | 11,733,475 | |||
BHP Billiton Ltd. | 5,785,439 | 214,195,072 | |||
Fortescue Metals Group Ltd.b | 2,172,520 | 15,952,575 | |||
Iluka Resources Ltd.a | 215,946 | 727,185 | |||
Newcrest Mining Ltd. | 780,478 | 27,771,449 | |||
Oxiana Ltd. | 2,391,861 | 8,882,267 | |||
Paladin Energy Ltd.b | 934,614 | 5,463,987 | |||
Rio Tinto Ltd. | 494,558 | 63,377,509 | |||
Zinifex Ltd. | 850,940 | 8,859,138 | |||
356,962,657 |
Security | Shares | Value | |||
OIL & GAS – 4.89% | |||||
Caltex Australia Ltd. | 236,583 | $ | 3,275,236 | ||
Origin Energy Ltd. | 1,508,758 | 12,489,936 | |||
Santos Ltd. | 1,008,391 | 12,167,911 | |||
Woodside Petroleum Ltd. | 833,054 | 44,416,607 | |||
72,349,690 | |||||
PACKAGING & CONTAINERS – 0.68% | |||||
Amcor Ltd. | 1,510,223 | 10,001,651 | |||
10,001,651 | |||||
PHARMACEUTICALS – 2.19% | |||||
CSL Ltd. | 948,505 | 32,383,953 | |||
32,383,953 | |||||
REAL ESTATE – 7.95% | |||||
CFS Retail Property Trusta | 2,539,541 | 5,036,032 | |||
Commonwealth Property Office Fund | 1,234,747 | 1,501,477 | |||
Dexus Property Group | 5,046,291 | 7,906,503 | |||
Goodman Groupa | 2,505,043 | 10,286,724 | |||
GPT Group | 3,586,685 | 10,735,952 | |||
ING Industrial Funda | 854,467 | 1,670,471 | |||
Lend Lease Corp. Ltd. | 630,075 | 8,180,485 | |||
Mirvac Group | 1,783,180 | 6,438,428 | |||
Stockland Corp. Ltd. | 2,502,868 | 16,505,338 | |||
Westfield Group | 3,014,096 | 49,339,244 | |||
117,600,654 | |||||
REAL ESTATE INVESTMENT TRUSTS – 0.24% | |||||
Macquarie Office Trust | 3,505,656 | 3,557,922 | |||
3,557,922 | |||||
RETAIL – 0.26% | |||||
Harvey Norman Holdings Ltd. | 919,503 | 3,913,469 | |||
3,913,469 | |||||
TELECOMMUNICATIONS – 2.06% | |||||
Telstra Corp. Ltd. | 5,011,061 | 22,827,377 | |||
Telstra Corp. Ltd. Instalment Receipts | 2,488,096 | 7,633,757 | |||
30,461,134 | |||||
TRANSPORTATION – 0.92% | |||||
Asciano Group | 953,117 | 4,430,982 | |||
Toll Holdings Ltd. | 952,836 | 9,135,649 | |||
13,566,631 | |||||
TOTAL COMMON STOCKS | 1,462,666,917 |
18 | 2008 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI AUSTRALIA INDEX FUND
February 29, 2008
Security | Shares | Value | ||||
SHORT-TERM INVESTMENTS – 4.55% |
| |||||
MONEY MARKET FUNDS – 4.55% |
| |||||
Barclays Global Investors Funds | 33,920 | $ | 33,920 | |||
BGI Cash Premier Fund LLC 3.63%c,d,e | 67,181,173 | 67,181,173 | ||||
67,215,093 | ||||||
TOTAL SHORT-TERM INVESTMENTS | 67,215,093 | |||||
TOTAL INVESTMENTS IN SECURITIES – 103.47% | 1,529,882,010 | |||||
Other Assets, Less Liabilities – (3.47)% | (51,269,712 | ) | ||||
NET ASSETS – 100.00% | $ | 1,478,612,298 | ||||
a | All or a portion of this security represents a security on loan. See Note 5. |
b | Non-income earning security. |
c | Affiliated issuer. See Note 2. |
d | The rate quoted is the annualized seven-day yield of the fund at period end. |
e | This security represents an investment of securities lending collateral. See Note 5. |
See notes to financial statements.
SCHEDULESOF INVESTMENTS | 19 |
Table of Contents
Schedule of Investments (Unaudited)
iSHARES® MSCI BRAZIL INDEX FUND
February 29, 2008
Security | Shares | Value | |||
COMMON STOCKS – 43.10% | |||||
AEROSPACE & DEFENSE – 1.10% | |||||
Empresa Brasileira de | 7,375,932 | $ | 82,439,453 | ||
82,439,453 | |||||
AGRICULTURE – 0.63% | |||||
Souza Cruz SA | 1,619,100 | 47,136,779 | |||
47,136,779 | |||||
BANKS – 4.25% | |||||
Banco do Brasil SA | 3,058,300 | 51,128,410 | |||
Banco Nossa Caixa SA | 539,700 | 7,819,426 | |||
Unibanco – Uniao de Bancos Brasileiros SA Units | 19,249,320 | 260,679,733 | |||
319,627,569 | |||||
COMMERCIAL SERVICES – 0.69% | |||||
Companhia de | 2,158,800 | 36,831,094 | |||
Localiza Rent A Car SA | 1,278,230 | 15,042,447 | |||
51,873,541 | |||||
COSMETICS��& PERSONAL CARE – 0.34% | |||||
Natura Cosmeticos SA | 2,518,600 | 25,692,401 | |||
25,692,401 | |||||
DIVERSIFIED FINANCIAL SERVICES – 2.00% | |||||
Bolsa de Mercadorias & | 3,877,900 | 41,347,449 | |||
Bovespa Holding SA | 4,317,600 | 67,661,975 | |||
Redecard SA | 2,698,500 | 41,490,834 | |||
150,500,258 | |||||
ELECTRIC – 1.96% | |||||
Centrais Eletricas | 3,598,099 | 52,918,227 | |||
CPFL Energia SA | 2,319,600 | 50,754,110 | |||
EDP Energias do Brasil SA | 1,259,300 | 19,511,331 | |||
Tractebel Energia SA | 1,978,900 | 24,399,802 | |||
147,583,470 | |||||
FOOD – 0.93% | |||||
Cosan SA Industria e Comercio | 750,590 | 12,827,943 | |||
JBS SAa | 4,214,526 | 16,374,592 | |||
Perdigao SA | 1,666,500 | 40,514,379 | |||
69,716,914 |
Security | Shares | Value | |||
HEALTH CARE - SERVICES – 0.14% | |||||
Diagnosticos da America SA | 539,700 | $ | 10,213,128 | ||
10,213,128 | |||||
HOME BUILDERS – 0.31% | |||||
MRV Engenharia e Participacoes SAa | 992,974 | 23,194,839 | |||
23,194,839 | |||||
INTERNET – 0.50% | |||||
B2W – Companhia Global do Varejo | 899,530 | 37,768,557 | |||
37,768,557 | |||||
IRON & STEEL – 4.32% | |||||
Companhia Siderurgica Nacional | 5,664,252 | 211,362,686 | |||
Gerdau SA | 1,306,900 | 35,937,818 | |||
MMX Mineracao e Metalicos SAa | 77,900 | 41,460,674 | |||
Usinas Siderurgicas de Minas Gerais SA | 599,700 | 35,996,186 | |||
324,757,364 | |||||
MINING – 9.25% | |||||
Companhia Vale do Rio Doce ADR | 19,970,121 | 695,759,016 | |||
695,759,016 | |||||
OIL & GAS – 12.58% | |||||
Petroleo Brasileiro SA | 16,377,837 | 946,253,504 | |||
946,253,504 | |||||
REAL ESTATE – 0.94% | |||||
Cyrela Brazil Realty SA | 2,878,400 | 45,959,077 | |||
Gafisa SAa | 1,279,300 | 25,003,468 | |||
70,962,545 | |||||
RETAIL – 0.57% | |||||
Lojas Renner SA | 2,158,800 | 42,856,840 | |||
42,856,840 | |||||
TELECOMMUNICATIONS – 1.20% | |||||
Brasil Telecom Participacoes SA | 957,482 | 28,169,562 | |||
GVT (Holding) SAa | 980,203 | 21,441,578 | |||
Tele Norte Leste | 1,076,538 | 40,680,531 | |||
90,291,671 |
20 | 2008 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI BRAZIL INDEX FUND
February 29, 2008
Security | Shares | Value | |||
TRANSPORTATION – 0.91% | |||||
ALL – America Latina Logistica SA | 6,116,600 | $ | 68,725,843 | ||
68,725,843 | |||||
WATER – 0.48% | |||||
Companhia de Saneamento Basico do Estado de Sao Paulo | 1,534,000 | 36,467,652 | |||
36,467,652 | |||||
TOTAL COMMON STOCKS | 3,241,821,344 | ||||
PREFERRED STOCKS – 56.60% | |||||
AIRLINES – 0.44% | |||||
Gol Linhas Aereas Inteligentes SA | 739,600 | 12,806,321 | |||
Tam SA | 957,900 | 20,098,339 | |||
32,904,660 | |||||
BANKS – 9.26% | |||||
Banco Bradesco SA | 11,260,200 | 351,589,923 | |||
Banco Bradesco SA Newb | 156,767 | 4,894,913 | |||
Banco do Estado do Rio Grande do Sul SA | 1,516,410 | 8,922,696 | |||
Banco Itau Holding Financeira SA | 13,132,740 | 330,842,534 | |||
696,250,066 | |||||
BEVERAGES – 2.96% | |||||
Companhia de Bebidas das Americas | 2,698,591 | 222,781,374 | |||
222,781,374 | |||||
BUILDING MATERIALS – 0.34% | |||||
Duratex SA | 1,259,300 | 25,692,401 | |||
25,692,401 | |||||
CHEMICALS – 0.96% | |||||
Braskem SA Class A | 2,698,536 | 22,884,096 | |||
Fertilizantes Fosfatados SA | 329,926 | 16,193,884 | |||
Ultrapar Participacoes SA | 882,900 | 32,997,800 | |||
72,075,780 |
Security | Shares | Value | |||
ELECTRIC – 3.46% | |||||
Centrais Eletricas Brasileiras SA Class B | 3,058,300 | $ | 44,852,655 | ||
Companhia Energetica de Minas Gerais | 4,497,500 | 85,641,336 | |||
Companhia Energetica de Sao Paulo Class Ba | 2,358,700 | 66,953,046 | |||
Companhia Paranaense de Energia Class B | 1,799,000 | 29,266,996 | |||
Eletropaulo Metropolitana Electricidade de Sao Paulo SA Class B | 413,770,000 | 33,769,603 | |||
260,483,636 | |||||
FOOD – 0.71% | |||||
Companhia Brasileira de Distribuicao Grupo Pao de Acucar | 573,100 | 12,370,284 | |||
Sadia SA | 7,196,000 | 40,682,295 | |||
53,052,579 | |||||
FOREST PRODUCTS & PAPER – 2.24% | |||||
Aracruz Celulose SA Class B | 7,735,700 | 55,947,730 | |||
Klabin SA | 8,995,000 | 30,426,612 | |||
Suzano Bahia Sul Papel e Celulose SA | 1,699,100 | 26,576,697 | |||
Votorantim Celulose e Papel SA | 1,799,100 | 55,824,232 | |||
168,775,271 | |||||
HOLDING COMPANIES - DIVERSIFIED – 0.91% | |||||
Itausa – Investimentos Itau SA | 10,770,800 | 68,471,969 | |||
68,471,969 | |||||
INVESTMENT COMPANIES – 0.62% | |||||
Bradespar SA | 1,799,000 | 46,810,172 | |||
46,810,172 | |||||
IRON & STEEL – 4.39% | |||||
Gerdau SA | 4,677,473 | 152,854,617 | |||
Metalurgica Gerdau SA | 704,200 | 31,024,778 | |||
Usinas Siderurgicas de Minas Gerais SA Class A | 2,518,600 | 145,962,626 | |||
329,842,021 |
SCHEDULESOF INVESTMENTS | 21 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI BRAZIL INDEX FUND
February 29, 2008
Security | Shares | Value | |||
MEDIA – 0.42% | |||||
Net Servicos de Comunicacao SAa | 2,878,492 | $ | 31,678,732 | ||
31,678,732 | |||||
MINING – 11.35% | |||||
Companhia Vale do Rio Doce Class A | 28,963,900 | 854,015,407 | |||
854,015,407 | |||||
OIL & GAS – 13.91% | |||||
Petroleo Brasileiro SA | 21,725,100 | 1,046,427,791 | |||
1,046,427,791 | |||||
RETAIL – 0.65% | |||||
Lojas Americanas SA | 5,397,000 | 49,150,680 | |||
49,150,680 | |||||
TELECOMMUNICATIONS – 3.85% | |||||
Brasil Telecom Participacoes SA | 3,777,900 | 52,725,275 | |||
Brasil Telecom SA | 2,258,800 | 25,085,904 | |||
Tele Norte Leste Participacoes SA | 3,954,939 | 98,721,452 | |||
Telemar Norte Leste SA Class A | 426,880 | 22,972,253 | |||
Telesp Celular Participacoes SA | 8,095,583 | 48,640,522 | |||
TIM Participacoes SA | 10,074,400 | 41,346,148 | |||
289,491,554 | |||||
TEXTILES – 0.13% | |||||
Companhia de Tecidos Norte de Minas | 1,665,508 | 9,406,033 | |||
9,406,033 | |||||
TOTAL PREFERRED STOCKS | 4,257,310,126 |
Security | Shares | Value | |||
SHORT-TERM INVESTMENTS – 0.18% | |||||
MONEY MARKET FUNDS – 0.18% | |||||
Barclays Global Investors Funds | 13,507,560 | $ | 13,507,560 | ||
13,507,560 | |||||
TOTAL SHORT-TERM INVESTMENTS | 13,507,560 | ||||
TOTAL INVESTMENTS IN | 7,512,639,030 | ||||
Other Assets, Less Liabilities – 0.12% | 8,878,302 | ||||
NET ASSETS – 100.00% | $ | 7,521,517,332 | |||
ADR – American Depositary Receipts
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.
22 | 2008 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited)
iSHARES® MSCI BRIC INDEX FUND
February 29, 2008
Security | Shares | Value | |||
COMMON STOCKS – 80.86% | |||||
BRAZIL – 12.99% | |||||
ALL – America Latina Logistica SA | 21,000 | $ | 235,955 | ||
B2W – Companhia Global do Varejo | 3,000 | 125,961 | |||
Banco do Brasil SA | 18,000 | 300,923 | |||
Bolsa de Mercadorias & Futuros | 15,000 | 159,935 | |||
Bovespa Holding SA | 15,000 | 235,068 | |||
Brasil Telecom Participacoes SA | 3,000 | 88,261 | |||
Centrais Eletricas Brasileiras SA | 15,000 | 220,609 | |||
Companhia de Concessoes Rodoviarias | 9,000 | 153,548 | |||
Companhia Siderurgica Nacional | 18,000 | 671,674 | |||
Companhia Vale do Rio Doce | 69,000 | 2,393,578 | |||
Cosan SA Industria e Comercio | 6,000 | 102,543 | |||
CPFL Energia SA | 6,000 | 131,283 | |||
Cyrela Brazil Realty SA | 12,000 | 191,603 | |||
Empresa Brasileira de | 18,000 | 201,183 | |||
Gafisa SAa | 6,000 | 117,268 | |||
Gerdau SA | 6,000 | 164,991 | |||
GVT (Holding) SAa | 3,000 | 65,624 | |||
JBS SAa | 6,000 | 23,312 | |||
MMX Mineracao e Metalicos SAa | 200 | 106,446 | |||
MRV Engenharia e Participacoes SAa | 3,000 | 70,077 | |||
Perdigao SA | 9,000 | 218,800 | |||
Petroleo Brasileiro SA | 54,000 | 3,119,929 | |||
Redecard SA | 12,000 | 184,506 | |||
Souza Cruz SA | 6,000 | 174,678 | |||
Tele Norte Leste Participacoes SA | 3,000 | 113,365 | |||
Tractebel Energia SA | 12,000 | 147,960 | |||
Unibanco – Uniao de Bancos Brasileiros SA Units | 54,000 | 731,283 | |||
10,450,363 | |||||
CHINA – 32.74% | |||||
Agile Property Holdings Ltd. | 120,000 | 170,577 | |||
Air China Ltd. Class Hb | 180,000 | 174,664 | |||
Alibaba.com Ltd.a,b | 45,000 | 109,078 | |||
Aluminum Corp. of China Ltd. Class H | 180,000 | 363,209 | |||
Angang New Steel Co. Ltd. Class Hb | 60,000 | 161,940 | |||
Bank of China Ltd. Class Hb | 1,050,000 | 450,734 |
Security | Shares | Value | |||
Bank of Communications Co. Ltd. Class H | 330,000 | $ | 405,043 | ||
Beijing Capital International Airport Co. Ltd. Class H | 60,000 | 64,699 | |||
BYD Co. Ltd. Class Hb | 54,600 | 103,437 | |||
Chaoda Modern Agriculture (Holdings) Ltd. | 120,150 | 136,972 | |||
China Agri-Industries Holdings Ltda | 180,000 | 133,716 | |||
China CITIC Bank Class Ha,b | 330,000 | 183,224 | |||
China Coal Energy Co. Class H | 180,000 | 408,552 | |||
China Communications | 240,000 | 640,049 | |||
China Construction Bank Class H | 1,350,000 | 1,049,719 | |||
China COSCO Holdings Co. Ltd. Class H | 150,000 | 454,011 | |||
China Eastern Airlines Corp. Ltd. Class Ha | 60,000 | 38,866 | |||
China Everbright Pacific Ltd.a,b | 60,000 | 141,890 | |||
China High Speed Transmission Equipment Group Co. Ltd.a | 30,000 | 55,060 | |||
China Life Insurance Co. Ltd. Class H | 360,000 | 1,455,148 | |||
China Mengniu Dairy Co. Ltd. | 60,000 | 165,025 | |||
China Merchants Bank Co. Ltd. Class H | 150,000 | 535,945 | |||
China Merchants Holdings (International) Co. Ltd. | 60,000 | 330,821 | |||
China Mobile Ltd. | 300,000 | 4,626,863 | |||
China National Building Material Co. Ltd. Class H | 60,000 | 193,943 | |||
China Netcom Group Corp. (Hong Kong) Ltd. | 75,000 | 237,609 | |||
China Oilfield Services Ltd. | 120,000 | 240,597 | |||
China Overseas Land & Investment Ltd. | 240,000 | 477,492 | |||
China Petroleum & Chemical Corp. Class H | 840,000 | 955,447 | |||
China Railway Group Ltd. | 150,000 | 179,291 | |||
China Resources Enterprises Ltd. | 60,000 | 217,848 | |||
China Resources Land Ltd. | 120,000 | 226,099 | |||
China Resources Power Holdings Co. Ltd. | 120,000 | 305,064 | |||
China Shenhua Energy Co. Ltd. Class H | 165,000 | 865,223 |
SCHEDULESOF INVESTMENTS | 23 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI BRIC INDEX FUND
February 29, 2008
Security | Shares | Value | |||
China Shipping Development Co. Ltd. Class H | 60,000 | $ | 191,629 | ||
China Telecom Corp. Ltd. | 540,000 | 412,947 | |||
China Travel International Investment Hong Kong Ltd. | 300,000 | 165,796 | |||
China Unicom Ltd. | 180,000 | 396,522 | |||
CITIC Pacific Ltd. | 30,000 | 165,603 | |||
CNOOC Ltd. | 780,000 | 1,345,337 | |||
Country Garden Holdings Co.a | 180,000 | 170,731 | |||
Datang International Power Generation Co. Ltd. Class H | 180,000 | 124,000 | |||
Denway Motors Ltd. | 240,000 | 124,000 | |||
Dongfeng Motor Group Co. Ltd. Class H | 180,000 | 112,433 | |||
GOME Electrical Appliances Holdings Ltd. | 90,000 | 201,269 | |||
Guangdong Investment Ltd. | 180,000 | 97,395 | |||
Guangshen Railway Co. Ltd. Class H | 60,000 | 39,714 | |||
Guangzhou Investment Co. Ltd. | 300,000 | 72,102 | |||
Guangzhou R&F Properties Co. Ltd. Class Hb | 60,000 | 187,773 | |||
Harbin Power Equipment Co. Ltd. Class H | 60,000 | 136,801 | |||
Hengan International Group Co. Ltd. Class Hb | 60,000 | 239,055 | |||
Hopson Development Holdings Ltd.b | 60,000 | 102,716 | |||
Huaneng Power International Inc. | 120,000 | 100,557 | |||
Hunan Non-Ferrous Metals Corp. Ltd. Class H | 60,000 | 31,386 | |||
Industrial and Commercial Bank of China Class H | 1,830,000 | 1,303,002 | |||
Jiangsu Expressway Co. Ltd. Class H | 120,000 | 115,209 | |||
Jiangxi Copper Co. Ltd. Class Hb | 90,000 | 216,074 | |||
KWG Property Holding Ltd.a | 60,000 | 60,458 | |||
Lenovo Group Ltd. | 180,000 | 124,925 | |||
Li Ning Co. Ltd.b | 60,000 | 189,701 | |||
Maanshan Iron & Steel Co. Ltd. Class Hb | 120,000 | 76,806 | |||
Nine Dragons Paper Holdings Ltd. | 90,000 | 161,940 | |||
PetroChina Co. Ltd. Class H | 960,000 | 1,460,855 |
Security | Shares | Value | |||
PICC Property & Casualty Co. Ltd. Class Hb | 180,000 | $ | 195,716 | ||
Ping An Insurance (Group) Co. of China Ltd. Class H | 75,000 | 586,069 | |||
Shanghai Electric Group Corp. Class H | 180,000 | 131,403 | |||
Shanghai Industrial Holdings Ltd.b | 30,000 | 124,347 | |||
Shimao Property Holdings Ltd. | 90,000 | 185,537 | |||
Sinofert Holdings Ltd.b | 120,000 | 122,303 | |||
Sinopec Shanghai Petrochemical Co. Ltd. Class H | 60,000 | 29,072 | |||
Yanzhou Coal Mining Co. Ltd. Class H | 120,000 | 203,582 | |||
Zhejiang Expressway Co. Ltd. Class H | 120,000 | 120,607 | |||
Zijin Mining Group Co. Ltd. Class H | 180,000 | 246,612 | |||
26,329,839 | |||||
INDIA – 14.64% | |||||
Ambuja Cements Ltd. SP GDR | 110,820 | 334,676 | |||
Dr. Reddy’s Laboratories Ltd. ADR | 56,310 | 805,796 | |||
HDFC Bank Ltd. ADR | 10,080 | 1,099,829 | |||
Hindalco Industries Ltd. GDR Reg Sc | 136,440 | 659,005 | |||
ICICI Bank Ltd. SP ADR | 33,450 | 1,734,048 | |||
Infosys Technologies Ltd. SP ADR | 42,450 | 1,652,154 | |||
MahanagarTelephone Nigam Ltd. ADR | 71,190 | 434,971 | |||
Reliance Industries Ltd. GDRc | 23,790 | 2,896,432 | |||
Satyam Computer Services Ltd. ADR | 42,870 | 1,070,893 | |||
Tata Communications Ltd. ADR | 15,660 | 388,368 | |||
Wipro Ltd. ADR | 60,720 | 700,709 | |||
11,776,881 | |||||
RUSSIA – 20.49% | |||||
Comstar United Telesystems GDR | 16,200 | 160,380 | |||
JSC MMC Norilsk Nickel ADR | 42,840 | 1,257,354 | |||
LUKOIL SP ADR | 23,520 | 1,749,888 | |||
Mechel OAO ADR | 1,770 | 233,729 | |||
Mobile TeleSystems SP ADR | 9,000 | 738,540 | |||
Novolipetsk Steel GDR Reg S | 4,380 | 200,692 | |||
OAO Gazprom SP ADR Reg S | 118,598 | 6,024,778 | |||
OAO NOVATEK SP GDR | 4,590 | 349,758 | |||
OAO Rosneft Oil Co. GDR | 64,290 | 525,892 | |||
OAO Tatneft SP ADR Reg S | 3,270 | 410,385 | |||
Pharmstandard GDRa | 1,500 | 41,550 |
24 | 2008 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI BRIC INDEX FUND
February 29, 2008
Security | Shares | Value | |||
PIK Group GDR Reg Sa | 3,000 | $ | 85,500 | ||
Polyus Gold SP ADR | 3,300 | 181,500 | |||
RAO Unified Energy System of Russia GDR Reg Sa | 5,760 | 671,040 | |||
Rostelecom SP ADR | 3,000 | 205,050 | |||
Sberbank GDR Reg S | 4,320 | 1,642,827 | |||
Severstal GDR Reg S | 9,930 | 253,215 | |||
Sistema JSFC SP GDR Reg S | 5,250 | 189,000 | |||
Surgutneftegaz SP ADR | 8,160 | 375,768 | |||
TMK OAO GDR Reg S | 2,970 | 102,465 | |||
Vimpel-Communications SP ADR | 23,220 | 806,431 | |||
VTB Bank OJSC GDR Reg Sa | 25,500 | 191,250 | |||
Wimm-Bill-Dann Foods OJSC ADR | 780 | 82,103 | |||
16,479,095 | |||||
TOTAL COMMON STOCKS | 65,036,178 | ||||
PREFERRED STOCKS – 18.96% | |||||
BRAZIL – 18.96% | |||||
Aracruz Celulose SA Class B | 15,000 | 108,486 | |||
Banco Bradesco SA | 51,000 | 1,592,430 | |||
Banco Bradesco SA Newd | 305 | 9,523 | |||
Banco do Estado do Rio Grande do Sul SA | 3,000 | 17,652 | |||
Banco Itau Holding Financeira SA | 48,000 | 1,209,225 | |||
Bradespar SA | 18,000 | 468,362 | |||
Brasil Telecom Participacoes SA | 15,000 | 209,344 | |||
Brasil Telecom SA | 6,000 | 66,635 | |||
Braskem SA Class A | 9,000 | 76,322 | |||
Centrais Eletricas Brasileiras SA Class B | 9,000 | 131,993 | |||
Companhia de Bebidas das Americas | 9,000 | 742,992 | |||
Companhia Energetica de Minas Gerais | 12,000 | 228,504 | |||
Companhia Energetica de Sao Paulo Class Ba | 9,000 | 255,470 | |||
Companhia Paranaense de Energia Class B | 6,000 | 97,611 | |||
Companhia Vale do Rio Doce Class A | 96,000 | 2,830,609 | |||
Duratex SA | 6,000 | 122,413 | |||
Eletropaulo Metropolitana Electricidade de Sao Paulo SA Class B | 600,000 | 48,969 | |||
Fertilizantes Fosfatados SA | 750 | 36,812 |
Security | Shares | Value | ||||
Gerdau SA | 15,000 | $ | 490,183 | |||
Gol Linhas Aereas Inteligentes SA | 3,000 | 51,946 | ||||
Itausa – Investimentos Itau SA | 90,000 | 572,147 | ||||
Klabin SA | 30,000 | 101,478 | ||||
Lojas Americanas SA | 18,000 | 163,927 | ||||
Metalurgica Gerdau SA | 3,000 | 132,170 | ||||
Net Servicos de Comunicacao SAa | 12,000 | 132,064 | ||||
Petroleo Brasileiro SA | 78,000 | 3,757,008 | ||||
Sadia SA | 30,000 | 169,604 | ||||
Tam SA | 3,000 | 62,945 | ||||
Tele Norte Leste Participacoes SA | 12,000 | 299,539 | ||||
Telemar Norte Leste SA Class A | 3,000 | 161,443 | ||||
Telesp Celular Participacoes SA | 30,000 | 180,248 | ||||
TIM Participacoes SA | 27,000 | 110,810 | ||||
Usinas Siderurgicas de Minas Gerais SA Class A | 9,000 | 521,585 | ||||
Votorantim Celulose e Papel SA | 3,000 | 93,087 | ||||
15,253,536 | ||||||
TOTAL PREFERRED STOCKS | 15,253,536 | |||||
SHORT-TERM INVESTMENTS – 1.84% |
| |||||
MONEY MARKET FUNDS – 1.84% |
| |||||
Barclays Global Investors Funds | 71,757 | 71,757 | ||||
BGI Cash Premier Fund LLC | 1,406,050 | 1,406,050 | ||||
1,477,807 | ||||||
TOTAL SHORT-TERM | 1,477,807 | |||||
TOTAL INVESTMENTS IN | 81,767,521 | |||||
Other Assets, Less Liabilities – (1.66)% | (1,335,544 | ) | ||||
NET ASSETS – 100.00% | $ | 80,431,977 | ||||
SCHEDULESOF INVESTMENTS | 25 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI BRIC INDEX FUND
February 29, 2008
ADR – American Depositary Receipts
GDR – Global Depositary Receipts
SP ADR – Sponsored American Depositary Receipts
SP GDR – Sponsored 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 | This security may be resold to qualified institutional buyers under Rule 144A of the Securities Act of 1933. |
d | Security valued at fair value in accordance with procedures approved by the Board of Directors. See Note 1. |
e | Affiliated issuer. See Note 2. |
f | The rate quoted is the annualized seven-day yield of the fund at period end. |
g | This security represents an investment of securities lending collateral. See Note 5. |
See notes to financial statements.
26 | 2008 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited)
iSHARES® MSCI CANADA INDEX FUND
February 29, 2008
Security | Shares | Value | |||
COMMON STOCKS – 99.74% | |||||
ADVERTISING – 0.18% | |||||
Aeroplan Income Fund | 146,786 | $ | 3,034,936 | ||
Aeroplan Income Fund (U.S.)a | 16,282 | 336,645 | |||
3,371,581 | |||||
AEROSPACE & DEFENSE – 0.27% | |||||
CAE Inc. | 411,072 | 5,204,506 | |||
5,204,506 | |||||
AIRLINES – 0.01% | |||||
Jazz Air Income Funda | 20,078 | 163,387 | |||
163,387 | |||||
APPAREL – 0.37% | |||||
Gildan Activewear Inc.b | 185,681 | 7,020,387 | |||
7,020,387 | |||||
AUTO PARTS & EQUIPMENT – 0.56% | |||||
Magna International Inc. Class A | 144,923 | 10,680,562 | |||
10,680,562 | |||||
BANKS – 16.79% | |||||
Bank of Montreal | 815,852 | 41,400,699 | |||
Bank of Nova Scotia | 1,609,531 | 78,537,356 | |||
Canadian Imperial | 617,418 | 42,104,705 | |||
National Bank of Canada | 257,315 | 12,763,286 | |||
Royal Bank of Canada | 2,111,746 | 106,492,888 | |||
Toronto-Dominion Bank (The) | 588,105 | 39,571,288 | |||
320,870,222 | |||||
BEVERAGES – 0.01% | |||||
Cott Corp.b | 59,009 | 135,563 | |||
135,563 | |||||
CHEMICALS – 5.64% | |||||
Agrium Inc. | 218,836 | 16,275,285 | |||
Methanex Corp. | 162,439 | 4,718,593 | |||
NOVA Chemicals Corp. | 136,518 | 4,177,501 | |||
Potash Corp. of Saskatchewan Inc. | 517,071 | 82,613,100 | |||
107,784,479 | |||||
COAL – 0.63% | |||||
Fording Canadian Coal Trust | 241,680 | 12,000,100 | |||
12,000,100 |
Security | Shares | Value | |||
COMMERCIAL SERVICES – 0.18% | |||||
Ritchie Bros. Auctioneers Inc. | 48,708 | $ | 3,537,969 | ||
3,537,969 | |||||
COMPUTERS – 4.80% | |||||
CGI Group Inc.b | 477,227 | 5,311,185 | |||
Research In Motion Ltd.b | 824,506 | 86,314,683 | |||
91,625,868 | |||||
DIVERSIFIED FINANCIAL SERVICES – 0.83% | |||||
CI Financial Income Fund | 101,939 | 2,404,320 | |||
IGM Financial Inc. | 194,982 | 8,530,711 | |||
TSX Group Inc. | 109,898 | 4,968,637 | |||
15,903,668 | |||||
ELECTRIC – 1.00% | |||||
Fortis Inc. | 250,867 | 7,184,827 | |||
TransAlta Corp. | 331,132 | 11,870,578 | |||
19,055,405 | |||||
ELECTRONICS – 0.06% | |||||
Celestica Inc.b | 165,476 | 1,086,390 | |||
1,086,390 | |||||
ENGINEERING & CONSTRUCTION – 0.57% | |||||
SNC-Lavalin Group Inc. | 247,155 | 10,856,247 | |||
10,856,247 | |||||
FOOD – 0.91% | |||||
George Weston Ltd. | 84,954 | 4,005,693 | |||
Loblaw Companies Ltd. | 177,997 | 5,255,946 | |||
Metro Inc. Class A | 78,672 | 1,697,304 | |||
Saputo Inc. | 233,001 | 6,420,969 | |||
17,379,912 | |||||
FOREST PRODUCTS & PAPER – 0.29% | |||||
Canfor Corp.b | 76,408 | 624,121 | |||
Sino-Forest Corp.b | 254,382 | 4,929,723 | |||
5,553,844 | |||||
GAS – 0.19% | |||||
Canadian Utilities Ltd. Class A | 78,868 | 3,619,682 | |||
3,619,682 | |||||
HAND & MACHINE TOOLS – 0.44% | |||||
Finning International Inc. | 293,595 | 8,318,625 | |||
8,318,625 |
SCHEDULESOF INVESTMENTS | 27 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI CANADA INDEX FUND
February 29, 2008
Security | Shares | Value | |||
HEALTH CARE - SERVICES – 0.18% | |||||
MDS Inc.b | 200,986 | $ | 3,381,917 | ||
3,381,917 | |||||
HOLDING COMPANIES - DIVERSIFIED – 1.90% | |||||
Brookfield Asset Management Inc. Class A | 810,149 | 24,087,746 | |||
Onex Corp. | 166,342 | 5,806,854 | |||
Sherritt International Corp. | 381,086 | 6,459,085 | |||
36,353,685 | |||||
INSURANCE – 10.54% | |||||
Fairfax Financial Holdings Ltd. | 27,781 | 8,506,194 | |||
Great-West Lifeco Inc. | 438,554 | 13,809,481 | |||
ING Canada Inc. | 29,775 | 1,216,051 | |||
Manulife Financial Corp. | 2,532,282 | 98,664,367 | |||
Power Corp. of Canada | 563,825 | 19,809,290 | |||
Power Financial Corp. | 404,204 | 14,853,280 | |||
Sun Life Financial Inc. | 926,773 | 44,616,446 | |||
201,475,109 | |||||
IRON & STEEL – 0.19% | |||||
Gerdau Ameristeel Corp. | 241,629 | 3,594,583 | |||
3,594,583 | |||||
MANUFACTURING – 0.70% | |||||
Bombardier Inc. Class Bb | 2,341,567 | 13,460,305 | |||
13,460,305 | |||||
MEDIA – 3.32% | |||||
Astral Media Inc. Class A | 83,659 | 3,207,469 | |||
Rogers Communications Inc. Class B | 817,879 | 32,442,923 | |||
Shaw Communications Inc. Class B | 567,769 | 11,089,872 | |||
Thomson Corp. | 367,237 | 12,287,479 | |||
Yellow Pages Income Fund | 411,167 | 4,496,221 | |||
63,523,964 | |||||
MINING – 14.11% | |||||
Agnico-Eagle Mines Ltd.b | 224,126 | 15,561,127 | |||
Barrick Gold Corp. | 1,419,887 | 74,227,297 | |||
Cameco Corp. | 567,654 | 22,343,334 | |||
Eldorado Gold Corp.b | 564,103 | 3,933,861 | |||
First Quantum Minerals Ltd. | 110,675 | 10,319,421 | |||
Goldcorp Inc. | 1,154,303 | 50,077,940 | |||
Inmet Mining Corp. | 71,218 | 6,198,307 |
Security | Shares | Value | |||
Ivanhoe Mines Ltd.b | 399,984 | $ | 5,239,733 | ||
Kinross Gold Corp.b | 984,929 | 24,487,463 | |||
Lundin Mining Corp.b | 548,182 | 4,707,178 | |||
Pan American Silver Corp.b | 119,118 | 4,794,396 | |||
Teck Cominco Ltd. Class B | 707,126 | 28,352,908 | |||
Uranium One Inc.b | 376,261 | 1,993,868 | |||
Yamana Gold Inc. | 959,830 | 17,356,125 | |||
269,592,958 | |||||
OIL & GAS – 24.15% | |||||
Addax Petroleum Corp. | 70,162 | 3,223,698 | |||
ARC Energy Trust | 167,458 | 4,028,293 | |||
Canadian Natural Resources Ltd. | 882,563 | 66,467,068 | |||
Canadian Oil Sands Trust | 382,695 | 16,294,039 | |||
EnCana Corp. | 1,228,424 | 94,107,262 | |||
Enerplus Resources Fund | 261,312 | 11,326,010 | |||
Ensign Resource Service Group | 213,223 | 3,988,407 | |||
First Calgary Petroleums Ltd.b | 215,930 | 696,691 | |||
Harvest Energy Trust | 227,476 | 5,595,157 | |||
Husky Energy Inc. | 417,187 | 17,762,608 | |||
Imperial Oil Ltd. | 522,939 | 29,553,475 | |||
Nexen Inc. | 777,666 | 24,376,502 | |||
Niko Resources Ltd. | 71,081 | 6,714,738 | |||
OPTI Canada Inc.b | 316,998 | 5,599,413 | |||
Penn West Energy Trust | 600,576 | 17,034,921 | |||
Petro-Canada | 794,122 | 38,197,966 | |||
Precision Drilling Trust | 99,564 | 2,221,231 | |||
Provident Energy Trust | 394,141 | 4,334,183 | |||
Suncor Energy Inc. | 756,017 | 78,349,730 | |||
Talisman Energy Inc. | 1,713,620 | 29,271,863 | |||
UTS Energy Corp.b | 386,054 | 2,294,093 | |||
461,437,348 | |||||
OIL & GAS SERVICES – 0.18% | |||||
Trican Well Service Ltd. | 200,702 | 3,526,732 | |||
3,526,732 | |||||
PHARMACEUTICALS – 0.18% | |||||
Biovail Corp. | 238,198 | 3,397,617 | |||
3,397,617 | |||||
PIPELINES – 3.10% | |||||
Enbridge Inc. | 571,069 | 23,643,912 | |||
TransCanada Corp. | 881,003 | 35,567,550 | |||
59,211,462 |
28 | 2008 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI CANADA INDEX FUND
February 29, 2008
Security | Shares | Value | |||
REAL ESTATE – 0.40% | |||||
Brookfield Properties Corp. | 354,525 | $ | 6,645,986 | ||
MI Developments Inc. Class A | 39,335 | 919,718 | |||
7,565,704 | |||||
REAL ESTATE INVESTMENT TRUSTS – 0.18% | |||||
RioCan Real Estate | 168,474 | 3,529,800 | |||
3,529,800 | |||||
RETAIL – 1.66% | |||||
Alimentation Couche-Tard Inc. Class B | 229,130 | 3,906,954 | |||
Canadian Tire Corp. Ltd. Class A | 127,925 | 7,996,292 | |||
RONA Inc.b | 189,860 | 2,696,501 | |||
Shoppers Drug Mart Corp. | 334,185 | 17,166,477 | |||
31,766,224 | |||||
SOFTWARE – 0.07% | |||||
Open Text Corp.b | 41,346 | 1,338,658 | |||
1,338,658 | |||||
TELECOMMUNICATIONS – 1.96% | |||||
BCE Inc. | 434,733 | 15,833,088 | |||
Nortel Networks Corp.b | 710,059 | 6,147,948 | |||
TELUS Corp. | 94,262 | 4,323,309 | |||
TELUS Corp. NVS | 247,825 | 11,138,714 | |||
37,443,059 | |||||
TRANSPORTATION – 3.19% | |||||
Canadian National Railway Co. | 803,160 | 42,683,764 | |||
Canadian Pacific Railway Ltd. | 250,997 | 18,334,006 | |||
61,017,770 | |||||
TOTAL COMMON STOCKS | 1,905,785,292 |
Security | Shares | Value | |||
SHORT-TERM INVESTMENTS – 0.09% | |||||
MONEY MARKET FUNDS – 0.09% | |||||
Barclays Global Investors Funds | 1,645,862 | $ | 1,645,862 | ||
1,645,862 | |||||
TOTAL SHORT-TERM | 1,645,862 | ||||
TOTAL INVESTMENTS IN | 1,907,431,154 | ||||
Other Assets, Less Liabilities – 0.17% | 3,230,490 | ||||
NET ASSETS – 100.00% | $ | 1,910,661,644 | |||
NVS – Non-Voting Shares
a | Security valued at fair value in accordance with procedures approved by the Board of Directors. See Note 1. |
b | Non-income earning security. |
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 | 29 |
Table of Contents
Schedule of Investments (Unaudited)
iSHARES® MSCI CHILE INDEX FUND
February 29, 2008
Security | Shares | Value | |||
COMMON STOCKS – 95.06% | |||||
AIRLINES – 3.79% | |||||
Lan Airlines SA | 120,924 | $ | 1,663,933 | ||
1,663,933 | |||||
BANKS – 7.99% | |||||
Banco de Credito e Inversiones | 27,216 | 898,791 | |||
Banco Santander Chile SA | 42,427,134 | 2,129,717 | |||
CorpBanca SA | 72,913,824 | 481,586 | |||
3,510,094 | |||||
BEVERAGES – 3.54% | |||||
Compania Cervecerias Unidas SA | 116,964 | 811,159 | |||
Vina Concha y Toro SA | 367,506 | 743,572 | |||
1,554,731 | |||||
BUILDING MATERIALS – 0.76% | |||||
Cementos Bio Bio SA | 84,906 | 201,886 | |||
Salfacorp SAa | 52,992 | 133,002 | |||
334,888 | |||||
COMPUTERS – 0.64% | |||||
Sonda SA | 211,104 | 283,511 | |||
283,511 | |||||
ELECTRIC – 22.39% | |||||
Almendral SA | 8,415,990 | 939,413 | |||
Colbun SA | 5,377,734 | 846,542 | |||
Empresa Electrica del Norte Grande SAa | 81,324 |
| 125,331 | ||
Empresa Nacional de Electricidad SA | 2,935,530 | 4,200,908 | |||
Enersis SA | 11,680,002 | 3,728,672 | |||
9,840,866 | |||||
FOOD – 9.33% | |||||
Centros Comerciales Sudamericanos SA | 715,320 | 2,945,000 | |||
Distribucion y Servicio D&S SA | 2,342,286 | 1,051,840 | |||
Empresas Iansa SA | 1,346,526 | 102,277 | |||
4,099,117 | |||||
FOREST PRODUCTS & PAPER – 8.24% | |||||
Empresas CMPC SA | 80,424 | 3,072,051 | |||
Masisa SA | 2,585,898 | 549,392 | |||
3,621,443 |
Security | Shares | Value | |||
HEALTH CARE - SERVICES – 0.72% | |||||
Banmedica SA | 249,696 | $ | 317,748 | ||
317,748 | |||||
HOLDING COMPANIES - DIVERSIFIED – 16.27% | |||||
Empresas Copec SA | 407,142 | 6,991,717 | |||
Sigdo Koppers SA | 182,232 | 160,483 | |||
7,152,200 | |||||
INVESTMENT COMPANIES – 1.08% | |||||
Administradora de Fondos de Pensiones Provida SA | 189,576 | 473,721 | |||
473,721 | |||||
IRON & STEEL – 4.79% | |||||
CAP SA | 66,636 | 2,105,252 | |||
2,105,252 | |||||
METAL FABRICATE & HARDWARE – 0.79% | |||||
Madeco SA | 3,065,292 | 347,891 | |||
347,891 | |||||
REAL ESTATE – 0.84% | |||||
Parque Arauco SA | 333,000 | 370,236 | |||
370,236 | |||||
RETAIL – 5.72% | |||||
La Polar SA | 187,596 | 1,179,119 | |||
SACI Falabella SA | 257,094 | 1,335,818 | |||
2,514,937 | |||||
TELECOMMUNICATIONS – 5.55% | |||||
Compania de Telecomunicaciones de Chile SA Class A | 477,378 | 972,182 | |||
Empresa Nacional de Telecomunicaciones SA | 83,358 | 1,468,166 | |||
2,440,348 | |||||
TRANSPORTATION – 1.50% | |||||
Compania SudAmericanade Vapores SAa | 333,900 | 660,875 | |||
660,875 | |||||
WATER – 1.12% | |||||
Inversiones Aguas Metropolitanas SAa | 411,498 | 493,751 | |||
493,751 | |||||
TOTAL COMMON STOCKS |
| 41,785,542 | |||
30 | 2008 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI CHILE INDEX FUND
February 29, 2008
Security | Shares | Value | |||
PREFERRED STOCKS – 4.82% | |||||
CHEMICALS – 4.82% | |||||
Sociedad Quimica y Minera de Chile SA Class B | 108,774 | $ | 2,119,394 | ||
2,119,394 | |||||
TOTAL PREFERRED STOCKS | 2,119,394 | ||||
SHORT-TERM INVESTMENTS – 0.11% | |||||
MONEY MARKET FUNDS – 0.11% | |||||
Barclays Global Investors Funds | 48,379 | 48,379 | |||
48,379 | |||||
TOTAL SHORT-TERM | 48,379 | ||||
TOTAL INVESTMENTS IN | 43,953,315 | ||||
Other Assets, Less Liabilities – 0.01% | 5,060 | ||||
NET ASSETS – 100.00% | $ | 43,958,375 | |||
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 | 31 |
Table of Contents
Schedule of Investments (Unaudited)
iSHARES® MSCI HONG KONG INDEX FUND
February 29, 2008
Security | Shares | Value | |||
COMMON STOCKS – 99.84% | |||||
AIRLINES – 1.02% | |||||
Cathay Pacific Airways Ltd.a | 11,886,000 | $ | 24,808,806 | ||
24,808,806 | |||||
APPAREL – 0.63% | |||||
Yue Yuen Industrial Holdings Ltd.a | 5,094,000 | 15,254,535 | |||
15,254,535 | |||||
BANKS – 11.99% | |||||
Bank of East Asia Ltd. | 11,886,100 | 65,306,983 | |||
BOC Hong Kong (Holdings) Ltd. | 31,413,000 | 78,727,806 | |||
CITIC International Financial Holdings Ltd. | 3,396,000 | 1,732,776 | |||
Hang Seng Bank Ltd.a | 6,282,600 | 121,200,447 | |||
Wing Hang Bank Ltd. | 1,698,000 | 25,075,052 | |||
292,043,064 | |||||
CHEMICALS – 0.95% | |||||
Kingboard Chemical Holdings Co. Ltd. | 5,094,000 | 23,045,478 | |||
23,045,478 | |||||
DISTRIBUTION & WHOLESALE – 7.60% | |||||
Esprit Holdings Ltd. | 8,490,000 | 109,335,081 | |||
Li & Fung Ltd.a | 20,377,000 | 75,949,053 | |||
�� | |||||
185,284,134 | |||||
DIVERSIFIED FINANCIAL SERVICES – 7.46% | |||||
Hong Kong Exchanges and Clearing Ltd.a | 9,339,000 | 181,723,198 | |||
181,723,198 | |||||
ELECTRIC – 6.36% | |||||
CLP Holdings Ltd. | 11,037,200 | 87,240,500 | |||
Hongkong Electric Holdings Ltd. | 11,886,000 | 67,827,032 | |||
155,067,532 | |||||
ENGINEERING & CONSTRUCTION – 3.49% | |||||
Cheung Kong Infrastructure Holdings Ltd.a | 3,396,000 | 13,574,136 | |||
Hong Kong Aircraft Engineering Co. Ltd.a | 679,200 | 15,189,065 | |||
New World Development Co. Ltd.a | 20,376,800 | 56,175,559 | |||
84,938,760 |
Security | Shares | Value | |||
FOOD – 0.71% | |||||
Tingyi (Cayman Islands) | 13,584,000 | $ | 17,371,402 | ||
17,371,402 | |||||
FOREST PRODUCTS & PAPER – 0.39% | |||||
Lee & Man Paper | 3,396,000 | 9,624,106 | |||
9,624,106 | |||||
GAS – 3.71% | |||||
Hong Kong and China Gas Co. Ltd. (The) | 30,564,829 | 90,351,200 | |||
90,351,200 | |||||
HOLDING COMPANIES - DIVERSIFIED – 13.76% | |||||
C C Land Holdings Ltd.a | 4,206,000 | 4,432,689 | |||
Hutchison Whampoa Ltd. | 18,678,800 | 178,129,971 | |||
Melco International Development Ltd.a | 6,792,000 | 9,811,787 | |||
NWS Holdings Ltd. | 1,698,000 | 4,997,552 | |||
Swire Pacific Ltd. Class A | 6,792,000 | 78,782,364 | |||
Wharf Holdings Ltd. (The) | 11,362,500 | 59,071,302 | |||
335,225,665 | |||||
INTERNET – 1.78% | |||||
Tencent Holdings Ltd.a | 6,792,000 | 43,297,565 | |||
43,297,565 | |||||
LODGING – 1.29% | |||||
Shangri-La Asia Ltd.a | 10,190,000 | 31,497,304 | |||
31,497,304 | |||||
MANUFACTURING – 0.30% | |||||
Fosun International Ltd.b | 9,339,000 | 7,393,758 | |||
7,393,758 | |||||
MEDIA – 0.41% | |||||
Television Broadcasts Ltd. | 1,698,000 | 10,038,750 | |||
10,038,750 | |||||
REAL ESTATE – 28.49% | |||||
Cheung Kong (Holdings) Ltd. | 12,683,000 | 193,978,266 | |||
Chinese Estates Holdings Ltd.a | 3,396,000 | 5,071,751 | |||
Hang Lung Development Co. Ltd. | 3,396,000 | 15,887,413 | |||
Hang Lung Properties Ltd. | 18,678,000 | 69,016,406 |
32 | 2008 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI HONG KONG INDEX FUND
February 29, 2008
Security | Shares | Value | |||
Henderson Land Development Co. Ltd.a | 8,490,332 | $ | 67,545,970 | ||
Hopewell Holdings Ltd. | 5,094,000 | 23,634,709 | |||
Hysan Development Co. Ltd.a | 5,094,000 | 14,305,219 | |||
Kerry Properties Ltd.a | 5,094,000 | 34,764,628 | |||
Shui On Land Ltd. | 15,282,000 | 14,887,903 | |||
Shun Tak Holdings Ltd.a | 10,189,000 | 15,269,128 | |||
Sino Land Co. Ltd.a | 13,584,000 | 34,882,474 | |||
Sun Hung Kai Properties Ltd. | 11,194,000 | 199,978,922 | |||
Wheelock and Co. Ltd. | 1,698,000 | 5,052,110 | |||
694,274,899 | |||||
REAL ESTATE INVESTMENT TRUSTS – 1.81% | |||||
Link REIT (The)a | 17,829,000 | 44,133,400 | |||
44,133,400 | |||||
RETAIL – 1.66% | |||||
Belle International Holdings Ltd. | 16,980,000 | 20,906,788 | |||
Giordano International Ltd.a | 6,792,000 | 2,863,226 | |||
Lifestyle International Holdings Ltd.a | 5,094,000 | 13,552,312 | |||
Parkson Retail Group Ltd.a | 300,000 | 3,167,473 | |||
40,489,799 | |||||
SEMICONDUCTORS – 0.47% | |||||
ASM Pacific Technology Ltd.a | 1,698,000 | 11,457,269 | |||
11,457,269 | |||||
TELECOMMUNICATIONS – 2.59% | |||||
Foxconn International | 16,980,000 | 27,148,272 | |||
Hutchison Telecommunications International Ltd. | 11,886,000 | 16,223,493 | |||
PCCW Ltd.a | 33,960,576 | 19,685,013 | |||
63,056,778 | |||||
TRANSPORTATION – 2.97% | |||||
MTR Corp. Ltd.a | 11,886,083 | 44,836,426 | |||
Orient Overseas | 1,698,200 | 10,192,714 | |||
Pacific Basin Shipping Ltd.a | 10,188,000 | 17,415,049 | |||
72,444,189 | |||||
TOTAL COMMON STOCKS | 2,432,821,591 |
Security | Shares | Value | ||||
SHORT-TERM INVESTMENTS – 13.28% |
| |||||
MONEY MARKET FUNDS – 13.28% |
| |||||
Barclays Global Investors Funds | 2,578,688 | $ | 2,578,688 |
| ||
BGI Cash Premier Fund LLC | 320,970,555 |
| 320,970,555 |
| ||
323,549,243 | ||||||
TOTAL SHORT-TERM | 323,549,243 | |||||
TOTAL INVESTMENTS IN | 2,756,370,834 | |||||
Other Assets, Less Liabilities – (13.12)% | (319,726,266 | ) | ||||
NET ASSETS – 100.00% | $ | 2,436,644,568 | ||||
a | All or a portion of this security represents a security on loan. See Note 5. |
b | Non-income earning security. |
c | Affiliated issuer. See Note 2. |
d | The rate quoted is the annualized seven-day yield of the fund at period end. |
e | This security represents an investment of securities lending collateral. See Note 5. |
See notes to financial statements.
