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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, 2009
Date of reporting period: February 28, 2009
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Item 1. | Reports to Stockholders. |
2009 SEMI-ANNUAL REPORT TO SHAREHOLDERS
iSHARES® MSCI SERIES
FEBRUARY 28, 2009
Would you prefer to receive materials like this electronically? See inside cover for details.
iShares MSCI Austria Investable Market Index Fund
iShares MSCI Belgium Investable Market Index Fund
iShares MSCI EMU Index Fund
iShares MSCI France Index Fund
iShares MSCI Germany Index Fund
iShares MSCI Italy Index Fund
iShares MSCI Netherlands Investable Market Index Fund iShares MSCI Spain Index Fund
iShares MSCI Sweden Index Fund
iShares MSCI Switzerland Index Fund
Shares MSCI United Kingdom Index Fund
iShares
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iShares
Dear iShares Shareholder:
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iSHARES® MSCI AUSTRIA INVESTABLE MARKET INDEX FUND
Performance as of February 28, 2009
The iShares MSCI Austria Investable Market 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 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 28, 2009, the total return for the Fund was (64.35)%, while the total return for the Index was (65.86)%.
Average Annual Total Returns | ||||||||||||||||
Year Ended 2/28/09 | Five Years Ended 2/28/09 | Ten Years Ended 2/28/09 | ||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||
(68.04)% | (67.73)% | (69.34)% | (5.70)% | (6.01)% | (5.91)% | 2.34% | 2.29% | 1.82% | ||||||||
Cumulative Total Returns | ||||||||||||||||
Year Ended 2/28/09 | Five Years Ended 2/28/09 | Ten Years Ended 2/28/09 | ||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||
(68.04)% | (67.73)% | (69.34)% | (25.44)% | (26.66)% | (26.27)% | 25.98% | 25.40% | 19.82% |
“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 primary 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 2/28/09 | |||
Sector | Percentage of Net Assets | ||
Financial | 21.83 | % | |
Industrial | 20.91 | ||
Energy | 16.25 | ||
Communications | 15.19 | ||
Utilities | 8.28 | ||
Basic Materials | 7.60 | ||
Consumer Non-Cyclical | 5.19 | ||
Consumer Cyclical | 3.50 | ||
Short-Term and Other Net Assets | 1.25 | ||
TOTAL | 100.00 | % | |
TEN LARGEST FUND HOLDINGS As of 2/28/09 | |||
Security | Percentage of Net Assets | ||
Telekom Austria AG | 15.19 | % | |
OMV AG | 14.78 | ||
Oesterreichische Elektrizitaetswirtschafts | 7.50 | ||
Erste Group Bank AG | 6.58 | ||
voestalpine AG | 5.61 | ||
Andritz AG | 4.38 | ||
Oesterreichische Post AG | 4.33 | ||
Intercell AG | 3.92 | ||
Raiffeisen International Bank Holding AG | 3.74 | ||
Vienna Insurance Group | 3.30 | ||
TOTAL | 69.33 | % | |
FUND PERFORMANCE OVERVIEWS | 1 |
Table of Contents
Fund Performance Overview
iSHARES® MSCI BELGIUM INVESTABLE MARKET INDEX FUND
Performance as of February 28, 2009
The iShares MSCI Belgium Investable Market 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 28, 2009, the total return for the Fund was (56.21)%, while the total return for the Index was (56.93)%.
Average Annual Total Returns | ||||||||||||||||
Year Ended 2/28/09 | Five Years Ended 2/28/09 | Ten Years Ended 2/28/09 | ||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||
(64.45)% | (64.18)% | (65.79)% | (8.70)% | (8.89)% | (9.60)% | (4.80)% | (4.99)% | (6.62)% | ||||||||
Cumulative Total Returns | ||||||||||||||||
Year Ended 2/28/09 | Five Years Ended 2/28/09 | Ten Years Ended 2/28/09 | ||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||
(64.45)% | (64.18)% | (65.79)% | (36.55)% | (37.21)% | (39.64)% | (38.85)% | (40.05)% | (49.58)% |
“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 primary 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 2/28/09 | |||
Sector | Percentage of Net Assets | ||
Consumer Non-Cyclical | 44.51 | % | |
Financial | 15.62 | ||
Communications | 13.03 | ||
Diversified | 12.27 | ||
Basic Materials | 8.98 | ||
Industrial | 3.34 | ||
Consumer Cyclical | 1.01 | ||
Technology | 0.28 | ||
Short-Term and Other Net Assets | 0.96 | ||
TOTAL | 100.00 | % | |
TEN LARGEST FUND HOLDINGS As of 2/28/09 | |||
Security | Percentage of Net Assets | ||
Anheuser-Busch InBev NV | 24.98 | % | |
Delhaize Group | 8.50 | ||
Belgacom SA | 8.22 | ||
Groupe Bruxelles Lambert SA | 7.79 | ||
Fortis | 5.33 | ||
Colruyt SA | 4.74 | ||
Solvay SA | 4.68 | ||
UCB SA | 4.19 | ||
Mobistar SA | 3.21 | ||
Umicore | 2.90 | ||
TOTAL | 74.54 | % | |
2 | 2009 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Fund Performance Overview
iSHARES® MSCI EMU INDEX FUND
Performance as of February 28, 2009
The iShares MSCI EMU Index Fund (the “Fund”) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of publicly traded securities in the aggregate in the 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 28, 2009, the total return for the Fund was (50.00)%, while the total return for the Index was (49.94)%.
Average Annual Total Returns | ||||||||||||||||
Year Ended 2/28/09 | Five Years Ended 2/28/09 | Inception to 2/28/09 | ||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||
(55.60)% | (55.70)% | (55.49)% | (3.95)% | (4.34)% | (3.75)% | (4.71)% | (4.82)% | (4.43)% | ||||||||
Cumulative Total Returns | ||||||||||||||||
Year Ended 2/28/09 | Five Years Ended 2/28/09 | Inception to 2/28/09 | ||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||
(55.60)% | (55.70)% | (55.49)% | (18.24)% | (19.88)% | (17.40)% | (33.93)% | (34.64)% | (32.28)% |
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 primary 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 after the Fund’s inception, for the period from inception to the first day of secondary market trading in shares of the Fund (7/31/00), the NAV of the Fund is used as a proxy for the Market 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 2/28/09 | |||
Sector | Percentage of Net Assets | ||
Financial | 19.42 | % | |
Communications | 16.16 | ||
Consumer Non-Cyclical | 15.07 | ||
Utilities | 11.21 | ||
Industrial | 10.72 | ||
Energy | 9.96 | ||
Basic Materials | 7.35 | ||
Consumer Cyclical | 6.09 | ||
Technology | 2.50 | ||
Diversified | 1.25 | ||
Short-Term and Other Net Assets | 0.27 | ||
TOTAL | 100.00 | % | |
TEN LARGEST FUND HOLDINGS As of 2/28/09 | |||
Security | Percentage of Net Assets | ||
Total SA (France) | 5.08 | % | |
Telefonica SA (Spain) | 3.91 | ||
Sanofi-Aventis (France) | 2.74 | ||
Eni SpA (Italy) | 2.64 | ||
Banco Santander SA (Spain) | 2.55 | ||
E.ON AG (Germany) | 2.47 | ||
Siemens AG Registered (Germany) | 2.24 | ||
France Telecom SA (France) | 2.06 | ||
Bayer AG (Germany) | 1.85 | ||
Nokia OYJ (Finland) | 1.77 | ||
TOTAL | 27.31 | % | |
FUND PERFORMANCE OVERVIEWS | 3 |
Table of Contents
Fund Performance Overview
iSHARES® MSCI FRANCE INDEX FUND
Performance as of February 28, 2009
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 28, 2009, the total return for the Fund was (47.22)%, while the total return for the Index was (47.16)%.
Average Annual Total Returns | ||||||||||||||||
Year Ended 2/28/09 | Five Years Ended 2/28/09 | Ten Years Ended 2/28/09 | ||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||
(50.83)% | (50.93)% | (50.77)% | (3.51)% | (3.83)% | (3.32)% | (0.61)% | (0.75)% | (0.37)% | ||||||||
Cumulative Total Returns | ||||||||||||||||
Year Ended 2/28/09 | Five Years Ended 2/28/09 | Ten Years Ended 2/28/09 | ||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||
(50.83)% | (50.93)% | (50.77)% | (16.37)% | (17.75)% | (15.55)% | (5.96)% | (7.27)% | (3.61)% |
“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 primary 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 2/28/09 | |||
Sector | Percentage of Net Assets | ||
Consumer Non-Cyclical | 21.31 | % | |
Energy | 16.19 | ||
Communications | 13.93 | ||
Financial | 13.24 | ||
Industrial | 11.83 | ||
Utilities | 8.41 | ||
Basic Materials | 5.49 | ||
Consumer Cyclical | 4.98 | ||
Diversified | 2.25 | ||
Technology | 2.01 | ||
Short-Term and Other Net Assets | 0.36 | ||
TOTAL | 100.00 | % | |
TEN LARGEST FUND HOLDINGS As of 2/28/09 | |||
Security | Percentage of Net Assets | ||
Total SA | 15.42 | % | |
Sanofi-Aventis | 8.30 | ||
France Telecom SA | 6.28 | ||
GDF Suez | 5.35 | ||
Vivendi | 4.28 | ||
BNP Paribas | 4.11 | ||
Carrefour SA | 3.27 | ||
Groupe Danone | 3.18 | ||
L’Air Liquide SA | 2.78 | ||
ArcelorMittal | 2.59 | ||
TOTAL | 55.56 | % | |
4 | 2009 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Fund Performance Overview
iSHARES® MSCI GERMANY INDEX FUND
Performance as of February 28, 2009
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 28, 2009, the total return for the Fund was (50.65)%, while the total return for the Index was (50.79)%.
Average Annual Total Returns | ||||||||||||||||
Year Ended 2/28/09 | Five Years Ended 2/28/09 | Ten Years Ended 2/28/09 | ||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||
(54.77)% | (54.46)% | (54.89)% | (1.75)% | (1.92)% | (1.61)% | (1.58)% | (1.60)% | (1.45)% | ||||||||
Cumulative Total Returns | ||||||||||||||||
Year Ended 2/28/09 | Five Years Ended 2/28/09 | Ten Years Ended 2/28/09 | ||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||
(54.77)% | (54.46)% | (54.89)% | (8.45)% | (9.26)% | (7.78)% | (14.70)% | (14.90)% | (13.63)% |
“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 primary 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 2/28/09 | |||
Sector | Percentage of Net Assets | ||
Financial | 16.65 | % | |
Utilities | 16.64 | ||
Basic Materials | 16.12 | ||
Industrial | 14.53 | ||
Consumer Cyclical | 14.41 | ||
Consumer Non-Cyclical | 8.50 | ||
Communications | 7.43 | ||
Technology | 4.68 | ||
Energy | 0.52 | ||
Diversified | 0.33 | ||
Short-Term and Other Net Assets | 0.19 | ||
TOTAL | 100.00 | % | |
TEN LARGEST FUND HOLDINGS As of 2/28/09 | |||
Security | Percentage of Net Assets | ||
E.ON AG | 10.24 | % | |
Siemens AG Registered | 9.23 | ||
Bayer AG | 7.66 | ||
Deutsche Telekom AG Registered | 7.21 | ||
RWE AG | 5.88 | ||
Allianz SE Registered | 5.23 | ||
Muenchener Rueckversicherungs-Gesellschaft AG Registered | 5.15 | ||
BASF SE | 4.99 | ||
SAP AG | 4.68 | ||
Volkswagen AG | 4.37 | ||
TOTAL | 64.64 | % | |
FUND PERFORMANCE OVERVIEWS | 5 |
Table of Contents
Fund Performance Overview
iSHARES® MSCI ITALY INDEX FUND
Performance as of February 28, 2009
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 28, 2009, the total return for the Fund was (51.18)%, while the total return for the Index was (51.34)%.
Average Annual Total Returns | ||||||||||||||||
Year Ended 2/28/09 | Five Years Ended 2/28/09 | Ten Years Ended 2/28/09 | ||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||
(57.74)% | (57.95)% | (58.78)% | (7.05)% | (7.42)% | (7.34)% | (3.13)% | (3.26)% | (3.52)% | ||||||||
Cumulative Total Returns | ||||||||||||||||
Year Ended 2/28/09 | Five Years Ended 2/28/09 | Ten Years Ended 2/28/09 | ||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||
(57.74)% | (57.95)% | (58.78)% | (30.61)% | (31.99)% | (31.71)% | (27.21)% | (28.21)% | (30.11)% |
“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 primary 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 2/28/09 | |||
Sector | Percentage of Net Assets | ||
Financial | 36.38 | % | |
Energy | 27.07 | ||
Utilities | 14.50 | ||
Communications | 7.26 | ||
Industrial | 5.94 | ||
Consumer Non-Cyclical | 5.30 | ||
Consumer Cyclical | 2.87 | ||
Diversified | 0.29 | ||
Short-Term and Other Net Assets | 0.39 | ||
TOTAL | 100.00 | % | |
TEN LARGEST FUND HOLDINGS As of 2/28/09 | |||
Security | Percentage of Net Assets | ||
Eni SpA | 24.46 | % | |
Intesa Sanpaolo SpA | 8.62 | ||
Enel SpA | 7.80 | ||
Assicurazioni Generali SpA | 7.68 | ||
Terna SpA | 4.93 | ||
UniCredito SpA | 4.86 | ||
Telecom Italia SpA | 4.10 | ||
Unione di Banche Italiane ScpA | 3.32 | ||
Finmeccanica SpA | 2.82 | ||
Mediobanca SpA | 2.66 | ||
TOTAL | 71.25 | % | |
6 | 2009 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Fund Performance Overview
iSHARES® MSCI NETHERLANDS INVESTABLE MARKET INDEX FUND
Performance as of February 28, 2009
The iShares MSCI Netherlands Investable Market 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 28, 2009, the total return for the Fund was (50.06)%, while the total return for the Index was (50.07)%.
Average Annual Total Returns | ||||||||||||||||
Year Ended 2/28/09 | Five Years Ended 2/28/09 | Ten Years Ended 2/28/09 | ||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||
(54.28)% | (54.17)% | (54.25)% | (3.91)% | (4.23)% | (3.59)% | (3.90)% | (4.14)% | (2.94)% | ||||||||
Cumulative Total Returns | ||||||||||||||||
Year Ended 2/28/09 | Five Years Ended 2/28/09 | Ten Years Ended 2/28/09 | ||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||
(54.28)% | (54.17)% | (54.25)% | (18.08)% | (19.42)% | (16.70)% | (32.81)% | (34.49)% | (25.82)% |
“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 primary 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 2/28/09 | |||
Sector | Percentage of Net Assets | ||
Consumer Non-Cyclical | 34.68 | % | |
Communications | 21.24 | ||
Industrial | 15.24 | ||
Financial | 13.04 | ||
Basic Materials | 8.08 | ||
Technology | 4.87 | ||
Energy | 1.91 | ||
Diversified | 0.61 | ||
Consumer Cyclical | 0.21 | ||
Short-Term and Other Net Assets | 0.12 | ||
TOTAL | 100.00 | % | |
TEN LARGEST FUND HOLDINGS As of 2/28/09 | |||
Security | Percentage of Net Assets | ||
Unilever NV | 17.74 | % | |
Koninklijke KPN NV | 12.70 | ||
Koninklijke Philips Electronics NV | 7.17 | ||
Koninklijke Ahold NV | 7.03 | ||
Akzo Nobel NV | 5.62 | ||
Reed Elsevier NV | 4.91 | ||
ASML Holding NV | 4.34 | ||
ING Groep NV | 4.30 | ||
TNT NV | 3.98 | ||
Heineken NV | 3.67 | ||
TOTAL | 71.46 | % | |
FUND PERFORMANCE OVERVIEWS | 7 |
Table of Contents
Fund Performance Overview
iSHARES® MSCI SPAIN INDEX FUND
Performance as of February 28, 2009
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 28, 2009, the total return for the Fund was (42.02)%, while the total return for the Index was (43.30)%.
Average Annual Total Returns | ||||||||||||||||
Year Ended 2/28/09 | Five Years Ended 2/28/09 | Ten Years Ended 2/28/09 | ||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||
(48.81)% | (48.63)% | (49.76)% | 1.69% | 1.39% | 1.35% | 2.10% | 1.86% | 1.98% | ||||||||
Cumulative Total Returns | ||||||||||||||||
Year Ended 2/28/09 | Five Years Ended 2/28/09 | Ten Years Ended 2/28/09 | ||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||
(48.81)% | (48.63)% | (49.76)% | 8.73% | 7.16% | 6.92% | 23.07% | 20.25% | 21.68% |
“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 primary 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 2/28/09 | |||
Sector | Percentage of Net Assets | ||
Financial | 34.96 | % | |
Communications | 26.03 | ||
Utilities | 14.41 | ||
Industrial | 8.26 | ||
Energy | 5.56 | ||
Consumer Cyclical | 4.46 | ||
Consumer Non-Cyclical | 4.00 | ||
Technology | 1.56 | ||
Basic Materials | 0.57 | ||
Short-Term and Other Net Assets | 0.19 | ||
TOTAL | 100.00 | % | |
TEN LARGEST FUND HOLDINGS As of 2/28/09 | |||
Security | Percentage of Net Assets | ||
Telefonica SA | 25.31 | % | |
Banco Santander SA | 17.06 | ||
Banco Bilbao Vizcaya | 7.24 | ||
Iberdrola SA | 4.75 | ||
Repsol YPF SA | 4.46 | ||
Industria de Diseno Textil SA | 4.08 | ||
Actividades de Construcciones y Servicios SA | 3.88 | ||
Union Fenosa SA | 3.76 | ||
Banco Popular Espanol SA | 2.63 | ||
Red Electrica Corporacion SA | 2.40 | ||
TOTAL | 75.57 | % | |
8 | 2009 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Fund Performance Overview
iSHARES® MSCI SWEDEN INDEX FUND
Performance as of February 28, 2009
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 28, 2009, the total return for the Fund was (47.81)%, while the total return for the Index was (47.73)%.
Average Annual Total Returns | ||||||||||||||||
Year Ended 2/28/09 | Five Years Ended 2/28/09 | Ten Years Ended 2/28/09 | ||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||
(54.42)% | (54.32)% | (54.53)% | (3.20)% | (3.53)% | (3.13)% | (0.09)% | (0.37)% | 0.61% | ||||||||
Cumulative Total Returns | ||||||||||||||||
Year Ended 2/28/09 | Five Years Ended 2/28/09 | Ten Years Ended 2/28/09 | ||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||
(54.42)% | (54.32)% | (54.53)% | (14.99)% | (16.47)% | (14.71)% | (0.87)% | (3.64)% | 6.22% |
“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 primary 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 2/28/09 | |||
Sector | Percentage of Net Assets | ||
Communications | 29.61 | % | |
Industrial | 22.42 | ||
Financial | 18.13 | ||
Consumer Cyclical | 17.52 | ||
Consumer Non-Cyclical | 6.64 | ||
Basic Materials | 4.88 | ||
Energy | 0.71 | ||
Short-Term and Other Net Assets | 0.09 | ||
TOTAL | 100.00 | % | |
TEN LARGEST FUND HOLDINGS As of 2/28/09 | |||
Security | Percentage of Net Assets | ||
Telefonaktiebolaget LM Ericsson AB Class B | 18.51 | % | |
Hennes & Mauritz AB Class B | 14.43 | ||
Nordea Bank AB | 7.85 | ||
TeliaSonera AB | 6.76 | ||
Svenska Handelsbanken AB Class A | 4.15 | ||
Sandvik AB | 4.14 | ||
Investor AB Class B | 3.95 | ||
Volvo AB Class B | 3.49 | ||
Atlas Copco AB Class A | 3.29 | ||
Svenska Cellulosa AB Class B | 2.76 | ||
TOTAL | 69.33 | % | |
FUND PERFORMANCE OVERVIEWS | 9 |
Table of Contents
Fund Performance Overview
iSHARES® MSCI SWITZERLAND INDEX FUND
Performance as of February 28, 2009
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 28, 2009, the total return for the Fund was (37.97)%, while the total return for the Index was (39.02)%.
Average Annual Total Returns | ||||||||||||||||
Year Ended 2/28/09 | Five Years Ended 2/28/09 | Ten Years Ended 2/28/09 | ||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||
(43.15)% | (43.40)% | (43.63)% | (0.18)% | (0.49)% | (1.10)% | (0.21)% | (0.49)% | (0.44)% | ||||||||
Cumulative Total Returns | ||||||||||||||||
Year Ended 2/28/09 | Five Years Ended 2/28/09 | Ten Years Ended 2/28/09 | ||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||
(43.15)% | (43.40)% | (43.63)% | (0.91)% | (2.43)% | (5.36)% | (2.13)% | (4.77)% | (4.30)% |
“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 primary 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 2/28/09 | |||
Sector | Percentage of Net Assets | ||
Consumer Non-Cyclical | 58.31 | % | |
Financial | 17.17 | ||
Basic Materials | 8.70 | ||
Industrial | 8.49 | ||
Communications | 2.91 | ||
Consumer Cyclical | 2.64 | ||
Technology | 0.25 | ||
Utilities | 0.22 | ||
Short-Term and Other Net Assets | 1.31 | ||
TOTAL | 100.00 | % | |
TEN LARGEST FUND HOLDINGS As of 2/28/09 | |||
Security | Percentage of Net Assets | ||
Nestle SA Registered | 20.24 | % | |
Roche Holding AG Genusschein | 13.52 | ||
Novartis AG Registered | 13.46 | ||
ABB Ltd. Registered | 5.19 | ||
Syngenta AG Registered | 4.94 | ||
Credit Suisse Group AG Registered | 4.94 | ||
UBS AG Registered | 4.42 | ||
Zurich Financial Services AG Registered | 4.21 | ||
Synthes Inc. | 3.67 | ||
Swisscom AG Registered | 2.91 | ||
TOTAL | 77.50 | % | |
10 | 2009 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Fund Performance Overview
iSHARES® MSCI UNITED KINGDOM INDEX FUND
Performance as of February 28, 2009
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 28, 2009, the total return for the Fund was (45.92)%, while the total return for the Index was (46.01)%.
Average Annual Total Returns | ||||||||||||||||
Year Ended 2/28/09 | Five Years Ended 2/28/09 | Ten Years Ended 2/28/09 | ||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||
(51.41)% | (51.48)% | (51.36)% | (5.50)% | (6.02)% | (4.97)% | (3.30)% | (3.49)% | (2.73)% | ||||||||
Cumulative Total Returns | ||||||||||||||||
Year Ended 2/28/09 | Five Years Ended 2/28/09 | Ten Years Ended 2/28/09 | ||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||
(51.41)% | (51.48)% | (51.36)% | (24.66)% | (26.67)% | (22.49)% | (28.51)% | (29.93)% | (24.20)% |
“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 primary 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 2/28/09 | |||
Sector | Percentage of Net Assets | ||
Consumer Non-Cyclical | 29.22 | % | |
Energy | 23.77 | ||
Financial | 14.54 | ||
Communications | 10.96 | ||
Basic Materials | 7.26 | ||
Utilities | 5.48 | ||
Industrial | 3.62 | ||
Consumer Cyclical | 3.39 | ||
Technology | 0.63 | ||
Diversified | 0.11 | ||
Short-Term and Other Net Assets | 1.02 | ||
TOTAL | 100.00 | % | |
TEN LARGEST FUND HOLDINGS As of 2/28/09 | |||
Security | Percentage of Net Assets | ||
BP PLC | 9.03 | % | |
Vodafone Group PLC | 7.07 | ||
HSBC Holdings PLC | 6.40 | ||
GlaxoSmithKline PLC | 5.98 | ||
Royal Dutch Shell PLC Class A | 5.90 | ||
Royal Dutch Shell PLC Class B | 4.30 | ||
British American Tobacco PLC | 3.67 | ||
BG Group PLC | 3.63 | ||
AstraZeneca PLC | 3.49 | ||
Tesco PLC | 2.82 | ||
TOTAL | 52.29 | % | |
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, 2008 to February 28, 2009.
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 (9/1/08) | Ending Account Value (2/28/09) | Annualized Expense Ratio | Expenses Paid During Perioda (9/1/08 to 2/28/09) | |||||
Austria Investable Market | |||||||||
Actual | $1,000.00 | $ 356.50 | 0.55 | % | $1.85 | ||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,022.10 | 0.55 | 2.76 | |||||
Belgium Investable Market | |||||||||
Actual | 1,000.00 | 437.90 | 0.55 | 1.96 | |||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,022.10 | 0.55 | 2.76 | |||||
EMU | |||||||||
Actual | 1,000.00 | 500.00 | 0.56 | 2.08 | |||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,022.00 | 0.56 | 2.81 | |||||
France | |||||||||
Actual | 1,000.00 | 527.80 | 0.56 | 2.12 | |||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,022.00 | 0.56 | 2.81 |
12 | 2009 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Shareholder Expenses (Unaudited) (Continued)
iSHARES®, INC.
iShares MSCI Index Fund | Beginning Account Value (9/1/08) | Ending Account Value (2/28/09) | Annualized Expense Ratio | Expenses Paid During Perioda (9/1/08 to 2/28/09) | |||||
Germany | |||||||||
Actual | $1,000.00 | $ 493.50 | 0.55 | % | $2.04 | ||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,022.10 | 0.55 | 2.76 | |||||
Italy | |||||||||
Actual | 1,000.00 | 488.20 | 0.55 | 2.03 | |||||
Hypothetical (5% return before expenses) | 1,000.00 | 1022.10 | 0.55 | 2.76 | |||||
Netherlands Investable Market | |||||||||
Actual | 1,000.00 | 499.40 | 0.55 | 2.04 | |||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,022.10 | 0.55 | 2.76 | |||||
Spain | |||||||||
Actual | 1,000.00 | 579.80 | 0.56 | 2.19 | |||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,022.00 | 0.56 | 2.81 | |||||
Sweden | |||||||||
Actual | 1,000.00 | 521.90 | 0.55 | 2.08 | |||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,022.10 | 0.55 | 2.76 | |||||
Switzerland | |||||||||
Actual | 1,000.00 | 620.30 | 0.56 | 2.25 | |||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,022.00 | 0.56 | 2.81 | |||||
United Kingdom | |||||||||
Actual | 1,000.00 | 540.80 | 0.56 | 2.14 | |||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,022.00 | 0.56 | 2.81 |
a | Expenses are calculated using each Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (181 days) and divided by the number of days in the year (365 days). |
SHAREHOLDER EXPENSES | 13 |
Table of Contents
Schedule of Investments (Unaudited)
iSHARES® MSCI AUSTRIA INVESTABLE MARKET INDEX FUND
February 28, 2009
Security | Shares | Value | |||
COMMON STOCKS – 98.75% | |||||
AIRLINES – 0.82% | |||||
Austrian Airlines AGa,b | 98,610 | $ | 479,668 | ||
479,668 | |||||
AUTO MANUFACTURERS – 0.18% | |||||
Rosenbauer International AG | 3,648 | 107,721 | |||
107,721 | |||||
BANKS – 10.32% | |||||
Erste Group Bank AGb | 395,978 | 3,857,334 | |||
Raiffeisen International Bank Holding AGb | 115,140 | 2,192,041 | |||
6,049,375 | |||||
BIOTECHNOLOGY – 3.92% | |||||
Intercell AGa | 78,261 | 2,294,045 | |||
2,294,045 | |||||
BUILDING MATERIALS – 2.49% | |||||
Wienerberger AGb | 177,758 | 1,456,162 | |||
1,456,162 | |||||
COMMERCIAL SERVICES – 0.41% | |||||
Kapsch TrafficCom AG | 11,913 | 241,779 | |||
241,779 | |||||
ELECTRIC – 8.28% | |||||
EVN AG | 31,056 | 457,141 | |||
Oesterreichische Elektrizitaetswirtschafts AG Class A | 141,303 | 4,395,021 | |||
4,852,162 | |||||
ELECTRICAL COMPONENTS & | |||||
Zumtobel AG | 69,486 | 573,629 | |||
573,629 | |||||
ENGINEERING & CONSTRUCTION – 5.58% | |||||
Flughafen Wien AGb | 28,785 | 789,661 | |||
Meinl Airports International AGa | 164,616 | 993,085 | |||
Strabag SE | 113,715 | 1,486,120 | |||
3,268,866 | |||||
ENTERTAINMENT – 2.50% | |||||
bwin Interactive Entertainment AGa,b | 57,696 | 1,466,269 | |||
1,466,269 | |||||
ENVIRONMENTAL CONTROL – 0.64% | |||||
BWT AGb | 23,766 | 372,169 | |||
372,169 |
Security | Shares | Value | |||
FOOD – 0.86% | |||||
Agrana Beteiligungs AGb | 8,307 | $ | 501,139 | ||
501,139 | |||||
FOREST PRODUCTS & PAPER – 1.99% | |||||
Mayr-Melnhof Karton AG | 17,955 | 1,166,868 | |||
1,166,868 | |||||
INSURANCE – 3.30% | |||||
Vienna Insurance Group | 85,899 | 1,932,091 | |||
1,932,091 | |||||
IRON & STEEL – 5.61% | |||||
voestalpine AG | 210,786 | 3,287,464 | |||
3,287,464 | |||||
MACHINERY – 4.61% | |||||
Andritz AG | 89,034 | 2,565,731 | |||
A-TEC Industries AGa,b | 19,564 | 134,672 | |||
2,700,403 | |||||
MACHINERY - CONSTRUCTION & MINING – 0.55% | |||||
Palfinger AGb | 31,578 | 323,653 | |||
323,653 | |||||
MANUFACTURING – 1.73% | |||||
RHI AGa | 53,751 | 669,011 | |||
Semperit AG Holding | 17,100 | 347,486 | |||
1,016,497 | |||||
OIL & GAS – 14.78% | |||||
OMV AG | 327,123 | 8,662,394 | |||
8,662,394 | |||||
OIL & GAS SERVICES – 1.47% | |||||
Schoeller-Bleckmann Oilfield Equipment AG | 31,179 | 859,692 | |||
859,692 | |||||
REAL ESTATE – 8.21% | |||||
Atrium European Real Estate Ltd.a,b | 489,915 | 871,103 | |||
CA Immo International AG | 48,280 | 134,900 | |||
CA Immobilien Anlagen AGa,b | 212,097 | 759,634 | |||
conwert Immobilien Invest SEa,b | 187,872 | 930,567 | |||
ECO Business-Immobilien AGa | 62,529 | 107,210 | |||
Immoeast AGa | 776,796 | 799,121 | |||
IMMOFINANZ AGa,b | 838,014 | 830,169 | |||
Sparkassen Immobilien AGa | 150,651 | 380,755 | |||
4,813,459 |
14 | 2009 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI AUSTRIA INVESTABLE MARKET INDEX FUND
February 28, 2009
Security | Shares | Value | ||||
TELECOMMUNICATIONS – 15.19% | ||||||
Telekom Austria AG | 677,274 | $ | 8,902,779 | |||
8,902,779 | ||||||
TRANSPORTATION – 4.33% |
| |||||
Oesterreichische Post AG | 77,292 | 2,534,613 | ||||
2,534,613 | ||||||
TOTAL COMMON STOCKS | 57,862,897 | |||||
SHORT-TERM INVESTMENTS – 20.35% |
| |||||
MONEY MARKET FUNDS – 20.35% |
| |||||
Barclays Global Investors Funds | 10,172,836 | 10,172,836 | ||||
Barclays Global Investors Funds | 1,700,600 | 1,700,600 | ||||
Barclays Global Investors Funds | 48,485 | 48,485 | ||||
11,921,921 | ||||||
TOTAL SHORT-TERM INVESTMENTS |
| |||||
(Cost: $11,921,921) | 11,921,921 | |||||
TOTAL INVESTMENTS IN |
| |||||
(Cost: $225,807,820) | 69,784,818 | |||||
Other Assets, Less Liabilities – (19.10)% | (11,192,087 | ) | ||||
NET ASSETS – 100.00% | $ | 58,592,731 | ||||
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 | All or a portion of 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 INVESTABLE MARKET INDEX FUND
February 28, 2009
Security | Shares | Value | |||
COMMON STOCKS – 99.04% | |||||
AGRICULTURE – 0.36% | |||||
SIPEF NV | 9,541 | $ | 224,175 | ||
224,175 | |||||
APPAREL – 0.41% | |||||
Van De Velde NV | 7,917 | 251,375 | |||
251,375 | |||||
BANKS – 9.52% | |||||
Dexia SAa | 491,869 | 1,049,493 | |||
Fortis | 1,955,093 | 3,282,613 | |||
KBC Group NV | 144,130 | 1,537,456 | |||
5,869,562 | |||||
BEVERAGES – 24.98% | |||||
Anheuser-Busch InBev NV | 556,220 | 15,400,113 | |||
15,400,113 | |||||
BIOTECHNOLOGY – 0.13% | |||||
Devgen NVa,b | 17,558 | 77,156 | |||
77,156 | |||||
BUILDING MATERIALS – 0.06% | |||||
Deceuninck NV | 11,793 | 34,599 | |||
34,599 | |||||
CHEMICALS – 5.71% | |||||
Recticel SA | 12,992 | 40,096 | |||
Solvay SA | 50,344 | 2,885,585 | |||
Tessenderlo Chemie NV | 19,894 | 590,981 | |||
3,516,662 | |||||
COMPUTERS – 0.15% | |||||
Econocom Group SA | 13,648 | 90,308 | |||
90,308 | |||||
DIVERSIFIED FINANCIAL SERVICES – 0.19% | |||||
KBC Ancora SCA | 24,360 | 115,400 | |||
115,400 | |||||
ELECTRICAL COMPONENTS & | |||||
NV Bekaert SA | 10,556 | 519,172 | |||
519,172 | |||||
ELECTRONICS – 0.71% | |||||
Barco NV | 9,947 | 166,253 | |||
EVS Broadcast Equipment SA | 8,526 | 268,545 | |||
434,798 |
Security | Shares | Value | |||
ENGINEERING & CONSTRUCTION – 0.34% | |||||
Compagnie d’Entreprises CFE | 6,090 | $ | 153,532 | ||
Hamon & Cie (International) SA | 2,436 | 58,783 | |||
212,315 | |||||
ENTERTAINMENT – 0.15% | |||||
Kinepolisa | 4,466 | 90,753 | |||
90,753 | |||||
FOOD – 13.24% | |||||
Colruyt SA | 12,789 | 2,923,681 | |||
Delhaize Group | 89,726 | 5,239,150 | |||
8,162,831 | |||||
HEALTH CARE - PRODUCTS – 0.21% | |||||
Ion Beam Applications SAa | 16,849 | 132,460 | |||
132,460 | |||||
HOLDING COMPANIES - DIVERSIFIED – 12.27% | |||||
Ackermans & van Haaren NV | 21,112 | 986,729 | |||
Compagnie Nationale a Portefeuille SA | 38,976 | 1,635,034 | |||
Groupe Bruxelles Lambert SA | 74,095 | 4,799,322 | |||
Sofina SA | 2,322 | 139,638 | |||
7,560,723 | |||||
INVESTMENT COMPANIES – 0.37% | |||||
RHJ International SAb | 54,810 | 226,237 | |||
226,237 | |||||
MANUFACTURING – 0.43% | |||||
AGFA-Gevaert NVb | 116,116 | 266,926 | |||
266,926 | |||||
MEDIA – 0.05% | |||||
Roularta Media Group NV | 2,292 | 32,021 | |||
32,021 | |||||
MINING – 3.27% | |||||
Nyrstar NV | 73,080 | 227,397 | |||
Umicore | 116,928 | 1,789,478 | |||
2,016,875 | |||||
PHARMACEUTICALS – 5.59% | |||||
Arseus NV | 23,548 | 171,966 | |||
Omega Pharma SA | 17,661 | 474,402 | |||
ThromboGenics NVb | 18,270 | 214,635 | |||
UCB SA | 92,771 | 2,583,876 | |||
3,444,879 |
16 | 2009 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI BELGIUM INVESTABLE MARKET INDEX FUND
February 28, 2009
Security | Shares | Value | |||
REAL ESTATE – 0.29% | |||||
Atenor Group SA | 4,060 | $ | 179,185 | ||
179,185 | |||||
REAL ESTATE INVESTMENT TRUSTS – 4.30% | |||||
Befimmo SCA | 11,165 | 1,006,788 | |||
Cofinimmo SA | 9,744 | 1,058,094 | |||
Intervest Offices NV | 5,887 | 157,013 | |||
Leasinvest Real Estate SCA | 1,218 | 83,472 | |||
Warehouses De Pauw SCA | 5,481 | 224,845 | |||
Wereldhave Belgium NV | 1,827 | 121,820 | |||
2,652,032 | |||||
RETAIL – 0.45% | |||||
SA D’Ieteren NV | 2,233 | 276,682 | |||
276,682 | |||||
SEMICONDUCTORS – 0.13% | |||||
Melexis NV | 15,631 | 82,386 | |||
82,386 | |||||
TELECOMMUNICATIONS – 12.98% | |||||
Belgacom SA | 154,077 | 5,065,319 | |||
Mobistar SA | 31,871 | 1,979,767 | |||
Option NVa,b | 27,202 | 48,713 | |||
Telenet Group Holding NVa,b | 51,765 | 908,584 | |||
8,002,383 | |||||
TRANSPORTATION – 0.96% | |||||
Compagnie Maritime Belge SA | 11,977 | 214,633 | |||
Euronav SA | 20,097 | 254,732 | |||
Exmar NV | 12,789 | 121,820 | |||
591,185 | |||||
VENTURE CAPITAL – 0.95% | |||||
GIMV NV | 14,616 | 584,736 | |||
584,736 | |||||
TOTAL COMMON STOCKS | 61,047,929 | ||||
RIGHTS – 0.00% | |||||
BANKS – 0.00% | |||||
Fortisa,b,c | 1,513,303 | 192 | |||
192 | |||||
TOTAL RIGHTS | 192 |
Security | Shares | Value | ||||
SHORT-TERM INVESTMENTS – 1.48% | ||||||
MONEY MARKET FUNDS – 1.48% |
| |||||
Barclays Global Investors Funds Institutional Money Market | 729,811 | $ | 729,811 | |||
Barclays Global Investors Funds | 122,003 | 122,003 | ||||
Barclays Global Investors Funds | 63,951 | 63,951 | ||||
915,765 | ||||||
TOTAL SHORT-TERM INVESTMENTS |
| |||||
(Cost: $915,765) | 915,765 | |||||
TOTAL INVESTMENTS IN SECURITIES – 100.52% | ||||||
(Cost: $148,369,364) | 61,963,886 | |||||
Other Assets, Less Liabilities – (0.52)% | (322,530 | ) | ||||
NET ASSETS – 100.00% | $ | 61,641,356 | ||||
a | All or a portion of this security represents a security on loan. See Note 5. |
b | Non-income earning security. |
c | Security valued using Level 3 inputs. 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 | All or a portion of this security represents an investment of securities lending collateral. See Note 5. |
See notes to financial statements.