SCHEDULESOF INVESTMENTS | 33 |
Table of Contents
Schedule of Investments (Unaudited)
iSHARES® MSCI JAPAN SMALL CAP INDEX FUND
February 29, 2008
Security | Shares | Value | |||
COMMON STOCKS – 99.78% | |||||
ADVERTISING – 0.44% | |||||
Asatsu-DK Inc. | 800 | $ | 25,974 | ||
Moshi Moshi Hotline Inc. | 600 | 16,599 | |||
42,573 | |||||
AEROSPACE & DEFENSE – 0.22% | |||||
Japan Aviation Electronics Industry Ltd. | 2,000 | 21,267 | |||
21,267 | |||||
AGRICULTURE – 0.24% | |||||
Sakata Seed Corp. | 1,800 | 22,944 | |||
22,944 | |||||
APPAREL – 1.36% | |||||
Descente Ltd. | 2,000 | 10,547 | |||
Gunze Ltd. | 4,000 | 18,750 | |||
Japan Wool Textile Co. Ltd. (The) | 2,000 | 17,194 | |||
Katakura Industries Co. Ltd. | 800 | 13,640 | |||
Renown Inc.a | 1,200 | 4,784 | |||
Sanei-International Co. Ltd. | 400 | 5,925 | |||
Sanyo Shokai Ltd. | 2,000 | 10,624 | |||
Tokyo Style Co. Ltd. | 2,000 | 19,115 | |||
Wacoal Holdings Corp. | 2,000 | 30,335 | |||
130,914 | |||||
AUTO MANUFACTURERS – 0.61% | |||||
Kanto Auto Works Ltd. | 1,200 | 16,472 | |||
Nissan Shatai Co. Ltd. | 2,000 | 17,367 | |||
Shinmaywa Industries Ltd. | 2,000 | 6,820 | |||
Toyota Auto Body Co. Ltd. | 1,000 | 17,847 | |||
58,506 | |||||
AUTO PARTS & EQUIPMENT – 3.97% | |||||
Aisan Industry Co. Ltd. | 600 | 6,357 | |||
Akebono Brake Industry Co. Ltd. | 1,800 | 12,207 | |||
Bosch Corp. | 4,000 | 16,829 | |||
Calsonic Kansei Corp. | 4,000 | 16,752 | |||
Exedy Corp. | 800 | 24,283 | |||
FCC Co. Ltd. | 1,000 | 13,746 | |||
Futaba Industrial Co. Ltd. | 1,200 | 29,451 | |||
Kayaba Industry Co. Ltd. | 4,000 | 16,637 | |||
Keihin Corp. | 1,000 | 16,406 | |||
Koito Manufacturing Co. Ltd. | 2,000 | 26,685 | |||
Musashi Seimitsu Industry Co. Ltd. | 600 | 12,564 | |||
Nifco Inc. | 1,000 | 21,853 |
Security | Shares | Value | |||
Nissin Kogyo Co. Ltd. | 800 | $ | 14,401 | ||
Press Kogyo Co. Ltd. | 2,000 | 7,992 | |||
Riken Corp. | 4,000 | 16,752 | |||
Sanden Corp. | 4,000 | 18,981 | |||
Showa Corp. | 1,600 | 14,355 | |||
T. RAD Co. Ltd. | 2,000 | 11,565 | |||
Takata Corp. | 400 | 10,259 | |||
Topre Corp. | 1,600 | 14,831 | |||
Toyo Tire & Rubber Co. Ltd. | 4,000 | 11,219 | |||
TS Tech Co. Ltd. | 400 | 15,292 | |||
Yokohama Rubber Co. Ltd. (The) | 6,000 | 31,468 | |||
380,885 | |||||
BANKS – 12.12% | |||||
Aichi Bank Ltd. (The) | 200 | 15,907 | |||
Akita Bank Ltd. (The) | 6,000 | 25,820 | |||
Awa Bank Ltd. (The) | 6,000 | 32,794 | |||
Bank of Ikeda Ltd. (The) | 600 | 17,175 | |||
Bank of Iwate Ltd. (The) | 400 | 24,821 | |||
Bank of Nagoya Ltd. (The) | 4,000 | 23,323 | |||
Bank of Okinawa Ltd. (The) | 600 | 20,864 | |||
Bank of Saga Ltd. (The) | 4,000 | 12,411 | |||
Bank of the Ryukyus Ltd. | 1,200 | 10,904 | |||
Chiba Kogyo Bank Ltd. (The)a | 1,000 | 12,920 | |||
Chugoku Bank Ltd. (The) | 4,000 | 54,676 | |||
Chukyo Bank Ltd. (The) | 4,000 | 11,335 | |||
Daishi Bank Ltd. (The) | 8,000 | 30,661 | |||
Ehime Bank Ltd. (The) | 6,000 | 20,691 | |||
Eighteenth Bank Ltd. (The) | 6,000 | 21,613 | |||
Fukui Bank Ltd. (The) | 8,000 | 22,823 | |||
Higashi-Nippon Bank Ltd. (The) | 4,000 | 14,024 | |||
Higo Bank Ltd. (The) | 4,000 | 23,515 | |||
Hokkoku Bank Ltd. (The) | 8,000 | 36,117 | |||
Hokuetsu Bank Ltd. (The) | 8,000 | 18,443 | |||
Hyakugo Bank Ltd. (The) | 6,000 | 34,523 | |||
Hyakujushi Bank Ltd. (The) | 6,000 | 29,797 | |||
Iyo Bank Ltd. (The) | 6,000 | 59,248 | |||
Juroku Bank Ltd. (The) | 8,000 | 41,958 | |||
Kagoshima Bank Ltd. (The) | 4,000 | 28,049 | |||
Kansai Urban Banking Corp. | 4,000 | 11,911 | |||
Kanto Tsukuba Bank Ltd. (The) | 1,600 | 8,730 | |||
Keiyo Bank Ltd. (The) | 6,000 | 34,235 | |||
Kiyo Holdings Inc. | 16,000 | 24,744 |
34 | 2008 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI JAPAN SMALL CAP INDEX FUND
February 29, 2008
Security | Shares | Value | |||
Michinoku Bank Ltd. (The) | 6,000 | $ | 17,924 | ||
Mie Bank Ltd. (The) | 2,000 | 9,855 | |||
Minato Bank Ltd. (The) | 4,000 | 7,685 | |||
Miyazaki Bank Ltd. (The) | 6,000 | 24,898 | |||
Musashino Bank Ltd. (The) | 800 | 32,967 | |||
Ogaki Kyoritsu Bank Ltd. (The) | 6,000 | 33,428 | |||
Oita Bank Ltd. (The) | 4,000 | 26,012 | |||
San-in Godo Bank Ltd. (The) | 4,000 | 32,698 | |||
Shiga Bank Ltd. | 6,000 | 38,903 | |||
Shikoku Bank Ltd. (The) | 4,000 | 14,831 | |||
Shonai Bank Ltd. (The) | 2,000 | 4,457 | |||
Tochigi Bank Ltd. (The) | 2,000 | 11,834 | |||
Toho Bank Ltd. (The) | 6,000 | 24,322 | |||
Tokushima Bank Ltd. (The) | 2,000 | 11,066 | |||
Tokyo Tomin Bank Ltd. (The) | 800 | 18,212 | |||
Yachiyo Bank Ltd. (The) | 4 | 16,330 | |||
Yamagata Bank Ltd. (The) | 4,000 | 22,324 | |||
Yamaguchi Financial Group Inc. | 6,000 | 67,259 | |||
Yamanashi Chuo Bank Ltd. (The) | 4,000 | 23,284 | |||
1,162,321 | |||||
BEVERAGES – 0.55% | |||||
Kagome Co. Ltd. | 1,600 | 27,910 | |||
Takara Holdings Inc. | 4,000 | 24,514 | |||
52,424 | |||||
BIOTECHNOLOGY – 0.20% | |||||
AnGes MG Inc.a | 2 | 8,856 | |||
Takara Bio Inc.a | 4 | 10,297 | |||
19,153 | |||||
BUILDING MATERIALS – 1.41% | |||||
Central Glass Co. Ltd. | 6,000 | 26,973 | |||
Nichias Corp. | 2,000 | 9,087 | |||
Rinnai Corp. | 1,000 | 31,315 | |||
Sanwa Holdings Corp. | 6,000 | 29,509 | |||
Sumitomo Osaka Cement Co. Ltd. | 10,000 | 20,748 | |||
Takara Standard Co. Ltd. | 4,000 | 17,213 | |||
134,845 | |||||
CHEMICALS – 4.97% | |||||
Adeka Corp. | 2,400 | 24,391 | |||
Aica Kogyo Co. Ltd. | 2,000 | 18,289 | |||
Air Water Inc. | 4,000 | 42,303 | |||
Arisawa Manufacturing Co. Ltd. | 1,000 | 7,925 |
Security | Shares | Value | |||
Chugoku Marine Paints Ltd. | 2,000 | $ | 16,695 | ||
Dainichiseika Color & Chemicals Manufacturing Co. Ltd. | 2,000 | 7,685 | |||
Earth Chemical Co. Ltd. | 400 | 10,124 | |||
Fujimi Inc. | 400 | 5,298 | |||
Ishihara Sangyo Kaisha Ltd.a | 8,000 | 18,212 | |||
Lintec Corp. | 1,000 | 15,504 | |||
Nihon Nohyaku Co. Ltd. | 2,000 | 14,255 | |||
Nihon Parkerizing Co. Ltd. | 2,000 | 28,183 | |||
Nippon Carbon Co. Ltd. | 2,000 | 8,030 | |||
Nippon Kayaku Co. Ltd. | 4,000 | 24,091 | |||
Nippon Paint Co. Ltd. | 6,000 | 23,515 | |||
Nippon Soda Co. Ltd. | 4,000 | 14,178 | |||
Nippon Synthetic Chemical Industry Co. Ltd. (The) | 2,000 | 12,084 | |||
NOF Corp. | 4,000 | 15,830 | |||
Sakai Chemical Industry Co. Ltd. | 2,000 | 8,146 | |||
Sumitomo Bakelite Co. Ltd. | 6,000 | 33,197 | |||
Taiyo Ink Manufacturing Co. Ltd. | 400 | 9,798 | |||
Takasago International Corp. | 2,000 | 16,003 | |||
Toagosei Co. Ltd. | 6,000 | 20,806 | |||
Tokai Carbon Co. Ltd. | 4,000 | 35,042 | |||
Tokyo Ohka Kogyo Co. Ltd. | 1,200 | 25,820 | |||
Toyo Ink Manufacturing Co. Ltd. | 6,000 | 21,094 | |||
476,498 | |||||
COMMERCIAL SERVICES – 2.26% | |||||
Aeon Delight Co. Ltd. | 400 | 8,395 | |||
Daiseki Co. Ltd. | 660 | 19,083 | |||
Goodwill Group Inc. (The)a | 36 | 6,484 | |||
Intelligence Ltd. | 4 | 4,572 | |||
K.K. DaVinci Advisorsa | 26 | 22,452 | |||
Meitec Corp. | 1,000 | 29,682 | |||
Nichii Gakkan Co. | 600 | 8,132 | |||
Nissha Printing Co. Ltd. | 600 | 25,647 | |||
Park 24 Co. Ltd. | 2,200 | 18,977 | |||
Sohgo Security Services Co. Ltd. | 1,400 | 19,553 | |||
So-Net M3 Inc.a | 2 | 8,587 | |||
TIS Inc. | 1,000 | 18,587 | |||
Toppan Forms Co. Ltd. | 1,600 | 17,198 | |||
Zenrin Co. Ltd. | 400 | 9,779 | |||
217,128 |
SCHEDULESOF INVESTMENTS | 35 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI JAPAN SMALL CAP INDEX FUND
February 29, 2008
Security | Shares | Value | |||
COMPUTERS – 0.67% | |||||
DTS Corp. | 800 | $ | 13,548 | ||
Hitachi Information Systems Ltd. | 600 | 11,930 | |||
Net One Systems Co. Ltd. | 14 | 15,331 | |||
NS Solutions Corp. | 600 | 17,290 | |||
Roland DG Corp. | 200 | 6,513 | |||
64,612 | |||||
COSMETICS & PERSONAL CARE – 1.09% | |||||
Aderans Holdings Co. Ltd. | 1,000 | 18,270 | |||
Fancl Corp. | 1,000 | 13,208 | |||
Kose Corp. | 800 | 18,404 | |||
Lion Corp. | 4,000 | 19,211 | |||
Mandom Corp. | 1,200 | 35,272 | |||
104,365 | |||||
DISTRIBUTION & WHOLESALE – 1.83% | |||||
Doshisha Co. Ltd. | 600 | 9,475 | |||
Green Hospital Supply Inc. | 8 | 6,716 | |||
Hanwa Co. Ltd. | 6,000 | 28,241 | |||
Inaba Denki Sangyo Co. Ltd. | 800 | 28,740 | |||
Iwatani International Corp. | 8,000 | 22,669 | |||
Japan Pulp & Paper Co. Ltd. | 2,000 | 7,396 | |||
JFE Shoji Holdings Inc. | 2,000 | 13,333 | |||
Kanematsu Corp.a | 10,000 | 14,409 | |||
Matsuda Sangyo Co. Ltd. | 400 | 11,239 | |||
Nagase & Co. Ltd. | 2,000 | 20,691 | |||
Sumikin Bussan Corp. | 2,000 | 6,743 | |||
Trusco Nakayama Corp. | 400 | 6,125 | |||
175,777 | |||||
DIVERSIFIED FINANCIAL SERVICES – 3.62% | |||||
Aizawa Securities Co. Ltd. | 1,200 | 6,916 | |||
Asset Managers Co. Ltd. | 10 | 9,125 | |||
Fuyo General Lease Co. Ltd. | 400 | 12,103 | |||
Hitachi Credit Corp. | 1,000 | 14,312 | |||
IBJ Leasing Co. Ltd. | 800 | 15,523 | |||
Ichiyoshi Securities Co. Ltd. | 1,200 | 12,772 | |||
Jaccs Co. Ltd. | 4,000 | 17,175 | |||
Japan Securities Finance Co. Ltd. | 2,200 | 16,589 | |||
Kenedix Inc. | 14 | 18,962 | |||
Marusan Securities Co. Ltd. | 1,800 | 16,633 | |||
Mitsubishi UFJ NICOS Co. Ltd.a | 10,000 | 28,049 | |||
Mizuho Investors Securities Co. Ltd. | 8,000 | 11,219 | |||
NIS Group Co. Ltd.a | 2,800 | 4,761 |
Security | Shares | Value | |||
Okasan Holdings Inc. | 4,000 | $ | 22,785 | ||
OMC Card Inc.a | 1,800 | 8,507 | |||
Orient Corp.a | 6,000 | 8,876 | |||
Osaka Securities Exchange Co. Ltd. | 6 | 31,468 | |||
Pacific Management Corp. | 10 | 7,944 | |||
Ricoh Leasing Co. Ltd. | 600 | 13,775 | |||
Risa Partners Inc. | 4 | 8,030 | |||
Secured Capital Japan Co. Ltd. | 4 | 4,611 | |||
SFCG Co. Ltd. | 100 | 12,199 | |||
SPARX Group Co. Ltd. | 22 | 11,412 | |||
Tokai Tokyo Securities Co. Ltd. | 6,000 | 25,647 | |||
Toyo Securities Co. Ltd. | 2,000 | 7,704 | |||
347,097 | |||||
ELECTRIC – 0.17% | |||||
Okinawa Electric Power Co. Inc. (The) | 400 | 16,022 | |||
16,022 | |||||
ELECTRICAL COMPONENTS & | |||||
Funai Electric Co. Ltd. | 600 | 17,175 | |||
GS Yuasa Corp. | 10,000 | 25,263 | |||
Shinko Electric Co. Ltd. | 4,000 | 13,025 | |||
SMK Corp. | 2,000 | 11,988 | |||
Toshiba Tec Corp. | 4,000 | 25,474 | |||
92,925 | |||||
ELECTRONICS – 5.34% | |||||
Anritsu Corp. | 4,000 | 13,141 | |||
Chiyoda Integre Co. Ltd. | 600 | 10,316 | |||
CMK Corp. | 1,400 | 11,323 | |||
Cosel Co. Ltd. | 1,000 | 10,537 | |||
Dainippon Screen | 6,000 | 26,857 | |||
Eizo Nanao Corp. | 400 | 9,721 | |||
Fujitsu General Ltd.a | 2,000 | 7,320 | |||
Furuno Electric Co. Ltd. | 800 | 10,359 | |||
Futaba Corp. | 1,000 | 17,867 | |||
Hamamatsu Photonics K.K. | 1,600 | 49,027 | |||
HORIBA Ltd. | 600 | 20,057 | |||
Hosiden Corp. | 1,200 | 21,083 | |||
JEOL Ltd. | 2,000 | 7,454 | |||
Kaga Electronics Co. Ltd. | 1,000 | 12,728 | |||
Koa Corp. | 1,600 | 10,436 | |||
Kuroda Electric Co. Ltd. | 1,000 | 15,744 | |||
Meiko Electronics Co. Ltd. | 200 | 5,840 |
36 | 2008 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI JAPAN SMALL CAP INDEX FUND
February 29, 2008
Security | Shares | Value | |||
Micronics Japan Co. Ltd. | 400 | $ | 13,333 | ||
Nichicon Corp. | 1,800 | 14,213 | |||
Nihon Dempa Kogyo Co. Ltd. | 400 | 13,602 | |||
Nippon Chemi-Con Corp. | 4,000 | 18,174 | |||
Nitto Kogyo Corp. | 600 | 7,003 | |||
Ryosan Co. Ltd. | 1,200 | 28,817 | |||
Sodick Co. Ltd. | 1,800 | 8,714 | |||
Star Micronics Co. Ltd. | 1,000 | 16,339 | |||
Tamura Corp. | 2,000 | 7,339 | |||
Tokyo Seimitsu Co. Ltd.b | 1,000 | 18,760 | |||
Toyo Corp. | 1,200 | 16,357 | |||
ULVAC Inc. | 800 | 34,580 | |||
Wacom Co. Ltd. | 8 | 18,750 | |||
Yamatake Corp. | 1,400 | 36,041 | |||
511,832 | |||||
ENGINEERING & CONSTRUCTION – 3.30% | |||||
Chudenko Corp. | 600 | 9,095 | |||
COMSYS Holdings Corp. | 4,000 | 32,851 | |||
Japan Airport Terminal Co. Ltd. | 1,200 | 22,673 | |||
Kandenko Co. Ltd. | 2,000 | 10,835 | |||
Kyowa Exeo Corp. | 2,000 | 14,024 | |||
Maeda Corp. | 6,000 | 19,423 | |||
Maeda Road Construction Co. Ltd. | 2,000 | 16,618 | |||
Nippo Corp. | 2,000 | 13,275 | |||
Nishimatsu Construction Co. Ltd. | 8,000 | 20,518 | |||
Okumura Corp. | 4,000 | 17,175 | |||
Penta-Ocean Construction Co. Ltd.a | 7,000 | 9,010 | |||
Shinko Plantech Co. Ltd. | 1,000 | 13,659 | |||
SHO-BOND Holdings Co. Ltd.a | 800 | 9,460 | |||
Taihei Kogyo Co. Ltd. | 2,000 | 8,184 | |||
Taikisha Ltd. | 1,200 | 14,017 | |||
Takasago Thermal Engineering Co. Ltd. | 2,000 | 15,273 | |||
Toda Corp. | 6,000 | 26,224 | |||
Tokyu Construction Co. Ltd. | 2,240 | 6,864 | |||
Toshiba Plant Systems & Services Corp. | 2,000 | 17,963 | |||
Toyo Engineering Corp. | 4,000 | 18,981 | |||
316,122 | |||||
ENTERTAINMENT – 0.88% | |||||
Avex Group Holdings Inc. | 800 | 9,191 | |||
Resorttrust Inc. | 1,000 | 15,311 | |||
Shochiku Co. Ltd. | 2,000 | 13,237 | |||
Toei Co. Ltd. | 2,000 | 11,181 |
Security | Shares | Value | |||
Tokyotokeiba Co. Ltd. | 4,000 | $ | 7,723 | ||
USJ Co. Ltd. | 24 | 15,861 | |||
Yoshimoto Kogyo Co. Ltd. | 1,000 | 12,439 | |||
84,943 | |||||
ENVIRONMENTAL CONTROL – 0.18% | |||||
Asahi Pretec Corp. | 600 | 17,233 | |||
17,233 | |||||
FOOD – 3.54% | |||||
Ariake Japan Co. Ltd. | 600 | 8,046 | |||
Ezaki Glico Co. Ltd. | 2,000 | 21,651 | |||
Fuji Oil Co. Ltd. | 3,000 | 26,454 | |||
House Foods Corp. | 1,800 | 27,509 | |||
Itoham Foods Inc. | 4,000 | 22,170 | |||
J-Oil Mills Inc. | 2,000 | 5,053 | |||
Maruha Nichiro Holdings Inc. | 10,000 | 14,793 | |||
Meiji Seika Kaisha Ltd. | 8,000 | 37,808 | |||
Mitsui Sugar Co. Ltd. | 2,000 | 7,262 | |||
Morinaga & Co. Ltd. | 10,000 | 21,517 | |||
Morinaga Milk Industry Co. Ltd. | 6,000 | 16,022 | |||
Nichirei Corp. | 6,000 | 29,970 | |||
Nippon Beet Sugar Manufacturing Co. Ltd. | 2,000 | 4,361 | |||
Nippon Flour Mills Co. Ltd. | 6,000 | 24,494 | |||
Nippon Suisan Kaisha Ltd. | 5,800 | 22,564 | |||
Nisshin OilliO Group Ltd. (The) | 4,000 | 13,141 | |||
Q.P. Corp. | 2,400 | 23,999 | |||
Snow Brand Milk Products Co. Ltd. | 5,000 | 12,824 | |||
339,638 | |||||
FOREST PRODUCTS & PAPER – 1.12% | |||||
Daio Paper Corp. | 2,000 | 14,466 | |||
Hokuetsu Paper Mills Ltd. | 3,000 | 13,371 | |||
Mitsubishi Paper Mills Ltd. | 8,000 | 15,139 | |||
Rengo Co. Ltd. | 6,000 | 32,794 | |||
Sumitomo Forestry Co. Ltd. | 4,000 | 31,622 | |||
107,392 | |||||
GAS – 0.94% | |||||
Saibu Gas Co. Ltd. | 12,000 | 26,742 | |||
Toho Gas Co. Ltd. | 12,000 | 63,282 | |||
90,024 | |||||
HAND & MACHINE TOOLS – 1.35% | |||||
DISCO Corp. | 600 | 28,759 | |||
Hitachi Koki Co. Ltd. | 1,400 | 20,024 |
SCHEDULESOF INVESTMENTS | 37 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI JAPAN SMALL CAP INDEX FUND
February 29, 2008
Security | Shares | Value | |||
Meidensha Corp. | 4,000 | $ | 9,414 | ||
Mori Seiki Co. Ltd. | 2,000 | 36,694 | |||
OSG Corp. | 2,000 | 20,172 | |||
Union Tool Co. | 400 | 14,485 | |||
129,548 | |||||
HEALTH CARE - PRODUCTS – 2.09% | |||||
Hogy Medical Co. Ltd. | 400 | 18,981 | |||
Nakanishi Inc. | 200 | 24,014 | |||
Nihon Kohden Corp. | 800 | 16,291 | |||
Nipro Corp. | 2,000 | 38,615 | |||
Shimadzu Corp. | 6,000 | 57,576 | |||
Sysmex Corp. | 800 | 32,659 | |||
Topcon Corp. | 1,400 | 12,265 | |||
200,401 | |||||
HOME BUILDERS – 0.22% | |||||
PanaHome Corp. | 2,000 | 12,968 | |||
Token Corp. | 240 | 8,668 | |||
21,636 | |||||
HOME FURNISHINGS – 1.35% | |||||
Alpine Electronics Inc. | 1,200 | 14,397 | |||
Canon Electronics Inc. | 400 | 9,145 | |||
Daiwa Industries Ltd. | 2,000 | 9,414 | |||
Foster Electric Co. Ltd. | 600 | 15,359 | |||
Hitachi Maxell Ltd. | 1,200 | 13,313 | |||
Juki Corp. | 4,000 | 18,174 | |||
Kenwood Corp. | 10,000 | 11,047 | |||
Nidec Sankyo Corp. | 2,000 | 16,579 | |||
Noritz Corp. | 1,000 | 11,037 | |||
Victor Co. of Japan Ltd.a | 6,000 | 11,354 | |||
129,819 | |||||
HOUSEHOLD PRODUCTS & WARES – 0.19% | |||||
Pilot Corp. | 10 | 17,867 | |||
17,867 | |||||
HOUSEWARES – 0.40% | |||||
Noritake Co. Ltd. | 4,000 | 16,868 | |||
Sangetsu Co. Ltd. | 1,000 | 21,805 | |||
38,673 | |||||
INSURANCE – 0.23% | |||||
Nissay Dowa General | 4,000 | 22,170 | |||
22,170 |
Security | Shares | Value | |||
INTERNET – 1.79% | |||||
Access Co. Ltd.a | 6 | $ | 21,901 | ||
CyberAgent Inc. | 12 | 14,639 | |||
Dena Co. Ltd. | 6 | 39,710 | |||
eAccess Ltd. | 32 | 20,902 | |||
En-Japan Inc. | 2 | 4,745 | |||
Index Holdings | 26 | 4,248 | |||
Internet Initiative Japan Inc. | 2 | 6,820 | |||
kabu.Com Securities Co. Ltd. | 10 | 12,295 | |||
Kakaku.Com Inc. | 2 | 11,604 | |||
Monex Beans Holdings Inc. | 24 | 13,809 | |||
Opt Inc. | 4 | 11,873 | |||
So-Net Entertainment Corp. | 2 | 8,760 | |||
171,306 | |||||
IRON & STEEL – 1.61% | |||||
Aichi Steel Corp. | 4,000 | 20,326 | |||
Godo Steel Ltd. | 4,000 | 13,102 | |||
Mitsubishi Steel Manufacturing Co. Ltd. | 4,000 | 14,485 | |||
Nippon Metal Industry Co. Ltd. | 4,000 | 15,062 | |||
Nippon Yakin Kogyo Co. Ltd. | 3,000 | 29,393 | |||
Sanyo Special Steel Co. Ltd. | 4,000 | 24,744 | |||
TOPY Industries Ltd. | 6,000 | 16,426 | |||
Yodogawa Steel Works Ltd. | 4,000 | 20,671 | |||
154,209 | |||||
LEISURE TIME – 1.40% | |||||
Accordia Golf Co. Ltd.a | 16 | 15,000 | |||
Aruze Corp. | 400 | 12,948 | |||
Daiichikosho Co. Ltd. | 1,200 | 11,884 | |||
Fields Corp. | 6 | 8,126 | |||
Heiwa Corp. | 1,000 | 10,134 | |||
HIS Co. Ltd. | 600 | 10,144 | |||
Mizuno Corp. | 2,000 | 13,121 | |||
Pacific Golf Group International | 12 | 11,273 | |||
Roland Corp. | 600 | 12,507 | |||
Round One Corp. | 8 | 9,298 | |||
Tokyo Dome Corp. | 4,000 | 19,596 | |||
134,031 | |||||
LODGING – 0.13% | |||||
Fujita Kanko Inc. | 2,000 | 12,660 | |||
12,660 |
38 | 2008 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI JAPAN SMALL CAP INDEX FUND
February 29, 2008
Security | Shares | Value | |||
MACHINERY – 3.91% | |||||
Aida Engineering Ltd. | 2,000 | $ | 12,046 | ||
CKD Corp. | 1,800 | 12,086 | |||
Daifuku Co. Ltd. | 2,000 | 26,857 | |||
Daihen Corp. | 2,000 | 7,396 | |||
Fuji Machine Manufacturing Co. Ltd. | 1,000 | 22,189 | |||
Furukawa Co. Ltd. | 8,000 | 15,446 | |||
Iseki & Co. Ltd.a | 6,000 | 8,587 | |||
Komori Corp. | 1,400 | 29,720 | |||
Makino Milling Machine Co. Ltd. | 2,000 | 14,639 | |||
Max Co. Ltd. | 2,000 | 23,976 | |||
Miura Co. Ltd. | 800 | 19,135 | |||
Modec Inc. | 400 | 13,371 | |||
Nabtesco Corp. | 2,000 | 27,030 | |||
Nippon Thompson Co. Ltd. | 2,000 | 12,238 | |||
Obara Corp. | 400 | 7,677 | |||
Shima Seiki Manufacturing Ltd. | 600 | 26,166 | |||
Sintokogio Ltd. | 1,600 | 15,446 | |||
Tadano Ltd. | 2,000 | 20,287 | |||
Takeuchi Manufacturing Co. Ltd. | 200 | 5,149 | |||
Toshiba Machine Co. Ltd. | 2,000 | 15,619 | |||
Toyo Kanetsu K.K. | 6,000 | 14,063 | |||
Tsubakimoto Chain Co. | 4,000 | 25,590 | |||
374,713 | |||||
MANUFACTURING – 1.96% | |||||
Amano Corp. | 2,000 | 23,323 | |||
ARRK Corp. | 2,000 | 7,492 | |||
Glory Ltd. | 1,400 | 32,410 | |||
Kureha Corp. | 6,000 | 36,367 | |||
Nikkiso Co. Ltd. | 2,000 | 13,256 | |||
Nitta Corp. | 800 | 12,533 | |||
Noritsu Koki Co. Ltd. | 400 | 7,554 | |||
Tamron Co. Ltd. | 400 | 9,817 | |||
Tenma Corp. | 1,000 | 14,841 | |||
Tokai Rubber Industries Ltd. | 800 | 12,726 | |||
Toyo Tanso Co. Ltd. | 200 | 17,540 | |||
187,859 | |||||
MEDIA – 0.35% | |||||
Kadokawa Group Holdings Inc. | 600 | 13,486 | |||
SKY Perfect JSAT Corp. | 38 | 11,370 | |||
Usen Corp. | 1,440 | 8,534 | |||
33,390 |
Security | Shares | Value | |||
METAL FABRICATE & HARDWARE – 1.86% | |||||
Ahresty Corp. | 600 | $ | 7,665 | ||
Kitz Corp. | 2,000 | 11,392 | |||
Maruichi Steel Tube Ltd. | 1,200 | 36,079 | |||
Misumi Group Inc. | 2,000 | 32,333 | |||
Nachi-Fujikoshi Corp. | 6,000 | 21,613 | |||
Neturen Co. Ltd. | 1,400 | 14,806 | |||
Ryobi Ltd. | 4,000 | 17,021 | |||
Tocalo Co. Ltd. | 600 | 10,593 | |||
Toho Zinc Co. Ltd. | 4,000 | 27,242 | |||
178,744 | |||||
MINING – 1.31% | |||||
Mitsui Mining Co. Ltd.a | 3,000 | 10,778 | |||
Nippon Denko Co. Ltd. | 2,000 | 18,712 | |||
Nippon Light Metal Co. Ltd. | 14,000 | 22,055 | |||
Nittetsu Mining Co. Ltd. | 2,000 | 13,390 | |||
Pacific Metals Co. Ltd. | 4,000 | 49,373 | |||
Sumitomo Light Metal Industries Ltd. | 8,000 | 11,066 | |||
125,374 | |||||
OFFICE & BUSINESS EQUIPMENT – 0.11% | |||||
Canon Finetech Inc. | 800 | 10,205 | |||
10,205 | |||||
OFFICE FURNISHINGS – 0.46% | |||||
Itoki Corp. | 1,400 | 8,889 | |||
Kokuyo Co. Ltd. | 2,400 | 19,849 | |||
Okamura Corp. | 2,000 | 15,292 | |||
44,030 | |||||
OIL & GAS – 0.11% | |||||
AOC Holdings Inc. | 1,000 | 10,566 | |||
10,566 | |||||
PACKAGING & CONTAINERS – 0.17% | |||||
FP Corp. | 400 | 10,624 | |||
Fuji Seal International Inc. | 400 | 5,906 | |||
16,530 | |||||
PHARMACEUTICALS – 3.30% | |||||
Hisamitsu Pharmaceutical Co. Inc. | 1,600 | 51,486 | |||
Kaken Pharmaceutical Co. Ltd. | 2,000 | 16,041 | |||
Kobayashi Pharmaceutical Co. Ltd. | 600 | 23,745 | |||
Miraca Holdings Inc. | 1,200 | 25,993 | |||
Mochida Pharmaceutical Co. Ltd. | 2,000 | 19,711 | |||
Nichi-Iko Pharmaceutical Co. Ltd. | 600 | 15,907 |
SCHEDULESOF INVESTMENTS | 39 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI JAPAN SMALL CAP INDEX FUND
February 29, 2008
Security | Shares | Value | |||
Nippon Shinyaku Co. Ltd. | 2,000 | $ | 20,306 | ||
Rohto Pharmaceutical Co. Ltd. | 2,000 | 24,033 | |||
Sawai Pharmaceutical Co. Ltd.b | 400 | 18,712 | |||
Seikagaku Corp. | 1,000 | 10,701 | |||
Toho Pharmaceutical Co. Ltd. | 800 | 17,751 | |||
Towa Pharmaceutical Co. Ltd. | 200 | 9,260 | |||
Toyama Chemical Co. Ltd.a,b | 4,000 | 33,620 | |||
Tsumura & Co. | 1,400 | 29,182 | |||
316,448 | |||||
REAL ESTATE – 1.42% | |||||
Ardepro Co. Ltd. | 34 | 4,977 | |||
Arealink Co. Ltd. | 18 | 1,432 | |||
Atrium Co. Ltd. | 400 | 7,389 | |||
Creed Corp. | 4 | 5,456 | |||
Daibiru Corp. | 1,000 | 9,510 | |||
Daikyo Inc. | 4,000 | 9,721 | |||
Goldcrest Co. Ltd. | 420 | 11,599 | |||
Heiwa Real Estate Co. Ltd. | 4,000 | 20,671 | |||
Idu Co. | 6 | 5,596 | |||
Japan General Estate Co. Ltd. (The) | 1,000 | 9,779 | |||
Joint Corp. | 600 | 7,953 | |||
Shoei Co. Ltd. | 800 | 11,327 | |||
Sumitomo Real Estate Sales Co. Ltd. | 200 | 8,587 | |||
SURUGA CORP. | 600 | 6,824 | |||
TOC Co. Ltd. | 2,000 | 15,465 | |||
136,286 | |||||
REAL ESTATE INVESTMENTTRUSTS – 4.67% | |||||
Creed Office Investment Corp. | 4 | 14,447 | |||
DA Office Investment Corp. | 4 | 18,981 | |||
Frontier Real Estate Investment Corp. | 2 | 14,428 | |||
Fukuoka REIT Corp. | 2 | 12,756 | |||
Global One Real Estate Investment Corp. | 2 | 24,014 | |||
Hankyu REIT Inc. | 2 | 12,910 | |||
Japan Excellent Inc. | 4 | 26,320 | |||
Japan Hotel and Resort Inc. | 4 | 14,063 | |||
Japan Logistics Fund Inc. | 4 | 25,474 | |||
Kenedix Realty Investment Corp. | 4 | 24,514 | |||
MID REIT Inc. | 4 | 14,754 | |||
Mori Hills REIT Investment Corp. | 2 | 13,525 | |||
MORI TRUST Sogo REIT Inc. | 2 | 18,155 | |||
New City Residence Investment Corp. | 4 | 14,716 | |||
Nippon Accommodations Fund Inc. | 2 | 11,469 |
Security | Shares | Value | |||
Nippon Commercial Investment Corp. | 6 | $ | 27,549 | ||
Nippon Residential Investment Corp. | 6 | 23,227 | |||
ORIX JREIT Inc. | 6 | 34,696 | |||
Premier Investment Co. | 4 | 24,168 | |||
TOKYU REIT Inc. | 4 | 33,274 | |||
Top REIT Inc. | 4 | 18,289 | |||
United Urban Investment Corp. | 4 | 25,820 | |||
447,549 | |||||
RETAIL – 8.11% | |||||
ABC-Mart Inc. | 600 | 12,074 | |||
Aoki Holdings Inc. | 600 | 10,806 | |||
Arcs Co. Ltd. | 800 | 10,512 | |||
Askul Corp. | 600 | 12,507 | |||
Autobacs Seven Co. Ltd. | 1,000 | 22,765 | |||
Best Denki Co. Ltd. | 2,000 | 15,965 | |||
Chiyoda Co. Ltd. | 800 | 11,803 | |||
Circle K Sunkus Co. Ltd. | 1,200 | 18,120 | |||
Culture Convenience Club Co. Ltd. | 2,400 | 9,544 | |||
Daiei Inc. (The)a | 1,500 | 9,783 | |||
DCM Japan Holdings Co. Ltd. | 1,800 | 9,613 | |||
Don Quijote Co. Ltd. | 1,200 | 19,411 | |||
Doutor Nichires Holdings Co. Ltd. | 1,200 | 21,751 | |||
Duskin Co. Ltd. | 1,000 | 17,002 | |||
EDION Corp. | 1,800 | 17,878 | |||
GEO Corp. | 6 | 6,224 | |||
Gulliver International Co. Ltd. | 160 | 6,516 | |||
H2O Retailing Corp. | 4,000 | 29,048 | |||
Heiwado Co. Ltd. | 1,000 | 15,628 | |||
Honeys Co. Ltd. | 380 | 6,322 | |||
Izumi Co. Ltd. | 1,400 | 20,226 | |||
Izumiya Co. Ltd. | 4,000 | 19,442 | |||
Joshin Denki Co. Ltd. | 2,000 | 17,290 | |||
Kisoji Co. Ltd. | 400 | 8,242 | |||
Kohnan Shoji Co. Ltd. | 600 | 7,152 | |||
Komeri Co. Ltd. | 800 | 18,866 | |||
K’s Holdings Corp. | 1,000 | 18,145 | |||
Maruetsu Inc. (The)a | 2,000 | 15,465 | |||
Matsumotokiyoshi Co. Ltd.a | 1,200 | 24,494 | |||
Matsuya Co. Ltd. | 800 | 16,868 | |||
McDonald’s Holdings Co. (Japan) Ltd. | 1,200 | 19,492 | |||
Nishimatsuya Chain Co. Ltd. | 1,400 | 13,529 | |||
Nissen Holdings Co. Ltd. | 1,400 | 9,535 |
40 | 2008 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI JAPAN SMALL CAP INDEX FUND
February 29, 2008
Security | Shares | Value | |||
Parco Co. Ltd. | 1,200 | $ | 14,754 | ||
Paris Miki Inc. | 1,000 | 13,765 | |||
Plenus Co. Ltd. | 800 | 9,521 | |||
Point Inc. | 360 | 13,383 | |||
Ryohin Keikaku Co. Ltd. | 600 | 32,102 | |||
Saizeriya Co. Ltd. | 800 | 7,792 | |||
San-A & Co. Ltd. | 200 | 5,418 | |||
Sankyo-Tateyama Holdings Inc. | 10,000 | 12,968 | |||
Seiko Corp. | 2,000 | 10,067 | |||
Senshukai Co. Ltd. | 1,200 | 8,668 | |||
Shimachu Co. Ltd. | 1,000 | 26,079 | |||
St. Marc Holdings Co. Ltd. | 200 | 6,455 | |||
Sugi Pharmacy Co. Ltd. | 600 | 16,310 | |||
Sundrug Co. Ltd. | 800 | 20,402 | |||
Tsuruha Holdings Inc. | 400 | 13,025 | |||
United Arrows Ltd. | 1,000 | 7,963 | |||
Valor Co. Ltd. | 1,000 | 10,605 | |||
Watami Co. Ltd. | 800 | 12,449 | |||
Xebio Co. Ltd. | 600 | 12,795 | |||
Yoshinoya Holdings Co. Ltd. | 12 | 20,172 | |||
Zensho Co. Ltd. | 1,600 | 11,235 | |||
777,946 | |||||
SEMICONDUCTORS – 0.38% | |||||
Mimasu Semiconductor Industry Co. Ltd. | 600 | 11,556 | |||
Sanken Electric Co. Ltd. | 2,000 | 11,988 | |||
Sumco Techxiv Corp. | 200 | 4,803 | |||
United Technology Holdings Co. Ltd. | 4 | 7,953 | |||
36,300 | |||||
SHIPBUILDING – 0.41% | |||||
Hitachi Zosen Corp.a | 16,000 | 16,599 | |||
Namura Shipbuilding Co. Ltd. | 600 | 6,651 | |||
Sasebo Heavy Industries Co. Ltd. | 4,000 | 16,445 | |||
39,695 | |||||
SOFTWARE – 1.60% | |||||
Capcom Co. Ltd. | 1,000 | 27,953 | |||
Fuji Soft ABC Inc. | 800 | 12,449 | |||
Hitachi Software Engineering Co. Ltd. | 800 | 19,211 | |||
INTEC Holdings Ltd. | 1,200 | 17,290 | |||
Koei Co. Ltd. | 600 | 9,948 | |||
Nihon Unisys Ltd. | 1,400 | 17,012 | |||
NSD Co. Ltd. | 1,000 | 14,264 |
Security | Shares | Value | |||
Obic Business Consultants Co. Ltd. | 200 | $ | 11,565 | ||
Sumisho Computer Systems Corp. | 600 | 11,486 | |||
Works Applications Co. Ltd. | 10 | 12,679 | |||
153,857 | |||||
STORAGE & WAREHOUSING – 0.57% | |||||
Mitsui-Soko Co. Ltd. | 4,000 | 22,516 | |||
Shibusawa Warehouse Co. Ltd. (The) | 2,000 | 12,564 | |||
Sumitomo Warehouse Co. Ltd. (The) | 4,000 | 19,634 | |||
54,714 | |||||
TELECOMMUNICATIONS – 1.07% | |||||
Denki Kogyo Co. Ltd. | 2,000 | 11,777 | |||
Hitachi Kokusai Electric Inc. | 2,000 | 22,938 | |||
Invoice Inc. | 240 | 5,268 | |||
Japan Radio Co. Ltd. | 2,000 | 5,706 | |||
Oki Electric Industry Co. Ltd.a,b | 16,000 | 29,048 | |||
Okinawa Cellular Telephone Co. | 4 | 6,839 | |||
Telepark Corp. | 8 | 8,069 | |||
Uniden Corp. | 2,000 | 12,641 | |||
102,286 | |||||
TEXTILES – 0.95% | |||||
Daiwabo Co. Ltd. | 4,000 | 10,220 | |||
Kurabo Industries Ltd. | 6,000 | 12,852 | |||
Nitto Boseki Co. Ltd. | 6,000 | 12,507 | |||
Seiren Co. Ltd. | 1,600 | 10,866 | |||
Toyobo Co. Ltd. | 16,000 | 33,044 | |||
Unitika Ltd. | 12,000 | 12,103 | |||
91,592 | |||||
TOYS, GAMES & HOBBIES – 0.27% | |||||
Sanrio Co. Ltd. | 1,200 | 10,524 | |||
Tomy Co. Ltd. | 2,000 | 15,139 | |||
25,663 | |||||
TRANSPORTATION – 3.92% | |||||
Daiichi Chuo Kisen Kaisha | 4,000 | 29,854 | |||
Fukuyama Transporting Co. Ltd. | 4,000 | 14,716 | |||
Hitachi Transport System Ltd. | 1,000 | 12,343 | |||
Iino Kaiun Kaisha Ltd. | 2,000 | 18,481 | |||
Inui Steamship Co. Ltd. | 400 | 6,182 | |||
Keihan Electric Railway Co. Ltd. | 12,000 | 50,718 | |||
Kintetsu World Express Inc. | 400 | 9,471 | |||
Nagoya Railroad Co. Ltd. | 20,000 | 63,782 | |||
Nippon Konpo Unyu Soko Co. Ltd. | 2,000 | 27,549 |
SCHEDULESOF INVESTMENTS | 41 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI JAPAN SMALL CAP INDEX FUND
February 29, 2008
Security | Shares | Value | ||||
Nishi-Nippon Railroad Co. Ltd. | 8,000 | $ | 29,432 | |||
Sagami Railway Co. Ltd. | 10,000 | 38,615 | ||||
Sankyu Inc. | 6,000 | 29,048 | ||||
Seino Holdings Co. Ltd. | 4,000 | 26,857 | ||||
Shinwa Kaiun Kaisha Ltd. | 2,000 | 13,563 | ||||
Yusen Air & Sea Service Co. Ltd. | 400 | 5,932 | ||||
376,543 | ||||||
VENTURE CAPITAL – 0.11% |
| |||||
Japan Asia Investment Co. Ltd. | 2,000 | 10,643 | ||||
10,643 | ||||||
TOTAL COMMON STOCKS |
| 9,570,693 |
| |||
SHORT-TERM INVESTMENTS – 0.63% |
| |||||
MONEY MARKET FUNDS – 0.63% |
| |||||
Barclays Global Investors Funds | 6,977 |
| 6,977 |
| ||
BGI Cash Premier Fund LLC | 52,980 | 52,980 | ||||
59,957 | ||||||
TOTAL SHORT-TERM |
| 59,957 |
| |||
TOTAL INVESTMENTS IN |
| 9,630,650 |
| |||
Other Assets, Less Liabilities – (0.41)% | (39,036 | ) | ||||
NET ASSETS – 100.00% | $ | 9,591,614 | ||||
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 | The rate quoted is the annualized seven-day yield of the fund at period end. |
e | This security represents an investment of securities lending collateral. See Note 5. |
See notes to financial statements.
42 | 2008 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited)
iSHARES® MSCI MALAYSIA INDEX FUND
February 29, 2008
Security | Shares | Value | |||
COMMON STOCKS – 99.75% | |||||
AGRICULTURE – 14.59% | |||||
Asiatic Development Bhd | 3,205,957 | $ | 9,333,354 | ||
British American Tobacco (Malaysia) Bhd | 2,164,400 | 29,134,200 | |||
IOI Corp. Bhd | 54,264,630 | 136,744,489 | |||
Kuala Lumpur Kepong Bhd | 6,957,000 | 40,289,404 | |||
215,501,447 | |||||
AIRLINES – 0.91% | |||||
AirAsia Bhda | 12,986,400 | 6,341,770 | |||
Malaysian Airline System Bhda | 5,565,600 | 7,178,047 | |||
13,519,817 | |||||
AUTO MANUFACTURERS – 0.53% | |||||
DRB-Hicom Bhd | 5,101,800 | 2,251,851 | |||
Proton Holdings Bhda | 4,328,800 | 5,555,824 | |||
7,807,675 | |||||
AUTO PARTS & EQUIPMENT – 1.42% | |||||
UMW Holdings Bhd | 9,585,200 | 21,003,725 | |||
21,003,725 | |||||
BANKS – 25.07% | |||||
Alliance Financial Group Bhd | 11,285,800 | 10,139,379 | |||
AMMB Holdings Bhd | 26,127,437 | 30,425,439 | |||
Bumiputra-Commerce Holdings Bhd | 41,587,432 | 136,693,704 | |||
Hong Leong Bank Bhd | 7,884,600 | 13,821,806 | |||
Malayan Banking Bhd | 40,041,400 | 114,063,778 | |||
Public Bank Bhd | 17,160,600 | 56,942,357 | |||
RHB Capital Bhd | 5,411,000 | 8,401,490 | |||
370,487,953 | |||||
BEVERAGES – 0.14% | |||||
Guinness Anchor Bhd | 1,265,375 | 2,138,997 | |||
2,138,997 | |||||
BUILDING MATERIALS – 0.61% | |||||
Lafarge Malayan Cement Bhd | 5,565,660 | 9,059,769 | |||
9,059,769 | |||||
COMMERCIAL SERVICES – 1.64% | |||||
PLUS Expressways Bhd | 24,736,000 | 24,159,124 | |||
24,159,124 |
Security | Shares | Value | |||
DIVERSIFIED FINANCIAL SERVICES – 1.74% | |||||
Bursa Malaysia Bhd | 5,101,800 | $ | 18,206,455 | ||
Hong Leong Credit Bhd | 3,555,800 | 5,209,311 | |||
TA Enterprise Bhd | 6,493,200 | 2,276,533 | |||
25,692,299 | |||||
ELECTRIC – 4.91% | |||||
Tenaga Nasional Bhd | 21,334,850 | 60,441,506 | |||
YTL Power International Bhd | 15,305,413 | 12,121,676 | |||
72,563,182 | |||||
ENGINEERING & CONSTRUCTION – 6.99% | |||||
Gamuda Bhd | 26,127,400 | 32,224,747 | |||
IJM Corp. Bhd | 9,739,800 | 22,104,727 | |||
Malaysian Resources Corp. Bhda | 6,957,000 | 4,377,389 | |||
MMC Corp. Bhd | 9,894,400 | 11,769,829 | |||
YTL Corp. Bhd | 13,604,888 | 32,793,125 | |||
103,269,817 | |||||
ENTERTAINMENT – 3.52% | |||||
Berjaya Sports Toto Bhd | 12,213,400 | 19,689,782 | |||
Magnum Corp. Bhd | 13,141,000 | 13,739,534 | |||
Tanjong PLC | 3,710,400 | 18,583,941 | |||
52,013,257 | |||||
FOOD – 1.77% | |||||
PPB Group Bhd | 7,730,066 | 26,133,890 | |||
26,133,890 | |||||
GAS – 1.75% | |||||
Petronas Gas Bhd | 8,193,800 | 25,906,208 | |||
25,906,208 | |||||
HOLDING COMPANIES - DIVERSIFIED – 10.83% | |||||
Mulpha International Bhda | 6,338,600 | 2,043,750 | |||
Multi-Purpose Holdings Bhd | 4,792,600 | 3,090,548 | |||
Sime Darby Bhda | 39,577,625 | 143,715,903 | |||
UEM World Bhd | 10,203,600 | 11,179,402 | |||
160,029,603 | |||||
LODGING – 8.21% | |||||
Genting Bhd | 30,456,200 | 65,307,550 | |||
Resorts World Bhd | 47,771,400 | 55,928,952 | |||
121,236,502 |
SCHEDULESOF INVESTMENTS | 43 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI MALAYSIA INDEX FUND
February 29, 2008
Security | Shares | Value | |||
MEDIA – 1.06% | |||||
Astro All Asia Networks PLC | 6,184,000 | $ | 7,278,710 | ||
Media Prima Bhd | 5,874,800 | 4,450,467 | |||
Star Publications (Malaysia) Bhd | 3,555,860 | 3,895,918 | |||
15,625,095 | |||||
METAL FABRICATE & HARDWARE – 1.22% | |||||
KNM Group Bhd | 9,430,600 | 18,008,033 | |||
18,008,033 | |||||
OIL & GAS – 1.00% | |||||
Petronas Dagangan Bhd | 4,174,200 | 10,976,140 | |||
Shell Refining Co. (FOM) Bhd | 1,082,200 | 3,760,344 | |||
14,736,484 | |||||
OIL & GAS SERVICES – 0.12% | |||||
Scomi Group Bhd | 5,411,000 | 1,812,418 | |||
1,812,418 | |||||
REAL ESTATE – 2.46% | |||||
IGB Corp. Bhd | 12,058,800 | 7,247,737 | |||
IOI Properties Bhd | 773,050 | 3,097,524 | |||
KLCC Property Holdings Bhd | 6,802,400 | 6,771,524 | |||
SP Setia Bhd | 12,368,000 | 19,280,839 | |||
36,397,624 | |||||
SEMICONDUCTORS – 0.15% | |||||
Malaysian Pacific Industries Bhd | 773,000 | 2,153,608 | |||
2,153,608 | |||||
TELECOMMUNICATIONS – 5.36% | |||||
DiGi.Com Bhd | 2,473,600 | 18,506,508 | |||
Telekom Malaysia Bhd | 17,006,000 | 60,688,183 | |||
79,194,691 | |||||
TRANSPORTATION – 3.75% | |||||
Malaysian Bulk Carriers Bhd | 2,319,050 | 2,990,918 | |||
MISC Bhd | 18,397,400 | 50,679,956 | |||
Pos Malaysia Bhda | 2,782,800 | 1,759,667 | |||
55,430,541 | |||||
TOTAL COMMON STOCKS |
| 1,473,881,759 |
Security | Shares | Value | |||
SHORT-TERM INVESTMENTS – 0.08% | |||||
MONEY MARKET FUNDS – 0.08% | |||||
Barclays Global Investors Funds Institutional Money Market | 1,195,243 | $ | 1,195,243 | ||
1,195,243 | |||||
TOTAL SHORT-TERM |
| 1,195,243 | |||
TOTAL INVESTMENTS IN |
| 1,475,077,002 | |||
Other Assets, Less Liabilities – 0.17% | 2,455,495 | ||||
NET ASSETS – 100.00% | $ | 1,477,532,497 | |||
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.
44 | 2008 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited)
iSHARES® MSCI MEXICO INDEX FUND
February 29, 2008
Security | Shares | Value | |||
COMMON STOCKS – 99.89% | |||||
BANKS – 0.25% | |||||
Banco Compartamos SA de CVa | 907,100 | $ | 3,575,658 | ||
3,575,658 | |||||
BEVERAGES – 8.23% | |||||
Coca-Cola FEMSA SAB de CV SP ADR | 280,282 |
| 14,697,988 | ||
Fomento Economico Mexicano SAB de CV BD Unitsb | 20,813,108 |
| 82,935,525 | ||
Grupo Continental SAB de CV | 308,100 | 760,599 | |||
Grupo Modelo SAB de CV Series Cb | 4,604,400 |
| 20,860,553 | ||
119,254,665 | |||||
BUILDING MATERIALS – 12.38% | |||||
Cemex SAB de CV Series CPOa | 65,442,003 | 179,505,601 | |||
179,505,601 | |||||
DIVERSIFIED FINANCIAL SERVICES – 3.53% | |||||
Grupo Financiero Banorte SAB de CV Series Ob | 12,768,700 |
| 51,190,118 | ||
51,190,118 | |||||
ENGINEERING & CONSTRUCTION – 5.19% | |||||
Carso Infraestructura y Construccion SAB de CV Series B1a,b | 8,892,000 |
| 8,130,170 | ||
Empresas ICA SAB de CVa,b | 4,030,974 | 24,242,332 | |||
Grupo Aeroportuario del Centro Norte SAB de CV | 494,000 |
| 1,405,727 | ||
Grupo Aeroportuario del Pacifico SAB de CV Series Bb | 4,654,800 |
| 21,327,750 | ||
Grupo Aeroportuario del Sureste SA de CV Series B ADR | 352,070 |
| 18,279,474 | ||
Promotora y Operadora de Infraestructura SAB de CVa,b | 538,000 |
| 1,868,742 | ||
75,254,195 | |||||
ENVIRONMENTAL CONTROL – 0.01% | |||||
Promotora Ambiental SAB de CVa | 52,000 | 152,823 | |||
152,823 |
Security | Shares | Value | |||
FOOD – 2.13% | |||||
Alsea SAB de CVb | 1,378,000 | $ | 1,652,062 | ||
Gruma SAB de CV Class B | 209,500 | 596,349 | |||
Grupo Bimbo SAB de CV Series Ab | 5,278,600 | 28,652,767 | |||
30,901,178 | |||||
FOREST PRODUCTS & PAPER – 1.73% | |||||
Kimberly-Clark de Mexico | 6,084,000 | 25,106,157 | |||
25,106,157 | |||||
HOLDING COMPANIES - DIVERSIFIED – 4.56% | |||||
Alfa SAB de CV Class Ab | 3,380,100 | 20,876,689 | |||
Grupo Carso SA de CV | 10,244,930 | 45,220,570 | |||
66,097,259 | |||||
HOME BUILDERS – 3.81% | |||||
Consorcio ARA SAB de CVb | 6,786,000 | 7,046,657 | |||
Corporacion Geo SAB de CV Series Ba,b | 3,744,600 | 11,745,655 | |||
Desarrolladora Homex SAB de CVa,b | 1,820,930 | 17,964,149 | |||
Sare Holding SAB de CV | 324,400 | 452,477 | |||
Urbi Desarrollos Urbanos SA de CVa,b | 4,967,300 | 17,976,877 | |||
55,185,815 | |||||
HOUSEWARES – 0.05% | |||||
Vitro SAB de CV Series A | 453,900 | 778,359 | |||
778,359 | |||||
MACHINERY – 0.05% | |||||
Industrias CH SA de CV | 200,000 | 772,137 | |||
772,137 | |||||
MEDIA – 4.98% | |||||
Grupo Televisa SA Series CPOb | 15,992,799 | 70,307,856 | |||
TV Azteca SAB de CV Series CPO | 3,260,700 | 1,831,392 | |||
72,139,248 | |||||
MINING – 6.55% | |||||
Grupo Mexico SA de CV | 10,192,000 | 71,155,627 | |||
Industrias Penoles SAB de CVb | 988,200 | 23,792,476 | |||
94,948,103 |
SCHEDULESOF INVESTMENTS | 45 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI MEXICO INDEX FUND
February 29, 2008
Security | Shares | Value | ||||
RETAIL – 6.81% | ||||||
Controladora Comercial | 5,305,700 | $ | 13,395,057 | |||
Grupo Elektra SA de CVb | 440,030 | 10,326,745 | ||||
Grupo Famsa SAB de CV | ||||||
Class Aa,b | 806,000 | 2,520,653 | ||||
Organizacion Soriana SAB de | 1,199,000 | 3,138,925 | ||||
Wal-Mart de Mexico SAB de | 19,110,000 | 69,409,543 | ||||
98,790,923 | ||||||
TELECOMMUNICATIONS – 39.63% | ||||||
America Movil SAB de CV | ||||||
Series Lb | 120,796,040 | 363,234,503 | ||||
Axtel SAB de CV Series CPOa | 3,320,100 | 7,328,920 | ||||
Carso Global Telecom SAB de | 10,920,831 | 47,755,647 | ||||
Grupo Iusacell SA de CVa | 524,800 | 6,167,868 | ||||
Telefonos de Mexico SAB de | 90,480,000 | 150,007,893 | ||||
574,494,831 | ||||||
TOTAL COMMON STOCKS | 1,448,147,070 | |||||
SHORT-TERM INVESTMENTS – 5.12% |
| |||||
MONEY MARKET FUNDS – 5.12% | ||||||
Barclays Global Investors Funds | 353,782 | 353,782 | ||||
BGI Cash Premier Fund LLC 3.63%c,d,e | 73,787,971 | 73,787,971 | ||||
74,141,753 | ||||||
TOTAL SHORT-TERM | 74,141,753 | |||||
TOTAL INVESTMENTS IN | 1,522,288,823 | |||||
Other Assets, Less Liabilities – (5.01)% | (72,583,313 | ) | ||||
NET ASSETS – 100.00% | $ | 1,449,705,510 | ||||
ADR – American Depositary Receipts
SP ADR – Sponsored 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 | Affiliated issuer. See Note 2. |
d | The rate quoted is the annualized seven-day yield of the fund at period end. |
e | This security represents an investment of securities lending collateral. See Note 5. |
See notes to financial statements.
46 | 2008 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited)
iSHARES® MSCI PACIFIC EX-JAPAN INDEX FUND
February 29, 2008
Security | Shares | Value | |||
COMMON STOCKS – 99.25% | |||||
AUSTRALIA – 64.75% | |||||
A.B.C. Learning Centres Ltd. | 1,105,788 | $ | 2,213,518 | ||
AGL Energy Ltd. | 1,251,042 | 13,106,517 | |||
Alumina Ltd. | 2,929,848 | 17,676,740 | |||
Amcor Ltd. | 2,416,686 | 16,004,822 | |||
AMP Ltd. | 5,293,128 | 39,857,095 | |||
Ansell Ltd. | 256,798 | 3,069,869 | |||
Aristocrat Leisure Ltd.a | 993,816 | 9,668,001 | |||
Asciano Group | 1,558,320 | 7,244,533 | |||
ASX Ltd. | 492,522 | 19,368,042 | |||
Australia and New Zealand Banking Group Ltd. | 5,262,168 | 108,289,103 | |||
AXA Asia Pacific Holdings Ltd. | 2,376,696 | 12,894,336 | |||
Babcock & Brown Ltd.a | 662,028 | 10,737,986 | |||
Bendigo Bank Ltd. | 733,236 | 6,934,135 | |||
BHP Billiton Ltd. | 9,430,158 | 349,133,984 | |||
Billabong International Ltd. | 489,426 | 5,768,394 | |||
BlueScope Steel Ltd. | 2,041,554 | 20,815,399 | |||
Boart Longyear Groupb | 3,314,010 | 6,354,846 | |||
Boral Ltd. | 1,731,180 | 9,780,849 | |||
Brambles Ltd. | 3,960,042 | 38,672,091 | |||
Caltex Australia Ltd. | 412,026 | 5,704,055 | |||
CFS Retail Property Trusta | 4,101,426 | 8,133,324 | |||
Challenger Financial Services Group Ltd.a | 1,026,066 | 2,111,521 | |||
Coca-Cola Amatil Ltd. | 1,528,392 | 13,753,309 | |||
Cochlear Ltd. | 156,864 | 7,910,246 | |||
Commonwealth Bank of | 3,693,012 | 145,535,702 | |||
Commonwealth Property | 2,413,761 | 2,935,182 | |||
Computershare Ltd. | 1,358,112 | 10,810,916 | |||
Crown Ltd.b | 1,342,632 | 14,568,416 | |||
CSL Ltd. | 1,544,388 | 52,728,650 | |||
CSR Ltd. | 2,580,258 | 8,157,878 | |||
Dexus Property Group | 7,953,366 | 12,461,294 | |||
Downer EDI Ltd. | 413,921 | 2,412,142 | |||
Fortescue Metals Group Ltd.b | 3,596,850 | 26,411,274 | |||
Foster’s Group Ltd. | 5,511,138 | 27,476,782 | |||
Futuris Corp. Ltd. | 1,024,776 | 1,926,737 | |||
Goodman Fielder Ltd. | 3,078,714 | 5,399,680 |
Security | Shares | Value | |||
Goodman Groupa | 4,085,946 | $ | 16,778,553 | ||
GPT Group | 5,859,696 | 17,539,711 | |||
Harvey Norman Holdings Ltd. | 1,614,822 | 6,872,796 | |||
Iluka Resources Ltd.a | 286,790 | 965,748 | |||
Incitec Pivot Ltd. | 135,708 | 18,787,307 | |||
ING Industrial Funda | 1,573,757 | 3,076,673 | |||
Insurance Australia Group Ltd. | 5,123,880 | 18,069,148 | |||
James Hardie Industries NV | 1,360,434 | 7,635,300 | |||
John Fairfax Holdings Ltd. | 3,403,020 | 12,350,757 | |||
Leighton Holdings Ltd. | 396,546 | 17,062,740 | |||
Lend Lease Corp. Ltd. | 1,013,682 | 13,160,990 | |||
Lion Nathan Ltd. | 771,936 | 6,895,758 | |||
Macquarie Airports | 1,883,142 | 6,182,834 | |||
Macquarie Communications Infrastructure Group | 687,949 | 2,998,745 | |||
Macquarie Group Ltd.a | 767,292 | 38,477,234 | |||
Macquarie Infrastructure Group | 7,107,642 | 19,413,586 | |||
Macquarie Office Trusta | 5,754,606 | 5,840,401 | |||
Mirvac Group | 2,932,428 | 10,587,954 | |||
National Australia Bank Ltd. | 4,562,214 | 123,117,230 | |||
Newcrest Mining Ltd. | 1,285,738 | 45,749,922 | |||
OneSteel Ltd. | 2,021,946 | 13,352,778 | |||
Orica Ltd. | 887,520 | 23,909,363 | |||
Origin Energy Ltd. | 2,436,552 | 20,170,484 | |||
Oxiana Ltd. | 3,761,124 | 13,967,077 | |||
Pacific Brands Ltd. | 698,854 | 1,451,232 | |||
Paladin Energy Ltd.a,b | 1,544,904 | 9,031,895 | |||
PaperlinX Ltd. | 686,308 | 1,360,982 | |||
Perpetual Ltd.a | 101,136 | 5,203,144 | |||
Qantas Airways Ltd.a | 2,735,316 | 10,797,354 | |||
QBE Insurance Group Ltd. | 2,397,078 | 50,607,058 | |||
Rio Tinto Ltd.a | 818,562 | 104,898,557 | |||
Santos Ltd. | 1,596,762 | 19,267,584 | |||
Sims Group Ltd. | 246,648 | 7,509,758 | |||
Sonic Healthcare Ltd. | 894,486 | 12,006,677 | |||
St. George Bank Ltd.a | 752,586 | 16,754,461 | |||
Stockland Corp. Ltd. | 3,993,840 | 26,337,657 | |||
Suncorp-Metway Ltd. | 2,596,770 | 33,787,650 | |||
Tabcorp Holdings Ltd.a | 1,432,674 | 20,450,281 | |||
Tatts Group Ltd. | 3,005,442 | 10,992,146 | |||
Telstra Corp. Ltd. | 8,037,732 | 36,615,068 | |||
Telstra Corp. Ltd. Instalment Receipts | 4,083,882 | 12,529,807 |
SCHEDULESOF INVESTMENTS | 47 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI PACIFIC EX-JAPAN INDEX FUND
February 29, 2008
Security | Shares | Value | |||
Toll Holdings Ltd. | 1,518,330 | $ | 14,557,520 | ||
Transurban Groupa | 3,058,332 | 18,451,926 | |||
Wesfarmers Ltd. | 1,516,266 | 53,498,850 | |||
Wesfarmers Ltd. Partially Protected Shares | 412,800 | 14,653,752 | |||
Westfield Groupa | 4,900,194 | 80,213,726 | |||
Westpac Banking Corp. | 5,243,076 | 114,369,985 | |||
Woodside Petroleum Ltd. | 1,324,572 | 70,623,265 | |||
Woolworths Ltd. | 3,420,048 | 92,742,283 | |||
WorleyParsons Ltd. | 430,602 | 15,120,553 | |||
Zinifex Ltd. | 1,378,236 | 14,348,818 | |||
2,377,172,446 | |||||
HONG KONG – 22.59% | |||||
ASM Pacific Technology Ltd.a | 516,000 | 3,481,714 | |||
Bank of East Asia Ltd. | 4,076,400 | 22,397,370 | |||
Belle International Holdings Ltd. | 5,934,000 | 7,306,294 | |||
BOC Hong Kong (Holdings) Ltd. | 10,320,000 | 25,864,163 | |||
C C Land Holdings Ltd. | 2,580,000 | 2,719,053 | |||
Cathay Pacific Airways Ltd.a | 3,870,000 | 8,077,577 | |||
Cheung Kong (Holdings) Ltd. | 4,386,000 | 67,081,028 | |||
Cheung Kong Infrastructure Holdings Ltd.a | 1,032,000 | 4,125,002 | |||
Chinese Estates Holdings Ltd.a | 1,548,000 | 2,311,858 | |||
CITIC International Financial Holdings Ltd. | 516,000 | 263,284 | |||
CLP Holdings Ltd. | 3,612,000 | 28,550,057 | |||
Esprit Holdings Ltd. | 2,967,000 | 38,209,327 | |||
Fosun International Ltd.b | 4,257,000 | 3,370,299 | |||
Foxconn International Holdings Ltd.a,b | 5,934,000 | 9,487,506 | |||
Genting International PLCa,b | 6,708,000 | 3,006,670 | |||
Giordano International Ltd. | 2,064,000 | 870,097 | |||
Hang Lung Development Co. Ltd. | 1,032,000 | 4,827,977 | |||
Hang Lung Properties Ltd. | 5,934,736 | 21,929,230 | |||
Hang Seng Bank Ltd. | 2,141,400 | 41,310,705 | |||
Henderson Land Development Co. Ltd. | 2,838,056 | 22,578,534 | |||
Hong Kong Aircraft Engineering Co. Ltd. | 206,400 | 4,615,758 | |||
Hong Kong and China Gas Co. Ltd. (The) | 10,578,419 | 31,270,348 |
Security | Shares | Value | |||
Hong Kong Exchanges and Clearing Ltd. | 2,967,000 | $ | 57,733,454 | ||
Hongkong Electric Holdings Ltd.a | 3,741,000 | 21,347,882 | |||
Hopewell Holdings Ltd. | 1,806,000 | 8,379,325 | |||
Hutchison Telecommunications International Ltd. | 4,128,000 | 5,634,408 | |||
Hutchison Whampoa Ltd. | 6,192,000 | 59,049,874 | |||
Hysan Development Co. Ltd. | 1,806,000 | 5,071,697 | |||
Kerry Properties Ltd.a | 1,677,000 | 11,444,892 | |||
Kingboard Chemical Holdings Co. Ltd. | 1,806,000 | 8,170,423 | |||
Lee & Man Paper Manufacturing Ltd.a | 1,034,000 | 2,930,308 | |||
Li & Fung Ltd.a | 6,193,600 | 23,084,755 | |||
Lifestyle International Holdings Ltd.a | 1,677,000 | 4,461,568 | |||
Link REIT (The) | 5,934,000 | 14,688,855 | |||
Melco International Development Ltd.a | 2,084,000 | 3,010,566 | |||
MTR Corp. Ltd. | 4,128,000 | 15,571,552 | |||
New World Development Co. Ltd. | 6,966,941 | 19,206,735 | |||
Noble Group Ltd.a | 2,838,000 | 4,559,036 | |||
NWS Holdings Ltd. | 1,032,000 | 3,037,381 | |||
Orient Overseas International Ltd. | 516,000 | 3,097,068 | |||
Pacific Basin Shipping Ltd.a | 3,354,000 | 5,733,223 | |||
Parkson Retail Group Ltd.a | 258,000 | 2,724,027 | |||
PCCW Ltd. | 11,868,845 | 6,879,694 | |||
Shangri-La Asia Ltd.a | 3,098,000 | 9,575,922 | |||
Shui On Land Ltd. | 5,289,000 | 5,152,606 | |||
Shun Tak Holdings Ltd. | 3,096,000 | 4,639,633 | |||
Sino Land Co. Ltd. | 3,612,000 | 9,275,287 | |||
Sun Hung Kai Properties Ltd. | 3,870,000 | 69,136,897 | |||
Swire Pacific Ltd. Class A | 2,451,000 | 28,429,855 | |||
Television Broadcasts Ltd. | 774,000 | 4,575,967 | |||
Tencent Holdings Ltd. | 2,580,000 | 16,446,955 | |||
Tingyi (Cayman Islands) Holding Corp.a | 5,160,000 | 6,598,678 | |||
Wharf Holdings Ltd. (The) | 4,068,000 | 21,148,696 | |||
Wheelock and Co. Ltd. | 1,032,000 | 3,070,540 |
48 | 2008 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI PACIFIC EX-JAPAN INDEX FUND
February 29, 2008
Security | Shares | Value | |||
Wing Hang Bank Ltd. | 516,000 | $ | 7,619,981 | ||
Yue Yuen Industrial Holdings Ltd.a | 1,419,000 | 4,249,349 | |||
829,390,940 | |||||
NEW ZEALAND – 1.26% | |||||
Auckland International | 2,763,438 | 5,495,682 | |||
Contact Energy Ltd. | 829,986 | 5,251,314 | |||
Fisher & Paykel Appliances Holdings Ltd.a | 285,005 | 589,647 | |||
Fisher & Paykel Healthcare Corp. Ltd. | 906,354 | 1,918,766 | |||
Fletcher Building Ltd. | 1,363,788 | 10,487,831 | |||
Kiwi Income Property Trust | 1,209,584 | 1,202,757 | |||
Sky City Entertainment Group Ltd. | 1,175,632 | 3,733,248 | |||
Sky Network Television Ltd. | 343,140 | 1,381,323 | |||
Telecom Corp. of New Zealand Ltd. | 5,044,674 | 15,655,404 | |||
Vector Ltd. | 458,492 | 683,856 | |||
46,399,828 | |||||
SINGAPORE – 10.65% | |||||
Allgreen Properties Ltd. | 2,065,000 | 1,895,583 | |||
Ascendas Real Estate Investment Trust | 2,839,000 | 4,581,003 | |||
CapitaCommercial Trusta | 2,580,000 | 3,830,034 | |||
CapitaLand Ltd.a | 4,644,000 | 20,981,928 | |||
CapitaMall Trust Management Ltd. | 3,096,622 | 7,261,872 | |||
City Developments Ltd. | 1,290,000 | 11,064,544 | |||
ComfortDelGro Corp. Ltd. | 5,418,000 | 6,178,012 | |||
COSCO Corp. (Singapore) Ltd. | 2,323,104 | 6,797,378 | |||
DBS Group Holdings Ltd. | 3,096,000 | 38,500,172 | |||
Fraser and Neave Ltd. | 2,322,150 | 8,160,165 | |||
Haw Par Corp. Ltd.a | 258,397 | 1,182,281 | |||
Jardine Cycle & Carriage Ltd. | 258,000 | 3,978,055 | |||
Keppel Corp. Ltd. | 3,096,000 | 23,934,939 | |||
Keppel Land Ltd.a | 1,033,000 | 4,370,840 | |||
Neptune Orient Lines Ltd. | 1,032,000 | 2,323,924 |
Security | Shares | Value | |||
Olam International Ltd. | 1,806,000 | $ | 3,354,518 | ||
Oversea-Chinese Banking Corp. | 7,224,600 | 39,687,633 | |||
Parkway Holdings Ltd. | 1,548,251 | 3,408,728 | |||
SembCorp Industries Ltd. | 2,376,240 | 8,196,869 | |||
SembCorp Marine Ltd. | 2,376,200 | 6,237,014 | |||
Singapore Airlines Ltd. | 1,548,800 | 17,038,577 | |||
Singapore Exchange Ltd. | 2,322,000 | 13,971,300 | |||
Singapore Land Ltd.a | 258,000 | 1,315,533 | |||
Singapore Petroleum Co. Ltd. | 258,000 | 1,280,379 | |||
Singapore Post Ltd. | 1,806,000 | 1,450,602 | |||
Singapore Press Holdings Ltd.a | 4,386,517 | 13,841,562 | |||
Singapore Technologies Engineering Ltd. | 3,612,000 | 8,884,940 | |||
Singapore Telecommunications Ltd. | 22,446,328 | 61,975,303 | |||
SMRT Corp. Ltd. | 1,549,000 | 1,955,135 | |||
United Overseas Bank Ltd. | 3,612,000 | 46,678,313 | |||
UOL Group Ltd. | 1,290,000 | 3,608,003 | |||
Venture Corp. Ltd. | 774,695 | 5,722,432 | |||
Wilmar International Ltd.a | 1,290,000 | 4,061,317 | |||
Wing Tai Holdings Ltd. | 774,066 | 1,199,070 | |||
Yanlord Land Group Ltd.a | 1,032,000 | 1,879,862 | |||
390,787,820 | |||||
TOTAL COMMON STOCKS | 3,643,751,034 | ||||
SHORT-TERM INVESTMENTS – 6.41% | |||||
MONEY MARKET FUNDS – 6.41% | |||||
Barclays Global Investors Funds | 288,373 | 288,373 | |||
BGI Cash Premier Fund LLC | 234,931,155 | 234,931,155 | |||
235,219,528 | |||||
TOTAL SHORT-TERM | 235,219,528 | ||||
SCHEDULESOF INVESTMENTS | 49 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI PACIFIC EX-JAPAN INDEX FUND
February 29, 2008
Value | ||||
TOTAL INVESTMENTS IN | $ | 3,878,970,562 | ||
Other Assets, Less Liabilities – (5.66)% | (207,900,929 | ) | ||
NET ASSETS – 100.00% | $ | 3,671,069,633 | ||
a | All or a portion of this security represents a security on loan. See Note 5. |
b | Non-income earning security. |
c | Affiliated issuer. See Note 2. |
d | The rate quoted is the annualized seven-day yield of the fund at period end. |
e | This security represents an investment of securities lending collateral. See Note 5. |
See notes to financial statements.
50 | 2008 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited)
iSHARES® MSCI SINGAPORE INDEX FUND
February 29, 2008
Security | Shares | Value | |||
COMMON STOCKS – 99.91% | |||||
AGRICULTURE – 1.00% | |||||
Wilmar International Ltd.a | 5,436,000 | $ | 17,114,200 | ||
17,114,200 | |||||
AIRLINES – 4.38% | |||||
Singapore Airlines Ltd. | 6,795,467 | 74,757,935 | |||
74,757,935 | |||||
BANKS – 28.95% | |||||
DBS Group Holdings Ltd. | 12,957,000 | 161,126,205 | |||
Oversea-Chinese Banking Corp. | 28,539,000 | 156,776,205 | |||
United Overseas Bank Ltd. | 13,595,000 | 175,689,831 | |||
493,592,241 | |||||
BEVERAGES – 2.24% | |||||
Fraser and Neave Ltd. | 10,872,000 | 38,204,819 | |||
38,204,819 | |||||
DISTRIBUTION & WHOLESALE – 1.37% | |||||
Jardine Cycle & Carriage Ltd. | 1,509,000 | 23,266,996 | |||
23,266,996 | |||||
DIVERSIFIED FINANCIAL SERVICES – 3.36% | |||||
Singapore Exchange Ltd.a | 9,519,000 | 57,275,108 | |||
57,275,108 | |||||
ELECTRONICS – 1.18% | |||||
Venture Corp. Ltd. | 2,718,522 | 20,080,878 | |||
20,080,878 | |||||
ENGINEERING & CONSTRUCTION – 4.77% | |||||
SembCorp Industries Ltd. | 10,976,000 | 37,861,847 | |||
Singapore Technologies Engineering Ltd. | 17,667,000 | 43,457,982 | |||
81,319,829 | |||||
FOOD – 0.89% | |||||
Olam International Ltd. | 8,154,000 | 15,145,482 | |||
15,145,482 | |||||
HEALTH CARE - SERVICES – 1.05% | |||||
Parkway Holdings Ltd. | 8,154,500 | 17,953,468 | |||
17,953,468 | |||||
HOLDING COMPANIES - DIVERSIFIED – 7.19% | |||||
Haw Par Corp. Ltd.a | 1,365,000 | 6,245,482 | |||
Keppel Corp. Ltd. | 12,231,000 | 94,556,928 | |||
Noble Group Ltd.a | 13,590,000 | 21,831,325 | |||
122,633,735 |
Security | Shares | Value | |||
MEDIA – 3.77% | |||||
Singapore Press Holdings Ltd. | 20,385,000 | $ | 64,324,441 | ||
64,324,441 | |||||
OIL & GAS – 0.61% | |||||
Singapore Petroleum Co. Ltd. | 2,087,000 | 10,357,172 | |||
10,357,172 | |||||
REAL ESTATE – 13.24% | |||||
Allgreen Properties Ltd. | 9,513,000 | 8,732,530 | |||
CapitaLand Ltd.a | 18,493,000 | 83,552,711 | |||
City Developments Ltd. | 6,795,000 | 58,281,842 | |||
Genting International PLCa,b | 29,898,000 | 13,400,925 | |||
Keppel Land Ltd.a | 4,077,000 | 17,250,646 | |||
Singapore Land Ltd.a | 1,359,000 | 6,929,496 | |||
UOL Group Ltd. | 6,795,000 | 19,004,948 | |||
Wing Tai Holdings Ltd.a | 4,077,100 | 6,315,645 | |||
Yanlord Land Group Ltd.a | 6,795,000 | 12,377,582 | |||
225,846,325 | |||||
REAL ESTATE INVESTMENT TRUSTS – 4.41% | |||||
Ascendas Real Estate | 13,590,000 | 21,928,787 | |||
CapitaCommercial Trust | 12,231,000 | 18,157,035 | |||
CapitaMall Trust Management Ltd. | 14,949,000 | 35,056,820 | |||
75,142,642 | |||||
SHIPBUILDING – 1.51% | |||||
SembCorp Marine Ltd.a | 9,814,000 | 25,759,637 | |||
25,759,637 | |||||
TELECOMMUNICATIONS – 15.18% | |||||
Singapore Telecommunications Ltd. | 93,771,568 | 258,907,442 | |||
258,907,442 | |||||
TRANSPORTATION – 4.81% | |||||
ComfortDelGro Corp. Ltd. | 23,103,000 | 26,343,782 | |||
COSCO Corp. (Singapore) Ltd. | 9,513,000 | 27,834,940 | |||
Neptune Orient Lines Ltd.a | 5,443,000 | 12,256,899 | |||
Singapore Post Ltd. | 10,872,000 | 8,732,530 | |||
SMRT Corp. Ltd. | 5,436,000 | 6,861,274 | |||
82,029,425 | |||||
TOTAL COMMON STOCKS | 1,703,711,775 |
SCHEDULESOF INVESTMENTS | 51 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI SINGAPORE INDEX FUND
February 29, 2008
Security | Shares | Value | ||||
SHORT-TERM INVESTMENTS – 7.16% |
| |||||
MONEY MARKET FUNDS – 7.16% |
| |||||
Barclays Global Investors Funds | 67,197 | $ | 67,197 | |||
BGI Cash Premier Fund LLC 3.63%c,d,e | 122,021,330 | 122,021,330 | ||||
122,088,527 | ||||||
TOTAL SHORT-TERM | 122,088,527 | |||||
TOTAL INVESTMENTS IN | 1,825,800,302 | |||||
Other Assets, Less Liabilities – (7.07)% | (120,504,125 | ) | ||||
NET ASSETS – 100.00% | $ | 1,705,296,177 | ||||
a | All or a portion of this security represents a security on loan. See Note 5. |
b | Non-income earning security. |
c | Affiliated issuer. See Note 2. |
d | The rate quoted is the annualized seven-day yield of the fund at period end. |
e | This security represents an investment of securities lending collateral. See Note 5. |
See notes to financial statements.
52 | 2008 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited)
iSHARES® MSCI SOUTH AFRICA INDEX FUND
February 29, 2008
Security | Shares | Value | |||
COMMON STOCKS – 98.75% | |||||
BANKS – 11.78% | |||||
Absa Group Ltd. | 392,544 | $ | 5,661,097 | ||
FirstRand Ltd. | 7,262,784 | 17,487,952 | |||
Nedbank Group Ltd. | 531,833 | 8,012,266 | |||
Standard Bank Group Ltd. | 2,946,912 | 37,376,413 | |||
68,537,728 | |||||
BUILDING MATERIALS – 1.30% | |||||
Pretoria Portland Cement Co. Ltd. | 1,376,352 | 7,585,208 | |||
7,585,208 | |||||
DIVERSIFIED FINANCIAL SERVICES – 2.57% | |||||
African Bank Investments Ltd. | 2,032,494 | 8,139,241 | |||
Investec Ltd. | 448,895 | 3,468,089 | |||
RMB Holdings Ltd. | 925,344 | 3,336,226 | |||
14,943,556 | |||||
ELECTRONICS – 0.58% | |||||
Reunert Ltd. | 455,807 | 3,374,761 | |||
3,374,761 | |||||
ENGINEERING & CONSTRUCTION – 2.87% | |||||
Aveng Ltd.a | 877,728 | 7,007,222 | |||
Murray & Roberts Holdings Ltd. | 766,464 | 9,721,252 | |||
16,728,474 | |||||
FOOD – 2.54% | |||||
Shoprite Holdings Ltd. | 1,111,584 | 5,832,626 | |||
SPAR Group Ltd. (The) | 216,385 | 1,386,164 | |||
Tiger Brands Ltd. | 420,953 | 7,589,041 | |||
14,807,831 | |||||
FOREST PRODUCTS & PAPER – 1.15% | |||||
Sappi Ltd. | 529,953 | 6,673,758 | |||
6,673,758 | |||||
HEALTH CARE - PRODUCTS – 0.38% | |||||
Aspen Pharmacare Holdings Ltd.b | 553,782 | 2,196,260 | |||
2,196,260 | |||||
HEALTH CARE - SERVICES – 0.66% | |||||
Network Healthcare Holdings Ltd.b | 3,098,299 | 3,817,943 | |||
3,817,943 | |||||
HOLDING COMPANIES - DIVERSIFIED – 6.47% | |||||
AVI Ltd. | 417,024 | 945,079 | |||
Barloworld Ltd. | 525,947 | 6,433,685 | |||
Bidvest Group Ltd. | 678,720 | 10,138,654 |
Security | Shares | Value | |||
Imperial Holdings Ltd. | 456,964 | $ | 4,707,238 | ||
Remgro Ltd. | 591,456 | 15,460,114 | |||
37,684,770 | |||||
HOME FURNISHINGS – 1.12% | |||||
Lewis Group Ltd. | 113,664 | 658,612 | |||
Steinhoff International | 2,540,768 |
| 5,885,595 | ||
6,544,207 | |||||
INSURANCE – 3.08% | |||||
Liberty Group Ltd. | 298,825 | 2,924,319 | |||
Metropolitan Holdings Ltd. | 733,248 | 1,359,589 | |||
Sanlam Ltd. | 5,639,712 | 13,616,090 | |||
17,899,998 | |||||
IRON & STEEL – 3.66% | |||||
ArcelorMittal South Africa Ltd. | 518,330 | 12,480,793 | |||
Kumba Iron Ore Ltd. | 203,952 | 8,850,180 | |||
21,330,973 | |||||
MEDIA – 3.31% | |||||
Naspers Ltd. | 1,003,104 | 19,269,920 | |||
19,269,920 | |||||
MINING – 26.51% | |||||
African Rainbow Minerals Ltd. | 298,644 | 7,835,120 | |||
Anglo Platinum Ltd. | 182,496 | 29,138,639 | |||
AngloGold Ashanti Ltd. | 570,144 | 20,812,864 | |||
Exxaro Resources Ltd. | 362,784 | 4,764,776 | |||
Gold Fields Ltd. | 1,595,808 | 22,500,335 | |||
Harmony Gold Mining Co. Ltd.b | 878,745 | 10,885,094 | |||
Impala Platinum Holdings Ltd. | 1,381,248 | 58,347,086 | |||
154,283,914 | |||||
OIL & GAS – 13.74% | |||||
Sasol Ltd. | 1,542,624 | 79,950,318 | |||
79,950,318 | |||||
PACKAGING & CONTAINERS – 0.28% | |||||
Nampak Ltd. | 675,052 | 1,608,063 | |||
1,608,063 | |||||
REAL ESTATE – 0.17% | |||||
Fountainhead Property Trust | 1,314,048 | 998,292 | |||
998,292 | |||||
RETAIL – 3.40% | |||||
Foschini Ltd. | 527,985 | 2,846,550 | |||
JD Group Ltd. | 464,775 | 2,534,489 |
SCHEDULESOF INVESTMENTS | 53 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI SOUTH AFRICA INDEX FUND
February 29, 2008
Security | Shares | Value | |||
Massmart Holdings Ltd. | 520,847 | $ | 4,828,774 | ||
Pick’n Pay Stores Ltd. | 563,043 | 2,247,489 | |||
Truworths International Ltd. | 1,165,901 | 3,979,840 | |||
Woolworths Holdings Ltd. | 2,089,517 | 3,341,656 | |||
19,778,798 | |||||
TELECOMMUNICATIONS – 12.89% | |||||
MTN Group Ltd. | 3,839,616 | 61,306,102 | |||
Telkom South Africa Ltd. | 754,560 | 13,699,576 | |||
75,005,678 | |||||
TRANSPORTATION – 0.29% | |||||
Grindrod Ltd. | 419,513 | 1,301,837 | |||
Super Group Ltd. | 340,608 | 372,793 | |||
1,674,630 | |||||
TOTAL COMMON STOCKS | 574,695,080 | ||||
SHORT-TERM INVESTMENTS – 0.73% | |||||
MONEY MARKET FUNDS – 0.73% | |||||
Barclays Global Investors Funds | 1,543 | 1,543 | |||
BGI Cash Premier Fund LLC 3.63%c,d,e | 4,228,669 | 4,228,669 | |||
4,230,212 | |||||
TOTAL SHORT-TERM INVESTMENTS | 4,230,212 | ||||
TOTAL INVESTMENTS IN SECURITIES – 99.48% | 578,925,292 | ||||
Other Assets, Less Liabilities – 0.52% | 3,051,435 | ||||
NET ASSETS – 100.00% | $ | 581,976,727 | |||
a | All or a portion of this security represents a security on loan. See Note 5. |
b | Non-income earning security. |
c | Affiliated issuer. See Note 2. |
d | The rate quoted is the annualized seven-day yield of the fund at period end. |
e | This security represents an investment of securities lending collateral. See Note 5. |
See notes to financial statements.