SCHEDULESOF INVESTMENTS | 17 |
Table of Contents
Schedule of Investments (Unaudited)
February 28, 2009
Security | Shares | Value | |||
COMMON STOCKS – 98.31% | |||||
AUSTRIA – 0.94% | |||||
Erste Group Bank AGa | 53,189 | $ | 518,129 | ||
Oesterreichische | 22,719 | 706,641 | |||
OMV AG | 46,728 | 1,237,383 | |||
Raiffeisen International Bank | 15,340 | 292,044 | |||
Strabag SE | 12,744 | 166,549 | |||
Telekom Austria AG | 87,467 | 1,149,755 | |||
Vienna Insurance Group | 9,734 | 218,943 | |||
voestalpine AG | 32,568 | 507,937 | |||
Wienerberger AGa | 24,309 | 199,135 | |||
4,996,516 | |||||
BELGIUM – 2.99% | |||||
Anheuser-Busch InBev NV | 191,632 | 5,305,732 | |||
Belgacom SA | 42,015 | 1,381,253 | |||
Colruyt SA | 4,956 | 1,132,986 | |||
Compagnie Nationale a | 13,022 | 546,270 | |||
Delhaize Group | 27,140 | 1,584,719 | |||
Dexia SAa | 165,200 | 352,485 | |||
Fortis | 591,180 | 992,595 | |||
Groupe Bruxelles Lambert SA | 23,600 | 1,528,632 | |||
KBC Group NV | 44,132 | 470,763 | |||
Mobistar SA | 5,713 | 354,881 | |||
Solvay SA | 16,994 | 974,051 | |||
UCB SA | 26,795 | 746,300 | |||
Umicore | 36,816 | 563,436 | |||
15,934,103 | |||||
FINLAND – 3.71% | |||||
Elisa OYJ Class A | 35,401 | 456,355 | |||
Fortum OYJ | 119,652 | 2,072,789 | |||
Kesko OYJ Class B | 17,637 | 379,454 | |||
Kone OYJ Class B | 44,840 | 933,395 | |||
Metso OYJ | 32,305 | 317,154 | |||
Neste Oil OYJ | 34,928 | 438,723 | |||
Nokia OYJ | 989,548 | 9,450,951 | |||
Nokian Renkaat OYJ | 29,736 | 354,247 | |||
Orion OYJ Class B | 21,952 | 342,089 | |||
Outokumpu OYJ | 33,060 | 338,002 |
Security | Shares | Value | |||
Pohjola Bank PLC Class A | 32,097 | $ | 228,690 | ||
Rautaruukki OYJ | 22,424 | 375,931 | |||
Sampo OYJ Class A | 118,001 | 1,564,613 | |||
Sanoma OYJ | 22,766 | 253,864 | |||
Stora Enso OYJ Class R | 160,721 | 675,650 | |||
UPM-Kymmene OYJ | 148,924 | 1,061,081 | |||
Wartsila OYJ Class B | 23,364 | 540,057 | |||
19,783,045 | |||||
FRANCE – 32.93% | |||||
Accor SAa | 55,696 | 2,011,045 | |||
Aeroports de Paris | 7,789 | 377,791 | |||
Air France-KLM | 34,220 | 316,397 | |||
Alcatel-Lucentb | 595,192 | 808,838 | |||
ALSTOM | 58,064 | 2,786,055 | |||
ArcelorMittal | 233,168 | 4,575,286 | |||
Atos Origin SA | 18,644 | 456,172 | |||
AXA | 412,764 | 3,846,282 | |||
BioMerieux SA | 3,068 | 234,239 | |||
BNP Paribas | 219,952 | 7,260,307 | |||
Bouygues SA | 63,012 | 1,824,647 | |||
Bureau Veritas SA | 10,623 | 388,967 | |||
Cap Gemini SA | 36,580 | 1,067,150 | |||
Carrefour SA | 168,740 | 5,738,103 | |||
Casino Guichard-Perrachon SA | 11,564 | 724,943 | |||
Christian Dior SA | 12,980 | 655,866 | |||
CNP Assurances SA | 10,148 | 658,601 | |||
Compagnie de Saint-Gobaina | 75,520 | 1,757,148 | |||
Compagnie Generale de Geophysique-Veritasb | 38,468 | 426,027 | |||
Compagnie Generale des Etablissements Michelin Class B | 38,704 | 1,270,437 | |||
Credit Agricole SA | 239,540 | 2,369,934 | |||
Dassault Systemes SA | 16,048 | 563,352 | |||
EDP Renovaveis SAb | 55,932 | 413,432 | |||
Eiffage SA | 9,440 | 347,569 | |||
Electricite de France | 54,053 | 2,121,972 | |||
Eramet | 1,658 | 243,245 | |||
Essilor International SAa | 52,864 | 1,839,634 | |||
Eurazeo | 5,192 | 122,419 | |||
European Aeronautic Defence and Space Co.a | 88,264 | 1,307,082 | |||
Eutelsat Communications | 17,396 | 360,902 |
18 | 2009 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI EMU INDEX FUND
February 28, 2009
Security | Shares | Value | |||
France Telecom SA | 485,924 | $ | 10,991,402 | ||
GDF Suez | 291,460 | 9,361,568 | |||
Gecina SA | 4,956 | 220,334 | |||
Groupe Danone | 116,348 | 5,593,010 | |||
Hermes Internationala | 15,104 | 1,288,127 | |||
Icade | 5,429 | 402,674 | |||
Iliad SA | 4,017 | 320,648 | |||
Imerys SA | 7,788 | 261,819 | |||
Ipsen SA | 5,428 | 208,090 | |||
JCDecaux SAa | 16,292 | 210,848 | |||
Klepierre | 22,172 | 456,185 | |||
Lafarge SA | 32,804 | 1,428,615 | |||
Lagardere SCA | 30,689 | 1,007,739 | |||
L’Air Liquide SA | 66,788 | 4,933,370 | |||
Legrand SA | 23,128 | 350,282 | |||
L’Oreal SA | 65,372 | 4,260,879 | |||
LVMH Moet Hennessy Louis | 64,900 | 3,740,503 | |||
M6-Metropole Television | 17,580 | 231,648 | |||
Natixis | 269,322 | 376,258 | |||
Neopost SA | 7,830 | 574,195 | |||
PagesJaunes SA | 30,248 | 258,773 | |||
Pernod Ricard SAa | 43,074 | 2,380,811 | |||
PPR SA | 20,296 | 1,224,404 | |||
PSA Peugeot Citroen SA | 37,760 | 654,854 | |||
Publicis Groupe SA | 35,581 | 835,331 | |||
Renault SA | 46,964 | 687,427 | |||
Safran SA | 52,625 | 540,706 | |||
Sanofi-Aventis | 280,604 | 14,581,333 | |||
Schneider Electric SA | 59,472 | 3,610,449 | |||
SCOR SE | 47,359 | 949,140 | |||
SES SA | 77,408 | 1,437,322 | |||
Societe BIC | 5,906 | 290,735 | |||
Societe des Autoroutes | 5,656 | 308,886 | |||
Societe Generale | 124,372 | 3,941,858 | |||
Societe Television Francaise 1a | 31,628 | 258,649 | |||
Sodexo | 28,084 | 1,302,955 | |||
STMicroelectronics NV | 183,372 | 814,422 | |||
Suez Environnement SAb | 71,272 | 1,050,926 | |||
Technip SA | 27,376 | 901,210 | |||
Thales SA | 25,748 | 1,048,238 |
Security | Shares | Value | |||
Total SA | 568,760 | $ | 27,073,814 | ||
Unibail-Rodamco | 22,657 | 2,884,315 | |||
Valeo SA | 21,724 | 273,147 | |||
Vallourec SA | 14,396 | 1,142,362 | |||
Veolia Environnement | 99,120 | 2,159,598 | |||
Vinci SA | 110,212 | 3,603,650 | |||
Vivendi | 312,464 | 7,526,164 | |||
Wendel | 7,552 | 191,445 | |||
Zodiac SA | 11,800 | 360,727 | |||
175,385,687 | |||||
GERMANY – 23.52% | |||||
Adidas AG | 55,224 | 1,613,858 | |||
Allianz SE Registered | 120,596 | 8,214,129 | |||
BASF SE | 248,036 | 6,917,798 | |||
Bayer AG | 203,904 | 9,861,512 | |||
Bayerische Motoren Werke AG | 89,444 | 2,243,567 | |||
Beiersdorf AG | 23,836 | 998,703 | |||
Celesio AG | 22,420 | 466,982 | |||
Commerzbank AGa | 184,552 | 653,949 | |||
Daimler AG Registered | 231,280 | 5,290,206 | |||
Deutsche Bank AG Registered | 144,432 | 3,811,797 | |||
Deutsche Boerse AG | 52,392 | 2,420,742 | |||
Deutsche Lufthansa | 62,776 | 693,639 | |||
Deutsche Post AG Registered | 225,616 | 2,189,193 | |||
Deutsche Postbank AG | 24,308 | 271,368 | |||
Deutsche Telekom AG Registered | 748,828 | 9,096,784 | |||
E.ON AG | 507,164 | 13,146,563 | |||
Fraport AG | 9,443 | 296,229 | |||
Fresenius Medical Care | 49,560 | 2,045,040 | |||
Fresenius SE | 6,844 | 312,920 | |||
GEA Group AG | 41,706 | 452,882 | |||
Hamburger Hafen und | 7,232 | 165,146 | |||
Hannover Rueckversicherung | 17,817 | 649,664 | |||
HeidelbergCement AGa | 7,142 | 190,485 | |||
Henkel AG & Co. KGaA | 34,531 | 746,431 | |||
Hochtief AG | 11,564 | 323,111 | |||
K+S AG | 39,648 | 1,789,111 | |||
Linde AG | 35,442 | 2,294,768 | |||
MAN AG | 28,084 | 1,144,232 | |||
Merck KGaA | 17,717 | 1,337,938 | |||
METRO AG | 29,264 | 855,578 |
SCHEDULESOF INVESTMENTS | 19 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI EMU INDEX FUND
February 28, 2009
Security | Shares | Value | |||
Muenchener Rueckversicherungs- Gesellschaft AG Registered | 55,932 | $ | 6,887,693 | ||
Puma AG | 1,652 | 250,768 | |||
Q-Cells SEa,b | 16,284 | 272,789 | |||
QIAGEN NVb | 49,324 | 816,251 | |||
RWE AG | 118,708 | 7,533,732 | |||
Salzgitter AG | 10,620 | 666,708 | |||
SAP AGa | 231,280 | 7,494,704 | |||
Siemens AG Registered | 232,696 | 11,918,949 | |||
SolarWorld AG | 23,130 | 404,511 | |||
Suedzucker AG | 14,632 | 253,849 | |||
ThyssenKrupp AG | 95,816 | 1,728,014 | |||
TUI AG | 65,137 | 368,550 | |||
United Internet AG Registered | 32,806 | 232,492 | |||
Volkswagen AG | 23,836 | 5,691,307 | |||
Wacker Chemie AG | 4,012 | 253,498 | |||
125,268,140 | |||||
GREECE – 1.11% | |||||
Coca-Cola Hellenic Bottling Co. | 104,020 | 1,225,356 | |||
Hellenic Telecommunications | 382,520 | 2,409,876 | |||
National Bank of Greece SA ADR | 990,299 | 2,257,882 | |||
5,893,114 | |||||
IRELAND – 0.91% | |||||
Anglo Irish Bank Corp. Ltd.c | 446,666 | – | |||
CRH PLC | 145,376 | 3,028,011 | |||
Elan Corp. PLCb | 125,080 | 822,884 | |||
Kerry Group PLC Class A | 39,884 | 850,999 | |||
Ryanair Holdings PLCb | 43,520 | 163,883 | |||
4,865,777 | |||||
ITALY – 10.27% | |||||
A2A SpA | 321,451 | 465,415 | |||
ACEA SpA | 20,296 | 254,676 | |||
Alleanza Assicurazioni SpA | 105,551 | 526,836 | |||
Assicurazioni Generali SpA | 278,480 | 4,215,908 | |||
Atlantia SpA | 67,906 | 890,901 | |||
Autogrill SpA | 49,091 | 237,390 | |||
Banca Carige SpA | 219,876 | 593,414 | |||
Banca Monte dei Paschi di | 657,420 | 819,092 | |||
Banca Popolare di Milano Scrl | 114,460 | 463,730 |
Security | Shares | Value | |||
Banco Popolare SpA | 182,514 | $ | 702,939 | ||
Bulgari SpA | 39,169 | 159,811 | |||
Enel SpA | 1,148,612 | 5,754,945 | |||
Eni SpA | 697,144 | 14,042,567 | |||
Fiat SpA | 184,316 | 833,948 | |||
Finmeccanica SpA | 111,628 | 1,433,326 | |||
Fondiaria-Sai SpA | 12,272 | 143,703 | |||
IFIL Investments SpA | 87,792 | 167,362 | |||
Intesa Sanpaolo SpA | 2,083,408 | 5,122,719 | |||
Italcementi SpA | 22,195 | 199,717 | |||
Lottomatica SpA | 25,807 | 416,257 | |||
Luxottica Group SpA | 32,386 | 427,360 | |||
Mediaset SpA | 188,098 | 841,504 | |||
Mediobanca SpA | 137,824 | 1,123,778 | |||
Mediolanum SpA | 50,593 | 169,635 | |||
Parmalat SpA | 448,647 | 834,763 | |||
Pirelli & C. SpA | 696,915 | 150,912 | |||
Prysmian SpA | 23,746 | 196,785 | |||
Saipem SpA | 70,564 | 1,102,324 | |||
Saras SpA | 78,042 | 227,970 | |||
Snam Rete Gas SpA | 226,015 | 1,125,955 | |||
Telecom Italia SpA | 2,582,312 | 3,169,797 | |||
Tenaris SA | 124,882 | 1,085,661 | |||
Terna SpA | 353,294 | 1,103,805 | |||
UniCredito SpA | 3,033,072 | 3,890,675 | |||
Unione di Banche Italiane ScpA | 170,628 | 1,625,296 | |||
Unipol Gruppo Finanziario SpA | 175,591 | 158,337 | |||
54,679,213 | |||||
NETHERLANDS – 7.48% | |||||
Aegon NV | 362,732 | 1,326,320 | |||
Akzo Nobel NV | 63,956 | 2,269,085 | |||
ASML Holding NV | 112,336 | 1,742,029 | |||
Corio NV | 13,225 | 525,644 | |||
Fugro NV CVA | 16,284 | 424,694 | |||
Heineken Holding NV | 24,544 | 572,476 | |||
Heineken NV | 62,304 | 1,683,078 | |||
ING Groep NV | 521,324 | 2,427,286 | |||
Koninklijke Ahold NV | 317,892 | 3,577,125 | |||
Koninklijke Boskalis Westminster NV | 13,452 | 259,944 | |||
Koninklijke DSM NV | 36,470 | 843,927 | |||
Koninklijke KPN NV | 463,740 | 6,004,580 |
20 | 2009 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI EMU INDEX FUND
February 28, 2009
Security | Shares | Value | |||
Koninklijke Philips Electronics NV | 259,836 | $ | 4,202,610 | ||
Randstad Holding NV | 26,911 | 396,298 | |||
Reed Elsevier NV | 169,212 | 1,904,942 | |||
SBM Offshore NV | 39,884 | 529,595 | |||
SNS REAAL NV | 25,252 | 95,572 | |||
TNT NV | 96,288 | 1,405,730 | |||
Unilever NV | 436,600 | 8,456,183 | |||
Wolters Kluwer NV | 74,340 | 1,188,691 | |||
39,835,809 | |||||
PORTUGAL – 1.05% | |||||
Banco Comercial Portugues | 613,600 | 498,754 | |||
Banco Espirito Santo | 71,344 | 420,886 | |||
BRISA - Auto-estradas de Portugal SA | 97,940 | 579,651 | |||
CIMPOR - Cimentos de | 96,796 | 379,872 | |||
Energias de Portugal SA | 476,484 | 1,518,948 | |||
Galp Energia SGPS SA Class B | 51,846 | 576,161 | |||
Jeronimo Martins SGPS SA | 62,695 | 257,191 | |||
Portugal Telecom SGPS | 142,072 | 1,163,829 | |||
Zon Multimedia - Servicos de Telecomunicacoes e Multimedia SGPS SA | 43,425 | 208,474 | |||
5,603,766 | |||||
SPAIN – 13.40% | |||||
Abertis Infraestructuras SA | 74,815 | 1,047,107 | |||
Acciona SA | 7,788 | 777,444 | |||
Acerinox SA | 39,181 | 453,828 | |||
Actividades de Construcciones y | 51,212 | 2,048,817 | |||
Banco Bilbao Vizcaya Argentaria SA | 966,420 | 7,106,656 | |||
Banco de Sabadell SAa | 256,296 | 1,067,669 | |||
Banco de Valencia SA | 58,292 | 511,573 | |||
Banco Popular Espanol SAa | 220,424 | 1,058,209 | |||
Banco Santander SA | 2,182,292 | 13,580,938 | |||
Bankinter SAa | 72,924 | 602,011 | |||
Cintra Concesiones de Infraestructuras de Transporte SAa | 67,370 | 321,718 | |||
Criteria CaixaCorp SA | 235,056 | 662,743 |
Security | Shares | Value | |||
Enagas SA | 49,163 | $ | 796,728 | ||
Fomento de Construcciones y | 12,339 | 320,162 | |||
Gamesa Corporacion | 52,628 | 706,501 | |||
Gas Natural SDG SA | 29,264 | 531,856 | |||
Gestevision Telecinco SA | 33,040 | 237,927 | |||
Grifols SA | 34,077 | 541,426 | |||
Grupo Ferrovial SAa | 16,520 | 408,085 | |||
Iberdrola Renovables SAb | 225,380 | 921,705 | |||
Iberdrola SA | 931,964 | 6,154,933 | |||
Iberia Lineas Aereas de Espana SA | 116,348 | 270,415 | |||
Indra Sistemas SAa | 29,444 | 540,363 | |||
Industria de Diseno Textil SA | 57,112 | 2,170,975 | |||
Mapfre SAa | 191,748 | 394,518 | |||
Red Electrica | 30,208 | 1,226,167 | |||
Repsol YPF SA | 199,184 | 3,091,338 | |||
Sacyr Vallehermoso SAa | 21,854 | 153,489 | |||
Telefonica SA | 1,115,572 | 20,841,602 | |||
Union Fenosa SA | 99,120 | 2,249,607 | |||
Zardoya Otis SAa | 31,154 | 540,883 | |||
71,337,393 | |||||
TOTAL COMMON STOCKS | 523,582,563 | ||||
PREFERRED STOCKS – 1.40% | |||||
GERMANY – 0.99% | |||||
Bayerische Motoren Werke AG | 15,354 | 232,834 | |||
Fresenius SE | 20,768 | 1,055,056 | |||
Henkel AG & Co. KGaA | 48,002 | 1,137,606 | |||
Porsche Automobil | 23,600 | 978,025 | |||
RWE AG | 10,556 | 586,407 | |||
Volkswagen AG | 29,028 | 1,313,203 | |||
5,303,131 | |||||
ITALY – 0.41% | |||||
Intesa Sanpaolo SpA RNC | 240,486 | 404,388 | |||
Italcementi SpA RNC | 27,151 | 143,278 | |||
Telecom Italia SpA RNC | 1,506,613 | 1,450,413 | |||
Unipol Gruppo | 234,123 | 163,541 | |||
2,161,620 | |||||
TOTAL PREFERRED STOCKS | 7,464,751 |
SCHEDULESOF INVESTMENTS | 21 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI EMU INDEX FUND
February 28, 2009
Security | Shares | Value | ||||
RIGHTS – 0.00% | ||||||
BELGIUM – 0.00% | ||||||
Fortisa,b,c | 619,476 | $ | 78 | |||
78 | ||||||
TOTAL RIGHTS | 78 | |||||
WARRANTS – 0.02% | ||||||
FRANCE – 0.02% | ||||||
Compagnie de Saint-Gobain (Expires 3/6/09)a,b | 79,040 | 116,446 | ||||
116,446 | ||||||
TOTAL WARRANTS | 116,446 | |||||
SHORT-TERM INVESTMENTS – 3.05% |
| |||||
MONEY MARKET FUNDS – 3.05% |
| |||||
Barclays Global Investors Funds | 13,856,888 | 13,856,888 | ||||
Barclays Global Investors Funds | 2,316,466 | 2,316,466 | ||||
Barclays Global Investors Funds | 55,224 | 55,224 | ||||
16,228,578 | ||||||
TOTAL SHORT-TERM INVESTMENTS |
| |||||
(Cost: $16,228,578) | 16,228,578 | |||||
TOTAL INVESTMENTS IN | 547,392,416 | |||||
Other Assets, Less Liabilities – (2.78)% | (14,809,279 | ) | ||||
NET ASSETS – 100.00% | $ | 532,583,137 | ||||
ADR – American Depositary Receipts
SP ADR – Sponsored American Depositary Receipts
a | All or a portion of this security represents a security on loan. See Note 5. |
b | Non-income earning security. |
c | Security valued using Level 3 inputs. 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 | All or a portion of this security represents an investment of securities lending collateral. See Note 5. |
See notes to financial statements.
22 | 2009 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited)
iSHARES® MSCI FRANCE INDEX FUND
February 28, 2009
Security | Shares | Value | |||
COMMON STOCKS – 99.58% | |||||
ADVERTISING – 0.75% | |||||
JCDecaux SAa | 10,431 | $ | 134,996 | ||
PagesJaunes SA | 20,559 | 175,883 | |||
Publicis Groupe SA | 20,196 | 474,139 | |||
785,018 | |||||
AEROSPACE & DEFENSE – 1.77% | |||||
European Aeronautic | 51,810 | 767,243 | |||
Safran SA | 29,799 | 306,176 | |||
Thales SA | 14,124 | 575,009 | |||
Zodiac SA | 6,699 | 204,789 | |||
1,853,217 | |||||
AIRLINES – 0.19% | |||||
Air France-KLM | 21,714 | 200,767 | |||
200,767 | |||||
APPAREL – 0.70% | |||||
Hermes Internationala | 8,547 | 728,921 | |||
728,921 | |||||
AUTO MANUFACTURERS – 0.81% | |||||
PSA Peugeot Citroen SA | 24,123 | 418,354 | |||
Renault SA | 29,271 | 428,449 | |||
846,803 | |||||
AUTO PARTS & EQUIPMENT – 0.87% | |||||
Compagnie Generale des Etablissements Michelin Class B | 23,067 | 757,161 | |||
Valeo SA | 12,215 | 153,585 | |||
910,746 | |||||
BANKS – 7.89% | |||||
BNP Paribas | 130,218 | 4,298,314 | |||
Credit Agricole SA | 141,174 | 1,396,732 | |||
Natixis | 158,004 | 220,740 | |||
Societe Generale | 73,887 | 2,341,782 | |||
8,257,568 | |||||
BEVERAGES – 1.38% | |||||
Pernod Ricard SA | 26,136 | 1,444,604 | |||
1,444,604 |
Security | Shares | Value | |||
BUILDING MATERIALS – 1.99% | |||||
Compagnie de Saint-Gobaina | 45,639 | $ | 1,061,897 | ||
Imerys SA | 4,422 | 148,660 | |||
Lafarge SA | 20,064 | 873,787 | |||
2,084,344 | |||||
CHEMICALS – 2.78% | |||||
L’Air Liquide SA | 39,336 | 2,905,597 | |||
2,905,597 | |||||
COMMERCIAL SERVICES – 0.39% | |||||
Bureau Veritas SA | 5,874 | 215,080 | |||
Societe des Autoroutes | 3,630 | 198,242 | |||
413,322 | |||||
COMPUTERS – 0.87% | |||||
Atos Origin SA | 11,022 | 269,681 | |||
Cap Gemini SA | 22,011 | 642,128 | |||
911,809 | |||||
COSMETICS & PERSONAL CARE – 2.81% | |||||
Christian Dior SA | 8,745 | 441,876 | |||
L’Oreal SA | 38,346 | 2,499,353 | |||
2,941,229 | |||||
ELECTRIC – 1.20% | |||||
Electricite de France | 31,911 | 1,252,738 | |||
1,252,738 | |||||
ELECTRICAL COMPONENTS & | |||||
Legrand SA | 14,058 | 212,913 | |||
212,913 | |||||
ENGINEERING & CONSTRUCTION – 3.57% | |||||
Aeroports de Paris | 4,686 | 227,286 | |||
Bouygues SA | 38,016 | 1,100,835 | |||
Eiffage SA | 5,907 | 217,488 | |||
Vinci SA | 66,957 | 2,189,322 | |||
3,734,931 | |||||
FOOD – 6.87% | |||||
Carrefour SA | 100,650 | 3,422,662 | |||
Casino Guichard-Perrachon SA | 6,930 | 434,439 | |||
Groupe Danone | 69,300 | 3,331,347 | |||
7,188,448 |
SCHEDULESOF INVESTMENTS | 23 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI FRANCE INDEX FUND
February 28, 2009
Security | Shares | Value | |||
FOOD SERVICE – 0.67% | |||||
Sodexo | 15,015 | $ | 696,620 | ||
696,620 | |||||
GAS – 5.35% | |||||
GDF Suez | 174,174 | 5,594,393 | |||
5,594,393 | |||||
HAND & MACHINE TOOLS – 2.05% | |||||
Schneider Electric SA | 35,244 | 2,139,606 | |||
2,139,606 | |||||
HEALTH CARE - PRODUCTS – 1.07% | |||||
Essilor International SAa | 32,175 | 1,119,670 | |||
1,119,670 | |||||
HEALTH CARE - SERVICES – 0.15% | |||||
BioMerieux SA | 2,046 | 156,210 | |||
156,210 | |||||
HOLDING COMPANIES - DIVERSIFIED – 2.25% | |||||
LVMH Moet Hennessy Louis Vuitton SA | 38,940 | 2,244,302 | |||
Wendel | 4,356 | 110,425 | |||
2,354,727 | |||||
HOUSEHOLD PRODUCTS & WARES – 0.20% | |||||
Societe BIC | 4,224 | 207,935 | |||
207,935 | |||||
INSURANCE – 3.09% | |||||
AXA | 246,213 | 2,294,301 | |||
CNP Assurances SA | 5,940 | 385,503 | |||
SCOR SE | 27,654 | 554,225 | |||
3,234,029 | |||||
INTERNET – 0.19% | |||||
Iliad SA | 2,508 | 200,195 | |||
200,195 | |||||
INVESTMENT COMPANIES – 0.09% | |||||
Eurazeo | 3,993 | 94,149 | |||
94,149 | |||||
IRON & STEEL – 2.59% | |||||
ArcelorMittal | 138,138 | 2,710,581 | |||
2,710,581 | |||||
LODGING – 1.04% | |||||
Accor SAa | 30,261 | 1,092,650 | |||
1,092,650 |
Security | Shares | Value | |||
MACHINERY – 1.55% | |||||
ALSTOM | 33,859 | $ | 1,624,639 | ||
1,624,639 | |||||
MEDIA – 5.15% | |||||
Lagardere SCA | 18,876 | 619,834 | |||
M6-Metropole Television | 10,362 | 136,538 | |||
Societe Television Francaise 1 | 18,942 | 154,905 | |||
Vivendi | 185,724 | 4,473,441 | |||
5,384,718 | |||||
MEDICAL - DRUGS – 0.14% | |||||
Ipsen SA | 3,696 | 141,692 | |||
141,692 | |||||
METAL FABRICATE & HARDWARE – 0.64% | |||||
Vallourec SA | 8,448 | 670,372 | |||
670,372 | |||||
MINING – 0.12% | |||||
Eramet | 825 | 121,036 | |||
121,036 | |||||
OFFICE & BUSINESS EQUIPMENT – 0.34% | |||||
Neopost SA | 4,917 | 360,577 | |||
360,577 | |||||
OIL & GAS – 15.67% | |||||
Compagnie Generale de | 23,100 | 255,829 | |||
Total SA | 338,910 | 16,132,616 | |||
16,388,445 | |||||
OIL & GAS SERVICES – 0.52% | |||||
Technip SA | 16,434 | 541,002 | |||
541,002 | |||||
PHARMACEUTICALS – 8.30% | |||||
Sanofi-Aventis | 167,079 | 8,682,109 | |||
8,682,109 | |||||
REAL ESTATE – 1.95% | |||||
Gecina SA | 2,409 | 107,099 | |||
Klepierre | 13,398 | 275,661 | |||
Unibail-Rodamco | 13,002 | 1,655,200 | |||
2,037,960 | |||||
REAL ESTATE INVESTMENT TRUSTS – 0.22% | |||||
Icade | 3,135 | 232,526 | |||
232,526 |
24 | 2009 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI FRANCE INDEX FUND
February 28, 2009
Security | Shares | Value | |||
RETAIL – 0.70% | |||||
PPR SA | 12,078 | $ | 728,634 | ||
728,634 | |||||
SEMICONDUCTORS – 0.46% | |||||
STMicroelectronics NV | 107,844 | 478,975 | |||
478,975 | |||||
SOFTWARE – 0.34% | |||||
Dassault Systemes SA | 10,197 | 357,957 | |||
357,957 | |||||
TELECOMMUNICATIONS – 7.84% | |||||
Alcatel-Lucentb | 367,785 | 499,803 | |||
Eutelsat Communications | 14,124 | 293,020 | |||
France Telecom SA | 290,730 | 6,576,194 | |||
SES SA | 45,012 | 835,789 | |||
8,204,806 | |||||
WATER – 1.86% | |||||
Suez Environnement SAb | 42,933 | 633,059 | |||
Veolia Environnement | 60,093 | 1,309,289 | |||
1,942,348 | |||||
TOTAL COMMON STOCKS | 104,171,536 | ||||
WARRANTS – 0.06% | |||||
BUILDING MATERIALS – 0.06% | |||||
Compagnie de Saint-Gobain (Expires 3/6/09)a,b | 44,576 | 65,672 | |||
65,672 | |||||
TOTAL WARRANTS | 65,672 | ||||
SHORT-TERM INVESTMENTS – 3.30% | |||||
MONEY MARKET FUNDS – 3.30% | |||||
Barclays Global Investors Funds | 2,940,594 | 2,940,594 | |||
Barclays Global Investors Funds | 491,581 | 491,581 |
Security | Shares | Value | ||||
Barclays Global Investors Funds | 23,847 | $ | 23,847 | |||
3,456,022 | ||||||
TOTAL SHORT-TERM INVESTMENTS |
| |||||
(Cost: $3,456,022) | 3,456,022 | |||||
TOTAL INVESTMENTS IN | 107,693,230 | |||||
Other Assets, Less Liabilities – (2.94)% | (3,075,574 | ) | ||||
NET ASSETS – 100.00% | $ | 104,617,656 | ||||
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 | All or a portion of 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 28, 2009
Security | Shares | Value | |||
COMMON STOCKS – 95.57% | |||||
AIRLINES – 0.59% | |||||
Deutsche Lufthansa AG Registered | 150,834 | $ | 1,666,630 | ||
1,666,630 | |||||
APPAREL – 1.51% | |||||
Adidas AG | 121,647 | 3,554,994 | |||
Puma AG | 4,416 | 670,333 | |||
4,225,327 | |||||
AUTO MANUFACTURERS – 10.13% | |||||
Bayerische Motoren Werke AG | 189,405 | 4,750,938 | |||
Daimler AG Registered | 497,973 | 11,390,435 | |||
Volkswagen AG | 51,267 | 12,240,991 | |||
28,382,364 | |||||
BANKS – 3.69% | |||||
Commerzbank AGa | 404,271 | 1,432,510 | |||
Deutsche Bank AG Registereda | 316,179 | 8,344,482 | |||
Deutsche Postbank AG | 50,784 | 566,939 | |||
10,343,931 | |||||
BIOTECHNOLOGY – 0.64% | |||||
QIAGEN NVb | 107,985 | 1,787,017 | |||
1,787,017 | |||||
BUILDING MATERIALS – 0.16% | |||||
HeidelbergCement AGa | 16,422 | 437,992 | |||
437,992 | |||||
CHEMICALS – 14.27% | |||||
BASF SE | 501,768 | 13,994,459 | |||
Bayer AG | 443,670 | 21,457,436 | |||
K+S AG | 87,009 | 3,926,270 | |||
Wacker Chemie AG | 9,660 | 610,367 | |||
39,988,532 | |||||
COMMERCIAL SERVICES – 0.14% | |||||
Hamburger Hafen und Logistik AG | 17,388 | 397,064 | |||
397,064 | |||||
COSMETICS & PERSONAL CARE – 0.87% | |||||
Beiersdorf AG | 58,236 | 2,440,027 | |||
2,440,027 | |||||
DIVERSIFIED FINANCIAL SERVICES – 1.88% | |||||
Deutsche Boerse AG | 113,781 | 5,257,185 | |||
5,257,185 |
Security | Shares | Value | |||
ELECTRIC – 16.12% | |||||
E.ON AG | 1,107,243 | $ | 28,701,644 | ||
RWE AG | 259,509 | 16,469,582 | |||
45,171,226 | |||||
ENERGY - ALTERNATE SOURCES – 0.52% | |||||
Q-Cells SEa,b | 38,157 | 639,204 | |||
SolarWorld AG | 47,196 | 825,391 | |||
1,464,595 | |||||
ENGINEERING & CONSTRUCTION – 2.49% | |||||
Fraport AG | 26,289 | 824,692 | |||
Hochtief AG | 24,633 | 688,273 | |||
Linde AG | 84,318 | 5,459,350 | |||
6,972,315 | |||||
FOOD – 1.01% | |||||
METRO AG | 70,470 | 2,060,300 | |||
Suedzucker AG | 44,160 | 766,127 | |||
2,826,427 | |||||
HEALTH CARE - PRODUCTS – 2.00% | |||||
Fresenius Medical Care | 116,403 | 4,803,245 | |||
Fresenius SE | 17,595 | 804,475 | |||
5,607,720 | |||||
HOLDING COMPANIES - DIVERSIFIED – 0.33% | |||||
GEA Group AG | 86,250 | 936,582 | |||
936,582 | |||||
HOUSEHOLD PRODUCTS & WARES – 0.65% | |||||
Henkel AG & Co. KGaA | 84,939 | 1,836,063 | |||
1,836,063 | |||||
INSURANCE – 11.08% | |||||
Allianz SE Registered | 215,280 | 14,663,320 | |||
Hannover Rueckversicherung AG Registered | 54,027 | 1,969,994 | |||
Muenchener Rueckversicherungs- | 117,162 | 14,427,803 | |||
31,061,117 | |||||
INTERNET – 0.22% | |||||
United Internet AG Registered | 88,941 | 630,314 | |||
630,314 |
26 | 2009 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI GERMANY INDEX FUND
February 28, 2009
Security | Shares | Value | |||
IRON & STEEL – 1.85% | |||||
Salzgitter AG | 22,701 | $ | 1,425,136 | ||
ThyssenKrupp AG | 209,070 | 3,770,517 | |||
5,195,653 | |||||
LEISURE TIME – 0.28% | |||||
TUI AG | 136,413 | 771,835 | |||
771,835 | |||||
MACHINERY - DIVERSIFIED – 0.91% | |||||
MAN AG | 62,514 | 2,547,021 | |||
2,547,021 | |||||
MANUFACTURING – 9.23% | |||||
Siemens AG Registered | 504,942 | 25,863,693 | |||
25,863,693 | |||||
PHARMACEUTICALS – 1.37% | |||||
Celesio AG | 48,576 | 1,011,781 | |||
Merck KGaA | 37,536 | 2,834,613 | |||
3,846,394 | |||||
SOFTWARE – 4.68% | |||||
SAP AGa | 404,823 | 13,118,421 | |||
13,118,421 | |||||
TELECOMMUNICATIONS – 7.21% | |||||
Deutsche Telekom | 1,664,280 | 20,217,720 | |||
20,217,720 | |||||
TRANSPORTATION – 1.74% | |||||
Deutsche Post AG Registered | 502,113 | 4,872,094 | |||
4,872,094 | |||||
TOTAL COMMON STOCKS | 267,865,259 | ||||
PREFERRED STOCKS – 4.24% | |||||
AUTO MANUFACTURERS – 1.90% | |||||
Bayerische Motoren Werke AG | 32,706 | 495,967 | |||
Porsche Automobil Holding SE | 49,611 | 2,055,966 | |||
Volkswagen AG | 61,272 | 2,771,895 | |||
5,323,828 | |||||
ELECTRIC – 0.52% | |||||
RWE AG | 26,427 | 1,468,072 | |||
1,468,072 |
Security | Shares | Value | ||||
HEALTH CARE - SERVICES – 0.88% |
| |||||
Fresenius SE | 48,438 | $ | 2,460,747 | |||
2,460,747 | ||||||
HOUSEHOLD PRODUCTS & WARES – 0.94% |
| |||||
Henkel AG & Co. KGaA | 111,573 | 2,644,184 | ||||
2,644,184 | ||||||
TOTAL PREFERRED STOCKS | 11,896,831 | |||||
SHORT-TERM INVESTMENTS – 8.27% |
| |||||
MONEY MARKET FUNDS – 8.27% |
| |||||
Barclays Global Investors Funds | 19,764,828 | 19,764,828 | ||||
Barclays Global Investors Funds | 3,304,100 | 3,304,100 | ||||
Barclays Global Investors Funds | 108,287 | 108,287 | ||||
23,177,215 | ||||||
TOTAL SHORT-TERM INVESTMENTS |
| |||||
(Cost: $23,177,215) | 23,177,215 | |||||
TOTAL INVESTMENTS IN | 302,939,305 | |||||
Other Assets, Less Liabilities – (8.08)% | (22,649,663 | ) | ||||
NET ASSETS – 100.00% | $ | 280,289,642 | ||||
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 | All or a portion of this security represents an investment of securities lending collateral. See Note 5. |
See notes to financial statements.
SCHEDULESOF INVESTMENTS | 27 |
Table of Contents
Schedule of Investments (Unaudited)
iSHARES® MSCI ITALY INDEX FUND
February 28, 2009
Security | Shares | Value | |||
COMMON STOCKS – 97.17% | |||||
AEROSPACE & DEFENSE – 2.82% | |||||
Finmeccanica SpA | 164,766 | $ | 2,115,629 | ||
2,115,629 | |||||
AUTO MANUFACTURERS – 1.80% | |||||
Fiat SpA | 298,518 | 1,350,661 | |||
1,350,661 | |||||
AUTO PARTS & EQUIPMENT – 0.29% | |||||
Pirelli & C. SpA | 984,859 | 213,265 | |||
213,265 | |||||
BANKS – 22.60% | |||||
Banca Carige SpA | 425,334 | 1,147,915 | |||
Banca Monte dei Paschi di Siena SpA | 1,050,676 | 1,309,057 | |||
Banca Popolare di Milano Scrl | 191,898 | 777,467 | |||
Banco Popolare SpA | 289,002 | 1,113,070 | |||
Intesa Sanpaolo SpA | 2,626,176 | 6,457,286 | |||
UniCredito SpA | 2,836,050 | 3,637,945 | |||
Unione di Banche Italiane ScpA | 261,324 | 2,489,209 | |||
16,931,949 | |||||
BUILDING MATERIALS – 0.22% | |||||
Italcementi SpAa | 18,144 | 163,265 | |||
163,265 | |||||
COMMERCIAL SERVICES – 2.05% | |||||
Atlantia SpA | 116,886 | 1,533,500 | |||
1,533,500 | |||||
DIVERSIFIED FINANCIAL SERVICES – 2.66% | |||||
Mediobanca SpA | 244,314 | 1,992,068 | |||
1,992,068 | |||||
ELECTRIC – 14.50% | |||||
A2A SpA | 914,250 | 1,323,703 | |||
Enel SpA | 1,166,634 | 5,845,241 | |||
Terna SpA | 1,183,056 | 3,696,249 | |||
10,865,193 | |||||
ELECTRICAL COMPONENTS & | |||||
Prysmian SpA | 62,580 | 518,605 | |||
518,605 | |||||
ENTERTAINMENT – 0.38% | |||||
Lottomatica SpA | 17,739 | 286,124 | |||
286,124 |
Security | Shares | Value | |||
FOOD – 1.59% | |||||
Parmalat SpA | 640,166 | $ | 1,191,108 | ||
1,191,108 | |||||
HEALTH CARE - PRODUCTS – 1.66% | |||||
Luxottica Group SpA | 94,417 | 1,245,910 | |||
1,245,910 | |||||
HOLDING COMPANIES - DIVERSIFIED – 0.29% | |||||
IFIL Investments SpA | 114,245 | 217,790 | |||
217,790 | |||||
INSURANCE – 9.80% | |||||
Assicurazioni Generali SpA | 380,142 | 5,754,968 | |||
Fondiaria-Sai SpA | 52,290 | 612,309 | |||
Mediolanum SpAa | 147,882 | 495,838 | |||
Unipol Gruppo Finanziario SpA | 533,274 | 480,872 | |||
7,343,987 | |||||
MEDIA – 2.34% | |||||
Mediaset SpA | 391,378 | 1,750,928 | |||
1,750,928 | |||||
METAL FABRICATE & HARDWARE – 1.91% | |||||
Tenaris SA | 164,640 | 1,431,297 | |||
1,431,297 | |||||
OIL & GAS – 24.86% | |||||
Eni SpA | 909,846 | 18,327,022 | |||
Saras SpA | 101,892 | 297,638 | |||
18,624,660 | |||||
OIL & GAS SERVICES – 1.93% | |||||
Saipem SpA | 92,484 | 1,444,749 | |||
1,444,749 | |||||
RETAIL – 0.40% | |||||
Autogrill SpA | 28,591 | 138,258 | |||
Bulgari SpA | 38,718 | 157,971 | |||
296,229 | |||||
TELECOMMUNICATIONS – 4.10% | |||||
Telecom Italia SpA | 2,501,982 | 3,071,191 | |||
3,071,191 | |||||
UTILITIES – 0.28% | |||||
ACEA SpA | 16,758 | 210,281 | |||
210,281 | |||||
TOTAL COMMON STOCKS | 72,798,389 |
28 | 2009 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI ITALY INDEX FUND
February 28, 2009
Security | Shares | Value | |||
PREFERRED STOCKS – 2.44% | |||||
BANKS – 0.60% | |||||
Intesa Sanpaolo SpA RNC | 265,692 | $ | 446,773 | ||
446,773 | |||||
BUILDING MATERIALS – 0.30% | |||||
Italcementi SpA RNC | 42,968 | 226,745 | |||
226,745 | |||||
INSURANCE – 0.72% | |||||
Unipol Gruppo Finanziario SpA | 771,498 | 538,913 | |||
538,913 | |||||
TELECOMMUNICATIONS – 0.82% | |||||
Telecom Italia SpA RNC | 641,004 | 617,093 | |||
617,093 | |||||
TOTAL PREFERRED STOCKS | 1,829,524 | ||||
SHORT-TERM INVESTMENTS – 0.38% | |||||
MONEY MARKET FUNDS – 0.38% | |||||
Barclays Global Investors Funds | 199,874 | 199,874 | |||
Barclays Global Investors Funds | 33,413 | 33,413 | |||
Barclays Global Investors Funds | 47,097 | 47,097 | |||
280,384 | |||||
TOTAL SHORT-TERM INVESTMENTS | 280,384 | ||||
TOTAL INVESTMENTS IN | 74,908,297 | ||||
Other Assets, Less Liabilities – 0.01% | 10,423 | ||||
NET ASSETS – 100.00% | $ | 74,918,720 | |||
a | All or a portion of this security represents a security on loan. See Note 5. |
b | Affiliated issuer. See Note 2. |
c | The rate quoted is the annualized seven-day yield of the fund at period end. |
d | All or a portion of this security represents an investment of securities lending collateral. See Note 5. |
See notes to financial statements.
SCHEDULESOF INVESTMENTS | 29 |
Table of Contents
Schedule of Investments (Unaudited)
iSHARES® MSCI NETHERLANDS INVESTABLE MARKET INDEX FUND
February 28, 2009
Security | Shares | Value | |||
COMMON STOCKS – 99.88% | |||||
BANKS – 0.66% | |||||
SNS REAAL NV | 137,921 | $ | 521,996 | ||
521,996 | |||||
BEVERAGES – 4.85% | |||||
Heineken Holding NV | 40,033 | 933,748 | |||
Heineken NV | 107,464 | 2,903,029 | |||
3,836,777 | |||||
BIOTECHNOLOGY – 0.79% | |||||
Crucell NVa | 33,649 | 626,509 | |||
626,509 | |||||
BUILDING MATERIALS – 0.08% | |||||
Wavin NV | 22,344 | 62,432 | |||
62,432 | |||||
CHEMICALS – 8.08% | |||||
Akzo Nobel NV | 125,286 | 4,445,003 | |||
Koninklijke DSM NV | 84,056 | 1,945,082 | |||
6,390,085 | |||||
COMMERCIAL SERVICES – 1.37% | |||||
Brunel International NV | 2,660 | 25,912 | |||
Randstad Holding NV | 55,461 | 816,731 | |||
USG People NV | 28,329 | 236,743 | |||
1,079,386 | |||||
DIVERSIFIED FINANCIAL SERVICES – 0.58% | |||||
BinckBank NV | 32,319 | 244,228 | |||
KAS Bank NV | 18,886 | 211,534 | |||
455,762 | |||||
ELECTRICAL COMPONENTS & | |||||
Draka Holding NV | 8,379 | 59,051 | |||
InnoConcepts NVb | 19,418 | 55,612 | |||
TKH Group NV | 26,201 | 256,429 | |||
371,092 | |||||
ELECTRONICS – 7.17% | |||||
Koninklijke Philips Electronics NV | 350,588 | 5,670,441 | |||
5,670,441 | |||||
ENGINEERING & CONSTRUCTION – 1.54% | |||||
Arcadis NVb | 17,157 | 189,967 | |||
Koninklijke BAM Groep NV | 54,796 | 407,193 | |||
Koninklijke Boskalis | 31,920 | 616,816 | |||
1,213,976 |
Security | Shares | Value | |||
FOOD – 27.21% | |||||
CSM NV | 48,279 | $ | 528,857 | ||
Koninklijke Ahold NV | 493,962 | 5,558,378 | |||
Koninklijke Wessanen NV | 63,707 | 266,197 | |||
Nutreco Holding NV | 19,817 | 701,700 | |||
Sligro Food Group NV | 15,960 | 340,435 | |||
Super de Boer NVa | 32,596 | 89,421 | |||
Unilever NV | 723,786 | 14,018,477 | |||
21,503,465 | |||||
HOLDING COMPANIES - DIVERSIFIED – 0.61% | |||||
Eriks Group NV | 3,724 | 107,292 | |||
Imtech NV | 25,140 | 323,920 | |||
Ordina NV | 18,086 | 51,913 | |||
483,125 | |||||
INSURANCE – 7.42% | |||||
Aegon NV | 675,640 | 2,470,460 | |||
ING Groep NV | 729,904 | 3,398,435 | |||
5,868,895 | |||||
INVESTMENT COMPANIES – 0.07% | |||||
Kardan NV | 26,600 | 54,087 | |||
54,087 | |||||
MANUFACTURING – 0.63% | |||||
Aalberts Industries NV | 46,152 | 235,048 | |||
Koninklijke Ten Cate NV | 17,024 | 260,969 | |||
496,017 | |||||
MEDIA – 8.54% | |||||
Reed Elsevier NV | 344,869 | 3,882,440 | |||
Telegraaf Media Groep NV | 14,497 | 230,149 | |||
Wolters Kluwer NV | 165,186 | 2,641,313 | |||
6,753,902 | |||||
METAL FABRICATE & HARDWARE – 0.05% | |||||
Advanced Metallurgical | 6,251 | 37,155 | |||
37,155 | |||||
OFFICE & BUSINESS EQUIPMENT – 0.09% | |||||
Oce NV | 26,733 | 68,584 | |||
68,584 | |||||
OIL & GAS SERVICES – 1.91% | |||||
Fugro NV CVA | 25,669 | 669,460 | |||
SBM Offshore NV | 63,175 | 838,861 | |||
1,508,321 |
30 | 2009 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI NETHERLANDS INVESTABLE MARKET INDEX FUND
February 28, 2009
Security | Shares | Value | |||
PHARMACEUTICALS – 0.46% | |||||
OPG Groep NV | 43,092 | $ | 366,137 | ||
366,137 | |||||
REAL ESTATE INVESTMENT TRUSTS – 4.31% | |||||
Corio NV | 33,383 | 1,326,848 | |||
Eurocommercial Properties NV | 18,221 | 491,064 | |||
VastNed Offices/Industrial NV | 9,576 | 83,638 | |||
VastNed Retail NV | 12,369 | 549,824 | |||
Wereldhave NV | 14,098 | 956,942 | |||
3,408,316 | |||||
RETAIL – 0.17% | |||||
Beter Bed Holding NV | 5,320 | 54,310 | |||
Macintosh Retail Group NV | 7,980 | 81,080 | |||
135,390 | |||||
SEMICONDUCTORS – 4.47% | |||||
ASM International NVa | 15,827 | 103,722 | |||
ASML Holding NV | 221,046 | 3,427,829 | |||
3,531,551 | |||||
SOFTWARE – 0.31% | |||||
Exact Holding NV | 3,990 | 72,161 | |||
TomTom NVa,b | 28,329 | 102,217 | |||
Unit 4 Agresso NV | 7,315 | 68,285 | |||
242,663 | |||||
TELECOMMUNICATIONS – 12.70% | |||||
Koninklijke KPN NV | 775,124 | 10,036,429 | |||
10,036,429 | |||||
TEXTILES – 0.04% | |||||
Gamma Holding NV | 7,448 | 32,635 | |||
32,635 | |||||
TRANSPORTATION – 5.30% | |||||
Royal Vopak NV | 22,211 | 743,732 | |||
Smit Internationale NV | 7,049 | 304,388 | |||
TNT NV | 215,272 | 3,142,804 | |||
4,190,924 | |||||
TOTAL COMMON STOCKS | 78,946,052 |
Security | Shares | Value | ||||
SHORT-TERM INVESTMENTS – 0.27% | ||||||
MONEY MARKET FUNDS – 0.27% |
| |||||
Barclays Global Investors Funds | 178,439 | $ | 178,439 | |||
Barclays Global Investors Funds | 29,830 | 29,830 | ||||
Barclays Global Investors Funds | 7,205 | 7,205 | ||||
215,474 | ||||||
TOTAL SHORT-TERM INVESTMENTS | 215,474 | |||||
TOTAL INVESTMENTS IN | 79,161,526 | |||||
Other Assets, Less Liabilities – (0.15)% | (119,924 | ) | ||||
NET ASSETS – 100.00% | $ | 79,041,602 | ||||
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 | All or a portion of this security represents an investment of securities lending collateral. See Note 5. |
See notes to financial statements.
SCHEDULESOF INVESTMENTS | 31 |
Table of Contents
Schedule of Investments (Unaudited)
iSHARES® MSCI SPAIN INDEX FUND
February 28, 2009
Security | Shares | Value | |||
COMMON STOCKS – 99.81% | |||||
AIRLINES – 0.38% | |||||
Iberia Lineas Aereas de | 252,932 | $ | 587,862 | ||
587,862 | |||||
BANKS – 31.38% | |||||
Banco Bilbao Vizcaya | 1,530,690 | 11,256,066 | |||
Banco de Sabadell SAa | 803,566 | 3,347,466 | |||
Banco de Valencia SA | 191,586 | 1,681,367 | |||
Banco Popular Espanol SAa | 852,184 | 4,091,156 | |||
Banco Santander SA | 4,263,806 | 26,534,709 | |||
Bankinter SAa | 230,880 | 1,905,989 | |||
48,816,753 | |||||
COMMERCIAL SERVICES – 3.05% | |||||
Abertis Infraestructuras SA | 258,778 | 3,621,844 | |||
Cintra Concesiones de | 235,690 | 1,125,511 | |||
4,747,355 | |||||
COMPUTERS – 1.56% | |||||
Indra Sistemas SAa | 132,386 | 2,429,577 | |||
2,429,577 | |||||
DIVERSIFIED FINANCIAL SERVICES – 1.74% | |||||
Criteria CaixaCorp SAa | 959,188 | 2,704,441 | |||
2,704,441 | |||||
ELECTRIC – 10.91% | |||||
Iberdrola SA | 1,117,622 | 7,381,066 | |||
Red Electrica Corporacion SA | 91,982 | 3,733,623 | |||
Union Fenosa SA | 257,890 | 5,853,018 | |||
16,967,707 | |||||
ENERGY - ALTERNATE SOURCES – 1.10% | |||||
Gamesa Corporacion Tecnologica SA | 127,502 | 1,711,642 | |||
1,711,642 | |||||
ENGINEERING & CONSTRUCTION – 7.41% | |||||
Acciona SA | 31,820 | 3,176,461 | |||
Actividades de Construcciones y | 150,886 | 6,036,432 | |||
Fomento de Construcciones y | 33,152 | 860,199 |
Security | Shares | Value | |||
Grupo Ferrovial SAa | 41,292 | $ | 1,020,015 | ||
Sacyr Vallehermoso SAa | 61,420 | 431,376 | |||
11,524,483 | |||||
GAS – 3.50% | |||||
Enagas SA | 154,882 | 2,509,993 | |||
Gas Natural SDG SAa | 161,098 | 2,927,862 | |||
5,437,855 | |||||
INSURANCE – 1.84% | |||||
Mapfre SAa | 1,389,128 | 2,858,105 | |||
2,858,105 | |||||
IRON & STEEL – 0.57% | |||||
Acerinox SAa | 76,886 | 890,559 | |||
890,559 | |||||
MACHINERY – 0.85% | |||||
Zardoya Otis SAa | 76,146 | 1,322,015 | |||
1,322,015 | |||||
MEDIA – 0.72% | |||||
Gestevision Telecinco SA | 155,474 | 1,119,597 | |||
1,119,597 | |||||
OIL & GAS – 4.46% | |||||
Repsol YPF SA | 447,330 | 6,942,567 | |||
6,942,567 | |||||
PHARMACEUTICALS – 0.95% | |||||
Grifols SA | 93,388 | 1,483,779 | |||
1,483,779 | |||||
RETAIL – 4.08% | |||||
Industria de Diseno Textil SAa | 167,166 | 6,354,414 | |||
6,354,414 | |||||
TELECOMMUNICATIONS – 25.31% | |||||
Telefonica SA | 2,107,594 | 39,374,989 | |||
39,374,989 | |||||
TOTAL COMMON STOCKS | 155,273,700 |
32 | 2009 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI SPAIN INDEX FUND
February 28, 2009
Security | Shares | Value | ||||
SHORT-TERM INVESTMENTS – 24.21% |
| |||||
MONEY MARKET FUNDS – 24.21% |
| |||||
Barclays Global Investors Funds | 32,121,738 | $ | 32,121,738 | |||
Barclays Global Investors Funds | 5,369,813 | 5,369,813 | ||||
Barclays Global Investors Funds | 168,583 | 168,583 | ||||
37,660,134 | ||||||
TOTAL SHORT-TERM INVESTMENTS |
| |||||
(Cost: $37,660,134) | 37,660,134 | |||||
TOTAL INVESTMENTS IN | 192,933,834 | |||||
Other Assets, Less Liabilities – (24.02)% | (37,366,435 | ) | ||||
NET ASSETS – 100.00% | $ | 155,567,399 | ||||
a | All or a portion of this security represents a security on loan. See Note 5. |
b | Affiliated issuer. See Note 2. |
c | The rate quoted is the annualized seven-day yield of the fund at period end. |
d | All or a portion of 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 SWEDEN INDEX FUND
February 28, 2009
Security | Shares | Value | |||
COMMON STOCKS – 99.91% | |||||
AGRICULTURE – 2.52% | |||||
Swedish Match AB | 155,380 | $ | 2,046,769 | ||
2,046,769 | |||||
AUTO MANUFACTURERS – 1.78% | |||||
Scania AB Class Ba | 202,980 | 1,444,071 | |||
1,444,071 | |||||
BANKS – 14.18% | |||||
Nordea Bank AB | 1,267,775 | 6,384,043 | |||
Skandinaviska Enskilda Banken AB Class Aa | 283,560 | 1,194,647 | |||
Svenska Handelsbanken AB Class A | 279,480 | 3,378,589 | |||
Swedbank AB Class Aa | 221,510 | 581,113 | |||
11,538,392 | |||||
COMMERCIAL SERVICES – 1.64% | |||||
Securitas AB Class B | 190,400 | 1,333,408 | |||
1,333,408 | |||||
ENGINEERING & CONSTRUCTION – 2.00% | |||||
Skanska AB Class Ba | 229,813 | 1,628,584 | |||
1,628,584 | |||||
FOREST PRODUCTS & PAPER – 3.42% | |||||
Holmen AB Class B | 32,385 | 541,796 | |||
Svenska Cellulosa AB Class B | 343,552 | 2,243,653 | |||
2,785,449 | |||||
HAND & MACHINE TOOLS – 4.14% | |||||
Sandvik AB | 624,750 | 3,368,243 | |||
3,368,243 | |||||
HEALTH CARE - PRODUCTS – 1.74% | |||||
Getinge AB Class B | 122,468 | 1,419,234 | |||
1,419,234 | |||||
HOME FURNISHINGS – 1.31% | |||||
Electrolux AB Class Ba | 155,025 | 1,068,437 | |||
1,068,437 | |||||
HOUSEHOLD PRODUCTS & WARES – 0.74% | |||||
Husqvarna AB Class Ba | 165,808 | 600,867 | |||
600,867 | |||||
INVESTMENT COMPANIES – 3.95% | |||||
Investor AB Class B | 282,030 | 3,213,472 | |||
3,213,472 |
Security | Shares | Value | |||
IRON & STEEL – 1.46% | |||||
SSAB Svenskt Stal AB Class A | 110,655 | $ | 827,216 | ||
SSAB Svenskt Stal AB Class B | 51,067 | 356,213 | |||
1,183,429 | |||||
MACHINERY – 9.82% | |||||
Atlas Copco AB Class A | 383,860 | 2,677,577 | |||
Atlas Copco AB Class B | 212,160 | 1,338,396 | |||
Volvo AB Class A | 262,565 | 1,138,300 | |||
Volvo AB Class B | 669,800 | 2,836,779 | |||
7,991,052 | |||||
MANUFACTURING – 1.93% | |||||
Alfa Laval AB | 223,107 | 1,568,661 | |||
1,568,661 | |||||
MEDIA – 0.54% | |||||
Modern Times Group MTG AB | 31,195 | 440,397 | |||
440,397 | |||||
METAL FABRICATE & HARDWARE – 4.53% | |||||
Assa Abloy AB Class B | 190,886 | 1,628,575 | |||
SKF AB Class B | 244,035 | 2,054,897 | |||
3,683,472 | |||||
OIL & GAS – 0.71% | |||||
Lundin Petroleum ABb | 134,640 | 576,223 | |||
576,223 | |||||
RETAIL – 14.43% | |||||
Hennes & Mauritz AB Class Ba | 312,970 | 11,741,724 | |||
11,741,724 | |||||
TELECOMMUNICATIONS – 29.07% | |||||
Millicom International Cellular SA SDR | 42,755 | �� | 1,696,721 | ||
Tele2 AB Class B | 185,895 | 1,389,682 | |||
Telefonaktiebolaget LM Ericsson AB Class B | 1,806,590 | 15,061,778 | |||
TeliaSonera AB | 1,366,970 | 5,500,763 | |||
23,648,944 | |||||
TOTAL COMMON STOCKS | 81,280,828 |
34 | 2009 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI SWEDEN INDEX FUND
February 28, 2009
Security | Shares | Value | ||||
SHORT-TERM INVESTMENTS – 9.05% |
| |||||
MONEY MARKET FUNDS – 9.05% |
| |||||
Barclays Global Investors Funds | 6,300,660 | $ | 6,300,660 | |||
Barclays Global Investors Funds | 1,053,286 | 1,053,286 | ||||
Barclays Global Investors Funds | 9,552 | 9,552 | ||||
7,363,498 | ||||||
TOTAL SHORT-TERM INVESTMENTS | 7,363,498 | |||||
TOTAL INVESTMENTS IN | 88,644,326 | |||||
Other Assets, Less Liabilities – (8.96)% | (7,292,616 | ) | ||||
NET ASSETS – 100.00% | $ | 81,351,710 | ||||
SDR – Swedish Depositary Receipts
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 | All or a portion of this security represents an investment of securities lending collateral. See Note 5. |
See notes to financial statements.