54 | 2008 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited)
iSHARES® MSCI SOUTH KOREA INDEX FUND
February 29, 2008
Security | Shares | Value | |||
COMMON STOCKS – 96.42% | |||||
ADVERTISING – 0.10% | |||||
Cheil Communications Inc. | 11,300 | $ | 3,170,811 | ||
3,170,811 | |||||
AEROSPACE & DEFENSE – 0.36% | |||||
Hyundai Merchant Marine Co. Ltd.a,b | 282,500 | 12,033,438 | |||
12,033,438 | |||||
AGRICULTURE – 1.88% | |||||
KT&G Corp. | 754,840 | 62,538,259 | |||
62,538,259 | |||||
AIRLINES – 0.65% | |||||
Asiana Airlines Inc. | 339,000 | 2,581,172 | |||
Korean Air Co. Ltd. | 248,602 | 19,140,541 | |||
21,721,713 | |||||
APPAREL – 0.07% | |||||
LG Fashion Corp.b | 90,404 | 2,445,303 | |||
2,445,303 | |||||
AUTO MANUFACTURERS – 2.72% | |||||
Hyundai Motor Co. Ltd.b | 1,073,500 | 76,364,198 | |||
Kia Motors Corp.a,b | 1,367,300 | 14,181,888 | |||
90,546,086 | |||||
AUTO PARTS & EQUIPMENT – 1.23% | |||||
Hankook Tire Co. Ltd. | 655,400 | 10,120,121 | |||
Hyundai Mobisb | 395,506 | 30,703,783 | |||
40,823,904 | |||||
BANKS – 6.17% | |||||
Daegu Bank | 904,000 | 12,514,776 | |||
Industrial Bank of Koreab | 510,780 | 8,349,367 | |||
Kookmin Bank | 2,361,709 | 148,133,390 | |||
Korea Exchange Bank | 1,785,400 | 25,192,003 | |||
Pusan Bank | 813,600 | 10,916,735 | |||
205,106,271 | |||||
BEVERAGES – 0.42% | |||||
Hite Brewery Co. Ltd.b | 90,400 | 11,359,566 | |||
Lotte Chilsung Beverage Co. Ltd.a,b | 2,260 | 2,442,788 | |||
13,802,354 |
Security | Shares | Value | |||
CHEMICALS – 3.38% | |||||
DC Chemical Co. Ltd. | 77,810 | $ | 28,586,816 | ||
Hanwha Chemical Corp.b | 372,900 | 7,008,876 | |||
Honam Petrochemical Corp.a | 101,700 | 10,115,308 | |||
KCC Corp.b | 33,900 | 20,216,176 | |||
Korea Zinc Co. Ltd.b | 67,800 | 10,505,191 | |||
LG Chem Ltd. | 372,905 | 31,768,703 | |||
Samsung Fine Chemicals Co. Ltd.b | 67,800 | 4,144,316 | |||
112,345,386 | |||||
COMMERCIAL SERVICES – 0.11% | |||||
S1 Corp. | 67,800 | 3,624,472 | |||
3,624,472 | |||||
COSMETICS & PERSONAL CARE – 0.48% | |||||
AmorePacific Corp.b | 22,600 | 14,199,457 | |||
Pacific Corp.b | 11,309 | 1,655,916 | |||
15,855,373 | |||||
DISTRIBUTION & WHOLESALE – 3.41% | |||||
Daewoo International Corp.b | 327,700 | 12,562,909 | |||
Hanwha Corp. | 316,400 | 19,609,691 | |||
Hyosung Corp.b | 158,205 | 10,613,828 | |||
LG International Corp.b | 124,305 | 2,263,581 | |||
Samsung Corp.b | 926,600 | 57,823,076 | |||
SK Networks Co. Ltd.a | 508,500 | 10,288,590 | |||
113,161,675 | |||||
DIVERSIFIED FINANCIAL SERVICES – 9.56% | |||||
Daewoo Securities Co. Ltd.b | 813,600 | 20,490,538 | |||
Daishin Securities Co. Ltd.b | 158,200 | 4,220,127 | |||
Hana Financial Group Inc. | 813,601 | 36,389,161 | |||
Hyundai Securities Co. Ltd.b | 952,327 | 17,138,945 | |||
Korea Investment Holdings Co. Ltd. | 282,505 | 15,613,662 | |||
Mirae Asset Securities Co. Ltd.b | 135,604 | 19,927,961 | |||
Samsung Card Co. Ltd. | 230,345 | 12,411,966 | |||
Samsung Securities Co.b | 384,200 | 27,412,172 | |||
Shinhan Financial Group Ltd. | 2,293,900 | 125,803,578 | |||
Tong Yang Investment Bankb | 508,502 | 10,044,952 | |||
Woori Finance Holdings Co. Ltd.a,b | 761,160 | 13,820,114 | |||
Woori Investment & Securities Co. Ltd.b | 621,500 | 14,461,184 | |||
317,734,360 |
SCHEDULESOF INVESTMENTS | 55 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI SOUTH KOREA INDEX FUND
February 29, 2008
Security | Shares | Value | |||
ELECTRIC – 1.93% | |||||
Korea Electric Power Corp. | 1,808,000 | $ | 64,017,890 | ||
64,017,890 | |||||
ELECTRICAL COMPONENTS & | |||||
LG Electronics Inc.b | 655,406 | 71,888,417 | |||
LS Cable Ltd. | 135,600 | 13,126,074 | |||
Taihan Electric Wire Co. Ltd.b | 144,590 | 7,236,814 | |||
92,251,305 | |||||
ELECTRONICS – 2.25% | |||||
Hyundai Autonet Co. Ltd.a,b | 384,200 | 2,250,253 | |||
LG.Philips LCD Co. Ltd.b | 745,800 | 36,176,125 | |||
Samsung Electro-Mechanics Co. Ltd.b | 418,100 | 19,657,223 | |||
Samsung SDI Co. Ltd.a,b | 237,300 | 16,779,426 | |||
74,863,027 | |||||
ENGINEERING & CONSTRUCTION – 5.97% | |||||
Daelim Industrial Co. Ltd. | 192,100 | 30,685,267 | |||
Daewoo Engineering & Construction Co. Ltd.b | 1,039,604 | 22,695,151 | |||
Doosan Heavy Industries & Construction Co. Ltd.b | 214,700 | 31,894,628 | |||
GS Engineering & Construction Corp. | 248,600 | 39,048,506 | |||
Hanjin Heavy Industries & Construction Co. Ltd.b | 214,716 | 13,513,355 | |||
Hyundai Engineering & | 316,400 | 29,077,600 | |||
Kumho Industrial Co. Ltd.b | 150,070 | 7,487,119 | |||
Samsung Engineering Co. Ltd. | 226,000 | 24,066,876 | |||
198,468,502 | |||||
ENVIRONMENTAL CONTROL – 0.32% | |||||
Woongjin Coway Co. Ltd. | 316,400 | 10,781,961 | |||
10,781,961 | |||||
FOOD – 0.70% | |||||
CJ CheilJedang Corp.a,b | 46,851 | 13,395,978 | |||
Lotte Confectionery Co. Ltd.a,b | 3,500 | 5,136,042 | |||
Nong Shim Co. Ltd.b | 11,302 | 2,310,829 | |||
Orion Corp.b | 11,309 | 2,366,454 | |||
23,209,303 | |||||
GAS – 0.35% | |||||
Korea Gas Corp. | 155,720 | 11,757,146 | |||
11,757,146 |
Security | Shares | Value | |||
HOLDING COMPANIES - DIVERSIFIED – 0.83% | |||||
GS Holdings Corp. | 144,590 | $ | 7,136,730 | ||
LG Corp. | 289,280 | 20,516,531 | |||
27,653,261 | |||||
HOME BUILDERS – 0.99% | |||||
Hyundai Development Co.b | 452,007 | 32,923,996 | |||
32,923,996 | |||||
HOUSEHOLD PRODUCTS & WARES – 0.44% | |||||
LG Household & Health Care Ltd.b | 79,100 | 14,530,376 | |||
14,530,376 | |||||
INSURANCE – 2.06% | |||||
Dongbu Insurance Co. Ltd. | 248,600 | 10,059,954 | |||
Hyundai Marine & Fire Insurance Co. Ltd.b | 259,900 | 5,950,535 | |||
Korean Reinsurance Co.b | 271,200 | 2,830,265 | |||
Samsung Fire & Marine Insurance Co. Ltd.b | 248,600 | 49,637,932 | |||
68,478,686 | |||||
INTERNET – 2.13% | |||||
Daum Communications Corp.a | 38,420 | 3,440,841 | |||
LG Dacom Corp. | 230,330 | 3,924,477 | |||
NCsoft Corp.a,b | 56,500 | 2,725,574 | |||
NHN Corp.a | 266,680 | 60,631,681 | |||
70,722,573 | |||||
IRON & STEEL – 10.02% | |||||
Dongkuk Steel Mill Co. Ltd.b | 259,911 | 11,901,574 | |||
Hyundai Steel Co. | 350,300 | 27,716,618 | |||
POSCO | 519,800 | 293,375,220 | |||
332,993,412 | |||||
LODGING – 0.51% | |||||
Kangwon Land Inc.b | 768,402 | 17,020,139 | |||
17,020,139 | |||||
MACHINERY – 0.66% | |||||
Doosan Infracore Co. Ltd.b | 531,100 | 16,938,869 | |||
STX Engine Co. Ltd.a | 90,050 | 4,813,918 | |||
21,752,787 | |||||
MANUFACTURING – 0.76% | |||||
Cheil Industries Inc. | 316,400 | 14,488,259 | |||
Doosan Corp.a,b | 55,550 | 10,914,195 | |||
25,402,454 |
56 | 2008 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI SOUTH KOREA INDEX FUND
February 29, 2008
Security | Shares | Value | |||
MINING – 0.05% | |||||
Poongsan Corp.b | 79,108 | $ | 1,651,155 | ||
1,651,155 | |||||
MULTIPLE UTILITIES – 0.45% | |||||
KT Freetel Co. Ltd.a | 565,000 | 14,861,296 | |||
14,861,296 | |||||
OIL & GAS – 3.51% | |||||
SK Corp.b | 248,604 | 45,138,152 | |||
SK Energy Co. Ltd. | 352,560 | 48,995,346 | |||
S-Oil Corp.b | 316,400 | 22,608,424 | |||
116,741,922 | |||||
PHARMACEUTICALS – 0.27% | |||||
Hanmi Pharm Co. Ltd.b | 23,733 | 4,208,024 | |||
Yuhan Corp.b | 23,737 | 4,739,564 | |||
8,947,588 | |||||
RETAIL – 2.82% | |||||
Hyundai Department | 101,700 | 9,692,934 | |||
Lotte Shopping Co. Ltd.b | 58,500 | 20,028,486 | |||
Shinsegae Co. Ltd. | 101,700 | 63,897,556 | |||
93,618,976 | |||||
SEMICONDUCTORS – 14.86% | |||||
Hynix Semiconductor Inc.a,b | 623,180 | 16,292,071 | |||
Samsung Electronics Co. Ltd. | 768,400 | 458,233,321 | |||
Samsung Techwin Co. Ltd.b | 372,900 | 19,438,214 | |||
493,963,606 | |||||
SHIPBUILDING – 6.73% | |||||
Daewoo Shipbuilding & | 666,700 | 27,014,467 | |||
Hyundai Heavy Industries Co. Ltd.b | 293,800 | 119,359,672 | |||
Hyundai Mipo Dockyard Co. Ltd.b | 79,100 | 22,911,666 | |||
Samsung Heavy Industries Co. Ltd.b | 1,209,100 | 41,138,113 | |||
STX Shipbuilding Co. Ltd.a,b | 322,670 | 13,194,748 | |||
223,618,666 | |||||
TELECOMMUNICATIONS – 3.30% | |||||
KT Corp. | 689,351 | 34,135,372 | |||
KT Corp. SP ADRa | 565,000 | 13,723,850 | |||
LG Telecom Ltd. | 945,920 | 8,108,893 |
Security | Shares | Value | |||
SKTelecom Co. Ltd. | 139,320 | $ | 28,559,821 | ||
SKTelecom Co. Ltd. ADR | 1,118,736 | 25,059,686 | |||
109,587,622 | |||||
TRANSPORTATION – 1.19% | |||||
Hanjin Shipping Co. Ltd.b | 372,900 | 14,434,711 | |||
Korea Line Corp.b | 44,420 | 9,507,928 | |||
STX Pan Ocean Co. Ltd. | 6,689,600 | 15,707,969 | |||
39,650,608 | |||||
TOTAL COMMON STOCKS | 3,204,377,662 | ||||
PREFERRED STOCKS – 2.27% | |||||
AUTO MANUFACTURERS – 0.24% | |||||
Hyundai Motor Co. Ltd. | 271,200 | 7,884,309 | |||
7,884,309 | |||||
ELECTRICAL COMPONENTS & | |||||
LG Electronics Inc. | 67,800 | 3,371,769 | |||
3,371,769 | |||||
SEMICONDUCTORS – 1.93% | |||||
Samsung Electronics Co. Ltd.b | 146,900 | 64,060,007 | |||
64,060,007 | |||||
TOTAL PREFERRED STOCKS | 75,316,085 | ||||
SHORT-TERM INVESTMENTS – 22.70% | |||||
MONEY MARKET FUNDS – 22.70% | |||||
Barclays Global Investors Funds | 681,563 | 681,563 | |||
BGI Cash Premier Fund LLC | 753,813,993 | 753,813,993 | |||
754,495,556 | |||||
TOTAL SHORT-TERM INVESTMENTS | 754,495,556 | ||||
SCHEDULESOF INVESTMENTS | 57 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI SOUTH KOREA INDEX FUND
February 29, 2008
Value | ||||
TOTAL INVESTMENTS IN | $ | 4,034,189,303 |
| |
Other Assets, Less Liabilities – (21.39)% | (710,736,115 | ) | ||
NET ASSETS – 100.00% | $ | 3,323,453,188 | ||
ADR – American Depositary Receipts
SP ADR – Sponsored 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 | Affiliated issuer. See Note 2. |
d | The rate quoted is the annualized seven-day yield of the fund at period end. |
e | This security represents an investment of securities lending collateral. See Note 5. |
See notes to financial statements.
58 | 2008 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited)
iSHARES® MSCI TAIWAN INDEX FUND
February 29, 2008
Security | Shares | Value | |||
COMMON STOCKS – 99.74% | |||||
AIRLINES – 0.38% | |||||
China Airlines | 10,516,588 | $ | 5,800,027 | ||
EVA Airways Corp.a | 9,560,396 | 5,380,912 | |||
11,180,939 | |||||
APPAREL – 0.43% | |||||
Pou Chen Corp. | 14,340,272 | 12,663,413 | |||
12,663,413 | |||||
AUTO MANUFACTURERS – 0.39% | |||||
China Motor Co. Ltd. | 4,780,287 | 3,649,192 | |||
Yulon Motor Co. Ltd. | 5,736,838 | 8,016,542 | |||
11,665,734 | |||||
AUTO PARTS & EQUIPMENT – 0.30% | |||||
Cheng Shin Rubber Industry Co. Ltd. | 4,780,291 | 9,030,212 | |||
9,030,212 | |||||
BANKS – 6.99% | |||||
Chang Hwa Commercial Bank Ltd. | 29,636,446 | 18,933,198 | |||
Chinatrust Financial Holding Co. Ltd.a | 56,404,566 | 51,542,261 | |||
E.Sun Financial Holding Co. Ltd.a | 22,944,378 | 13,396,281 | |||
First Financial Holding Co. Ltd. | 34,416,324 | 31,505,158 | |||
Hua Nan Financial Holdings Co. Ltd. | 25,812,965 | 20,707,150 | |||
Mega Financial Holding Co. Ltd. | 65,964,136 | 47,688,773 | |||
Taishin Financial Holdings Co. Ltd.a | 36,328,439 | 17,274,076 | |||
Taiwan Cooperative Bank Ltd. | 8,950,000 | 7,556,041 | |||
208,602,938 | |||||
BUILDING MATERIALS – 2.19% | |||||
Asia Cement Corp. | 12,428,848 | 21,026,322 | |||
Taiwan Cement Corp. | 21,032,197 | 37,417,785 | |||
Taiwan Glass Industrial Corp. | 5,736,923 | 6,958,907 | |||
65,403,014 | |||||
CHEMICALS – 9.09% | |||||
Eternal Chemical Co. Ltd. | 4,780,060 | 5,403,950 | |||
Formosa Chemicals & Fibre Co. | 22,944,393 | 56,776,518 |
Security | Shares | Value | |||
Formosa Plastics Corp. | 32,504,111 | $ | 89,474,360 | ||
Nan Ya Plastic Corp. | 40,152,447 | 96,371,068 | |||
Oriental Union Chemical Corp. | 1,912,704 | 1,911,776 | |||
Taiwan Fertilizer Co. Ltd. | 5,221,000 | 21,110,303 | |||
271,047,975 | |||||
COMMERCIAL SERVICES – 0.11% | |||||
Taiwan Secom Co. Ltd. | 1,912,610 | 3,322,243 | |||
3,322,243 | |||||
COMPUTER SYSTEMS – 0.20% | |||||
Mosel Vitelic Inc. | 7,648,750 | 5,925,524 | |||
5,925,524 | |||||
COMPUTERS – 10.42% | |||||
Acer Inc. | 18,164,617 | 33,902,584 | |||
Advantech Co. Ltd. | 1,912,588 | 4,503,846 | |||
CMC Magnetics Corp.a | 21,988,400 | 7,254,785 | |||
Compal Electronics Inc. | 22,944,944 | 21,004,105 | |||
Firich Enterprises Co. Ltd. | 500,000 | 3,695,617 | |||
Foxconn Technology Co. Ltd. | 3,264,824 | 21,754,933 | |||
High Tech Computer Corp. | 3,824,760 | 81,406,828 | |||
Innolux Display Corp. | 13,384,648 | 38,316,072 | |||
Inotera Memories Inc. | 23,900,000 | 21,259,906 | |||
Inventec Co. Ltd. | 11,472,098 | 6,753,750 | |||
Lite-On Technology Corp. | 14,340,849 | 19,714,898 | |||
MiTAC International Corp. | 8,604,952 | 7,543,076 | |||
Qisda Corp.a | 9,560,011 | 9,261,599 | |||
Quanta Computer Inc. | 14,340,716 | 19,204,452 | |||
Ritek Corp.a | 9,560,389 | 2,359,559 | |||
Wistron Corp. | 7,648,884 | 12,791,438 | |||
310,727,448 | |||||
DIVERSIFIED FINANCIAL SERVICES – 3.76% | |||||
Fubon Financial | 26,768,000 | 30,001,980 | |||
KGI Securities Co. Ltd. | 18,890,000 | 11,456,817 | |||
Polaris Securities Co. Ltd.a | 14,340,646 | 8,303,334 | |||
SinoPac Financial Holdings Co. Ltd. | 47,800,193 | 21,105,374 | |||
Waterland Financial Holdings | 5,736,000 | 2,217,215 | |||
Yuanta Financial Holding Co. Ltd.a | 43,020,076 | 39,102,835 | |||
112,187,555 |
SCHEDULESOF INVESTMENTS | 59 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI TAIWAN INDEX FUND
February 29, 2008
Security | Shares | Value | |||
ELECTRICAL COMPONENTS & | |||||
Delta Electronics Inc. | 11,472,675 | $ | 33,139,572 | ||
Pacific Electric Wire & Cable Co. Ltd.b | 986 | – | |||
Tatung Co. Ltd.a | 29,636,120 | 17,830,562 | |||
Walsin Lihwa Corp. | 21,032,069 | 10,340,852 | |||
61,310,986 | |||||
ELECTRONICS – 19.00% | |||||
Asia Optical Co. Inc. | 956,672 | 2,661,290 | |||
ASUSTeK Computer Inc. | 24,856,765 | 69,790,302 | |||
AU Optronics Corp. | 49,712,097 | 97,607,125 | |||
Cheng Uei Precision Industry Co. Ltd. | 1,912,500 | 4,355,167 | |||
Chi Mei Optoelectronics Corp. | 33,460,504 | 45,349,996 | |||
Chunghwa Picture Tubes Ltd.a | 48,756,105 | 16,638,425 | |||
Compeq Manufacturing Co. Ltd. | 3,824,200 | 1,261,745 | |||
Gigabyte Technology Co. Ltd. | 1,912,017 | 1,224,581 | |||
HannStar Display Corp.a | 33,460,712 | 14,774,017 | |||
Hon Hai Precision Industry Co. Ltd. | 40,152,860 | 244,177,185 | |||
Kinsus Interconnect Technology Corp. | 1,912,600 | 5,147,285 | |||
Micro-Star International Co. Ltd. | 2,868,989 | 2,338,623 | |||
Nan Ya Printed Circuit Board Corp. | 956,739 | 4,827,795 | |||
Pan-International Industrial Corp. | 2,251,000 | 4,157,597 | |||
Phoenix Precision Technology Corp. | 4,780,698 | 3,340,226 | |||
Synnex Technology International Corp. | 5,980,093 | 15,126,743 | |||
Tripod Technology Corp. | 2,868,040 | 10,019,354 | |||
Unimicron Technology Corp. | 6,692,480 | 10,391,041 | |||
Wintek Corp. | 7,648,537 | 7,743,788 | |||
Ya Hsin Industrial Co. Ltd.b | 6,845,461 | 22 | |||
Yageo Corp. | 19,120,100 | 5,949,712 | |||
566,882,019 | |||||
ENERGY - ALTERNATE SOURCES – 0.22% | |||||
Motech Industries Inc. | 956,366 | 6,620,163 | |||
6,620,163 |
Security | Shares | Value | |||
FOOD – 1.09% | |||||
Uni-President Enterprises Co. | 21,988,675 | $ | 32,504,689 | ||
32,504,689 | |||||
FOREST PRODUCTS & PAPER – 0.07% | |||||
Yuen Foong Yu Paper Manufacturing Co. Ltd. | 4,780,863 | 2,056,784 | |||
2,056,784 | |||||
HOME FURNISHINGS – 0.26% | |||||
Teco Electric and Machinery Co. Ltd. | 13,384,092 | 7,792,776 | |||
7,792,776 | |||||
INSURANCE – 4.48% | |||||
Cathay Financial Holding Co. Ltd. | 43,976,905 | 113,800,822 | |||
Shin Kong Financial Holding Co. Ltd. | 26,768,772 | 19,958,602 | |||
133,759,424 | |||||
INVESTMENT COMPANIES – 0.99% | |||||
China Development Financial Holding Co. | 70,744,192 | 29,519,653 | |||
29,519,653 | |||||
IRON & STEEL – 3.77% | |||||
China Steel Corp. Tung Ho Steel Enterprise Corp. | 68,832,762 4,780,000 | | 104,646,282 7,854,569 | ||
112,500,851 | |||||
MANUFACTURING – 0.36% | |||||
Largan Precision Co. Ltd. | 956,540 | 10,581,811 | |||
10,581,811 | |||||
METAL FABRICATE & HARDWARE – 0.54% | |||||
Catcher Technology Co. Ltd. | 3,824,119 | 14,410,799 | |||
Yieh Phui Enterprise Co. Ltd. | 3,824,265 | 1,787,502 | |||
16,198,301 | |||||
OFFICE & BUSINESS EQUIPMENT – 0.05% | |||||
Kinpo Electronics Inc. | 4,780,624 | 1,615,964 | |||
1,615,964 | |||||
OIL & GAS – 1.44% | |||||
Formosa Petrochemical Corp. | 15,296,000 | 43,045,512 | |||
43,045,512 |
60 | 2008 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI TAIWAN INDEX FUND
February 29, 2008
Security | Shares | Value | |||
REAL ESTATE – 0.17% | |||||
Cathay Real Estate Development Co. Ltd. | 7,648,493 | $ | 5,195,483 | ||
5,195,483 | |||||
RETAIL – 0.74% | |||||
Far Eastern Department Stores Co. Ltd. | 4,780,000 | 8,967,815 | |||
President Chain Store Corp. | 3,824,640 | 13,175,616 | |||
22,143,431 | |||||
SEMICONDUCTORS – 22.77% | |||||
Advanced Semiconductor Engineering Inc. | 29,636,716 | 27,992,628 | |||
Epistar Corp. | 3,824,733 | 11,753,182 | |||
Everlight Electronics Co. Ltd. | 1,916,000 | 7,282,226 | |||
Macronix International Co. Ltd. | 22,944,097 | 10,501,665 | |||
MediaTek Inc. | 6,692,535 | 77,067,523 | |||
Nanya Technology Corp. | 20,076,690 | 11,754,426 | |||
Novatek Microelectronics Corp. Ltd. | 2,868,718 | 10,346,500 | |||
Powerchip Semiconductor Corp. | 58,316,901 | 23,768,169 | |||
Powertech Technology Inc. | 2,868,650 | 9,882,297 | |||
ProMOS Technologies Inc. | 43,976,000 | 11,593,220 | |||
Realtek Semiconductor Corp. | 2,041,623 | 6,194,541 | |||
Richtek Technology Corp. | 956,000 | 8,658,580 | |||
Siliconware Precision Industries Co. Ltd. | 21,032,074 | 35,240,544 | |||
Sino-American Silicon Products Inc. | 1,262,000 | 8,470,484 | |||
Taiwan Semiconductor Manufacturing Co. Ltd. | 168,256,920 | 335,262,051 | |||
Transcend Information Inc. | 1,916,000 | 5,435,329 | |||
United Microelectronics Corp. | 95,600,834 | 56,745,118 | |||
Vanguard International Semiconductor Corp. | 6,692,156 | 4,946,329 | |||
Via Technologies Inc.a | 7,648,861 | 4,676,160 | |||
Wafer Works Corp. | 961,000 | 4,180,964 | |||
Winbond Electronics Corp. | 26,768,280 | 7,533,043 | |||
679,284,979 |
Security | Shares | Value | |||
TELECOMMUNICATIONS – 4.93% | |||||
Chunghwa Telecom Co. Ltd. | 38,240,709 | $ | 95,864,627 | ||
Compal Communications Inc. | 1,912,200 | 3,587,501 | |||
D-Link Corp. | 3,475,768 | 5,565,276 | |||
Far EasTone Telecommunications | 6,566,000 | 9,217,674 | |||
Inventec Appliances Corp. | 1,912,800 | 3,774,246 | |||
Taiwan Cellular Corp. | 13,442,677 | 22,784,935 | |||
Zinwell Corp. | 960,000 | 3,002,814 | |||
Zyxel Communications Corp. | 2,868,255 | 3,210,145 | |||
147,007,218 | |||||
TEXTILES – 1.38% | |||||
Far Eastern Textile Ltd. | 21,032,270 | 35,240,873 | |||
Formosa Taffeta Co. Ltd. | 5,736,515 | 5,789,399 | |||
41,030,272 | |||||
TRANSPORTATION – 1.16% | |||||
Evergreen Marine Corp. Ltd. | 8,604,467 | 7,236,492 | |||
Taiwan Navigation Co. Ltd. | 1,912,000 | 3,531,464 | |||
U-Ming Marine Transport Corp. | 3,824,800 | 10,516,190 | |||
Wan Hai Lines Ltd. | 8,604,794 | 7,515,104 | |||
Yang Ming Marine Transport Corp. | 8,604,567 | 5,817,094 | |||
34,616,344 | |||||
TOTAL COMMON STOCKS | 2,975,423,655 | ||||
SHORT-TERM INVESTMENTS – 0.07% | |||||
MONEY MARKET FUNDS – 0.07% | |||||
Barclays Global Investors Funds | 2,061,826 | 2,061,826 | |||
2,061,826 | |||||
TOTAL SHORT-TERM INVESTMENTS | 2,061,826 | ||||
SCHEDULESOF INVESTMENTS | 61 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI TAIWAN INDEX FUND
February 29, 2008
Value | |||
TOTAL INVESTMENTS IN | $ | 2,977,485,481 | |
Other Assets, Less Liabilities – 0.19% | 5,669,828 | ||
NET ASSETS – 100.00% | $ | 2,983,155,309 | |
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.
62 | 2008 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Statements of Assets and Liabilities (Unaudited)
iSHARES®, INC.
February 29, 2008
iShares MSCI | ||||||||||||||
Australia Index Fund | Brazil Index Fund | BRIC Index Fund | Canada Index Fund | |||||||||||
ASSETS | ||||||||||||||
Investments, at cost: | ||||||||||||||
Unaffiliated issuers | $ | 1,440,198,012 | $ | 4,102,217,863 | $ | 82,160,476 | $ | 1,725,787,209 | ||||||
Affiliated issuers (Note 2) | 67,215,093 | 13,507,560 | 1,477,807 | 1,645,862 | ||||||||||
Total cost of investments | $ | 1,507,413,105 | $ | 4,115,725,423 | $ | 83,638,283 | $ | 1,727,433,071 | ||||||
Investments in securities, at value | ||||||||||||||
(including securities on loana) (Note 1): | ||||||||||||||
Unaffiliated issuers | $ | 1,462,666,917 | $ | 7,499,131,470 | $ | 80,289,714 | $ | 1,905,785,292 | ||||||
Affiliated issuers (Note 2) | 67,215,093 | 13,507,560 | 1,477,807 | 1,645,862 | ||||||||||
Total value of investments | 1,529,882,010 | 7,512,639,030 | 81,767,521 | 1,907,431,154 | ||||||||||
Foreign currencies, at valueb | 2,462,535 | 566,992 | 10,239 | 2,202,306 | ||||||||||
Receivables: | ||||||||||||||
Investment securities sold | 20,807,278 | 109,510,805 | 1,600,542 | 8,726,815 | ||||||||||
Due from custodian (Note 4) | – | – | 1,440,927 | 10,253,880 | ||||||||||
Dividends and interest | 13,576,929 | 42,875,153 | 70,336 | 2,088,429 | ||||||||||
Total Assets | 1,566,728,752 | 7,665,591,980 | 84,889,565 | 1,930,702,584 | ||||||||||
LIABILITIES | ||||||||||||||
Payables: | ||||||||||||||
Investment securities purchased | 19,299,737 | 140,426,073 | 3,014,725 | 19,204,687 | ||||||||||
Securities related to in-kind transactions (Note 4) | 19,183 | – | – | – | ||||||||||
Collateral for securities on loan (Note 5) | 67,181,173 | – | 1,406,050 | – | ||||||||||
Capital shares redeemed | 980,860 | – | – | 139,783 | ||||||||||
Investment advisory fees (Note 2) | 635,501 | 3,648,575 | 36,813 | 696,470 | ||||||||||
Total Liabilities | 88,116,454 | 144,074,648 | 4,457,588 | 20,040,940 | ||||||||||
NET ASSETS | $ | 1,478,612,298 | $ | 7,521,517,332 | $ | 80,431,977 | $ | 1,910,661,644 | ||||||
Net assets consist of: | ||||||||||||||
Paid-in capital | $ | 1,382,818,480 | $ | 4,018,613,534 | $ | 82,443,279 | $ | 1,599,008,871 | ||||||
Undistributed (distributions in excess of) net investment income | (31,182,276 | ) | 22,154,375 | 12,234 | 312,212 | |||||||||
Undistributed net realized gain (accumulated net realized loss) | 104,175,698 | 82,140,749 | (154,034 | ) | 131,274,895 | |||||||||
Net unrealized appreciation (depreciation) on investments and translation of assets and liabilities in foreign currencies | 22,800,396 | 3,398,608,674 | (1,869,502 | ) | 180,065,666 | |||||||||
NET ASSETS | $ | 1,478,612,298 | $ | 7,521,517,332 | $ | 80,431,977 | $ | 1,910,661,644 | ||||||
Shares outstandingc | 54,200,000 | 89,950,000 | 1,500,000 | 59,500,000 | ||||||||||
Net asset value per share | $ | 27.28 | $ | 83.62 | $ | 53.62 | $ | 32.11 | ||||||
a | Securities on loan with market values of $61,472,816, $–, $1,300,855 and $–, respectively. See Note 5. |
b | Cost of foreign currencies: $2,433,112, $573,343, $9,985 and $2,156,402, respectively. |
c | $0.001 par value, number of shares authorized: 127.8 million, 500 million, 500 million and 340.2 million, respectively. |
See notes to financial statements.
FINANCIAL STATEMENTS | 63 |
Table of Contents
Statements of Assets and Liabilities (Unaudited) (Continued)
iSHARES®, INC.
February 29, 2008
iShares MSCI | |||||||||||||||
Chile Index Fund | Hong Kong Index Fund | Japan Small Cap Index Fund | Malaysia Index Fund | ||||||||||||
ASSETS | |||||||||||||||
Investments, at cost: | |||||||||||||||
Unaffiliated issuers | $ | 43,720,206 | $ | 2,330,762,814 | $ | 9,376,751 | $ | 1,086,990,298 | |||||||
Affiliated issuers (Note 2) | 48,379 | 323,549,243 | 59,957 | 1,195,243 | |||||||||||
Total cost of investments | $ | 43,768,585 | $ | 2,654,312,057 | $ | 9,436,708 | $ | 1,088,185,541 | |||||||
Investments in securities, at value | |||||||||||||||
(including securities on loana) (Note 1): | |||||||||||||||
Unaffiliated issuers | $ | 43,904,936 | $ | 2,432,821,591 | $ | 9,570,693 | $ | 1,473,881,759 | |||||||
Affiliated issuers (Note 2) | 48,379 | 323,549,243 | 59,957 | 1,195,243 | |||||||||||
Total value of investments | 43,953,315 | 2,756,370,834 | 9,630,650 | 1,475,077,002 | |||||||||||
Foreign currencies, at valueb | 20,868 | 1,552,762 | 4,567 | 347,125 | |||||||||||
Cash | 2,022 | – | – | – | |||||||||||
Receivables: | |||||||||||||||
Investment securities sold | – | – | – | 13,630,515 | |||||||||||
Due from custodian (Note 4) | – | 59,018 | – | – | |||||||||||
Dividends and interest | 103 | 674,273 | 11,806 | 2,900,691 | |||||||||||
Total Assets | 43,976,308 | 2,758,656,887 | 9,647,023 | 1,491,955,333 | |||||||||||
LIABILITIES | |||||||||||||||
Payables: | |||||||||||||||
Investment securities purchased | – | 59,018 | – | 13,849,243 | |||||||||||
Collateral for securities on loan (Note 5) | – | 320,970,555 | 52,980 | – | |||||||||||
Investment advisory fees (Note 2) | 17,933 | 982,746 | 2,429 | 573,593 | |||||||||||
Total Liabilities | 17,933 | 322,012,319 | 55,409 | 14,422,836 | |||||||||||
NET ASSETS | $ | 43,958,375 | $ | 2,436,644,568 | $ | 9,591,614 | $ | 1,477,532,497 | |||||||
Net assets consist of: | |||||||||||||||
Paid-in capital | $ | 43,717,051 | $ | 2,216,029,452 | $ | 9,393,260 | $ | 1,137,171,378 | |||||||
Undistributed (distributions in excess of) net investment income | 50,605 | (4,291,369 | ) | 3,913 | (1,421,107 | ) | |||||||||
Undistributed net realized gain (accumulated net realized loss) | 5,624 | 122,843,005 | (161 | ) | (45,124,716 | ) | |||||||||
Net unrealized appreciation on investments and translation of assets and liabilities in foreign currencies | 185,095 | 102,063,480 | 194,602 | 386,906,942 | |||||||||||
NET ASSETS | $ | 43,958,375 | $ | 2,436,644,568 | $ | 9,591,614 | $ | 1,477,532,497 | |||||||
Shares outstandingc | 900,000 | 127,350,000 | 200,000 | 115,950,000 | |||||||||||
Net asset value per share | $ | 48.84 | $ | 19.13 | $ | 47.96 | $ | 12.74 | |||||||
a | Securities on loan with market values of $–, $303,742,452, $50,053 and $–, respectively. See Note 5. |
b | Cost of foreign currencies: $20,503, $1,548,355, $4,460 and $343,895, respectively. |
c | $0.001 par value, number of shares authorized: 200 million, 191.4 million, 500 million and 127.8 million, respectively. |
See notes to financial statements.
64 | 2008 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Statements of Assets and Liabilities (Unaudited) (Continued)
iSHARES®, INC.
February 29, 2008
iShares MSCI | ||||||||||||||||
Mexico Index Fund | Pacific ex-Japan Index Fund | Singapore Index Fund | South Africa Index Fund | |||||||||||||
ASSETS | ||||||||||||||||
Investments, at cost: | ||||||||||||||||
Unaffiliated issuers | $ | 1,539,659,003 | $ | 2,647,504,889 | $ | 1,644,110,930 | $ | 624,232,708 | ||||||||
Affiliated issuers (Note 2) | 74,141,753 | 235,219,528 | 122,088,527 | 4,230,212 | ||||||||||||
Total cost of investments | $ | 1,613,800,756 | $ | 2,882,724,417 | $ | 1,766,199,457 | $ | 628,462,920 | ||||||||
Investments in securities, at value (including securities on loana) (Note 1): | ||||||||||||||||
Unaffiliated issuers | $ | 1,448,147,070 | $ | 3,643,751,034 | $ | 1,703,711,775 | $ | 574,695,080 | ||||||||
Affiliated issuers (Note 2) | 74,141,753 | 235,219,528 | 122,088,527 | 4,230,212 | ||||||||||||
Total value of investments | 1,522,288,823 | 3,878,970,562 | 1,825,800,302 | 578,925,292 | ||||||||||||
Foreign currencies, at valueb | 1,639,964 | 6,531,468 | 1,775,887 | 926,001 | ||||||||||||
Receivables: | ||||||||||||||||
Investment securities sold | 10,585,817 | 35,719,193 | 23,344,570 | 1,952,845 | ||||||||||||
Dividends and interest | 81,810 | 21,734,436 | 1,151,942 | 6,949,777 | ||||||||||||
Capital shares sold | 95,381 | – | – | – | ||||||||||||
Total Assets | 1,534,691,795 | 3,942,955,659 | 1,852,072,701 | 588,753,915 | ||||||||||||
LIABILITIES | ||||||||||||||||
Payables: | ||||||||||||||||
Investment securities purchased | 10,619,056 | 35,518,640 | 22,940,187 | 2,267,648 | ||||||||||||
Collateral for securities on loan (Note 5) | 73,787,971 | 234,931,155 | 122,021,330 | 4,228,669 | ||||||||||||
Capital shares redeemed | 18,862 | – | 1,079,151 | – | ||||||||||||
Investment advisory fees (Note 2) | 560,396 | 1,436,231 | 735,856 | 280,871 | ||||||||||||
Total Liabilities | 84,986,285 | 271,886,026 | 146,776,524 | 6,777,188 | ||||||||||||
NET ASSETS | $ | 1,449,705,510 | $ | 3,671,069,633 | $ | 1,705,296,177 | $ | 581,976,727 | ||||||||
Net assets consist of: | ||||||||||||||||
Paid-in capital | $ | 1,489,116,859 | $ | 2,756,663,826 | $ | 1,611,304,172 | $ | 603,412,662 | ||||||||
Undistributed (distributions in excess of) net investment income | (305,444 | ) | (87,474,756 | ) | (15,168,551 | ) | 7,148,476 | |||||||||
Undistributed net realized gain | 52,398,881 | 4,958,609 | 49,514,989 | 21,077,892 | ||||||||||||
Net unrealized appreciation (depreciation) on investments and translation of assets and liabilities in foreign currencies | (91,504,786 | ) | 996,921,954 | 59,645,567 | (49,662,303 | ) | ||||||||||
NET ASSETS | $ | 1,449,705,510 | $ | 3,671,069,633 | $ | 1,705,296,177 | $ | 581,976,727 | ||||||||
Shares outstandingc | 26,000,000 | 25,800,000 | 135,900,000 | 4,800,000 | ||||||||||||
Net asset value per share | $ | 55.76 | $ | 142.29 | $ | 12.55 | $ | 121.25 | ||||||||
a | Securities on loan with market values of $69,924,359, $216,879,963, $114,549,630 and $3,873,495, respectively. See Note 5. |
b | Cost of foreign currencies: $1,632,817, $6,311,237, $1,754,666 and $975,353, respectively. |
c | $0.001 par value, number of shares authorized: 255 million, 500 million, 191.4 million and 200 million, respectively. |
See notes to financial statements.
FINANCIAL STATEMENTS | 65 |
Table of Contents
Statements of Assets and Liabilities (Unaudited) (Continued)
iSHARES®, INC.
February 29, 2008
iShares MSCI | ||||||||
South Korea Index Fund | Taiwan Index Fund | |||||||
ASSETS | ||||||||
Investments, at cost: | ||||||||
Unaffiliated issuers | $ | 2,526,087,970 | $ | 2,224,854,762 | ||||
Affiliated issuers (Note 2) | 754,495,556 | 2,061,826 | ||||||
Total cost of investments | $ | 3,280,583,526 | $ | 2,226,916,588 | ||||
Investments in securities, at value (including securities on loana) (Note 1): | ||||||||
Unaffiliated issuers | $ | 3,279,693,747 | $ | 2,975,423,655 | ||||
Affiliated issuers (Note 2) | 754,495,556 | 2,061,826 | ||||||
Total value of investments | 4,034,189,303 | 2,977,485,481 | ||||||
Foreign currencies, at valueb | 1,227,612 | 6,606,485 | ||||||
Cash | – | 146,530 | ||||||
Receivables: | ||||||||
Investment securities sold | 21,644,528 | 12,567,342 | ||||||
Dividends and interest | 42,008,633 | 4,191 | ||||||
Capital shares sold | – | 28,081,353 | ||||||
Total Assets | 4,099,070,076 | 3,024,891,382 | ||||||
LIABILITIES | ||||||||
Payables: | ||||||||
Investment securities purchased | 20,152,713 | 40,460,081 | ||||||
Collateral for securities on loan (Note 5) | 753,813,993 | – | ||||||
Investment advisory fees (Note 2) | 1,650,182 | 1,275,992 | ||||||
Total Liabilities | 775,616,888 | 41,736,073 | ||||||
NET ASSETS | $ | 3,323,453,188 | $ | 2,983,155,309 | ||||
Net assets consist of: | ||||||||
Paid-in capital | $ | 2,674,737,674 | $ | 2,497,771,427 | ||||
Undistributed (distributions in excess of) net investment income | 33,154,480 | (1,287,075 | ) | |||||
Accumulated net realized loss | (138,114,546 | ) | (263,964,640 | ) | ||||
Net unrealized appreciation on investments and translation of assets and | 753,675,580 | 750,635,597 | ||||||
NET ASSETS | $ | 3,323,453,188 | $ | 2,983,155,309 | ||||
Shares outstandingc | 56,500,000 | 191,200,000 | ||||||
Net asset value per share | $ | 58.82 | $ | 15.60 | ||||
a | Securities on loan with market values of $705,350,091 and $–, respectively. See Note 5. |
b | Cost of foreign currencies: $1,217,113 and $6,619,331, respectively. |
c | $0.001 par value, number of shares authorized: 200 million and 200 million, respectively. |
See notes to financial statements.
66 | 2008 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Statements of Operations (Unaudited)
iSHARES®, INC.
Six months ended February 29, 2008
iShares MSCI | |||||||||||||||
Australia Index Fund | Brazil Index Fund | BRIC Index Funda | Canada Index Fund | ||||||||||||
NET INVESTMENT INCOME | |||||||||||||||
Dividends from unaffiliated issuersb | $ | 33,317,498 | $ | 69,892,088 | $ | 81,397 | $ | 17,377,764 | |||||||
Interest from affiliated issuers (Note 2) | 113,787 | 383,815 | 441 | 39,165 | |||||||||||
Securities lending income from affiliated issuers (Note 2) | 290,242 | 1,904 | 2,523 | – | |||||||||||
Total investment income | 33,721,527 | 70,277,807 | 84,361 | 17,416,929 | |||||||||||
EXPENSES | |||||||||||||||
Investment advisory fees (Note 2) | 4,656,773 | 21,458,642 | 72,127 | 4,671,979 | |||||||||||
Foreign taxes (Note 1) | – | 87,883 | – | – | |||||||||||
Total expenses | 4,656,773 | 21,546,525 | 72,127 | 4,671,979 | |||||||||||
Net investment income | 29,064,754 | 48,731,282 | 12,234 | 12,744,950 | |||||||||||
NET REALIZED AND UNREALIZED GAIN (LOSS) | |||||||||||||||
Net realized gain (loss) from: | |||||||||||||||
Investments in unaffiliated issuers | (24,350,778 | ) | 131,352,182 | (154,521 | ) | (15,673,487 | ) | ||||||||
In-kind redemptions | 142,876,357 | – | – | 165,257,503 | |||||||||||
Foreign currency transactions | 913,161 | 889,926 | 487 | 117,135 | |||||||||||
Net realized gain (loss) | 119,438,740 | 132,242,108 | (154,034 | ) | 149,701,151 | ||||||||||
Net change in unrealized appreciation (depreciation) on: | |||||||||||||||
Investments | (146,642,532 | ) | 1,654,836,155 | (1,870,762 | ) | (77,011,420 | ) | ||||||||
Translation of assets and liabilities in foreign currencies | 416,987 | 1,316,426 | 1,260 | 62,133 | |||||||||||
Net change in unrealized appreciation (depreciation) | (146,225,545 | ) | 1,656,152,581 | (1,869,502 | ) | (76,949,287 | ) | ||||||||
Net realized and unrealized gain (loss) | (26,786,805 | ) | 1,788,394,689 | (2,023,536 | ) | 72,751,864 | |||||||||
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS | $ | 2,277,949 | $ | 1,837,125,971 | $ | (2,011,302 | ) | $ | 85,496,814 | ||||||
a | For the period from November 12, 2007 (commencement of operations) to February 29, 2008. |
b | Net of foreign withholding tax of $777,890, $10,204,959, $9,067 and $3,066,308, respectively. |
See notes to financial statements.
FINANCIAL STATEMENTS | 67 |
Table of Contents
Statements of Operations (Unaudited) (Continued)
iSHARES®, INC.
Six months ended February 29, 2008
iShares MSCI | |||||||||||||||
Chile Index Funda | Hong Kong Index Fund | Japan Small Cap Index Fundb | Malaysia Index Fund | ||||||||||||
NET INVESTMENT INCOME | |||||||||||||||
Dividends from unaffiliated issuersc | $ | 110,591 | $ | 19,767,866 | $ | 11,215 | $ | 17,610,718 | |||||||
Interest from affiliated issuers (Note 2) | 350 | 84,960 | 19 | 48,352 | |||||||||||
Securities lending income from affiliated issuers (Note 2) | – | 934,347 | 75 | – | |||||||||||
Total investment income | 110,941 | 20,787,173 | 11,309 | 17,659,070 | |||||||||||
EXPENSES | |||||||||||||||
Investment advisory fees (Note 2) | 43,160 | 6,018,943 | 5,236 | 2,676,342 | |||||||||||
Total expenses | 43,160 | 6,018,943 | 5,236 | 2,676,342 | |||||||||||
Net investment income | 67,781 | 14,768,230 | 6,073 | 14,982,728 | |||||||||||
NET REALIZED AND UNREALIZED GAIN (LOSS) | |||||||||||||||
Net realized gain (loss) from: | |||||||||||||||
Investments in unaffiliated issuers | 4,068 | (20,845,909 | ) | (170 | ) | (3,217,483 | ) | ||||||||
In-kind redemptions | – | 168,379,740 | – | – | |||||||||||
Foreign currency transactions | 1,556 | 3,332 | 9 | 574,595 | |||||||||||
Net realized gain (loss) | 5,624 | 147,537,163 | (161 | ) | (2,642,888 | ) | |||||||||
Net change in unrealized appreciation (depreciation) on: | |||||||||||||||
Investments | 184,730 | (131,160,510 | ) | 193,942 | 129,976,401 | ||||||||||
Translation of assets and liabilities in foreign currencies | 365 | 2,052 | 660 | 30,623 | |||||||||||
Net change in unrealized appreciation (depreciation) | 185,095 | (131,158,458 | ) | 194,602 | 130,007,024 | ||||||||||
Net realized and unrealized gain | 190,719 | 16,378,705 | 194,441 | 127,364,136 | |||||||||||
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS | $ | 258,500 | $ | 31,146,935 | $ | 200,514 | $ | 142,346,864 | |||||||
a | For the period from November 12, 2007 (commencement of operations) to February 29, 2008. |
b | For the period from December 20, 2007 (commencement of operations) to February 29, 2008. |
c | Net of foreign withholding tax of $40,458, $–, $844 and $–, respectively. |
See notes to financial statements.
68 | 2008 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Statements of Operations (Unaudited) (Continued)
iSHARES®, INC.
Six months ended February 29, 2008
iShares MSCI | ||||||||||||||||
Mexico Index Fund | Pacific ex-Japan Index Fund | Singapore Index Fund | South Africa Index Fund | |||||||||||||
NET INVESTMENT INCOME | ||||||||||||||||
Dividends from unaffiliated issuersa | $ | 16,520,691 | $ | 65,829,139 | $ | 22,604,814 | $ | 16,149,079 | ||||||||
Interest from affiliated issuers (Note 2) | 39,168 | 283,692 | 111,640 | 13,762 | ||||||||||||
Securities lending income from affiliated issuers (Note 2) | 527,762 | 781,001 | 476,310 | 29,707 | ||||||||||||
Total investment income | 17,087,621 | 66,893,832 | 23,192,764 | 16,192,548 | ||||||||||||
EXPENSES | ||||||||||||||||
Investment advisory fees (Note 2) | 3,429,516 | 10,048,020 | 4,983,831 | 2,092,143 | ||||||||||||
Total expenses | 3,429,516 | 10,048,020 | 4,983,831 | 2,092,143 | ||||||||||||
Net investment income | 13,658,105 | 56,845,812 | 18,208,933 | 14,100,405 | ||||||||||||
NET REALIZED AND UNREALIZED GAIN (LOSS) | ||||||||||||||||
Net realized gain (loss) from: | ||||||||||||||||
Investments in unaffiliated issuers | (21,877,749 | ) | (42,347,864 | ) | (19,311,629 | ) | (10,580,143 | ) | ||||||||
In-kind redemptions | 84,987,312 | 62,926,031 | 88,233,497 | 38,069,734 | ||||||||||||
Foreign currency transactions | (48,419 | ) | 1,776,992 | 523,127 | 38,175 | |||||||||||
Net realized gain | 63,061,144 | 22,355,159 | 69,444,995 | 27,527,766 | ||||||||||||
Net change in unrealized appreciation (depreciation) on: | ||||||||||||||||
Investments | (118,147,593 | ) | (14,927,815 | ) | (166,699,198 | ) | (82,567,070 | ) | ||||||||
Translation of assets and liabilities in foreign currencies | 3,241 | 827,871 | 100,563 | (130,834 | ) | |||||||||||
Net change in unrealized appreciation (depreciation) | (118,144,352 | ) | (14,099,944 | ) | (166,598,635 | ) | (82,697,904 | ) | ||||||||
Net realized and unrealized gain (loss) | (55,083,208 | ) | 8,255,215 | (97,153,640 | ) | (55,170,138 | ) | |||||||||
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS | $ | (41,425,103 | ) | $ | 65,101,027 | $ | (78,944,707 | ) | $ | (41,069,733 | ) | |||||
a | Net of foreign withholding tax of $–, $1,178,285, $– and $–, respectively. |
See notes to financial statements.
FINANCIAL STATEMENTS | 69 |
Table of Contents
Statements of Operations (Unaudited) (Continued)
iSHARES®, INC.
Six months ended February 29, 2008
iShares MSCI | ||||||||
South Korea Index Fund | Taiwan Index Fund | |||||||
NET INVESTMENT INCOME | ||||||||
Dividends from unaffiliated issuersa | $ | 42,512,526 | $ | 17,234,952 | ||||
Interest from affiliated issuers (Note 2) | 136,092 | 114,166 | ||||||
Securities lending income from affiliated issuers (Note 2) | 4,109,161 | – | ||||||
Total investment income | 46,757,779 | 17,349,118 | ||||||
EXPENSES | ||||||||
Investment advisory fees (Note 2) | 10,404,525 | 8,766,458 | ||||||
Foreign taxes (Note 1) | – | 127,410 | ||||||
Total expenses | 10,404,525 | 8,893,868 | ||||||
Net investment income | 36,353,254 | 8,455,250 | ||||||
NET REALIZED AND UNREALIZED GAIN (LOSS) | ||||||||
Net realized gain (loss) from: | ||||||||
Investments in unaffiliated issuers | (48,659,435 | ) | (70,325,500 | ) | ||||
Foreign currency transactions | 27,651 | 358,992 | ||||||
Net realized loss | (48,631,784 | ) | (69,966,508 | ) | ||||
Net change in unrealized appreciation (depreciation) on: | ||||||||
Investments | (355,977,827 | ) | 59,507,658 | |||||
Translation of assets and liabilities in foreign currencies | 69,946 | 113,067 | ||||||
Net change in unrealized appreciation (depreciation) | (355,907,881 | ) | 59,620,725 | |||||
Net realized and unrealized loss | (404,539,665 | ) | (10,345,783 | ) | ||||
NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS | $ | (368,186,411 | ) | $ | (1,890,533 | ) | ||
a | Net of foreign withholding tax of $7,762,568 and $182,679, respectively. |
See notes to financial statements.
70 | 2008 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 | |||||||||||||||
Six months ended February 29, 2008 (Unaudited) | Year ended August 31, 2007 | Six months ended February 29, 2008 (Unaudited) | Year ended August 31, 2007 | |||||||||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||||||||||
OPERATIONS: | ||||||||||||||||
Net investment income | $ | 29,064,754 | $ | 36,454,764 | $ | 48,731,282 | $ | 68,668,117 | ||||||||
Net realized gain | 119,438,740 | 123,854,383 | 132,242,108 | 58,944,814 | ||||||||||||
Net change in unrealized appreciation (depreciation) | (146,225,545 | ) | 84,082,950 | 1,656,152,581 | 1,249,240,919 | |||||||||||
Net increase in net assets resulting from operations | 2,277,949 | 244,392,097 | 1,837,125,971 | 1,376,853,850 | ||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS: | ||||||||||||||||
From net investment income | (81,749,137 | ) | (35,850,508 | ) | (71,967,467 | ) | (59,308,876 | ) | ||||||||
From net realized gain | – | – | (39,856,665 | ) | – | |||||||||||
Total distributions to shareholders | (81,749,137 | ) | (35,850,508 | ) | (111,824,132 | ) | (59,308,876 | ) | ||||||||
CAPITAL SHARE TRANSACTIONS: | ||||||||||||||||
Proceeds from shares sold | 580,888,568 | 964,074,872 | 1,981,555,687 | 1,012,054,259 | ||||||||||||
Cost of shares redeemed | (486,917,558 | ) | (394,910,991 | ) | (619,673,832 | ) | (363,560,519 | ) | ||||||||
Net increase in net assets from capital share transactions | 93,971,010 | 569,163,881 | 1,361,881,855 | 648,493,740 | ||||||||||||
INCREASE IN NET ASSETS | 14,499,822 | 777,705,470 | 3,087,183,694 | 1,966,038,714 | ||||||||||||
NET ASSETS | ||||||||||||||||
Beginning of period | 1,464,112,476 | 686,407,006 | 4,434,333,638 | 2,468,294,924 | ||||||||||||
End of period | $ | 1,478,612,298 | $ | 1,464,112,476 | $ | 7,521,517,332 | $ | 4,434,333,638 | ||||||||
Undistributed (distributions in excess of) net investment income included in net assets at end of period | $ | (31,182,276 | ) | $ | 21,502,107 | $ | 22,154,375 | $ | 45,390,560 | |||||||
SHARES ISSUED AND REDEEMED | ||||||||||||||||
Shares sold | 18,400,000 | 37,000,000 | 26,100,000 | 16,700,000 | ||||||||||||
Shares redeemed | (17,200,000 | ) | (15,800,000 | ) | (8,150,000 | ) | (7,850,000 | ) | ||||||||
Net increase in shares outstanding | 1,200,000 | 21,200,000 | 17,950,000 | 8,850,000 | ||||||||||||
See notes to financial statements.
FINANCIAL STATEMENTS | 71 |
Table of Contents
Statements of Changes in Net Assets (Continued)
iSHARES®, INC.
iShares MSCI BRIC Index Fund | iShares MSCI Canada Index Fund | |||||||||||
Period from November 12, 2007a to February 29, 2008 (Unaudited) | Six months ended February 29, 2008 (Unaudited) | Year ended August 31, 2007 | ||||||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||||||
OPERATIONS: | ||||||||||||
Net investment income | $ | 12,234 | $ | 12,744,950 | $ | 15,264,817 | ||||||
Net realized gain (loss) | (154,034 | ) | 149,701,151 | 110,183,308 | ||||||||
Net change in unrealized appreciation (depreciation) | (1,869,502 | ) | (76,949,287 | ) | 94,919,801 | |||||||
Net increase (decrease) in net assets resulting from operations | (2,011,302 | ) | 85,496,814 | 220,367,926 | ||||||||
DISTRIBUTIONS TO SHAREHOLDERS: | ||||||||||||
From net investment income | – | (22,859,835 | ) | (12,092,201 | ) | |||||||
Total distributions to shareholders | – | (22,859,835 | ) | (12,092,201 | ) | |||||||
CAPITAL SHARE TRANSACTIONS: | ||||||||||||
Proceeds from shares sold | 82,443,279 | 1,036,241,730 | 285,559,364 | |||||||||
Cost of shares redeemed | – | (511,339,208 | ) | (271,873,681 | ) | |||||||
Net increase in net assets from capital share transactions | 82,443,279 | 524,902,522 | 13,685,683 | |||||||||
INCREASE IN NET ASSETS | 80,431,977 | 587,539,501 | 221,961,408 | |||||||||
NET ASSETS | ||||||||||||
Beginning of period | – | 1,323,122,143 | 1,101,160,735 | |||||||||
End of period | $ | 80,431,977 | $ | 1,910,661,644 | $ | 1,323,122,143 | ||||||
Undistributed net investment income included in net assets at end of period | $ | 12,234 | $ | 312,212 | $ | 10,427,097 | ||||||
SHARES ISSUED AND REDEEMED | ||||||||||||
Shares sold | 1,500,000 | 31,700,000 | 9,900,000 | |||||||||
Shares redeemed | – | (16,500,000 | ) | (10,200,000 | ) | |||||||
Net increase (decrease) in shares outstanding | 1,500,000 | 15,200,000 | (300,000 | ) | ||||||||
a | Commencement of operations. |
See notes to financial statements.
72 | 2008 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Statements of Changes in Net Assets (Continued)
iSHARES®, INC.
iShares MSCI Chile Index Fund | iShares MSCI Hong Kong Index Fund | |||||||||||
Period from November 12, 2007a to February 29, 2008 (Unaudited) | Six months ended February 29, 2008 (Unaudited) | Year ended August 31, 2007 | ||||||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||||||
OPERATIONS: | ||||||||||||
Net investment income | $ | 67,781 | $ | 14,768,230 | $ | 35,062,644 | ||||||
Net realized gain | 5,624 | 147,537,163 | 150,676,987 | |||||||||
Net change in unrealized appreciation (depreciation) | 185,095 | (131,158,458 | ) | 128,693,618 | ||||||||
Net increase in net assets resulting from operations | 258,500 | 31,146,935 | 314,433,249 | |||||||||
DISTRIBUTIONS TO SHAREHOLDERS: | ||||||||||||
From net investment income | (17,176 | ) | (44,264,451 | ) | (25,623,625 | ) | ||||||
Total distributions to shareholders | (17,176 | ) | (44,264,451 | ) | (25,623,625 | ) | ||||||
CAPITAL SHARE TRANSACTIONS: | ||||||||||||
Proceeds from shares sold | 43,717,051 | 1,449,525,477 | 828,936,976 | |||||||||
Cost of shares redeemed | – | (445,072,285 | ) | (555,149,687 | ) | |||||||
Net increase in net assets from capital share transactions | 43,717,051 | 1,004,453,192 | 273,787,289 | |||||||||
INCREASE IN NET ASSETS | 43,958,375 | 991,335,676 | 562,596,913 | |||||||||
NET ASSETS | ||||||||||||
Beginning of period | – | 1,445,308,892 | 882,711,979 | |||||||||
End of period | $ | 43,958,375 | $ | 2,436,644,568 | $ | 1,445,308,892 | ||||||
Undistributed (distributions in excess of) net investment income included in net assets at end of period | $ | 50,605 | $ | (4,291,369 | ) | $ | 25,204,852 | |||||
SHARES ISSUED AND REDEEMED | ||||||||||||
Shares sold | 900,000 | 69,225,000 | 51,075,000 | |||||||||
Shares redeemed | – | (20,850,000 | ) | (34,275,000 | ) | |||||||
Net increase in shares outstanding | 900,000 | 48,375,000 | 16,800,000 | |||||||||
a | Commencement of operations. |
See notes to financial statements.
FINANCIAL STATEMENTS | 73 |
Table of Contents
Statements of Changes in Net Assets (Continued)
iSHARES®, INC.
iShares MSCI Japan Small Cap Index Fund | iShares MSCI Malaysia Index Fund | |||||||||||
Period from December 20, 2007a to February 29, 2008 (Unaudited) | Six months ended February 29, 2008 (Unaudited) | Year ended August 31, 2007 | ||||||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||||||
OPERATIONS: | ||||||||||||
Net investment income | $ | 6,073 | $ | 14,982,728 | $ | 24,085,999 | ||||||
Net realized gain (loss) | (161 | ) | (2,642,888 | ) | 7,677,288 | |||||||
Net change in unrealized appreciation (depreciation) | 194,602 | 130,007,024 | 151,595,295 | |||||||||
Net increase in net assets resulting from operations | 200,514 | 142,346,864 | 183,358,582 | |||||||||
DISTRIBUTIONS TO SHAREHOLDERS: | ||||||||||||
From net investment income | (2,160 | ) | (34,921,988 | ) | (11,518,123 | ) | ||||||
Total distributions to shareholders | (2,160 | ) | (34,921,988 | ) | (11,518,123 | ) | ||||||
CAPITAL SHARE TRANSACTIONS: | ||||||||||||
Proceeds from shares sold | 9,393,260 | 628,668,100 | 709,128,181 | |||||||||
Cost of shares redeemed | – | – | (513,863,061 | ) | ||||||||
Net increase in net assets from capital share transactions | 9,393,260 | 628,668,100 | 195,265,120 | |||||||||
INCREASE IN NET ASSETS | 9,591,614 | 736,092,976 | 367,105,579 | |||||||||
NET ASSETS | ||||||||||||
Beginning of period | – | 741,439,521 | 374,333,942 | |||||||||
End of period | $ | 9,591,614 | $ | 1,477,532,497 | $ | 741,439,521 | ||||||
Undistributed (distributions in excess of) net investment income included in net assets at end of period | $ | 3,913 | $ | (1,421,107 | ) | $ | 18,518,153 | |||||
SHARES ISSUED AND REDEEMED | ||||||||||||
Shares sold | 200,000 | 48,375,000 | 68,475,000 | |||||||||
Shares redeemed | – | – | (49,200,000 | ) | ||||||||
Net increase in shares outstanding | 200,000 | 48,375,000 | 19,275,000 | |||||||||
a | Commencement of operations. |
See notes to financial statements.
74 | 2008 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 | |||||||||||||||
Six months ended February 29, 2008 (Unaudited) | Year ended August 31, 2007 | Six months ended February 29, 2008 (Unaudited) | Year ended August 31, 2007 | |||||||||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||||||||||
OPERATIONS: | ||||||||||||||||
Net investment income | $ | 13,658,105 | $ | 14,148,585 | $ | 56,845,812 | $ | 98,036,757 | ||||||||
Net realized gain | 63,061,144 | 288,704,084 | 22,355,159 | 107,970,955 | ||||||||||||
Net change in unrealized appreciation (depreciation) | (118,144,352 | ) | 6,648,571 | (14,099,944 | ) | 559,682,124 | ||||||||||
Net increase (decrease) in net assets resulting from operations | (41,425,103 | ) | 309,501,240 | 65,101,027 | 765,689,836 | |||||||||||
DISTRIBUTIONS TO SHAREHOLDERS: | ||||||||||||||||
From net investment income | (22,275,936 | ) | (11,694,155 | ) | (187,759,754 | ) | (101,866,512 | ) | ||||||||
From net realized gain | – | – | (4,628,288 | ) | – | |||||||||||
Total distributions to shareholders | (22,275,936 | ) | (11,694,155 | ) | (192,388,042 | ) | (101,866,512 | ) | ||||||||
CAPITAL SHARE TRANSACTIONS: | ||||||||||||||||
Proceeds from shares sold | 1,068,528,145 | 1,841,107,484 | 408,345,004 | 979,796,715 | ||||||||||||
Cost of shares redeemed | (937,931,246 | ) | (1,520,212,071 | ) | (146,283,659 | ) | (202,255,658 | ) | ||||||||
Net increase in net assets from capital share transactions | 130,596,899 | 320,895,413 | 262,061,345 | 777,541,057 | ||||||||||||
INCREASE IN NET ASSETS | 66,895,860 | 618,702,498 | 134,774,330 | 1,441,364,381 | ||||||||||||
NET ASSETS | ||||||||||||||||
Beginning of period | 1,382,809,650 | 764,107,152 | 3,536,295,303 | 2,094,930,922 | ||||||||||||
End of period | $ | 1,449,705,510 | $ | 1,382,809,650 | $ | 3,671,069,633 | $ | 3,536,295,303 | ||||||||
Undistributed (distributions in excess of) net investment income included in net assets at end of period | $ | (305,444 | ) | $ | 8,312,387 | $ | (87,474,756 | ) | $ | 43,439,186 | ||||||
SHARES ISSUED AND REDEEMED | ||||||||||||||||
Shares sold | 18,800,000 | 34,500,000 | 2,400,000 | 7,300,000 | ||||||||||||
Shares redeemed | (16,500,000 | ) | (29,300,000 | ) | (1,000,000 | ) | (1,600,000 | ) | ||||||||
Net increase in shares outstanding | 2,300,000 | 5,200,000 | 1,400,000 | 5,700,000 | ||||||||||||
See notes to financial statements.
FINANCIAL STATEMENTS | 75 |
Table of Contents
Statements of Changes in Net Assets (Continued)
iSHARES®, INC.
iShares MSCI Singapore Index Fund | iShares MSCI South Africa Index Fund | |||||||||||||||
Six months ended February 29, 2008 (Unaudited) | Year ended August 31, 2007 | Six months ended February 29, 2008 (Unaudited) | Year ended August 31, 2007 | |||||||||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||||||||||
OPERATIONS: | ||||||||||||||||
Net investment income | $ | 18,208,933 | $ | 52,154,899 | $ | 14,100,405 | �� | $ | 9,702,180 | |||||||
Net realized gain | 69,444,995 | 205,458,060 | 27,527,766 | 9,358,147 | ||||||||||||
Net change in unrealized appreciation (depreciation) | (166,598,635 | ) | 154,022,242 | (82,697,904 | ) | 76,042,874 | ||||||||||
Net increase (decrease) in net assets resulting from operations | (78,944,707 | ) | 411,635,201 | (41,069,733 | ) | 95,103,201 | ||||||||||
DISTRIBUTIONS TO SHAREHOLDERS: | ||||||||||||||||
From net investment income | (77,127,096 | ) | (29,331,787 | ) | (13,744,433 | ) | (9,144,852 | ) | ||||||||
Total distributions to shareholders | (77,127,096 | ) | (29,331,787 | ) | (13,744,433 | ) | (9,144,852 | ) | ||||||||
CAPITAL SHARE TRANSACTIONS: | ||||||||||||||||
Proceeds from shares sold | 502,868,505 | 1,229,979,919 | 380,469,704 | 151,649,200 | ||||||||||||
Cost of shares redeemed | (310,710,709 | ) | (517,692,912 | ) | (210,619,067 | ) | (68,565,161 | ) | ||||||||
Net increase in net assets from capital share transactions | 192,157,796 | 712,287,007 | 169,850,637 | 83,084,039 | ||||||||||||
INCREASE IN NET ASSETS | 36,085,993 | 1,094,590,421 | 115,036,471 | 169,042,388 | ||||||||||||
NET ASSETS | ||||||||||||||||
Beginning of period | 1,669,210,184 | 574,619,763 | 466,940,256 | 297,897,868 | ||||||||||||
End of period | $ | 1,705,296,177 | $ | 1,669,210,184 | $ | 581,976,727 | $ | 466,940,256 | ||||||||
Undistributed (distributions in excess of) net investment income included in net assets at end of period | $ | (15,168,551 | ) | $ | 43,749,612 | $ | 7,148,476 | $ | 6,792,504 | |||||||
SHARES ISSUED AND REDEEMED | ||||||||||||||||
Shares sold | 34,800,000 | 105,300,000 | 2,700,000 | 1,300,000 | ||||||||||||
Shares redeemed | (24,600,000 | ) | (42,700,000 | ) | (1,650,000 | ) | (600,000 | ) | ||||||||
Net increase in shares outstanding | 10,200,000 | 62,600,000 | 1,050,000 | 700,000 | ||||||||||||
See notes to financial statements.
76 | 2008 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Statements of Changes in Net Assets (Continued)
iSHARES®, INC.
iShares MSCI South Korea Index Fund | iShares MSCI Taiwan Index Fund | |||||||||||||||
Six months ended February 29, 2008 (Unaudited) | Year ended August 31, 2007 | Six months ended February 29, 2008 (Unaudited) | Year ended August 31, 2007 | |||||||||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||||||||||
OPERATIONS: | ||||||||||||||||
Net investment income | $ | 36,353,254 | $ | 17,668,348 | $ | 8,455,250 | $ | 58,686,661 | ||||||||
Net realized loss | (48,631,784 | ) | (2,170,342 | ) | (69,966,508 | ) | (36,061,860 | ) | ||||||||
Net change in unrealized appreciation (depreciation) | (355,907,881 | ) | 592,662,779 | 59,620,725 | 510,559,095 | |||||||||||
Net increase (decrease) in net assets resulting from operations | (368,186,411 | ) | 608,160,785 | (1,890,533 | ) | 533,183,896 | ||||||||||
DISTRIBUTIONS TO SHAREHOLDERS: | ||||||||||||||||
From net investment income | (20,758,106 | ) | (10,954,387 | ) | (68,184,922 | ) | (44,460,389 | ) | ||||||||
Total distributions to shareholders | (20,758,106 | ) | (10,954,387 | ) | (68,184,922 | ) | (44,460,389 | ) | ||||||||
CAPITAL SHARE TRANSACTIONS: | ||||||||||||||||
Proceeds from shares sold | 1,349,178,525 | 471,567,107 | 589,795,286 | 890,014,349 | ||||||||||||
Cost of shares redeemed | (66,233,609 | ) | (260,654,404 | ) | (306,328,876 | ) | (502,724,067 | ) | ||||||||
Net increase in net assets from capital share transactions | 1,282,944,916 | 210,912,703 | 283,466,410 | 387,290,282 | ||||||||||||
INCREASE IN NET ASSETS | 894,000,399 | 808,119,101 | 213,390,955 | 876,013,789 | ||||||||||||
NET ASSETS | ||||||||||||||||
Beginning of period | 2,429,452,789 | 1,621,333,688 | 2,769,764,354 | 1,893,750,565 | ||||||||||||
End of period | $ | 3,323,453,188 | $ | 2,429,452,789 | $ | 2,983,155,309 | $ | 2,769,764,354 | ||||||||
Undistributed (distributions in excess of) net investment income included in net assets at end of period | $ | 33,154,480 | $ | 17,559,332 | $ | (1,287,075 | ) | $ | 58,442,597 | |||||||
SHARES ISSUED AND REDEEMED | ||||||||||||||||
Shares sold | 19,400,000 | 8,200,000 | 38,400,000 | 58,100,000 | ||||||||||||
Shares redeemed | (1,100,000 | ) | (5,250,000 | ) | (20,400,000 | ) | (35,550,000 | ) | ||||||||
Net increase in shares outstanding | 18,300,000 | 2,950,000 | 18,000,000 | 22,550,000 | ||||||||||||
See notes to financial statements.
FINANCIAL STATEMENTS | 77 |
Table of Contents
iSHARES®, INC.
(For a share outstanding throughout each period)
iShares MSCI Australia Index Fund | ||||||||||||||||||||||||
Six months ended Feb. 29, 2008 (Unaudited) | Year ended Aug. 31, 2007 | Year ended Aug. 31, 2006 | Year ended Aug. 31, 2005 | Year ended Aug. 31, 2004 | Year ended Aug. 31, 2003 | |||||||||||||||||||
Net asset value, beginning of period | $ | 27.62 | $ | 21.59 | $ | 18.28 | $ | 13.56 | $ | 11.22 | $ | 9.36 | ||||||||||||
Income from investment operations: | ||||||||||||||||||||||||
Net investment incomea | 0.47 | 0.89 | 0.75 | 0.70 | 0.45 | 0.32 | ||||||||||||||||||
Net realized and unrealized gainb | 0.47 | 6.24 | 3.23 | 4.60 | 2.32 | 1.81 | ||||||||||||||||||
Total from investment operations | 0.94 | 7.13 | 3.98 | 5.30 | 2.77 | 2.13 | ||||||||||||||||||
Less distributions from: | ||||||||||||||||||||||||
Net investment income | (1.28 | ) | (1.10 | ) | (0.67 | ) | (0.58 | ) | (0.43 | ) | (0.27 | ) | ||||||||||||
Total distributions | (1.28 | ) | (1.10 | ) | (0.67 | ) | (0.58 | ) | (0.43 | ) | (0.27 | ) | ||||||||||||
Net asset value, end of period | $ | 27.28 | $ | 27.62 | $ | 21.59 | $ | 18.28 | $ | 13.56 | $ | 11.22 | ||||||||||||
Total return | 3.36 | %c | 33.97 | % | 22.35 | % | 39.58 | % | 24.95 | % | 23.33 | % | ||||||||||||
Ratios/Supplemental data: | ||||||||||||||||||||||||
Net assets, end of period (000s) | $ | 1,478,612 | $ | 1,464,112 | $ | 686,407 | $ | 369,355 | $ | 178,998 | $ | 87,541 | ||||||||||||
Ratio of expenses to average net assetsd | 0.51 | % | 0.51 | % | 0.54 | % | 0.57 | % | 0.79 | % | 0.84 | % | ||||||||||||
Ratio of net investment income to average net assetsd | 3.18 | % | 3.46 | % | 3.75 | % | 4.13 | % | 3.37 | % | 3.21 | % | ||||||||||||
Portfolio turnover ratee | 5 | % | 10 | % | 7 | % | 17 | % | 9 | % | 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.
78 | 2008 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Financial Highlights (Continued)
iSHARES®, INC.
(For a share outstanding throughout each period)
iShares MSCI Brazil Index Fund | ||||||||||||||||||||||||
Six months ended Feb. 29, 2008 (Unaudited) | Year ended Aug. 31, 2007 | Year ended Aug. 31, 2006 | Year ended Aug. 31, 2005 | Year ended Aug. 31, 2004 | Year ended Aug. 31, 2003 | |||||||||||||||||||
Net asset value, beginning of period | $ | 61.59 | $ | 39.09 | $ | 28.18 | $ | 16.96 | $ | 12.19 | $ | 8.30 | ||||||||||||
Income from investment operations: | ||||||||||||||||||||||||
Net investment incomea | 0.55 | 1.09 | 1.00 | 0.89 | 0.55 | 0.32 | ||||||||||||||||||
Net realized and unrealized gainb | 22.68 | 22.35 | 10.49 | 10.79 | 4.49 | 3.68 | ||||||||||||||||||
Total from investment operations | 23.23 | 23.44 | 11.49 | 11.68 | 5.04 | 4.00 | ||||||||||||||||||
Less distributions from: | ||||||||||||||||||||||||
Net investment income | (0.77 | ) | (0.94 | ) | (0.58 | ) | (0.46 | ) | (0.27 | ) | (0.11 | ) | ||||||||||||
Net realized gain | (0.43 | ) | – | – | – | – | – | |||||||||||||||||
Total distributions | (1.20 | ) | (0.94 | ) | (0.58 | ) | (0.46 | ) | (0.27 | ) | (0.11 | ) | ||||||||||||
Net asset value, end of period | $ | 83.62 | $ | 61.59 | $ | 39.09 | $ | 28.18 | $ | 16.96 | $ | 12.19 | ||||||||||||
Total return | 37.80 | %c | 60.82 | % | 41.13 | % | 69.72 | % | 41.42 | % | 48.85 | % | ||||||||||||
Ratios/Supplemental data: | ||||||||||||||||||||||||
Net assets, end of period (000s) | $ | 7,521,517 | $ | 4,434,334 | $ | 2,468,295 | $ | 552,285 | $ | 209,504 | $ | 103,035 | ||||||||||||
Ratio of expenses to average net assetsd | 0.64 | % | 0.69 | % | 0.70 | % | 0.74 | % | 0.96 | % | 0.99 | % | ||||||||||||
Ratio of expenses to average net assets exclusive of foreign taxesd | 0.63 | % | 0.68 | % | n/a | n/a | n/a | n/a | ||||||||||||||||
Ratio of net investment income to average net assetsd | 1.44 | % | 2.17 | % | 2.65 | % | 3.94 | % | 3.59 | % | 3.59 | % | ||||||||||||
Portfolio turnover ratee | 20 | % | 22 | % | 15 | % | 48 | % | 106 | % | 85 | % |
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 29, 2008 and the years ended August 31, 2007, August 31, 2006 and August 31, 2005 would have been 11%, 6%, 13% and 9%, respectively. See Note 4. |
See notes to financial statements.
FINANCIAL HIGHLIGHTS | 79 |
Table of Contents
Financial Highlights (Continued)
iSHARES®, INC.
(For a share outstanding throughout the period)
iShares MSCI BRIC Index Fund | |||
Period from Nov. 12, 2007a to Feb. 29, 2008 (Unaudited) | |||
Net asset value, beginning of period | $ 56.50 | ||
Income from investment operations: | |||
Net investment incomeb | 0.02 | ||
Net realized and unrealized lossc | (2.90 | ) | |
Total from investment operations | (2.88 | ) | |
Net asset value, end of period | $ 53.62 | ||
Total return | (5.10 | )%d | |
Ratios/Supplemental data: | |||
Net assets, end of period (000s) | $ 80,432 | ||
Ratio of expenses to average net assetse | 0.72 | % | |
Ratio of net investment income to average net assetse | 0.12 | % | |
Portfolio turnover ratef | 5 | % |
a | Commencement of operations. |
b | Based on average shares outstanding throughout the period. |
c | The amount 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 rate includes portfolio transactions that are executed as a result of the Fund processing capital share transactions in Creation Units partially for cash in U.S. dollars. Excluding such transactions, the portfolio turnover rate for the period ended February 29, 2008 remained the same. See Note 4. |
See notes to financial statements.
80 | 2008 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 Feb. 29, 2008 (Unaudited) | Year ended Aug. 31, 2007 | Year ended Aug. 31, 2006 | Year ended Aug. 31, 2005 | Year ended Aug. 31, 2004 | Year ended Aug. 31, 2003 | |||||||||||||||||||
Net asset value, beginning of period | $ | 29.87 | $ | 24.69 | $ | 20.30 | $ | 14.33 | $ | 12.25 | $ | 9.49 | ||||||||||||
Income from investment operations: | ||||||||||||||||||||||||
Net investment incomea | 0.22 | 0.35 | 0.25 | 0.17 | 0.11 | 0.10 | ||||||||||||||||||
Net realized and unrealized gainb | 2.41 | 5.11 | 4.29 | 6.00 | 2.17 | 2.69 | ||||||||||||||||||
Total from investment operations | 2.63 | 5.46 | 4.54 | 6.17 | 2.28 | 2.79 | ||||||||||||||||||
Less distributions from: | ||||||||||||||||||||||||
Net investment income | (0.39 | ) | (0.28 | ) | (0.15 | ) | (0.20 | ) | (0.20 | ) | (0.03 | ) | ||||||||||||
Total distributions | (0.39 | ) | (0.28 | ) | (0.15 | ) | (0.20 | ) | (0.20 | ) | (0.03 | ) | ||||||||||||
Net asset value, end of period | $ | 32.11 | $ | 29.87 | $ | 24.69 | $ | 20.30 | $ | 14.33 | $ | 12.25 | ||||||||||||
Total return | 8.81 | %c | 22.33 | % | 22.46 | % | 43.35 | % | 18.70 | % | 29.47 | % | ||||||||||||
Ratios/Supplemental data: | ||||||||||||||||||||||||
Net assets, end of period (000s) | $ | 1,910,662 | $ | 1,323,122 | $ | 1,101,161 | $ | 420,301 | $ | 325,298 | $ | 503,407 | ||||||||||||
Ratio of expenses to average net assetsd | 0.51 | % | 0.52 | % | 0.54 | % | 0.57 | % | 0.70 | %e | 0.84 | % | ||||||||||||
Ratio of expenses to average net assets exclusive of foreign taxesd | n/a | 0.52 | % | n/a | n/a | n/a | n/a | |||||||||||||||||
Ratio of net investment income to average net assetsd | 1.39 | % | 1.32 | % | 1.09 | % | 1.00 | % | 0.81 | % | 0.98 | % | ||||||||||||
Portfolio turnover ratef | 7 | % | 8 | % | 20 | % | 9 | % | 10 | % | 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 | 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 | 81 |
Table of Contents
Financial Highlights (Continued)
iSHARES®, INC.
(For a share outstanding throughout the period)
iShares MSCI Chile Index Fund | ||||
Period from Nov. 12, 2007a to Feb. 29, 2008 (Unaudited) | ||||
Net asset value, beginning of period | $ | 48.84 | ||
Income from investment operations: | ||||
Net investment incomeb | 0.14 | |||
Net realized and unrealized lossc | (0.09 | ) | ||
Total from investment operations | 0.05 | |||
Less distributions from: | ||||
Net investment income | (0.05 | ) | ||
Total distributions | (0.05 | ) | ||
Net asset value, end of period | $ | 48.84 | ||
Total return | 0.10 | %d | ||
Ratios/Supplemental data: | ||||
Net assets, end of period (000s) | $ | 43,958 | ||
Ratio of expenses to average net assetse | 0.63 | % | ||
Ratio of net investment income to average net assetse | 0.99 | % | ||
Portfolio turnover ratef | 1 | % |
a | Commencement of operations. |
b | Based on average shares outstanding throughout the period. |
c | The amount 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 rate includes 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 period ended February 29, 2008 remained the same. See Note 4. |
See notes to financial statements.
82 | 2008 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 Feb. 29, 2008 | Year ended Aug. 31, 2007 | Year ended Aug. 31, 2006 | Year ended Aug. 31, 2005 | Year ended Aug. 31, 2004 | Year ended Aug. 31, 2003 | |||||||||||||||||||
Net asset value, beginning of period | $ | 18.30 | $ | 14.20 | $ | 13.01 | $ | 10.91 | $ | 9.03 | $ | 7.99 | ||||||||||||
Income from investment operations: | ||||||||||||||||||||||||
Net investment incomea | 0.13 | 0.47 | 0.38 | 0.33 | 0.28 | 0.23 | ||||||||||||||||||
Net realized and unrealized gainb | 1.08 | 3.94 | 1.17 | 2.04 | 1.75 | 0.95 | ||||||||||||||||||
Total from investment operations | 1.21 | 4.41 | 1.55 | 2.37 | 2.03 | 1.18 | ||||||||||||||||||
Less distributions from: | ||||||||||||||||||||||||
Net investment income | (0.38 | ) | (0.31 | ) | (0.36 | ) | (0.27 | ) | (0.15 | ) | (0.14 | ) | ||||||||||||
Total distributions | (0.38 | ) | (0.31 | ) | (0.36 | ) | (0.27 | ) | (0.15 | ) | (0.14 | ) | ||||||||||||
Net asset value, end of period | $ | 19.13 | $ | 18.30 | $ | 14.20 | $ | 13.01 | $ | 10.91 | $ | 9.03 | ||||||||||||
Total return | 6.33 | %c | 31.44 | % | 12.20 | % | 21.96 | % | 22.69 | % | 15.14 | % | ||||||||||||
Ratios/Supplemental data: | ||||||||||||||||||||||||
Net assets, end of period (000s) | $ | 2,436,645 | $ | 1,445,309 | $ | 882,712 | $ | 637,985 | $ | 449,923 | $ | 250,627 | ||||||||||||
Ratio of expenses to average net assetsd | 0.51 | % | 0.52 | % | 0.54 | % | 0.57 | % | 0.80 | % | 0.84 | % | ||||||||||||
Ratio of net investment income to average net assetsd | 1.25 | % | 2.92 | % | 2.87 | % | 2.75 | % | 2.78 | % | 3.06 | % | ||||||||||||
Portfolio turnover ratee | 7 | % | 9 | % | 10 | % | 6 | % | 5 | % | 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 | 83 |
Table of Contents
Financial Highlights (Continued)
iSHARES®, INC.
(For a share outstanding throughout the period)
iShares MSCI Japan Small Cap Index Fund | ||||
Period from Dec. 20, 2007a to Feb. 29, 2008 (Unaudited) | ||||
Net asset value, beginning of period | $ | 48.85 | ||
Income from investment operations: | ||||
Net investment incomeb | 0.05 | |||
Net realized and unrealized lossc | (0.92 | ) | ||
Total from investment operations | (0.87 | ) | ||
Less distributions from: | ||||
Net investment income | (0.02 | ) | ||
Total distributions | (0.02 | ) | ||
Net asset value, end of period | $ | 47.96 | ||
Total return | (1.78 | )%d | ||
Ratios/Supplemental data: | ||||
Net assets, end of period (000s) | $ | 9,592 | ||
Ratio of expenses to average net assetse | 0.51 | % | ||
Ratio of net investment income to average net assetse | 0.60 | % | ||
Portfolio turnover ratef | 0 | % |
a | Commencement of operations. |
b | Based on average shares outstanding throughout the period. |
c | The amount 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 rate excludes securities received or delivered as a result of processing capital share transactions in Creation Units. |
See notes to financial statements.
84 | 2008 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Financial Highlights (Continued)
iSHARES®, INC.
(For a share outstanding throughout each period)
iShares MSCI Malaysia Index Fund | ||||||||||||||||||||||||
Six months Feb. 29, 2008 | Year ended Aug. 31, 2007 | Year ended Aug. 31, 2006 | Year ended Aug. 31, 2005 | Year ended Aug. 31, 2004 | Year ended Aug. 31, 2003 | |||||||||||||||||||
Net asset value, beginning of period | $ | 10.97 | $ | 7.75 | $ | 7.19 | $ | 6.54 | $ | 5.99 | $ | 5.68 | ||||||||||||
Income from investment operations: | ||||||||||||||||||||||||
Net investment incomea | 0.18 | 0.34 | 0.26 | 0.20 | 0.13 | 0.10 | ||||||||||||||||||
Net realized and unrealized gainb | 2.00 | 3.08 | 0.59 | 0.61 | 0.52 | 0.30 | ||||||||||||||||||
Total from investment operations | 2.18 | 3.42 | 0.85 | 0.81 | 0.65 | 0.40 | ||||||||||||||||||
Less distributions from: | ||||||||||||||||||||||||
Net investment income | (0.41 | ) | (0.20 | ) | (0.29 | ) | (0.16 | ) | (0.10 | ) | (0.09 | ) | ||||||||||||
Total distributions | (0.41 | ) | (0.20 | ) | (0.29 | ) | (0.16 | ) | (0.10 | ) | (0.09 | ) | ||||||||||||
Net asset value, end of period | $ | 12.74 | $ | 10.97 | $ | 7.75 | $ | 7.19 | $ | 6.54 | $ | 5.99 | ||||||||||||
Total return | 20.02 | %c | 44.64 | % | 12.35 | % | 12.39 | % | 11.01 | % | 7.39 | % | ||||||||||||
Ratios/Supplemental data: | ||||||||||||||||||||||||
Net assets, end of period (000s) | $ | 1,477,532 | $ | 741,440 | $ | 374,334 | $ | 387,575 | $ | 224,218 | $ | 99,730 | ||||||||||||
Ratio of expenses to average net assetsd | 0.51 | % | 0.51 | % | 0.54 | % | 0.57 | % | 0.79 | % | 0.84 | % | ||||||||||||
Ratio of net investment income to average net assetsd | 2.86 | % | 3.21 | % | 3.46 | % | 2.85 | % | 1.97 | % | 1.91 | % | ||||||||||||
Portfolio turnover ratee | 9 | % | 87 | % | 60 | % | 15 | % | 39 | % | 35 | % |
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 29, 2008 and the years ended August 31, 2007, August 31, 2006 and August 31, 2005 would have been 8%, 3%, 9% and 9%, respectively. See Note 4. |
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 Mexico Index Fund | ||||||||||||||||||||||||
Six months Feb. 29, 2008 | Year ended Aug. 31, 2007 | Year ended Aug. 31, 2006 | Year ended Aug. 31, 2005 | Year ended Aug. 31, 2004 | Year ended Aug. 31, 2003 | |||||||||||||||||||
Net asset value, beginning of period | $ | 58.35 | $ | 41.30 | $ | 29.04 | $ | 19.35 | $ | 15.04 | $ | 13.65 | ||||||||||||
Income from investment operations: | ||||||||||||||||||||||||
Net investment incomea | 0.58 | 0.64 | 0.76 | 0.42 | 0.26 | 0.19 | ||||||||||||||||||
Net realized and unrealized gain (loss)b | (2.12 | ) | 16.87 | 11.98 | 9.55 | 4.26 | 1.72 | |||||||||||||||||
Total from investment operations | (1.54 | ) | 17.51 | 12.74 | 9.97 | 4.52 | 1.91 | |||||||||||||||||
Less distributions from: | ||||||||||||||||||||||||
Net investment income | (1.05 | ) | (0.46 | ) | (0.48 | ) | (0.28 | ) | (0.21 | ) | (0.52 | ) | ||||||||||||
Total distributions | (1.05 | ) | (0.46 | ) | (0.48 | ) | (0.28 | ) | �� | (0.21 | ) | (0.52 | ) | |||||||||||
Net asset value, end of period | $ | 55.76 | $ | 58.35 | $ | 41.30 | $ | 29.04 | $ | 19.35 | $ | 15.04 | ||||||||||||
Total return | (2.64 | )%c | 42.58 | % | 44.11 | % | 51.77 | % | 30.28 | % | 14.60 | % | ||||||||||||
Ratios/Supplemental data: | ||||||||||||||||||||||||
Net assets, end of period (000s) | $ | 1,449,706 | $ | 1,382,810 | $ | 764,107 | $ | 255,557 | $ | 129,623 | $ | 60,155 | ||||||||||||
Ratio of expenses to average net assetsd | 0.51 | % | 0.51 | % | 0.54 | % | 0.57 | % | 0.78 | % | 0.84 | % | ||||||||||||
Ratio of net investment income to average net assetsd | 2.03 | % | 1.19 | % | 2.06 | % | 1.70 | % | 1.40 | % | 1.43 | % | ||||||||||||
Portfolio turnover ratee | 6 | % | 14 | % | 12 | % | 9 | % | 12 | % | 13 | % |
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 | 2008 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
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. 29, 2008 (Unaudited) | Year ended Aug. 31, 2007 | Year ended Aug. 31, 2006 | Year ended Aug. 31, 2005 | Year ended Aug. 31, 2004 | Year ended Aug. 31, 2003 | |||||||||||||||||||
Net asset value, beginning of period | $ | 144.93 | $ | 112.03 | $ | 97.57 | $ | 75.73 | $ | 62.03 | $ | 52.51 | ||||||||||||
Income from investment operations: | ||||||||||||||||||||||||
Net investment incomea | 2.20 | 4.55 | 3.83 | 3.70 | 2.68 | 1.87 | ||||||||||||||||||
Net realized and unrealized gainb | 2.45 | 33.55 | 14.33 | 21.15 | 12.53 | 8.53 | ||||||||||||||||||
Total from investment operations | 4.65 | 38.10 | 18.16 | 24.85 | 15.21 | 10.40 | ||||||||||||||||||
Less distributions from: | ||||||||||||||||||||||||
Net investment income | (7.11 | ) | (5.20 | ) | (3.70 | ) | (3.01 | ) | (1.51 | ) | (0.88 | ) | ||||||||||||
Net realized gain | (0.18 | ) | – | – | – | – | – | |||||||||||||||||
Total distributions | (7.29 | ) | (5.20 | ) | (3.70 | ) | (3.01 | ) | (1.51 | ) | (0.88 | ) | ||||||||||||
Net asset value, end of period | $ | 142.29 | $ | 144.93 | $ | 112.03 | $ | 97.57 | $ | 75.73 | $ | 62.03 | ||||||||||||
Total return | 3.03 | %c | 34.86 | % | 19.17 | % | 33.27 | % | 24.74 | % | 20.15 | % | ||||||||||||
Ratios/Supplemental data: | ||||||||||||||||||||||||
Net assets, end of period (000s) | $ | 3,671,070 | $ | 3,536,295 | $ | 2,094,931 | $ | 1,522,107 | $ | 651,250 | $ | 223,298 | ||||||||||||
Ratio of expenses to average net assetsd | 0.50 | % | 0.50 | % | 0.50 | % | 0.50 | % | 0.50 | % | 0.50 | % | ||||||||||||
Ratio of net investment income to average net assetsd | 2.83 | % | 3.43 | % | 3.67 | % | 4.09 | % | 3.68 | % | 3.47 | % | ||||||||||||
Portfolio turnover ratee | 8 | % | 11 | % | 8 | % | 16 | % | 8 | % | 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 | 87 |
Table of Contents
Financial Highlights (Continued)
iSHARES®, INC.
(For a share outstanding throughout each period)
iShares MSCI Singapore Index Fund | ||||||||||||||||||||||||
Six months Feb. 29, 2008 | Year ended Aug. 31, 2007 | Year ended Aug. 31, 2006 | Year ended Aug. 31, 2005 | Year ended Aug. 31, 2004 | Year ended Aug. 31, 2003 | |||||||||||||||||||
Net asset value, beginning of period | $ | 13.28 | $ | 9.11 | $ | 7.77 | $ | 6.52 | $ | 5.38 | $ | 5.01 | ||||||||||||
Income from investment operations: | ||||||||||||||||||||||||
Net investment incomea | 0.13 | 0.47 | 0.40 | 0.38 | 0.22 | 0.12 | ||||||||||||||||||
Net realized and unrealized gain (loss)b | (0.35 | ) | 4.01 | 1.23 | 1.15 | 1.04 | 0.33 | |||||||||||||||||
Total from investment operations | (0.22 | ) | 4.48 | 1.63 | 1.53 | 1.26 | 0.45 | |||||||||||||||||
Less distributions from: | ||||||||||||||||||||||||
Net investment income | (0.51 | ) | (0.31 | ) | (0.29 | ) | (0.28 | ) | (0.12 | ) | (0.08 | ) | ||||||||||||
Total distributions | (0.51 | ) | (0.31 | ) | (0.29 | ) | (0.28 | ) | (0.12 | ) | (0.08 | ) | ||||||||||||
Net asset value, end of period | $ | 12.55 | $ | 13.28 | $ | 9.11 | $ | 7.77 | $ | 6.52 | $ | 5.38 | ||||||||||||
Total return | (1.82 | )%c | 49.92 | % | 21.61 | % | 24.06 | % | 23.47 | % | 9.30 | % | ||||||||||||
Ratios/Supplemental data: | ||||||||||||||||||||||||
Net assets, end of period (000s) | $ | 1,705,296 | $ | 1,669,210 | $ | 574,620 | $ | 341,137 | $ | 170,047 | $ | 108,202 | ||||||||||||
Ratio of expenses to average net assetsd | 0.51 | % | 0.51 | % | 0.54 | % | 0.57 | % | 0.79 | % | 0.84 | % | ||||||||||||
Ratio of net investment income to average net assetsd | 1.86 | % | 3.80 | % | 4.74 | % | 5.19 | % | 3.50 | % | 2.67 | % | ||||||||||||
Portfolio turnover ratee | 8 | % | 8 | % | 6 | % | 8 | % | 9 | % | 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.