SCHEDULESOF INVESTMENTS | 35 |
Table of Contents
Schedule of Investments (Unaudited)
iSHARES® MSCI SWITZERLAND INDEX FUND
February 28, 2009
Security | Shares | Value | |||
COMMON STOCKS – 98.69% | |||||
BANKS – 6.58% | |||||
Baloise Holding Registered | 16,083 | $ | 920,113 | ||
Credit Suisse Group | 372,648 | 9,250,627 | |||
Julius Baer Holding | 91,952 | 2,150,019 | |||
12,320,759 | |||||
BUILDING MATERIALS – 2.27% | |||||
Geberit AG Registered | 14,595 | 1,319,188 | |||
Holcim Ltd. Registered | 87,442 | 2,927,243 | |||
4,246,431 | |||||
CHEMICALS – 8.70% | |||||
Givaudan SA Registered | 4,097 | 2,379,073 | |||
Lonza Group AG Registered | 48,195 | 4,654,024 | |||
Syngenta AG Registered | 43,050 | 9,256,674 | |||
16,289,771 | |||||
COMMERCIAL SERVICES – 1.99% | |||||
Adecco SA Registered | 48,459 | 1,489,958 | |||
SGS SA Registered | 2,468 | 2,245,562 | |||
3,735,520 | |||||
COMPUTERS – 0.25% | |||||
Logitech International | 53,865 | 462,361 | |||
462,361 | |||||
DIVERSIFIED FINANCIAL SERVICES – 4.42% | |||||
UBS AG Registereda | 872,446 | 8,282,620 | |||
8,282,620 | |||||
ELECTRIC – 0.22% | |||||
BKW FMB Energie AG | 5,775 | 417,882 | |||
417,882 | |||||
ENGINEERING & CONSTRUCTION – 5.19% | |||||
ABB Ltd. Registereda | 792,330 | 9,718,795 | |||
9,718,795 | |||||
FOOD – 22.47% | |||||
Aryzta AGa | 28,455 | 646,038 | |||
Lindt & Spruengli AG Registered | 126 | 2,356,146 | |||
Lindt & Spruengli AG | 735 | 1,167,167 | |||
Nestle SA Registered | 1,151,955 | 37,910,691 | |||
42,080,042 |
Security | Shares | Value | |||
HAND & MACHINE TOOLS – 0.59% | |||||
Schindler Holding AG Participation Certificates | 22,470 | $ | 1,103,248 | ||
1,103,248 | |||||
HEALTH CARE - PRODUCTS – 5.82% | |||||
Nobel Biocare Holding AG Registered | 84,217 | 1,351,087 | |||
Sonova Holding AG Registered | 30,384 | 1,503,552 | |||
Straumann Holding AG Registeredb | 7,050 | 1,161,888 | |||
Synthes Inc. | 59,010 | 6,878,591 | |||
10,895,118 | |||||
INSURANCE – 5.64% | |||||
Swiss Life Holding AG Registereda | 13,893 | 685,706 | |||
Swiss Reinsurance Co. Registeredb | 159,905 | 1,994,352 | |||
Zurich Financial Services | 55,125 | 7,892,575 | |||
10,572,633 | |||||
INVESTMENT COMPANIES – 0.53% | |||||
Pargesa Holding SA Bearer | 18,825 | 994,574 | |||
Reinet Investments SCAa | 1 | 9 | |||
994,583 | |||||
PHARMACEUTICALS – 28.03% | |||||
Actelion Ltd. Registereda | 41,370 | 1,967,294 | |||
Novartis AG Registered | 688,065 | 25,207,394 | |||
Roche Holding AG Genusschein | 221,865 | 25,328,794 | |||
52,503,482 | |||||
RETAIL – 2.64% | |||||
Compagnie Financiere Richemont SA Class A Bearer Units | 203,280 | 2,695,859 | |||
Swatch Group AG (The) Bearer | 15,216 | 1,710,984 | |||
Swatch Group AG (The) Registered | 24,570 | 544,125 | |||
4,950,968 | |||||
TELECOMMUNICATIONS – 2.91% | |||||
Swisscom AG Registered | 18,049 | 5,453,432 | |||
5,453,432 | |||||
TRANSPORTATION – 0.44% | |||||
Kuehne & Nagel International | 16,905 | 819,856 | |||
819,856 | |||||
TOTAL COMMON STOCKS | 184,847,501 |
36 | 2009 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI SWITZERLAND INDEX FUND
February 28, 2009
Security | Shares | Value | ||||
SHORT-TERM INVESTMENTS – 1.81% |
| |||||
MONEY MARKET FUNDS – 1.81% |
| |||||
Barclays Global Investors Funds | 2,889,910 | $ | 2,889,910 | |||
Barclays Global Investors Funds | 483,108 | 483,108 | ||||
Barclays Global Investors Funds | 10,643 | 10,643 | ||||
3,383,661 | ||||||
TOTAL SHORT-TERM INVESTMENTS | 3,383,661 | |||||
TOTAL INVESTMENTS IN | 188,231,162 | |||||
Other Assets, Less Liabilities – (0.50)% | (933,112 | ) | ||||
NET ASSETS – 100.00% | $ | 187,298,050 | ||||
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 | All or a portion of this security represents an investment of securities lending collateral. See Note 5. |
See notes to financial statements.
SCHEDULESOF INVESTMENTS | 37 |
Table of Contents
Schedule of Investments (Unaudited)
iSHARES® MSCI UNITED KINGDOM INDEX FUND
February 28, 2009
Security | Shares | Value | |||
COMMON STOCKS – 98.94% | |||||
AEROSPACE & DEFENSE – 2.30% | |||||
BAE Systems PLC | 1,023,057 | $ | 5,417,266 | ||
Cobham PLC | 331,695 | 913,414 | |||
Meggitt PLC | 190,512 | 340,112 | |||
Rolls-Royce Group PLCa | 530,145 | 2,183,806 | |||
8,854,598 | |||||
AGRICULTURE – 5.51% | |||||
British American Tobacco PLC | 550,557 | 14,101,713 | |||
Imperial Tobacco Group PLC | 295,029 | 7,064,729 | |||
21,166,442 | |||||
AIRLINES – 0.08% | |||||
British Airways PLC | 162,162 | 317,121 | |||
317,121 | |||||
APPAREL – 0.12% | |||||
Burberry Group PLC | 126,063 | 461,788 | |||
461,788 | |||||
BANKS – 9.65% | |||||
Barclays PLCb | 2,428,839 | 3,233,457 | |||
HSBC Holdings PLC | 3,511,998 | 24,591,122 | |||
Lloyds Banking Group PLC | 2,855,791 | 2,373,103 | |||
Royal Bank of Scotland | 5,119,254 | 1,692,841 | |||
Standard Chartered PLC | 548,289 | 5,189,185 | |||
37,079,708 | |||||
BEVERAGES – 3.20% | |||||
Diageo PLC | 726,516 | 8,481,069 | |||
SABMiller PLC | 262,143 | 3,803,711 | |||
12,284,780 | |||||
CHEMICALS – 0.23% | |||||
Johnson Matthey PLC | 62,181 | 869,457 | |||
869,457 | |||||
COMMERCIAL SERVICES – 1.67% | |||||
Bunzl PLC | 95,588 | 791,591 | |||
Capita Group PLC | 178,416 | 1,688,587 | |||
Experian PLC | 298,998 | 1,776,092 | |||
G4S PLC | 362,502 | 963,114 | |||
Hays PLC | 393,120 | 427,254 | |||
Serco Group PLC | 141,372 | 780,327 | |||
6,426,965 |
Security | Shares | Value | |||
COMPUTERS – 0.11% | |||||
Logica PLC | 434,511 | $ | 425,790 | ||
425,790 | |||||
DISTRIBUTION & WHOLESALE – 0.13% | |||||
Wolseley PLC | 189,945 | 483,538 | |||
483,538 | |||||
DIVERSIFIED FINANCIAL SERVICES – 0.93% | |||||
ICAP PLC | 147,042 | 492,528 | |||
Investec PLC | 120,393 | 350,497 | |||
London Stock Exchange | 44,415 | 274,910 | |||
Man Group PLC | 494,046 | 1,210,500 | |||
Old Mutual PLC | 1,449,252 | 857,262 | |||
Schroders PLC | 36,332 | 377,778 | |||
3,563,475 | |||||
ELECTRIC – 3.35% | |||||
Drax Group PLC | 97,902 | 724,237 | |||
International Power PLC | 438,480 | 1,485,908 | |||
National Grid PLC | 705,348 | 6,298,629 | |||
Scottish & Southern | 265,923 | 4,355,093 | |||
12,863,867 | |||||
ENGINEERING & CONSTRUCTION – 0.36% | |||||
AMEC PLC | 94,878 | 737,027 | |||
Balfour Beatty PLC | 140,994 | 639,071 | |||
1,376,098 | |||||
ENTERTAINMENT – 0.11% | |||||
Ladbrokes PLC | 171,045 | 422,991 | |||
422,991 | |||||
FOOD – 6.64% | |||||
Cadbury PLC | 394,254 | 3,017,671 | |||
J Sainsbury PLC | 306,558 | 1,377,493 | |||
Tate & Lyle PLC | 133,056 | 502,576 | |||
Tesco PLC | 2,279,340 | 10,825,193 | |||
Unilever PLC | 372,519 | 7,263,669 | |||
Wm Morrison Supermarkets PLC | 687,204 | 2,529,575 | |||
25,516,177 | |||||
FOOD SERVICE – 0.86% | |||||
Associated British Foods PLC | 102,249 | 948,771 | |||
Compass Group PLC | 535,059 | 2,360,390 | |||
3,309,161 |
38 | 2009 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI UNITED KINGDOM INDEX FUND
February 28, 2009
Security | Shares | Value | |||
GAS – 1.48% | |||||
Centrica PLC | 1,479,681 | $ | 5,705,016 | ||
5,705,016 | |||||
HEALTH CARE - PRODUCTS – 0.47% | |||||
Smith & Nephew PLC | 256,095 | 1,816,912 | |||
1,816,912 | |||||
HOLDING COMPANIES - DIVERSIFIED – 0.11% | |||||
Tomkins PLC | 259,755 | 418,373 | |||
418,373 | |||||
HOME BUILDERS – 0.08% | |||||
Berkeley Group Holdings PLC (The) Unitsa | 24,192 | 300,166 | |||
300,166 | |||||
HOUSEHOLD PRODUCTS & WARES – 1.75% | |||||
Reckitt Benckiser PLC | 175,014 | 6,720,350 | |||
6,720,350 | |||||
INSURANCE – 3.09% | |||||
Admiral Group PLC | 53,487 | 651,832 | |||
Aviva PLC | 771,498 | 3,178,002 | |||
Friends Provident PLC | 686,637 | 692,918 | |||
Legal & General Group PLC | 1,706,481 | 977,798 | |||
Prudential PLC | 723,303 | 2,891,843 | |||
RSA Insurance Group PLC | 965,412 | 1,894,821 | |||
Standard Life PLC | 635,040 | 1,577,684 | |||
11,864,898 | |||||
LEISURE TIME – 0.48% | |||||
Carnival PLC | 47,628 | 972,136 | |||
Thomas Cook Group PLC | 124,929 | 380,174 | |||
TUI Travel PLC | 161,550 | 509,462 | |||
1,861,772 | |||||
LODGING – 0.13% | |||||
InterContinental Hotels | 73,710 | 508,240 | |||
508,240 | |||||
MANUFACTURING – 0.57% | |||||
IMI PLC | 95,067 | 358,407 | |||
Invensys PLCa | 236,061 | 514,798 | |||
Smiths Group PLC | 111,888 | 1,326,870 | |||
2,200,075 |
Security | Shares | Value | |||
MEDIA – 2.76% | |||||
British Sky Broadcasting | 332,262 | $ | 2,227,055 | ||
Daily Mail & General Trust PLC | 79,569 | 282,967 | |||
ITV PLC | 948,402 | 334,572 | |||
Pearson PLC | 235,494 | 2,213,687 | |||
Reed Elsevier PLC | 319,599 | 2,389,310 | |||
Thomson Reuters PLC | 52,544 | 1,085,957 | |||
United Business Media Ltd. | 66,528 | 393,527 | |||
WPP PLC | 323,568 | 1,685,678 | |||
10,612,753 | |||||
MINING – 7.03% | |||||
Anglo American PLC | 381,402 | 5,441,750 | |||
Antofagasta PLC | 115,857 | 730,317 | |||
BHP Billiton PLC | 640,143 | 10,091,452 | |||
Eurasian Natural Resources PLC | 95,634 | 454,260 | |||
Kazakhmys PLC | 60,858 | 226,835 | |||
Lonmin PLC | 34,587 | 497,916 | |||
Rio Tinto PLC | 289,359 | 7,428,006 | |||
Vedanta Resources PLC | 42,903 | 330,525 | |||
Xstrata PLC | 183,519 | 1,819,281 | |||
27,020,342 | |||||
OIL & GAS – 23.77% | |||||
BG Group PLC | 973,539 | 13,945,720 | |||
BP PLC | 5,434,317 | 34,720,565 | |||
Cairn Energy PLCa | 38,367 | 1,072,400 | |||
Royal Dutch Shell PLC Class A | 1,028,916 | 22,658,436 | |||
Royal Dutch Shell PLC Class B | 782,271 | 16,546,748 | |||
Tullow Oil PLC | 231,525 | 2,412,330 | |||
91,356,199 | |||||
PACKAGING & CONTAINERS – 0.18% | |||||
Rexam PLC | 184,275 | 688,816 | |||
688,816 | |||||
PHARMACEUTICALS – 9.98% | |||||
AstraZeneca PLC | 419,769 | 13,420,267 | |||
GlaxoSmithKline PLC | 1,508,220 | 22,980,735 | |||
Shire PLC | 162,729 | 1,933,268 | |||
38,334,270 |
SCHEDULESOF INVESTMENTS | 39 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI UNITED KINGDOM INDEX FUND
February 28, 2009
Security | Shares | Value | |||
REAL ESTATE – 0.62% | |||||
British Land Co. PLC | 147,231 | $ | 960,615 | ||
Land Securities Group PLC | 133,623 | 1,045,623 | |||
Liberty International PLCc | 74,277 | 365,254 | |||
2,371,492 | |||||
REAL ESTATE INVESTMENT TRUSTS – 0.13% | |||||
Hammerson PLCc | 88,074 | 305,053 | |||
SEGRO PLC | 130,634 | 199,699 | |||
504,752 | |||||
RETAIL – 1.40% | |||||
Carphone Warehouse Group PLC (The) | 121,000 | 183,247 | |||
Home Retail Group PLC | 254,532 | 770,944 | |||
Kingfisher PLC | 678,699 | 1,223,740 | |||
Marks & Spencer Group PLC | 459,081 | 1,707,856 | |||
Next PLC | 57,834 | 963,650 | |||
Whitbread PLC | 49,896 | 530,905 | |||
5,380,342 | |||||
SOFTWARE – 0.52% | |||||
Autonomy Corp. PLCa | 61,992 | 1,074,461 | |||
Sage Group PLC (The) | 377,811 | 919,242 | |||
1,993,703 | |||||
TELECOMMUNICATIONS – 8.20% | |||||
BT Group PLC | 2,243,997 | 2,901,022 | |||
Cable & Wireless PLC | 733,320 | 1,438,247 | |||
Vodafone Group PLC | 15,225,462 | 27,170,419 | |||
31,509,688 | |||||
TRANSPORTATION – 0.21% | |||||
FirstGroup PLC | 141,939 | 544,221 | |||
Stagecoach Group PLC | 156,407 | 258,604 | |||
802,825 | |||||
VENTURE CAPITAL – 0.08% | |||||
3i Group PLC | 108,486 | 309,261 | |||
309,261 | |||||
WATER – 0.65% | |||||
Severn Trent PLC | 68,607 | 1,063,944 | |||
United Utilities Group PLC | 196,938 | 1,424,581 | |||
2,488,525 | |||||
TOTAL COMMON STOCKS | 380,190,726 |
Security | Shares | Value | |||
RIGHTS – 0.04% | |||||
REAL ESTATE INVESTMENT TRUSTS – 0.04% | |||||
Hammerson PLCa,c | 113,778 | $ | 148,389 | ||
148,389 | |||||
TOTAL RIGHTS | 148,389 | ||||
SHORT-TERM INVESTMENTS – 0.29% | |||||
MONEY MARKET FUNDS – 0.29% | |||||
Barclays Global Investors Funds | 953,068 | 953,068 | |||
Barclays Global Investors Funds | 159,325 | 159,325 | |||
Barclays Global Investors Funds | 18,631 | 18,631 | |||
1,131,024 | |||||
TOTAL SHORT-TERM INVESTMENTS | |||||
(Cost: $1,131,024) | 1,131,024 | ||||
TOTAL INVESTMENTS IN | 381,470,139 | ||||
Other Assets, Less Liabilities – 0.73% | 2,815,309 | ||||
NET ASSETS – 100.00% | $ | 384,285,448 | |||
NVS – Non-Voting Shares
a | Non-income earning security. |
b | Affiliated issuer. See Note 2. |
c | All or a portion of this security represents a security on loan. See Note 5. |
d | The rate quoted is the annualized seven-day yield of the fund at period end. |
e | All or a portion of this security represents an investment of securities lending collateral. See Note 5. |
See notes to financial statements.
40 | 2009 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Statements of Assets and Liabilities (Unaudited)
iSHARES®, INC.
February 28, 2009
iShares MSCI | ||||||||||||||||
Austria Investable Market Index Fund | Belgium Investable Market Index Fund | EMU Index Fund | France Index Fund | |||||||||||||
ASSETS | ||||||||||||||||
Investments, at cost: | ||||||||||||||||
Unaffiliated issuers | $ | 213,885,899 | $ | 147,453,599 | $ | 1,233,946,437 | $ | 252,980,039 | ||||||||
Affiliated issuers (Note 2) | 11,921,921 | 915,765 | 16,228,578 | 3,456,022 | ||||||||||||
Total cost of investments | $ | 225,807,820 | $ | 148,369,364 | $ | 1,250,175,015 | $ | 256,436,061 | ||||||||
Investments in securities, at fair value (including | ||||||||||||||||
Unaffiliated issuers | $ | 57,862,897 | $ | 61,048,121 | $ | 531,163,838 | $ | 104,237,208 | ||||||||
Affiliated issuers (Note 2) | 11,921,921 | 915,765 | 16,228,578 | 3,456,022 | ||||||||||||
Total fair value of investments | 69,784,818 | 61,963,886 | 547,392,416 | 107,693,230 | ||||||||||||
Foreign currencies, at valueb | 25,097 | 11,226 | 500,458 | 252,590 | ||||||||||||
Receivables: | ||||||||||||||||
Investment securities sold | 1,174,183 | 4,393,810 | 4,433,951 | 427,492 | ||||||||||||
Dividends and interest | 663,610 | 685,082 | 650,070 | 30,967 | ||||||||||||
Capital shares sold | – | – | – | 10,688 | ||||||||||||
Total Assets | 71,647,708 | 67,054,004 | 552,976,895 | 108,414,967 | ||||||||||||
LIABILITIES | ||||||||||||||||
Payables: | ||||||||||||||||
Investment securities purchased | 1,153,366 | 4,513,643 | 3,902,227 | 316,113 | ||||||||||||
Securities related to in-kind transactions (Note 4) | – | – | 33,290 | – | ||||||||||||
Collateral for securities on loan (Note 5) | 11,873,436 | 851,814 | 16,173,354 | 3,432,175 | ||||||||||||
Capital shares redeemed | – | 20,973 | 12,501 | – | ||||||||||||
Investment advisory fees (Note 2) | 28,175 | 26,218 | 272,386 | 49,023 | ||||||||||||
Total Liabilities | 13,054,977 | 5,412,648 | 20,393,758 | 3,797,311 | ||||||||||||
NET ASSETS | $ | 58,592,731 | $ | 61,641,356 | $ | 532,583,137 | $ | 104,617,656 | ||||||||
Net assets consist of: | ||||||||||||||||
Paid-in capital | $ | 287,110,063 | $ | 185,584,969 | $ | 1,379,746,076 | $ | 321,436,453 | ||||||||
Undistributed (distributions in excess of) net investment income | (675,267 | ) | (142,716 | ) | 320,102 | (59,254 | ) | |||||||||
Accumulated net realized loss | (71,672,766 | ) | (37,252,182 | ) | (144,615,292 | ) | (68,013,848 | ) | ||||||||
Net unrealized depreciation on investments and translation of assets and liabilities in foreign currencies | (156,169,299 | ) | (86,548,715 | ) | (702,867,749 | ) | (148,745,695 | ) | ||||||||
NET ASSETS | $ | 58,592,731 | $ | 61,641,356 | $ | 532,583,137 | $ | 104,617,656 | ||||||||
Shares outstandingc | 5,700,000 | 8,120,000 | 23,600,000 | 6,600,000 | ||||||||||||
Net asset value per share | $ | 10.28 | $ | 7.59 | $ | 22.57 | $ | 15.85 | ||||||||
a | Securities on loan with market values of $11,241,483, $766,335, $14,915,587 and $3,292,854, respectively. See Note 5. |
b | Cost of foreign currencies: $27,047, $11,217, $506,917 and $255,356, respectively. |
c | $0.001 par value, number of shares authorized: 100 million, 136.2 million, 1 billion and 340.2 million, respectively. |
See notes to financial statements.
FINANCIAL STATEMENTS | 41 |
Table of Contents
Statements of Assets and Liabilities (Unaudited) (Continued)
iSHARES®, INC.
February 28, 2009
iShares MSCI | ||||||||||||||||
Germany Index Fund | Italy Index Fund | Netherlands Investable Market Index Fund | Spain Index Fund | |||||||||||||
ASSETS | ||||||||||||||||
Investments, at cost: | ||||||||||||||||
Unaffiliated issuers | $ | 651,647,556 | $ | 185,972,822 | $ | 180,455,911 | $ | 364,312,169 | ||||||||
Affiliated issuers (Note 2) | 23,177,215 | 280,384 | 215,474 | 37,660,134 | ||||||||||||
Total cost of investments | $ | 674,824,771 | $ | 186,253,206 | $ | 180,671,385 | $ | 401,972,303 | ||||||||
Investments in securities, at fair value (including | ||||||||||||||||
Unaffiliated issuers | $ | 279,762,090 | $ | 74,627,913 | $ | 78,946,052 | $ | 155,273,700 | ||||||||
Affiliated issuers (Note 2) | 23,177,215 | 280,384 | 215,474 | 37,660,134 | ||||||||||||
Total fair value of investments | 302,939,305 | 74,908,297 | 79,161,526 | 192,933,834 | ||||||||||||
Foreign currencies, at valueb | 380,987 | 33,693 | 1,930 | 89,523 | ||||||||||||
Receivables: | ||||||||||||||||
Investment securities sold | 8,784,023 | 2,915,811 | 784,880 | 3,615,090 | ||||||||||||
Dividends and interest | 268,814 | 66,250 | 303 | 129,093 | ||||||||||||
Capital shares sold | 9,523 | 65,582 | – | – | ||||||||||||
Total Assets | 312,382,652 | 77,989,633 | 79,948,639 | 196,767,540 | ||||||||||||
LIABILITIES | ||||||||||||||||
Payables: | ||||||||||||||||
Investment securities purchased | 8,886,711 | 2,797,176 | 660,484 | 3,601,560 | ||||||||||||
Collateral for securities on loan (Note 5) | 23,068,928 | 233,287 | 208,269 | 37,491,551 | ||||||||||||
Capital shares redeemed | – | – | – | 26,594 | ||||||||||||
Investment advisory fees (Note 2) | 137,371 | 40,450 | 38,284 | 80,436 | ||||||||||||
Total Liabilities | 32,093,010 | 3,070,913 | 907,037 | 41,200,141 | ||||||||||||
NET ASSETS | $ | 280,289,642 | $ | 74,918,720 | $ | 79,041,602 | $ | 155,567,399 | ||||||||
Net assets consist of: | ||||||||||||||||
Paid-in capital | $ | 834,296,711 | $ | 250,137,899 | $ | 240,833,404 | $ | 418,582,462 | ||||||||
Undistributed (distributions in excess of) net investment income | 954,237 | 4,287 | (45,448 | ) | 2,282,341 | |||||||||||
Accumulated net realized loss | (183,057,496 | ) | (63,896,047 | ) | (60,236,262 | ) | (56,253,955 | ) | ||||||||
Net unrealized depreciation on investments and translation of assets and liabilities in foreign currencies | (371,903,810 | ) | (111,327,419 | ) | (101,510,092 | ) | (209,043,449 | ) | ||||||||
NET ASSETS | $ | 280,289,642 | $ | 74,918,720 | $ | 79,041,602 | $ | 155,567,399 | ||||||||
Shares outstandingc | 20,700,000 | 6,300,000 | 6,650,000 | 5,550,000 | ||||||||||||
Net asset value per share | $ | 13.54 | $ | 11.89 | $ | 11.89 | $ | 28.03 | ||||||||
a | Securities on loan with market values of $21,966,362, $221,399, $197,849 and $35,614,424, respectively. See Note 5. |
b | Cost of foreign currencies: $390,461, $33,693, $2,163 and $90,384, 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.
42 | 2009 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Statements of Assets and Liabilities (Unaudited) (Continued)
iSHARES®, INC.
February 28, 2009
iShares MSCI | ||||||||||||
Sweden Index Fund | Switzerland Index Fund | United Kingdom Index Fund | ||||||||||
ASSETS | ||||||||||||
Investments, at cost: | ||||||||||||
Unaffiliated issuers | $ | 219,014,545 | $ | 328,261,145 | $ | 803,904,834 | ||||||
Affiliated issuers (Note 2) | 7,363,498 | 3,383,661 | 26,165,947 | |||||||||
Total cost of investments | $ | 226,378,043 | $ | 331,644,806 | $ | 830,070,781 | ||||||
Investments in securities, at fair value (including securities on loana) (Note 1): | ||||||||||||
Unaffiliated issuers | $ | 81,280,828 | $ | 184,847,501 | $ | 377,105,658 | ||||||
Affiliated issuers (Note 2) | 7,363,498 | 3,383,661 | 4,364,481 | |||||||||
Total fair value of investments | 88,644,326 | 188,231,162 | 381,470,139 | |||||||||
Foreign currencies, at valueb | 98,733 | 5,747 | 856,306 | |||||||||
Receivables: | ||||||||||||
Investment securities sold | 313,152 | 117,368 | 1,571,901 | |||||||||
Dividends and interest | 9,073 | 2,412,949 | 3,305,629 | |||||||||
Total Assets | 89,065,284 | 190,767,226 | 387,203,975 | |||||||||
LIABILITIES | ||||||||||||
Payables: | ||||||||||||
Investment securities purchased | 317,615 | – | 1,619,564 | |||||||||
Collateral for securities on loan (Note 5) | 7,353,946 | 3,373,018 | 1,112,393 | |||||||||
Investment advisory fees (Note 2) | 42,013 | 96,158 | 186,570 | |||||||||
Total Liabilities | 7,713,574 | 3,469,176 | 2,918,527 | |||||||||
NET ASSETS | $ | 81,351,710 | $ | 187,298,050 | $ | 384,285,448 | ||||||
Net assets consist of: | ||||||||||||
Paid-in capital | $ | 284,034,373 | $ | 381,632,467 | $ | 944,173,585 | ||||||
Undistributed net investment income (accumulated net investment loss) | (310,847 | ) | 533,572 | 3,837,816 | ||||||||
Accumulated net realized loss | (64,635,705 | ) | (51,256,130 | ) | (115,096,853 | ) | ||||||
Net unrealized depreciation on investments and translation of assets and liabilities in foreign currencies | (137,736,111 | ) | (143,611,859 | ) | (448,629,100 | ) | ||||||
NET ASSETS | $ | 81,351,710 | $ | 187,298,050 | $ | 384,285,448 | ||||||
Shares outstandingc | 6,375,000 | 13,125,000 | 37,800,000 | |||||||||
Net asset value per share | $ | 12.76 | $ | 14.27 | $ | 10.17 | ||||||
a | Securities on loan with market values of $6,632,568, $3,209,018 and $749,634, respectively. See Note 5. |
b | Cost of foreign currencies: $101,127, $5,813 and $875,000, respectively. |
c | $0.001 par value, number of shares authorized: 63.6 million, 318.625 million and 934.2 million, respectively. |
See notes to financial statements.
FINANCIAL STATEMENTS | 43 |
Table of Contents
Statements of Operations (Unaudited)
iSHARES®, INC.
Six months ended February 28, 2009
iShares MSCI | ||||||||||||||||
Austria Investable Market Index Fund | Belgium Investable Market Index Fund | EMU Index Fund | France Index Fund | |||||||||||||
NET INVESTMENT INCOME | ||||||||||||||||
Dividends from unaffiliated issuersa | $ | 162,957 | $ | 249,518 | $ | 6,863,147 | $ | 1,695,027 | ||||||||
Interest from affiliated issuers (Note 2) | 520 | 130 | 587 | 105 | ||||||||||||
Securities lending income from affiliated issuers (Note 2) | 122,000 | 25,682 | 323,228 | 75,762 | ||||||||||||
Total investment income | 285,477 | 275,330 | 7,186,962 | 1,770,894 | ||||||||||||
EXPENSES | ||||||||||||||||
Investment advisory fees (Note 2) | 281,700 | 177,857 | 2,242,751 | 515,883 | ||||||||||||
Total expenses | 281,700 | 177,857 | 2,242,751 | 515,883 | ||||||||||||
Net investment income | 3,777 | 97,473 | 4,944,211 | 1,255,011 | ||||||||||||
NET REALIZED AND UNREALIZED GAIN (LOSS) | ||||||||||||||||
Net realized gain (loss) from: | ||||||||||||||||
Investments in unaffiliated issuers | (17,526,244 | ) | (20,047,395 | ) | (70,426,135 | ) | (6,111,319 | ) | ||||||||
In-kind redemptions | (28,424,362 | ) | (6,706,657 | ) | (35,295,187 | ) | (50,808,520 | ) | ||||||||
Foreign currency transactions | 50,932 | (516 | ) | (228,914 | ) | (26,916 | ) | |||||||||
Net realized loss | (45,899,674 | ) | (26,754,568 | ) | (105,950,236 | ) | (56,946,755 | ) | ||||||||
Net change in unrealized appreciation (depreciation) on: | ||||||||||||||||
Investments | (90,800,841 | ) | (35,821,653 | ) | (473,664,726 | ) | (82,049,590 | ) | ||||||||
Translation of assets and liabilities in foreign currencies | (207,258 | ) | (120,466 | ) | 18,415 | 1,676 | ||||||||||
Net change in unrealized appreciation (depreciation) | (91,008,099 | ) | (35,942,119 | ) | (473,646,311 | ) | (82,047,914 | ) | ||||||||
Net realized and unrealized loss | (136,907,773 | ) | (62,696,687 | ) | (579,596,547 | ) | (138,994,669 | ) | ||||||||
NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS | $ | (136,903,996 | ) | $ | (62,599,214 | ) | $ | (574,652,336 | ) | $ | (137,739,658 | ) | ||||
a | Net of foreign withholding tax of $4,752, $44,032, $956,795 and $100,132, respectively. |
See notes to financial statements.
44 | 2009 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Statements of Operations (Unaudited) (Continued)
iSHARES®, INC.
Six months ended February 28, 2009
iShares MSCI | ||||||||||||||||
Germany Index Fund | Italy Index Fund | Netherlands Investable Market Index Fund | Spain Index Fund | |||||||||||||
NET INVESTMENT INCOME | ||||||||||||||||
Dividends from unaffiliated issuersa | $ | 1,336,809 | $ | 1,670,198 | $ | 428,059 | $ | 5,739,917 | ||||||||
Interest from affiliated issuers (Note 2) | 330 | 95 | 142 | 490 | ||||||||||||
Securities lending income from affiliated issuers (Note 2) | 123,901 | 11,297 | 4,909 | 572,792 | ||||||||||||
Total investment income | 1,461,040 | 1,681,590 | 433,110 | 6,313,199 | ||||||||||||
EXPENSES | ||||||||||||||||
Investment advisory fees (Note 2) | 1,138,136 | 331,294 | 351,688 | 694,969 | ||||||||||||
Total expenses | 1,138,136 | 331,294 | 351,688 | 694,969 | ||||||||||||
Net investment income | 322,904 | 1,350,296 | 81,422 | 5,618,230 | ||||||||||||
NET REALIZED AND UNREALIZED GAIN (LOSS) | ||||||||||||||||
Net realized gain (loss) from: | ||||||||||||||||
Investments in unaffiliated issuers | (39,160,354 | ) | (20,440,787 | ) | (23,437,929 | ) | (17,066,822 | ) | ||||||||
In-kind redemptions | (82,322,490 | ) | (25,705,508 | ) | (18,391,053 | ) | (29,986,512 | ) | ||||||||
Foreign currency transactions | (509,520 | ) | (106,453 | ) | (52,642 | ) | 128,491 | |||||||||
Net realized loss | (121,992,364 | ) | (46,252,748 | ) | (41,881,624 | ) | (46,924,843 | ) | ||||||||
Net change in unrealized appreciation (depreciation) on: | ||||||||||||||||
Investments | (213,602,891 | ) | (49,292,247 | ) | (64,759,617 | ) | (107,877,005 | ) | ||||||||
Translation of assets and liabilities in foreign currencies | 180,257 | 11,625 | 8,017 | 34,682 | ||||||||||||
Net change in unrealized appreciation (depreciation) | (213,422,634 | ) | (49,280,622 | ) | (64,751,600 | ) | (107,842,323 | ) | ||||||||
Net realized and unrealized loss | (335,414,998 | ) | (95,533,370 | ) | (106,633,224 | ) | (154,767,166 | ) | ||||||||
NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS | $ | (335,092,094 | ) | $ | (94,183,074 | ) | $ | (106,551,802 | ) | $ | (149,148,936 | ) | ||||
a | Net of foreign withholding tax of $185,019, $291,759, $74,034 and $903,986, respectively. |
See notes to financial statements.
FINANCIAL STATEMENTS | 45 |
Table of Contents
Statements of Operations (Unaudited) (Continued)
iSHARES®, INC.
Six months ended February 28, 2009
iShares MSCI | ||||||||||||
Sweden Index Fund | Switzerland Index Fund | United Kingdom Index Fund | ||||||||||
NET INVESTMENT INCOME | ||||||||||||
Dividends from unaffiliated issuersa | $ | – | $ | 1,322,634 | $ | 10,566,567 | ||||||
Interest from affiliated issuers (Note 2) | 142 | 469 | 340 | |||||||||
Securities lending income from affiliated issuers (Note 2) | 33,480 | 16,322 | 18,879 | |||||||||
Total investment income | 33,622 | 1,339,425 | 10,585,786 | |||||||||
EXPENSES | ||||||||||||
Investment advisory fees (Note 2) | 370,960 | 825,917 | 1,531,028 | |||||||||
Total expenses | 370,960 | 825,917 | 1,531,028 | |||||||||
Net investment income (loss) | (337,338 | ) | 513,508 | 9,054,758 | ||||||||
NET REALIZED AND UNREALIZED GAIN (LOSS) | ||||||||||||
Net realized gain (loss) from: | ||||||||||||
Investments in unaffiliated issuers | (6,824,769 | ) | (25,159,142 | ) | (28,938,116 | ) | ||||||
Investments in affiliated issuers (Note 2) | – | – | (2,302,223 | ) | ||||||||
In-kind redemptions | (39,208,720 | ) | (16,707,147 | ) | (28,251,989 | ) | ||||||
Foreign currency transactions | (35,170 | ) | (91,821 | ) | (1,486,008 | ) | ||||||
Net realized loss | (46,068,659 | ) | (41,958,110 | ) | (60,978,336 | ) | ||||||
Net change in unrealized appreciation (depreciation) on: | ||||||||||||
Investments | (58,713,746 | ) | (109,233,346 | ) | (332,440,289 | ) | ||||||
Translation of assets and liabilities in foreign currencies | 4,228 | (84,564 | ) | 258,403 | ||||||||
Net change in unrealized appreciation (depreciation) | (58,709,518 | ) | (109,317,910 | ) | (332,181,886 | ) | ||||||
Net realized and unrealized loss | (104,778,177 | ) | (151,276,020 | ) | (393,160,222 | ) | ||||||
NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS | $ | (105,115,515 | ) | $ | (150,762,512 | ) | $ | (384,105,464 | ) | |||
a | Net of foreign withholding tax of $–, $233,949 and $67,795, respectively. |
See notes to financial statements.
46 | 2009 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Statements of Changes in Net Assets
iSHARES®, INC.
iShares MSCI Austria Investable Market Index Fund | iShares MSCI Belgium Investable Market Index Fund | |||||||||||||||
Six months ended February 28, 2009 (Unaudited) | Year ended August 31, 2008 | Six months ended February 28, 2009 (Unaudited) | Year ended August 31, 2008 | |||||||||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||||||||||
OPERATIONS: | ||||||||||||||||
Net investment income | $ | 3,777 | $ | 5,489,871 | $ | 97,473 | $ | 8,943,391 | ||||||||
Net realized gain (loss) | (45,899,674 | ) | 827,676 | (26,754,568 | ) | 10,301,055 | ||||||||||
Net change in unrealized appreciation (depreciation) | (91,008,099 | ) | (72,261,407 | ) | (35,942,119 | ) | (77,304,920 | ) | ||||||||
Net decrease in net assets resulting from operations | (136,903,996 | ) | (65,943,860 | ) | (62,599,214 | ) | (58,060,474 | ) | ||||||||
DISTRIBUTIONS TO SHAREHOLDERS: |
| |||||||||||||||
From net investment income | (2,480,497 | ) | (10,677,774 | ) | (863,335 | ) | (16,629,945 | ) | ||||||||
Total distributions to shareholders | (2,480,497 | ) | (10,677,774 | ) | (863,335 | ) | (16,629,945 | ) | ||||||||
CAPITAL SHARE TRANSACTIONS: |
| |||||||||||||||
Proceeds from shares sold | 63,725,119 | 202,420,621 | 39,566,353 | 83,185,830 | ||||||||||||
Cost of shares redeemed | (59,350,066 | ) | (405,710,636 | ) | (34,417,081 | ) | (192,024,177 | ) | ||||||||
Net increase (decrease) in net assets from capital share transactions | 4,375,053 | (203,290,015 | ) | 5,149,272 | (108,838,347 | ) | ||||||||||
DECREASE IN NET ASSETS | (135,009,440 | ) | (279,911,649 | ) | (58,313,277 | ) | (183,528,766 | ) | ||||||||
NET ASSETS | ||||||||||||||||
Beginning of period | 193,602,171 | 473,513,820 | 119,954,633 | 303,483,399 | ||||||||||||
End of period | $ | 58,592,731 | $ | 193,602,171 | $ | 61,641,356 | $ | 119,954,633 | ||||||||
Undistributed (distributions in excess of) net investment income included in net assets at end of period | $ | (675,267 | ) | $ | 1,801,453 | $ | (142,716 | ) | $ | 623,146 | ||||||
SHARES ISSUED AND REDEEMED | ||||||||||||||||
Shares sold | 2,700,000 | 5,700,000 | 4,040,000 | 3,320,000 | ||||||||||||
Shares redeemed | (3,500,000 | ) | (11,900,000 | ) | (2,720,000 | ) | (8,240,000 | ) | ||||||||
Net increase (decrease) in shares outstanding | (800,000 | ) | (6,200,000 | ) | 1,320,000 | (4,920,000 | ) | |||||||||
See notes to financial statements.
FINANCIAL STATEMENTS | 47 |
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 28, 2009 (Unaudited) | Year ended August 31, 2008 | Six months ended February 28, 2009 (Unaudited) | Year ended August 31, 2008 | |||||||||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||||||||||
OPERATIONS: | ||||||||||||||||
Net investment income | $ | 4,944,211 | $ | 77,988,337 | $ | 1,255,011 | $ | 12,303,626 | ||||||||
Net realized gain (loss) | (105,950,236 | ) | 420,891,072 | (56,946,755 | ) | 20,272,014 | ||||||||||
Net change in unrealized appreciation (depreciation) | (473,646,311 | ) | (780,256,430 | ) | (82,047,914 | ) | (74,337,717 | ) | ||||||||
Net decrease in net assets resulting from operations | (574,652,336 | ) | (281,377,021 | ) | (137,739,658 | ) | (41,762,077 | ) | ||||||||
DISTRIBUTIONS TO SHAREHOLDERS: |
| |||||||||||||||
From net investment income | (14,852,012 | ) | (132,228,318 | ) | (3,305,755 | ) | (15,471,999 | ) | ||||||||
Total distributions to shareholders | (14,852,012 | ) | (132,228,318 | ) | (3,305,755 | ) | (15,471,999 | ) | ||||||||
CAPITAL SHARE TRANSACTIONS: |
| |||||||||||||||
Proceeds from shares sold | 174,162,885 | 935,523,497 | 108,673,950 | 392,494,736 | ||||||||||||
Cost of shares redeemed | (343,883,429 | ) | (2,201,675,459 | ) | (90,213,408 | ) | (553,753,893 | ) | ||||||||
Net increase (decrease) in net assets from capital share transactions | (169,720,544 | ) | (1,266,151,962 | ) | 18,460,542 | (161,259,157 | ) | |||||||||
DECREASE IN NET ASSETS | (759,224,892 | ) | (1,679,757,301 | ) | (122,584,871 | ) | (218,493,233 | ) | ||||||||
NET ASSETS | ||||||||||||||||
Beginning of period | 1,291,808,029 | 2,971,565,330 | 227,202,527 | 445,695,760 | ||||||||||||
End of period | $ | 532,583,137 | $ | 1,291,808,029 | $ | 104,617,656 | $ | 227,202,527 | ||||||||
Undistributed (distributions in excess of) net investment income included in net assets at end of period | $ | 320,102 | $ | 10,227,903 | $ | (59,254 | ) | $ | 1,991,490 | |||||||
SHARES ISSUED AND REDEEMED | ||||||||||||||||
Shares sold | 5,900,000 | 17,500,000 | 4,200,000 | 10,800,000 | ||||||||||||
Shares redeemed | (10,400,000 | ) | (41,400,000 | ) | (5,000,000 | ) | (15,600,000 | ) | ||||||||
Net decrease in shares outstanding | (4,500,000 | ) | (23,900,000 | ) | (800,000 | ) | (4,800,000 | ) | ||||||||
See notes to financial statements.
48 | 2009 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 28, 2009 (Unaudited) | Year ended August 31, 2008 | Six months ended February 28, 2009 (Unaudited) | Year ended August 31, 2008 | |||||||||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||||||||||
OPERATIONS: | ||||||||||||||||
Net investment income | $ | 322,904 | $ | 46,008,248 | $ | 1,350,296 | $ | 11,898,862 | ||||||||
Net realized gain (loss) | (121,992,364 | ) | 227,568,876 | (46,252,748 | ) | (6,321,261 | ) | |||||||||
Net change in unrealized appreciation (depreciation) | (213,422,634 | ) | (371,327,133 | ) | (49,280,622 | ) | (51,884,781 | ) | ||||||||
Net decrease in net assets resulting from operations | (335,092,094 | ) | (97,750,009 | ) | (94,183,074 | ) | (46,307,180 | ) | ||||||||
DISTRIBUTIONS TO SHAREHOLDERS: |
| |||||||||||||||
From net investment income | (1,317,923 | ) | (72,915,709 | ) | (2,704,016 | ) | (18,054,401 | ) | ||||||||
Total distributions to shareholders | (1,317,923 | ) | (72,915,709 | ) | (2,704,016 | ) | (18,054,401 | ) | ||||||||
CAPITAL SHARE TRANSACTIONS: |
| |||||||||||||||
Proceeds from shares sold | 190,551,492 | 961,273,471 | 65,383,156 | 499,630,008 | ||||||||||||
Cost of shares redeemed | (243,303,812 | ) | (1,762,400,887 | ) | (137,731,797 | ) | (363,609,192 | ) | ||||||||
Net increase (decrease) in net assets from capital | (52,752,320 | ) | (801,127,416 | ) | (72,348,641 | ) | 136,020,816 | |||||||||
INCREASE (DECREASE) IN NET ASSETS | (389,162,337 | ) | (971,793,134 | ) | (169,235,731 | ) | 71,659,235 | |||||||||
NET ASSETS | ||||||||||||||||
Beginning of period | 669,451,979 | 1,641,245,113 | 244,154,451 | 172,495,216 | ||||||||||||
End of period | $ | 280,289,642 | $ | 669,451,979 | $ | 74,918,720 | $ | 244,154,451 | ||||||||
Undistributed net investment income included in net assets at end of period | $ | 954,237 | $ | 1,949,256 | $ | 4,287 | $ | 1,358,007 | ||||||||
SHARES ISSUED AND REDEEMED | ||||||||||||||||
Shares sold | 9,600,000 | 29,100,000 | 3,600,000 | 16,800,000 | ||||||||||||
Shares redeemed | (13,200,000 | ) | (55,800,000 | ) | (7,050,000 | ) | (12,150,000 | ) | ||||||||
Net increase (decrease) in shares outstanding | (3,600,000 | ) | (26,700,000 | ) | (3,450,000 | ) | 4,650,000 | |||||||||
See notes to financial statements.