88 | 2008 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Financial Highlights (Continued)
iSHARES®, INC.
(For a share outstanding throughout each period)
iShares MSCI South Africa Index Fund | ||||||||||||||||||||||||
Six months Feb. 29, 2008 | Year ended Aug. 31, 2007 | Year ended Aug. 31, 2006 | Year ended Aug. 31, 2005 | Year ended Aug. 31, 2004 | Period from Aug. 31, 2003 | |||||||||||||||||||
Net asset value, beginning of period | $ | 124.52 | $ | 97.67 | $ | 82.99 | $ | 59.92 | $ | 46.81 | $ | 38.72 | ||||||||||||
Income from investment operations: | ||||||||||||||||||||||||
Net investment incomeb | 2.81 | 2.99 | 2.87 | 1.92 | 1.23 | 0.89 | ||||||||||||||||||
Net realized and unrealized gain (loss)c | (3.46 | ) | 26.37 | 13.78 | 22.36 | 13.24 | 7.20 | |||||||||||||||||
Total from investment operations | (0.65 | ) | 29.36 | 16.65 | 24.28 | 14.47 | 8.09 | |||||||||||||||||
Less distributions from: | ||||||||||||||||||||||||
Net investment income | (2.62 | ) | (2.51 | ) | (1.97 | ) | (1.21 | ) | (1.36 | ) | – | |||||||||||||
Total distributions | (2.62 | ) | (2.51 | ) | (1.97 | ) | (1.21 | ) | (1.36 | ) | – | |||||||||||||
Net asset value, end of period | $ | 121.25 | $ | 124.52 | $ | 97.67 | $ | 82.99 | $ | 59.92 | $ | 46.81 | ||||||||||||
Total return | (0.59 | )%d | 30.34 | % | 20.06 | % | 40.62 | % | 31.30 | % | 20.89 | %d | ||||||||||||
Ratios/Supplemental data: | ||||||||||||||||||||||||
Net assets, end of period (000s) | $ | 581,977 | $ | 466,940 | $ | 297,898 | $ | 153,530 | $ | 92,882 | $ | 81,914 | ||||||||||||
Ratio of expenses to average net assetse | 0.63 | % | 0.68 | % | 0.70 | % | 0.74 | % | 0.95 | % | 0.99 | % | ||||||||||||
Ratio of net investment income to average net assetse | 4.27 | % | 2.58 | % | 2.79 | % | 2.62 | % | 2.23 | % | 3.86 | % | ||||||||||||
Portfolio turnover ratef | 12 | % | 8 | % | 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.
FINANCIAL HIGHLIGHTS | 89 |
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Financial Highlights (Continued)
iSHARES®, INC.
(For a share outstanding throughout each period)
iShares MSCI South Korea Index Fund | ||||||||||||||||||||||||
Six months Feb. 29, 2008 | Year ended Aug. 31, 2007 | Year ended Aug. 31, 2006 | Year ended Aug. 31, 2005 | Year ended Aug. 31, 2004 | Year ended Aug. 31, 2003 | |||||||||||||||||||
Net asset value, beginning of period | $ | 63.60 | $ | 46.00 | $ | 34.75 | $ | 24.17 | $ | 23.06 | $ | 21.17 | ||||||||||||
Income from investment operations: | ||||||||||||||||||||||||
Net investment incomea | 0.71 | 0.51 | 0.31 | 0.46 | 0.22 | 0.19 | ||||||||||||||||||
Net realized and unrealized gain (loss)b | (5.12 | ) | 17.42 | 11.20 | 10.22 | 1.13 | 1.70 | |||||||||||||||||
Total from investment operations | (4.41 | ) | 17.93 | 11.51 | 10.68 | 1.35 | 1.89 | |||||||||||||||||
Less distributions from: | ||||||||||||||||||||||||
Net investment income | (0.37 | ) | (0.33 | ) | (0.26 | ) | (0.10 | ) | (0.24 | ) | – | |||||||||||||
Total distributions | (0.37 | ) | (0.33 | ) | (0.26 | ) | (0.10 | ) | (0.24 | ) | – | |||||||||||||
Net asset value, end of period | $ | 58.82 | $ | 63.60 | $ | 46.00 | $ | 34.75 | $ | 24.17 | $ | 23.06 | ||||||||||||
Total return | (7.00 | )%c | 39.18 | % | 33.16 | % | 44.29 | % | 5.83 | % | 8.93 | % | ||||||||||||
Ratios/Supplemental data: | ||||||||||||||||||||||||
Net assets, end of period (000s) | $ | 3,323,453 | $ | 2,429,453 | $ | 1,621,334 | $ | 698,455 | $ | 315,464 | $ | 154,486 | ||||||||||||
Ratio of expenses to average net assetsd | 0.63 | % | 0.68 | % | 0.70 | % | 0.74 | % | 0.94 | % | 0.99 | % | ||||||||||||
Ratio of expenses to average net assets exclusive of foreign taxesd | n/a | 0.68 | % | 0.70 | % | 0.74 | % | 0.94 | % | 0.99 | % | |||||||||||||
Ratio of net investment income to average net assetsd | 2.21 | % | 0.96 | % | 0.71 | % | 1.49 | % | 0.87 | % | 0.98 | % | ||||||||||||
Portfolio turnover ratee | 11 | % | 20 | % | 47 | % | 30 | % | 29 | % | 39 | % |
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 29, 2008 and the years ended August 31, 2007, August 31, 2006 and August 31, 2005 would have been 9%, 6%, 14% and 9%, respectively. See Note 4. |
See notes to financial statements.
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iSHARES®, INC.
(For a share outstanding throughout each period)
iShares MSCI Taiwan Index Fund | ||||||||||||||||||||||||
Six months Feb. 29, 2008 | Year ended Aug. 31, 2007 | Year ended Aug. 31, 2006 | Year ended Aug. 31, 2005 | Year ended Aug. 31, 2004 | Year ended Aug. 31, 2003 | |||||||||||||||||||
Net asset value, beginning of period | $ | 15.99 | $ | 12.57 | $ | 11.57 | $ | 10.66 | $ | 10.79 | $ | 8.82 | ||||||||||||
Income from investment operations: | ||||||||||||||||||||||||
Net investment incomea | 0.05 | 0.38 | 0.34 | 0.27 | 0.14 | 0.04 | ||||||||||||||||||
Net realized and unrealized gain (loss)b | (0.05 | ) | 3.34 | 0.80 | 0.72 | (0.25 | ) | 1.93 | ||||||||||||||||
Total from investment operations | – | 3.72 | 1.14 | 0.99 | (0.11 | ) | 1.97 | |||||||||||||||||
Less distributions from: | ||||||||||||||||||||||||
Net investment income | (0.39 | ) | (0.30 | ) | (0.14 | ) | (0.08 | ) | (0.02 | ) | – | |||||||||||||
Total distributions | (0.39 | ) | (0.30 | ) | (0.14 | ) | (0.08 | ) | (0.02 | ) | – | |||||||||||||
Net asset value, end of period | $ | 15.60 | $ | 15.99 | $ | 12.57 | $ | 11.57 | $ | 10.66 | $ | 10.79 | ||||||||||||
Total return | 0.17 | %c | 29.91 | % | 9.84 | % | 9.28 | % | (1.10 | )% | 22.45 | % | ||||||||||||
Ratios/Supplemental data: | ||||||||||||||||||||||||
Net assets, end of period (000s) | $ | 2,983,155 | $ | 2,769,764 | $ | 1,893,751 | $ | 752,640 | $ | 390,228 | $ | 234,727 | ||||||||||||
Ratio of expenses to average net assetsd | 0.64 | % | 0.77 | % | 0.85 | % | 1.03 | % | 1.19 | %e | 1.31 | % | ||||||||||||
Ratio of expenses to average net assets exclusive of foreign taxesd | 0.63 | % | 0.68 | % | 0.70 | % | 0.74 | % | 0.92 | % | 0.99 | % | ||||||||||||
Ratio of net investment income to average net assetsd | 0.61 | % | 2.61 | % | 2.74 | % | 2.34 | % | 1.23 | % | 0.43 | % | ||||||||||||
Portfolio turnover ratef | 17 | % | 35 | % | 29 | % | 20 | % | 19 | % | 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 | 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 29, 2008 and the years ended August 31, 2007, August 31, 2006 and August 31, 2005 would have been 6%, 12%, 10% and 10%, respectively. See Note 4. |
See notes to financial statements.
FINANCIAL HIGHLIGHTS | 91 |
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.
These financial statements relate only to the iShares MSCI Australia, iShares MSCI Brazil, iShares MSCI BRIC, iShares MSCI Canada, iShares MSCI Chile, iShares MSCI Hong Kong, iShares MSCI Japan Small Cap, 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 iShares MSCI BRIC Index Fund and iShares MSCI Chile Index Fund commenced operations on November 12, 2007 and iShares MSCI Japan Small Cap Index Fund commenced operations on December 20, 2007.
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 MSCI 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
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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”).
Investments that may be valued using fair value pricing include, but are not limited to: (i) an unlisted security related to corporate actions; (ii) a restricted security (i.e., one that may not be publicly sold without registration under the Securities Act of 1933, as amended); (iii) a security whose trading has been suspended or which has been de-listed from its primary trading exchange; (iv) a security that is thinly traded; (v) a security in default or bankruptcy proceedings for which there is no current market quotation; (vi) a security affected by currency controls or restrictions; and (vii) a security affected by a significant event (i.e., an event that occurs after the close of the markets on which the security is traded but before the time as of which the Fund’s NAV is computed and that may materially affect the value of the Fund’s investments). Examples of events that may be “significant events” are government actions, natural disasters, armed conflict, acts of terrorism, and significant market fluctuations.
Valuing a Fund’s investments using fair value pricing will result in using prices for those investments that may differ from current market valuations. Accordingly, fair value pricing could result in a difference between the prices used to calculate a Fund’s net asset value and the prices used by the Fund’s benchmark index, which, in turn, could result in a difference between the Fund’s performance and the performance of the Fund’s benchmark index.
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
The Funds may be subject to foreign taxes (a portion of which may be reclaimable) on income, corporate events, capital gains on investments or currency repatriation. All foreign taxes are recorded in accordance with the applicable foreign tax regulations and rates that exist in the foreign markets in which the Funds invest. These foreign taxes, if any, are paid by the Funds and are disclosed in their Statements of Operations. Foreign taxes payable as of February 29, 2008, if any, are reflected in the Funds’ Statements of Assets and Liabilities.
NOTESTO FINANCIAL STATEMENTS | 93 |
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iSHARES®, INC.
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 ordinary income and any net capital 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 29, 2008.
The Funds had tax basis net capital loss carryforwards as of August 31, 2007, 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 | Expiring 2015 | Total | ||||||||||||||||||
Australia | $ | 71,019 | $ | 1,971,994 | $ | 3,625,203 | $ | 650,082 | $ | 596,240 | $ | 384,424 | $ | – | $ | 7,066 | $ | 7,306,028 | |||||||||
Canada | – | – | – | – | – | 2,931,648 | – | 5,363,291 | 8,294,939 | ||||||||||||||||||
Hong Kong | – | – | 4,971,970 | 2,870,602 | 2,330,414 | 468,716 | 425,440 | 2,899,247 | 13,966,389 | ||||||||||||||||||
Malaysia | – | – | 9,819,029 | 2,898,105 | 775,477 | 6,820,474 | 1,543,708 | 3,424,287 | 25,281,080 | ||||||||||||||||||
Mexico | – | – | 47,326 | 2,329,290 | 3,136,171 | 12,912 | 632,766 | – | 6,158,465 | ||||||||||||||||||
Singapore | – | – | 1,934,119 | 4,428,316 | 4,256,421 | 2,558,348 | – | – | 13,177,204 | ||||||||||||||||||
South Africa | – | – | – | – | 527,613 | – | 260,738 | 1,607,845 | 2,396,196 | ||||||||||||||||||
South Korea | – | 556,540 | 666,642 | 504,041 | 3,363,449 | 11,590,303 | 3,172,573 | 38,097,223 | 57,950,771 | ||||||||||||||||||
Taiwan | – | – | 12,532,361 | 8,689,663 | 9,129,874 | 12,022,719 | 14,435,986 | 64,999,586 | 121,810,189 |
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.
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iSHARES®, INC.
As of February 29, 2008, 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 | Gross Unrealized | Net Unrealized | ||||||||||
Australia | $ | 1,542,736,891 | $ | 117,619,524 | $ | (130,474,405 | ) | $ | (12,854,881 | ) | ||||
Brazil | 4,132,615,078 | 3,455,669,128 | (75,645,176 | ) | 3,380,023,952 | |||||||||
BRIC | 83,643,091 | 2,025,359 | (3,900,929 | ) | (1,875,570 | ) | ||||||||
Canada | 1,741,806,957 | 240,183,692 | (74,559,495 | ) | 165,624,197 | |||||||||
Chile | 43,773,645 | 1,116,302 | (936,632 | ) | 179,670 | |||||||||
Hong Kong | 2,669,355,414 | 168,685,754 | (81,670,334 | ) | 87,015,420 | |||||||||
Japan Small Cap | 9,436,708 | 423,449 | (229,507 | ) | 193,942 | |||||||||
Malaysia | 1,113,579,560 | 364,843,317 | (3,345,875 | ) | 361,497,442 | |||||||||
Mexico | 1,620,180,341 | 11,794,358 | (109,685,876 | ) | (97,891,518 | ) | ||||||||
Pacific ex-Japan | 2,965,247,926 | 972,987,239 | (59,264,603 | ) | 913,722,636 | |||||||||
Singapore | 1,790,617,935 | 99,339,363 | (64,156,996 | ) | 35,182,367 | |||||||||
South Africa | 638,623,872 | 36,985,067 | (96,683,647 | ) | (59,698,580 | ) | ||||||||
South Korea | 3,339,557,013 | 762,179,411 | (67,547,121 | ) | 694,632,290 | |||||||||
Taiwan | 2,307,232,385 | 757,034,979 | (86,781,883 | ) | 670,253,096 |
The Funds adopted Financial Accounting Standards Board (“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 a tax position taken or expected to be taken in a tax return. FIN 48 provides guidance on the measurement, recognition, classification and disclosures of tax positions, along with accounting for the related interest and penalties. Management has reviewed the tax positions as of February 29, 2008, inclusive of the prior three open tax return years, and has determined that the implementation of FIN 48 did not have a material impact on the Funds’ financial statements.
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 Japan Small Cap, iShares MSCI Malaysia, iShares MSCI Mexico and iShares MSCI Singapore Index Funds, BGFA is entitled to an annual
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iSHARES®, INC.
investment advisory fee based on each Fund’s allocable portion of the aggregate of the average daily net assets of these Funds and other iShares Funds in the same advisory fee category, 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 Chile, 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 five 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, up to and including $8 billion | |
0.57 | Over $8 billion |
For its investment advisory services to the iShares MSCI BRIC Index 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 the Fund and another iShares Fund in the same advisory fee category, as follows:
Investment Advisory Fee | Aggregate 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 |
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.
State Street Bank and Trust Company (“State Street”) serves as administrator, custodian and transfer agent for the Company. As compensation for its services, State Street 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.
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iSHARES®, INC.
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 Funds. 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 29, 2008, BGI earned securities lending agent fees as follows:
iShares MSCI Index Fund | Securities Lending Agent Fees | ||
Australia | $ | 290,242 | |
Brazil | 1,904 | ||
BRIC | 2,523 | ||
Hong Kong | 934,347 | ||
Japan Small Cap | 75 |
iShares MSCI Index Fund | Securities Lending Agent Fees | ||
Mexico | $ | 527,762 | |
Pacific ex-Japan | 781,001 | ||
Singapore | 476,310 | ||
South Africa | 29,707 | ||
South Korea | 4,109,161 |
Cross trades for the six months ended February 29, 2008, 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, 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.
Each Fund may invest its securities lending cash collateral, if any, in the BGI Cash Premier Fund LLC (“Premier Fund”), an affiliated private money market fund managed by BGFA. Although the Premier Fund is not registered as an investment company under the 1940 Act, it intends to operate as a money market fund in compliance with Rule 2a-7 under the 1940 Act. See Note 5 for additional information regarding the Premier Fund.
As of February 29, 2008, certain directors and officers of the Company are also officers of BGI and/or BGFA.
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iSHARES®, INC.
3. INVESTMENT PORTFOLIO TRANSACTIONS
Purchases and sales of investments (excluding in-kind transactions and short-term investments) for the six months ended February 29, 2008, were as follows:
iShares MSCI Index Fund | Purchases | Sales | ||||
Australia | $ | 87,650,743 | $ | 134,579,230 | ||
Brazil | 2,673,961,160 | 1,364,173,816 | ||||
BRIC | 26,805,834 | 1,999,631 | ||||
Canada | 125,752,472 | 122,388,075 | ||||
Chile | 43,981,676 | 265,538 | ||||
Hong Kong | 168,724,465 | 173,479,840 | ||||
Japan Small Cap | – | 4,418 | ||||
Malaysia | 701,014,125 | 90,444,787 | ||||
Mexico | 86,190,295 | 95,091,047 | ||||
Pacific ex-Japan | 304,011,251 | 369,982,239 | ||||
Singapore | 149,444,017 | 173,027,147 | ||||
South Africa | 76,417,424 | 82,089,635 | ||||
South Korea | 1,600,173,452 | 343,505,946 | ||||
Taiwan | 735,242,697 | 492,807,170 |
In-kind transactions (see Note 4) for the six months ended February 29, 2008, were as follows:
iShares MSCI Index Fund | In-kind Purchases | In-kind Sales | ||||
Australia | $ | 576,118,243 | $ | 481,419,870 | ||
BRIC | 57,508,794 | – | ||||
Canada | 1,029,675,538 | 505,988,558 | ||||
Hong Kong | 1,419,333,645 | 437,983,318 | ||||
Japan Small Cap | 9,381,339 | – | ||||
Mexico | 1,067,023,175 | 935,745,270 | ||||
Pacific ex-Japan | 335,075,114 | 141,586,141 | ||||
Singapore | 477,560,886 | 299,051,284 | ||||
South Africa | 379,874,985 | 210,355,397 |
4. CAPITAL SHARE TRANSACTIONS
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 deposit of a designated portfolio of equity securities, which constitutes a substantial replication, or a portfolio sampling representation, of the corresponding MSCI Index and an amount of cash (except for the iShares MSCI Brazil, iShares MSCI BRIC, iShares MSCI Chile, iShares MSCI Malaysia, iShares MSCI
98 | 2008 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Notes to Financial Statements (Unaudited) (Continued)
iSHARES®, INC.
South Korea and iShares MSCI Taiwan Index Funds which are offered in Creation Units solely or partially for cash in U.S. dollars). Investors purchasing and redeeming Creation Units pay a purchase transaction fee and a redemption transaction fee directly to State Street, 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.
From time to time, settlement of securities related to in-kind contributions or in-kind redemptions may be delayed. In such cases, securities related to in-kind contributions are reflected as “Due from custodian” and securities related to in-kind redemptions are reflected as “Securities related to in-kind transactions” in the Statements of Assets and Liabilities.
5. LOANS OF PORTFOLIO SECURITIES
Each Fund may lend its investment securities to approved borrowers, such as brokers, dealers and other financial institutions. The borrower pledges and maintains with the Fund collateral consisting of cash, an irrevocable letter of credit issued by a bank, or securities issued or guaranteed by the U.S. government. The initial collateral received by each Fund is required to have a value of at least 102% of the market value of the loaned securities for securities traded on U.S. exchanges and a value of at least 105% for all other securities. The collateral is maintained thereafter, at a value equal to at least 100% of the current market value of the securities on loan. The risks to the Funds of securities lending are that the borrower may not provide additional collateral when required or may not return the securities when due.
As of February 29, 2008, certain Funds had loaned securities which were collateralized by cash. The cash collateral received was invested in the Premier Fund. The Premier Fund seeks to achieve its investment objective by investing in a portfolio of high-quality, short-term fixed-income instruments, including money market funds (which may be managed by BGFA or its affiliate) and other instruments that, at the time of investment, have remaining maturities of 397 calendar days or less from the date of acquisition.
The market value of the securities on loan as of February 29, 2008 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 PRONOUNCEMENT
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. Management does not believe that the adoption of this standard will have a material impact on the Funds’ financial statements.
NOTESTO FINANCIAL STATEMENTS | 99 |
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Notes:
100 | 2008 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
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 S&P North American Natural Resources Sector (IGE)
iShares S&P North American Technology- Multimedia Networking (IGN)
iShares S&P North American Technology- Semiconductors (IGW)
iShares S&P North American Technology-Software (IGV)
iShares S&P North American Technology Sector (IGM)
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. (IYY)
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 FTSE NAREIT Industrial/Office (FIO)
iShares FTSE NAREIT Mortgage REITs (REM)
iShares FTSE NAREIT Real Estate 50 (FTY)
iShares FTSE NAREIT Residential (REZ)
iShares FTSE NAREIT Retail (RTL)
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 Infrastructure (IGF)
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 Chile (ECH)
iShares MSCI France (EWQ)
iShares MSCI Germany (EWG)
iShares MSCI Hong Kong (EWH)
iShares MSCI Israel Capped Investable Market (EIS)
iShares MSCI Italy (EWI)
iShares MSCI Japan (EWJ)
iShares MSCI Japan Small Cap (SCJ)
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 Thailand Investable Market (THD)
iShares MSCI Turkey Investable Market (TUR)
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 iBoxx $ High Yield Corporate (HYG)
iShares Lehman Government/Credit (GBF)
iShares Lehman Intermediate Government/Credit (GVI)
iShares Lehman MBS (MBB)
iShares S&P National Municipal (MUB)
iShares S&P California Municipal (CMF)
iShares S&P New York Municipal (NYF)
iShares JPMorgan USD Emerging Markets (EMB)
iShares Specialty Index Funds
iShares KLD 400 Social (DSI)
iShares KLD Select SocialSM (KLD)
iShares Dow Jones Select Dividend (DVY)
iShares Dow Jones EPAC Select Dividend (IDV)
iShares S&P U.S. Preferred Stock (PFF)
iShares International Index Funds
iShares FTSE Developed Small Cap ex-North America (IFSM)
iShares FTSE EPRA/NAREIT Global Real Estate ex-U.S. (IFGL)
iShares FTSE EPRA/NAREIT North America (IFNA)
iShares FTSE EPRA/NAREIT Europe (IFEU)
iShares FTSE EPRA/NAREIT Asia (IFAS)
iShares MSCI ACWI (ACWI)
iShares MSCI ACWI ex US (ACWX)
iShares MSCI BRIC (BKF)
iShares MSCI EAFE (EFA)
iShares MSCI EAFE Growth (EFG)
iShares MSCI EAFE Value (EFV)
iShares MSCI EAFE Small Cap (SCZ)
iShares MSCI Emerging Markets (EEM)
iShares MSCI EMU (EZU)
iShares MSCI Kokusai (TOK)
iShares MSCI Pacific ex-Japan (EPP)
iShares S&P Asia 50 (AIA)
iShares S&P Europe 350 (IEV)
iShares S&P Latin America 40 (ILF)
iShares S&P World ex-U.S. Property (WPS)
iSHARES FAMILYOF FUNDS | 101 |
Table of Contents
The iShares® Family of Funds (Continued)
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 Lehman Brothers, nor are they sponsored, endorsed, issued, sold or promoted by Cohen & Steers Capital Management, Inc., Dow Jones & Company, Inc., European Public Real Estate Association (“EPRA®”), FTSE International Limited (“FTSE”), FTSE/Xinhua Index Limited (“FXI”), iBoxx®, J.P. Morgan Securities Inc., KLD Research & Analytics, Inc., MSCI Inc., Morningstar Inc., The NASDAQ Stock Market, Inc., National Association of Real Estate Investment Trusts (“NAREIT”), New York Stock Exchange, Inc., Frank Russell Company, or standard & Poor’s. None of these companies make any representation regarding the advisability of investing in the iShares Funds. Neither SEI nor BGI, nor any of their affiliates, are affiliated with the companies listed above. FXI does not make any warranty regarding the FTSE/Xinhua Index. All rights in the FTSE/Xinhua Index vest in FXI. Neither FTSE nor NAREIT makes any warranty regarding the FTSE NAREIT Real Estate 50 Index, FTSE NAREIT Residential Index, FTSE NAREIT Retail Index, FTSE NAREIT Mortgage REITs Index or FTSE NAREIT Industrial/Office Index; all rights vest in NAREIT. Neither FTSE nor NAREIT makes any warranty regarding the FTSE EPRA/NAREIT Global Real Estate ex-US/North America/Europe/Asia Index; all rights vest in FTSE, NAREIT, and EPRA. All rights in the FTSE Developed Small Cap ex-North America Index vest in FTSE. “FTSE” is a trade- and servicemark of London Stock Exchange and The Financial Times Limited; “Xinhua” is a trade- and servicemark of Xinhua Financial Network Limited. “NAREIT®” is a trademark of NAREIT; “EPRA®” is a trademark of EPRA.
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 2008 Semi-Annual Report.
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102 | 2008 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
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iSHARES® MSCI JAPAN INDEX FUND
Performance as of February 29, 2008
The iShares MSCI Japan Index Fund (the “Fund”) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of publicly traded securities in the aggregate in the Japanese market, as measured by the MSCI Japan Index SM (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to 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 29, 2008, the Fund declined 7.84%, while the Index declined 7.67%.
Average Annual Total Returns | ||||||||||||||||
Year Ended 2/29/08 | Five Years Ended 2/29/08 | Ten Years Ended 2/29/08 | ||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||
(12.51)% | (13.50)% | (12.28)% | 14.24% | 13.60% | 14.90% | 2.37% | 1.94% | 3.13% | ||||||||
Cumulative Total Returns | ||||||||||||||||
Year Ended 2/29/08 | Five Years Ended 2/29/08 | Ten Years Ended 2/29/08 | ||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||
(12.51)% | (13.50)% | (12.28)% | 94.54% | 89.20% | 100.23% | 26.42% | 21.19% | 36.05% |
“Average Annual Total Returns” represent the average annual change in value of an investment over the period(s) indicated. “Cumulative Total Returns” represent the total change in value of an investment over the period(s) 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 table(s) 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 2/29/08 | |||
Sector | Percentage of Net Assets | ||
Consumer Cyclical | 27.14 | % | |
Industrial | 22.08 | ||
Financial | 17.42 | ||
Consumer Non-Cyclical | 10.23 | ||
Basic Materials | 8.31 | ||
Technology | 4.75 | ||
Utilities | 4.46 | ||
Communications | 4.35 | ||
Energy | 1.13 | ||
Short-Term and Other Net Assets | 0.13 | ||
TOTAL | 100.00 | % | |
TEN LARGEST FUND HOLDINGS As of 2/29/08 | |||
Security | Percentage of Net Assets | ||
Toyota Motor Corp. | 5.67 | % | |
Mitsubishi UFJ Financial Group Inc. | 2.95 | ||
Nintendo Co. Ltd. | 2.00 | ||
Honda Motor Co. Ltd. | 1.87 | ||
Canon Inc. | 1.86 | ||
Sumitomo Mitsui Financial Group Inc. | 1.83 | ||
Sony Corp. | 1.81 | ||
Takeda Pharmaceutical Co. Ltd. | 1.75 | ||
Matsushita Electric Industrial Co. Ltd. | 1.67 | ||
Mitsubishi Corp. | 1.59 | ||
TOTAL | 23.00 | % | |
FUND PERFORMANCE OVERVIEW | 1 |
Table of Contents
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, 2007 to February 29, 2008.
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 (9/1/07) | Ending Account Value (2/29/08) | Annualized Expense Ratio | Expenses Paid During Perioda (9/1/07 to 2/29/08) | ||||||
Actual | $1,000.00 | $ 921.60 | 0.51 | % | $2.44 | ||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,022.30 | 0.51 | 2.56 |
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 (182 days) and divided by the number of days in the year (366 days). |
2 | 2008 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited)
iSHARES® MSCI JAPAN INDEX FUND
February 29, 2008
Security | Shares | Value | |||
COMMON STOCKS – 99.87% | |||||
ADVERTISING – 0.25% | |||||
Asatsu-DK Inc. | 106,000 | $ | 3,441,525 | ||
Dentsu Inc. | 5,300 | 12,371,164 | |||
Hakuhodo DY Holdings Inc. | 74,200 | 4,269,324 | |||
20,082,013 | |||||
AGRICULTURE – 0.86% | |||||
Japan Tobacco Inc. | 13,780 | 70,286,537 | |||
70,286,537 | |||||
AIRLINES – 0.17% | |||||
All Nippon Airways Co. Ltd.a | 2,120,000 | 8,858,364 | |||
Japan Airlines Corp.a,b | 2,120,000 | 5,274,291 | |||
14,132,655 | |||||
APPAREL – 0.26% | |||||
ASICS Corp. | 461,000 | 5,486,566 | |||
Gunze Ltd. | 1,060,000 | 4,968,830 | |||
Onward Holdings Co. Ltd. | 1,092,000 | 10,709,687 | |||
21,165,083 | |||||
AUTO MANUFACTURERS – 8.77% | |||||
Hino Motors Ltd. | 1,060,000 | 7,636,520 | |||
Honda Motor Co. Ltd. | 4,876,000 | 152,689,688 | |||
Isuzu Motors Ltd. | 2,120,000 | 9,958,023 | |||
Mazda Motor Corp. | 1,060,000 | 4,429,182 | |||
Mitsubishi Motors Corp.a,b | 4,240,000 | 6,923,779 | |||
Nissan Motor Co. Ltd. | 7,102,300 | 65,766,459 | |||
Suzuki Motor Corp. | 212,000 | 5,824,120 | |||
Toyota Motor Corp. | 8,374,500 | 462,546,227 | |||
715,773,998 | |||||
AUTO PARTS & EQUIPMENT – 2.22% | |||||
Aisin Seiki Co. Ltd. | 636,200 | 25,789,002 | |||
Bridgestone Corp. | 1,908,000 | 31,981,749 | |||
Denso Corp. | 1,484,000 | 56,306,613 | |||
JTEKT Corp. | 318,000 | 5,748,773 | |||
NGK Spark Plug Co. Ltd. | 629,000 | 9,969,262 | |||
NHK Spring Co. Ltd. | 406,000 | 3,217,425 | |||
NOK Corp. | 318,000 | 6,704,865 | |||
Sumitomo Rubber Industries Inc. | 318,000 | 2,489,506 | |||
Tokai Rika Co. Ltd. | 106,000 | 3,095,336 | |||
Toyoda Gosei Co. Ltd. | 212,000 | 7,799,433 | |||
Toyota Boshoku Corp. | 106,000 | 3,716,440 | |||
Toyota Industries Corp. | 636,000 | 24,497,956 | |||
181,316,360 |
Security | Shares | Value | |||
BANKS – 9.29% | |||||
Aozora Bank Ltd. | 86,000 | $ | 232,957 | ||
Bank of Kyoto Ltd. (The) | 1,060,000 | 12,442,438 | |||
Bank of Yokohama Ltd. (The) | 4,240,000 | 28,020,941 | |||
Chiba Bank Ltd. (The) | 2,120,000 | 13,745,738 | |||
Chuo Mitsui Trust | 2,125,000 | 14,941,646 | |||
Fukuoka Financial Group Inc. | 2,126,000 | 11,068,556 | |||
Gunma Bank Ltd. | 1,060,000 | 7,290,332 | |||
Hachijuni Bank Ltd. (The) | 1,060,000 | 7,056,145 | |||
Hiroshima Bank Ltd. (The) | 1,060,000 | 5,294,654 | |||
Hokuhoku Financial | |||||
Group Inc. | 4,245,000 | 12,232,842 | |||
Joyo Bank Ltd. (The) | 2,120,000 | 10,792,949 | |||
Mitsubishi UFJ Financial | |||||
Group Inc. | 26,500,080 | 240,805,684 | |||
Mizuho Financial Group Inc. | 29,796 | 127,650,123 | |||
Mizuho Trust & Banking | 726,000 | 1,185,534 | |||
Nishi-Nippon City Bank Ltd. (The) | 2,120,000 | 5,620,479 | |||
Resona Holdings Inc.a | 16,960 | 28,183,853 | |||
Sapporo Hokuyo Holdings Inc. | 1,060 | 8,379,809 | |||
77 Bank Ltd. (The) | 1,060,000 | 6,312,858 | |||
Shinsei Bank Ltd. | 1,705,000 | 6,993,276 | |||
Shizuoka Bank Ltd. (The) | 2,120,000 | 22,685,558 | |||
Sumitomo Mitsui Financial | |||||
Group Inc. | 20,140 | 149,349,983 | |||
Sumitomo Trust and Banking | 4,240,000 | 29,242,784 | |||
Suruga Bank Ltd. | 776,000 | 8,751,011 | |||
758,280,150 | |||||
BEVERAGES – 0.89% | |||||
Asahi Breweries Ltd. | 1,060,000 | 19,895,682 | |||
Coca-Cola West Japan | 212,000 | 4,632,823 | |||
ITO EN Ltd.a | 212,000 | 4,357,908 | |||
Kirin Holdings Co. Ltd. | 2,120,000 | 35,942,558 | |||
Sapporo Holdings Ltd.a | 1,060,000 | 8,104,894 | |||
72,933,865 | |||||
BUILDING MATERIALS – 1.42% | |||||
Asahi Glass Co. Ltd. | 3,180,000 | 36,746,938 | |||
Daikin Industries Ltd. | 749,000 | 34,390,471 | |||
JS Group Corp. | 848,000 | 14,491,062 | |||
Matsushita Electric Works Ltd. | 1,060,000 | 10,721,675 | |||
Nippon Sheet Glass Co. Ltd. | 2,120,000 | 10,182,028 |
SCHEDULEOF INVESTMENTS | 3 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI JAPAN INDEX FUND
February 29, 2008
Security | Shares | Value | |||
Sumitomo Osaka | |||||
Cement Co. Ltd. | 1,060,000 | $ | 2,199,318 | ||
Taiheiyo Cement Corp. | 3,180,000 | 7,544,882 | |||
116,276,374 | |||||
CHEMICALS – 3.70% | |||||
Asahi Kasei Corp. | 3,180,000 | 17,747,275 | |||
Daicel Chemical Industries Ltd. | 1,060,000 | 6,058,306 | |||
Dainippon Ink and | 2,120,000 | 7,840,162 | |||
Denki Kagaku Kogyo | |||||
Kabushiki Kaisha | 2,120,000 | 7,188,511 | |||
Hitachi Chemical Co. Ltd. | 212,000 | 4,103,357 | |||
JSR Corp. | 530,000 | 11,836,607 | |||
Kaneka Corp. | 1,060,000 | 7,473,608 | |||
Mitsubishi Chemical | |||||
Holdings Corp. | 3,710,000 | 25,302,339 | |||
Mitsubishi Gas | |||||
Chemical Co. Inc. | 1,060,000 | 7,992,892 | |||
Mitsui Chemicals Inc. | 2,120,000 | 15,313,770 | |||
Nippon Kayaku Co. Ltd.a | 1,060,000 | 6,384,132 | |||
Nissan Chemical Industries Ltd. | 853,000 | 9,881,543 | |||
Nitto Denko Corp. | 530,000 | 26,269,631 | |||
Shin-Etsu Chemical Co. Ltd. | 1,272,000 | 70,133,807 | |||
Showa Denko K.K. | 3,180,000 | 11,515,873 | |||
Sumitomo Chemical Co. Ltd. | 4,240,000 | 29,731,521 | |||
Taiyo Nippon Sanso Corp. | 1,060,000 | 9,550,742 | |||
Tokuyama Corp. | 908,000 | 6,916,517 | |||
Tosoh Corp. | 2,120,000 | 7,697,613 | |||
Ube Industries Ltd. | 3,188,000 | 9,952,452 | |||
Zeon Corp. | 566,000 | 2,816,272 | |||
301,706,930 | |||||
COMMERCIAL SERVICES – 1.00% | |||||
Benesse Corp. | 212,000 | 8,736,180 | |||
Dai Nippon Printing Co. Ltd. | 2,120,000 | 33,682,148 | |||
Kamigumi Co. Ltd. | 1,060,000 | 8,104,894 | |||
K.K. DaVinci Advisorsb | 3,180 | 2,746,093 | |||
Meitec Corp. | 106,000 | 3,146,247 | |||
TIS Inc. | 106,500 | 1,979,516 | |||
Toppan Printing Co. Ltd. | 2,120,000 | 23,377,936 | |||
81,773,014 | |||||
COMPUTERS – 1.03% | |||||
CSK Holdings Corp. | 212,000 | 5,396,475 | |||
Fujitsu Ltd. | 5,300,000 | 38,386,245 |
Security | Shares | Value | |||
Itochu Techno-Solutions Corp. | 106,000 | $ | 2,998,607 | ||
Obic Co. Ltd. | 10,600 | 1,981,423 | |||
Otsuka Corp. | 62,000 | 4,919,264 | |||
TDK Corp. | 424,000 | 30,790,452 | |||
84,472,466 | |||||
COSMETICS & PERSONAL CARE – 1.04% | |||||
Aderans Holdings Co. Ltd.a | 106,000 | 1,936,621 | |||
Kao Corp. | 1,630,000 | 50,416,406 | |||
Shiseido Co. Ltd. | 1,060,000 | 24,335,046 | |||
Uni-Charm Corp. | 106,000 | 7,799,433 | |||
84,487,506 | |||||
DISTRIBUTION & WHOLESALE – 4.96% | |||||
Canon Marketing Japan Inc. | 106,000 | 1,898,948 | |||
Hitachi High-Technologies Corp. | 106,000 | 2,092,407 | |||
ITOCHU Corp. | 4,240,000 | 45,900,581 | |||
Marubeni Corp. | 4,341,000 | 33,817,310 | |||
Mitsubishi Corp. | 4,134,000 | 129,851,400 | |||
Mitsui & Co. Ltd. | 5,300,000 | 118,620,624 | |||
Sojitz Corp. | 3,074,000 | 11,870,208 | |||
Sumitomo Corp. | 3,180,000 | 47,040,968 | |||
Toyota Tsusho Corp. | 530,000 | 13,694,827 | |||
404,787,273 | |||||
DIVERSIFIED FINANCIAL SERVICES – 2.73% | |||||
Acom Co. Ltd. | 222,600 | 6,500,207 | |||
AEON Credit Service Co. Ltd. | 424,070 | 6,317,973 | |||
Credit Saison Co. Ltd.a | 530,000 | 14,789,396 | |||
Daiwa Securities Group Inc. | 4,240,000 | 40,280,102 | |||
Mitsubishi UFJ Lease & | |||||
Finance Co. Ltd. | 95,400 | 3,482,253 | |||
Nomura Holdings Inc. | 5,512,000 | 89,214,927 | |||
ORIX Corp. | 265,000 | 40,829,931 | |||
Promise Co. Ltd.a | 265,000 | 8,960,185 | |||
Shinko Securities Co. Ltd. | 1,060,000 | 3,716,440 | |||
Takefuji Corp. | 349,920 | 8,957,656 | |||
223,049,070 | |||||
ELECTRIC – 3.73% | |||||
Chubu Electric Power Co. Inc. | 2,014,000 | 51,073,052 | |||
Chugoku Electric Power | |||||
Co. Inc. (The) | 106,000 | 2,234,955 | |||
Electric Power | |||||
Development Co. Ltd. | 530,000 | 19,396,763 | |||
Hokkaido Electric Power Co. Inc. | 530,000 | 11,938,428 |
4 | 2008 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI JAPAN INDEX FUND
February 29, 2008
Security | Shares | Value | |||
Hokuriku Electric Power Co. | 106,000 | $ | 2,367,321 | ||
Kansai Electric Power | |||||
Co. Inc. (The) | 2,332,000 | 57,345,180 | |||
Kyushu Electric Power | 1,166,000 | 29,512,608 | |||
Shikoku Electric Power | 106,000 | 3,064,790 | |||
Tohoku Electric Power | 1,378,100 | 31,704,044 | |||
Tokyo Electric Power | |||||
Co. Inc. (The) | 3,710,000 | 96,041,977 | |||
304,679,118 | |||||
ELECTRICAL COMPONENTS & | |||||
Casio Computer Co. Ltd. | 742,000 | 9,814,456 | |||
Fujikura Ltd. | 1,060,000 | 5,325,200 | |||
Furukawa Electric Co. | 2,120,000 | 7,616,157 | |||
Hitachi Cable Ltd. | 1,060,000 | 4,795,735 | |||
Hitachi Ltd. | 10,600,000 | 77,994,333 | |||
Mitsubishi Electric Corp. | 6,360,000 | 59,564,863 | |||
SANYO Electric Co. Ltd.b | 4,439,000 | 9,508,640 | |||
Sharp Corp. | 3,180,000 | 58,892,848 | |||
Stanley Electric Co. Ltd. | 425,200 | 9,108,074 | |||
Sumitomo Electric | 2,332,000 | 35,146,323 | |||
Toshiba Corp. | 9,540,000 | 73,035,685 | |||
Ushio Inc. | 318,000 | 6,720,138 | |||
357,522,452 | |||||
ELECTRONICS – 4.79% | |||||
Advantest Corp. | 424,000 | 10,772,585 | |||
Alps Electric Co. Ltd. | 530,000 | 6,292,493 | |||
Fanuc Ltd. | 530,000 | 50,502,858 | |||
Hirose Electric Co. Ltd. | 106,000 | 11,424,235 | |||
Hoya Pentax HD Corp. | 1,272,000 | 32,745,401 | |||
IBIDEN Co. Ltd. | 424,000 | 20,689,881 | |||
Keyence Corp. | 106,092 | 25,100,101 | |||
Kyocera Corp. | 530,000 | 44,037,270 | |||
Mabuchi Motor Co. Ltd. | 106,000 | 5,376,111 | |||
Minebea Co. Ltd. | 1,060,000 | 6,913,597 | |||
Mitsumi Electric Co. Ltd. | 106,000 | 3,400,797 | |||
Murata Manufacturing | 636,000 | 35,189,088 | |||
NEC Corp. | 6,360,000 | 28,041,304 | |||
NGK Insulators Ltd. | 1,060,000 | 24,691,417 | |||
Nippon Electric Glass Co. Ltd. | 1,060,500 | 15,697,906 | |||
Omron Corp. | 742,000 | 16,713,799 | |||
Secom Co. Ltd. | 636,000 | 32,501,033 |
Security | Shares | Value | |||
Tokyo Seimitsu Co. Ltd.a | 106,000 | $ | 1,988,550 | ||
Yaskawa Electric Corp. | 1,060,000 | 11,902,790 | |||
Yokogawa Electric Corp. | 636,000 | 6,726,248 | |||
390,707,464 | |||||
ENGINEERING & CONSTRUCTION – 0.92% | |||||
Chiyoda Corp. | 609,000 | 6,271,053 | |||
JGC Corp. | 1,060,000 | 17,604,726 | |||
Kajima Corp. | 3,180,000 | 10,019,116 | |||
Nishimatsu Construction | 1,060,000 | 2,718,601 | |||
Obayashi Corp. | 2,120,000 | 10,304,212 | |||
Okumura Corp.a | 1,060,000 | 4,551,366 | |||
Shimizu Corp. | 2,120,000 | 10,304,212 | |||
Taisei Corp. | 3,180,000 | 8,491,811 | |||
Toda Corp. | 1,060,000 | 4,632,823 | |||
74,897,920 | |||||
ENTERTAINMENT – 0.27% | |||||
Oriental Land Co. Ltd. | 212,000 | 12,381,345 | |||
Toho Co. Ltd. | 425,200 | 9,945,363 | |||
22,326,708 | |||||
ENVIRONMENTAL CONTROL – 0.08% | |||||
Kurita Water Industries Ltd. | 212,000 | 6,862,687 | |||
6,862,687 | |||||
FOOD – 1.10% | |||||
Ajinomoto Co. Inc. | 2,120,000 | 25,740,166 | |||
Kikkoman Corp.a | 1,060,000 | 12,381,345 | |||
Meiji Dairies Corp. | 1,060,000 | 6,139,763 | |||
Meiji Seika Kaisha Ltd.a | 1,060,000 | 5,009,558 | |||
Nichirei Corp. | 1,060,000 | 5,294,655 | |||
Nippon Meat Packers Inc. | 1,060,000 | 13,124,634 | |||
Nisshin Seifun Group Inc. | 532,000 | 5,340,185 | |||
Nissin Food Products Co. Ltd.a | 318,800 | 10,626,157 | |||
Yakult Honsha Co. Ltd. | 212,000 | 5,987,032 | |||
89,643,495 | |||||
FOREST PRODUCTS & PAPER – 0.20% | |||||
Nippon Paper Group Inc. | 3,180 | 7,605,975 | |||
Oji Paper Co. Ltd. | 2,120,000 | 8,980,549 | |||
16,586,524 | |||||
GAS – 0.73% | |||||
Osaka Gas Co. Ltd. | 6,360,000 | 25,658,710 | |||
Tokyo Gas Co. Ltd. | 7,420,000 | 33,641,420 | |||
59,300,130 |
SCHEDULEOF INVESTMENTS | 5 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI JAPAN INDEX FUND
February 29, 2008
Security | Shares | Value | |||
HAND & MACHINE TOOLS – 0.91% | |||||
Fuji Electric Holdings Co. Ltd. | 2,120,000 | $ | 8,267,807 | ||
Makita Corp. | 318,000 | 11,546,420 | |||
Nidec Corp. | 318,000 | 21,504,443 | |||
OSG Corp.a | 212,000 | 2,138,226 | |||
SMC Corp. | 212,000 | 22,828,106 | |||
THK Co. Ltd. | 424,600 | 8,177,542 | |||
74,462,544 | |||||
HEALTH CARE - PRODUCTS – 0.36% | |||||
Terumo Corp. | 530,000 | 29,120,600 | |||
29,120,600 | |||||
HOME BUILDERS – 0.42% | |||||
Daiwa House Industry Co. Ltd. | 1,060,000 | 10,996,590 | |||
Haseko Corp.b | 3,180,000 | 4,917,919 | |||
Sekisui Chemical Co. Ltd. | 1,060,000 | 7,514,336 | |||
Sekisui House Ltd. | 1,060,000 | 11,139,138 | |||
34,567,983 | |||||
HOME FURNISHINGS – 3.69% | |||||
Matsushita Electric | |||||
Industrial Co. Ltd. | 6,360,015 | 136,541,314 | |||
Pioneer Corp. | 636,000 | 6,811,776 | |||
Sony Corp. | 3,074,000 | 147,344,124 | |||
Yamaha Corp. | 530,000 | 10,538,399 | |||
301,235,613 | |||||
HOUSEWARES – 0.11% | |||||
TOTO Ltd.a | 1,060,000 | 9,000,913 | |||
9,000,913 | |||||
INSURANCE – 2.36% | |||||
Aioi Insurance Co. Ltd. | 12,000 | 62,936 | |||
Millea Holdings Inc. | 2,332,000 | 87,809,808 | |||
Mitsui Sumitomo | |||||
Insurance Co. Ltd. | 3,926,000 | 42,124,221 | |||
Nipponkoa Insurance Co. Ltd. | 123,000 | 1,011,364 | |||
Sompo Japan Insurance Inc. | 2,120,000 | 20,058,595 | |||
Sony Financial Holdings Inc.b | 2,120 | 8,451,083 | |||
T&D Holdings Inc. | 636,000 | 33,111,954 | |||
192,629,961 | |||||
INTERNET – 1.37% | |||||
eAccess Ltd. | 3,180 | 2,077,134 | |||
Matsui Securities Co. Ltd. | 318,000 | 2,153,499 | |||
Rakuten Inc. | 21,330 | 10,305,932 |
Security | Shares | Value | |||
SBI E*Trade Securities | 4,240 | $ | 3,730,695 | ||
SBI Holdings Inc. | 29,680 | 7,460,983 | |||
SoftBank Corp. | 2,332,000 | 46,480,957 | |||
Trend Micro Inc. | 533,500 | 18,653,667 | |||
Yahoo! Japan Corp. | 46,640 | 21,078,834 | |||
111,941,701 | |||||
IRON & STEEL – 3.45% | |||||
Daido Steel Co. Ltd. | 1,060,000 | 7,626,339 | |||
JFE Holdings Inc. | 1,696,250 | 77,231,881 | |||
Kobe Steel Ltd. | 8,480,000 | 27,043,466 | |||
Nippon Steel Corp. | 18,020,000 | 96,932,905 | |||
Nisshin Steel Co. Ltd. | 3,188,000 | 11,697,959 | |||
Sumitomo Metal | |||||
Industries Ltd. | 12,720,000 | 55,227,318 | |||
Tokyo Steel | |||||
Manufacturing Co. Ltd. | 424,600 | 5,192,025 | |||
Yamato Kogyo Co. Ltd. | 21,000 | 907,737 | |||
281,859,630 | |||||
LEISURE TIME – 0.55% | |||||
Namco Bandai Holdings Inc. | 636,098 | 7,985,976 | |||
Round One Corp. | 1,060 | 1,232,025 | |||
Sankyo Co. Ltd. | 212,000 | 11,424,235 | |||
Sega Sammy Holdings Inc.a | 212,000 | 2,364,267 | |||
Shimano Inc. | 212,000 | 9,041,641 | |||
Yamaha Motor Co. Ltd. | 636,200 | 12,925,056 | |||
44,973,200 | |||||
MACHINERY – 0.39% | |||||
Hitachi Construction | |||||
Machinery Co. Ltd. | 321,000 | 9,034,436 | |||
Japan Steel Works Ltd. (The) | 1,060,000 | 17,686,182 | |||
Okuma Corp. | 493,000 | 4,835,051 | |||
31,555,669 | |||||
MACHINERY - CONSTRUCTION & MINING – 0.89% | |||||
Komatsu Ltd. | 2,756,000 | 72,272,033 | |||
72,272,033 | |||||
MACHINERY - DIVERSIFIED – 0.62% | |||||
Amada Co. Ltd. | 1,060,000 | 8,165,986 | |||
Ebara Corp.a | 1,060,000 | 3,074,972 | |||
Kubota Corp. | 3,180,000 | 21,657,173 | |||
Sumitomo Heavy Industries Ltd. | 2,120,000 | 17,350,175 | |||
50,248,306 |
6 | 2008 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI JAPAN INDEX FUND
February 29, 2008
Security | Shares | Value | |||
MANUFACTURING – 2.62% | |||||
FUJIFILM Holdings Corp. | 1,484,000 | $ | 56,591,710 | ||
Glory Ltd. | 106,000 | 2,453,869 | |||
IHI Corp. | 4,246,000 | 8,483,435 | |||
Kawasaki Heavy | 4,240,000 | 10,467,125 | |||
Konica Minolta Holdings Inc. | 1,590,000 | 22,924,836 | |||
Mitsubishi Heavy | 10,600,000 | 50,808,319 | |||
Nikon Corp. | 1,060,000 | 30,393,353 | |||
Olympus Corp. | 1,060,000 | 31,564,286 | |||
213,686,933 | |||||
MEDIA – 0.10% | |||||
Fuji Television Network Inc. | 1,655 | 2,527,688 | |||
Jupiter Telecommunications | |||||
Co. Ltd.b | 4,240 | 3,563,710 | |||
Tokyo Broadcasting | 106,000 | 2,316,411 | |||
8,407,809 | |||||
METAL FABRICATE & HARDWARE – 0.21% | |||||
NSK Ltd. | 1,060,000 | 9,296,191 | |||
NTN Corp. | 1,060,000 | 7,982,710 | |||
17,278,901 | |||||
MINING – 0.96% | |||||
Dowa Holdings Co. Ltd. | 1,060,000 | 7,595,793 | |||
Mitsubishi Materials Corp. | 3,180,000 | 15,242,496 | |||
Mitsui Mining & Smelting | 2,120,000 | 7,901,254 | |||
Nippon Light Metal Co. Ltd. | 1,060,000 | 1,669,853 | |||
OSAKA Titanium | 78,400 | 5,369,502 | |||
Sumitomo Metal Mining | 1,724,000 | 37,343,259 | |||
Toho Titanium Co. Ltd.a | 106,000 | 3,085,154 | |||
78,207,311 | |||||
OFFICE & BUSINESS EQUIPMENT – 2.43% | |||||
Canon Inc. | 3,286,050 | 152,142,174 | |||
Ricoh Co. Ltd. | 2,120,000 | 34,822,535 | |||
Seiko Epson Corp. | 424,000 | 10,996,590 | |||
197,961,299 | |||||
OIL & GAS – 1.13% | |||||
Cosmo Oil Co. Ltd. | 1,060,000 | 3,573,892 | |||
Idemitsu Kosan Co. Ltd. | 34,000 | 2,825,032 | |||
INPEX Holdings Inc. | 2,120 | 24,233,226 | |||
Japan Petroleum | |||||
Exploration Co. Ltd. | 35,000 | 2,467,701 | |||
Nippon Mining Holdings Inc. | 2,650,000 | 16,036,694 |
Security | Shares | Value | |||
Nippon Oil Corp. | 4,240,500 | $ | 29,409,164 | ||
Showa Shell Sekiyu K.K. | 318,000 | 3,256,213 | |||
TonenGeneral Sekiyu K.K. | 1,060,000 | 10,141,299 | |||
91,943,221 | |||||
PACKAGING & CONTAINERS – 0.12% | |||||
Toyo Seikan Kaisha Ltd. | 530,000 | 9,387,830 | |||
9,387,830 | |||||
PHARMACEUTICALS – 4.98% | |||||
Alfresa Holdings Corp. | 106,000 | 7,443,062 | |||
Astellas Pharma Inc. | 1,590,030 | 70,257,317 | |||
Chugai Pharmaceutical Co. Ltd. | 848,000 | 9,945,805 | |||
Daiichi Sankyo Co. Ltd. | 2,226,069 | 69,708,323 | |||
Eisai Co. Ltd. | 848,000 | 30,790,452 | |||
Kyowa Hakko Kogyo Co. Ltd. | 754,000 | 7,358,571 | |||
Mediceo Paltac Holdings | 424,000 | 7,261,822 | |||
Mitsubishi Tanabe Pharma Corp. | 1,060,000 | 12,218,433 | |||
Santen Pharmaceutical Co. Ltd. | 106,000 | 2,708,419 | |||
Shionogi & Co. Ltd. | 1,060,000 | 18,297,104 | |||
Suzuken Co. Ltd. | 212,000 | 7,677,249 | |||
Taisho Pharmaceutical Co. Ltd. | 944,000 | 19,223,669 | |||
Takeda Pharmaceutical Co. Ltd. | 2,544,000 | 143,200,038 | |||
406,090,264 | |||||
REAL ESTATE – 2.51% | |||||
AEON Mall Co. Ltd. | 106,000 | 2,652,418 | |||
Daito Trust Construction | 212,000 | 11,627,876 | |||
Leopalace21 Corp. | 424,000 | 8,817,636 | |||
Mitsubishi Estate Co. Ltd. | 3,479,000 | 87,221,459 | |||
Mitsui Fudosan Co. Ltd. | 2,596,000 | 54,361,270 | |||
Nomura Real Estate | |||||
Holdings Inc. | 22,000 | 412,295 | |||
NTT Urban Development Corp.a | 3,180 | 4,032,083 | |||
Sumitomo Realty & | |||||
Development Co. Ltd. | 1,060,000 | 18,612,747 | |||
Tokyo Tatemono Co. Ltd. | 1,060,000 | 7,361,606 | |||
Tokyu Land Corp. | 1,060,000 | 7,320,878 | |||
Urban Corp. | 424,000 | 2,826,531 | |||
205,246,799 | |||||
REAL ESTATE INVESTMENT TRUSTS – 0.48% | |||||
Japan Real Estate Investment Corp. | 1,060 | 12,014,793 | |||
Japan Retail Fund Investment Corp.a | 1,060 | 6,516,498 |
SCHEDULEOF INVESTMENTS | 7 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI JAPAN INDEX FUND
February 29, 2008
Security | Shares | Value | |||
Nippon Building Fund Inc. | 1,302 | $ | 16,258,585 | ||
Nomura Real Estate Office Fund Inc. | 520 | 4,425,532 | |||
39,215,408 | |||||
RETAIL – 2.80% | |||||
AEON Co. Ltd. | 1,802,000 | 22,173,402 | |||
Aoyama Trading Co. Ltd. | 212,000 | 4,480,092 | |||
Autobacs Seven Co. Ltd. | 106,000 | 2,413,141 | |||
Citizen Watch Co. Ltd. | 1,166,000 | 9,889,804 | |||
EDION Corp. | 212,000 | 2,105,643 | |||
FamilyMart Co. Ltd. | 212,000 | 6,292,493 | |||
Fast Retailing Co. Ltd. | 212,000 | 15,924,691 | |||
Isetan Co. Ltd. | 636,000 | 7,642,630 | |||
J. Front Retailing Co. Ltd. | 1,200,000 | 7,895,874 | |||
Lawson Inc. | 212,000 | 8,145,622 | |||
Marui Group Co. Ltd. | 954,000 | 9,887,767 | |||
Mitsukoshi Ltd.a | 1,060,000 | 4,306,998 | |||
Nitori Co. Ltd. | 106,000 | 5,294,654 | |||
Ryohin Keikaku Co. Ltd. | 106,000 | 5,671,389 | |||
Seven & I Holdings Co. Ltd. | 2,544,080 | 64,270,981 | |||
Shimachu Co. Ltd. | 106,500 | 2,777,460 | |||
Shimamura Co. Ltd. | 47,700 | 3,500,581 | |||
Takashimaya Co. Ltd. | 1,060,000 | 11,821,334 | |||
UNY Co. Ltd. | 1,062,000 | 8,558,840 | |||
USS Co. Ltd. | 74,200 | 4,568,676 | |||
Yamada Denki Co. Ltd. | 233,200 | 20,765,227 | |||
228,387,299 | |||||
SEMICONDUCTORS – 1.01% | |||||
Elpida Memory Inc.a,b | 318,000 | 10,813,313 | |||
NEC Electronics Corp.b | 106,000 | 2,189,136 | |||
Rohm Co. Ltd. | 318,400 | 23,427,731 | |||
Sanken Electric Co. Ltd.a | 332,000 | 1,989,991 | |||
Shinko Electric Industries | 212,000 | 3,109,591 | |||
Sumco Corp. | 318,000 | 7,254,695 | |||
Tokyo Electron Ltd. | 530,052 | 33,603,989 | |||
82,388,446 | |||||
SHIPBUILDING – 0.08% | |||||
Mitsui Engineering & | |||||
Shipbuilding Co. Ltd. | 2,120,000 | 6,659,046 | |||
6,659,046 | |||||
SOFTWARE – 0.28% | |||||
Fuji Soft ABC Inc.a | 106,000 | 1,649,488 | |||
Konami Corp. | 318,800 | 10,687,402 |
Security | Shares | Value | |||
Nomura Research Institute Ltd. | 212,000 | $ | 6,129,581 | ||
Oracle Corp. | 106,000 | 4,704,097 | |||
23,170,568 | |||||
STORAGE & WAREHOUSING – 0.05% | |||||
Mitsubishi Logistics Corp. | 319,000 | 3,824,139 | |||
3,824,139 | |||||
TELECOMMUNICATIONS – 2.63% | |||||
Hikari Tsushin Inc. | 106,000 | 3,268,431 | |||
KDDI Corp. | 7,420 | 45,615,485 | |||
Nippon Telegraph and | |||||
Telephone Corp. | 15,900 | 69,339,609 | |||
NTT Data Corp. | 4,240 | 20,078,959 | |||
NTT DoCoMo Inc. | 49,820 | 74,654,627 | |||
Oki Electric Industry Co. Ltd.a,b | 1,065,000 | 1,933,481 | |||
214,890,592 | |||||
TEXTILES – 0.87% | |||||
Kuraray Co. Ltd. | 1,060,000 | 12,819,173 | |||
Mitsubishi Rayon Co. Ltd. | 2,120,000 | 7,371,788 | |||
Nisshinbo Industries Inc. | 1,060,000 | 11,281,687 | |||
Teijin Ltd. | 3,180,000 | 12,493,348 | |||
Toray Industries Inc. | 4,240,000 | 26,636,185 | |||
70,602,181 | |||||
TOYS, GAMES & HOBBIES – 2.00% | |||||
Nintendo Co. Ltd. | 318,000 | 163,116,085 | |||
163,116,085 | |||||
TRANSPORTATION – 4.65% | |||||
Central Japan Railway Co. | 5,068 | 48,681,620 | |||
East Japan Railway Co. | 10,600 | 85,427,213 | |||
Hankyu Hanshin Holdings Inc. | 3,185,800 | 14,229,835 | |||
Kawasaki Kisen Kaisha Ltd. | 2,120,000 | 22,095,000 | |||
Keihin Electric Express | |||||
Railway Co. Ltd.a | 1,064,000 | 7,297,402 | |||
Keio Corp. | 2,120,000 | 12,096,249 | |||
Kintetsu Corp.a | 5,304,000 | 17,831,996 | |||
Mitsui O.S.K. Lines Ltd. | 3,180,000 | 42,489,602 | |||
Nippon Express Co. Ltd. | 2,120,000 | 11,444,599 | |||
Nippon Yusen Kabushiki Kaisha | 3,180,000 | 30,057,346 | |||
Odakyu Electric Railway | 1,060,000 | 6,984,871 | |||
Seino Holdings Co. Ltd. | 1,060,000 | 7,117,237 | |||
Tobu Railway Co. Ltd. | 3,180,000 | 15,334,134 | |||
Tokyu Corp. | 3,180,000 | 18,572,018 | |||
West Japan Railway Co. | 5,300 | 24,335,046 | |||
Yamato Holdings Co. Ltd. | 1,060,000 | 15,639,594 | |||
379,633,762 |
8 | 2008 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI JAPAN INDEX FUND
February 29, 2008
Security | Shares | Value | ||||
VENTURE CAPITAL – 0.05% |
| |||||
JAFCO Co. Ltd. | 106,000 | $ | 3,746,986 | |||
3,746,986 | ||||||
TOTAL COMMON STOCKS | 8,150,762,824 | |||||
SHORT-TERM INVESTMENTS – 1.48% |
| |||||
MONEY MARKET FUNDS – 1.48% |
| |||||
Barclays Global Investors Funds | ||||||
Institutional Money Market | ||||||
Fund, Institutional Shares | 177,768 | 177,768 | ||||
BGI Cash Premier Fund LLC | ||||||
3.63%c,d,e | 120,867,077 | 120,867,077 | ||||
121,044,845 | ||||||
TOTAL SHORT-TERM INVESTMENTS | ||||||
121,044,845 | ||||||
TOTAL INVESTMENTS IN SECURITIES – 101.35% |
| |||||
(Cost: $8,005,870,343) | 8,271,807,669 | |||||
Other Assets, Less Liabilities – (1.35)% | (110,035,029 | ) | ||||
NET ASSETS – 100.00% | $ | 8,161,772,640 | ||||
a | All or a portion of this security represents a security on loan. See Note 5. |
b | Non-income earning security. |
c | Affiliated issuer. See Note 2. |
d | The rate quoted is the annualized seven-day yield of the fund at period end. |
e | This security represents an investment of securities lending collateral. See Note 5. |
See notes to financial statements.
SCHEDULEOF INVESTMENTS | 9 |
Table of Contents
Statement of Assets and Liabilities (Unaudited)
iSHARES®, INC.
February 29, 2008
iShares MSCI Japan Index Fund | ||||
ASSETS | ||||
Investments, at cost: | ||||
Unaffiliated issuers | $ | 7,884,825,498 | ||
Affiliated issuers (Note 2) | 121,044,845 | |||
Total cost of investments | $ | 8,005,870,343 | ||
Investments in securities, at value (including securities on loana) (Note 1): | ||||
Unaffiliated issuers | $ | 8,150,762,824 | ||
Affiliated issuers (Note 2) | 121,044,845 | |||
Total value of investments | 8,271,807,669 | |||
Foreign currency, at valueb | 7,708,099 | |||
Receivables: | ||||
Dividends and interest | 8,163,292 | |||
Total Assets | 8,287,679,060 | |||
LIABILITIES | ||||
Payables: | ||||
Collateral for securities on loan (Note 5) | 120,867,077 | |||
Capital shares redeemed | 1,741,459 | |||
Investment advisory fees (Note 2) | 3,297,884 | |||
Total Liabilities | 125,906,420 | |||
NET ASSETS | $ | 8,161,772,640 | ||
Net assets consist of: | ||||
Paid-in capital | $ | 7,602,748,480 | ||
Distributions in excess of net investment income | (31,578,273 | ) | ||
Undistributed net realized gain | 323,893,881 | |||
Net unrealized appreciation on investments and translation of assets and liabilities in foreign currencies | 266,708,552 | |||
NET ASSETS | $ | 8,161,772,640 | ||
Shares outstandingc | 636,000,000 | |||
Net asset value per share | $ | 12.83 | ||
a | Securities on loan with market value of $114,854,750. See Note 5. |
b | Cost of foreign currency: $7,507,868. |
c | $0.001 par value, number of shares authorized: 2,124,600,000. |
See notes to financial statements.
10 | 2008 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Statement of Operations (Unaudited)
iSHARES®, INC.
Six months ended February 29, 2008
iShares MSCI Japan Index Fund | ||||
NET INVESTMENT INCOME | ||||
Dividends from unaffiliated issuersa | $ | 69,877,702 | ||
Interest from affiliated issuers (Note 2) | 159,694 | |||
Securities lending income from affiliated issuers (Note 2) | 911,489 | |||
Total investment income | 70,948,885 | |||
EXPENSES | ||||
Investment advisory fees (Note 2) | 26,234,817 | |||
Total expenses | 26,234,817 | |||
Net investment income | 44,714,068 | |||
NET REALIZED AND UNREALIZED GAIN (LOSS) | ||||
Net realized gain (loss) from: | ||||
Investments in unaffiliated issuers | (44,150,574 | ) | ||
In-kind redemptions | 642,005,257 | |||
Foreign currency transactions | 2,482,158 | |||
Net realized gain | 600,336,841 | |||
Net change in unrealized appreciation (depreciation) on: | ||||
Investments | (1,582,392,136 | ) | ||
Translation of assets and liabilities in foreign currencies | 687,770 | |||
Net change in unrealized appreciation (depreciation) | (1,581,704,366 | ) | ||
Net realized and unrealized loss | (981,367,525 | ) | ||
NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS | $ | (936,653,457 | ) | |
a | Net of foreign withholding tax of $5,207,648. |
See notes to financial statements.
FINANCIAL STATEMENTS | 11 |
Table of Contents
Statements of Changes in Net Assets
iSHARES®, INC.
iShares MSCI Japan Index Fund | ||||||||
Six months ended February 29, 2008 (Unaudited) | Year ended August 31, 2007 | |||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||
OPERATIONS: | ||||||||
Net investment income | $ | 44,714,068 | $ | 94,180,315 | ||||
Net realized gain | 600,336,841 | 1,158,734,665 | ||||||
Net change in unrealized appreciation (depreciation) | (1,581,704,366 | ) | (877,641,765 | ) | ||||
Net increase (decrease) in net assets resulting from operations | (936,653,457 | ) | 375,273,215 | |||||
DISTRIBUTIONS TO SHAREHOLDERS: | ||||||||
From net investment income | (106,366,554 | ) | (97,091,876 | ) | ||||
Total distributions to shareholders | (106,366,554 | ) | (97,091,876 | ) | ||||
CAPITAL SHARE TRANSACTIONS: | ||||||||
Proceeds from shares sold | 179,718,615 | 1,146,746,106 | ||||||
Cost of shares redeemed | (2,754,931,893 | ) | (3,369,511,925 | ) | ||||
Net decrease in net assets from capital share transactions | (2,575,213,278 | ) | (2,222,765,819 | ) | ||||
DECREASE IN NET ASSETS | (3,618,233,289 | ) | (1,944,584,480 | ) | ||||
NET ASSETS | ||||||||
Beginning of period | 11,780,005,929 | 13,724,590,409 | ||||||
End of period | $ | 8,161,772,640 | $ | 11,780,005,929 | ||||
Undistributed (distributions in excess of) net investment income included in net assets at end of period | $ | (31,578,273 | ) | $ | 30,074,213 | |||
SHARES ISSUED AND REDEEMED | ||||||||
Shares sold | 13,200,000 | 79,800,000 | ||||||
Shares redeemed | (214,200,000 | ) | (237,000,000 | ) | ||||
Net decrease in shares outstanding | (201,000,000 | ) | (157,200,000 | ) | ||||
See notes to financial statements.
12 | 2008 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
iSHARES®, INC.
(For a share outstanding throughout each period)
iShares MSCI Japan Index Fund | ||||||||||||||||||||||||
Six months ended Feb. 29, 2008 (Unaudited) | Year ended Aug. 31, 2007 | Year ended Aug. 31, 2006 | Year ended Aug. 31, 2005 | Year ended Aug. 31, 2004 | Year ended Aug. 31, 2003 | |||||||||||||||||||
Net asset value, beginning of period | $ | 14.07 | $ | 13.80 | $ | 10.99 | $ | 9.89 | $ | 8.29 | $ | 7.77 | ||||||||||||
Income from investment operations: | ||||||||||||||||||||||||
Net investment incomea | 0.06 | 0.10 | 0.06 | 0.06 | 0.03 | 0.00 | b | |||||||||||||||||
Net realized and unrealized gain (loss)c | (1.16 | ) | 0.27 | 2.81 | 1.08 | 1.57 | 0.52 | |||||||||||||||||
Total from investment operations | (1.10 | ) | 0.37 | 2.87 | 1.14 | 1.60 | 0.52 | |||||||||||||||||
Less distributions from: | ||||||||||||||||||||||||
Net investment income | (0.14 | ) | (0.10 | ) | (0.06 | ) | (0.04 | ) | (0.00 | )b | – | |||||||||||||
Total distributions | (0.14 | ) | (0.10 | ) | (0.06 | ) | (0.04 | ) | (0.00 | )b | – | |||||||||||||
Net asset value, end of period | $ | 12.83 | $ | 14.07 | $ | 13.80 | $ | 10.99 | $ | 9.89 | $ | 8.29 | ||||||||||||
Total return | (7.84 | )%d | 2.68 | % | 26.10 | % | 11.58 | % | 19.32 | % | 6.69 | % | ||||||||||||
Ratios/Supplemental data: | ||||||||||||||||||||||||
Net assets, end of period (000s) | $ | 8,161,773 | $ | 11,780,006 | $ | 13,724,590 | $ | 7,248,107 | $ | 5,863,332 | $ | 1,726,855 | ||||||||||||
Ratio of expenses to average net assetse | 0.51 | % | 0.52 | % | 0.54 | % | 0.57 | % | 0.64 | %f | 0.84 | % | ||||||||||||
Ratio of net investment income to average net assetse | 0.87 | % | 0.68 | % | 0.48 | % | 0.59 | % | 0.28 | % | 0.03 | % | ||||||||||||
Portfolio turnover rateg | 1 | % | 3 | % | 8 | % | 6 | % | 5 | % | 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.
FINANCIAL HIGHLIGHTS | 13 |
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.
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 MSCI 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”).
14 | 2008 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Notes to Financial Statements (Unaudited) (Continued)
iSHARES®, INC.
Investments that may be valued using fair value pricing include, but are not limited to: (i) an unlisted security related to corporate actions; (ii) a restricted security (i.e., one that may not be publicly sold without registration under the Securities Act of 1933, as amended); (iii) a security whose trading has been suspended or which has been de-listed from its primary trading exchange; (iv) a security that is thinly traded; (v) a security in default or bankruptcy proceedings for which there is no current market quotation; (vi) a security affected by currency controls or restrictions; and (vii) a security affected by a significant event (i.e., an event that occurs after the close of the markets on which the security is traded but before the time as of which the Fund’s NAV is computed and that may materially affect the value of the Fund’s investments). Examples of events that may be “significant events” are government actions, natural disasters, armed conflict, acts of terrorism, and significant market fluctuations.
Valuing the Fund’s investments using fair value pricing will result in using prices for those investments that may differ from current market valuations. Accordingly, fair value pricing could result in a difference between the prices used to calculate the Fund’s net asset value and the prices used by the Fund’s benchmark index, which, in turn, could result in a difference between the Fund’s performance and the performance of the Fund’s benchmark index.
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 ordinary income
NOTESTO FINANCIAL STATEMENTS | 15 |
Table of Contents
Notes to Financial Statements (Unaudited) (Continued)
iSHARES®, INC.
and any net capital 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 29, 2008.
As of August 31, 2007, 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, $68,122,871 and $27,817,841 expiring in 2009, 2010, 2011, 2012, 2013, 2014 and 2015, 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 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 29, 2008, the cost of investments for federal income tax purposes was $8,087,157,966. Net unrealized appreciation was $184,649,703, of which $1,046,251,552 represented gross unrealized appreciation on securities and $861,601,849 represented gross unrealized depreciation on securities.
The Fund adopted Financial Accounting Standards Board (“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 a tax position taken or expected to be taken in a tax return. FIN 48 provides guidance on the measurement, recognition, classification and disclosures of tax positions, along with accounting for the related interest and penalties. Management has reviewed the tax positions as of February 29, 2008, inclusive of the prior three open tax return years, and has determined that the implementation of FIN 48 did not have a material impact on the Fund’s financial statements.
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 the Fund and other iShares Funds in the same advisory fee category, 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 |
16 | 2008 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Notes to Financial Statements (Unaudited) (Continued)
iSHARES®, INC.
State Street Bank and Trust Company (“State Street”) serves as administrator, custodian and transfer agent for the Company. As compensation for its services, State Street 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 Fund. BarCap and BGI are affiliates of BGFA, the Fund’s investment adviser. As securities lending agent, BGI receives, as fees, a share of the income earned on investment of the cash collateral received for the loan of securities. For the six months ended February 29, 2008, BGI earned securities lending agent fees of $911,489.
Cross trades for the six months ended February 29, 2008 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.
The Fund may invest its securities lending cash collateral, if any, in the BGI Cash Premier Fund LLC (“Premier Fund”), an affiliated private money market fund managed by BGFA. Although the Premier Fund is not registered as an investment company under the 1940 Act, it intends to operate as a money market fund in compliance with Rule 2a-7 under the 1940 Act. See Note 5 for additional information regarding the Premier Fund.
As of February 29, 2008, 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 29, 2008, aggregated $109,387,634 and $256,587,224, respectively.
In-kind purchases and sales (see Note 4) for the six months ended February 29, 2008, aggregated $173,086,252 and $2,659,526,711, respectively.
NOTESTO FINANCIAL STATEMENTS | 17 |
Table of Contents
Notes to Financial Statements (Unaudited) (Continued)
iSHARES®, INC.
4. CAPITAL SHARE TRANSACTIONS
The Company issues and redeems capital shares of the Fund only in aggregations of a specified number of shares (each, a “Creation Unit”) at net asset value. Except when aggregated in Creation Units, shares of the Fund are not redeemable. Transactions in capital shares for the Fund are disclosed in detail in the Statements of Changes in Net Assets.
The consideration for the purchase of Creation Units of the Fund generally consists of the in-kind deposit of a designated portfolio of equity securities, which constitutes a substantial replication, or 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 State Street, the administrator, to offset transfer and other transaction costs associated with the issuance and redemption of Creation Units.
5. LOANS OF PORTFOLIO SECURITIES
The Fund may lend its investment securities to approved borrowers, such as brokers, dealers and other financial institutions. The borrower pledges and maintains with the Fund collateral consisting of cash, an irrevocable letter of credit issued by a bank, or securities issued or guaranteed by the U.S. government. The initial collateral received by the Fund is required to have a value of at least 102% of the market value of the loaned securities for securities traded on U.S. exchanges and a value of at least 105% for all other securities. The collateral is maintained thereafter, at a value equal to at least 100% of the current market value of the securities on loan. The risks to the Fund of securities lending are that the borrower may not provide additional collateral when required or may not return the securities when due.
As of February 29, 2008, the Fund had loaned securities which were collateralized by cash. The cash collateral received was invested in the Premier Fund. The Premier Fund seeks to achieve its investment objective by investing in a portfolio of high-quality, short-term fixed-income instruments, including money market funds (which may be managed by BGFA or its affiliate) and other instruments that, at the time of investment, have remaining maturities of 397 calendar days or less from the date of acquisition.
The market value of the securities on loan as of February 29, 2008 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 PRONOUNCEMENT
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. Management does not believe that the adoption of this standard will have a material impact on the Fund’s financial statements.
18 | 2008 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Notes:
NOTES | 19 |
Table of Contents
Notes:
20 | 2008 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
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 S&P North American Natural Resources
Sector (IGE)
iShares S&P North American Technology-
Multimedia Networking (IGN)
iShares S&P North American Technology-
Semiconductors (IGW)
iShares S&P North American Technology-
Software (IGV)
iShares S&P North American Technology
Sector (IGM)
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. (IYY)
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 FTSE NAREIT Industrial/Office (FIO)
iShares FTSE NAREIT Mortgage REITs (REM)
iShares FTSE NAREIT Real Estate 50 (FTY)
iShares FTSE NAREIT Residential (REZ)
iShares FTSE NAREIT Retail (RTL)
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 Infrastructure (IGF)
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 Chile (ECH)
iShares MSCI France (EWQ)
iShares MSCI Germany (EWG)
iShares MSCI Hong Kong (EWH)
iShares MSCI Israel Capped Investable
Market (EIS)
iShares MSCI Italy (EWI)
iShares MSCI Japan (EWJ)
iShares MSCI Japan Small Cap (SCJ)
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 Thailand Investable
Market (THD)
iShares MSCI Turkey Investable
Market (TUR)
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 iBoxx $ High Yield
Corporate (HYG)
iShares Lehman Government/Credit (GBF)
iShares Lehman Intermediate
Government/Credit (GVI)
iShares Lehman MBS (MBB)
iShares S&P National Municipal (MUB)
iShares S&P California Municipal (CMF)
iShares S&P New York Municipal (NYF)
iShares JPMorgan USD Emerging
Markets (EMB)
iShares Specialty Index Funds
iShares KLD 400 Social (DSI)
iShares KLD Select SocialSM (KLD)
iShares Dow Jones Select Dividend (DVY)
iShares Dow Jones EPAC Select
Dividend (IDV)
iShares S&P U.S. Preferred Stock (PFF)
iShares International Index Funds
iShares FTSE Developed Small Cap
ex-North America (IFSM)
iShares FTSE EPRA/NAREIT Global
Real Estate ex-U.S. (IFGL)
iShares FTSE EPRA/NAREIT North
America (IFNA)
iShares FTSE EPRA/NAREIT Europe (IFEU)
iShares FTSE EPRA/NAREIT Asia (IFAS)
iShares MSCI ACWI (ACWI)
iShares MSCI ACWI ex US (ACWX)
iShares MSCI BRIC (BKF)
iShares MSCI EAFE (EFA)
iShares MSCI EAFE Growth (EFG)
iShares MSCI EAFE Value (EFV)
iShares MSCI EAFE Small Cap (SCZ)
iShares MSCI Emerging Markets (EEM)
iShares MSCI EMU (EZU)
iShares MSCI Kokusai (TOK)
iShares MSCI Pacific ex-Japan (EPP)
iShares S&P Asia 50 (AIA)
iShares S&P Europe 350 (IEV)
iShares S&P Latin America 40 (ILF)
iShares S&P World ex-U.S. Property (WPS)
iSHARES FAMILYOF FUNDS | 21 |
Table of Contents
The iShares® Family of Funds (Continued)
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 Lehman Brothers, nor are they sponsored, endorsed, issued, sold or promoted by Cohen & Steers Capital Management, Inc., Dow Jones & Company, Inc., European Public Real Estate Association (“EPRA®”), FTSE International Limited (“FTSE”), FTSE/Xinhua Index Limited (“FXI”), iBoxx®, J.P. Morgan Securities Inc., KLD Research & Analytics, Inc., MSCI Inc., Morningstar Inc., The NASDAQ Stock Market, Inc., National Association of Real Estate Investment Trusts (“NAREIT”), New York Stock Exchange, Inc., Frank Russell Company, or Standard & Poor’s. None of these companies make any representation regarding the advisability of investing in the iShares Funds. Neither SEI nor BGI, nor any of their affiliates, are affiliated with the companies listed above. FXI does not make any warranty regarding the FTSE/Xinhua Index. All rights in the FTSE/Xinhua Index vest in FXI. Neither FTSE nor NAREIT makes any warranty regarding the FTSE NAREIT Real Estate 50 Index, FTSE NAREIT Residential Index, FTSE NAREIT Retail Index, FTSE NAREIT Mortgage REITs Index or FTSE NAREIT Industrial/Office Index; all rights vest in NAREIT. Neither FTSE nor NAREIT makes any warranty regarding the FTSE EPRA/NAREIT Global Real Estate ex-US/North America/Europe/Asia Index; all rights vest in FTSE, NAREIT, and EPRA. All rights in the FTSE Developed Small Cap ex-North America Index vest in FTSE. “FTSE” is a trade- and servicemark of London Stock Exchange and The Financial Times Limited; “Xinhua” is a trade- and servicemark of Xinhua Financial Network Limited. “NAREIT” is a trademark of NAREIT; “EPRA®” is a trademark of EPRA.
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 2008 Semi-Annual Report.
6712-iS-0408
22 | 2008 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Table of Contents
Table of Contents
1 | ||
2 | ||
3 | ||
11 | ||
14 | ||
15 | ||
21 |
Table of Contents
iSHARES® MSCI EMERGING MARKETS INDEX FUND
Performance as of February 29, 2008
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 IndexSM (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 included in the Index that collectively has an investment profile similar to 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 29, 2008, the Fund returned 6.78%, while the Index returned 8.15%.
Average Annual Total Returns | Cumulative Total Returns | |||||||||||||||
Year Ended 2/29/08 | Inception to 2/29/08 | Inception to 2/29/08 | ||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||
28.64% | 28.12% | 33.21% | 35.51% | 35.54% | 36.35% | 343.51% | 343.90% | 356.95% |
Total returns for the period 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 period(s) indicated. “Cumulative Total Returns” represent the total change in value of an investment over the period(s) 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 table(s) 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 2/29/08 | |||
Sector/Investment Type | Percentage of Net Assets | ||
Financial | 19.31 | % | |
Energy | 17.83 | ||
Basic Materials | 14.56 | ||
Communications | 14.20 | ||
Technology | 10.54 | ||
Industrial | 8.77 | ||
Consumer Non-Cyclical | 4.28 | ||
Utilities | 4.08 | ||
Consumer Cyclical | 3.57 | ||
Diversified | 1.89 | ||
Exchange-Traded Funds | 0.45 | ||
Short-Term and Other Net Assets | 0.52 | ||
TOTAL | 100.00 | % | |
TEN LARGEST FUND HOLDINGS As of 2/29/08 | |||
Security | Percentage of Net Assets | ||
OAO Gazprom SP ADR Reg S (Russia) | 3.59 | % | |
Samsung Electronics Co. Ltd. GDR (South Korea) | 3.07 | ||
POSCO ADR (South Korea) | 2.70 | ||
Petroleo Brasileiro SA Preferred SP ADR (Brazil) | 2.64 | ||
China Mobile Ltd. (China) | 2.50 | ||
Petroleo Brasileiro SA ADR (Brazil) | 2.44 | ||
Taiwan Semiconductor Manufacturing Co. Ltd. | 2.43 | ||
Chunghwa Telecom Co. Ltd. SP ADR (Taiwan) | 2.23 | ||
Companhia Vale do Rio Doce Preferred | 1.94 | ||
Companhia Vale do Rio Doce ADR (Brazil) | 1.66 | ||
TOTAL | 25.20 | % | |
FUND PERFORMANCE OVERVIEW | 1 |
Table of Contents
Shareholder Expenses (Unaudited)
iSHARES® MSCI EMERGING MARKETS 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, 2007 to February 29, 2008.