FINANCIAL STATEMENTS | 49 |
Table of Contents
Statements of Changes in Net Assets (Continued)
iSHARES®, INC.
iShares MSCI Netherlands Investable Market Index Fund | iShares MSCI Spain Index Fund | |||||||||||||||
Six months ended February 28, 2009 (Unaudited) | Year ended August 31, 2008 | Six months ended February 28, 2009 (Unaudited) | Year ended August 31, 2008 | |||||||||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||||||||||
OPERATIONS: | ||||||||||||||||
Net investment income | $ | 81,422 | $ | 9,878,532 | $ | 5,618,230 | $ | 19,885,704 | ||||||||
Net realized gain (loss) | (41,881,624 | ) | 13,136,127 | (46,924,843 | ) | 24,027,821 | ||||||||||
Net change in unrealized appreciation (depreciation) | (64,751,600 | ) | (54,521,906 | ) | (107,842,323 | ) | (122,537,204 | ) | ||||||||
Net decrease in net assets resulting from operations | (106,551,802 | ) | (31,507,247 | ) | (149,148,936 | ) | (78,623,679 | ) | ||||||||
DISTRIBUTIONS TO SHAREHOLDERS: |
| |||||||||||||||
From net investment income | (2,392,379 | ) | (15,733,536 | ) | (9,825,412 | ) | (24,006,924 | ) | ||||||||
Total distributions to shareholders | (2,392,379 | ) | (15,733,536 | ) | (9,825,412 | ) | (24,006,924 | ) | ||||||||
CAPITAL SHARE TRANSACTIONS: |
| |||||||||||||||
Proceeds from shares sold | 28,053,105 | 108,417,983 | 112,005,926 | 1,073,349,945 | ||||||||||||
Cost of shares redeemed | (49,719,869 | ) | (102,878,515 | ) | (118,812,727 | ) | (1,171,926,810 | ) | ||||||||
Net increase (decrease) in net assets from capital share transactions | (21,666,764 | ) | 5,539,468 | (6,806,801 | ) | (98,576,865 | ) | |||||||||
DECREASE IN NET ASSETS | (130,610,945 | ) | (41,701,315 | ) | (165,781,149 | ) | (201,207,468 | ) | ||||||||
NET ASSETS | ||||||||||||||||
Beginning of period | 209,652,547 | 251,353,862 | 321,348,548 | 522,556,016 | ||||||||||||
End of period | $ | 79,041,602 | $ | 209,652,547 | $ | 155,567,399 | $ | 321,348,548 | ||||||||
Undistributed (distributions in excess of) net investment income included in net assets at end of period | $ | (45,448 | ) | $ | 2,265,509 | $ | 2,282,341 | $ | 6,489,523 | |||||||
SHARES ISSUED AND REDEEMED | ||||||||||||||||
Shares sold | 1,450,000 | 3,550,000 | 2,775,000 | 17,250,000 | ||||||||||||
Shares redeemed | (3,400,000 | ) | (3,400,000 | ) | (3,600,000 | ) | (19,875,000 | ) | ||||||||
Net increase (decrease) in shares outstanding | (1,950,000 | ) | 150,000 | (825,000 | ) | (2,625,000 | ) | |||||||||
See notes to financial statements.
50 | 2009 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 28, 2009 (Unaudited) | Year ended August 31, 2008 | Six months ended February 28, 2009 (Unaudited) | Year ended August 31, 2008 | |||||||||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||||||||||
OPERATIONS: | ||||||||||||||||
Net investment income (loss) | $ | (337,338 | ) | $ | 10,430,468 | $ | 513,508 | $ | 7,419,424 | |||||||
Net realized gain (loss) | (46,068,659 | ) | 5,147,723 | (41,958,110 | ) | 55,472,783 | ||||||||||
Net change in unrealized appreciation (depreciation) | (58,709,518 | ) | (109,865,275 | ) | (109,317,910 | ) | (89,962,657 | ) | ||||||||
Net decrease in net assets resulting from operations | (105,115,515 | ) | (94,287,084 | ) | (150,762,512 | ) | (27,070,450 | ) | ||||||||
DISTRIBUTIONS TO SHAREHOLDERS: | ||||||||||||||||
From net investment income | (148,655 | ) | (24,097,389 | ) | (1,024,002 | ) | (10,490,319 | ) | ||||||||
Total distributions to shareholders | (148,655 | ) | (24,097,389 | ) | (1,024,002 | ) | (10,490,319 | ) | ||||||||
CAPITAL SHARE TRANSACTIONS: | ||||||||||||||||
Proceeds from shares sold | 32,049,948 | 281,026,512 | 76,246,615 | 294,689,801 | ||||||||||||
Cost of shares redeemed | (73,087,864 | ) | (508,014,443 | ) | (103,686,964 | ) | (209,602,175 | ) | ||||||||
Net increase (decrease) in net assets from capital share transactions | (41,037,916 | ) | (226,987,931 | ) | (27,440,349 | ) | 85,087,626 | |||||||||
INCREASE (DECREASE) IN NET ASSETS | (146,302,086 | ) | (345,372,404 | ) | (179,226,863 | ) | 47,526,857 | |||||||||
NET ASSETS | ||||||||||||||||
Beginning of period | 227,653,796 | 573,026,200 | 366,524,913 | 318,998,056 | ||||||||||||
End of period | $ | 81,351,710 | $ | 227,653,796 | $ | 187,298,050 | $ | 366,524,913 | ||||||||
Undistributed net investment income (accumulated net investment loss) included in net assets at end of period | $ | (310,847 | ) | $ | 175,146 | $ | 533,572 | $ | 1,044,066 | |||||||
SHARES ISSUED AND REDEEMED | ||||||||||||||||
Shares sold | 1,950,000 | 9,300,000 | 3,500,000 | 11,750,000 | ||||||||||||
Shares redeemed | (4,875,000 | ) | (16,575,000 | ) | (6,250,000 | ) | (8,250,000 | ) | ||||||||
Net increase (decrease) in shares outstanding | (2,925,000 | ) | (7,275,000 | ) | (2,750,000 | ) | 3,500,000 | |||||||||
See notes to financial statements.
FINANCIAL STATEMENTS | 51 |
Table of Contents
Statements of Changes in Net Assets (Continued)
iSHARES®, INC.
iShares MSCI United Kingdom Index Fund | ||||||||
Six months ended February 28, 2009 (Unaudited) | Year ended August 31, 2008 | |||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||
OPERATIONS: | ||||||||
Net investment income | $ | 9,054,758 | $ | 39,928,967 | ||||
Net realized gain (loss) | (60,978,336 | ) | 89,735,490 | |||||
Net change in unrealized appreciation (depreciation) | (332,181,886 | ) | (319,757,708 | ) | ||||
Net decrease in net assets resulting from operations | (384,105,464 | ) | (190,093,251 | ) | ||||
DISTRIBUTIONS TO SHAREHOLDERS: | ||||||||
From net investment income | (13,893,948 | ) | (63,131,140 | ) | ||||
Total distributions to shareholders | (13,893,948 | ) | (63,131,140 | ) | ||||
CAPITAL SHARE TRANSACTIONS: | ||||||||
Proceeds from shares sold | 13,742,750 | 463,470,489 | ||||||
Cost of shares redeemed | (113,959,957 | ) | (455,482,369 | ) | ||||
Net increase (decrease) in net assets from capital share transactions | (100,217,207 | ) | 7,988,120 | |||||
DECREASE IN NET ASSETS | (498,216,619 | ) | (245,236,271 | ) | ||||
NET ASSETS | ||||||||
Beginning of period | 882,502,067 | 1,127,738,338 | ||||||
End of period | $ | 384,285,448 | $ | 882,502,067 | ||||
Undistributed net investment income included in net assets at end of period | $ | 3,837,816 | $ | 8,677,006 | ||||
SHARES ISSUED AND REDEEMED | ||||||||
Shares sold | 1,000,000 | 20,200,000 | ||||||
Shares redeemed | (8,800,000 | ) | (20,200,000 | ) | ||||
Net decrease in shares outstanding | (7,800,000 | ) | – | |||||
See notes to financial statements.
52 | 2009 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
iSHARES®, INC.
(For a share outstanding throughout each period)
iShares MSCI Austria Investable Market Index Fund | ||||||||||||||||||||||||
Six months Feb. 28, 2009 | Year ended Aug. 31, 2008 | Year ended Aug. 31, 2007 | Year ended Aug. 31, 2006 | Year ended Aug. 31, 2005 | Year ended Aug. 31, 2004 | |||||||||||||||||||
Net asset value, beginning of period | $ | 29.78 | $ | 37.28 | $ | 31.08 | $ | 26.62 | $ | 17.04 | $ | 10.61 | ||||||||||||
Income from investment operations: |
| |||||||||||||||||||||||
Net investment incomea | 0.00 | b | 0.56 | 0.51 | 0.44 | 0.29 | 0.21 | |||||||||||||||||
Net realized and unrealized gain (loss)c | (19.08 | ) | (6.98 | ) | 6.42 | 4.31 | 9.38 | 6.39 | ||||||||||||||||
Total from investment operations | (19.08 | ) | (6.42 | ) | 6.93 | 4.75 | 9.67 | 6.60 | ||||||||||||||||
Less distributions from: | ||||||||||||||||||||||||
Net investment income | (0.42 | ) | (1.08 | ) | (0.73 | ) | (0.29 | ) | (0.09 | ) | (0.17 | ) | ||||||||||||
Total distributions | (0.42 | ) | (1.08 | ) | (0.73 | ) | (0.29 | ) | (0.09 | ) | (0.17 | ) | ||||||||||||
Net asset value, end of period | $ | 10.28 | $ | 29.78 | $ | 37.28 | $ | 31.08 | $ | 26.62 | $ | 17.04 | ||||||||||||
Total return | (64.35 | )%d | (17.64 | )% | 22.35 | % | 18.00 | % | 56.82 | % | 62.70 | % | ||||||||||||
Ratios/Supplemental data: | ||||||||||||||||||||||||
Net assets, end of period (000s) | $ | 58,593 | $ | 193,602 | $ | 473,514 | $ | 391,637 | $ | 196,952 | $ | 57,920 | ||||||||||||
Ratio of expenses to average net assetse | 0.55 | % | 0.52 | % | 0.51 | % | 0.54 | % | 0.57 | % | 0.77 | % | ||||||||||||
Ratio of net investment income to average net assetse | 0.01 | % | 1.57 | % | 1.36 | % | 1.48 | % | 1.26 | % | 1.37 | % | ||||||||||||
Portfolio turnover ratef | 7 | % | 26 | % | 21 | % | 32 | % | 21 | % | 11 | % |
a | Based on average shares outstanding throughout each period. |
b | Rounds to less than $0.01. |
c | The amounts reported may not accord with the change in aggregate gains and losses in securities due to the timing of capital share transactions. |
d | Not annualized. |
e | Annualized for periods of less than one year. |
f | Portfolio turnover rates exclude portfolio securities received or delivered as a result of processing capital share transactions in Creation Units. |
See notes to financial statements.
FINANCIAL HIGHLIGHTS | 53 |
Table of Contents
Financial Highlights (Continued)
iSHARES®, INC.
(For a share outstanding throughout each period)
iShares MSCI Belgium Investable Market Index Fund | ||||||||||||||||||||||||
Six months ended Feb. 28, 2009 (Unaudited) | Year ended Aug. 31, 2008 | Year ended Aug. 31, 2007 | Year ended Aug. 31, 2006 | Year ended Aug. 31, 2005 | Year ended Aug. 31, 2004 | |||||||||||||||||||
Net asset value, beginning of period | $ | 17.64 | $ | 25.89 | $ | 22.83 | $ | 18.94 | $ | 14.77 | $ | 11.16 | ||||||||||||
Income from investment operations: | ||||||||||||||||||||||||
Net investment incomea | 0.02 | 0.78 | 0.76 | 0.75 | 0.71 | 0.37 | ||||||||||||||||||
Net realized and unrealized | (9.92 | ) | (7.27 | ) | 2.74 | 3.95 | 3.75 | 4.25 | ||||||||||||||||
Total from investment operations | (9.90 | ) | (6.49 | ) | 3.50 | 4.70 | 4.46 | 4.62 | ||||||||||||||||
Less distributions from: | ||||||||||||||||||||||||
Net investment income | (0.15 | ) | (1.76 | ) | (0.44 | ) | (0.81 | ) | (0.29 | ) | (1.01 | ) | ||||||||||||
Total distributions | (0.15 | ) | (1.76 | ) | (0.44 | ) | (0.81 | ) | (0.29 | ) | (1.01 | ) | ||||||||||||
Net asset value, end of period | $ | 7.59 | $ | 17.64 | $ | 25.89 | $ | 22.83 | $ | 18.94 | $ | 14.77 | ||||||||||||
Total return | (56.21 | )%c | (26.21 | )% | 15.36 | % | 25.66 | % | 30.22 | % | 42.88 | % | ||||||||||||
Ratios/Supplemental data: | ||||||||||||||||||||||||
Net assets, end of period (000s) | $ | 61,641 | $ | 119,955 | $ | 303,483 | $ | 152,484 | $ | 46,960 | $ | 24,813 | ||||||||||||
Ratio of expenses to average net assetsd | 0.55 | % | 0.52 | % | 0.51 | % | 0.54 | % | 0.57 | % | 0.78 | % | ||||||||||||
Ratio of net investment income to average net assetsd | 0.30 | % | 3.32 | % | 2.90 | % | 3.60 | % | 3.89 | % | 2.79 | % | ||||||||||||
Portfolio turnover ratee | 18 | % | 31 | % | 12 | % | 10 | % | 10 | % | 21 | % |
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.
54 | 2009 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. 28, 2009 (Unaudited) | Year ended Aug. 31, 2008a | Year ended Aug. 31, 2007a | Year ended Aug. 31, 2006a | Year ended Aug. 31, 2005a | Year ended Aug. 31, 2004a | |||||||||||||||||||
Net asset value, beginning of period | $ | 45.97 | $ | 57.15 | $ | 46.14 | $ | 37.49 | $ | 29.69 | $ | 25.06 | ||||||||||||
Income from investment operations: | ||||||||||||||||||||||||
Net investment incomeb | 0.19 | 1.71 | 1.40 | 1.37 | 0.88 | 0.68 | ||||||||||||||||||
Net realized and unrealized gain (loss)c | (23.05 | ) | (9.59 | ) | 10.54 | 7.94 | 7.57 | 4.35 | ||||||||||||||||
Total from investment operations | (22.86 | ) | (7.88 | ) | 11.94 | 9.31 | 8.45 | 5.03 | ||||||||||||||||
Less distributions from: | ||||||||||||||||||||||||
Net investment income | (0.54 | ) | (3.30 | ) | (0.93 | ) | (0.66 | ) | (0.65 | ) | (0.40 | ) | ||||||||||||
Total distributions | (0.54 | ) | (3.30 | ) | (0.93 | ) | (0.66 | ) | (0.65 | ) | (0.40 | ) | ||||||||||||
Net asset value, end of period | $ | 22.57 | $ | 45.97 | $ | 57.15 | $ | 46.14 | $ | 37.49 | $ | 29.69 | ||||||||||||
Total return | (50.00 | )%d | (14.52 | )% | 26.10 | % | 25.18 | % | 28.54 | % | 20.07 | % | ||||||||||||
Ratios/Supplemental data: | ||||||||||||||||||||||||
Net assets, end of period (000s) | $ | 532,583 | $ | 1,291,808 | $ | 2,971,565 | $ | 1,794,921 | $ | 547,284 | $ | 326,606 | ||||||||||||
Ratio of expenses to average net assetse | 0.56 | % | 0.52 | % | 0.51 | % | 0.54 | % | 0.58 | % | 0.79 | % | ||||||||||||
Ratio of expenses to average net assets exclusive of foreign taxese | n/a | n/a | n/a | n/a | 0.57 | % | 0.79 | % | ||||||||||||||||
Ratio of net investment income to average net assetse | 1.22 | % | 3.06 | % | 2.60 | % | 3.23 | % | 2.50 | % | 2.29 | % | ||||||||||||
Portfolio turnover ratef | 3 | % | 27 | % | 5 | % | 8 | % | 8 | % | 11 | % |
a | Per share amounts were adjusted to reflect a two-for-one stock split effective July 24, 2008. |
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 | 55 |
Table of Contents
Financial Highlights (Continued)
iSHARES®, INC.
(For a share outstanding throughout each period)
iShares MSCI France Index Fund | ||||||||||||||||||||||||
Six months ended Feb. 28, 2009 | Year ended Aug. 31, 2008 | Year ended Aug. 31, 2007 | Year ended Aug. 31, 2006 | Year ended Aug. 31, 2005 | Year ended Aug. 31, 2004 | |||||||||||||||||||
Net asset value, beginning of period | $ | 30.70 | $ | 36.53 | $ | 31.16 | $ | 25.41 | $ | 20.40 | $ | 16.90 | ||||||||||||
Income from investment operations: | ||||||||||||||||||||||||
Net investment incomea | 0.14 | 0.93 | 0.77 | 0.55 | 0.47 | 0.24 | ||||||||||||||||||
Net realized and unrealized gain (loss)b | (14.54 | ) | (5.17 | ) | 5.06 | 5.52 | 4.84 | 3.54 | ||||||||||||||||
Total from investment operations | (14.40 | ) | (4.24 | ) | 5.83 | 6.07 | 5.31 | 3.78 | ||||||||||||||||
Less distributions from: | ||||||||||||||||||||||||
Net investment income | (0.45 | ) | (1.59 | ) | (0.46 | ) | (0.32 | ) | (0.30 | ) | (0.28 | ) | ||||||||||||
Total distributions | (0.45 | ) | (1.59 | ) | (0.46 | ) | (0.32 | ) | (0.30 | ) | (0.28 | ) | ||||||||||||
Net asset value, end of period | $ | 15.85 | $ | 30.70 | $ | 36.53 | $ | 31.16 | $ | 25.41 | $ | 20.40 | ||||||||||||
Total return | (47.22 | )%c | (11.96 | )% | 18.83 | % | 24.13 | % | 26.13 | % | 22.44 | % | ||||||||||||
Ratios/Supplemental data: | ||||||||||||||||||||||||
Net assets, end of period (000s) | $ | 104,618 | $ | 227,203 | $ | 445,696 | $ | 211,886 | $ | 81,326 | $ | 61,201 | ||||||||||||
Ratio of expenses to average net assetsd | 0.56 | % | 0.52 | % | 0.51 | % | 0.54 | % | 0.57 | % | 0.79 | % | ||||||||||||
Ratio of net investment income to average net assetsd | 1.35 | % | 2.60 | % | 2.17 | % | 1.95 | % | 1.98 | % | 1.23 | % | ||||||||||||
Portfolio turnover ratee | 2 | % | 10 | % | 6 | % | 10 | % | 7 | % | 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.
56 | 2009 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 Feb. 28, 2009 | Year ended Aug. 31, 2008 | Year ended Aug. 31, 2007 | Year ended Aug. 31, 2006 | Year ended Aug. 31, 2005 | Year ended Aug. 31, 2004 | |||||||||||||||||||
Net asset value, beginning of period | $ | 27.55 | $ | 32.18 | $ | 23.68 | $ | 19.08 | $ | 14.96 | $ | 12.57 | ||||||||||||
Income from investment operations: | ||||||||||||||||||||||||
Net investment incomea | 0.01 | 0.88 | 0.68 | 0.57 | 0.28 | 0.19 | ||||||||||||||||||
Net realized and unrealized | (13.95 | ) | (3.84 | ) | 8.33 | 4.15 | 4.03 | 2.40 | ||||||||||||||||
Total from investment operations | (13.94 | ) | (2.96 | ) | 9.01 | 4.72 | 4.31 | 2.59 | ||||||||||||||||
Less distributions from: | ||||||||||||||||||||||||
Net investment income | (0.07 | ) | (1.67 | ) | (0.51 | ) | (0.12 | ) | (0.19 | ) | (0.20 | ) | ||||||||||||
Total distributions | (0.07 | ) | (1.67 | ) | (0.51 | ) | (0.12 | ) | (0.19 | ) | (0.20 | ) | ||||||||||||
Net asset value, end of period | $ | 13.54 | $ | 27.55 | $ | 32.18 | $ | 23.68 | $ | 19.08 | $ | 14.96 | ||||||||||||
Total return | (50.65 | )%c | (9.81 | )% | 38.47 | % | 24.82 | % | 28.89 | % | 20.55 | % | ||||||||||||
Ratios/Supplemental data: | ||||||||||||||||||||||||
Net assets, end of period (000s) | $ | 280,290 | $ | 669,452 | $ | 1,641,245 | $ | 802,795 | $ | 314,793 | $ | 98,764 | ||||||||||||
Ratio of expenses to average net assetsd | 0.55 | % | 0.52 | % | 0.51 | % | 0.54 | % | 0.57 | % | 0.80 | % | ||||||||||||
Ratio of net investment income | 0.16 | % | 2.72 | % | 2.32 | % | 2.62 | % | 1.54 | % | 1.27 | % | ||||||||||||
Portfolio turnover ratee | 8 | % | 11 | % | 4 | % | 12 | % | 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.
FINANCIAL HIGHLIGHTS | 57 |
Table of Contents
Financial Highlights (Continued)
iSHARES®, INC.
(For a share outstanding throughout each period)
iShares MSCI Italy Index Fund | ||||||||||||||||||||||||
Six months Feb. 28, 2009 | Year ended Aug. 31, 2008 | Year ended Aug. 31, 2007 | Year ended Aug. 31, 2006 | Year ended Aug. 31, 2005 | Year ended Aug. 31, 2004 | |||||||||||||||||||
Net asset value, beginning of period | $ | 25.04 | $ | 33.82 | $ | 30.48 | $ | 25.77 | $ | 20.21 | $ | 16.67 | ||||||||||||
Income from investment operations: | ||||||||||||||||||||||||
Net investment incomea | 0.19 | 1.53 | 1.35 | 1.07 | 0.78 | 0.56 | ||||||||||||||||||
Net realized and unrealized | (12.91 | ) | (7.71 | ) | 2.66 | 4.15 | 5.42 | 3.59 | ||||||||||||||||
Total from investment operations | (12.72 | ) | (6.18 | ) | 4.01 | 5.22 | 6.20 | 4.15 | ||||||||||||||||
Less distributions from: | ||||||||||||||||||||||||
Net investment income | (0.43 | ) | (2.60 | ) | (0.67 | ) | (0.51 | ) | (0.64 | ) | (0.61 | ) | ||||||||||||
Total distributions | (0.43 | ) | (2.60 | ) | (0.67 | ) | (0.51 | ) | (0.64 | ) | (0.61 | ) | ||||||||||||
Net asset value, end of period | $ | 11.89 | $ | 25.04 | $ | 33.82 | $ | 30.48 | $ | 25.77 | $ | 20.21 | ||||||||||||
Total return | (51.18 | )%c | (19.43 | )% | 13.20 | % | 20.61 | % | 30.74 | % | 25.09 | % | ||||||||||||
Ratios/Supplemental data: | ||||||||||||||||||||||||
Net assets, end of period (000s) | $ | 74,919 | $ | 244,154 | $ | 172,495 | $ | 146,324 | $ | 42,526 | $ | 27,279 | ||||||||||||
Ratio of expenses to average net assetsd | 0.55 | % | 0.52 | % | 0.52 | % | 0.54 | % | 0.57 | % | 0.83 | % | ||||||||||||
Ratio of expenses to average net assets exclusive of foreign taxesd | n/a | n/a | n/a | n/a | n/a | 0.79 | % | |||||||||||||||||
Ratio of net investment income to average net assetsd | 2.26 | % | 5.06 | % | 4.02 | % | 3.87 | % | 3.18 | % | 2.85 | % | ||||||||||||
Portfolio turnover ratee | 8 | % | 29 | % | 16 | % | 15 | % | 18 | % | 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 | 2009 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Financial Highlights (Continued)
iSHARES®, INC.
(For a share outstanding throughout each period)
iShares MSCI Netherlands Investable Market Index Fund | ||||||||||||||||||||||||
Six months ended Feb. 28, 2009 | Year ended Aug. 31, 2008 | Year ended Aug. 31, 2007 | Year ended Aug. 31, 2006 | Year ended Aug. 31, 2005 | Year ended Aug. 31, 2004 | |||||||||||||||||||
Net asset value, beginning of period | $ | 24.38 | $ | 29.75 | $ | 24.17 | $ | 19.10 | $ | 15.70 | $ | 14.31 | ||||||||||||
Income from investment operations: | ||||||||||||||||||||||||
Net investment incomea | 0.01 | 1.10 | 0.98 | 0.60 | 0.57 | 0.39 | ||||||||||||||||||
Net realized and unrealized | (12.15 | ) | (4.68 | ) | 5.05 | 4.95 | 3.09 | 1.37 | ||||||||||||||||
Total from investment operations | (12.14 | ) | (3.58 | ) | 6.03 | 5.55 | 3.66 | 1.76 | ||||||||||||||||
Less distributions from: | ||||||||||||||||||||||||
Net investment income | (0.35 | ) | (1.79 | ) | (0.45 | ) | (0.48 | ) | (0.26 | ) | (0.37 | ) | ||||||||||||
Total distributions | (0.35 | ) | (1.79 | ) | (0.45 | ) | (0.48 | ) | (0.26 | ) | (0.37 | ) | ||||||||||||
Net asset value, end of period | $ | 11.89 | $ | 24.38 | $ | 29.75 | $ | 24.17 | $ | 19.10 | $ | 15.70 | ||||||||||||
Total return | (50.06 | )%c | (12.67 | )% | 25.22 | % | 29.53 | % | 23.40 | % | 12.28 | % | ||||||||||||
Ratios/Supplemental data: | ||||||||||||||||||||||||
Net assets, end of period (000s) | $ | 79,042 | $ | 209,653 | $ | 251,354 | $ | 109,991 | $ | 63,974 | $ | 28,265 | ||||||||||||
Ratio of expenses to average net assetsd | 0.55 | % | 0.52 | % | 0.51 | % | 0.54 | % | 0.57 | % | 0.78 | % | ||||||||||||
Ratio of net investment income to average net assetsd | 0.13 | % | 3.86 | % | 3.50 | % | 2.78 | % | 3.13 | % | 2.45 | % | ||||||||||||
Portfolio turnover ratee | 8 | % | 26 | % | 8 | % | 17 | % | 6 | % | 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.
FINANCIAL HIGHLIGHTS | 59 |
Table of Contents
Financial Highlights (Continued)
iSHARES®, INC.
(For a share outstanding throughout each period)
iShares MSCI Spain Index Fund | ||||||||||||||||||||||||
Six months ended Feb. 28, 2009 | Year ended Aug. 31, 2008 | Year ended Aug. 31, 2007 | Year ended Aug. 31, 2006 | Year ended Aug. 31, 2005 | Year ended Aug. 31, 2004 | |||||||||||||||||||
Net asset value, beginning of period | $ | 50.41 | $ | 58.06 | $ | 44.81 | $ | 35.70 | $ | 27.55 | $ | 22.39 | ||||||||||||
Income from investment operations: | ||||||||||||||||||||||||
Net investment incomea | 0.83 | 1.98 | 1.30 | 1.07 | 0.79 | 0.44 | ||||||||||||||||||
Net realized and unrealized gain (loss)b | (21.67 | ) | (7.33 | ) | 12.33 | 8.78 | 7.97 | 4.99 | ||||||||||||||||
Total from investment operations | (20.84 | ) | (5.35 | ) | 13.63 | 9.85 | 8.76 | 5.43 | ||||||||||||||||
Less distributions from: | ||||||||||||||||||||||||
Net investment income | (1.54 | ) | (2.30 | ) | (0.38 | ) | (0.74 | ) | (0.61 | ) | (0.27 | ) | ||||||||||||
Total distributions | (1.54 | ) | (2.30 | ) | (0.38 | ) | (0.74 | ) | (0.61 | ) | (0.27 | ) | ||||||||||||
Net asset value, end of period | $ | 28.03 | $ | 50.41 | $ | 58.06 | $ | 44.81 | $ | 35.70 | $ | 27.55 | ||||||||||||
Total return | (42.02 | )%c | (9.76 | )% | 30.47 | % | 28.09 | % | 31.85 | % | 24.28 | % | ||||||||||||
Ratios/Supplemental data: | ||||||||||||||||||||||||
Net assets, end of period (000s) | $ | 155,567 | $ | 321,349 | $ | 522,556 | $ | 178,130 | $ | 66,945 | $ | 45,456 | ||||||||||||
Ratio of expenses to average net assetsd | 0.56 | % | 0.52 | % | 0.51 | % | 0.54 | % | 0.57 | % | 0.80 | % | ||||||||||||
Ratio of net investment income to average net assetsd | 4.49 | % | 3.28 | % | 2.36 | % | 2.67 | % | 2.33 | % | 1.64 | % | ||||||||||||
Portfolio turnover ratee | 7 | % | 22 | % | 12 | % | 6 | % | 8 | % | 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.
60 | 2009 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 Feb. 28, 2009 | Year ended Aug. 31, 2008 | Year ended Aug. 31, 2007 | Year ended Aug. 31, 2006 | Year ended Aug. 31, 2005 | Year ended Aug. 31, 2004 | |||||||||||||||||||
Net asset value, beginning of period | $ | 24.48 | $ | 34.57 | $ | 25.88 | $ | 21.58 | $ | 16.82 | $ | 12.59 | ||||||||||||
Income from investment operations: | ||||||||||||||||||||||||
Net investment income (loss)a | (0.04 | ) | 0.91 | 1.15 | 0.76 | 0.46 | 0.28 | |||||||||||||||||
Net realized and unrealized gain (loss)b | (11.66 | ) | (8.63 | ) | 7.88 | 3.96 | 4.45 | 4.20 | ||||||||||||||||
Total from investment operations | (11.70 | ) | (7.72 | ) | 9.03 | 4.72 | 4.91 | 4.48 | ||||||||||||||||
Less distributions from: | ||||||||||||||||||||||||
Net investment income | (0.02 | ) | (2.37 | ) | (0.34 | ) | (0.42 | ) | (0.15 | ) | (0.25 | ) | ||||||||||||
Total distributions | (0.02 | ) | (2.37 | ) | (0.34 | ) | (0.42 | ) | (0.15 | ) | (0.25 | ) | ||||||||||||
Net asset value, end of period | $ | 12.76 | $ | 24.48 | $ | 34.57 | $ | 25.88 | $ | 21.58 | $ | 16.82 | ||||||||||||
Total return | (47.81 | )%c | (23.16 | )% | 35.01 | % | 22.16 | % | 29.21 | % | 35.81 | % | ||||||||||||
Ratios/Supplemental data: | ||||||||||||||||||||||||
Net assets, end of period (000s) | $ | 81,352 | $ | 227,654 | $ | 573,026 | $ | 151,427 | $ | 61,513 | $ | 27,758 | ||||||||||||
Ratio of expenses to average net assetsd | 0.55 | % | 0.51 | % | 0.51 | % | 0.54 | % | 0.58 | % | 0.92 | % | ||||||||||||
Ratio of expenses to average net assets exclusive of foreign taxesd | n/a | n/a | n/a | n/a | 0.57 | % | 0.79 | % | ||||||||||||||||
Ratio of net investment income (loss) to average net assetsd | (0.50 | )% | 2.91 | % | 3.42 | % | 3.13 | % | 2.28 | % | 1.74 | % | ||||||||||||
Portfolio turnover ratee | 2 | % | 17 | % | 7 | % | 14 | % | 6 | % | 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.
FINANCIAL HIGHLIGHTS | 61 |
Table of Contents
Financial Highlights (Continued)
iSHARES®, INC.
(For a share outstanding throughout each period)
iShares MSCI Switzerland Index Fund | ||||||||||||||||||||||||
Six months Feb. 28, 2009 | Year ended Aug. 31, 2008 | Year ended Aug. 31, 2007 | Year ended Aug. 31, 2006 | Year ended Aug. 31, 2005 | Year ended Aug. 31, 2004 | |||||||||||||||||||
Net asset value, beginning of period | $ | 23.09 | $ | 25.78 | $ | 22.49 | $ | 17.63 | $ | 14.58 | $ | 12.23 | ||||||||||||
Income from investment operations: | ||||||||||||||||||||||||
Net investment incomea | 0.03 | 0.49 | 0.36 | 0.27 | 0.22 | 0.09 | ||||||||||||||||||
Net realized and unrealized | (8.78 | ) | (2.51 | ) | 3.12 | 4.71 | 2.92 | 2.31 | ||||||||||||||||
Total from investment operations | (8.75 | ) | (2.02 | ) | 3.48 | 4.98 | 3.14 | 2.40 | ||||||||||||||||
Less distributions from: | ||||||||||||||||||||||||
Net investment income | (0.07 | ) | (0.67 | ) | (0.19 | ) | (0.12 | ) | (0.09 | ) | (0.05 | ) | ||||||||||||
Total distributions | (0.07 | ) | (0.67 | ) | (0.19 | ) | (0.12 | ) | (0.09 | ) | (0.05 | ) | ||||||||||||
Net asset value, end of period | $ | 14.27 | $ | 23.09 | $ | 25.78 | $ | 22.49 | $ | 17.63 | $ | 14.58 | ||||||||||||
Total return | (37.97 | )%c | (7.97 | )% | 15.53 | % | 28.36 | % | 21.54 | % | 19.56 | % | ||||||||||||
Ratios/Supplemental data: | ||||||||||||||||||||||||
Net assets, end of period (000s) | $ | 187,298 | $ | 366,525 | $ | 318,998 | $ | 188,319 | $ | 79,324 | $ | 41,920 | ||||||||||||
Ratio of expenses to average net assetsd | 0.56 | % | 0.52 | % | 0.51 | % | 0.54 | % | 0.57 | % | 0.79 | % | ||||||||||||
Ratio of net investment income to average net assetsd | 0.35 | % | 1.93 | % | 1.42 | % | 1.34 | % | 1.34 | % | 0.64 | % | ||||||||||||
Portfolio turnover ratee | 9 | % | 11 | % | 5 | % | 11 | % | 5 | % | 4 | % |
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 | 2009 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 Feb. 28, 2009 | Year ended Aug. 31, 2008 | Year ended Aug. 31, 2007 | Year ended Aug. 31, 2006 | Year ended Aug. 31, 2005 | Year ended Aug. 31, 2004 | |||||||||||||||||||
Net asset value, beginning of period | $ | 19.35 | $ | 24.73 | $ | 21.92 | $ | 18.74 | $ | 15.72 | $ | 13.00 | ||||||||||||
Income from investment operations: | ||||||||||||||||||||||||
Net investment incomea | 0.21 | 0.83 | 0.84 | 0.97 | 0.60 | 0.48 | ||||||||||||||||||
Net realized and unrealized | (9.05 | ) | (4.89 | ) | 2.78 | 2.79 | 2.76 | 2.72 | ||||||||||||||||
Total from investment operations | (8.84 | ) | (4.06 | ) | 3.62 | 3.76 | 3.36 | 3.20 | ||||||||||||||||
Less distributions from: | ||||||||||||||||||||||||
Net investment income | (0.34 | ) | (1.32 | ) | (0.81 | ) | (0.58 | ) | (0.34 | ) | (0.48 | ) | ||||||||||||
Total distributions | (0.34 | ) | (1.32 | ) | (0.81 | ) | (0.58 | ) | (0.34 | ) | (0.48 | ) | ||||||||||||
Net asset value, end of period | $ | 10.17 | $ | 19.35 | $ | 24.73 | $ | 21.92 | $ | 18.74 | $ | 15.72 | ||||||||||||
Total return | (45.92 | )%c | (17.16 | )% | 16.77 | % | 20.61 | % | 21.53 | % | 24.77 | % | ||||||||||||
Ratios/Supplemental data: | ||||||||||||||||||||||||
Net assets, end of period (000s) | $ | 384,285 | $ | 882,502 | $ | 1,127,738 | $ | 872,409 | $ | 464,850 | $ | 452,870 | ||||||||||||
Ratio of expenses to average net assetsd | 0.56 | % | 0.52 | % | 0.51 | % | 0.54 | % | 0.57 | % | 0.77 | % | ||||||||||||
Ratio of net investment income to average net assetsd | 3.28 | % | 3.64 | % | 3.51 | % | 4.81 | % | 3.39 | % | 3.11 | % | ||||||||||||
Portfolio turnover ratee | 4 | % | 14 | % | 8 | % | 10 | % | 11 | % | 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 | 63 |
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 Investable Market, iShares MSCI Belgium Investable Market, iShares MSCI EMU, iShares MSCI France, iShares MSCI Germany, iShares MSCI Italy, iShares MSCI Netherlands Investable Market, 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, 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”). 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 valued pursuant to the pricing policy and procedures approved by the Board of Directors of the Company (the “Board”). Effective September 1, 2008, the Funds adopted Financial Accounting Standards Board (“FASB”) Statement of Financial Accounting Standards No. 157 (“FAS 157”), “Fair Value Measurements.” This standard establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. Inputs may be based on independent market
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Table of Contents
Notes to Financial Statements (Unaudited) (Continued)
iSHARES®, INC.
data (“observable inputs”) or they may be internally developed (“unobservable inputs”). The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy under FAS 157 are as follows:
• | Level 1 – Inputs that reflect unadjusted quoted prices in active markets for identical assets or liabilities that the Fund has the ability to access at the measurement date (a “Level 1 Price”); |
• | Level 2 – Inputs other than quoted prices included within Level 1 that are observable for the asset or liability either directly or indirectly, including quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not considered to be active, inputs other than quoted prices that are observable for the asset or liability, and inputs that are derived principally from or corroborated by observable market data by correlation or other means (a “Level 2 Price”); |
• | Level 3 – Inputs that are unobservable for the asset or liability (a “Level 3 Price”). |
Inputs are used in applying the various valuation techniques and broadly refer to the assumptions that market participants use to make valuation decisions, including assumptions about risk. Inputs may include price information, volatility statistics, specific and broad credit data, liquidity statistics, and other factors. The level of a value determined for a financial instrument within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement in its entirety. However, the determination of what constitutes an “observable” input may require significant judgment by the Funds. The Funds consider observable inputs to be market data that is readily available, regularly distributed or updated, reliable and verifiable, and provided by independent sources that are actively involved in the relevant market. The categorization of a value determined for a financial instrument within the hierarchy is based upon the pricing transparency of the instrument and does not necessarily correspond to the Funds’ perceived risk of that instrument.
Investments whose values are based on quoted market prices in active markets, and whose values are therefore classified as Level 1 Prices, include active listed equities and certain U.S. government securities. The Funds do not adjust the quoted price for such instruments, even in situations where the Funds hold a large position and a sale could reasonably impact the quoted price.
Investments that trade in markets that are not considered to be active, but whose values are based on quoted market prices, dealer quotations or valuations provided by alternative pricing sources supported by observable inputs are classified as Level 2 Prices. These generally include certain U.S. government and sovereign obligations, most government agency securities, investment-grade corporate bonds, certain mortgage products, less liquid listed equities, and state, municipal and provincial obligations. As investments whose values are classified as Level 2 Prices include positions that are not traded in active markets and/or are subject to transfer restrictions, valuations may be adjusted to reflect illiquidity and/or non-transferability, which are generally based on available market information.
Investments whose values are classified as Level 3 Prices have significant unobservable inputs, as they may trade infrequently or not at all. Investments whose values are classified as Level 3 Prices may include unlisted securities related to corporate actions, securities whose trading have been suspended or which have been de-listed from their primary trading exchange, less liquid corporate debt securities (including distressed debt instruments), collateralized debt obligations, and less liquid mortgage securities (backed by either commercial or residential real estate). When observable prices are not available for these securities, the Funds use one or more valuation techniques (e.g., the market approach or the income approach) for which sufficient and reliable data is available. Within Level 3 of the fair value hierarchy, the use of the market approach generally consists of using comparable market transactions, while the use of the income approach generally consists of the net present value of estimated future cash flows, adjusted as appropriate for liquidity, credit, market and/or other risk factors.
The inputs used by the Funds in estimating the value of Level 3 Prices may include the original transaction price, quoted prices for similar securities or assets in active markets, completed or pending third-party transactions in the underlying investment or comparable issuers,
NOTESTO FINANCIAL STATEMENTS | 65 |
Table of Contents
Notes to Financial Statements (Unaudited) (Continued)
iSHARES®, INC.
and changes in financial ratios or cash flows. Level 3 Prices may also be adjusted to reflect illiquidity and/or non-transferability, with the amount of such discount estimated by the Funds in the absence of market information. The fair value measurement of Level 3 Prices does not include transaction costs that may have been capitalized as part of the security’s cost basis. Assumptions used by the Funds due to the lack of observable inputs may significantly impact the resulting fair value and therefore the Funds’ results of operations.
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 underlying index, which in turn could result in a difference between the Fund’s performance and the performance of the Fund’s underlying index.
The following table summarizes the inputs used in valuing the Funds’ investments as of February 28, 2009:
Investments in Securities | ||||||||||||
iShares MSCI Index Fund | Level 1 | Level 2 | Level 3 | Total | ||||||||
Austria Investable Market | $ | 69,784,818 | $ | – | $ | – | $ | 69,784,818 | ||||
Belgium Investable Market | 61,963,694 | – | 192 | 61,963,886 | ||||||||
EMU | 547,392,338 | – | 78 | 547,392,416 | ||||||||
France | 107,693,230 | – | – | 107,693,230 | ||||||||
Germany | 302,939,305 | – | – | 302,939,305 | ||||||||
Italy | 74,908,297 | – | – | 74,908,297 | ||||||||
Netherlands Investable Market | 79,161,526 | – | – | 79,161,526 | ||||||||
Spain | 192,933,834 | – | – | 192,933,834 | ||||||||
Sweden | 88,644,326 | – | – | 88,644,326 | ||||||||
Switzerland | 188,231,162 | – | – | 188,231,162 | ||||||||
United Kingdom | 381,470,139 | – | – | 381,470,139 |
The following table provides the reconciliation of investments in which significant unobservable inputs (Level 3) were used in determining fair value for the six months ended February 28, 2009:
iShares MSCI Index Fund | Balance at Beginning of Period | (Amortized Premiums) Accreted Discounts | Realized Gain (Loss) and Change in Unrealized | Net Purchases (Sales) | Net in or out | Balance at End of Period | Net Change in End of Period | ||||||||||||||||||
Austria Investable Market | $ | 14 | $ | – | $ | – | $ | – | $ | (14 | ) | $ | – | $ | – | ||||||||||
Belgium Investable Market | – | – | – | – | 192 | 192 | 192 | ||||||||||||||||||
EMU | – | – | (2,188,382 | ) | (49,209 | ) | 2,237,669 | 78 | (1,936,673 | ) |
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Table of Contents
Notes to Financial Statements (Unaudited) (Continued)
iSHARES®, INC.
SECURITY TRANSACTIONS AND INCOME RECOGNITION
Security transactions are accounted for on trade date. Dividend income is recognized on the ex-dividend date, net of any foreign taxes withheld at source, and interest income is accrued daily. Realized gains and losses on investment transactions are determined using the specific identification method.
FOREIGN CURRENCY TRANSLATION
The accounting records of the Funds are maintained in U.S. dollars. Foreign currencies, as well as investment securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollars using exchange rates deemed appropriate by the investment adviser. Any use of a rate different from the rates used by MSCI may adversely affect a Fund’s ability to track its underlying index. Purchases and sales of securities, income receipts and expense payments are translated into U.S. dollars on the respective dates of such transactions.
Each Fund does not isolate the effect of fluctuations in foreign exchange rates from the effect of fluctuations in the market prices of securities. Such fluctuations are reflected by the Funds as a component of realized and unrealized gains and losses from investments for financial reporting purposes.
FOREIGN TAXES
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 28, 2009, if any, are reflected in the Funds’ Statements 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 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 28, 2009.
NOTESTO FINANCIAL STATEMENTS | 67 |
Table of Contents
Notes to Financial Statements (Unaudited) (Continued)
iSHARES®, INC.
The Funds had tax basis net capital loss carryforwards as of August 31, 2008, the tax year-end of the Funds, as follows:
iShares MSCI Index Fund | Expiring 2009 | Expiring 2010 | Expiring 2011 | Expiring 2012 | Expiring 2013 | Expiring 2014 | Expiring 2015 | Expiring 2016 | Total | ||||||||||||||||||
Austria Investable Market | $ | 336,553 | $ | 1,291,324 | $ | 370,948 | $ | 855,364 | $ | – | $ | – | $ | 9,795,917 | $ | 2,587,916 | $ | 15,238,022 | |||||||||
Belgium Investable Market | 59,876 | 1,677,678 | 117,767 | 175,781 | 33,969 | – | – | 1,698,444 | 3,763,515 | ||||||||||||||||||
EMU | – | – | – | 659,648 | 1,873,963 | – | – | – | 2,533,611 | ||||||||||||||||||
France | – | 2,436,748 | 236,944 | 2,400,550 | – | – | 158,472 | 335,795 | 5,568,509 | ||||||||||||||||||
Germany | – | 8,697,227 | 5,469,732 | 8,656,712 | 2,241,687 | – | 4,227,713 | 3,394,735 | 32,687,806 | ||||||||||||||||||
Italy | – | 2,648,775 | 848,408 | 541,980 | 527,327 | – | – | 472,268 | 5,038,758 | ||||||||||||||||||
Netherlands Investable Market | 60,885 | 3,222,792 | 1,497,810 | 2,481,175 | 129,137 | 403,525 | 260,715 | 1,195,162 | 9,251,201 | ||||||||||||||||||
Spain | – | – | – | 995,671 | – | – | – | – | 995,671 | ||||||||||||||||||
Sweden | – | 713,472 | 1,577,551 | 1,149,514 | – | 107,613 | – | 100,015 | 3,648,165 | ||||||||||||||||||
Switzerland | – | 1,970,979 | 1,018,305 | 2,149,171 | 354,252 | – | – | – | 5,492,707 | ||||||||||||||||||
United Kingdom | – | 856,798 | 6,448,554 | 4,272,059 | 1,517,783 | 7,063,063 | – | 261,754 | 20,420,011 |
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 | 2009 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
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Notes to Financial Statements (Unaudited) (Continued)
iSHARES®, INC.
As of February 28, 2009, 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 Depreciation | ||||||||||
Austria Investable Market | $ | 226,853,737 | $ | – | $ | (157,068,919 | ) | $ | (157,068,919 | ) | ||||
Belgium Investable Market | 160,269,050 | – | (98,305,164 | ) | (98,305,164 | ) | ||||||||
EMU | 1,259,800,853 | – | (712,408,437 | ) | (712,408,437 | ) | ||||||||
France | 258,586,175 | – | (150,892,945 | ) | (150,892,945 | ) | ||||||||
Germany | 686,302,971 | – | (383,363,666 | ) | (383,363,666 | ) | ||||||||
Italy | 194,243,428 | – | (119,335,131 | ) | (119,335,131 | ) | ||||||||
Netherlands Investable Market | 183,286,933 | – | (104,125,407 | ) | (104,125,407 | ) | ||||||||
Spain | 404,686,210 | – | (211,752,376 | ) | (211,752,376 | ) | ||||||||
Sweden | 227,735,795 | – | (139,091,469 | ) | (139,091,469 | ) | ||||||||
Switzerland | 334,849,654 | – | (146,618,492 | ) | (146,618,492 | ) | ||||||||
United Kingdom | 849,422,942 | – | (467,952,803 | ) | (467,952,803 | ) |
Management has reviewed the tax positions as of February 28, 2009, inclusive of the prior three open tax return years, and has determined that no provision for income tax is required in 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 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 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 the Funds and certain other iShares Funds as follows:
Investment Advisory Fee | Aggregate Average Daily Net Assets | |||
0.59% | First $7 billion | |||
0.54 | Over $7 billion, up to and including $11 billion | |||
0.49 | Over $11 billion, up to and including $24 billion | |||
0.44 | Over $24 billion, up to and including $48 billion | |||
0.40 | Over $48 billion |
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.
NOTESTO FINANCIAL STATEMENTS | 69 |
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Notes to Financial Statements (Unaudited) (Continued)
iSHARES®, INC.
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 28, 2009, BGI earned securities lending agent fees as follows:
iShares MSCI Index Fund | Securities Lending Agent Fees | ||
Austria Investable Market | $ | 122,000 | |
Belgium Investable Market | 25,682 | ||
EMU | 323,228 | ||
France | 75,762 | ||
Germany | 123,901 | ||
Italy | 11,297 |
iShares MSCI Index Fund | Securities Lending Agent Fees | ||
Netherlands Investable Market | $ | 4,909 | |
Spain | 572,792 | ||
Sweden | 33,480 | ||
Switzerland | 16,322 | ||
United Kingdom | 18,879 |
Cross trades for the six months ended February 28, 2009, 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 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. These money market funds seek to achieve their investment objectives by investing in high-quality, short-term money market instruments that, at the time of investment, have remaining maturities of 397 calendar days or less from the date of acquisition. 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.
70 | 2009 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
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Notes to Financial Statements (Unaudited) (Continued)
iSHARES®, INC.
For the six months ended February 28, 2009, 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 (in 000s) | Value at End of Period | Net Realized Loss | |||||||||
Barclays PLC | 2,878 | 204 | 653 | 2,429 | $ | 3,233,457 | $ | (2,302,223 | ) |
Certain directors and officers of the Company are also officers of BGI and/or BGFA.
3. INVESTMENT PORTFOLIO TRANSACTIONS
Purchases and sales of investments (excluding in-kind transactions and short-term investments) for the six months ended February 28, 2009 were as follows:
iShares MSCI Index Fund | Purchases | Sales | ||||
Austria Investable Market | $ | 9,396,300 | $ | 7,825,292 | ||
Belgium Investable Market | 12,081,078 | 13,346,382 | ||||
EMU | 25,955,653 | 34,641,361 | ||||
France | 3,527,366 | 5,758,857 | ||||
Germany | 34,816,011 | 33,012,628 | ||||
Italy | 10,096,683 | 11,812,197 | ||||
Netherlands Investable Market | 11,023,429 | 12,647,317 | ||||
Spain | 17,652,272 | 22,262,126 | ||||
Sweden | 2,359,881 | 2,759,357 | ||||
Switzerland | 27,333,057 | 27,956,169 | ||||
United Kingdom | 23,441,776 | 26,677,223 |
In-kind transactions (see Note 4) for the six months ended February 28, 2009 were as follows:
iShares MSCI Index Fund | In-kind Purchases | In-kind Sales | ||||
Austria Investable Market | $ | 60,260,414 | $ | 58,770,921 | ||
Belgium Investable Market | 36,727,819 | 30,726,872 | ||||
EMU | 172,836,156 | 341,761,217 | ||||
France | 108,539,994 | 90,079,925 | ||||
Germany | 189,480,434 | 241,650,960 | ||||
Italy | 65,223,016 | 137,282,479 | ||||
Netherlands Investable Market | 27,986,099 | 49,642,329 | ||||
Spain | 111,614,181 | 117,522,814 | ||||
Sweden | 32,033,345 | 73,039,394 | ||||
Switzerland | 73,368,970 | 101,376,963 | ||||
United Kingdom | 13,645,868 | 113,087,643 |
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 include the risk that the borrower may not provide additional collateral when required or may not return the securities when due. Any securities lending cash collateral may be reinvested in certain short-term instruments either directly on behalf of a Fund or through one or more joint accounts or money market funds, including those managed by BGFA; such reinvestments are subject to investment risk.
As of February 28, 2009, the Funds had loaned securities which were collateralized by cash. The cash collateral received was invested in money market funds managed by BGFA. The market value of the securities on loan as of February 28, 2009 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. SUBSEQUENT EVENT
On April 9, 2009, Barclays Global Investors UK Holdings Limited (“Barclays”), the parent company of BGI and BGFA, entered into an agreement to sell its interest in BGFA and certain affiliated companies to Blue Sparkle, L.P., a Cayman Islands limited partnership (the “Transaction”). Blue Sparkle, L.P. is an investment vehicle for private equity funds affiliated with CVC Capital Partners Group SICAV-FIS S.A., a private equity and investment advisory firm. The Transaction is subject to certain regulatory approvals, as well as other conditions to closing.
Under the 1940 Act, completion of the Transaction will cause the automatic termination of each Fund’s current investment advisory agreement with BGFA. In order for the management of each Fund to continue uninterrupted, the Board will be asked to approve a new investment advisory agreement with BGFA. If approved by the Board, the new investment advisory agreement will be submitted to the Funds’ shareholders for their approval.
72 | 2009 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 Capped (FIO)
iShares FTSE NAREIT Mortgage Plus Capped (REM)
iShares FTSE NAREIT Real Estate 50 (FTY)
iShares FTSE NAREIT Residential Plus Capped (REZ)
iShares FTSE NAREIT Retail Capped (RTL)
iShares Global Index Funds
iShares S&P Global 100 (IOO)
iShares S&P Global Clean Energy (ICLN)
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 Nuclear Energy (NUCL)
iShares S&P Global Technology Sector (IXN)
iShares S&P Global Telecommunications Sector (IXP)
iShares S&P Global Timber& Forestry (WOOD)
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 China (HK Listed) (FCHI)
iShares FTSE/Xinhua China 25 (FXI)
iShares MSCI Australia (EWA)
iShares MSCI Austria Investable Market (EWO)
iShares MSCI Belgium Investable Market (EWK)
iShares MSCI Brazil (EWZ)
iShares MSCI Canada (EWC)
iShares MSCI Chile Investable Market (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 Investable Market (EWW)
iShares MSCI Netherlands Investable Market (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 Barclays Aggregate (AGG)
iShares Barclays MBS (MBB)
iShares Barclays Short Treasury (SHV)
iShares Barclays 1-3 Year Treasury (SHY)
iShares Barclays 3-7 Year Treasury (IEI)
iShares Barclays 7-10 Year Treasury (IEF)
iShares Barclays 10-20 Year Treasury (TLH)
iShares Barclays 20+ Year Treasury (TLT)
iShares Barclays TIPS (TIP)
iShares Barclays Agency (AGZ)
iShares Barclays Credit (CFT)
iShares Barclays 1-3 Year Credit (CSJ)
iShares Barclays Intermediate Credit (CIU)
iShares iBoxx $ Investment Grade Corporate (LQD)
iShares iBoxx $ High Yield Corporate (HYG)
iShares Barclays Government/Credit (GBF)
iShares Barclays Intermediate Government/Credit (GVI)
iShares S&P National Municipal (MUB)
iShares S&P Short Term National Municipal (SUB)
iShares S&P California Municipal (CMF)
iShares S&P New York Municipal (NYF)
iShares JPMorgan USD Emerging Markets (EMB)
iShares S&P/Citigroup International Treasury (IGOV)
iShares S&P/Citigroup 1-3 Year International Treasury (ISHG)
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 FAMILYOF FUNDS | 73 |
Table of Contents
The iShares® Family of Funds (Continued)
iShares International Index Funds
iShares FTSE Developed Small Cap ex-North America (IFSM)
iShares FTSE EPRA/NAREIT Developed Asia (IFAS)
iShares FTSE EPRA/NAREIT Developed Europe (IFEU)
iShares FTSE EPRA/NAREIT Developed Real Estate ex-U.S. (IFGL)
iShares FTSE EPRA/NAREIT North America (IFNA)
iShares MSCI ACWI (ACWI)
iShares MSCI ACWI ex US (ACWX)
iShares MSCI All Country Asia ex Japan (AAXJ)
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 Developed ex-U.S. Property (WPS)
iShares S&P Europe 350 (IEV)
iShares S&P Latin America 40 (ILF)
iShares Morningstar Index Funds
iShares Morningstar Large Core (JKD)
iShares Morningstar Large Growth (JKE)
iShares Morningstar Large Value (JKF)
iShares Morningstar Mid Core (JKG)
iShares Morningstar Mid Growth (JKH)
iShares Morningstar Mid Value (JKI)
iShares Morningstar Small Core (JKJ)
iShares Morningstar Small Growth (JKK)
iShares Morningstar Small Value (JKL)
iShares NYSE Index Funds
iShares NYSE Composite (NYC)
iShares NYSE 100 (NY)
iShares S&P Allocation Funds
iShares S&P Conservative (AOK)
iShares S&P Moderate (AOM)
iShares S&P Growth (AOR)
iShares S&P Aggressive (AOA)
iShares S&P Target Date Index Funds
iShares S&P Target Date Retirement Income (TGR)
iShares S&P Target Date 2010 (TZD)
iShares S&P Target Date 2015 (TZE)
iShares S&P Target Date 2020 (TZG)
iShares S&P Target Date 2025 (TZI)
iShares S&P Target Date 2030 (TZL)
iShares S&P Target Date 2035 (TZO)
iShares S&P Target Date 2040 (TZV)
iShares® is a registered trademark of Barclays Global Investors, N.A. (“BGI”). The iShares Funds are not 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, nor are they sponsored or endorsed by Barclays Capital. 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 except Barclays Capital, which is an affiliate of BGI. 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/Residential/Retail/Mortgage REITs or 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 2009 Semi-Annual Report.
iS-0569-0409
74 | 2009 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
For more information:
WWW.iSHARES.COM
1-800-iShares (1-800-474-2737)
The Shares Funds are distributed by SEI Investments Distribution Co. (SEI). Barclays Global Fund Advisors (BGFA) serves as an advisor to the iShares Funds. BGFA is a subsidiary of Barclays Global investors, N.A. (BGI), neither of which is affiliated with SEI.
The iShares Funds are not sponsored, endorsed, issued, sold or promoted by MSCI Inc. nor does his company 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 company listed above.
©2009 Barclays Global Investors. All rights reserved iShares® is a registered trademark of Barclays Global investors, N.A. All other trademarks, servicemarks or registered trademarks are the property of their respective owners.
Investing involves risk, including possible loss of principal.
A description of the policies that the Funds use to determine how to vote proxies relating to portfolio securities and information about how the Funds voted proxies relating to portfolio securities during the most recent twelve-month period ended June 30 is available without charge, upon request, by calling toll-free 1-800-474-2737; on the Funds’ website at www.iShares.com; and on the U.S. Securities and Exchange Commission (SEC) website at www.sec.gov.
The Funds file their complete schedules of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-G. The Funds’ Forms N-G are available on the SEC’s website or may be reviewed and copied at the SEC’s Public Reference Room n Washington, D.C. Information on the operation of the Public Reference Room may be obtained by calling 1 -800-SEC-0330. The Funds also disclose their complete schedules of portfolio holdings on a monthly basis on the Funds’ website.
This report is intended for the Funds’ shareholders. It may not be distributed to prospective investors unless it is preceded or accompanied by the current prospectus.
BGI-SAR-82-0209
IShares
LET’S BUILD A BETTER INVESTMENT WORLD®.
BARCLAYS
GLOBAL INVESTORS
Table of Contents
2009 SEMI-ANNUAL REPORT TO SHAREHOLDERS
iSHARES® MSCI SERIES
FEBRUARY 28, 2009
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See inside cover for details.
iShares MSCI Australia Index Fund
iShares MSCI Hong Kong Index Fund
iShares MSCI Japan Small Cap Index Fund
iShares MSCI Malaysia Index Fund
iShares MSCI Pacific ex-Japan Index Fund
iShares MSCI Singapore Index Fund
iShares MSCI South Korea Index Fund
iShares MSCI Taiwan Index Fund
iShares MSCI Thailand Investable Market Index Fund
iShares®
Table of Contents
iShares®
Dear iShares Shareholder:
Electronic delivery is the easiest, most convenient way to receive reporting on your iShares holdings. In addition, it’s a way we can all care for our environment. To that end, we are pleased to offer shareholder reports and prospectuses online.
To sign up for electronic delivery, please follow these simple steps:
1. Go to www.icsdelivery.com.
2. From the main page, select the first letter of your brokerage firm’s name.
3. Select your brokerage institution from the list that follows. If your brokerage firm is not listed, electronic delivery may not be available. Please contact your brokerage firm or financial adviser.
4. Fill out the appropriate information and provide the e-mail address where you would like your information sent.
Your information and email address will be kept confidential and only used to deliver documents to you. If at any time you are not satisfied, you can cancel electronic delivery at www.icsdelivery.com and once again receive physical delivery of your materials. If you have any questions, please contact your brokerage firm or financial adviser.
Once you have enrolled, you will no longer receive prospectuses and shareholder reports in the mail. Instead, you will receive e-mail notifications announcing that the shareholder report or prospectus has been posted on the iShares website at www.iShares.com.
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iSHARES® MSCI AUSTRALIA INDEX FUND
Performance as of February 28, 2009
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 28, 2009, the total return for the Fund was (49.25)%, while the total return for the Index was (49.54)%.
Average Annual Total Returns | ||||||||||||||||
Year Ended 2/28/09 | Five Years Ended 2/28/09 | Ten Years Ended 2/28/09 | ||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||
(55.44)% | (55.03)% | (55.90)% | 0.67% | 0.17% | 0.04% | 5.41% | 5.05% | 4.98% | ||||||||
Cumulative Total Returns | ||||||||||||||||
Year Ended 2/28/09 | Five Years Ended 2/28/09 | Ten Years Ended 2/28/09 | ||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||
(55.44)% | (55.03)% | (55.90)% | 3.39% | 0.83% | 0.21% | 69.30% | 63.73% | 62.57% |
“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 primary 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 2/28/09 | |||
Sector | Percentage of Net Assets | ||
Financial | 39.69 | % | |
Basic Materials | 22.65 | ||
Consumer Non-Cyclical | 15.87 | ||
Industrial | 7.31 | ||
Energy | 6.40 | ||
Communications | 2.72 | ||
Consumer Cyclical | 2.32 | ||
Utilities | 1.10 | ||
Technology | 0.54 | ||
Short-Term and Other Net Assets | 1.40 | ||
TOTAL | 100.00 | % | |
TEN LARGEST FUND HOLDINGS As of 2/28/09 | |||
Security | Percentage of Net Assets | ||
BHP Billiton Ltd. | 15.57 | % | |
Westpac Banking Corp. | 7.60 | ||
Commonwealth Bank of Australia | 7.05 | ||
National Australia Bank Ltd. | 5.38 | ||
Woolworths Ltd. | 5.15 | ||
Australia and New Zealand Banking Group Ltd. | 4.38 | ||
CSL Ltd. | 3.55 | ||
Westfield Group | 3.46 | ||
QBE Insurance Group Ltd. | 3.03 | ||
Wesfarmers Ltd. | 2.85 | ||
TOTAL | 58.02 | % | |
FUND PERFORMANCE OVERVIEWS | 1 |
Table of Contents
Fund Performance Overview
iSHARES® MSCI HONG KONG INDEX FUND
Performance as of February 28, 2009
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 28, 2009, the total return for the Fund was (36.00)%, while the total return for the Index was (35.78)%.
Average Annual Total Returns | ||||||||||||||||
Year Ended 2/28/09 | Five Years Ended 2/28/09 | Ten Years Ended 2/28/09 | ||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||
(46.16)% | (45.28)% | (45.97)% | 0.01% | (0.44)% | 0.54% | 3.74% | 3.51% | 4.37% | ||||||||
Cumulative Total Returns | ||||||||||||||||
Year Ended 2/28/09 | Five Years Ended 2/28/09 | Ten Years Ended 2/28/09 | ||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||
(46.16)% | (45.28)% | (45.97)% | 0.04% | (2.18)% | 2.72% | 44.41% | 41.16% | 53.37% |
“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 primary 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 2/28/09 | |||
Sector | Percentage of Net Assets | ||
Financial | 46.80 | % | |
Utilities | 20.13 | ||
Diversified | 13.45 | ||
Consumer Cyclical | 10.56 | ||
Industrial | 6.03 | ||
Communications | 1.34 | ||
Basic Materials | 1.04 | ||
Technology | 0.39 | ||
Short-Term and Other Net Assets | 0.26 | ||
TOTAL | 100.00 | % | |
TEN LARGEST FUND HOLDINGS As of 2/28/09 | |||
Security | Percentage of Net Assets | ||
CLP Holdings Ltd. | 10.10 | % | |
Cheung Kong (Holdings) Ltd. | 7.84 | ||
Sun Hung Kai Properties Ltd. | 7.49 | ||
Hutchison Whampoa Ltd. | 7.34 | ||
Hongkong Electric Holdings Ltd. | 5.89 | ||
Hang Seng Bank Ltd. | 5.80 | ||
Hong Kong Exchanges and Clearing Ltd. | 5.49 | ||
Hong Kong and China Gas Co. | 4.14 | ||
Esprit Holdings Ltd. | 3.93 | ||
Li & Fung Ltd. | 3.63 | ||
TOTAL | 61.65 | % | |
2 | 2009 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Fund Performance Overview
iSHARES® MSCI JAPAN SMALL CAP INDEX FUND
Performance as of February 28, 2009
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 six-month period ended February 28, 2009, the total return for the Fund was (25.23)%, while the total return for the Index was (25.48)%.
Average Annual Total Returns | Cumulative Total Returns | |||||||||||||||
Year Ended 2/28/09 | Inception to 2/28/09 | Inception to 2/28/09 | ||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||
(32.39)% | (34.21)% | (32.51)% | (29.02)% | (30.97)% | (29.03)% | (33.59)% | (35.78)% | (33.61)% |
Total returns for the period since inception are calculated from the inception date of the Fund (12/20/07). “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 primary 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 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 the Market 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 2/28/09 | |||
Sector | Percentage of Net Assets | ||
Industrial | 25.00 | % | |
Consumer Cyclical | 24.03 | ||
Financial | 19.54 | ||
Consumer Non-Cyclical | 14.66 | ||
Basic Materials | 9.07 | ||
Communications | 3.71 | ||
Technology | 2.59 | ||
Utilities | 0.86 | ||
Energy | 0.10 | ||
Short-Term and Other Net Assets | 0.44 | ||
TOTAL | 100.00 | % | |
TEN LARGEST FUND HOLDINGS As of 2/28/09 | |||
Security | Percentage of Net Assets | ||
Sagami Railway Co. Ltd. | 0.63 | % | |
Rinnai Corp. | 0.54 | ||
Awa Bank Ltd. (The) | 0.54 | ||
AirWater Inc. | 0.54 | ||
GSYuasa Corp. | 0.52 | ||
Rengo Co. Ltd. | 0.52 | ||
Shiga Bank Ltd. | 0.51 | ||
Daishi Bank Ltd. (The) | 0.50 | ||
Hyakugo Bank Ltd. (The) | 0.49 | ||
Nipro Corp. | 0.48 | ||
TOTAL | 5.27 | % | |
FUND PERFORMANCE OVERVIEWS | 3 |
Table of Contents
Fund Performance Overview
iSHARES® MSCI MALAYSIA INDEX FUND
Performance as of February 28, 2009
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 28, 2009, the total return for the Fund was (23.62)%, while the total return for the Index was (23.48)%.
Average Annual Total Returns | ||||||||||||||||
Year Ended 2/28/09 | Five Years Ended 2/28/09 | Ten Years Ended 2/28/09 | ||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||
(42.63)% | (41.32)% | (42.53)% | 3.01% | 2.68% | 3.56% | 11.75% | 9.51% | 11.44% | ||||||||
Cumulative Total Returns | ||||||||||||||||
Year Ended 2/28/09 | Five Years Ended 2/28/09 | Ten Years Ended 2/28/09 | ||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||
(42.63)% | (41.32)% | (42.53)% | 16.00% | 14.15% | 19.12% | 203.63% | 148.13% | 195.52% |
“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 primary 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 primary 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 2/28/09 | |||
Sector | Percentage of Net Assets | ||
Financial | 30.50 | % | |
Consumer Non-Cyclical | 17.94 | ||
Consumer Cyclical | 13.60 | ||
Industrial | 12.52 | ||
Utilities | 8.89 | ||
Communications | 7.39 | ||
Diversified | 7.11 | ||
Energy | 0.95 | ||
Basic Materials | 0.56 | ||
Short-Term and Other Net Assets | 0.54 | ||
TOTAL | 100.00 | % | |
TEN LARGEST FUND HOLDINGS As of 2/28/09 | |||
Security | Percentage of Net Assets | ||
Bumiputra-Commerce Holdings Bhd | 9.57 | % | |
Sime Darby Bhd | 7.11 | ||
IOI Corp. Bhd | 6.58 | ||
Malayan Banking Bhd | 6.53 | ||
MISC Bhd | 4.95 | ||
Public Bank Bhd | 4.83 | ||
Tenaga Nasional Bhd | 4.38 | ||
Genting Bhd | 4.02 | ||
DiGi.Com Bhd | 3.45 | ||
Resorts World Bhd | 3.38 | ||
TOTAL | 54.80 | % | |
4 | 2009 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Fund Performance Overview
iSHARES® MSCI PACIFIC EX-JAPAN INDEX FUND
Performance as of February 28, 2009
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 28, 2009, the total return for the Fund was (46.19)%, while the total return for the Index was (46.41)%.
Average Annual Total Returns | ||||||||||||||||
Year Ended 2/28/09 | Five Years Ended 2/28/09 | Inception to 2/28/09 | ||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||
(52.93)% | (52.47)% | (53.33)% | 0.48% | (0.09)% | 0.22% | 6.98% | 6.71% | 6.81% | ||||||||
Cumulative Total Returns | ||||||||||||||||
Year Ended 2/28/09 | Five Years Ended 2/28/09 | Inception to 2/28/09 | ||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||
(52.93)% | (52.47)% | (53.33)% | 2.43% | (0.46)% | 1.12% | 64.21% | 61.20% | 62.31% |
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 primary 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 after the Fund’s inception, for the period from inception to the first day of secondary market trading in shares of the Fund (10/26/01), the NAV of the Fund is used as a proxy for the Market 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 2/28/09 | |||
Sector | Percentage of Net Assets | ||
Financial | 41.90 | % | |
Basic Materials | 14.70 | ||
Consumer Non-Cyclical | 11.06 | ||
Industrial | 7.52 | ||
Utilities | 5.62 | ||
Communications | 4.87 | ||
Consumer Cyclical | 4.76 | ||
Energy | 4.08 | ||
Diversified | 4.00 | ||
Technology | 0.43 | ||
Short-Term and Other Net Assets | 1.06 | ||
TOTAL | 100.00 | % | |
TEN LARGEST FUND HOLDINGS As of 2/28/09 | |||
Security | Percentage of Net Assets | ||
BHP Billiton Ltd. (Australia) | 9.96 | % | |
Westpac Banking Corp. (Australia) | 4.86 | ||
Commonwealth Bank of Australia (Australia) | 4.52 | ||
National Australia Bank Ltd. (Australia) | 3.44 | ||
Woolworths Ltd. (Australia) | 3.29 | ||
Australia and New Zealand Banking Group Ltd. (Australia) | 2.80 | ||
CLP Holdings Ltd. (Hong Kong) | 2.44 | ||
CSL Ltd. (Australia) | 2.26 | ||
Westfield Group (Australia) | 2.20 | ||
Singapore Telecommunications | 2.04 | ||
TOTAL | 37.81 | % | |
FUND PERFORMANCE OVERVIEWS | 5 |
Table of Contents
Fund Performance Overview
iSHARES® MSCI SINGAPORE INDEX FUND
Performance as of February 28, 2009
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 28, 2009, the total return for the Fund was (47.13)%, while the total return for the Index was (47.37)%.
Average Annual Total Returns | ||||||||||||||||
Year Ended 2/28/09 | Five Years Ended 2/28/09 | Ten Years Ended 2/28/09 | ||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||
(51.30)% | (50.40)% | (51.43)% | 1.99% | 1.51% | 1.83% | 3.05% | 2.99% | 2.83% | ||||||||
Cumulative Total Returns | ||||||||||||||||
Year Ended 2/28/09 | Five Years Ended 2/28/09 | Ten Years Ended 2/28/09 | ||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||
(51.30)% | (50.40)% | (51.43)% | 10.35% | 7.77% | 9.50% | 35.08% | 34.28% | 32.18% |
“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 primary 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 2/28/09 | |||
Sector | Percentage of Net Assets | ||
Financial | 47.21 | % | |
Communications | 20.94 | ||
Industrial | 9.87 | ||
Consumer Non-Cyclical | 8.23 | ||
Diversified | 6.57 | ||
Consumer Cyclical | 6.01 | ||
Short-Term and Other Net Assets | 1.17 | ||
TOTAL | 100.00 | % | |
TEN LARGEST FUND HOLDINGS As of 2/28/09 | |||
Security | Percentage of Net Assets | ||
Singapore Telecommunications Ltd. | 17.00 | % | |
DBS Group Holdings Ltd. | 11.96 | ||
United Overseas Bank Ltd. | 11.13 | ||
Oversea-Chinese Banking Corp. | 8.99 | ||
Keppel Corp. Ltd. | 5.01 | ||
Singapore Airlines Ltd. | 4.79 | ||
Singapore Press Holdings Ltd. | 3.94 | ||
Singapore Exchange Ltd. | 3.54 | ||
CapitaLand Ltd. | 3.09 | ||
Singapore Technologies Engineering Ltd. | 3.09 | ||
TOTAL | 72.54 | % | |
6 | 2009 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Fund Performance Overview
iSHARES® MSCI SOUTH KOREA INDEX FUND
Performance as of February 28, 2009
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 28, 2009, the total return for the Fund was (48.26)%, while the total return for the Index was (48.25)%.
Average Annual Total Returns | ||||||||||||||||
Year Ended 2/28/09 | Five Years Ended 2/28/09 | Inception to 2/28/09 | ||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||
(61.25)% | (61.22)% | (61.21)% | (3.17)% | (3.99)% | (2.57)% | 1.74% | 1.38% | 2.23% | ||||||||
Cumulative Total Returns | ||||||||||||||||
Year Ended 2/28/09 | Five Years Ended 2/28/09 | Inception to 2/28/09 | ||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||
(61.25)% | (61.22)% | (61.21)% | (14.89)% | (18.43)% | (12.19)% | 16.40% | 12.85% | 21.44% |
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 primary 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 after the Fund’s inception, for the period from inception to the first day of secondary market trading in shares of the Fund (5/12/00), the NAV of the Fund is used as a proxy for the Market 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 2/28/09 | |||
Sector | Percentage of Net Assets | ||
Technology | 21.69 | % | |
Industrial | 18.29 | ||
Financial | 14.44 | ||
Consumer Cyclical | 12.17 | ||
Basic Materials | 11.13 | ||
Communications | 7.42 | ||
Consumer Non-Cyclical | 5.74 | ||
Energy | 3.39 | ||
Utilities | 2.47 | ||
Diversified | 1.78 | ||
Short-Term and Other Net Assets | 1.48 | ||
TOTAL | 100.00 | % | |
TEN LARGEST FUND HOLDINGS As of 2/28/09 | |||
Security | Percentage of Net Assets | ||
Samsung Electronics Co. Ltd. | 18.23 | % | |
POSCO | 6.61 | ||
KB Financial Group Inc. | 3.41 | ||
KT&G Corp. | 3.04 | ||
Shinhan Financial Group Co. Ltd. | 2.68 | ||
Hyundai Heavy Industries Co. Ltd. | 2.59 | ||
Hyundai Motor Co. Ltd. | 2.58 | ||
LG Electronics Inc. | 2.34 | ||
Korea Electric Power Corp. | 2.13 | ||
Samsung Fire & Marine Insurance Co. Ltd. | 2.01 | ||
TOTAL | 45.62 | % | |
FUND PERFORMANCE OVERVIEWS | 7 |
Table of Contents
Fund Performance Overview
iSHARES® MSCI TAIWAN INDEX FUND
Performance as of February 28, 2009
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 28, 2009, the total return for the Fund was (42.20)%, while the total return for the Index was (42.27)%.
Average Annual Total Returns | ||||||||||||||||
Year Ended 2/28/09 | Five Years Ended 2/28/09 | Inception to 2/28/09 | ||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||
(51.35)% | (51.81)% | (51.27)% | (8.40)% | (9.05)% | (7.76)% | (9.13)% | (9.40)% | (8.35)% | ||||||||
Cumulative Total Returns | ||||||||||||||||
Year Ended 2/28/09 | Five Years Ended 2/28/09 | Inception to 2/28/09 | ||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||
(51.35)% | (51.81)% | (51.27)% | (35.50)% | (37.78)% | (33.21)% | (56.53)% | (57.61)% | (53.15)% |
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 primary 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 after the Fund’s inception, for the period from inception to the first day of secondary market trading in shares of the Fund (6/23/00), the NAV of the Fund is used as a proxy for the Market 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 2/28/09 | |||
Sector | Percentage of Net Assets | ||
Technology | 39.44 | % | |
Industrial | 20.62 | ||
Financial | 14.65 | ||
Basic Materials | 11.85 | ||
Communications | 7.09 | ||
Consumer Cyclical | 3.56 | ||
Consumer Non-Cyclical | 1.42 | ||
Energy | 1.26 | ||
Short-Term and Other Net Assets | 0.11 | ||
TOTAL | 100.00 | % | |
TEN LARGEST FUND HOLDINGS As of 2/28/09 | |||
Security | Percentage of Net Assets | ||
Taiwan Semiconductor Manufacturing Co. Ltd. | 14.89 | % | |
Hon Hai Precision Industry Co. Ltd. | 6.56 | ||
Chunghwa Telecom Co. Ltd. | 4.85 | ||
MediaTek Inc. | 4.47 | ||
HTC Corp. | 3.94 | ||
China Steel Corp. | 3.38 | ||
AU Optronics Corp. | 3.03 | ||
Formosa Plastics Corp. | 3.02 | ||
Nan Ya Plastic Corp. | 2.66 | ||
Cathay Financial Holding Co. Ltd. | 2.64 | ||
TOTAL | 49.44 | % | |
8 | 2009 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Fund Performance Overview
iSHARES® MSCI THAILAND INVESTABLE MARKET INDEX FUND
Performance as of February 28, 2009
The iShares MSCI Thailand Investable Market 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 Thailand Investable Market IndexSM (the “Index”). The Index is a free float adjusted market capitalization index designed to measure broad based equity market performance in Thailand. 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 28, 2009, the total return for the Fund was (42.20)%, while the total return for the Index was (42.14)%.
Cumulative Total Returns | ||||
Inception to 2/28/09 | ||||
NAV | MARKET | INDEX | ||
(55.14)% | (55.29)% | (55.11)% |
“Cumulative Total Returns” represent the total change in value of an investment over the period(s) indicated and are calculated from an inception date of 3/26/08.
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 primary 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 after the Fund’s inception, for the period from inception to the first day of secondary market trading in shares of the Fund (3/28/08), the NAV of the Fund is used as a proxy for the Market 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 2/28/09 | |||
Sector | Percentage of Net Assets | ||
Financial | 31.42 | % | |
Energy | 28.57 | ||
Communications | 11.95 | ||
Industrial | 7.40 | ||
Consumer Cyclical | 7.11 | ||
Basic Materials | 4.64 | ||
Consumer Non-Cyclical | 4.26 | ||
Utilities | 3.91 | ||
Technology | 0.24 | ||
Short-Term and Other Net Assets | 0.50 | ||
TOTAL | 100.00 | % | |
TEN LARGEST FUND HOLDINGS As of 2/28/09 | |||
Security | Percentage of Net Assets | ||
PTT PCL NVDR | 12.24 | % | |
PTT Exploration & Production PCL NVDR | 10.07 | ||
Bangkok Bank PCL NVDR | 9.08 | ||
Advanced Info Service PCL NVDR | 6.56 | ||
Kasikornbank PCL NVDR | 5.75 | ||
Siam Commercial Bank PCL NVDR | 5.59 | ||
Siam Cement PCL NVDR | 3.63 | ||
Banpu PCL NVDR | 3.46 | ||
Bank of Ayudhya PCL NVDR | 3.25 | ||
CP All PCL NVDR | 2.98 | ||
TOTAL | 62.61 | % | |
FUND PERFORMANCE OVERVIEWS | 9 |
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, 2008 to February 28, 2009.
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 | Ending Account Value (2/28/09) | Annualized Expense Ratio | Expenses Paid During Perioda (9/1/08 to 2/28/09) | |||||
Australia | |||||||||
Actual | $1,000.00 | $ 507.50 | 0.55 | % | $2.06 | ||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,022.10 | 0.55 | 2.76 | |||||
Hong Kong | |||||||||
Actual | 1,000.00 | 640.00 | 0.56 | 2.28 | |||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,022.00 | 0.56 | 2.81 | |||||
Japan Small Cap | |||||||||
Actual | 1,000.00 | 747.70 | 0.56 | 2.43 | |||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,022.00 | 0.56 | 2.81 | |||||
Malaysia | |||||||||
Actual | 1,000.00 | 763.80 | 0.56 | 2.45 | |||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,022.00 | 0.56 | 2.81 |
10 | 2009 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Shareholder Expenses (Unaudited) (Continued)
iSHARES®, INC.
iShares MSCI Index Fund | Beginning Account Value (9/1/08) | Ending Account Value | Annualized Expense Ratio | Expenses Paid During Perioda | |||||
Pacific ex-Japan | |||||||||
Actual | $1,000.00 | $ 538.10 | 0.50 | % | $1.91 | ||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,022.30 | 0.50 | 2.51 | |||||
Singapore | |||||||||
Actual | 1,000.00 | 528.70 | 0.56 | 2.12 | |||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,022.00 | 0.56 | 2.81 | |||||
South Korea | |||||||||
Actual | 1,000.00 | 517.40 | 0.67 | 2.52 | |||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,021.50 | 0.67 | 3.36 | |||||
Taiwan | |||||||||
Actual | 1,000.00 | 578.00 | 0.76 | 2.97 | |||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,021.00 | 0.76 | 3.81 | |||||
Thailand Investable Market | |||||||||
Actual | 1,000.00 | 578.00 | 0.67 | 2.62 | |||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,021.50 | 0.67 | 3.36 |
a | Expenses are calculated using each Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (181 days) and divided by the number of days in the year (365 days). |
SHAREHOLDER EXPENSES | 11 |
Table of Contents
Schedule of Investments (Unaudited)
iSHARES® MSCI AUSTRALIA INDEX FUND
February 28, 2009
Security | Shares | Value | |||
COMMON STOCKS – 98.60% | |||||
AIRLINES – 0.28% | |||||
Qantas Airways Ltd. | 1,197,190 | $ | 1,196,951 | ||
1,196,951 | |||||
APPAREL – 0.18% | |||||
Billabong International Ltd. | 176,700 | 792,451 | |||
792,451 | |||||
BANKS – 25.81% | |||||
Australia and New Zealand Banking Group Ltd. | 2,223,950 | 18,910,455 | |||
Bendigo and Adelaide | 313,880 | 1,289,358 | |||
Commonwealth Bank | 1,599,800 | 30,456,560 | |||
National Australia Bank Ltd. | 2,033,760 | 23,230,904 | |||
Suncorp-Metway Ltd. | 1,212,374 | 4,074,002 | |||
Suncorp-Metway Ltd. Newa | 209,639 | 668,300 | |||
Westpac Banking Corp. | 3,040,000 | 32,802,137 | |||
111,431,716 | |||||
BEVERAGES – 2.91% | |||||
Coca-Cola Amatil Ltd. | 602,300 | 3,447,623 | |||
Foster’s Group Ltd. | 2,090,190 | 7,357,601 | |||
Lion Nathan Ltd. | 321,100 | 1,755,953 | |||
12,561,177 | |||||
BIOTECHNOLOGY – 0.70% | |||||
Sonic Healthcare Ltd. | 395,010 | 3,028,226 | |||
3,028,226 | |||||
BUILDING MATERIALS – 0.70% | |||||
Boral Ltd. | 636,310 | 1,150,414 | |||
CSR Ltd. | 1,405,240 | 888,760 | |||
James Hardie Industries NV | 467,400 | 991,347 | |||
3,030,521 | |||||
CHEMICALS – 0.83% | |||||
Incitec Pivot Ltd. | 1,833,690 | 2,553,767 | |||
Nufarm Ltd. | 155,610 | 1,018,967 | |||
3,572,734 | |||||
COMMERCIAL SERVICES – 2.30% | |||||
Brambles Ltd. | 1,507,840 | 4,450,370 | |||
Macquarie | 2,605,280 | 1,714,315 | |||
Transurban Group | 1,313,470 | 3,750,823 | |||
9,915,508 |
Security | Shares | Value | |||
COMPUTERS – 0.54% | |||||
Computershare Ltd. | 519,460 | $ | 2,339,592 | ||
2,339,592 | |||||
DIVERSIFIED FINANCIAL SERVICES – 1.66% | |||||
ASX Ltd. | 186,770 | 3,154,768 | |||
Macquarie Group Ltd.b | 307,230 | 3,332,731 | |||
Perpetual Ltd. | 41,420 | 677,935 | |||
7,165,434 | |||||
ELECTRIC – 0.94% | |||||
AGL Energy Ltd. | 483,050 | 4,076,560 | |||
4,076,560 | |||||
ELECTRIC - DISTRIBUTION – 0.16% | |||||
SP AusNet | 1,050,890 | 671,361 | |||
671,361 | |||||
ENGINEERING & CONSTRUCTION – 0.84% | |||||
Leighton Holdings Ltd.b | 160,360 | 1,950,572 | |||
WorleyParsons Ltd. | 163,780 | 1,668,862 | |||
3,619,434 | |||||
ENTERTAINMENT – 1.31% | |||||
Aristocrat Leisure Ltd. | 346,560 | 821,393 | |||
Tabcorp Holdings Ltd. | 635,740 | 2,591,189 | |||
Tatts Group Ltd. | 1,231,200 | 2,241,674 | |||
5,654,256 | |||||
FOOD – 5.92% | |||||
Goodman Fielder Ltd. | 1,442,670 | 1,064,505 | |||
Metcash Ltd. | 841,130 | 2,246,148 | |||
Woolworths Ltd. | 1,331,710 | 22,238,943 | |||
25,549,596 | |||||
HEALTH CARE - PRODUCTS – 0.49% | |||||
Cochlear Ltd. | 61,180 | 2,091,039 | |||
2,091,039 | |||||
INSURANCE – 6.09% | |||||
AMP Ltd. | 2,116,790 | 6,531,664 | |||
AXA Asia Pacific Holdings Ltd. | 932,520 | 1,834,880 | |||
Insurance Australia Group Ltd. | 2,214,910 | 4,867,584 | |||
QBE Insurance Group Ltd. | 1,073,690 | 13,073,766 | |||
26,307,894 |
12 | 2009 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI AUSTRALIA INDEX FUND
February 28, 2009
Security | Shares | Value | |||
IRON & STEEL – 0.54% | |||||
BlueScope Steel Ltd. | 953,230 | $ | 1,358,005 | ||
OneSteel Ltd. | 908,960 | 987,171 | |||
2,345,176 | |||||
LODGING – 0.39% | |||||
Crown Ltd.b | 513,016 | 1,700,972 | |||
1,700,972 | |||||
MANUFACTURING – 4.02% | |||||
Orica Ltd. | 384,370 | 3,263,423 | |||
Wesfarmers Ltd. | 1,095,889 | 12,321,913 | |||
Wesfarmers Ltd. | 158,080 | 1,767,315 | |||
17,352,651 | |||||
MEDIA – 0.21% | |||||
Fairfax Media Ltd.b | 1,488,840 | 884,565 | |||
884,565 | |||||
METAL FABRICATE & HARDWARE – 0.43% | |||||
Sims Metal Management Ltd. | 167,580 | 1,867,100 | |||
1,867,100 | |||||
MINING – 21.28% | |||||
Alumina Ltd. | 1,578,140 | 1,214,875 | |||
BHP Billiton Ltd. | 3,649,140 | 67,210,027 | |||
Fortescue Metals Group Ltd.a,b | 1,382,820 | 2,341,049 | |||
Newcrest Mining Ltd. | 520,980 | 10,311,014 | |||
OZ Minerals Ltd. | 3,504,384 | 1,410,429 | |||
Rio Tinto Ltd.b | 310,460 | 9,371,441 | |||
91,858,835 | |||||
OIL & GAS – 6.40% | |||||
Caltex Australia Ltd. | 144,400 | 867,150 | |||
Origin Energy Ltd. | 960,640 | 8,346,386 | |||
Santos Ltd. | 636,120 | 6,286,780 | |||
Woodside Petroleum Ltd. | 530,100 | 12,123,827 | |||
27,624,143 | |||||
PACKAGING & CONTAINERS – 0.59% | |||||
Amcor Ltd. | 911,810 | 2,563,043 | |||
2,563,043 | |||||
PHARMACEUTICALS – 3.55% | |||||
CSL Ltd. | 653,600 | 15,307,469 | |||
15,307,469 |
Security | Shares | Value | |||
REAL ESTATE – 5.58% | |||||
Dexus Property Group | 3,810,640 | $ | 1,704,099 | ||
Goodman Group | 2,879,450 | 478,280 | |||
GPT Group (The) | 4,843,860 | 1,454,415 | |||
Lend Lease Corp. Ltd. | 474,620 | 1,637,339 | |||
Mirvac Group | 1,745,910 | 948,068 | |||
Stockland Corp. Ltd. | 1,692,330 | 2,940,714 | |||
Westfield Group | 2,195,070 | 14,934,713 | |||
24,097,628 | |||||
REAL ESTATE INVESTMENT TRUSTS – 0.55% | |||||
CFS Retail Property Trustb | 1,875,490 | 2,036,867 | |||
Macquarie Office Trust | 4,527,489 | 347,086 | |||
2,383,953 | |||||
RETAIL – 0.16% | |||||
Harvey Norman Holdings Ltd.b | 566,200 | 690,879 | |||
690,879 | |||||
TELECOMMUNICATIONS – 2.51% | |||||
Telstra Corp. Ltd. | 4,774,890 | 10,829,057 | |||
10,829,057 | |||||
TRANSPORTATION – 0.73% | |||||
Macquarie Airports | 740,050 | 732,810 | |||
Toll Holdings Ltd. | 710,220 | 2,427,424 | |||
3,160,234 | |||||
TOTAL COMMON STOCKS | 425,670,155 | ||||
SHORT-TERM INVESTMENTS – 3.39% | |||||
MONEY MARKET FUNDS – 3.39% | |||||
Barclays Global Investors Funds | 12,208,208 | 12,208,208 | |||
Barclays Global Investors Funds | 2,040,855 | 2,040,855 | |||
Barclays Global Investors Funds | 388,782 | 388,782 | |||
14,637,845 | |||||
SCHEDULESOF INVESTMENTS | 13 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI AUSTRALIA INDEX FUND
February 28, 2009
Value | ||||||
TOTAL SHORT-TERM INVESTMENTS |
| |||||
(Cost: $14,637,845) | $ | 14,637,845 | ||||
TOTAL INVESTMENTS IN | ||||||
(Cost: $989,162,316) | 440,308,000 | |||||
Other Assets, Less Liabilities – (1.99)% | (8,573,034 | ) | ||||
NET ASSETS – 100.00% | $ | 431,734,966 | ||||
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 | All or a portion of this security represents an investment of securities lending collateral. See Note 5. |
See notes to financial statements.
14 | 2009 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited)
iSHARES® MSCI HONG KONG INDEX FUND
February 28, 2009
Security | Shares | Value | |||
COMMON STOCKS – 99.74% | |||||
AIRLINES – 0.86% | |||||
Cathay Pacific Airways Ltd.a | 8,670,000 | $ | 9,078,183 | ||
9,078,183 | |||||
APPAREL – 0.89% | |||||
Yue Yuen Industrial | 5,058,500 | 9,471,356 | |||
9,471,356 | |||||
BANKS – 11.10% | |||||
Bank of East Asia Ltd. | 10,115,100 | 21,208,723 | |||
BOC Hong Kong | 26,732,500 | 26,956,911 | |||
Hang Seng Bank Ltd.a | 5,491,000 | 61,601,955 | |||
Wing Hang Bank Ltd.a | 1,445,000 | 8,114,837 | |||
117,882,426 | |||||
CHEMICALS – 0.67% | |||||
Kingboard Chemical | 4,335,000 | 7,155,218 | |||
7,155,218 | |||||
DISTRIBUTION & WHOLESALE – 7.56% | |||||
Esprit Holdings Ltd. | 7,658,500 | 41,724,797 | |||
Li & Fung Ltd.a | 17,341,000 | 38,506,237 | |||
80,231,034 | |||||
DIVERSIFIED FINANCIAL SERVICES – 5.49% | |||||
Hong Kong Exchanges and | 7,225,000 | 58,275,896 | |||
58,275,896 | |||||
ELECTRIC – 15.99% | |||||
CLP Holdings Ltd. | 14,450,200 | 107,236,587 | |||
Hongkong Electric | 10,115,000 | 62,608,157 | |||
169,844,744 | |||||
ENGINEERING & CONSTRUCTION – 3.01% | |||||
Cheung Kong Infrastructure Holdings Ltd.a | 2,890,000 | 11,012,328 | |||
Hong Kong Aircraft Engineering Co. Ltd.a | 578,000 | 5,213,620 | |||
New World Development | 17,340,800 | 15,764,567 | |||
31,990,515 |
Security | Shares | Value | |||
GAS – 4.14% | |||||
Hong Kong and China Gas Co. Ltd. (The)a | 28,900,712 | $ | 43,975,861 | ||
43,975,861 | |||||
HOLDING COMPANIES - DIVERSIFIED – 13.45% | |||||
Hutchison Whampoa Ltd. | 14,742,800 | 77,944,887 | |||
NWS Holdings Ltd. | 5,780,000 | 7,423,539 | |||
Swire Pacific Ltd. Class A | 5,780,000 | 35,925,157 | |||
Wharf Holdings Ltd. (The) | 10,115,500 | 21,496,530 | |||
142,790,113 | |||||
LODGING – 0.88% | |||||
Shangri-La Asia Ltd.a | 8,672,000 | 9,337,477 | |||
9,337,477 | |||||
MEDIA – 0.65% | |||||
Television Broadcasts Ltd. | 1,995,000 | 6,945,931 | |||
6,945,931 | |||||
MINING – 0.37% | |||||
Mongolia Energy Corp. Ltd.b | 14,450,000 | 3,931,643 | |||
3,931,643 | |||||
REAL ESTATE – 27.34% | |||||
Cheung Kong (Holdings) Ltd. | 10,115,000 | 83,281,893 | |||
Chinese Estates | 7,225,000 | 8,254,587 | |||
Hang Lung Development | 6,239,000 | 16,894,995 | |||
Hang Lung Properties Ltd. | 14,950,000 | 28,878,645 | |||
Henderson Land Development Co. Ltd. | 7,775,332 | 26,269,030 | |||
Hopewell Holdings Ltd.a | 4,335,000 | 12,298,031 | |||
Hysan Development Co. Ltd. | 4,335,000 | 6,640,937 | |||
Kerry Properties Ltd. | 4,335,000 | 8,250,861 | |||
Sino Land Co. Ltd. | 11,560,000 | 9,078,183 | |||
Sun Hung Kai Properties Ltd. | 10,115,000 | 79,564,533 | |||
Wheelock and Co. Ltd. | 6,452,000 | 10,899,070 | |||
290,310,765 | |||||
REAL ESTATE INVESTMENT TRUSTS – 2.87% | |||||
Link REIT (The)a | 15,895,000 | 30,458,123 | |||
30,458,123 |
SCHEDULESOF INVESTMENTS | 15 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI HONG KONG INDEX FUND
February 28, 2009
Security | Shares | Value | |||
RETAIL – 0.37% | |||||
Lifestyle International | 5,057,500 | $ | 3,906,488 | ||
3,906,488 | |||||
SEMICONDUCTORS – 0.39% | |||||
ASM Pacific Technology Ltd.a | 1,445,000 | 4,136,610 | |||
4,136,610 | |||||
TELECOMMUNICATIONS – 0.69% | |||||
Foxconn International | 14,450,000 | 4,285,677 | |||
Hutchison Telecommunications International Ltd.a | 13,005,000 | 3,052,148 | |||
7,337,825 | |||||
TRANSPORTATION – 3.02% | |||||
MTR Corp. Ltd.a | 10,115,083 | 22,669,556 | |||
Orient Overseas | 1,445,200 | 3,354,473 | |||
Pacific Basin Shipping Ltd. | 13,005,000 | 6,087,525 | |||
32,111,554 | |||||
TOTAL COMMON STOCKS | 1,059,171,762 | ||||
SHORT-TERM INVESTMENTS – 12.08% | |||||
MONEY MARKET FUNDS – 12.08% | |||||
Barclays Global Investors Funds | 109,857,216 | 109,857,216 | |||
Barclays Global Investors Funds | 18,364,907 | 18,364,907 | |||
Barclays Global Investors Funds | 60,424 | 60,424 | |||
128,282,547 | |||||
Value | ||||||
TOTAL SHORT-TERM INVESTMENTS |
| |||||
(Cost: $128,282,547) | $ | 128,282,547 | ||||
TOTAL INVESTMENTS IN | ||||||
(Cost: $2,090,089,983) | 1,187,454,309 | |||||
Other Assets, Less | (125,563,960 | ) | ||||
NET ASSETS – 100.00% | $ | 1,061,890,349 | ||||
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 | All or a portion of this security represents an investment of securities lending collateral. See Note 5. |
See notes to financial statements.