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 on going 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 (9/1/07) | Ending Account Value (2/29/08) | Annualized Expense Ratio | Expenses Paid During Perioda (9/1/07 to 2/29/08) | ||||||
Actual | $ 1,000.00 | $ 1,067.80 | 0.72 | % | $ 3.70 | ||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,021.30 | 0.72 | 3.62 |
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 (182 days) and divided by the number of days in the year (366 days). |
2 | 2008 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited)
iSHARES® MSCI EMERGING MARKETS INDEX FUND
February 29, 2008
Security | Shares | Value | |||
COMMON STOCKS – 89.54% | |||||
ARGENTINA – 0.69% | |||||
BBVA Banco Frances SA ADR | 1,296,804 | $ | 9,661,190 | ||
Petrobras Energia | 2,445,755 | 29,128,942 | |||
Tenaris SA ADR | 3,192,903 | 141,924,538 | |||
180,714,670 | |||||
BRAZIL – 5.10% | |||||
Companhia Siderurgica | |||||
Nacional SP ADR | 1,366,075 | 51,077,544 | |||
Companhia Vale do | 12,415,800 | 432,566,472 | |||
Empresa Brasileira de | 1,395,483 | 61,847,807 | |||
Gafisa SA ADRa | 256,263 | 10,037,822 | |||
Petroleo Brasileiro SA ADR | 5,415,725 | 635,481,172 | |||
TAM SA ADR | 121,800 | 2,550,492 | |||
Unibanco – Uniao de Bancos Brasileiros SA Units GDR | 945,700 | 128,255,834 | |||
Vivo Participacoes SA ADR | 718,400 | 4,360,688 | |||
1,326,177,831 | |||||
CHILE – 1.82% | |||||
Banco Santander Chile SA ADR | 2,380,680 | 123,223,997 | |||
Compania de Telecomunicaciones de Chile SA SP ADR | 2,885,918 | 23,116,203 | |||
Enersis SA SP ADR | 7,041,956 | 111,051,646 | |||
LAN Airlines SA SP ADRb | 3,107,505 | 41,578,417 | |||
Sociedad Quimicay Minerade Chile | 889,650 | 173,526,233 | |||
472,496,496 | |||||
CHINA – 15.13% | |||||
Agile Property Holdings Ltd.b | 9,800,000 | 13,930,456 | |||
Air China Ltd. Class Hb | 31,850,000 | 30,905,837 | |||
Alibaba.com Ltd.a,b | 7,350,000 | 17,816,121 | |||
Aluminum Corp. of | 7,350,000 | 14,831,023 | |||
Angang New Steel Co. Ltd. | 17,151,320 | 46,291,469 |
Security | Shares | Value | |||
Anhui Conch Cement | 2,450,000 | $ | 19,381,093 | ||
Bank of China Ltd. Class Hb | 173,950,000 | 74,671,525 | |||
Bank of Communications | 57,681,000 | 70,797,883 | |||
Beijing Capital International Airport Co. Ltd. Class Hb | 19,604,000 | 21,139,308 | |||
Beijing Enterprises Holdings Ltd. | 4,042,000 | 17,065,374 | |||
Brilliance China Automotive Holdings Ltd.a,b | 29,574,000 | 5,967,519 | |||
Chaoda Modern Agriculture (Holdings) Ltd.b | 2,478,175 | 2,825,138 | |||
China Agri-Industries Holdings Ltd.a,b | 7,356,000 | 5,464,541 | |||
China Coal Energy Co. | 5,956,000 | 13,518,531 | |||
China Communications Construction Co. Ltd. Class Hb | 33,075,000 | 88,206,802 | |||
China Construction Bank Class Hb | 236,817,000 | 184,141,795 | |||
China COSCO Holdings | 6,517,000 | 19,725,261 | |||
China Eastern Airlines Corp. Ltd. Class Ha,b | 84,000,000 | 54,411,906 | |||
China Ever bright Pacific Ltd.a,b | 27,178,000 | 64,271,648 | |||
China Foods Ltd.a,b | 6,156,000 | 3,821,465 | |||
China High Speed Transmission Equipment Group Co. Ltd.a,b | 2,450,000 | 4,496,539 | |||
China Life Insurance Co. Ltd. | 63,700,000 | 257,480,417 | |||
China Mengniu Dairy | 4,900,000 | 13,477,023 | |||
China Merchants Holdings (International) Co. Ltd.b | 9,800,000 | 54,034,046 | |||
China Mobile Ltd. | 42,262,500 | 651,809,296 | |||
China National Building Material Co. Ltd. Class H | 3,588,000 | 11,597,771 | |||
China Overseas Land & Investment Ltd. | 34,300,000 | 68,241,599 |
SCHEDULEOF INVESTMENTS | 3 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI EMERGING MARKETS INDEX FUND
February 29, 2008
Security | Shares | Value | |||
China Petroleum & Chemical Corp. Class H | 127,400,000 | $ | 144,909,487 | ||
China Railway Group Ltd. Class Ha,b | 24,500,000 | 29,284,186 | |||
China Resources Enterprises Ltd. | 17,164,000 | 62,319,086 | |||
China Resources Land Ltd. | 39,232,000 | 73,919,418 | |||
China Resources Power Holdings Co. Ltd. | 7,350,000 | 18,685,200 | |||
China Shenhua Energy Co. Ltd. Class H | 12,862,500 | 67,448,092 | |||
China Shipping Development Co. Ltd. Class H | 22,068,000 | 70,481,232 | |||
China Southern Airlines Co. Ltd. Class Ha | 1,964,000 | 1,999,175 | |||
China Telecom Corp. Ltd. Class H | 31,850,000 | 24,356,256 | |||
China Travel International Investment Hong Kong Ltd.b | 84,294,951 | 46,585,863 | |||
CITIC Pacific Ltd. | 13,475,000 | 74,383,406 | |||
CITIC Resources Holdings Ltd.a | 2,240,000 | 1,024,902 | |||
CNOOC Ltd. | 147,000,000 | 253,544,370 | |||
COSCO Pacific Ltd. | 7,350,000 | 16,210,214 | |||
Country Garden Holdings Co.a,b | 24,500,000 | 23,238,418 | |||
Datang International Power Generation Co. Ltd. | 19,616,000 | 13,513,236 | |||
Denway Motors Ltd.b | 46,550,000 | 24,050,819 | |||
Dongfang Electric Co. Ltd. | 2,028,000 | 12,380,714 | |||
FU JI Food and Catering Services Holdings Ltd. | 1,225,000 | 2,172,698 | |||
Global Bio-Chem Technology Group Co. Ltd. | 8,894,000 | 3,715,050 | |||
GOME Electrical Appliances Holdings Ltd.b | 14,700,000 | 32,873,860 | |||
Guangdong Investment Ltd.b | 17,154,110 | 9,281,847 | |||
Guangshen Railway Co. Ltd. Class Hb | 78,470,363 | 51,939,410 | |||
Guangzhou Investment Co. Ltd. | 37,804,000 | 9,085,807 |
Security | Shares | Value | |||
Guangzhou R&F Properties Co. Ltd. Class Hb | 980,000 | $ | 3,066,967 | ||
Harbin Power Equipment Co. Ltd. Class Hb | 2,450,000 | 5,586,037 | |||
Huadian Power International Corp. Ltd. Class Hb | 39,200,000 | 13,451,833 | |||
Huaneng Power International Inc. Class Hb | 29,034,000 | 24,329,803 | |||
Hunan Non-Ferrous Metals Corp. Ltd. Class Hb | 34,328,000 | 17,956,721 | |||
Industrial and Commercial Bank of China Class Hb | 253,593,000 | 180,563,990 | |||
Jiangsu Expressway Co. Ltd. Class Hb | 7,356,000 | 7,062,305 | |||
Jiangxi Copper Co. Ltd. | 24,518,000 | 58,863,493 | |||
KWG Property Holding Ltd.a,b | 6,125,000 | 6,171,721 | |||
Lenovo Group Ltd.b | 51,450,000 | 35,707,814 | |||
Li Ning Co. Ltd.b | 4,900,000 | 15,492,279 | |||
Maanshan Iron & Steel Co. Ltd. Class Hb | 26,950,000 | 17,249,330 | |||
Nine Dragons Paper Holdings Ltd.b | 12,545,000 | 22,572,664 | |||
PetroChina Co. Ltd. Class H | 149,450,000 | 227,421,616 | |||
Ping An Insurance (Group) | 13,478,500 | 105,324,465 | |||
Shanghai Forte Land Co. Class H | 7,350,000 | 3,211,814 | |||
Shanghai Industrial Holdings Ltd.b | 4,904,000 | 20,326,579 | |||
Shenzhen Investment Ltd.b | 34,986,000 | 19,200,224 | |||
Sinofert Holdings Ltd.b | 40,694,000 | 41,475,123 | |||
Sinopec Shanghai Petrochemical Co. Ltd. Class Hb | 29,424,000 | 14,256,968 | |||
Sinotrans Ltd. Class Hb | 29,400,000 | 9,370,940 | |||
Travelsky Technology Ltd. Class Hb | 4,713,000 | 3,997,841 | |||
Tsingtao Brewery Co. Ltd. Class Hb | 4,904,000 | 14,559,503 | |||
Weichai Power Co. Ltd. Class Hb | 4,901,000 | 25,069,859 |
4 | 2008 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI EMERGING MARKETS INDEX FUND
February 29, 2008
Security | Shares | Value | |||
XinAo Gas Holdings Ltd.b | 4,550,000 | $ | 8,455,977 | ||
Yanzhou Coal Mining Co. Ltd. Class Hb | 26,950,800 | 45,722,473 | |||
Zhejiang Expressway Co. Ltd. Class H | 26,950,000 | 27,086,298 | |||
Zijin Mining Group Co. Ltd. Class Hb | 49,000,000 | 67,133,209 | |||
3,938,411,978 | |||||
COLOMBIA – 0.02% | |||||
Bancolombia SA SP ADR | 146,799 | 4,954,466 | |||
4,954,466 | |||||
CZECH REPUBLIC – 2.17% | |||||
Central European Media Enterprises Ltd. Class Aa | 22,886 | 2,215,741 | |||
CEZ AS | 5,002,043 | 372,662,632 | |||
Komercni Banka AS | 342,494 | 84,274,925 | |||
Philip Morris CR AS | 14,051 | 6,122,929 | |||
Unipetrol ASa | 5,275,430 | 90,314,078 | |||
Zentiva NVb | 150,026 | 8,292,213 | |||
563,882,518 | |||||
EGYPT – 1.11% | |||||
Orascom Construction Industries Co. GDR | 837,180 | 209,085,705 | |||
Orascom Telecom Holding SAE GDR Reg Sb | 1,092,529 | 79,863,870 | |||
288,949,575 | |||||
HUNGARY – 1.43% | |||||
Gedeon Richter Rtb | 538,757 | 117,093,181 | |||
Magyar Telekom PLCb MOL Magyar Olaj-es | 3,818,752 | 18,548,559 | |||
Gazipari Rtb | 759,858 | 104,150,598 | |||
OTP Bank Ltd.b | 3,249,523 | 132,620,288 | |||
372,412,626 | |||||
INDIA – 6.30% | |||||
HDFC Bank Ltd. ADR | 3,105,375 | 338,827,466 | |||
ICICI Bank Ltd. SP ADR | 5,354,723 | 277,588,840 | |||
Infosys Technologies Ltd. SP ADRb | 5,830,236 | 226,912,785 | |||
Mahanagar Telephone Nigam Ltd. ADRb | 7,327,190 | 44,769,131 |
Security | Shares | Value | |||
Reliance Industries Ltd. GDRb,c | 2,634,975 | $ | 320,808,206 | ||
Satyam Computer Services Ltd. ADRb | 7,370,633 | 184,118,412 | |||
Tata Communications Ltd. ADRb | 6,691,946 | 165,960,261 | |||
Wipro Ltd. ADRb | 7,081,725 | 81,723,107 | |||
1,640,708,208 | |||||
INDONESIA – 2.33% | |||||
PT Aneka Tambang Tbk | 110,862,500 | 50,141,891 | |||
PT Astra Agro Lestari Tbk | 3,062,500 | 10,675,676 | |||
PT Astra International Tbk | 18,994,500 | 58,355,965 | |||
PT Bank Central Asia Tbk | 110,320,000 | 43,507,336 | |||
PT Bank Danamon Indonesia Tbk | 18,866,487 | 15,921,525 | |||
PT Bank Mandiri Tbk | 41,037,500 | 14,826,014 | |||
PT Bank Pan Indonesia Tbka | 305,812,522 | 21,928,091 | |||
PT Bank Rakyat Indonesia Tbk | 49,329,061 | 39,180,280 | |||
PT Bumi Resources Tbk | 170,275,000 | 144,635,135 | |||
PT Indosat Tbk | 1,837,500 | 1,388,513 | |||
PT Kalbe Farma Tbk | 290,157,126 | 33,608,935 | |||
PT Perusahaan Gas Negara Tbk | 23,170,500 | 35,273,348 | |||
PT Ramayana Lestari Sentosa Tbk | 118,911,870 | 10,625,330 | |||
PT Semen Gresik (Persero) Tbk | 6,285,000 | 3,674,628 | |||
PT Telekomunikasi Indonesia Tbk | 82,821,000 | 89,536,216 | |||
PT United Tractors Tbk | 22,746,771 | 33,248,176 | |||
606,527,059 | |||||
ISRAEL – 3.63% | |||||
Africa Israel Investments Ltd.b | 299,573 | 20,275,668 | |||
Aladdin Knowledge Systems Ltd.a | 96,795 | 2,053,990 | |||
Alvarion Ltd.a | 1,528,800 | 11,573,016 | |||
AudioCodes Ltd.a | 133,815 | 566,037 | |||
Bank Hapoalim Ltd.b | 14,228,542 | 62,634,786 | |||
Bank Leumi Le-Israelb | 18,628,730 | 87,698,704 | |||
Check Point Software Technologies Ltd.a | 1,968,100 | 43,140,752 | |||
Clal Insurance Co. Ltd. | 121,275 | 2,743,763 | |||
Discount Investment Corp. | 102,984 | 2,754,334 |
SCHEDULEOF INVESTMENTS | 5 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI EMERGING MARKETS INDEX FUND
February 29, 2008
Security | Shares | Value | |||
Elbit Systems Ltd.b | 938,350 | $ | 54,034,127 | ||
Elite Industries Ltd.a,b | 275,625 | 3,979,194 | |||
Given Imaging Ltd.a,b | 278,075 | 4,410,270 | |||
Israel Chemicals Ltd.b | 10,019,275 | 141,230,160 | |||
Israel Corp. Ltd. (The)b | 27,879 | 30,981,739 | |||
Israel Discount Bank | 21,032,485 | 55,115,420 | |||
Koor Industries Ltd. | 396,957 | 28,740,978 | |||
Makhteshim-Agan Industries Ltd.a,b | 4,307,224 | 36,851,556 | |||
Mizrahi Tefahot Bank Ltd.b | 6,703,372 | 52,047,086 | |||
NICE Systems Ltd.a | 245,200 | 8,030,129 | |||
Teva Pharmaceutical Industries Ltd.b | 6,046,600 | 295,712,767 | |||
944,574,476 | |||||
MALAYSIA – 0.54% | |||||
AMMB Holdings Bhd | 9,752,175 | 11,356,422 | |||
Bumiputra-Commerce Holdings Bhd | 2,034,000 | 6,685,553 | |||
Bursa Malaysia Bhd | 2,930,800 | 10,458,951 | |||
Gamuda Bhd | 12,166,000 | 15,005,178 | |||
Genting Bhd | 3,359,400 | 7,203,597 | |||
IGB Corp. Bhd | 4,577,800 | 2,751,409 | |||
IJM Corp. Bhd | 3,701,200 | 8,399,969 | |||
IOI Corp. Bhd | 5,265,000 | 13,267,569 | |||
MMC Corp. Bhd | 3,896,000 | 4,634,466 | |||
Resorts World Bhd | 19,905,500 | 23,304,608 | |||
Sime Darby Bhda | 1,501,673 | 5,452,937 | |||
SP Setia Bhd | 4,821,300 | 7,516,066 | |||
Tenaga Nasional Bhd | 3,152,700 | 8,931,581 | |||
UEM World Bhd | 3,896,000 | 4,268,587 | |||
YTL Corp. Bhd | 4,480,400 | 10,799,524 | |||
YTL Power International Bhd | 298,693 | 236,561 | |||
140,272,978 | |||||
MEXICO – 5.61% | |||||
Alfa SAB de CV Class Ab | 5,050,600 | 31,194,286 | |||
America Movil SAB de CV Series Lb | 131,075,000 | 394,143,405 | |||
Axtel SAB de CV Series CPOa,b | 1,225,000 | 2,704,114 | |||
Carso Infraestructura y Construccion SAB de CV Series B1a,b | 3,928,200 | 3,591,648 |
Security | Shares | Value | |||
Cemex SAB de CV Series CPOa,b | 55,982,564 | $ | 153,558,622 | ||
Consorcio ARA SAB de CVb | 32,979,800 | 34,246,585 | |||
Controladora Comercial Mexicana SA de CV BC Unitsb | 13,241,100 | 33,429,197 | |||
Corporacion Geo SAB de CV Series Ba,b | 6,648,700 | 20,854,921 | |||
Desarrolladora Homex SAB de CVa,b | 1,257,300 | 12,403,730 | |||
Empresas ICA SAB de CVa,b | 8,452,500 | 50,833,448 | |||
Fomento Economico Mexicano SAB de CV BD Unitsb | 21,338,000 | 85,027,101 | |||
Grupo Carso SA de CV Series A1b | 1,104,141 | 4,873,619 | |||
Grupo Financiero Banorte SAB de CV Series Ob | 12,996,256 | 52,102,397 | |||
Grupo Mexico SA de CV Series Bb | 13,352,500 | 93,220,714 | |||
Grupo Modelo SAB de CV Series Cb | 15,067,598 | 68,264,796 | |||
Grupo Televisa SA Series CPOb | 24,473,500 | 107,590,879 | |||
Industrias Penoles SAB de CVb | 1,225,088 | 29,495,928 | |||
Kimberly-Clark de Mexico SAB de CV Class Ab | 8,707,200 | 35,931,020 | |||
Telefonos de Mexico SAB de CV Series Lb | 61,580,000 | 102,094,231 | |||
Urbi Desarrollos Urbanos SA de CVa,b | 4,210,400 | 15,237,623 | |||
Wal-Mart de Mexico SAB de CV Series Vb | 35,869,500 | 130,281,820 | |||
1,461,080,084 | |||||
PERU – 0.61% | |||||
Compania de Minas | |||||
Buenaventura SA ADR | 2,077,718 | 157,968,900 | |||
157,968,900 | |||||
PHILIPPINE ISLANDS – 1.46% | |||||
Ayala Corp. | 4,452,108 | 47,860,298 | |||
Ayala Land Inc. | 39,886,200 | 11,581,931 | |||
Bank of the Philippine Islands | 28,510,200 | 39,103,327 |
6 | 2008 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI EMERGING MARKETS INDEX FUND
February 29, 2008
Security | Shares | Value | |||
Filinvest Land Inc.a | 459,743,375 | $ | 12,043,198 | ||
Globe Telecom Inc. | 563,500 | 20,609,910 | |||
Jollibee Foods Corp. | 44,246,600 | 53,579,226 | |||
Manila Electric Co.a | 14,555,852 | 28,417,455 | |||
Megaworld Corp. | 330,230,040 | 20,238,984 | |||
Metropolitan Bank & | 40 | 42 | |||
Petron Corp. | 244,476,000 | 37,458,327 | |||
Philippine Long | |||||
Distance Telephone Co. | 747,250 | 53,553,071 | |||
SM Investments Corp. | 2,353,291 | 16,719,910 | |||
SM Prime Holdings Inc. | 169,506,820 | 38,957,456 | |||
380,123,135 | |||||
RUSSIA – 8.94% | |||||
Comstar United Telesystems GDR | 275,665 | 2,729,084 | |||
JSC MMC Norilsk Nickel ADR | 7,436,940 | 218,274,189 | |||
LUKOIL SP ADR | 3,937,800 | 292,972,320 | |||
Mobile TeleSystems SP ADR | 1,102,500 | 90,471,150 | |||
Novolipetsk Steel GDR Reg S | 594,125 | 27,222,808 | |||
OAO Gazprom SP ADR Reg S | 18,375,508 | 933,475,806 | |||
OAO NOVATEK SP GDR Reg S | 589,225 | 44,898,945 | |||
OAO Tatneft SP ADR Reg S | 411,600 | 51,655,800 | |||
Polyus Gold SP ADR | 735,983 | 40,479,065 | |||
RAO Unified Energy System | 653,376 | 76,118,304 | |||
Rostelecom SP ADRb | 877,103 | 59,949,990 | |||
Sberbank GDR Reg Sb | 480,346 | 182,667,922 | |||
Surgutneftegaz SP ADRb | 834,225 | 38,416,061 | |||
Vimpel-Communications SP ADR | 5,627,879 | 195,456,238 | |||
VTB Bank OJSC GDR Reg Sa | 5,451,250 | 40,884,375 | |||
Wimm-Bill-Dann Foods OJSC ADR | 310,458 | 32,678,809 | |||
2,328,350,866 | |||||
SOUTH AFRICA – 7.68% | |||||
African Bank Investments Ltd. | 12,705,527 | 50,880,023 | |||
African Rainbow Minerals Ltd. | 305,025 | 8,002,529 | |||
Anglo Platinum Ltd. | 517,685 | 82,657,353 | |||
AngloGold Ashanti Ltd. | 1,238,475 | 45,210,003 | |||
ArcelorMittal South Africa Ltd. | 3,949,400 | 95,097,030 | |||
Aveng Ltd.b | 1,766,090 | 14,099,339 | |||
AVI Ltd. | 4,920,907 | 11,151,982 |
Security | Shares | Value | |||
Barloworld Ltd. | 2,486,884 | $ | 30,420,991 | ||
Bidvest Group Ltd. | 2,767,321 | 41,337,974 | |||
FirstRand Ltd. | 31,980,304 | 77,004,910 | |||
Foschini Ltd. | 6,005,006 | 32,375,064 | |||
Gold Fields Ltd. | 5,065,375 | 71,420,017 | |||
Grindrod Ltd. | 1,969,800 | 6,112,705 | |||
Harmony Gold Mining Co. Ltd.a | 2,552,900 | 31,623,002 | |||
Impala Platinum Holdings Ltd. | 4,516,114 | 190,771,020 | |||
Imperial Holdings Ltd. | 2,648,079 | 27,278,165 | |||
Investec Ltd. | 4,159,352 | 32,134,471 | |||
Kumba Iron Ore Ltd. | 455,700 | 19,774,393 | |||
Liberty Group Ltd. | 897,296 | 8,780,991 | |||
Metropolitan Holdings Ltd. | 10,294,251 | 19,087,606 | |||
MTN Group Ltd. | 12,389,993 | 197,827,641 | |||
Murray & Roberts Holdings Ltd. | 2,312,800 | 29,333,814 | |||
Nampak Ltd. | 8,192,291 | 19,515,124 | |||
Naspers Ltd. | 4,216,545 | 81,001,056 | |||
Nedbank Group Ltd. | 3,501,385 | 52,749,695 | |||
Network Healthcare Holdings Ltd.a | 19,385,425 | 23,888,094 | |||
Pick’n Pay Stores Ltd. | 5,546,075 | 22,138,167 | |||
Pretoria Portland Cement Co. Ltd. | 4,453,208 | 24,542,058 | |||
Reunert Ltd. | 1,730,298 | 12,810,998 | |||
Sanlam Ltd. | 19,562,464 | 47,230,121 | |||
Sappi Ltd. | 501,519 | 6,315,685 | |||
Sasol Ltd. | 5,122,123 | 265,466,738 | |||
Shoprite Holdings Ltd. | 12,785,325 | 67,086,264 | |||
SPAR Group Ltd. (The) | 1,969,924 | 12,619,344 | |||
Standard Bank Group Ltd. | 9,719,069 | 123,269,354 | |||
Steinhoff International Holdings Ltd. | 2,059,225 | 4,770,119 | |||
Telkom South Africa Ltd. | 1,483,626 | 26,936,290 | |||
Tiger Brands Ltd. | 1,700,684 | 30,660,336 | |||
Truworths International Ltd. | 10,204,341 | 34,832,842 | |||
Woolworths Holdings Ltd. | 13,798,895 | 22,067,855 | |||
2,000,281,163 | |||||
SOUTH KOREA – 12.20% | |||||
Daelim Industrial Co. Ltd. | 199,100 | 31,803,418 | |||
Doosan Heavy Industries & Construction Co. Ltd. | 231,790 | 34,433,422 |
SCHEDULEOF INVESTMENTS | 7 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI EMERGING MARKETS INDEX FUND
February 29, 2008
Security | Shares | Value | |||
Hyundai Development Co. | 212,800 | $ | 15,500,261 | ||
Hyundai Engineering & Construction Co. Inc. | 325,410 | 29,905,631 | |||
Hyundai Heavy Industries Co. Ltd. | 375,500 | 152,551,249 | |||
Hyundai Merchant Marine Co. Ltd.a | 286,780 | �� | 12,215,750 | ||
Kookmin Bank SP ADRa | 6,641,743 | 406,673,924 | |||
Korea Electric Power Corp. SP ADR | 16,064,159 | 278,070,592 | |||
KT Corp. SP ADRa | 8,539,869 | 207,433,418 | |||
LG. Philips LCD Co. Ltd. ADRa,b | 7,496,534 | 177,367,994 | |||
NHN Corp.a | 187,575 | 42,646,571 | |||
POSCO ADR | 5,201,350 | 703,742,655 | |||
Samsung Electronics Co. Ltd. GDRc | 2,725,050 | 798,439,650 | |||
Samsung Engineering Co. Ltd. | 187,990 | 20,019,168 | |||
Samsung Heavy Industries Co. Ltd. | 2,036,070 | 69,274,731 | |||
Shinhan Financial Group Co. Ltd. ADRa | 196,000 | 20,803,440 | |||
SK Telecom Co. Ltd. ADR | 7,854,856 | 175,948,774 | |||
3,176,830,648 | |||||
TAIWAN – 9.61% | |||||
Asia Cement Corp. | 3,051,000 | 5,161,485 | |||
AU Optronics Corp. SP ADRb | 17,188,574 | 327,957,992 | |||
Catcher Technology Co. Ltd. | 3,201,000 | 12,062,640 | |||
Cheng Shin Rubber Industry Co. Ltd. | 3,051,000 | 5,763,493 | |||
Chunghwa Telecom Co. Ltd. SP ADR | 23,660,504 | 580,628,768 | |||
CMC Magnetics Corp.a | 8,136,000 | 2,684,367 | |||
Compal Communications Inc. | 2,475,000 | 4,643,377 | |||
D-Link Corp. | 1,374,400 | 2,200,640 | |||
Epistar Corp. | 2,291,438 | 7,041,456 | |||
Evergreen Marine Corp. Ltd. | 10,170,000 | 8,553,130 | |||
Far Eastern Textile Ltd. | 5,085,000 | 8,520,233 | |||
Foxconn Technology Co. Ltd. | 1,068,000 | 7,116,545 | |||
HannStar Display Corp.a | 10,946,988 | 4,833,459 | |||
High Tech Computer Corp. | 3,126,000 | 66,534,304 | |||
Hon Hai Precision Industry Co. Ltd. | 5,085,000 | 30,922,853 |
Security | Shares | Value | |||
Macronix International Co. Ltd. | 21,957,000 | $ | 10,049,864 | ||
MediaTek Inc. | 3,145,000 | 36,216,076 | |||
MiTAC International Corp. | 7,119,000 | 6,240,495 | |||
Mosel Vitelic Inc. | 10,545,000 | 8,169,263 | |||
Siliconware Precision Industries Co. SP ADRb,d | 43,309,875 | 354,274,778 | |||
Synnex Technology International Corp. | 4,068,000 | 10,290,073 | |||
Taiwan Cement Corp. | 7,119,000 | 12,665,211 | |||
Taiwan Semiconductor Manufacturing Co. Ltd. SP ADR | 64,860,770 | 631,743,900 | |||
Tatung Co. Ltd.a | 14,763,000 | 8,882,154 | |||
U-Ming Marine Transport Corp. | 2,034,000 | 5,592,431 | |||
Uni-President Enterprises Co. | 6,102,000 | 9,020,262 | |||
United Microelectronics Corp. SP ADRb | 87,125,313 | 278,801,002 | |||
Wintek Corp. | 9,378,000 | 9,494,789 | |||
Yang Ming Marine Transport Corp. | 14,763,000 | 9,980,485 | |||
Yuanta Financial Holding Co. Ltd.a | 38,829,000 | 35,293,382 | |||
2,501,338,907 | |||||
THAILAND – 2.21% | |||||
Bangkok Bank PCL | 7,865,600 | 33,236,689 | |||
Bangkok Expressway PCL | 22,250,100 | 15,481,404 | |||
Banpu PCL | 2,511,000 | 38,293,249 | |||
Electricity Generating PCL | 3,378,700 | 10,412,514 | |||
IRPC PCL | 79,537,600 | 15,162,052 | |||
Kasikornbank PCL | 15,953,000 | 45,362,780 | |||
Krung Thai Bank PCL | 13,707,900 | 4,529,378 | |||
Precious Shipping PCL | 6,672,400 | 5,935,733 | |||
PTT Aromatics & Refining PCLa | 17,402,686 | 23,360,238 | |||
PTT Chemical PCL | 7,417,968 | 27,810,015 | |||
PTT Exploration & Production PCL | 18,795,500 | 96,142,192 | |||
PTT PCL | 10,920,100 | 118,655,257 | |||
Ratchaburi Electricity Generating Holding PCL | 39,832,400 | 55,683,101 | |||
Siam Cement PCL | 2,511,000 | 17,072,406 | |||
Siam City Cement PCL | 696,900 | 5,313,932 | |||
Siam Makro PCLd | 13,293,000 | 41,600,016 |
8 | 2008 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI EMERGING MARKETS INDEX FUND
February 29, 2008
Security | Shares | Value | |||
Thai Airways International PCL | 2,498,800 | $ | 2,560,327 | ||
Thanachart Capital PCL | 19,653,900 | 9,616,205 | |||
True Corp. PCLa | 28,799,400 | 4,940,961 | |||
United Broadcasting Corp. PCLa,e | 5,658,800 | 3,236,168 | |||
574,404,617 | |||||
TURKEY – 0.95% | |||||
Adana Cimento Sanayi TAS Class Ab | 4,487,732 | 23,214,008 | |||
Akbank TASb | 5,789,524 | 31,385,377 | |||
Akcansa Cimento Sanayi ve Ticaret ASb | 619,973 | 2,924,766 | |||
Arcelik ASb | 895,578 | 5,188,534 | |||
Dogan Yayin Holding ASa,b | 2,743,533 | 7,084,480 | |||
Eregli Demir ve Celik Fabrikalari TASb | 3,678,785 | 26,489,077 | |||
Hurriyet Gazetecilik ve Matbaacilik ASa,b | 1,869,513 | 4,518,088 | |||
Migros Turk TASb | 760,573 | 12,211,967 | |||
Petkim Petrokimya Holding ASa,b | 1,474,900 | 8,911,045 | |||
Tofas Turk Otomobil Fabrikasi ASb | 6,794,894 | 32,055,366 | |||
Trakya Cam Sanayii ASb | 292,378 | 580,764 | |||
Tupras-Turkiye Petrol Rafinerileri ASb | 953,084 | 24,650,424 | |||
Turk Sise ve Cam Fabrikalari ASb | 8,569,807 | 13,476,212 | |||
Turkiye Garanti Bankasi ASb | 5,243,340 | 31,679,191 | |||
Yapi ve Kredi Bankasi ASa,b | 10,223,172 | 23,352,745 | |||
247,722,044 | |||||
TOTAL COMMON STOCKS | 23,308,183,245 | ||||
PREFERRED STOCKS – 9.49% | |||||
BRAZIL – 9.49% | |||||
Aracruz Celulose SA SP ADR | 812,593 | 58,864,237 | |||
Banco Bradesco SA SP ADR | 12,415,375 | 389,718,621 | |||
Banco Itau Holding Financiera SA ADR | 15,243,900 | 386,280,426 |
Security | Shares | Value | |||
Brasil Telecom Participacoes SA ADR | 913,945 | $ | 63,153,600 | ||
Companhia Brasileira de Distribuicao Grupo Pao de Acucar SP ADRb | 1,054,284 | 45,745,383 | |||
Companhia de Bebidas das Americas ADR | 1,515,325 | 123,468,681 | |||
Companhia Energetica de Minas Gerais SP ADR | 606,398 | 11,539,754 | |||
Companhia Vale do Rio Doce SP ADR | 17,213,125 | 504,688,825 | |||
Gerdau SA SP ADR | 2,646,585 | 86,728,590 | |||
Net Servicos de Comunicacao SA ADRa,b | 1,837,584 | 20,103,169 | |||
Petroleo Brasileiro SA SP ADR | 7,016,800 | 687,155,224 | |||
Tele Norte Leste Participacoes SA ADR | 2,303,232 | 57,649,897 | |||
Votorantim Celulose e Papel SA SP ADR | 1,128,357 | 35,498,111 | |||
2,470,594,518 | |||||
TOTAL PREFERRED STOCKS | 2,470,594,518 | ||||
EXCHANGE-TRADED FUNDS – 0.45% | |||||
iShares MSCI Malaysia Index Fundb,d | 1,099,526 | 13,777,061 | |||
iShares MSCI South Korea Index Fundd | 816,043 | 46,351,242 | |||
iShares MSCI Taiwan Index Fundb,d | 3,768,100 | 58,141,783 | |||
TOTAL EXCHANGE- | 118,270,086 |
SCHEDULEOF INVESTMENTS | 9 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI EMERGING MARKETS INDEX FUND
February 29, 2008
Security | Shares | Value | ||||
SHORT-TERM INVESTMENTS – 7.34% |
| |||||
MONEY MARKET FUNDS – 7.34% | ||||||
Barclays Global Investors | ||||||
Funds Institutional | ||||||
Money Market Fund, | ||||||
Institutional Shares | ||||||
3.59%d,f | 43,515,291 | $ | 43,515,291 | |||
BGI Cash Premier Fund LLC | ||||||
3.63%d,f,g | 1,865,745,492 | 1,865,745,492 | ||||
1,909,260,783 | ||||||
TOTAL SHORT-TERM INVESTMENTS | 1,909,260,783 | |||||
TOTAL INVESTMENTS | 27,806,308,632 | |||||
Other Assets, Less Liabilities – (6.82)% | (1,775,356,824 | ) | ||||
NET ASSETS – 100.00% | $ | 26,030,951,808 | ||||
ADR – American Depositary Receipts
GDR – Global Depositary Receipts
SP ADR – Sponsored American Depositary Receipts
SP GDR – Sponsored 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 | This security may be resold to qualified institutional buyers under Rule 144A of the Securities Act of 1933. |
d | Affiliated issuer. See Note 2. |
e | Security valued at fair value in accordance with procedures approved by the Board of Directors. See Note 1. |
f | The rate quoted is the annualized seven-day yield of the fund at period end. |
g | This security represents an investment of securities lending collateral. See Note 5. |
See notes to financial statements.
10 | 2008 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Statement of Assets and Liabilities (Unaudited)
iSHARES®, INC.
February 29, 2008
iShares MSCI Emerging Markets Index Fund | ||||
ASSETS | ||||
Investments, at cost: | ||||
Unaffiliated issuers | $ | 23,387,162,858 | ||
Affiliated issuers (Note 2) | 2,423,490,902 | |||
Total cost of investments | $ | 25,810,653,760 | ||
Investments in securities, at value (including securities on loana) (Note 1): | ||||
Unaffiliated issuers | $ | 25,382,902,969 | ||
Affiliated issuers (Note 2) | 2,423,405,663 | |||
Total value of investments | 27,806,308,632 | |||
Foreign currency, at valueb | 25,608,941 | |||
Receivables: | ||||
Investment securities sold | 125,172,721 | |||
Due from custodian (Note 4) | 19,929,488 | |||
Dividends and interest | 57,148,892 | |||
Capital shares sold | 17,651,050 | |||
Total Assets | 28,051,819,724 | |||
LIABILITIES | ||||
Payables: | ||||
Investment securities purchased | 141,201,252 | |||
Collateral for securities on loan (Note 5) | 1,865,745,492 | |||
Investment advisory fees (Note 2) | 13,921,172 | |||
Total Liabilities | 2,020,867,916 | |||
NET ASSETS | $ | 26,030,951,808 | ||
Net assets consist of: | ||||
Paid-in capital | $ | 21,567,267,119 | ||
Distributions in excess of net investment income | (6,058,929 | ) | ||
Undistributed net realized gain | 2,474,998,963 | |||
Net unrealized appreciation on investments and translation of assets and liabilities in foreign currencies | 1,994,744,655 | |||
NET ASSETS | $ | 26,030,951,808 | ||
Shares outstandingc | 183,750,000 | |||
Net asset value per share | $ | 141.67 | ||
a | Securities on loan with market value of $1,754,722,912. See Note 5. |
b | Cost of foreign currency: $26,277,162. |
c | $0.001 par value, number of shares authorized: 500,000,000. |
See notes to financial statements.
FINANCIAL STATEMENTS | 11 |
Table of Contents
Statement of Operations (Unaudited)
iSHARES®, INC.
Six months ended February 29, 2008
iShares MSCI Emerging Markets Index Fund | ||||
NET INVESTMENT INCOME | ||||
Dividends from unaffiliated issuersa | $ | 225,022,736 | ||
Dividends from affiliated issuers (Note 2) | 2,447,146 | |||
Interest from affiliated issuers (Note 2) | 1,564,216 | |||
Securities lending income from affiliated issuers (Note 2) | 11,157,507 | |||
Total investment income | 240,191,605 | |||
EXPENSES | ||||
Investment advisory fees (Note 2) | 88,996,590 | |||
Foreign taxes (Note 1) | 37,984 | |||
Total expenses | 89,034,574 | |||
Less investment advisory fees waived (Note 2) | (367,588 | ) | ||
Net expenses | 88,666,986 | |||
Net investment income | 151,524,619 | |||
NET REALIZED AND UNREALIZED GAIN (LOSS) | ||||
Net realized gain (loss) from: | ||||
Investments in unaffiliated issuers | (197,218,785 | ) | ||
Investments in affiliated issuers (Note 2) | 38,551,064 | |||
In-kind redemptions | 2,751,829,475 | |||
Foreign currency transactions | (446,648 | ) | ||
Net realized gain | 2,592,715,106 | |||
Net change in unrealized appreciation (depreciation) on: | ||||
Investments | (2,085,023,130 | ) | ||
Translation of assets and liabilities in foreign currencies | (1,021,486 | ) | ||
Net change in unrealized appreciation (depreciation) | (2,086,044,616 | ) | ||
Net realized and unrealized gain | 506,670,490 | |||
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS | $ | 658,195,109 | ||
a | Net of foreign withholding tax of $9,741,164. |
See notes to financial statements.
12 | 2008 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Statements of Changes in Net Assets
iSHARES®, INC.
iShares MSCI Emerging Markets Index Fund | ||||||||
Six months ended February 29, 2008 (Unaudited) | Year ended August 31, 2007 | |||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||
OPERATIONS: | ||||||||
Net investment income | $ | 151,524,619 | $ | 250,914,401 | ||||
Net realized gain | 2,592,715,106 | 2,359,691,063 | ||||||
Net change in unrealized appreciation (depreciation) | (2,086,044,616 | ) | 2,303,383,261 | |||||
Net increase in net assets resulting from operations | 658,195,109 | 4,913,988,725 | ||||||
DISTRIBUTIONS TO SHAREHOLDERS: | ||||||||
From net investment income | (360,643,610 | ) | (209,458,860 | ) | ||||
Total distributions to shareholders | (360,643,610 | ) | (209,458,860 | ) | ||||
CAPITAL SHARE TRANSACTIONS: | ||||||||
Proceeds from shares sold | 14,510,632,821 | 7,873,614,616 | ||||||
Cost of shares redeemed | (6,975,603,644 | ) | (6,349,153,507 | ) | ||||
Net increase in net assets from capital share transactions | 7,535,029,177 | 1,524,461,109 | ||||||
INCREASE IN NET ASSETS | 7,832,580,676 | 6,228,990,974 | ||||||
NET ASSETS | ||||||||
Beginning of period | 18,198,371,132 | 11,969,380,158 | ||||||
End of period | $ | 26,030,951,808 | $ | 18,198,371,132 | ||||
Undistributed (distributions in excess of) net investment income included in net assets at end of period | $ | (6,058,929 | ) | $ | 203,060,062 | |||
SHARES ISSUED AND REDEEMED | ||||||||
Shares sold | 96,300,000 | 67,200,000 | ||||||
Shares redeemed | (48,000,000 | ) | (54,600,000 | ) | ||||
Net increase in shares outstanding | 48,300,000 | 12,600,000 | ||||||
See notes to financial statements.
FINANCIAL STATEMENTS | 13 |
Table of Contents
iSHARES®, INC.
(For a share outstanding throughout each period)
iShares MSCI Emerging Markets Index Fund | ||||||||||||||||||||||||
Six months Feb. 29, 2008 | Year ended Aug. 31, 2007 | Year ended Aug. 31, 2006 | Year ended Aug. 31, 2005 | Year ended Aug. 31, 2004 | Period from Aug. 31, 2003 | |||||||||||||||||||
Net asset value, beginning of period | $ | 134.35 | $ | 97.43 | $ | 77.92 | $ | 53.96 | $ | 45.13 | $ | 33.75 | ||||||||||||
Income from investment operations: | ||||||||||||||||||||||||
Net investment incomeb | 0.90 | 1.91 | 1.65 | 1.65 | 1.13 | 0.26 | ||||||||||||||||||
Net realized and unrealized gainc | 8.37 | 36.58 | 18.85 | 24.72 | 7.97 | 11.12 | ||||||||||||||||||
Total from investment operations | 9.27 | 38.49 | 20.50 | 26.37 | 9.10 | 11.38 | ||||||||||||||||||
Less distributions from: | ||||||||||||||||||||||||
Net investment income | (1.95 | ) | (1.57 | ) | (0.99 | ) | (2.41 | ) | (0.27 | ) | – | |||||||||||||
Total distributions | (1.95 | ) | (1.57 | ) | (0.99 | ) | (2.41 | ) | (0.27 | ) | – | |||||||||||||
Net asset value, end of period | $ | 141.67 | $ | 134.35 | $ | 97.43 | $ | 77.92 | $ | 53.96 | $ | 45.13 | ||||||||||||
Total return | 6.78 | %d | 39.86 | % | 26.44 | % | 46.17 | % | 20.21 | % | 33.72 | %d | ||||||||||||
Ratios/Supplemental data: | ||||||||||||||||||||||||
Net assets, end of period (000s) | $ | 26,030,952 | $ | 18,198,371 | $ | 11,969,380 | $ | 7,000,858 | $ | 1,958,596 | $ | 297,846 | ||||||||||||
Ratio of expenses to average net assets prior to waived feese | 0.72 | % | 0.74 | % | 0.77 | % | 0.78 | % | 0.77 | % | 0.78 | % | ||||||||||||
Ratio of expenses to average net assets after waived feese | 0.72 | % | 0.74 | % | 0.77 | % | 0.77 | % | 0.76 | % | 0.78 | % | ||||||||||||
Ratio of expenses to average net assets after waived fees and exclusive of foreign taxese | 0.72 | % | 0.74 | % | 0.75 | % | 0.74 | % | 0.74 | % | 0.72 | % | ||||||||||||
Ratio of net investment income to average net assetse | 1.22 | % | 1.63 | % | 1.77 | % | 2.40 | % | 2.10 | % | 1.58 | % | ||||||||||||
Portfolio turnover ratef | 6 | % | 5 | % | 12 | % | 9 | % | 8 | % | 10 | % |
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.
14 | 2008 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.
These financial statements relate only to the iShares MSCI Emerging Markets 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 global emerging markets, as measured by the MSCI Emerging Markets Index compiled by MSCI 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 certain emerging markets, 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 | 15 |
Table of Contents
Notes to Financial Statements (Unaudited) (Continued)
iSHARES®, INC.
Investments that may be valued using fair value pricing include, but are not limited to: (i) an unlisted security related to corporate actions; (ii) a restricted security (i.e., one that may not be publicly sold without registration under the Securities Act of 1933, as amended); (iii) a security whose trading has been suspended or which has been de-listed from its primary trading exchange; (iv) a security that is thinly traded; (v) a security in default or bankruptcy proceedings for which there is no current market quotation; (vi) a security affected by currency controls or restrictions; and (vii) a security affected by a significant event (i.e., an event that occurs after the close of the markets on which the security is traded but before the time as of which the Fund’s NAV is computed and that may materially affect the value of the Fund’s investments). Examples of events that may be “significant events” are government actions, natural disasters, armed conflict, acts of terrorism, and significant market fluctuations.
Valuing the Fund’s investments using fair value pricing will result in using prices for those investments that may differ from current market valuations. Accordingly, fair value pricing could result in a difference between the prices used to calculate the Fund’s net asset value and the prices used by the Fund’s benchmark index, which, in turn, could result in a difference between the Fund’s performance and the performance of the Fund’s benchmark index.
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.
FOREIGN TAXES
The Fund may be subject to foreign taxes (a portion of which may be reclaimable) on income, corporate events, capital gains on investments or currency repatriation. All foreign taxes are recorded in accordance with the applicable foreign tax regulations and rates that exist in the foreign markets in which the Fund invests. These foreign taxes, if any, are paid by the Fund and are disclosed in the Statement of Operations. Foreign taxes payable as of February 29, 2008, if any, are reflected in the Fund’s Statement of Assets and Liabilities.
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.
16 | 2008 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Notes to Financial Statements (Unaudited) (Continued)
iSHARES®, INC.
FEDERAL INCOME TAXES
The Fund is treated as a separate entity 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 ordinary income and any net capital 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 29, 2008.
As of August 31, 2007, the tax year-end of the Fund, the Fund had tax basis net capital loss carryforwards of $840,778, $20,296,564, $11,239,258 and $29,973,301 expiring in 2012, 2013, 2014 and 2015, 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 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 29, 2008, the cost of investments for federal income tax purposes was $25,927,451,083. Net unrealized appreciation was $1,878,857,549, of which $3,210,120,255 represented gross unrealized appreciation on securities and $1,331,262,706 represented gross unrealized depreciation on securities.
The Fund adopted Financial Accounting Standards Board (“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 a tax position taken or expected to be taken in a tax return. FIN 48 provides guidance on the measurement, recognition, classification and disclosures of tax positions, along with accounting for the related interest and penalties. Management has reviewed the tax positions as of February 29, 2008, inclusive of the prior three open tax return years, and has determined that the implementation of FIN 48 did not have a material impact on the Fund’s financial statements.
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.
NOTESTO FINANCIAL STATEMENTS | 17 |
Table of Contents
Notes to Financial Statements (Unaudited) (Continued)
iSHARES®, INC.
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 the Fund and another iShares Fund in the same advisory fee category, as follows:
Investment Advisory Fee | Aggregate 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 |
BGFA voluntarily waived a portion of its advisory fees for the 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.
State Street Bank and Trust Company (“State Street”) serves as administrator, custodian and transfer agent for the Company. As compensation for its services, State Street 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 Fund. BarCap and BGI are affiliates of BGFA, the Fund’s investment adviser. As securities lending agent, BGI receives, as fees, a share of the income earned on investment of the cash collateral received for the loan of securities. For the six months ended February 29, 2008, BGI earned securities lending agent fees of $11,157,507.
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.
The Fund may invest its securities lending cash collateral, if any, in the BGI Cash Premier Fund LLC (“Premier Fund”), an affiliated private money market fund managed by BGFA. Although the Premier Fund is not registered as an investment company under the 1940 Act, it intends to operate as a money market fund in compliance with Rule 2a-7 under the 1940 Act. See Note 5 for additional information regarding the Premier Fund.
The 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 29, 2008, the Fund held shares of the iShares MSCI Malaysia, iShares MSCI South Korea and iShares MSCI Taiwan Index Funds.
18 | 2008 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Notes to Financial Statements (Unaudited) (Continued)
iSHARES®, INC.
For the six months ended February 29, 2008, the Fund had direct investments (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 as follows:
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 | 1,100 | – | – | 1,100 | $ | 13,777,061 | $ | 445,966 | $ | – | ||||||||
iShares MSCI South Korea Index Fund | 602 | 427 | 213 | 816 | 46,351,242 | 303,605 | 4,385,795 | |||||||||||
iShares MSCI Taiwan | 3,100 | 2,139 | 1,471 | 3,768 | 58,141,783 | 1,481,837 | 704,381 | |||||||||||
Siam Makro PCL | 9,843 | 6,950 | 3,500 | 13,293 | 41,600,016 | 367,926 | 4,314,611 | |||||||||||
Siliconware Precision | 37,664 | 23,891 | 18,245 | 43,310 | 354,274,778 | (152,188 | )a | 29,146,277 |
a | Prior period dividend income adjustment. |
As of February 29, 2008, 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 29, 2008, aggregated $1,622,465,209 and $1,563,040,995, respectively.
In-kind purchases and sales (see Note 4) for the six months ended February 29, 2008, aggregated $13,880,635,168 and $6,659,055,912, respectively.
4. CAPITAL SHARE TRANSACTIONS
The Company issues and redeems capital shares of the Fund only in aggregations of a specified number of shares (each, a “Creation Unit”) at net asset value. Except when aggregated in Creation Units, shares of the Fund are not redeemable. Transactions in capital shares for the Fund are disclosed in detail in the Statements of Changes in Net Assets.
The consideration for the purchase of Creation Units of the Fund generally consists of the in-kind deposit of a designated portfolio of equity securities, which constitutes a substantial replication, or a portfolio sampling representation of the securities involved in the MSCI Emerging Markets Index and an amount of cash. Investors purchasing and redeeming Creation Units pay a purchase transaction fee and a redemption transaction fee directly to State Street, the administrator, to offset transfer and other transaction costs associated with the issuance and redemption of Creation Units.
From time to time, settlement of securities related to in-kind contributions or in-kind redemptions may be delayed. In such cases, securities related to in-kind contributions are reflected as “Due from custodian” and securities related to in-kind redemptions are reflected as “Securities related to in-kind transactions” in the Statement of Assets and Liabilities.
NOTESTO FINANCIAL STATEMENTS | 19 |
Table of Contents
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 29, 2008, the Fund had loaned securities which were collateralized by cash. The cash collateral received was invested in the Premier Fund. The Premier Fund seeks to achieve its investment objective by investing in a portfolio of high-quality, short-term fixed-income instruments, including money market funds (which may be managed by BGFA or its affiliate) and other instruments that, at the time of investment, have remaining maturities of 397 calendar days or less from the date of acquisition.
The market value of the securities on loan as of February 29, 2008 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 PRONOUNCEMENT
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. Management does not believe that the adoption of this standard will have a material impact on the Fund’s financial statements.
20 | 2008 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
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 S&P North American Natural Resources Sector (IGE)
iShares S&P North American Technology-Multimedia Networking (IGN)
iShares S&P North American Technology- Semiconductors (IGW)
iShares S&P North American Technology-Software (IGV)
iShares S&P North American Technology Sector (IGM)
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. (IYY)
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 FTSE NAREIT Industrial/Office (FIO)
iShares FTSE NAREIT Mortgage REITs (REM)
iShares FTSE NAREIT Real Estate 50 (FTY)
iShares FTSE NAREIT Residential (REZ)
iShares FTSE NAREIT Retail (RTL)
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 Infrastructure (IGF)
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 Chile (ECH)
iShares MSCI France (EWQ)
iShares MSCI Germany (EWG)
iShares MSCI Hong Kong (EWH)
iShares MSCI Israel Capped Investable Market (EIS)
iShares MSCI Italy (EWI)
iShares MSCI Japan (EWJ)
iShares MSCI Japan Small Cap (SCJ)
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 Thailand Investable Market (THD)
iShares MSCI Turkey Investable Market (TUR)
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 iBoxx $ High Yield Corporate (HYG)
iShares Lehman Government/Credit (GBF)
iShares Lehman Intermediate Government/Credit (GVI)
iShares Lehman MBS (MBB)
iShares S&P National Municipal (MUB)
iShares S&P California Municipal (CMF)
iShares S&P New York Municipal (NYF)
iShares JPMorgan USD Emerging Markets (EMB)
iShares Specialty Index Funds
iShares KLD 400 Social (DSI)
iShares KLD Select SocialSM (KLD)
iShares Dow Jones Select Dividend (DVY)
iShares Dow Jones EPAC Select Dividend (IDV)
iShares S&P U.S. Preferred Stock (PFF)
iShares International Index Funds
iShares FTSE Developed Small Cap ex-North America (IFSM)
iShares FTSE EPRA/NAREIT Global Real Estate ex-U.S. (IFGL)
iShares FTSE EPRA/NAREIT North America (IFNA)
iShares FTSE EPRA/NAREIT Europe (IFEU)
iShares FTSE EPRA/NAREIT Asia (IFAS)
iShares MSCI ACWI (ACWI)
iShares MSCI ACWI ex US (ACWX)
iShares MSCI BRIC (BKF)
iShares MSCI EAFE (EFA)
iShares MSCI EAFE Growth (EFG)
iShares MSCI EAFE Value (EFV)
iShares MSCI EAFE Small Cap (SCZ)
iShares MSCI Emerging Markets (EEM)
iShares MSCI EMU (EZU)
iShares MSCI Kokusai (TOK)
iShares MSCI Pacific ex-Japan (EPP)
iShares S&P Asia 50 (AIA)
iShares S&P Europe 350 (IEV)
iShares S&P Latin America 40 (ILF)
iShares S&P World ex-U.S. Property (WPS)
iSHARES FAMILYOF FUNDS | 21 |
Table of Contents
The iShares® Family of Funds (Continued)
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 Lehman Brothers, nor are they sponsored, endorsed, issued, sold or promoted by Cohen & Steers Capital Management, Inc., Dow Jones & Company, Inc., European Public Real Estate Association (“EPRA®”), FTSE International Limited (“FTSE”), FTSE/Xinhua Index Limited (“FXI”), iBoxx®, J.P. Morgan Securities Inc., KLD Research & Analytics, Inc., MSCI Inc., Morningstar Inc., The NASDAQ Stock Market, Inc., National Association of Real Estate Investment Trusts (“NAREIT”), New York Stock Exchange, Inc., Frank Russell Company, or Standard & Poor’s. None of these companies make any representation regarding the advisability of investing in the iShares Funds. Neither SEI nor BGI, nor any of their affiliates, are affiliated with the companies listed above. FXI does not make any warranty regarding the FTSE/Xinhua Index. All rights in the FTSE/Xinhua Index vest in FXI. Neither FTSE nor NAREIT makes any warranty regarding the FTSE NAREIT Real Estate 50 Index, FTSE NAREIT Residential Index, FTSE NAREIT Retail Index, FTSE NAREIT Mortgage REITs Index or FTSE NAREIT Industrial/Office Index; all rights vest in NAREIT. Neither FTSE nor NAREIT makes any warranty regarding the FTSE EPRA/NAREIT Global Real Estate ex-US/North America/Europe/Asia Index; all rights vest in FTSE, NAREIT, and EPRA. All rights in the FTSE Developed Small Cap ex-North America Index vest in FTSE. “FTSE” is a trade- and servicemark of London Stock Exchange and The Financial Times Limited; “Xinhua” is a trade- and service mark of Xinhua Financial Network Limited. “NAREIT” is a trademark of NAREIT; “EPRA®” is a trademark of EPRA.
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 2008 Semi-Annual Report.
6712-iS-0408
22 | 2008 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Table of Contents
Item 2. | Code of Ethics. |
Not applicable to this semi-annual filing.
Item 3. | Audit Committee Financial Expert. |
Not applicable to this semi-annual filing.
Item 4. | Principal Accountant Fees and Services. |
Not applicable to this semi-annual filing.
Item 5. | Audit Committee of Listed Registrants. |
Not applicable to this semi-annual filing.
Item 6. | Schedule of Investments. |
The Funds’ full schedules of investments are included as part of the reports to shareholders filed under Item 1 of this form.
Item 7. | Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies. |
Not applicable to the Registrant.
Item 8: | Portfolio Managers of Closed-End Management Investment Companies. |
Not applicable to the Registrant.
Item 9. | Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers. |
Not applicable to the Registrant.
Item 10. | Submission of Matters to a Vote of Security Holders. |
There were no material changes to the procedures by which shareholders may recommend nominees to the Registrant’s Board of Directors.
Item 11. | Controls and Procedures. |
(a) The President (the Registrant’s Principal Executive Officer) and Chief Financial Officer (the Registrant’s 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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SIGNATURES
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/ Michael A. Latham | |
Michael A. Latham, President (Principal Executive Officer) | ||
Date: April 17, 2008 |
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/ Michael A. Latham | |
Michael A. Latham, President (Principal Executive Officer) | ||
Date: April 17, 2008 | ||
By: | /s/ Geoffrey D. Flynn | |
Geoffrey D. Flynn, Treasurer and Chief Financial Officer (Principal Financial Officer) | ||
Date: April 17, 2008 |