16 | 2009 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited)
iSHARES® MSCI JAPAN SMALL CAP INDEX FUND
February 28, 2009
Security | Shares | Value | |||
COMMON STOCKS – 99.56% | |||||
ADVERTISING – 0.42% | |||||
Asatsu-DK Inc. | 2,800 | $ | 52,998 | ||
Moshi Moshi Hotline Inc. | 2,100 | 41,294 | |||
94,292 | |||||
AEROSPACE & DEFENSE – 0.12% | |||||
Japan Aviation Electronics | 7,000 | 27,186 | |||
27,186 | |||||
AGRICULTURE – 0.56% | |||||
Hokuto Corp. | 2,100 | 41,187 | |||
Sakata Seed Corp. | 6,300 | 83,446 | |||
124,633 | |||||
APPAREL – 1.28% | |||||
Descente Ltd. | 7,000 | 24,682 | |||
Gunze Ltd. | 14,000 | 43,640 | |||
Japan Wool Textile Co. Ltd. (The) | 7,000 | 39,276 | |||
Katakura Industries Co. Ltd. | 2,800 | 23,723 | |||
Sanei-International Co. Ltd. | 1,400 | 7,941 | |||
Sanyo Shokai Ltd.a | 7,000 | 21,391 | |||
Tokyo Style Co. Ltd. | 7,000 | 39,992 | |||
Wacoal Holdings Corp. | 7,000 | 85,492 | |||
286,137 | |||||
AUTO MANUFACTURERS – 0.68% | |||||
Kanto Auto Works Ltd. | 4,200 | 35,971 | |||
Nissan Shatai Co. Ltd. | 7,000 | 40,707 | |||
Shinmaywa Industries Ltd. | 14,000 | 28,760 | |||
Toyota Auto Body Co. Ltd. | 3,500 | 47,790 | |||
153,228 | |||||
AUTO PARTS & EQUIPMENT – 2.61% | |||||
Aisan Industry Co. Ltd. | 2,100 | 8,692 | |||
Akebono Brake Industry Co. Ltd.a | 5,600 | 28,502 | |||
Calsonic Kansei Corp. | 14,000 | 11,590 | |||
Exedy Corp. | 2,800 | 36,372 | |||
FCC Co. Ltd. | 3,500 | 36,164 | |||
Futaba Industrial Co. Ltd. | 4,200 | 12,105 | |||
Kayaba Industry Co. Ltd. | 14,000 | 18,744 | |||
Keihin Corp. | 3,500 | 33,911 | |||
Koito Manufacturing Co. Ltd. | 7,000 | 43,998 | |||
Musashi Seimitsu Industry Co. Ltd. | 2,100 | 20,604 | |||
Nifco Inc. | 3,500 | 32,158 |
Security | Shares | Value | |||
Nissin Kogyo Co. Ltd. | 3,500 | $ | 32,480 | ||
Press Kogyo Co. Ltd. | 7,000 | 5,652 | |||
Riken Corp. | 14,000 | 26,613 | |||
Sanden Corp. | 14,000 | 17,027 | |||
Showa Corp. | 5,600 | 16,598 | |||
T.RAD Co. Ltd. | 7,000 | 7,297 | |||
Takata Corp. | 2,800 | 17,714 | |||
Topre Corp. | 5,600 | 40,063 | |||
Toyo Tire & Rubber Co. Ltd. | 14,000 | 16,312 | |||
TS Tech Co. Ltd. | 4,200 | 27,644 | |||
Unipres Corp. | 2,800 | 20,089 | |||
Yokohama Rubber Co. Ltd. (The) | 21,000 | 72,543 | |||
582,872 | |||||
BANKS – 13.09% | |||||
Aichi Bank Ltd. (The) | 700 | 47,718 | |||
Akita Bank Ltd. (The) | 21,000 | 75,119 | |||
Aomori Bank Ltd. (The) | 7,000 | 26,256 | |||
Awa Bank Ltd. (The) | 21,000 | 120,405 | |||
Bank of Ikeda Ltd. (The)b | 1,400 | 54,801 | |||
Bank of Iwate Ltd. (The) | 1,400 | 76,836 | |||
Bank of Nagoya Ltd. (The) | 14,000 | 74,403 | |||
Bank of Okinawa Ltd. (The) | 2,100 | 74,046 | |||
Bank of Saga Ltd. (The) | 14,000 | 45,501 | |||
Bank of the Ryukyus Ltd. | 3,500 | 29,582 | |||
Chiba Kogyo Bank Ltd. (The)b | 3,500 | 35,091 | |||
Chukyo Bank Ltd. (The) | 14,000 | 45,787 | |||
Daishi Bank Ltd. (The) | 28,000 | 111,319 | |||
Ehime Bank Ltd. (The) | 14,000 | 41,494 | |||
Eighteenth Bank Ltd. (The) | 14,000 | 47,074 | |||
Fukui Bank Ltd. (The) | 28,000 | 91,287 | |||
Higashi-Nippon Bank Ltd. (The) | 14,000 | 38,060 | |||
Higo Bank Ltd. (The) | 14,000 | 79,268 | |||
Hokkoku Bank Ltd. (The) | 21,000 | 68,251 | |||
Hokuetsu Bank Ltd. (The) | 21,000 | 35,628 | |||
Hyakugo Bank Ltd. (The) | 21,000 | 110,103 | |||
Hyakujushi Bank Ltd. (The) | 21,000 | 99,586 | |||
Juroku Bank Ltd. (The) | 28,000 | 91,001 | |||
Kagoshima Bank Ltd. (The) | 14,000 | 99,443 | |||
Kansai Urban Banking Corp. | 14,000 | 20,747 | |||
Kanto Tsukuba Bank Ltd. (The) | 4,900 | 9,916 | |||
Keiyo Bank Ltd. (The) | 21,000 | 97,654 | |||
Kiyo Holdings Inc. | 56,000 | 66,391 |
SCHEDULESOF INVESTMENTS | 17 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI JAPAN SMALL CAP INDEX FUND
February 28, 2009
Security | Shares | Value | |||
Michinoku Bank Ltd. (The) | 14,000 | $ | 30,048 | ||
Mie Bank Ltd. (The) | 7,000 | 21,248 | |||
Minato Bank Ltd. (The) | 14,000 | 21,176 | |||
Miyazaki Bank Ltd. (The) | 14,000 | 51,653 | |||
Musashino Bank Ltd. (The) | 2,800 | 83,275 | |||
Nanto Bank Ltd. (The) | 14,000 | 73,688 | |||
Ogaki Kyoritsu Bank Ltd. (The) | 21,000 | 91,001 | |||
Oita Bank Ltd. (The) | 14,000 | 76,263 | |||
San-in Godo Bank Ltd. (The) | 14,000 | 100,158 | |||
Shiga Bank Ltd. | 21,000 | 114,395 | |||
Shikoku Bank Ltd. (The) | 14,000 | 58,092 | |||
Shonai Bank Ltd. (The) | 7,000 | 11,447 | |||
Tochigi Bank Ltd. (The) | 7,000 | 35,127 | |||
Toho Bank Ltd. (The) | 21,000 | 81,987 | |||
Tokushima Bank Ltd. (The) | 7,000 | 33,982 | |||
Tokyo Tomin Bank Ltd. (The) | 2,800 | 41,437 | |||
Yachiyo Bank Ltd. (The) | 1,400 | 47,790 | |||
Yamagata Bank Ltd. (The) | 14,000 | 70,540 | |||
Yamanashi Chuo Bank Ltd. (The) | 14,000 | 72,973 | |||
2,929,047 | |||||
BEVERAGES – 0.67% | |||||
Kagome Co. Ltd. | 6,300 | 93,040 | |||
Takara Holdings Inc. | 14,000 | 57,376 | |||
150,416 | |||||
BIOTECHNOLOGY – 0.11% | |||||
AnGes MG Inc.b | 14 | 11,590 | |||
Takara Bio Inc.b | 7 | 12,684 | |||
24,274 | |||||
BUILDING MATERIALS – 1.98% | |||||
Central Glass Co. Ltd. | 21,000 | 55,159 | |||
Chofu Seisakusho Co. Ltd. | 2,100 | 41,680 | |||
Nichias Corp. | 7,000 | 14,451 | |||
Rinnai Corp. | 3,500 | 121,979 | |||
Sanwa Holdings Corp. | 21,000 | 53,012 | |||
Sumitomo Osaka Cement Co. Ltd. | 35,000 | 75,834 | |||
Takara Standard Co. Ltd. | 14,000 | 80,413 | |||
442,528 | |||||
CHEMICALS – 5.54% | |||||
Adeka Corp. | 8,400 | 45,758 | |||
Aica Kogyo Co. Ltd. | 7,000 | 60,167 | |||
AirWater Inc. | 14,000 | 120,047 | |||
C. Uyemura & Co. Ltd. | 700 | 10,302 |
Security | Shares | Value | |||
Chugoku Marine Paints Ltd. | 7,000 | $ | 45,930 | ||
Dainichiseika Color & Chemicals Manufacturing Co. Ltd. | 7,000 | 15,668 | |||
Earth Chemical Co. Ltd. | 1,400 | 37,989 | |||
Fujimi Inc. | 2,100 | 25,133 | |||
Ishihara Sangyo Kaisha Ltd.b | 35,000 | 20,389 | |||
Lintec Corp. | 4,200 | 47,604 | |||
Nihon Nohyaku Co. Ltd.a | 7,000 | 48,362 | |||
Nihon Parkerizing Co. Ltd. | 7,000 | 62,241 | |||
Nippon Carbon Co. Ltd. | 14,000 | 23,895 | |||
Nippon Kayaku Co. Ltd. | 14,000 | 62,957 | |||
Nippon Paint Co. Ltd. | 21,000 | 76,621 | |||
Nippon Shokubai Co. Ltd. | 7,000 | 43,426 | |||
Nippon Soda Co. Ltd. | 14,000 | 40,350 | |||
Nippon Synthetic Chemical Industry Co. Ltd. (The) | 7,000 | 15,167 | |||
NOF Corp. | 14,000 | 48,219 | |||
Sakai Chemical Industry Co. Ltd. | 7,000 | 19,746 | |||
Sumitomo Bakelite Co. Ltd. | 21,000 | 86,065 | |||
Taiyo Ink Manufacturing Co. Ltd. | 1,400 | 25,798 | |||
Takasago International Corp. | 7,000 | 34,340 | |||
Toagosei Co. Ltd. | 21,000 | 47,647 | |||
Tokai Carbon Co. Ltd. | 14,000 | 44,785 | |||
Tokyo Ohka Kogyo Co. Ltd. | 4,200 | 55,073 | |||
Toyo Ink Manufacturing Co. Ltd. | 21,000 | 37,989 | |||
Zeon Corp. | 14,000 | 37,488 | |||
1,239,156 | |||||
COMMERCIAL SERVICES – 2.11% | |||||
Aeon Delight Co. Ltd. | 1,400 | 18,114 | |||
Daiseki Co. Ltd. | 2,860 | 40,571 | |||
Meitec Corp. | 3,500 | 47,826 | |||
Nichii Gakkan Co. | 2,100 | 32,237 | |||
Nishio Rent All Co. Ltd. | 2,100 | 11,075 | |||
Nissha Printing Co. Ltd. | 2,100 | 52,798 | |||
Park 24 Co. Ltd. | 9,100 | 62,592 | |||
Pasona Group Inc. | 28 | 14,766 | |||
Sohgo Security Services Co. Ltd. | 5,600 | 46,016 | |||
So-net M3 Inc. | 7 | 23,251 | |||
TKC Corp. | 2,100 | 43,140 | |||
Toppan Forms Co. Ltd. | 5,600 | 61,354 | |||
Zenrin Co. Ltd. | 2,100 | 19,059 | |||
472,799 |
18 | 2009 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI JAPAN SMALL CAP INDEX FUND
February 28, 2009
Security | Shares | Value | |||
COMPUTERS – 0.65% | |||||
DTS Corp. | 2,800 | $ | 18,028 | ||
Hitachi Information Systems Ltd. | 2,100 | 33,803 | |||
Net One Systems Co. Ltd. | 49 | 68,959 | |||
NS Solutions Corp. | 2,100 | 23,888 | |||
144,678 | |||||
COSMETICS & PERSONAL CARE – 1.31% | |||||
Aderans Holdings Co. Ltd. | 3,500 | 24,181 | |||
Fancl Corp. | 3,500 | 40,135 | |||
Kose Corp. | 2,800 | 58,521 | |||
Lion Corp. | 14,000 | 70,540 | |||
Mandom Corp. | 4,200 | 71,470 | |||
Pigeon Corp. | 1,400 | 27,143 | |||
291,990 | |||||
DISTRIBUTION & WHOLESALE – 2.13% | |||||
Doshisha Co. Ltd. | 2,100 | 23,566 | |||
Hanwa Co. Ltd. | 21,000 | 57,520 | |||
Inaba Denki Sangyo Co. Ltd. | 2,800 | 65,389 | |||
Itochu Enex Co. Ltd. | 7,700 | 47,926 | |||
Iwatani Corp. | 28,000 | 59,523 | |||
Japan Pulp & Paper Co. Ltd. | 14,000 | 38,060 | |||
Japan Wind Development Co. Ltd. | 7 | 19,767 | |||
JFE Shoji Holdings Inc. | 7,000 | 18,529 | |||
Kanematsu Corp.b | 42,000 | 33,052 | |||
Matsuda Sangyo Co. Ltd. | 1,560 | 17,139 | |||
Nagase & Co. Ltd. | 7,000 | 55,588 | |||
Sumikin Bussan Corp. | 7,000 | 16,025 | |||
Trusco Nakayama Corp. | 2,100 | 23,501 | |||
475,585 | |||||
DIVERSIFIED FINANCIAL SERVICES – 1.93% | |||||
Aizawa Securities Co. Ltd. | 4,200 | 5,194 | |||
Century Leasing System Inc. | 2,100 | 11,440 | |||
Fuyo General Lease Co. Ltd. | 1,400 | 16,583 | |||
Hitachi Credit Corp. | 3,500 | 30,548 | |||
IBJ Leasing Co. Ltd. | 2,100 | 20,668 | |||
Ichiyoshi Securities Co. Ltd. | 4,200 | 19,016 | |||
Jaccs Co. Ltd.b | 14,000 | 24,038 | |||
Japan Securities Finance Co. Ltd. | 7,700 | 24,947 | |||
Marusan Securities Co. Ltd. | 6,300 | 25,433 | |||
Mizuho Investors Securities Co. Ltd. | 28,000 | 21,749 | |||
Okasan Securities Group Inc. | 14,000 | 46,788 | |||
OMC Card Inc.b | 7,000 | 10,230 |
Security | Shares | Value | |||
Orient Corp.b | 21,000 | $ | 15,024 | ||
Osaka Securities Exchange Co. Ltd. | 21 | 70,397 | |||
Ricoh Leasing Co. Ltd. | 2,100 | 27,193 | |||
SPARX Group Co. Ltd. | 77 | 4,989 | |||
Tokai Tokyo Securities Co. Ltd. | 21,000 | 35,628 | |||
Tokyo Leasing Co. Ltd. | 2,800 | 13,021 | |||
Toyo Securities Co. Ltd. | 7,000 | 9,444 | |||
432,330 | |||||
ELECTRIC – 0.38% | |||||
Okinawa Electric Power Co. | 1,400 | 85,850 | |||
85,850 | |||||
ELECTRICAL COMPONENTS & | |||||
Fujikura Ltd. | 28,000 | 61,812 | |||
Funai Electric Co. Ltd. | 2,100 | 54,729 | |||
GS Yuasa Corp.a | 28,000 | 116,756 | |||
Hitachi Cable Ltd. | 14,000 | 21,463 | |||
Shinko Electric Co. Ltd. | 14,000 | 39,348 | |||
Toshiba Tec Corp. | 14,000 | 33,338 | |||
327,446 | |||||
ELECTRONICS – 4.97% | |||||
A&D Co. Ltd. | 2,100 | 4,615 | |||
Anritsu Corp. | 14,000 | 31,765 | |||
Chiyoda Integre Co. Ltd. | 2,100 | 23,265 | |||
CMK Corp. | 4,900 | 13,121 | |||
Cosel Co. Ltd. | 3,500 | 28,796 | |||
Dainippon Screen Manufacturing | 21,000 | 29,189 | |||
Eizo Nanao Corp. | 2,100 | 38,783 | |||
Fujitsu General Ltd. | 7,000 | 10,517 | |||
Furuno Electric Co. Ltd. | 2,800 | 12,277 | |||
Futaba Corp. | 3,500 | 48,899 | |||
Hamamatsu Photonics K.K. | 5,600 | 90,887 | |||
HORIBA Ltd. | 2,800 | 45,873 | |||
Hosiden Corp. | 5,600 | 59,809 | |||
JEOL Ltd. | 7,000 | 18,529 | |||
Kaga Electronics Co. Ltd. | 3,500 | 32,873 | |||
Koa Corp. | 4,900 | 23,187 | |||
Kuroda Electric Co. Ltd. | 3,500 | 19,817 | |||
Macnica Inc. | 2,100 | 23,673 | |||
Meiko Electronics Co. Ltd. | 700 | 4,471 | |||
Micronics Japan Co. Ltd. | 1,400 | 8,871 | |||
NEC Tokin Corp.b | 7,000 | 11,161 |
SCHEDULESOF INVESTMENTS | 19 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI JAPAN SMALL CAP INDEX FUND
February 28, 2009
Security | Shares | Value | |||
Nichicon Corp. | 6,300 | $ | 41,208 | ||
Nihon Dempa Kogyo Co. Ltd. | 1,400 | 17,485 | |||
Nippon Chemi-Con Corp. | 14,000 | 22,607 | |||
Nitto Kogyo Corp. | 2,800 | 20,604 | |||
Ryosan Co. Ltd. | 4,200 | 92,503 | |||
Sanyo Denki Co. Ltd. | 7,000 | 12,663 | |||
Sodick Co. Ltd. | 6,300 | 8,435 | |||
Star Micronics Co. Ltd. | 4,200 | 35,628 | |||
Taiyo Yuden Co. Ltd. | 7,000 | 42,210 | |||
Tamura Corp. | 7,000 | 12,877 | |||
Tokyo Seimitsu Co. Ltd.a | 3,500 | 27,043 | |||
Toyo Corp. | 3,500 | 30,978 | |||
ULVAC Inc.a | 2,800 | 42,896 | |||
Wacom Co. Ltd. | 35 | 28,688 | |||
Yamatake Corp. | 5,600 | 95,007 | |||
1,111,210 | |||||
ENGINEERING & CONSTRUCTION – 4.57% | |||||
Chiyoda Corp. | 14,000 | 56,518 | |||
Chudenko Corp. | 2,800 | 42,639 | |||
COMSYS Holdings Corp. | 14,000 | 101,446 | |||
Japan Airport Terminal Co. Ltd. | 5,600 | 62,213 | |||
Kandenko Co. Ltd. | 7,000 | 44,570 | |||
Kyowa Exeo Corp. | 7,000 | 57,806 | |||
Maeda Corp. | 21,000 | 64,817 | |||
Maeda Road Construction Co. Ltd. | 7,000 | 57,233 | |||
Nippo Corp. | 7,000 | 56,303 | |||
Nishimatsu Construction Co. Ltd. | 28,000 | 24,038 | |||
Okumura Corp. | 14,000 | 53,513 | |||
Penta-Ocean Construction Co. Ltd.b | 24,500 | 29,547 | |||
Shinko Plantech Co. Ltd. | 3,500 | 19,495 | |||
SHO-BOND Holdings Co. Ltd. | 2,800 | 54,658 | |||
Taihei Kogyo Co. Ltd. | 7,000 | 15,811 | |||
Taikisha Ltd. | 3,500 | 42,603 | |||
Takasago Thermal Engineering | 7,000 | 38,346 | |||
Takuma Co. Ltd. | 7,000 | 9,372 | |||
Toda Corp. | 21,000 | 55,373 | |||
Tokyu Construction Co. Ltd. | 8,820 | 19,922 | |||
Toshiba Plant Systems & | 7,000 | 66,748 | |||
Toyo Construction Co. Ltd.b | 35,000 | 11,447 |
Security | Shares | Value | |||
Toyo Engineering Corp. | 14,000 | $ | 38,633 | ||
1,023,051 | |||||
ENTERTAINMENT – 1.11% | |||||
Avex Group Holdings Inc. | 3,500 | 31,621 | |||
Resorttrust Inc. | 3,500 | 30,763 | |||
Shochiku Co. Ltd. | 7,000 | 48,577 | |||
Toei Co. Ltd. | 7,000 | 28,545 | |||
Tokyotokeiba Co. Ltd. | 14,000 | 17,170 | |||
USJ Co. Ltd. | 98 | 37,760 | |||
Yomiuri Land Co. Ltd. | 7,000 | 19,960 | |||
Yoshimoto Kogyo Co. Ltd. | 3,500 | 33,088 | |||
247,484 | |||||
ENVIRONMENTAL CONTROL – 0.12% | |||||
Asahi Pretec Corp. | 2,100 | 25,841 | |||
25,841 | |||||
FOOD – 4.81% | |||||
Ariake Japan Co. Ltd. | 2,100 | 32,580 | |||
Ezaki Glico Co. Ltd. | 7,000 | 63,958 | |||
Fuji Oil Co. Ltd. | 8,400 | 105,510 | |||
House Foods Corp. | 6,300 | 92,074 | |||
Itoham Foods Inc. | 14,000 | 41,208 | |||
J-Oil Mills Inc. | 7,000 | 18,887 | |||
Maruha Nichiro Holdings Inc. | 35,000 | 41,852 | |||
Meiji Seika Kaisha Ltd.a | 28,000 | 93,577 | |||
Mitsui Sugar Co. Ltd. | 7,000 | 20,389 | |||
Morinaga & Co. Ltd. | 28,000 | 55,803 | |||
Morinaga Milk Industry Co. Ltd. | 21,000 | 63,529 | |||
Nichirei Corp. | 21,000 | 69,968 | |||
Nippon Beet Sugar Manufacturing Co. Ltd. | 7,000 | 16,598 | |||
Nippon Flour Mills Co. Ltd. | 14,000 | 63,100 | |||
Nippon Suisan Kaisha Ltd. | 20,300 | 44,606 | |||
Nisshin OilliO Group Ltd. (The) | 14,000 | 67,678 | |||
Q.P. Corp. | 8,400 | 93,319 | |||
Snow Brand Milk Products | 17,500 | 47,396 | |||
Unicharm Petcare Corp. | 1,400 | 42,925 | |||
1,074,957 | |||||
FOREST PRODUCTS & PAPER – 1.46% | |||||
Daio Paper Corp. | 7,000 | 54,515 | |||
Hokuetsu Paper Mills Ltd. | 10,500 | 38,740 |
20 | 2009 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI JAPAN SMALL CAP INDEX FUND
February 28, 2009
Security | Shares | Value | |||
Mitsubishi Paper Mills Ltd. | 28,000 | $ | 35,771 | ||
Rengo Co. Ltd. | 21,000 | 115,254 | |||
Sumitomo Forestry Co. Ltd. | 14,000 | 82,702 | |||
326,982 | |||||
GAS – 0.48% | |||||
Saibu Gas Co. Ltd. | 42,000 | 106,454 | |||
106,454 | |||||
HAND & MACHINE TOOLS – 1.19% | |||||
DISCO Corp.a | 2,100 | 53,334 | |||
Hitachi Koki Co. Ltd. | 4,900 | 44,871 | |||
Meidensha Corp. | 21,000 | 43,140 | |||
Mori Seiki Co. Ltd. | 7,000 | 57,591 | |||
OSG Corp. | 7,700 | 40,371 | |||
Union Tool Co. | 1,400 | 26,399 | |||
265,706 | |||||
HEALTH CARE - PRODUCTS – 1.67% | |||||
Hogy Medical Co. Ltd. | 1,400 | 77,694 | |||
Nakanishi Inc. | 700 | 41,136 | |||
Nihon Kohden Corp. | 3,500 | 44,570 | |||
Nipro Corp. | 7,000 | 107,313 | |||
Sysmex Corp. | 2,800 | 85,707 | |||
Topcon Corp. | 5,600 | 16,369 | |||
372,789 | |||||
HOME BUILDERS – 0.24% | |||||
PanaHome Corp. | 7,000 | 36,701 | |||
Token Corp. | 840 | 17,470 | |||
54,171 | |||||
HOME FURNISHINGS – 1.02% | |||||
Alpine Electronics Inc. | 4,200 | 27,257 | |||
Canon Electronics Inc. | 2,100 | 24,811 | |||
Daiwa Industries Ltd. | 7,000 | 20,819 | |||
Foster Electric Co. Ltd. | 2,100 | 11,461 | |||
France Bed Holdings Co. Ltd. | 14,000 | 19,316 | |||
Hitachi Maxell Ltd. | 4,200 | 29,747 | |||
Juki Corp. | 14,000 | 8,585 | |||
JVC KENWOOD Holdings Inc.b | 68,600 | 23,137 | |||
Nidec Sankyo Corp. | 7,000 | 27,973 | |||
Noritz Corp. | 2,800 | 36,057 | |||
229,163 |
Security | Shares | Value | |||
HOUSEHOLD PRODUCTS & WARES – 0.11% | |||||
Pilot Corp. | 21 | $ | 23,888 | ||
23,888 | |||||
HOUSEWARES – 0.49% | |||||
Noritake Co. Ltd. | 14,000 | 37,202 | |||
Sangetsu Co. Ltd. | 3,500 | 71,899 | |||
109,101 | |||||
INSURANCE – 0.02% | |||||
Fuji Fire & Marine Insurance | |||||
Co. Ltd. (The) | 7,000 | 4,579 | |||
4,579 | |||||
INTERNET – 1.64% | |||||
Access Co. Ltd.a,b | 21 | 50,415 | |||
CyberAgent Inc. | 49 | 22,561 | |||
Dwango Co. Ltd. | 7 | 9,916 | |||
eAccess Ltd. | 119 | 73,094 | |||
En-Japan Inc. | 14 | 10,044 | |||
GMO Internet Inc. | 4,900 | 18,980 | |||
Gourmet Navigator Inc. | 14 | 28,316 | |||
Index Holdingsb | 108 | 3,609 | |||
Internet Initiative Japan Inc. | 14 | 11,590 | |||
kabu.com Securities Co. Ltd. | 35 | 31,371 | |||
Kakaku.com Inc. | 14 | 41,623 | |||
Monex Group Inc. | 98 | 24,038 | |||
Opt Inc. | 7 | 8,156 | |||
So-net Entertainment Corp. | 14 | 26,943 | |||
VeriSign Japan K.K. | 28 | 6,470 | |||
367,126 | |||||
IRON & STEEL – 1.28% | |||||
Aichi Steel Corp. | 14,000 | 35,485 | |||
Godo Steel Ltd. | 14,000 | 33,338 | |||
Kyoei Steel Ltd. | 1,400 | 26,499 | |||
Mitsubishi Steel Manufacturing | 14,000 | 26,041 | |||
Nakayama Steel Works Ltd. | 7,000 | 13,307 | |||
Nippon Metal Industry Co. Ltd. | 14,000 | 15,596 | |||
Nippon Yakin Kogyo Co. Ltd. | 10,500 | 20,604 | |||
Sanyo Special Steel Co. Ltd. | 14,000 | 27,615 | |||
TOPY Industries Ltd. | 21,000 | 31,121 | |||
Yodogawa Steel Works Ltd. | 14,000 | 56,661 | |||
286,267 |
SCHEDULESOF INVESTMENTS | 21 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI JAPAN SMALL CAP INDEX FUND
February 28, 2009
Security | Shares | Value | |||
LEISURE TIME – 1.65% | |||||
Accordia Golf Co. Ltd. | 56 | $ | 32,737 | ||
Aruze Corp. | 2,100 | 11,268 | |||
Daiichikosho Co. Ltd. | 4,200 | 39,362 | |||
Fields Corp. | 14 | 21,319 | |||
Heiwa Corp. | 4,900 | 48,827 | |||
HIS Co. Ltd. | 2,800 | 40,206 | |||
Mars Engineering Corp. | 1,400 | 44,213 | |||
Mizuno Corp. | 7,000 | 28,259 | |||
Pacific Golf Group International | 49 | 22,461 | |||
Roland Corp. | 2,100 | 21,441 | |||
Round One Corp. | 4,200 | 24,596 | |||
Tokyo Dome Corp. | 14,000 | 35,199 | |||
369,888 | |||||
LODGING – 0.13% | |||||
Fujita Kanko Inc. | 7,000 | 28,187 | |||
28,187 | |||||
MACHINERY – 3.45% | |||||
Aida Engineering Ltd. | 7,000 | 19,316 | |||
Chugai Ro Co. Ltd. | 7,000 | 16,097 | |||
CKD Corp. | 6,300 | 18,028 | |||
Daifuku Co. Ltd. | 7,000 | 34,483 | |||
Daihen Corp. | 14,000 | 37,059 | |||
Fuji Machine Manufacturing Co. Ltd. | 4,200 | 29,876 | |||
Furukawa Co. Ltd. | 28,000 | 20,890 | |||
Harmonic Drive Systems Inc. | 6 | 10,118 | |||
Iseki & Co. Ltd.b | 21,000 | 48,505 | |||
Komori Corp. | 5,600 | 41,437 | |||
Makino Milling Machine Co. Ltd. | 7,000 | 15,167 | |||
Max Co. Ltd. | 7,000 | 75,262 | |||
Miura Co. Ltd. | 2,800 | 60,667 | |||
Modec Inc. | 2,100 | 24,296 | |||
Nabtesco Corp. | 7,000 | 43,354 | |||
Nippon Thompson Co. Ltd. | 7,000 | 20,962 | |||
Obara Corp. | 1,400 | 8,170 | |||
Okuma Corp. | 14,000 | 44,642 | |||
Shima Seiki Manufacturing Ltd. | 2,100 | 38,375 | |||
Sintokogio Ltd. | 5,600 | 31,478 | |||
Tadano Ltd. | 7,000 | 28,474 | |||
Takeuchi Manufacturing Co. Ltd. | 1,400 | 9,529 | |||
Toshiba Machine Co. Ltd. | 14,000 | 34,769 |
Security | Shares | Value | |||
Toyo Kanetsu K.K. | 21,000 | $ | 33,267 | ||
Tsubakimoto Chain Co. | 14,000 | 26,900 | |||
771,121 | |||||
MACHINERY - DIVERSIFIED – 0.27% | |||||
Ebara Corp. | 35,000 | 60,810 | |||
60,810 | |||||
MANUFACTURING – 1.71% | |||||
Amano Corp. | 7,000 | 60,667 | |||
Glory Ltd. | 5,600 | 91,974 | |||
Kimoto Co. Ltd. | 2,100 | 4,614 | |||
Kureha Corp. | 21,000 | 83,918 | |||
Nikkiso Co. Ltd. | 7,000 | 31,836 | |||
Nitta Corp. | 2,800 | 32,108 | |||
Tamron Co. Ltd. | 1,400 | 12,978 | |||
Tenma Corp. | 2,800 | 25,812 | |||
Tokai Rubber Industries Ltd. | 2,800 | 16,884 | |||
Toyo Tanso Co. Ltd.a | 700 | 21,820 | |||
382,611 | |||||
MEDIA – 0.50% | |||||
Gakken Co. Ltd. | 7,000 | 10,016 | |||
Kadokawa Group Holdings Inc.a | 2,100 | 36,765 | |||
SKY Perfect JSAT Holdings Inc. | 140 | 55,230 | |||
Usen Corp.b | 10,018 | 9,317 | |||
111,328 | |||||
METAL FABRICATE & HARDWARE – 1.36% | |||||
Ahresty Corp. | 2,100 | 5,430 | |||
Kitz Corp. | 7,000 | 21,749 | |||
Misumi Group Inc. | 7,000 | 79,197 | |||
Nachi-Fujikoshi Corp. | 21,000 | 28,545 | |||
Neturen Co. Ltd. | 4,200 | 25,540 | |||
Oiles Corp. | 3,580 | 36,808 | |||
Onoken Co. Ltd. | 1,400 | 9,315 | |||
Ryobi Ltd. | 21,000 | 31,979 | |||
Tocalo Co. Ltd. | 2,100 | 18,093 | |||
Toho Zinc Co. Ltd. | 14,000 | 28,760 | |||
Yamezen Corp. | 6,300 | 18,801 | |||
304,217 | |||||
MINING – 0.79% | |||||
Mitsui Mining Co. Ltd. | 14,000 | 13,879 | |||
Nippon Denko Co. Ltd. | 7,000 | 19,531 | |||
Nippon Light Metal Co. Ltd. | 56,000 | 38,919 |
22 | 2009 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI JAPAN SMALL CAP INDEX FUND
February 28, 2009
Security | Shares | Value | |||
Nittetsu Mining Co. Ltd. | 7,000 | $ | 21,319 | ||
Pacific Metals Co. Ltd.a | 14,000 | 54,658 | |||
Sumitomo Light Metal Industries Ltd. | 35,000 | 28,617 | |||
176,923 | |||||
OFFICE & BUSINESS EQUIPMENT – 0.13% | |||||
Canon Finetech Inc. | 2,800 | 29,332 | |||
29,332 | |||||
OFFICE FURNISHINGS – 0.50% | |||||
Itoki Corp. | 4,900 | 13,171 | |||
Kokuyo Co. Ltd. | 8,400 | 60,782 | |||
Okamura Corp. | 7,000 | 38,418 | |||
112,371 | |||||
OIL & GAS – 0.10% | |||||
AOC Holdings Inc. | 4,200 | 22,879 | |||
22,879 | |||||
PACKAGING & CONTAINERS – 0.42% | |||||
FP Corp. | 1,400 | 64,101 | |||
Fuji Seal International Inc. | 2,100 | 30,648 | |||
94,749 | |||||
PHARMACEUTICALS – 3.31% | |||||
EPS Co. Ltd. | 7 | 28,617 | |||
Kaken Pharmaceutical Co. Ltd. | 7,000 | 66,534 | |||
Kobayashi Pharmaceutical Co. Ltd. | 2,800 | 92,718 | |||
Miraca Holdings Inc. | 4,900 | 102,412 | |||
Mochida Pharmaceutical Co. Ltd. | 7,000 | 76,335 | |||
Nichi-Iko Pharmaceutical Co. Ltd. | 2,100 | 59,773 | |||
Nippon Shinyaku Co. Ltd. | 7,000 | 66,891 | |||
Rohto Pharmaceutical Co. Ltd. | 7,000 | 74,690 | |||
Sawai Pharmaceutical Co. Ltd.a | 1,400 | 68,680 | |||
Seikagaku Corp. | 3,500 | 37,130 | |||
Shin Nippon Biomedical | 1,400 | 3,949 | |||
Toho Pharmaceutical Co. Ltd. | 3,500 | 33,982 | |||
Towa Pharmaceutical Co. Ltd. | 700 | 28,974 | |||
740,685 | |||||
REAL ESTATE – 0.83% | |||||
Atrium Co. Ltd.b | 1,400 | 1,560 | |||
Daibiru Corp. | 4,900 | 36,958 | |||
Daikyo Inc. | 21,000 | 9,444 | |||
Goldcrest Co. Ltd. | 1,820 | 32,905 | |||
Heiwa Real Estate Co. Ltd. | 14,000 | 29,046 |
Security | Shares | Value | |||
Sankei Building Co. Ltd. (The) | 2,800 | $ | 13,908 | ||
Shoei Co. Ltd. | 2,800 | 11,447 | |||
Sumitomo Real Estate Sales Co. Ltd. | 700 | 17,492 | |||
TOC Co. Ltd. | 7,000 | 24,753 | |||
Tokyu Livable Inc. | 2,100 | 8,392 | |||
185,905 | |||||
REAL ESTATE INVESTMENT TRUSTS – 3.66% | |||||
DA Office Investment Corp. | 21 | 27,751 | |||
Frontier Real Estate Investment Corp. | 14 | 67,392 | |||
Fukuoka REIT Corp. | 7 | 24,539 | |||
Global One Real Estate | 7 | 43,712 | |||
Hankyu REIT Inc. | 7 | 26,613 | |||
Japan Excellent Inc. | 14 | 49,078 | |||
Japan Logistics Fund Inc. | 14 | 70,254 | |||
Kenedix Realty Investment Corp. | 14 | 22,965 | |||
MID REIT Inc. | 14 | 22,936 | |||
Mori Hills REIT Investment Corp. | 7 | 17,242 | |||
MORI TRUST Sogo REIT Inc. | 14 | 97,154 | |||
Nippon Accommodations Fund Inc. | 14 | 53,084 | |||
Nippon Commercial Investment Corp. | 28 | 12,978 | |||
Nippon Residential Investment Corp. | 21 | 8,231 | |||
ORIX JREIT Inc. | 21 | 63,336 | |||
Premier Investment Co. | 14 | 39,920 | |||
TOKYU REIT Inc. | 14 | 73,974 | |||
Top REIT Inc. | 14 | 45,930 | |||
United Urban Investment Corp. | 14 | 50,938 | |||
818,027 | |||||
RETAIL – 10.26% | |||||
Aoki Holdings Inc. | 2,100 | 19,424 | |||
Aoyama Trading Co. Ltd. | 5,600 | 69,195 | |||
Arcs Co. Ltd. | 2,800 | 40,493 | |||
Askul Corp.a | 2,100 | 32,344 | |||
Autobacs Seven Co. Ltd. | 3,500 | 89,785 | |||
Best Denki Co. Ltd. | 7,000 | 19,316 | |||
BIC Camera Inc. | 63 | 11,100 | |||
Cawachi Ltd. | 1,400 | 23,265 | |||
Chiyoda Co. Ltd. | 2,800 | 36,715 | |||
Circle K Sunkus Co. Ltd. | 4,200 | 64,774 | |||
Culture Convenience Club Co. Ltd.a | 8,400 | 58,464 | |||
Daiei Inc. (The)a,b | 6,300 | 19,896 | |||
DCM Japan Holdings Co. Ltd. | 6,300 | 28,846 | |||
Don Quijote Co. Ltd. | 4,200 | 50,008 |
SCHEDULESOF INVESTMENTS | 23 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI JAPAN SMALL CAP INDEX FUND
February 28, 2009
Security | Shares | Value | |||
Doutor Nichires Holdings Co. Ltd. | 4,200 | $ | 59,279 | ||
Duskin Co. Ltd. | 4,900 | 78,424 | |||
EDION Corp. | 7,000 | 17,599 | |||
GEO Corp. | 42 | 27,000 | |||
H2O Retailing Corp. | 14,000 | 75,405 | |||
Heiwado Co. Ltd. | 3,500 | 48,291 | |||
Izumi Co. Ltd. | 5,600 | 58,893 | |||
Izumiya Co. Ltd. | 7,000 | 34,984 | |||
Joshin Denki Co. Ltd.a | 7,000 | 39,205 | |||
Keiyo Co. Ltd. | 3,500 | 18,529 | |||
Kisoji Co. Ltd. | 2,800 | 52,082 | |||
Kohnan Shoji Co. Ltd. | 2,100 | 19,660 | |||
Komeri Co. Ltd. | 2,800 | 46,130 | |||
K’s Holdings Corp. | 3,500 | 42,102 | |||
Link Theory Holdings Co. Ltd.b | 7 | 12,091 | |||
Maruetsu Inc. (The)b | 7,000 | 32,408 | |||
Matsumotokiyoshi Co. Ltd. | 4,200 | 75,849 | |||
Matsuya Co. Ltd.a | 2,800 | 43,326 | |||
McDonald’s Holdings Co. (Japan) Ltd. | 4,900 | 89,391 | |||
Nishimatsuya Chain Co. Ltd. | 4,900 | 36,157 | |||
Nissen Holdings Co. Ltd. | 4,900 | 21,534 | |||
Parco Co. Ltd. | 7,000 | 52,154 | |||
Paris Miki Inc. | 3,500 | 25,648 | |||
Plenus Co. Ltd. | 2,800 | 39,405 | |||
Point Inc. | 1,260 | 51,896 | |||
Right On Co. Ltd. | 2,100 | 20,583 | |||
Ryohin Keikaku Co. Ltd. | 2,100 | 74,475 | |||
Saizeriya Co. Ltd. | 2,800 | 27,529 | |||
San-A & Co. Ltd. | 700 | 21,212 | |||
Sankyo-Tateyama Holdings Inc. | 35,000 | 21,820 | |||
Seiko Corp. | 7,000 | 12,377 | |||
Senshukai Co. Ltd. | 4,200 | 26,613 | |||
Shimachu Co. Ltd. | 4,200 | 65,461 | |||
St. Marc Holdings Co. Ltd. | 700 | 17,707 | |||
Sugi Pharmacy Co. Ltd. | 2,800 | 59,380 | |||
Sundrug Co. Ltd. | 2,800 | 46,903 | |||
Tsuruha Holdings Inc. | 1,400 | 44,785 | |||
Valor Co. Ltd. | 3,500 | 26,614 | |||
Watami Co. Ltd. | 2,800 | 59,952 | |||
Xebio Co. Ltd. | 2,100 | 31,786 | |||
Yoshinoya Holdings Co. Ltd.a | 42 | 47,089 |
Security | Shares | Value | |||
Zensho Co. Ltd.a | 6,300 | $ | 31,035 | ||
2,296,388 | |||||
SEMICONDUCTORS – 0.43% | |||||
Epson Toyocom Corp. | 7,000 | 11,089 | |||
Megachips Corp. | 1,400 | 23,823 | |||
Mimasu Semiconductor Industry Co. Ltd. | 2,100 | 21,420 | |||
Sanken Electric Co. Ltd. | 7,000 | 17,313 | |||
Shindengen Electric Manufacturing Co. Ltd. | 14,000 | 23,466 | |||
97,111 | |||||
SHIPBUILDING – 0.42% | |||||
Hitachi Zosen Corp.b | 73,500 | 60,095 | |||
Namura Shipbuilding Co. Ltd. | 4,200 | 10,602 | |||
Sasebo Heavy Industries Co. Ltd.a | 14,000 | 23,895 | |||
94,592 | |||||
SOFTWARE – 1.38% | |||||
Capcom Co. Ltd. | 4,200 | 80,957 | |||
Fujisoft Inc. | 2,800 | 41,322 | |||
Hitachi Software Engineering | 2,800 | 32,823 | |||
Koei Co. Ltd. | 2,100 | 16,161 | |||
Nihon Unisys Ltd. | 5,600 | 39,834 | |||
NSD Co. Ltd. | 3,500 | 21,176 | |||
Obic Business Consultants Co. Ltd. | 700 | 23,609 | |||
Sumisho Computer Systems Corp. | 2,100 | 22,922 | |||
Trans Cosmos Inc.a | 2,800 | 15,024 | |||
Works Applications Co. Ltd. | 35 | 14,308 | |||
308,136 | |||||
STORAGE & WAREHOUSING – 0.58% | |||||
Mitsui-Soko Co. Ltd. | 14,000 | 47,074 | |||
Shibusawa Warehouse | 7,000 | 31,908 | |||
Sumitomo Warehouse | 14,000 | 50,222 | |||
129,204 | |||||
TELECOMMUNICATIONS – 1.15% | |||||
Denki Kogyo Co. Ltd. | 7,000 | 38,919 | |||
Hitachi Kokusai Electric Inc.a | 7,000 | 38,990 | |||
IT Holdings Corp.b | 6,448 | 75,060 | |||
Japan Radio Co. Ltd. | 7,000 | 8,442 | |||
Oki Electric Industry Co. Ltd.b | 70,000 | 37,917 | |||
Okinawa Cellular Telephone Co. | 14 | 25,340 | |||
Telepark Corp. | 21 | 22,128 |
24 | 2009 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI JAPAN SMALL CAP INDEX FUND
February 28, 2009
Security | Shares | Value | |||
Uniden Corp. | 7,000 | $ | 10,302 | ||
257,098 | |||||
TEXTILES – 1.05% | |||||
Daiwabo Co. Ltd. | 14,000 | 31,765 | |||
Kurabo Industries Ltd. | 21,000 | 28,545 | |||
Nitto Boseki Co. Ltd. | 28,000 | 42,067 | |||
Seiren Co. Ltd. | 5,600 | 25,755 | |||
Toyobo Co. Ltd. | 56,000 | 76,120 | |||
Unitika Ltd.a | 49,000 | 30,548 | |||
234,800 | |||||
TOYS, GAMES & HOBBIES – 0.30% | |||||
Sanrio Co. Ltd. | 4,200 | 40,006 | |||
Tomy Co. Ltd. | 7,000 | 27,830 | |||
67,836 | |||||
TRANSPORTATION – 2.96% | |||||
Daiichi Chuo Kisen Kaishaa | 14,000 | 29,046 | |||
Fukuyama Transporting Co. Ltd. | 14,000 | 54,658 | |||
Hitachi Transport System Ltd. | 4,200 | 38,504 | |||
Iino Kaiun Kaisha Ltd. | 7,700 | 41,945 | |||
Inui Steamship Co. Ltd. | 2,100 | 12,599 | |||
Kintetsu World Express Inc. | 1,400 | 25,555 | |||
Nippon Konpo Unyu Soko | 7,000 | 59,666 | |||
Nishi-Nippon Railroad Co. Ltd. | 28,000 | 107,026 | |||
Sagami Railway Co. Ltd. | 35,000 | 141,295 | |||
Sankyu Inc. | 21,000 | 55,159 | |||
Seino Holdings Co. Ltd. | 14,000 | 65,961 | |||
Shinwa Kaiun Kaisha Ltd. | 7,000 | 17,170 | |||
Yusen Air & Sea Service Co. Ltd. | 1,400 | 14,451 | |||
663,035 | |||||
VENTURE CAPITAL – 0.01% | |||||
Japan Asia Investment Co. Ltd. | 7,000 | 2,218 | |||
2,218 | |||||
TOTAL COMMON STOCKS | 22,272,667 |
Security | Shares | Value | ||||
SHORT-TERM INVESTMENTS – 3.50% |
| |||||
MONEY MARKET FUNDS – 3.50% |
| |||||
Barclays Global Investors Funds | 663,363 | $ | 663,363 | |||
Barclays Global Investors Funds | 110,895 | 110,895 | ||||
Barclays Global Investors Funds | 8,669 | 8,669 | ||||
782,927 | ||||||
TOTAL SHORT-TERM INVESTMENTS |
| |||||
(Cost: $782,927) | 782,927 | |||||
TOTAL INVESTMENTS IN | ||||||
(Cost: $32,303,309) | 23,055,594 | |||||
Other Assets, Less Liabilities – (3.06)% | (683,962 | ) | ||||
NET ASSETS – 100.00% | $ | 22,371,632 | ||||
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 | All or a portion of 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 MALAYSIA INDEX FUND
February 28, 2009
Security | Shares | Value | |||
COMMON STOCKS – 99.46% | |||||
AGRICULTURE – 12.94% | |||||
Asiatic Development Bhd | 1,324,800 | $ | 1,465,052 | ||
British American Tobacco (Malaysia) Bhd | 845,200 | 10,201,672 | |||
IOI Corp. Bhd | 19,917,330 | 19,877,039 | |||
Kuala Lumpur Kepong Bhd | 2,822,400 | 7,574,614 | |||
39,118,377 | |||||
AIRLINES – 1.12% | |||||
AirAsia Bhda | 6,278,400 | 1,634,162 | |||
Malaysian Airline System Bhd | 2,419,200 | 1,748,741 | |||
3,382,903 | |||||
AUTO PARTS & EQUIPMENT – 1.71% | |||||
UMW Holdings Bhd | 3,513,600 | 5,164,968 | |||
5,164,968 | |||||
BANKS – 26.30% | |||||
Alliance Financial Group Bhd | 5,011,200 | 2,405,917 | |||
AMMB Holdings Bhd | 10,368,037 | 6,935,329 | |||
Bumiputra-Commerce | 15,552,032 | 28,943,768 | |||
Hong Leong Bank Bhd | 2,764,800 | 3,915,091 | |||
Malayan Banking Bhd | 14,342,400 | 19,729,262 | |||
Public Bank Bhd | 6,220,800 | 14,597,697 | |||
Public Bank Bhd New | 177,737 | 421,871 | |||
RHB Capital Bhd | 2,534,400 | 2,556,617 | |||
79,505,552 | |||||
BUILDING MATERIALS – 0.72% | |||||
Lafarge Malayan Cement Bhd | 2,016,060 | 2,175,115 | |||
2,175,115 | |||||
COMMERCIAL SERVICES – 2.31% | |||||
PLUS Expressways Bhd | 8,812,800 | 6,988,437 | |||
6,988,437 | |||||
DIVERSIFIED FINANCIAL SERVICES – 1.46% | |||||
Bursa Malaysia Bhd | 1,843,200 | 2,485,772 | |||
Hong Leong Credit Bhd | 1,555,200 | 1,921,191 | |||
4,406,963 | |||||
ELECTRIC – 6.38% | |||||
Tenaga Nasional Bhd | 7,603,250 | 13,227,502 | |||
YTL Power International Bhd | 11,577,675 | 6,058,176 | |||
19,285,678 |
Security | Shares | Value | |||
ENGINEERING & CONSTRUCTION – 6.85% | |||||
Gamuda Bhd | 9,446,400 | $ | 5,044,874 | ||
IJM Corp. Bhd | 4,665,600 | 4,656,162 | |||
MMC Corp. Bhd | 5,356,800 | 2,037,246 | |||
YTL Corp. Bhd | 4,780,888 | 8,962,150 | |||
20,700,432 | |||||
ENTERTAINMENT – 3.37% | |||||
Berjaya Sports Toto Bhd | 4,377,600 | 5,643,945 | |||
Tanjong PLC | 1,209,600 | 4,534,980 | |||
10,178,925 | |||||
FOOD – 2.69% | |||||
PPB Group Bhd | 3,110,466 | 8,137,969 | |||
8,137,969 | |||||
GAS – 2.51% | |||||
Petronas Gas Bhd | 2,880,000 | 7,573,837 | |||
7,573,837 | |||||
HOLDING COMPANIES - DIVERSIFIED – 7.11% | |||||
Sime Darby Bhd | 14,112,025 | 21,505,851 | |||
21,505,851 | |||||
IRON & STEEL – 0.56% | |||||
Parkson Holdings Bhd | 1,843,200 | 1,700,268 | |||
1,700,268 | |||||
LODGING – 7.40% | |||||
Genting Bhd | 13,017,600 | 12,148,590 | |||
Resorts World Bhd | 17,164,800 | 10,231,749 | |||
22,380,339 | |||||
MEDIA – 0.40% | |||||
Astro All Asia Networks PLC | 2,246,400 | 1,205,755 | |||
1,205,755 | |||||
OIL & GAS – 0.95% | |||||
Petronas Dagangan Bhd | 1,440,000 | 2,874,174 | |||
2,874,174 | |||||
REAL ESTATE – 2.74% | |||||
IGB Corp. Bhd | 5,241,600 | 1,936,883 | |||
KLCC Property Holdings Bhd | 2,707,200 | 2,154,077 | |||
SP Setia Bhd | 4,780,800 | 4,203,751 | |||
8,294,711 | |||||
TELECOMMUNICATIONS – 6.99% | |||||
DiGi.Com Bhd | 1,843,200 | 10,440,243 | |||
Telekom Malaysia Bhd | 6,048,000 | 5,611,630 |
26 | 2009 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI MALAYSIA INDEX FUND
February 28, 2009
Security | Shares | Value | |||
TM International Sdn Bhda | 6,220,800 | $ | 5,067,246 | ||
21,119,119 | |||||
TRANSPORTATION – 4.95% | |||||
MISC Bhd | 6,566,400 | 14,965,901 | |||
14,965,901 | |||||
TOTAL COMMON STOCKS | 300,665,274 | ||||
SHORT-TERM INVESTMENTS – 0.00% | |||||
MONEY MARKET FUNDS – 0.00% | |||||
Barclays Global Investors Funds | 76 | 76 | |||
76 | |||||
TOTAL SHORT-TERM INVESTMENTS | |||||
(Cost: $76) | 76 | ||||
TOTAL INVESTMENTS IN | |||||
(Cost: $230,237,935) | 300,665,350 | ||||
Other Assets, Less Liabilities – 0.54% | 1,626,667 | ||||
NET ASSETS – 100.00% | $ | 302,292,017 | |||
a | Non-income earning security. |
b | Affiliated issuer. See Note 2. |
c | The rate quoted is the annualized seven-day yield of the fund at period end. |
See notes to financial statements.
SCHEDULESOF INVESTMENTS | 27 |
Table of Contents
Schedule of Investments (Unaudited)
iSHARES® MSCI PACIFIC EX-JAPAN INDEX FUND
February 28, 2009
Security | Shares | Value | |||
COMMON STOCKS – 98.89% | |||||
AUSTRALIA – 63.00% | |||||
AGL Energy Ltd. | 1,295,536 | $ | 10,933,297 | ||
Alumina Ltd. | 4,281,659 | 3,296,082 | |||
Amcor Ltd. | 2,396,320 | 6,735,912 | |||
AMP Ltd. | 5,581,440 | 17,222,345 | |||
Aristocrat Leisure Ltd. | 907,392 | 2,150,640 | |||
ASX Ltd. | 490,144 | 8,279,117 | |||
Australia and New Zealand Banking Group Ltd. | 5,874,112 | 49,948,124 | |||
AXA Asia Pacific | 2,444,192 | 4,809,334 | |||
Bendigo and Adelaide | 781,456 | 3,210,069 | |||
BHP Billiton Ltd. | 9,626,352 | 177,298,589 | |||
Billabong International Ltd. | 486,608 | 2,182,304 | |||
BlueScope Steel Ltd. | 2,497,232 | 3,557,645 | |||
Boral Ltd. | 1,696,736 | 3,067,606 | |||
Brambles Ltd. | 4,018,256 | 11,859,830 | |||
Caltex Australia Ltd. | 392,496 | 2,357,013 | |||
CFS Retail Property Trust | 4,958,832 | 5,385,515 | |||
Coca-Cola Amatil Ltd. | 1,611,328 | 9,223,396 | |||
Cochlear Ltd. | 160,208 | 5,475,665 | |||
Commonwealth Bank | 4,232,048 | 80,568,587 | |||
Computershare Ltd. | 1,352,656 | 6,092,217 | |||
Crown Ltd.a | 1,327,360 | 4,401,037 | |||
CSL Ltd. | 1,716,864 | 40,209,369 | |||
CSR Ltd.a | 3,795,488 | 2,400,500 | |||
Dexus Property Group | 9,996,816 | 4,470,526 | |||
Fairfax Media Ltd.a | 4,021,520 | 2,389,308 | |||
Fortescue Metals | 3,598,016 | 6,091,270 | |||
Foster’s Group Ltd. | 5,567,568 | 19,598,193 | |||
Goodman Fielder Ltd. | 3,896,400 | 2,875,043 | |||
Goodman Group | 7,766,960 | 1,290,100 | |||
GPT Group (The) | 12,752,720 | 3,829,125 | |||
Harvey Norman | 1,584,672 | 1,933,622 | |||
Incitec Pivot Ltd. | 4,901,440 | 6,826,201 | |||
Insurance Australia | 5,838,684 | 12,831,349 | |||
James Hardie Industries NV | 1,250,656 | 2,652,619 | |||
Leighton Holdings Ltd.a | 432,752 | 5,263,867 | |||
Lend Lease Corp. Ltd. | 1,236,512 | 4,265,707 | |||
Lion Nathan Ltd. | 852,448 | 4,661,660 | |||
Macquarie Airports | 1,985,328 | 1,965,907 |
Security | Shares | Value | |||
Macquarie Group Ltd.a | 812,192 | $ | 8,810,393 | ||
Macquarie | 7,019,776 | 4,619,122 | |||
Macquarie Office Trust | 9,755,552 | 747,880 | |||
Metcash Ltd. | 2,244,964 | 5,994,936 | |||
Mirvac Group | 4,503,504 | 2,445,504 | |||
National Australia | 5,367,920 | 61,315,807 | |||
Newcrest Mining Ltd. | 1,383,664 | 27,384,887 | |||
Nufarm Ltd. | 378,896 | 2,481,092 | |||
OneSteel Ltd. | 2,491,520 | 2,705,903 | |||
Orica Ltd. | 1,008,576 | 8,563,129 | |||
Origin Energy Ltd. | 2,527,968 | 21,963,896 | |||
OZ Minerals Ltd. | 8,067,530 | 3,246,983 | |||
Perpetual Ltd. | 111,792 | 1,829,737 | |||
Qantas Airways Ltd. | 3,120,112 | 3,119,489 | |||
QBE Insurance Group Ltd. | 2,847,840 | 34,676,670 | |||
Rio Tinto Ltd.a | 818,720 | 24,713,606 | |||
Santos Ltd. | 1,679,872 | 16,602,191 | |||
Sims Metal | 449,888 | 5,012,447 | |||
Sonic Healthcare Ltd. | 1,045,298 | 8,013,464 | |||
SP AusNet | 2,510,288 | 1,603,697 | |||
Stockland Corp. Ltd. | 4,362,608 | 7,580,782 | |||
Suncorp-Metway Ltd. | 3,082,199 | 10,357,271 | |||
Suncorp-Metway | 525,598 | 1,766,194 | |||
Tabcorp Holdings Ltd. | 1,679,872 | 6,846,928 | |||
Tatts Group Ltd. | 3,280,048 | 5,972,057 | |||
Telstra Corp. Ltd. | 12,509,552 | 28,370,632 | |||
Toll Holdings Ltd. | 1,876,800 | 6,414,616 | |||
Transurban Group | 3,459,024 | 9,877,795 | |||
Wesfarmers Ltd. | 2,859,786 | 32,154,747 | |||
Wesfarmers Ltd. | 417,256 | 4,664,870 | |||
Westfield Group | 5,746,000 | 39,094,362 | |||
Westpac Banking Corp. | 8,019,648 | 86,533,417 | |||
Woodside Petroleum Ltd. | 1,395,088 | 31,906,821 | |||
Woolworths Ltd. | 3,503,360 | 58,504,497 | |||
WorleyParsons Ltd. | 428,128 | 4,362,478 | |||
1,121,866,990 | |||||
HONG KONG – 23.97% | |||||
ASM Pacific | 544,000 | 1,557,312 | |||
Bank of East Asia Ltd. | 4,025,600 | 8,440,632 | |||
BOC Hong Kong (Holdings) Ltd.a | 10,472,000 | 10,559,909 | |||
Cathay Pacific | 3,264,000 | 3,417,669 |
28 | 2009 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI PACIFIC EX-JAPAN INDEX FUND
February 28, 2009
Security | Shares | Value | |||
Cheung Kong (Holdings) Ltd. | 4,080,000 | $ | 33,592,696 | ||
Cheung Kong Infrastructure Holdings Ltd. | 1,360,000 | 5,182,272 | |||
Chinese Estates Holdings Ltd. | 2,448,000 | 2,796,848 | |||
CLP Holdings Ltd. | 5,848,000 | 43,398,677 | |||
Esprit Holdings Ltd.a | 3,019,200 | 16,449,110 | |||
Foxconn International | 6,256,000 | 1,855,446 | |||
Genting International PLCa,b | 8,160,000 | 2,216,674 | |||
Hang Lung Development | 2,448,000 | 6,629,099 | |||
Hang Lung Properties Ltd. | 5,984,736 | 11,560,606 | |||
Hang Seng Bank Ltd.a | 2,176,000 | 24,411,920 | |||
Henderson Land Development Co. Ltd. | 2,992,056 | 10,108,688 | |||
Hong Kong Aircraft Engineering Co. Ltd. | 128,800 | 1,161,789 | |||
Hong Kong and China Gas Co. Ltd. (The)a | 11,424,661 | 17,383,977 | |||
Hong Kong Exchanges and Clearing Ltd.a | 2,992,000 | 24,133,077 | |||
Hongkong Electric | 3,944,000 | 24,411,920 | |||
Hopewell Holdings Ltd. | 1,768,000 | 5,015,668 | |||
Hutchison Telecommunications International Ltd. | 5,168,000 | 1,212,880 | |||
Hutchison Whampoa Ltd. | 5,984,000 | 31,637,288 | |||
Hysan Development Co. Ltd. | 1,632,000 | 2,500,117 | |||
Kerry Properties Ltd. | 1,904,000 | 3,623,908 | |||
Kingboard Chemical Holdings | 1,632,000 | 2,693,729 | |||
Li & Fung Ltd.a | 6,529,600 | 14,499,183 | |||
Lifestyle International | 1,768,000 | 1,365,629 | |||
Link REIT (The)a | 6,256,000 | 11,987,796 | |||
Mongolia Energy Corp. Ltd.b | 5,440,000 | 1,480,148 | |||
MTR Corp. Ltd. | 4,080,000 | 9,143,948 | |||
New World Development | 7,072,941 | 6,430,029 | |||
Noble Group Ltd. | 4,624,400 | 3,230,290 | |||
NWS Holdings Ltd. | 2,448,000 | 3,144,087 | |||
Orient Overseas | 615,000 | 1,427,485 |
Security | Shares | Value | |||
Pacific Basin Shipping Ltd. | 4,624,000 | $ | 2,164,453 | ||
Shangri-La Asia Ltd. | 3,808,000 | 4,100,221 | |||
Sino Land Co. Ltd. | 4,896,000 | 3,844,878 | |||
Sun Hung Kai Properties Ltd. | 4,080,000 | 32,093,257 | |||
Swire Pacific Ltd. Class A | 2,312,000 | 14,370,063 | |||
Television Broadcasts Ltd. | 816,000 | 2,841,043 | |||
Wharf Holdings Ltd. (The) | 3,808,000 | 8,092,411 | |||
Wheelock and Co. Ltd. | 2,448,000 | 4,135,295 | |||
Wing Hang Bank Ltd. | 544,000 | 3,054,998 | |||
Yue Yuen Industrial | 1,904,000 | 3,564,982 | |||
426,922,107 | |||||
NEW ZEALAND – 0.95% | |||||
Auckland International Airport Ltd. | 2,913,392 | 2,582,735 | |||
Contact Energy Ltd. | 787,984 | 2,348,238 | |||
Fletcher Building Ltd. | 1,451,936 | 3,810,539 | |||
Sky City Entertainment Group Ltd. | 1,437,861 | 1,951,614 | |||
Telecom Corp. of New Zealand Ltd. | 5,188,400 | 6,288,637 | |||
16,981,763 | |||||
SINGAPORE – 10.97% | |||||
Ascendas Real Estate Investment Trusta | 3,844,813 | 3,133,345 | |||
CapitaLand Ltd.a | 4,896,000 | 6,270,021 | |||
CapitaMall Trust Management Ltd.a | 3,264,622 | 3,019,474 | |||
City Developments Ltd. | 1,360,000 | 4,222,236 | |||
ComfortDelGro Corp. Ltd. | 5,440,000 | 4,609,275 | |||
COSCO Corp. | 2,721,104 | 1,267,185 | |||
DBS Group Holdings Ltd. | 4,896,000 | 24,826,751 | |||
Fraser and Neave Ltd.a | 2,720,150 | 4,011,346 | |||
Golden Agri-Resources Ltd. | 14,416,000 | 2,657,370 | |||
Jardine Cycle & | 378,000 | 2,161,257 | |||
Keppel Corp. Ltd. | 3,808,000 | 10,763,185 | |||
Neptune Orient Lines Ltd. | 1,360,000 | 1,055,559 | |||
Olam International Ltd.a | 3,536,600 | 2,813,542 | |||
Oversea-Chinese | 7,072,600 | 20,493,660 | |||
Parkway Holdings Ltd. | 2,448,968 | 1,663,163 | |||
SembCorp Industries Ltd. | 2,720,240 | 3,712,377 |
SCHEDULESOF INVESTMENTS | 29 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI PACIFIC EX-JAPAN INDEX FUND
February 28, 2009
Security | Shares | Value | |||
SembCorp Marine Ltd.a | 2,448,200 | $ | 2,216,856 | ||
Singapore Airlines Ltd.a | 1,632,800 | 10,750,859 | |||
Singapore Exchange Ltd.a | 2,448,000 | 7,188,358 | |||
Singapore Press Holdings Ltd.a | 4,352,517 | 7,657,232 | |||
Singapore Technologies | 3,808,000 | 5,689,464 | |||
Singapore | 22,848,328 | 36,353,979 | |||
United Overseas Bank Ltd. | 3,536,000 | 22,847,578 | |||
UOL Group Ltd. | 1,360,000 | 1,477,783 | |||
Wilmar International Ltd.a | 2,448,000 | 4,560,016 | |||
195,421,871 | |||||
TOTAL COMMON STOCKS | 1,761,192,731 | ||||
RIGHTS – 0.05% | |||||
SINGAPORE – 0.05% | |||||
CapitaLand Ltd.a,b | 2,421,000 | 955,184 | |||
955,184 | |||||
TOTAL RIGHTS | 955,184 | ||||
SHORT-TERM INVESTMENTS – 8.66% | |||||
MONEY MARKET FUNDS – 8.66% | |||||
Barclays Global Investors Funds | 131,389,978 | 131,389,978 | |||
Barclays Global Investors Funds | 21,964,554 | 21,964,554 | |||
Barclays Global Investors Funds | 778,342 | 778,342 | |||
154,132,874 | |||||
TOTAL SHORT-TERM INVESTMENTS | |||||
(Cost: $154,132,874) | 154,132,874 | ||||
Value | ||||||
TOTAL INVESTMENTS IN | ||||||
(Cost: $2,964,846,585) | $ | 1,916,280,789 | ||||
Other Assets, Less Liabilities – (7.60)% | (135,369,720 | ) | ||||
NET ASSETS – 100.00% | $ | 1,780,911,069 | ||||
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 | All or a portion of this security represents an investment of securities lending collateral. See Note 5. |
See notes to financial statements.
30 | 2009 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited)
iSHARES® MSCI SINGAPORE INDEX FUND
February 28, 2009
Security | Shares | Value | |||
COMMON STOCKS – 98.32% | |||||
AGRICULTURE – 3.52% | |||||
Golden Agri-Resources Ltd. | 43,000,000 | $ | 7,926,396 | ||
Wilmar International Ltd.a | 7,525,000 | 14,017,205 | |||
21,943,601 | |||||
AIRLINES – 4.79% | |||||
Singapore Airlines Ltd.a | 4,540,467 | 29,895,837 | |||
29,895,837 | |||||
BANKS – 32.08% | |||||
DBS Group Holdings Ltd.a | 14,715,500 | 74,619,701 | |||
Oversea-Chinese | 19,350,000 | 56,068,818 | |||
United Overseas Bank Ltd. | 10,750,000 | 69,460,255 | |||
200,148,774 | |||||
BEVERAGES – 2.29% | |||||
Fraser and Neave Ltd.a | 9,675,000 | 14,267,512 | |||
14,267,512 | |||||
DISTRIBUTION & WHOLESALE – 1.22% | |||||
Jardine Cycle & Carriage Ltd. | 1,335,000 | 7,633,012 | |||
7,633,012 | |||||
DIVERSIFIED FINANCIAL SERVICES – 3.54% | |||||
Singapore Exchange Ltd.a | 7,525,000 | 22,096,566 | |||
22,096,566 | |||||
ENGINEERING & CONSTRUCTION – 5.20% | |||||
SembCorp Industries Ltd. | 9,675,000 | 13,203,706 | |||
Singapore Technologies Engineering Ltd.a | 12,900,000 | 19,273,656 | |||
32,477,362 | |||||
FOOD – 1.37% | |||||
Olam International Ltd.a | 10,750,000 | 8,552,163 | |||
8,552,163 | |||||
HEALTH CARE - SERVICES – 1.05% | |||||
Parkway Holdings Ltd.a | 9,675,533 | 6,570,927 | |||
6,570,927 | |||||
HOLDING COMPANIES - DIVERSIFIED – 6.57% | |||||
Keppel Corp. Ltd. | 11,050,000 | 31,232,456 | |||
Noble Group Ltd.a | 13,975,000 | 9,761,982 | |||
40,994,438 |
Security | Shares | Value | |||
MEDIA – 3.94% | |||||
Singapore Press | 13,975,000 | $ | 24,585,732 | ||
24,585,732 | |||||
REAL ESTATE – 7.82% | |||||
CapitaLand Ltd.a | 15,050,000 | 19,273,656 | |||
City Developments Ltd.a | 5,375,000 | 16,687,148 | |||
Genting International PLCa,b | 25,800,000 | 7,008,602 | |||
UOL Group Ltd.a | 5,375,000 | 5,840,502 | |||
48,809,908 | |||||
REAL ESTATE INVESTMENT TRUSTS – 3.26% | |||||
Ascendas Real Estate Investment Trusta | 11,505,335 | 9,376,316 | |||
CapitaMall Trust Management Ltd.a | 11,825,000 | 10,937,035 | |||
20,313,351 | |||||
SHIPBUILDING – 1.09% | |||||
SembCorp Marine Ltd.a | 7,525,000 | 6,813,919 | |||
6,813,919 | |||||
TELECOMMUNICATIONS – 17.00% | |||||
Singapore Telecommunications Ltd.a | 66,650,568 | 106,047,731 | |||
106,047,731 | |||||
TRANSPORTATION – 3.58% | |||||
ComfortDelGro Corp. Ltd.a | 18,275,000 | 15,484,283 | |||
COSCO Corp. | 7,525,000 | 3,504,301 | |||
Neptune Orient Lines Ltd.a | 4,300,000 | 3,337,430 | |||
22,326,014 | |||||
TOTAL COMMON STOCKS | 613,476,847 | ||||
RIGHTS – 0.51% | |||||
REAL ESTATE – 0.51% | |||||
CapitaLand Ltd.a,b | 7,980,000 | 3,148,438 | |||
3,148,438 | |||||
TOTAL RIGHTS | 3,148,438 |
SCHEDULESOF INVESTMENTS | 31 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI SINGAPORE INDEX FUND
February 28, 2009
Security | Shares | Value | ||||
SHORT-TERM INVESTMENTS – 26.29% |
| |||||
MONEY MARKET FUNDS – 26.29% |
| |||||
Barclays Global Investors Funds | 140,490,254 | $ | 140,490,254 | |||
Barclays Global Investors Funds | 23,485,853 | 23,485,853 | ||||
Barclays Global Investors Funds | 61,646 | 61,646 | ||||
164,037,753 | ||||||
TOTAL SHORT-TERM INVESTMENTS |
| |||||
(Cost: $164,037,753) | 164,037,753 | |||||
TOTAL INVESTMENTS IN | ||||||
(Cost: $1,444,471,851) | 780,663,038 | |||||
Other Assets, Less Liabilities – (25.12)% | (156,720,911 | ) | ||||
NET ASSETS – 100.00% | $ | 623,942,127 | ||||
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 | All or a portion of this security represents an investment of securities lending collateral. See Note 5. |
See notes to financial statements.
32 | 2009 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited)
iSHARES® MSCI SOUTH KOREA INDEX FUND
February 28, 2009
Security | Shares | Value | |||
COMMON STOCKS – 96.16% | |||||
AGRICULTURE – 3.04% | |||||
KT&G Corp. | 647,466 | $ | 33,312,727 | ||
33,312,727 | |||||
AIRLINES – 0.38% | |||||
Korean Air Co. Ltd.a | 206,012 | 4,124,270 | |||
4,124,270 | |||||
AUTO MANUFACTURERS – 3.02% | |||||
Hyundai Motor Co. Ltd.b | 892,710 | 28,350,164 | |||
Kia Motors Corp.a,b | 1,108,530 | 4,850,496 | |||
33,200,660 | |||||
AUTO PARTS & EQUIPMENT – 1.87% | |||||
Hankook Tire Co. Ltd.b | 529,740 | 4,352,608 | |||
Hyundai Mobis | 333,546 | 16,204,224 | |||
20,556,832 | |||||
BANKS – 1.33% | |||||
Busan Bank | 716,130 | 2,419,011 | |||
Daegu Bank | 725,940 | 2,764,584 | |||
Industrial Bank of Koreaa | 1,059,480 | 4,103,887 | |||
Korea Exchange Bankb | 1,500,930 | 5,344,035 | |||
14,631,517 | |||||
BEVERAGES – 0.25% | |||||
Hite Brewery Co. Ltd.a | 30,961 | 2,745,808 | |||
2,745,808 | |||||
CHEMICALS – 3.58% | |||||
DC Chemical Co. Ltd.a,b | 68,670 | 9,582,902 | |||
Hanwha Chemical Corp. | 421,830 | 1,911,782 | |||
Honam Petrochemical Corp.a | 88,290 | 2,705,986 | |||
KCC Corp. | 29,430 | 5,469,547 | |||
Korea Zinc Co. Ltd.b | 49,050 | 2,872,312 | |||
LG Chem Ltd.b | 304,115 | 16,757,560 | |||
39,300,089 | |||||
COMMERCIAL SERVICES – 0.26% | |||||
S1 Corp. | 101,248 | 2,839,037 | |||
2,839,037 | |||||
COSMETICS & PERSONAL CARE – 0.64% | |||||
AmorePacific Corp. | 19,620 | 7,024,050 | |||
7,024,050 | |||||
DISTRIBUTION & WHOLESALE – 2.82% | |||||
Daewoo International Corp. | 284,499 | 3,608,416 |
Security | Shares | Value | |||
Hanwha Corp.a | 264,870 | $ | 4,171,249 | ||
Hyosung Corp.b | 137,345 | 4,522,936 | |||
Samsung C&T Corp. | 774,990 | 16,677,320 | |||
SK Networks Co. Ltd. | 421,830 | 2,008,059 | |||
30,987,980 | |||||
DIVERSIFIED FINANCIAL SERVICES – 10.86% | |||||
Daewoo Securities Co. Ltd. | 716,130 | 6,677,965 | |||
Hana Financial Group Inc. | 725,941 | 8,757,684 | |||
Hyundai Securities Co. Ltd. | 794,617 | 4,798,274 | |||
KB Financial Group Inc.a | 1,952,199 | 37,427,226 | |||
Korea Investment Holdings Co. Ltd. | 235,445 | 3,492,908 | |||
Mirae Asset Securities | 127,534 | 4,740,423 | |||
Samsung Card Co. Ltd.b | 215,825 | 3,757,762 | |||
Samsung Securities Co.b | 294,300 | 10,075,481 | |||
Shinhan Financial Group | 1,936,350 | 29,420,903 | |||
Woori Finance Holdings | 1,383,210 | 5,655,511 | |||
Woori Investment & Securities Co. Ltd. | 500,310 | 4,453,363 | |||
119,257,500 | |||||
ELECTRIC – 2.13% | |||||
Korea Electric Power Corp.a,b | 1,491,120 | 23,336,733 | |||
23,336,733 | |||||
ELECTRICAL COMPONENTS & | |||||
LG Electronics Inc.b | 549,366 | 25,650,216 | |||
LS Corp. | 107,910 | 4,644,317 | |||
Samsung Digital Imaging | 85,906 | 1,317,273 | |||
Taihan Electric Wire Co. Ltd.a | 147,150 | 1,357,791 | |||
32,969,597 | |||||
ELECTRONICS – 3.08% | |||||
LG Display Co. Ltd.b | 1,040,522 | 17,302,452 | |||
Samsung Electro-Mechanics Co. Ltd.b | 343,350 | 9,123,908 | |||
Samsung SDI Co. Ltd.b | 196,200 | 7,356,700 | |||
33,783,060 | |||||
ENGINEERING & CONSTRUCTION – 3.91% | |||||
Daelim Industrial Co. Ltd.b | 166,770 | 4,393,549 |
SCHEDULESOF INVESTMENTS | 33 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI SOUTH KOREA INDEX FUND
February 28, 2009
Security | Shares | Value | |||
Daewoo Engineering & Construction Co. Ltd.b | 1,039,864 | $ | 5,804,523 | ||
Doosan Heavy Industries & Construction Co. Ltd.a,b | 186,390 | 7,268,420 | |||
GS Engineering & | 196,200 | 6,058,083 | |||
Hanjin Heavy Industries & Construction Co. Ltd.b | 186,394 | 3,014,393 | |||
Hyundai Engineering & Construction Co. Inc.b | 294,308 | 9,883,836 | |||
Kumho Industrial Co. Ltd.a | 137,340 | 1,052,328 | |||
Samsung Engineering Co. Ltd. | 186,390 | 5,457,392 | |||
42,932,524 | |||||
ENVIRONMENTAL CONTROL – 0.46% | |||||
Woongjin Coway Co. Ltd. | 284,490 | 5,036,781 | |||
5,036,781 | |||||
FOOD – 0.53% | |||||
CJ CheilJedang Corp.b | 43,164 | 3,546,569 | |||
Lotte Confectionery Co. Ltd.a,b | 3,500 | 2,270,949 | |||
5,817,518 | |||||
GAS – 0.34% | |||||
Korea Gas Corp.a | 137,340 | 3,676,431 | |||
3,676,431 | |||||
HOLDING COMPANIES - DIVERSIFIED – 1.78% | |||||
GS Holdings Corp. | 294,300 | 4,893,805 | |||
LG Corp.b | 549,361 | 14,616,191 | |||
19,509,996 | |||||
HOME BUILDERS – 0.60% | |||||
Hyundai Development Co.b | 353,167 | 6,586,616 | |||
6,586,616 | |||||
HOUSEHOLD PRODUCTS & WARES – 0.45% | |||||
LG Household & | 51,150 | 4,986,583 | |||
4,986,583 | |||||
INSURANCE – 2.19% | |||||
Dongbu Insurance Co. Ltd. | 206,010 | 1,934,492 | |||
Samsung Fire & Marine Insurance Co. Ltd. | 215,835 | 22,097,225 | |||
24,031,717 |
Security | Shares | Value | |||
INTERNET – 2.00% | |||||
LG Dacom Corp. | 235,440 | $ | 2,686,795 | ||
NHN Corp.a | 222,687 | 19,313,577 | |||
22,000,372 | |||||
IRON & STEEL – 7.55% | |||||
Dongkuk Steel Mill Co. Ltd.b | 215,821 | 3,011,783 | |||
Hyundai Steel Co.b | 323,735 | 7,304,357 | |||
POSCO | 353,160 | 72,543,463 | |||
82,859,603 | |||||
LODGING – 0.46% | |||||
Kangwon Land Inc.b | 627,842 | 5,097,250 | |||
5,097,250 | |||||
MACHINERY – 0.34% | |||||
Doosan Infracore Co. Ltd.a,b | 441,450 | 3,713,534 | |||
3,713,534 | |||||
MANUFACTURING – 0.95% | |||||
Cheil Industries Inc. | 274,680 | 6,591,604 | |||
Doosan Corp.a,b | 58,860 | 3,796,057 | |||
10,387,661 | |||||
METAL PROCESSORS & FABRICATORS – 0.21% | |||||
Taewoong Co. Ltd. | 40,040 | 2,323,808 | |||
2,323,808 | |||||
MULTIPLE UTILITIES – 0.70% | |||||
KT Freetel Co. Ltd.a | 431,640 | 7,684,233 | |||
7,684,233 | |||||
OIL & GAS – 3.39% | |||||
SK Corp. | 206,014 | 11,486,271 | |||
SK Energy Co. Ltd.b | 353,162 | 16,696,606 | |||
S-Oil Corp. | 264,870 | 9,067,933 | |||
37,250,810 | |||||
PHARMACEUTICALS – 0.57% | |||||
Yuhan Corp. | 50,031 | 6,296,696 | |||
6,296,696 | |||||
RETAIL – 2.79% | |||||
Hyundai Department Store | 88,290 | 3,235,669 | |||
Lotte Shopping Co. Ltd.b | 58,865 | 6,333,697 | |||
Shinsegae Co. Ltd. | 79,980 | 21,018,546 | |||
30,587,912 |
34 | 2009 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI SOUTH KOREA INDEX FUND
February 28, 2009
Security | Shares | Value | |||
SEMICONDUCTORS – 19.77% | |||||
Hynix Semiconductor Inc.a,b | 2,266,110 | $ | 12,767,649 | ||
Samsung Electronics | 643,460 | 200,150,258 | |||
Samsung Techwin Co. Ltd. | 206,011 | 4,090,665 | |||
217,008,572 | |||||
SHIPBUILDING – 5.14% | |||||
Daewoo Shipbuilding & Marine | 559,170 | 7,183,338 | |||
Hyundai Heavy Industries | 245,250 | 28,387,268 | |||
Hyundai Mipo Dockyard Co. Ltd. | 68,670 | 5,328,810 | |||
Samsung Heavy Industries Co. Ltd.b | 941,760 | 13,326,503 | |||
STX Shipbuilding | 274,680 | 2,149,436 | |||
56,375,355 | |||||
TELECOMMUNICATIONS – 4.72% | |||||
KT Corp. | 534,151 | 13,044,640 | |||
KT Corp. SP ADRa,b | 490,500 | 5,895,809 | |||
LG Telecom Ltd. | 794,613 | 4,606,527 | |||
SK Telecom Co. Ltd. | 124,780 | 15,256,766 | |||
SK Telecom Co. Ltd. ADR | 971,226 | 13,004,716 | |||
51,808,458 | |||||
TRANSPORTATION – 1.05% | |||||
Hanjin Shipping Co. Ltd.b | 333,540 | 3,349,538 | |||
Korea Express Co. Ltd.a | 58,860 | 3,646,364 | |||
Korea Line Corp. | 39,260 | 1,374,804 | |||
STX Pan Ocean Co. Ltd.b | 588,630 | 3,147,549 | |||
11,518,255 | |||||
TOTAL COMMON STOCKS | 1,055,560,545 | ||||
PREFERRED STOCKS – 2.30% | |||||
AUTO MANUFACTURERS – 0.23% | |||||
Hyundai Motor Co. Ltd.b | 215,820 | 2,512,153 | |||
2,512,153 | |||||
ELECTRICAL COMPONENTS & | |||||
LG Electronics Inc.b | 88,296 | 1,698,554 | |||
1,698,554 |
Security | Shares | Value | |||
SEMICONDUCTORS – 1.92% | |||||
Samsung Electronics Co. Ltd.b | 117,720 | $ | 21,072,149 | ||
21,072,149 | |||||
TOTAL PREFERRED STOCKS | 25,282,856 | ||||
RIGHTS – 0.06% | |||||
BANKS – 0.00% | |||||
Busan Banka,c | 161,802 | 18,992 | |||
18,992 | |||||
DIVERSIFIED FINANCIAL SERVICES – 0.06% | |||||
Shinhan Financial Group | 306,537 | 639,660 | |||
639,660 | |||||
TOTAL RIGHTS | 658,652 | ||||
SHORT-TERM INVESTMENTS – 16.29% | |||||
MONEY MARKET FUNDS – 16.29% | |||||
Barclays Global Investors Funds | 148,604,116 | 148,604,116 | |||
Barclays Global Investors Funds | 24,842,253 | 24,842,253 | |||
Barclays Global Investors Funds | 5,390,428 | 5,390,428 | |||
178,836,797 | |||||
TOTAL SHORT-TERM INVESTMENTS | |||||
(Cost: $178,836,797) | 178,836,797 | ||||
SCHEDULESOF INVESTMENTS | 35 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI SOUTH KOREA INDEX FUND
February 28, 2009
Value | ||||||
TOTAL INVESTMENTS IN | $ | 1,260,338,850 | ||||
Other Assets, Less Liabilities – (14.81)% | (162,547,125 | ) | ||||
NET ASSETS – 100.00% | $ | 1,097,791,725 | ||||
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 | Security valued using Level 3 inputs. 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 | All or a portion of this security represents an investment of securities lending collateral. See Note 5. |
See notes to financial statements.
36 | 2009 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited)
iSHARES® MSCI TAIWAN INDEX FUND
February 28, 2009
Security | Shares | Value | |||
COMMON STOCKS – 99.89% | |||||
AIRLINES – 0.35% | |||||
China Airlines Ltd.a | 10,504,588 | $ | 1,939,642 | ||
EVA Airways Corp.a | 11,312,396 | 2,059,655 | |||
3,999,297 | |||||
APPAREL – 0.49% | |||||
Pou Chen Corp. | 12,928,594 | 5,588,703 | |||
5,588,703 | |||||
AUTO MANUFACTURERS – 0.18% | |||||
Yulon Motor Co. Ltd. | 4,848,362 | 2,026,426 | |||
2,026,426 | |||||
AUTO PARTS & EQUIPMENT – 0.36% | |||||
Cheng Shin Rubber Industry | 4,848,084 | 4,052,619 | |||
4,052,619 | |||||
BANKS – 6.78% | |||||
Chang Hwa Commercial | 24,240,446 | 7,078,212 | |||
Chinatrust Financial Holding | 51,712,342 | 15,766,183 | |||
E.Sun Financial Holding | 18,584,913 | 4,256,310 | |||
First Financial Holding Co. Ltd. | 27,472,187 | 11,049,747 | |||
Hua Nan Financial Holdings | 19,392,824 | 9,354,568 | |||
Mega Financial Holding Co. Ltd. | 52,520,136 | 14,448,807 | |||
Taishin Financial Holdings | 25,856,439 | 3,664,010 | |||
Taiwan Business Banka | 12,928,000 | 2,309,398 | |||
Taiwan Cooperative Bank Ltd. | 21,008,650 | 8,780,794 | |||
76,708,029 | |||||
BUILDING MATERIALS – 2.16% | |||||
Asia Cement Corp. | 11,312,618 | 8,452,524 | |||
Taiwan Cement Corp. | 17,776,558 | 13,333,118 | |||
Taiwan Glass Industrial Corp. | 5,656,196 | 2,687,914 | |||
24,473,556 | |||||
CHEMICALS – 7.98% | |||||
Eternal Chemical Co. Ltd. | 4,040,066 | 1,827,378 |
Security | Shares | Value | |||
Formosa Chemicals & | 17,776,393 | $ | 17,938,475 | ||
Formosa Plastics Corp. | 25,048,111 | 34,203,939 | |||
Nan Ya Plastic Corp. | 31,512,447 | 30,085,742 | |||
Taiwan Fertilizer Co. Ltd. | 4,040,000 | 6,199,104 | |||
90,254,638 | |||||
COMMERCIAL SERVICES – 0.19% | |||||
Taiwan Secom Co. Ltd. | 1,616,610 | 2,175,133 | |||
2,175,133 | |||||
COMPUTERS – 12.12% | |||||
Acer Inc. | 16,160,516 | 21,466,239 | |||
Advantech Co. Ltd. | 2,424,293 | 3,053,659 | |||
CMC Magnetics Corp.a | 15,352,400 | 2,259,031 | |||
Compal Electronics Inc. | 22,624,348 | 13,083,086 | |||
Foxconn Technology Co. Ltd. | 3,233,106 | 7,497,004 | |||
HTC Corp. | 4,040,788 | 44,535,831 | |||
Innolux Display Corp. | 12,120,912 | 10,392,377 | |||
Inotera Memories Inc.a | 4,848,000 | 1,665,431 | |||
Inventec Co. Ltd. | 8,888,652 | 2,633,656 | |||
Lite-On Technology Corp. | 12,928,893 | 7,661,511 | |||
MiTAC International Corp. | 7,272,585 | 2,664,904 | |||
Qisda Corp. | 8,888,211 | 1,636,094 | |||
Quanta Computer Inc. | 12,120,387 | 12,387,038 | |||
Wistron Corp. | 8,080,396 | 6,187,842 | |||
137,123,703 | |||||
DIVERSIFIED FINANCIAL SERVICES – 3.89% | |||||
Fubon Financial Holding | 26,664,000 | 14,426,795 | |||
KGI Securities Co. Ltd. | 12,928,000 | 2,757,213 | |||
Polaris Securities Co. Ltd. | 12,928,991 | 3,793,772 | |||
SinoPac Financial Holdings | 38,784,193 | 6,484,110 | |||
Yuanta Financial Holding | 45,248,076 | 16,515,551 | |||
43,977,441 | |||||
ELECTRICAL COMPONENTS & | |||||
Delta Electronics Inc. | 9,696,648 | 15,461,784 | |||
Pacific Electric Wire & Cable | 197 | – | |||
Tatung Co. Ltd.a | 22,624,120 | 3,432,656 | |||
Walsin Lihwa Corp. | 16,160,069 | 2,521,288 | |||
21,415,728 |
SCHEDULESOF INVESTMENTS | 37 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI TAIWAN INDEX FUND
February 28, 2009
Security | Shares | Value | |||
ELECTRONICS – 14.62% | |||||
ASUSTeK Computer Inc. | 24,240,243 | $ | 23,212,176 | ||
AU Optronics Corp. | 46,056,884 | 34,280,778 | |||
Cheng Uei Precision Industry | 1,616,325 | 1,860,105 | |||
Chi Mei Optoelectronics Corp. | 28,280,629 | 9,148,508 | |||
Chunghwa Picture Tubes Ltd. | 45,248,105 | 3,860,108 | |||
HannStar Display Corp. | 27,472,675 | 3,248,133 | |||
Hon Hai Precision Industry | 37,168,589 | 74,163,739 | |||
Kinsus Interconnect | 1,616,043 | 1,924,549 | |||
Nan Ya Printed Circuit | 808,739 | 1,622,965 | |||
Synnex Technology | 5,656,502 | 6,509,637 | |||
Tripod Technology Corp. | 2,424,682 | 2,984,737 | |||
Unimicron Technology Corp. | 5,656,794 | 2,558,646 | |||
Ya Hsin Industrial Co. Ltd.b | 6,845,461 | 19 | |||
165,374,100 | |||||
ENERGY - ALTERNATE SOURCES – 0.20% | |||||
Motech Industries Inc. | 1,035,408 | 2,312,005 | |||
2,312,005 | |||||
FOOD – 1.23% | |||||
Uni-President Enterprises Co. | 18,584,908 | 13,886,209 | |||
13,886,209 | |||||
HOME FURNISHINGS – 0.28% | |||||
Teco Electric and Machinery | 11,312,092 | 3,134,737 | |||
3,134,737 | |||||
INSURANCE – 3.11% | |||||
Cathay Financial Holding | 37,168,200 | 29,846,070 | |||
Shin Kong Financial Holding | 25,856,490 | 5,329,480 | |||
35,175,550 | |||||
INVESTMENT COMPANIES – 0.87% | |||||
China Development Financial | 57,368,496 | 9,788,192 | |||
9,788,192 |
Security | Shares | Value | |||
IRON & STEEL – 3.87% | |||||
China Steel Corp. | 59,792,484 | $ | 38,256,645 | ||
Feng Hsin Iron & Steel Co. Ltd. | 2,527,050 | 2,387,319 | |||
Tung Ho Steel Enterprise Corp. | 4,848,000 | 3,115,744 | |||
43,759,708 | |||||
MANUFACTURING – 0.51% | |||||
Largan Precision Co. Ltd. | 808,210 | 5,761,112 | |||
5,761,112 | |||||
METAL FABRICATE & HARDWARE – 0.49% | |||||
Catcher Technology Co. Ltd. | 3,232,130 | 5,486,890 | |||
5,486,890 | |||||
OIL & GAS – 1.06% | |||||
Formosa Petrochemical Corp. | 7,272,000 | 11,970,285 | |||
11,970,285 | |||||
RETAIL – 0.77% | |||||
Far Eastern Department Stores | 4,848,500 | 1,908,503 | |||
President Chain Store Corp. | 3,237,640 | 6,821,645 | |||
8,730,148 | |||||
SEMICONDUCTORS – 27.32% | |||||
Advanced Semiconductor Engineering Inc. | 26,664,372 | 9,312,664 | |||
Epistar Corp. | 3,232,047 | 4,043,355 | |||
Everlight Electronics Co. Ltd. | 1,665,592 | 2,584,346 | |||
Formosa Sumco | 1,616,000 | 2,803,475 | |||
Macronix International Co. Ltd. | 17,776,636 | 5,776,013 | |||
MediaTek Inc. | 5,815,970 | 50,614,914 | |||
Nanya Technology Corp.a | 16,160,690 | 2,965,519 | |||
Novatek Microelectronics | 3,232,980 | 3,970,481 | |||
Powerchip Semiconductor Corp.a | 47,672,901 | 5,404,426 | |||
Powertech Technology Inc. | 3,232,915 | 4,997,707 | |||
ProMOS Technologies Inc.a | 32,448,000 | 1,096,106 | |||
Realtek Semiconductor Corp. | 2,424,595 | 2,797,223 | |||
Richtek Technology Corp. | 808,700 | 3,507,380 | |||
Siliconware Precision Industries | 17,776,214 | 15,342,967 | |||
Sino-American Silicon | 1,124,324 | 2,153,279 |
38 | 2009 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI TAIWAN INDEX FUND
February 28, 2009
Security | Shares | Value | |||
Taiwan Semiconductor Manufacturing Co. Ltd. | 130,896,323 | $ | 168,437,934 | ||
Transcend | 1,727,015 | 3,500,355 | |||
United Microelectronics Corp. | 82,416,501 | 18,497,498 | |||
Vanguard International Semiconductor Corp. | 4,848,416 | 1,201,989 | |||
309,007,631 | |||||
TELECOMMUNICATIONS – 7.09% | |||||
Chunghwa Telecom | 35,552,677 | 54,858,489 | |||
Compal Communications Inc. | 1,711,810 | 1,117,309 | |||
Far EasTone Telecommunications Co. Ltd. | 9,696,259 | 9,423,815 | |||
Taiwan Cellular Corp. | 11,312,677 | 14,767,705 | |||
80,167,318 | |||||
TEXTILES – 1.13% | |||||
Far Eastern Textile Ltd. | 16,968,195 | 10,152,306 | |||
Formosa Taffeta Co. Ltd. | 5,656,515 | 2,615,196 | |||
12,767,502 | |||||
TRANSPORTATION – 0.95% | |||||
Evergreen Marine | 7,272,467 | 2,768,957 | |||
U-Ming Marine | 2,424,800 | 3,120,243 | |||
Wan Hai Lines Ltd. | 7,272,433 | 2,768,944 | |||
Yang Ming Marine | 8,080,305 | 2,074,928 | |||
10,733,072 | |||||
TOTAL COMMON STOCKS | 1,129,849,732 | ||||
SHORT-TERM INVESTMENTS – 0.08% | |||||
MONEY MARKET FUNDS – 0.08% | |||||
Barclays Global Investors Funds | 962,952 | 962,952 | |||
962,952 | |||||
TOTAL SHORT-TERM INVESTMENTS | 962,952 | ||||
Value | |||||
TOTAL INVESTMENTS IN | $ | 1,130,812,684 | |||
Other Assets, Less Liabilities – 0.03% | 293,191 | ||||
NET ASSETS – 100.00% | $ | 1,131,105,875 | |||
a | Non-income earning security. |
b | Security valued using Level 3 inputs. See Note 1. |
c | Affiliated issuer. See Note 2. |
d | The rate quoted is the annualized seven-day yield of the fund at period end. |
See notes to financial statements.
SCHEDULESOF INVESTMENTS | 39 |
Table of Contents
Schedule of Investments (Unaudited)
iSHARES® MSCI THAILAND INVESTABLE MARKET INDEX FUND
February 28, 2009
Security | Shares | Value | |||
COMMON STOCKS – 99.50% | |||||
AGRICULTURE – 1.29% | |||||
Charoen Pokphand Foods | 3,139,500 | $ | 293,298 | ||
293,298 | |||||
AUTO PARTS & EQUIPMENT – 0.14% | |||||
Thai Stanley Electric | 23,100 | 31,126 | |||
31,126 | |||||
BANKS – 27.47% | |||||
Bangkok Bank PCL NVDR | 1,001,700 | 2,062,649 | |||
Bank of Ayudhya PCL NVDR | 3,019,800 | 738,674 | |||
Kasikornbank PCL NVDR | 1,062,600 | 1,306,957 | |||
Kiatnakin Bank PCL NVDR | 241,500 | 68,085 | |||
Krung Thai Bank PCL NVDR | 3,423,000 | 391,687 | |||
Siam City Bank PCL NVDRa | 600,600 | 124,502 | |||
Siam Commercial Bank | 821,100 | 1,270,912 | |||
TMB Bank PCL NVDRa | 20,592,600 | 278,894 | |||
6,242,360 | |||||
BUILDING MATERIALS – 3.89% | |||||
Dynasty Ceramic PCL NVDR | 81,900 | 28,070 | |||
Siam Cement PCL NVDR | 298,200 | 824,212 | |||
TPI Polene PCL NVDRa | 394,800 | 31,427 | |||
883,709 | |||||
CHEMICALS – 3.79% | |||||
Indorama Polymers PCL NVDR | 378,200 | 44,113 | |||
IRPC PCL NVDR | 8,383,200 | 433,294 | |||
PTT Chemical PCL NVDR | 296,100 | 241,430 | |||
Thai Plastic & Chemical | 409,500 | 141,480 | |||
860,317 | |||||
COAL – 3.46% | |||||
Banpu PCL NVDR | 134,400 | 787,529 | |||
787,529 | |||||
COMMERCIAL SERVICES – 0.84% | |||||
Bangkok Expressway | 438,900 | 191,670 | |||
191,670 | |||||
COMPUTERS – 0.24% | |||||
Cal-Comp Electronics (Thailand) | 1,633,800 | 55,092 | |||
55,092 |
Security | Shares | Value | |||
DIVERSIFIED FINANCIAL SERVICES – 1.43% | |||||
Kim Eng Securities (Thailand) | 298,200 | $ | 59,755 | ||
Phatra Securities PCL NVDR | 113,400 | 35,731 | |||
Thanachart Capital PCL NVDR | 806,400 | 179,423 | |||
TISCO Financial Group PCL NVDR | 176,400 | 50,219 | |||
325,128 | |||||
ELECTRIC – 3.20% | |||||
Glow Energy PCL NVDR | 552,300 | 317,519 | |||
Ratchaburi Electricity Generating Holding PCL NVDR | 390,600 | 410,249 | |||
727,768 | |||||
ELECTRONICS – 1.20% | |||||
Delta Electronics (Thailand) | 426,300 | 124,897 | |||
Hana Microelectronics PCL NVDR | 472,500 | 147,575 | |||
272,472 | |||||
ENGINEERING & CONSTRUCTION – 1.20% | |||||
Airports of Thailand PCL NVDR | 436,800 | 194,375 | |||
Italian-Thai Development | 1,225,400 | 78,577 | |||
272,952 | |||||
ENTERTAINMENT – 0.30% | |||||
Major Cineplex Group PCL NVDR | 392,700 | 69,466 | |||
69,466 | |||||
FOOD – 1.42% | |||||
Khon Kaen Sugar | |||||
Industry PCL NVDR | 506,100 | 87,427 | |||
Thai Union Frozen Products | 352,800 | 188,199 | |||
Thai Vegetable Oil PCL NVDR | 193,200 | 46,725 | |||
322,351 | |||||
HEALTH CARE - SERVICES – 0.71% | |||||
Bumrungrad Hospital PCL NVDR | 275,100 | 161,197 | |||
161,197 | |||||
HOME BUILDERS – 0.92% | |||||
Asian Property | |||||
Development PCL NVDR | 739,200 | 42,088 | |||
Land and Houses PCL NVDR | 2,247,000 | 167,687 | |||
209,775 |
40 | 2009 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI THAILAND INVESTABLE MARKET INDEX FUND
February 28, 2009
Security | Shares | Value | |||
IRON & STEEL – 0.85% | |||||
G Steel PCL NVDR | 5,751,900 | $ | 50,874 | ||
Sahaviriya Steel Industries | 5,130,300 | 51,048 | |||
Tata Steel (Thailand) | 2,028,600 | 45,977 | |||
Thainox Stainless PCL NVDR | 2,012,500 | 44,500 | |||
192,399 | |||||
LODGING – 0.06% | |||||
Central Plaza Hotel PCL NVDR | 149,100 | 12,775 | |||
12,775 | |||||
MEDIA – 2.15% | |||||
BEC World PCL NVDR | 867,300 | 462,656 | |||
MCOT PCL NVDR | 71,400 | 26,247 | |||
488,903 | |||||
OIL & GAS – 25.11% | |||||
Esso (Thailand) PCL NVDR | 1,068,900 | 132,357 | |||
PTT Exploration and Production | 930,300 | 2,288,466 | |||
PTT PCL NVDR | 645,100 | 2,781,526 | |||
Thai Oil PCL NVDR | 758,100 | 502,886 | |||
5,705,235 | |||||
REAL ESTATE – 2.52% | |||||
Amata Corp. PCL NVDR | 441,000 | 42,662 | |||
Bangkok Land PCL NVDRa | 7,337,400 | 36,504 | |||
Central Pattana PCL NVDR | 655,200 | 224,557 | |||
Erawan Group PCL | 292,100 | 10,253 | |||
Hemaraj Land and Development PCL NVDR | 3,954,300 | 55,741 | |||
LPN Development PCL NVDR | 468,300 | 31,582 | |||
Preuksa Real Estate | 548,100 | 59,688 | |||
Quality House PCL NVDR | 3,028,200 | 66,959 | |||
Ticon Industrial Connection | 262,500 | 43,895 | |||
571,841 | |||||
RETAIL – 5.69% | |||||
CP All PCL NVDR | 2,024,400 | 677,038 | |||
Home Product Center | 399,000 | 40,584 | |||
PTT Aromatics & Refining | 1,152,900 | 318,657 |
Security | Shares | Value | |||
Robinson Department Store | 428,400 | $ | 74,597 | ||
Siam Makro PCL NVDR | 94,500 | 181,530 | |||
1,292,406 | |||||
TELECOMMUNICATIONS – 9.80% | |||||
Advanced Info Service | 669,900 | 1,490,518 | |||
Samart Corp. PCL NVDR | 331,800 | 47,688 | |||
Thaicom PCL NVDRa | 382,200 | 33,593 | |||
Total Access Communication | 711,900 | 590,299 | |||
True Corp. PCL NVDRa | 1,589,700 | 65,908 | |||
2,228,006 | |||||
TRANSPORTATION – 1.11% | |||||
Precious Shipping PCL NVDR | 361,200 | 105,824 | |||
Regional Container Lines | 180,600 | 29,950 | |||
Thoresen Thai Agencies | 307,230 | 116,336 | |||
252,110 | |||||
WATER – 0.71% | |||||
Thai Tap Water Supply | 1,209,600 | 161,146 | |||
161,146 | |||||
TOTAL COMMON STOCKS | 22,611,031 | ||||
WARRANTS – 0.00% | |||||
REAL ESTATE – 0.00% | |||||
Bangkok Land PCL NVDR | 1,083,411 | 898 | |||
Ticon Industrial Connection | 79,167 | – | |||
898 | |||||
TOTAL WARRANTS | 898 |
SCHEDULESOF INVESTMENTS | 41 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI THAILAND INVESTABLE MARKET INDEX FUND
February 28, 2009
Security | Shares | Value | |||
SHORT-TERM INVESTMENTS – 0.25% | |||||
MONEY MARKET FUNDS – 0.25% | |||||
Barclays Global Investors Funds | 56,510 | $ | 56,510 | ||
56,510 | |||||
TOTAL SHORT-TERM INVESTMENTS | |||||
(Cost: $56,510) | 56,510 | ||||
TOTAL INVESTMENTS IN | |||||
(Cost: $48,099,847) | 22,668,439 | ||||
Other Assets, Less Liabilities – 0.25% | 55,694 | ||||
NET ASSETS – 100.00% | $ | 22,724,133 | |||
NVDR – Non-Voting Depositary Receipts
a | Non-income earning security. |
b | Security valued using Level 3 inputs. 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.
42 | 2009 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Statements of Assets and Liabilities (Unaudited)
iSHARES®, INC.
February 28, 2009
iShares MSCI | ||||||||||||||||
Australia Index Fund | Hong Kong Index Fund | Japan Small Cap Index Fund | Malaysia Index Fund | |||||||||||||
ASSETS | ||||||||||||||||
Investments, at cost: | ||||||||||||||||
Unaffiliated issuers | $ | 974,524,471 | $ | 1,961,807,436 | $ | 31,520,382 | $ | 230,237,859 | ||||||||
Affiliated issuers (Note 2) | 14,637,845 | 128,282,547 | 782,927 | 76 | ||||||||||||
Total cost of investments | $ | 989,162,316 | $ | 2,090,089,983 | $ | 32,303,309 | $ | 230,237,935 | ||||||||
Investments in securities, at fair value (including | ||||||||||||||||
Unaffiliated issuers | $ | 425,670,155 | $ | 1,059,171,762 | $ | 22,272,667 | $ | 300,665,274 | ||||||||
Affiliated issuers (Note 2) | 14,637,845 | 128,282,547 | 782,927 | 76 | ||||||||||||
Total fair value of investments | 440,308,000 | 1,187,454,309 | 23,055,594 | 300,665,350 | ||||||||||||
Foreign currencies, at valueb | 692,136 | 1,169,850 | 44,029 | 427,288 | ||||||||||||
Receivables: | ||||||||||||||||
Investment securities sold | 1,729,498 | 3,864,452 | 72 | 1,702,991 | ||||||||||||
Dividends and interest | 5,269,773 | 420,866 | 56,796 | 914,686 | ||||||||||||
Total Assets | 447,999,407 | 1,192,909,477 | 23,156,491 | 303,710,315 | ||||||||||||
LIABILITIES | ||||||||||||||||
Payables: | ||||||||||||||||
Investment securities purchased | 1,818,614 | 2,277,937 | – | 1,280,415 | ||||||||||||
Collateral for securities on loan (Note 5) | 14,249,063 | 128,222,123 | 774,258 | – | ||||||||||||
Capital shares redeemed | – | 37,109 | – | – | ||||||||||||
Investment advisory fees (Note 2) | 196,764 | 481,959 | 10,601 | 137,883 | ||||||||||||
Total Liabilities | 16,264,441 | 131,019,128 | 784,859 | 1,418,298 | ||||||||||||
NET ASSETS | $ | 431,734,966 | $ | 1,061,890,349 | $ | 22,371,632 | $ | 302,292,017 | ||||||||
Net assets consist of: | ||||||||||||||||
Paid-in capital | $ | 1,190,753,108 | $ | 2,139,686,896 | $ | 33,293,357 | $ | 336,641,596 | ||||||||
Distributions in excess of net investment income | (6,926,921 | ) | (2,542,030 | ) | (18,597 | ) | (96,214 | ) | ||||||||
Accumulated net realized loss | (203,187,368 | ) | (172,618,547 | ) | (1,649,492 | ) | (104,662,202 | ) | ||||||||
Net unrealized appreciation (depreciation) | (548,903,853 | ) | (902,635,970 | ) | (9,253,636 | ) | 70,408,837 | |||||||||
NET ASSETS | $ | 431,734,966 | $ | 1,061,890,349 | $ | 22,371,632 | $ | 302,292,017 | ||||||||
Shares outstandingc | 38,000,000 | 108,375,000 | 700,000 | 43,200,000 | ||||||||||||
Net asset value per share | $ | 11.36 | $ | 9.80 | $ | 31.96 | $ | 7.00 | ||||||||
a | Securities on loan with market values of $13,505,437, $121,299,172, $724,893 and $–, respectively. See Note 5. |
b | Cost of foreign currencies: $701,063, $1,169,790, $47,096 and $432,302, respectively. |
c | $0.001 par value, number of shares authorized: 127.8 million, 250 million, 500 million and 300 million, respectively. |
See notes to financial statements.
FINANCIAL STATEMENTS | 43 |
Table of Contents
Statements of Assets and Liabilities (Unaudited) (Continued)
iSHARES®, INC.
February 28, 2009
iShares MSCI | ||||||||||||||||
Pacific ex-Japan Index Fund | Singapore Index Fund | South Korea Index Fund | Taiwan Index Fund | |||||||||||||
ASSETS | ||||||||||||||||
Investments, at cost: | ||||||||||||||||
Unaffiliated issuers | $ | 2,810,713,711 | $ | 1,280,434,098 | $ | 1,378,326,495 | $ | 1,545,366,175 | ||||||||
Affiliated issuers (Note 2) | 154,132,874 | 164,037,753 | 178,836,797 | 962,952 | ||||||||||||
Total cost of investments | $ | 2,964,846,585 | $ | 1,444,471,851 | $ | 1,557,163,292 | $ | 1,546,329,127 | ||||||||
Investments in securities, at fair value (including securities on loana) (Note 1): | ||||||||||||||||
Unaffiliated issuers | $ | 1,762,147,915 | $ | 616,625,285 | $ | 1,081,502,053 | $ | 1,129,849,732 | ||||||||
Affiliated issuers (Note 2) | 154,132,874 | 164,037,753 | 178,836,797 | 962,952 | ||||||||||||
Total fair value of investments | 1,916,280,789 | 780,663,038 | 1,260,338,850 | 1,130,812,684 | ||||||||||||
Foreign currencies, at valueb | 4,261,006 | 7,158,927 | – | – | ||||||||||||
Receivables: | ||||||||||||||||
Investment securities sold | 4,722,052 | 626,198 | 65,320,079 | 9,000,048 | ||||||||||||
Dividends and interest | 13,858,001 | 712,389 | 11,588,350 | 127 | ||||||||||||
Capital shares sold | 387,168 | – | – | – | ||||||||||||
Total Assets | 1,939,509,016 | 789,160,552 | 1,337,247,279 | 1,139,812,859 | ||||||||||||
LIABILITIES | ||||||||||||||||
Payables: | ||||||||||||||||
Investment securities purchased | 4,559,039 | – | 3,299,977 | 3,876,387 | ||||||||||||
Collateral for securities on loan (Note 5) | 153,354,532 | 163,976,107 | 173,446,369 | – | ||||||||||||
Capital shares redeemed | – | 929,323 | 61,997,927 | 4,199,724 | ||||||||||||
Investment advisory fees (Note 2) | 684,376 | 312,995 | 711,281 | 630,873 | ||||||||||||
Total Liabilities | 158,597,947 | 165,218,425 | 239,455,554 | 8,706,984 | ||||||||||||
NET ASSETS | $ | 1,780,911,069 | $ | 623,942,127 | $ | 1,097,791,725 | $ | 1,131,105,875 | ||||||||
Net assets consist of: | ||||||||||||||||
Paid-in capital | $ | 3,021,632,418 | $ | 1,521,262,970 | $ | 2,197,195,621 | $ | 2,520,286,907 | ||||||||
Undistributed (distributions in excess of) net investment income | 5,155,969 | (4,239,871 | ) | 8,726,446 | (1,795,126 | ) | ||||||||||
Accumulated net realized loss | (197,163,368 | ) | (229,163,059 | ) | (808,904,444 | ) | (971,867,720 | ) | ||||||||
Net unrealized depreciation on investments and translation of assets and liabilities in foreign currencies | (1,048,713,950 | ) | (663,917,913 | ) | (299,225,898 | ) | (415,518,186 | ) | ||||||||
NET ASSETS | $ | 1,780,911,069 | $ | 623,942,127 | $ | 1,097,791,725 | $ | 1,131,105,875 | ||||||||
Shares outstandingc | 81,600,000 | 107,500,000 | 49,050,000 | 161,600,000 | ||||||||||||
Net asset value per share | $ | 21.82 | $ | 5.80 | $ | 22.38 | $ | 7.00 | ||||||||
a | Securities on loan with market values of $144,797,845, $155,321,882, $163,819,175 and $–, respectively. See Note 5. |
b | Cost of foreign currencies: $4,305,371, $7,254,451, $– and $–, respectively. |
c | $0.001 par value, number of shares authorized: 1 billion, 300 million, 200 million and 400 million, respectively. |
See notes to financial statements.
44 | 2009 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Statements of Assets and Liabilities (Unaudited) (Continued)
iSHARES®, INC.
February 28, 2009
iShares MSCI | ||||
Thailand Investable Market Index Fund | ||||
ASSETS | ||||
Investments, at cost: | ||||
Unaffiliated issuers | $ | 48,043,337 | ||
Affiliated issuers (Note 2) | 56,510 | |||
Total cost of investments | $ | 48,099,847 | ||
Investments in securities, at fair value (Note 1): | ||||
Unaffiliated issuers | $ | 22,611,929 | ||
Affiliated issuers (Note 2) | 56,510 | |||
Total fair value of investments | 22,668,439 | |||
Receivables: | ||||
Investment securities sold | 1,102,357 | |||
Dividends and interest | 95,064 | |||
Total Assets | 23,865,860 | |||
LIABILITIES | ||||
Payables: | ||||
Investment securities purchased | 1,129,067 | |||
Investment advisory fees (Note 2) | 12,660 | |||
Total Liabilities | 1,141,727 | |||
NET ASSETS | $ | 22,724,133 | ||
Net assets consist of: | ||||
Paid-in capital | $ | 65,419,443 | ||
Undistributed net investment income | 86,775 | |||
Accumulated net realized loss | (17,348,575 | ) | ||
Net unrealized depreciation on investments and translation of assets and liabilities in foreign currencies | (25,433,510 | ) | ||
NET ASSETS | $ | 22,724,133 | ||
Shares outstandinga | 1,050,000 | |||
Net asset value per share | $ | 21.64 | ||
a | $0.001 par value, number of shares authorized: 200 million. |
See notes to financial statements.
FINANCIAL STATEMENTS | 45 |
Table of Contents
Statements of Operations (Unaudited)
iSHARES®, INC.
Six months ended February 28, 2009
iShares MSCI | ||||||||||||||||
Australia Index Fund | Hong Kong Index Fund | Japan Small Cap Index Fund | Malaysia Index Fund | |||||||||||||
NET INVESTMENT INCOME | ||||||||||||||||
Dividends from unaffiliated issuersa | $ | 18,192,086 | $ | 34,467,877 | $ | 281,411 | $ | 6,739,612 | ||||||||
Interest from affiliated issuers (Note 2) | 551 | 1,743 | 23 | 178 | ||||||||||||
Securities lending income from affiliated issuers (Note 2) | 129,867 | 483,052 | 8,519 | – | ||||||||||||
Total investment income | 18,322,504 | 34,952,672 | 289,953 | 6,739,790 | ||||||||||||
EXPENSES | ||||||||||||||||
Investment advisory fees (Note 2) | 1,652,169 | 3,375,298 | 73,256 | 903,793 | ||||||||||||
Total expenses | 1,652,169 | 3,375,298 | 73,256 | 903,793 | ||||||||||||
Net investment income | 16,670,335 | 31,577,374 | 216,697 | 5,835,997 | ||||||||||||
NET REALIZED AND UNREALIZED GAIN (LOSS) | ||||||||||||||||
Net realized gain (loss) from: | ||||||||||||||||
Investments in unaffiliated issuers | (101,650,584 | ) | (102,430,565 | ) | (352,343 | ) | (16,360,453 | ) | ||||||||
In-kind redemptions | (48,434,352 | ) | (2,164,993 | ) | (1,231,776 | ) | – | |||||||||
Foreign currency transactions | (2,173,383 | ) | 55,774 | 37,045 | (123,229 | ) | ||||||||||
Net realized loss | (152,258,319 | ) | (104,539,784 | ) | (1,547,074 | ) | (16,483,682 | ) | ||||||||
Net change in unrealized appreciation (depreciation) on: | ||||||||||||||||
Investments | (352,245,995 | ) | (552,907,676 | ) | (7,251,143 | ) | (88,114,429 | ) | ||||||||
Translation of assets and liabilities in foreign currencies | 123,509 | (3,224 | ) | (6,011 | ) | 16,226 | ||||||||||
Net change in unrealized appreciation (depreciation) | (352,122,486 | ) | (552,910,900 | ) | (7,257,154 | ) | (88,098,203 | ) | ||||||||
Net realized and unrealized loss | (504,380,805 | ) | (657,450,684 | ) | (8,804,228 | ) | (104,581,885 | ) | ||||||||
NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS | $ | (487,710,470 | ) | $ | (625,873,310 | ) | $ | (8,587,531 | ) | $ | (98,745,888 | ) | ||||
a | Net of foreign withholding tax of $182,058, $–, $21,115 and $–, respectively. |
See notes to financial statements.
46 | 2009 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Statements of Operations (Unaudited) (Continued)
iSHARES®, INC.
Six months ended February 28, 2009
iShares MSCI | ||||||||||||||||
Pacific ex-Japan Index Fund | Singapore Index Fund | South Korea Index Fund | Taiwan Index Fund | |||||||||||||
NET INVESTMENT INCOME | ||||||||||||||||
Dividends from unaffiliated issuersa | $ | 57,263,504 | $ | 11,341,768 | $ | 14,069,248 | $ | 9,541,962 | ||||||||
Interest from unaffiliated issuers | – | – | – | 2,179 | ||||||||||||
Interest from affiliated issuers (Note 2) | 2,968 | 877 | 4,392 | 13,867 | ||||||||||||
Securities lending income from affiliated issuers | 744,501 | 523,776 | 2,218,132 | – | ||||||||||||
Total investment income | 58,010,973 | 11,866,421 | 16,291,772 | 9,558,008 | ||||||||||||
EXPENSES | ||||||||||||||||
Investment advisory fees (Note 2) | 5,096,242 | 2,459,861 | 4,492,166 | 5,307,974 | ||||||||||||
Foreign taxes (Note 1) | – | – | 28 | 705,508 | ||||||||||||
Total expenses | 5,096,242 | 2,459,861 | 4,492,194 | 6,013,482 | ||||||||||||
Net investment income | 52,914,731 | 9,406,560 | 11,799,578 | 3,544,526 | ||||||||||||
NET REALIZED AND UNREALIZED GAIN | ||||||||||||||||
Net realized gain (loss) from: | ||||||||||||||||
Investments in unaffiliated issuers | (149,869,328 | ) | (134,439,095 | ) | (467,503,410 | ) | (590,695,010 | ) | ||||||||
In-kind redemptions | 43,936,305 | (46,482,268 | ) | – | – | |||||||||||
Foreign currency transactions | (5,197,887 | ) | (915,054 | ) | (125,713 | ) | (1,504,590 | ) | ||||||||
Net realized loss | (111,130,910 | ) | (181,836,417 | ) | (467,629,123 | ) | (592,199,600 | ) | ||||||||
Net change in unrealized appreciation (depreciation) on: | ||||||||||||||||
Investments | (1,406,095,989 | ) | (479,873,654 | ) | (546,971,685 | ) | (557,791,027 | ) | ||||||||
Translation of assets and liabilities in foreign | 184,354 | (126,296 | ) | (2,457,536 | ) | 420,737 | ||||||||||
Net change in unrealized appreciation (depreciation) | (1,405,911,635 | ) | (479,999,950 | ) | (549,429,221 | ) | (557,370,290 | ) | ||||||||
Net realized and unrealized loss | (1,517,042,545 | ) | (661,836,367 | ) | (1,017,058,344 | ) | (1,149,569,890 | ) | ||||||||
NET DECREASE IN NET ASSETS RESULTING | $ | (1,464,127,814 | ) | $ | (652,429,807 | ) | $ | (1,005,258,766 | ) | $ | (1,146,025,364 | ) | ||||
a | Net of foreign withholding tax of $606,866, $–, $2,461,624 and $2,379,034, respectively. |
See notes to financial statements.
FINANCIAL STATEMENTS | 47 |
Table of Contents
Statements of Operations (Unaudited) (Continued)
iSHARES®, INC.
Six months ended February 28, 2009
iShares MSCI | ||||
Thailand Investable Market Index Fund | ||||
NET INVESTMENT INCOME | ||||
Dividends from unaffiliated issuersa | $ | 543,050 | ||
Interest from affiliated issuers (Note 2) | 243 | |||
Total investment income | 543,293 | |||
EXPENSES | ||||
Investment advisory fees (Note 2) | 92,571 | |||
Total expenses | 92,571 | |||
Net investment income | 450,722 | |||
NET REALIZED AND UNREALIZED GAIN (LOSS) | ||||
Net realized gain (loss) from: | ||||
Investments in unaffiliated issuers | (3,525,337 | ) | ||
In-kind redemptions | (13,173,058 | ) | ||
Foreign currency transactions | (5,391 | ) | ||
Net realized loss | (16,703,786 | ) | ||
Net change in unrealized appreciation (depreciation) on: | ||||
Investments | (4,378,584 | ) | ||
Translation of assets and liabilities in foreign currencies | 922 | |||
Net change in unrealized appreciation (depreciation) | (4,377,662 | ) | ||
Net realized and unrealized loss | (21,081,448 | ) | ||
NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS | $ | (20,630,726 | ) | |
a | Net of foreign withholding tax of $60,428. |
See notes to financial statements.
48 | 2009 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Statements of Changes in Net Assets
iSHARES®, INC.
iShares MSCI Australia Index Fund | iShares MSCI Hong Kong Index Fund | |||||||||||||||
Six months ended February 28, 2009 (Unaudited) | Year ended August 31, 2008 | Six months ended February 28, 2009 (Unaudited) | Year ended August 31, 2008 | |||||||||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||||||||||
OPERATIONS: | ||||||||||||||||
Net investment income | $ | 16,670,335 | $ | 53,814,337 | $ | 31,577,374 | $ | 50,723,883 | ||||||||
Net realized gain (loss) | (152,258,319 | ) | 153,528,689 | (104,539,784 | ) | 231,716,450 | ||||||||||
Net change in unrealized | (352,122,486 | ) | (365,807,308 | ) | (552,910,900 | ) | (582,947,008 | ) | ||||||||
Net decrease in net assets resulting from operations | (487,710,470 | ) | (158,464,282 | ) | (625,873,310 | ) | (300,506,675 | ) | ||||||||
DISTRIBUTIONS TO SHAREHOLDERS: |
| |||||||||||||||
From net investment income | (33,295,338 | ) | (81,749,137 | ) | (41,093,456 | ) | (69,181,586 | ) | ||||||||
Total distributions to shareholders | (33,295,338 | ) | (81,749,137 | ) | (41,093,456 | ) | (69,181,586 | ) | ||||||||
CAPITAL SHARE TRANSACTIONS: |
| |||||||||||||||
Proceeds from shares sold | 188,224,807 | 709,635,261 | 222,481,817 | 1,671,011,829 | ||||||||||||
Cost of shares redeemed | (294,576,279 | ) | (874,442,072 | ) | (168,809,100 | ) | (1,071,448,062 | ) | ||||||||
Net increase (decrease) in net assets from capital | (106,351,472 | ) | (164,806,811 | ) | 53,672,717 | 599,563,767 | ||||||||||
INCREASE (DECREASE) IN NET ASSETS | (627,357,280 | ) | (405,020,230 | ) | (613,294,049 | ) | 229,875,506 | |||||||||
NET ASSETS | ||||||||||||||||
Beginning of period | 1,059,092,246 | 1,464,112,476 | 1,675,184,398 | 1,445,308,892 | ||||||||||||
End of period | $ | 431,734,966 | $ | 1,059,092,246 | $ | 1,061,890,349 | $ | 1,675,184,398 | ||||||||
Undistributed (distributions in excess of) net investment income included in net assets at end of period | $ | (6,926,921 | ) | $ | 9,698,082 | $ | (2,542,030 | ) | $ | 6,974,052 | ||||||
SHARES ISSUED AND REDEEMED | ||||||||||||||||
Shares sold | 12,000,000 | 23,200,000 | 18,375,000 | 82,050,000 | ||||||||||||
Shares redeemed | (18,200,000 | ) | (32,000,000 | ) | (15,525,000 | ) | (55,500,000 | ) | ||||||||
Net increase (decrease) in shares outstanding | (6,200,000 | ) | (8,800,000 | ) | 2,850,000 | 26,550,000 | ||||||||||
See notes to financial statements.
FINANCIAL STATEMENTS | 49 |
Table of Contents
Statements of Changes in Net Assets (Continued)
iSHARES®, INC.
iShares MSCI Japan Small Cap Index Fund | iShares MSCI Malaysia Index Fund | |||||||||||||||
Six months ended February 28, 2009 (Unaudited) | Period from December 20, 2007a August 31, 2008 | Six months ended February 28, 2009 (Unaudited) | Year ended August 31, 2008 | |||||||||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||||||||||
OPERATIONS: | ||||||||||||||||
Net investment income | $ | 216,697 | $ | 91,139 | $ | 5,835,997 | $ | 27,165,781 | ||||||||
Net realized loss | (1,547,074 | ) | (107,449 | ) | (16,483,682 | ) | (42,591,881 | ) | ||||||||
Net change in unrealized appreciation (depreciation) | (7,257,154 | ) | (1,996,482 | ) | (88,098,203 | ) | (98,392,878 | ) | ||||||||
Net decrease in net assets resulting from operations | (8,587,531 | ) | (2,012,792 | ) | (98,745,888 | ) | (113,818,978 | ) | ||||||||
DISTRIBUTIONS TO SHAREHOLDERS: | ||||||||||||||||
From net investment income | (264,460 | ) | (56,942 | ) | (7,829,481 | ) | (46,957,845 | ) | ||||||||
Total distributions to shareholders | (264,460 | ) | (56,942 | ) | (7,829,481 | ) | (46,957,845 | ) | ||||||||
CAPITAL SHARE TRANSACTIONS: | ||||||||||||||||
Proceeds from shares sold | 7,552,934 | 36,663,666 | 67,675,820 | 714,281,254 | ||||||||||||
Cost of shares redeemed | (10,923,243 | ) | – | (131,899,200 | ) | (821,853,186 | ) | |||||||||
Net increase (decrease) in net assets from capital | (3,370,309 | ) | 36,663,666 | (64,223,380 | ) | (107,571,932 | ) | |||||||||
INCREASE (DECREASE) IN NET ASSETS | (12,222,300 | ) | 34,593,932 | (170,798,749 | ) | (268,348,755 | ) | |||||||||
NET ASSETS | ||||||||||||||||
Beginning of period | 34,593,932 | – | 473,090,766 | 741,439,521 | ||||||||||||
End of period | $ | 22,371,632 | $ | 34,593,932 | $ | 302,292,017 | $ | 473,090,766 | ||||||||
Undistributed (distributions in excess of) net investment income included in net assets at end of period | $ | (18,597 | ) | $ | 29,166 | $ | (96,214 | ) | $ | 1,897,270 | ||||||
SHARES ISSUED AND REDEEMED | ||||||||||||||||
Shares sold | 200,000 | 800,000 | 9,075,000 | 56,250,000 | ||||||||||||
Shares redeemed | (300,000 | ) | – | (16,275,000 | ) | (73,425,000 | ) | |||||||||
Net increase (decrease) in shares outstanding | (100,000 | ) | 800,000 | (7,200,000 | ) | (17,175,000 | ) | |||||||||
a | Commencement of operations. |
See notes to financial statements.
50 | 2009 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Statements of Changes in Net Assets (Continued)
iSHARES®, INC.
iShares MSCI Pacific ex-Japan Index Fund | iShares MSCI Singapore Index Fund | |||||||||||||||
Six months ended February 28, 2009 (Unaudited) | Year ended August 31, 2008 | Six months ended February 28, 2009 (Unaudited) | Year ended August 31, 2008 | |||||||||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||||||||||
OPERATIONS: | ||||||||||||||||
Net investment income | $ | 52,914,731 | $ | 128,526,593 | $ | 9,406,560 | $ | 65,504,376 | ||||||||
Net realized gain (loss) | (111,130,910 | ) | 102,089,773 | (181,836,417 | ) | 132,846,334 | ||||||||||
Net change in unrealized appreciation (depreciation) | (1,405,911,635 | ) | (653,824,213 | ) | (479,999,950 | ) | (410,162,165 | ) | ||||||||
Net decrease in net assets resulting from operations | (1,464,127,814 | ) | (423,207,847 | ) | (652,429,807 | ) | (211,811,455 | ) | ||||||||
DISTRIBUTIONS TO SHAREHOLDERS: |
| |||||||||||||||
From net investment income | (36,503,709 | ) | (199,385,029 | ) | (32,977,402 | ) | (95,160,270 | ) | ||||||||
From net realized gain | – | (4,628,288 | ) | – | – | |||||||||||
Total distributions to shareholders | (36,503,709 | ) | (204,013,317 | ) | (32,977,402 | ) | (95,160,270 | ) | ||||||||
CAPITAL SHARE TRANSACTIONS: |
| |||||||||||||||
Proceeds from shares sold | 217,054,217 | 726,432,412 | 99,873,271 | 810,998,513 | ||||||||||||
Cost of shares redeemed | (199,482,778 | ) | (371,535,398 | ) | (267,492,426 | ) | (696,268,481 | ) | ||||||||
Net increase (decrease) in net assets from capital | 17,571,439 | 354,897,014 | (167,619,155 | ) | 114,730,032 | |||||||||||
DECREASE IN NET ASSETS | (1,483,060,084 | ) | (272,324,150 | ) | (853,026,364 | ) | (192,241,693 | ) | ||||||||
NET ASSETS | ||||||||||||||||
Beginning of period | 3,263,971,153 | 3,536,295,303 | 1,476,968,491 | 1,669,210,184 | ||||||||||||
End of period | $ | 1,780,911,069 | $ | 3,263,971,153 | $ | 623,942,127 | $ | 1,476,968,491 | ||||||||
Undistributed (distributions in excess of) net investment income included in net assets at end of period | $ | 5,155,969 | $ | (11,255,053 | ) | $ | (4,239,871 | ) | $ | 19,330,971 | ||||||
SHARES ISSUED AND REDEEMED | ||||||||||||||||
Shares sold | 9,000,000 | 13,800,000 | 12,400,000 | 58,500,000 | ||||||||||||
Shares redeemed | (6,300,000 | ) | (8,100,000 | ) | (34,000,000 | ) | (55,100,000 | ) | ||||||||
Net increase (decrease) in shares outstanding | 2,700,000 | 5,700,000 | (21,600,000 | ) | 3,400,000 | |||||||||||
See notes to financial statements.
FINANCIAL STATEMENTS | 51 |
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 28, 2009 (Unaudited) | Year ended August 31, 2008 | Six months ended February 28, 2009 (Unaudited) | Year ended August 31, 2008 | |||||||||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||||||||||
OPERATIONS: | ||||||||||||||||
Net investment income | $ | 11,799,578 | $ | 40,026,865 | $ | 3,544,526 | $ | 111,484,150 | ||||||||
Net realized loss | (467,629,123 | ) | (254,209,320 | ) | (592,199,600 | ) | (187,544,546 | ) | ||||||||
Net change in unrealized appreciation (depreciation) | (549,429,221 | ) | (859,380,138 | ) | (557,370,290 | ) | (549,162,768 | ) | ||||||||
Net decrease in net assets resulting from operations | (1,005,258,766 | ) | (1,073,562,593 | ) | (1,146,025,364 | ) | (625,223,164 | ) | ||||||||
DISTRIBUTIONS TO SHAREHOLDERS: | ||||||||||||||||
From net investment income | (8,397,919 | ) | (49,844,649 | ) | (105,890,576 | ) | (68,184,922 | ) | ||||||||
Total distributions to shareholders | (8,397,919 | ) | (49,844,649 | ) | (105,890,576 | ) | (68,184,922 | ) | ||||||||
CAPITAL SHARE TRANSACTIONS: | ||||||||||||||||
Proceeds from shares sold | 708,639,286 | 1,462,000,429 | 70,167,545 | 1,558,478,632 | ||||||||||||
Cost of shares redeemed | (582,954,018 | ) | (782,282,834 | ) | (605,153,526 | ) | (716,827,104 | ) | ||||||||
Net increase (decrease) in net assets from capital | 125,685,268 | 679,717,595 | (534,985,981 | ) | 841,651,528 | |||||||||||
INCREASE (DECREASE) IN NET ASSETS | (887,971,417 | ) | (443,689,647 | ) | (1,786,901,921 | ) | 148,243,442 | |||||||||
NET ASSETS | ||||||||||||||||
Beginning of period | 1,985,763,142 | 2,429,452,789 | 2,918,007,796 | 2,769,764,354 | ||||||||||||
End of period | $ | 1,097,791,725 | $ | 1,985,763,142 | $ | 1,131,105,875 | $ | 2,918,007,796 | ||||||||
Undistributed (distributions in excess of) net investment income included in net assets at end of period | $ | 8,726,446 | $ | 5,324,787 | $ | (1,795,126 | ) | $ | 100,550,924 | |||||||
SHARES ISSUED AND REDEEMED | ||||||||||||||||
Shares sold | 23,600,000 | 21,550,000 | 8,400,000 | 98,600,000 | ||||||||||||
Shares redeemed | (20,150,000 | ) | (14,150,000 | ) | (69,000,000 | ) | (49,600,000 | ) | ||||||||
Net increase (decrease) in shares outstanding | 3,450,000 | 7,400,000 | (60,600,000 | ) | 49,000,000 | |||||||||||
See notes to financial statements.
52 | 2009 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Statements of Changes in Net Assets (Continued)
iSHARES®, INC.
iShares MSCI Thailand Investable Market Index Fund | ||||||||
Six months ended February 28, 2009 (Unaudited) | Period from to August 31, 2008 | |||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||
OPERATIONS: | ||||||||
Net investment income | $ | 450,722 | $ | 412,262 | ||||
Net realized loss | (16,703,786 | ) | (7,034,262 | ) | ||||
Net change in unrealized appreciation (depreciation) | (4,377,662 | ) | (21,055,848 | ) | ||||
Net decrease in net assets resulting from operations | (20,630,726 | ) | (27,677,848 | ) | ||||
DISTRIBUTIONS TO SHAREHOLDERS: | ||||||||
From net investment income | (775,148 | ) | – | |||||
Total distributions to shareholders | (775,148 | ) | – | |||||
CAPITAL SHARE TRANSACTIONS: | ||||||||
Proceeds from shares sold | 3,486,702 | 147,211,231 | ||||||
Cost of shares redeemed | (17,604,972 | ) | (61,285,106 | ) | ||||
Net increase (decrease) in net assets from capital share transactions | (14,118,270 | ) | 85,926,125 | |||||
INCREASE (DECREASE) IN NET ASSETS | (35,524,144 | ) | 58,248,277 | |||||
NET ASSETS | ||||||||
Beginning of period | 58,248,277 | – | ||||||
End of period | $ | 22,724,133 | $ | 58,248,277 | ||||
Undistributed net investment income included in net assets at end of period | $ | 86,775 | $ | 411,201 | ||||
SHARES ISSUED AND REDEEMED | ||||||||
Shares sold | 150,000 | 2,900,000 | ||||||
Shares redeemed | (600,000 | ) | (1,400,000 | ) | ||||
Net increase (decrease) in shares outstanding | (450,000 | ) | 1,500,000 | |||||
a | Commencement of operations. |
See notes to financial statements.
FINANCIAL STATEMENTS | 53 |
Table of Contents
iSHARES®, INC.
(For a share outstanding throughout each period)
iShares MSCI Australia Index Fund | ||||||||||||||||||||||||
Six months Feb. 28, 2009 | Year ended Aug. 31, 2008 | Year ended Aug. 31, 2007 | Year ended Aug. 31, 2006 | Year ended Aug. 31, 2005 | Year ended Aug. 31, 2004 | |||||||||||||||||||
Net asset value, beginning of period | $ | 23.96 | $ | 27.62 | $ | 21.59 | $ | 18.28 | $ | 13.56 | $ | 11.22 | ||||||||||||
Income from investment operations: | ||||||||||||||||||||||||
Net investment incomea | 0.42 | 0.96 | 0.89 | 0.75 | 0.70 | 0.45 | ||||||||||||||||||
Net realized and unrealized gain (loss)b | (12.13 | ) | (3.34 | ) | 6.24 | 3.23 | 4.60 | 2.32 | ||||||||||||||||
Total from investment operations | (11.71 | ) | (2.38 | ) | 7.13 | 3.98 | 5.30 | 2.77 | ||||||||||||||||
Less distributions from: | ||||||||||||||||||||||||
Net investment income | (0.89 | ) | (1.28 | ) | (1.10 | ) | (0.67 | ) | (0.58 | ) | (0.43 | ) | ||||||||||||
Total distributions | (0.89 | ) | (1.28 | ) | (1.10 | ) | (0.67 | ) | (0.58 | ) | (0.43 | ) | ||||||||||||
Net asset value, end of period | $ | 11.36 | $ | 23.96 | $ | 27.62 | $ | 21.59 | $ | 18.28 | $ | 13.56 | ||||||||||||
Total return | (49.25 | )%c | (9.25 | )% | 33.97 | % | 22.35 | % | 39.58 | % | 24.95 | % | ||||||||||||
Ratios/Supplemental data: | ||||||||||||||||||||||||
Net assets, end of period (000s) | $ | 431,735 | $ | 1,059,092 | $ | 1,464,112 | $ | 686,407 | $ | 369,355 | $ | 178,998 | ||||||||||||
Ratio of expenses to average net assetsd | 0.55 | % | 0.52 | % | 0.51 | % | 0.54 | % | 0.57 | % | 0.79 | % | ||||||||||||
Ratio of net investment income to average net assetsd | 5.59 | % | 3.38 | % | 3.46 | % | 3.75 | % | 4.13 | % | 3.37 | % | ||||||||||||
Portfolio turnover ratee | 7 | % | 10 | % | 10 | % | 7 | % | 17 | % | 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.
54 | 2009 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. 28, 2009 | Year ended Aug. 31, 2008 | Year ended Aug. 31, 2007 | Year ended Aug. 31, 2006 | Year ended Aug. 31, 2005 | Year ended Aug. 31, 2004 | |||||||||||||||||||
Net asset value, beginning of period | $ | 15.87 | $ | 18.30 | $ | 14.20 | $ | 13.01 | $ | 10.91 | $ | 9.03 | ||||||||||||
Income from investment operations: | ||||||||||||||||||||||||
Net investment incomea | 0.28 | 0.45 | 0.47 | 0.38 | 0.33 | 0.28 | ||||||||||||||||||
Net realized and unrealized gain (loss)b | (5.98 | ) | (2.25 | ) | 3.94 | 1.17 | 2.04 | 1.75 | ||||||||||||||||
Total from investment operations | (5.70 | ) | (1.80 | ) | 4.41 | 1.55 | 2.37 | 2.03 | ||||||||||||||||
Less distributions from: | ||||||||||||||||||||||||
Net investment income | (0.37 | ) | (0.63 | ) | (0.31 | ) | (0.36 | ) | (0.27 | ) | (0.15 | ) | ||||||||||||
Total distributions | (0.37 | ) | (0.63 | ) | (0.31 | ) | (0.36 | ) | (0.27 | ) | (0.15 | ) | ||||||||||||
Net asset value, end of period | $ | 9.80 | $ | 15.87 | $ | 18.30 | $ | 14.20 | $ | 13.01 | $ | 10.91 | ||||||||||||
Total return | (36.00 | )%c | (10.54 | )% | 31.44 | % | 12.20 | % | 21.96 | % | 22.69 | % | ||||||||||||
Ratios/Supplemental data: | ||||||||||||||||||||||||
Net assets, end of period (000s) | $ | 1,061,890 | $ | 1,675,184 | $ | 1,445,309 | $ | 882,712 | $ | 637,985 | $ | 449,923 | ||||||||||||
Ratio of expenses to average net assetsd | 0.56 | % | 0.52 | % | 0.52 | % | 0.54 | % | 0.57 | % | 0.80 | % | ||||||||||||
Ratio of net investment income to average net assetsd | 5.21 | % | 2.34 | % | 2.92 | % | 2.87 | % | 2.75 | % | 2.78 | % | ||||||||||||
Portfolio turnover ratee | 6 | % | 17 | % | 9 | % | 10 | % | 6 | % | 5 | % |
a | Based on average shares outstanding throughout each period. |
b | The amounts reported may not accord with the change in aggregate gains and losses in securities due to the timing of capital share transactions. |
c | Not annualized. |
d | Annualized for periods of less than one year. |
e | Portfolio turnover rates exclude portfolio securities received or delivered as a result of processing capital share transactions in Creation Units. |
See notes to financial statements.
FINANCIAL HIGHLIGHTS | 55 |
Table of Contents
Financial Highlights (Continued)
iSHARES®, INC.
(For a share outstanding throughout each period)
iShares MSCI Japan Small Cap Index Fund | ||||||||
Six months ended Feb. 28, 2009 | Period from to Aug. 31, 2008 | |||||||
Net asset value, beginning of period | $ | 43.24 | $ | 48.85 | ||||
Income from investment operations: | ||||||||
Net investment incomeb | 0.30 | 0.29 | ||||||
Net realized and unrealized lossc | (11.14 | ) | (5.74 | ) | ||||
Total from investment operations | (10.84 | ) | (5.45 | ) | ||||
Less distributions from: | ||||||||
Net investment income | (0.44 | ) | (0.16 | ) | ||||
Total distributions | (0.44 | ) | (0.16 | ) | ||||
Net asset value, end of period | $ | 31.96 | $ | 43.24 | ||||
Total return | (25.23 | )%d | (11.19 | )%d | ||||
Ratios/Supplemental data: | ||||||||
Net assets, end of period (000s) | $ | 22,372 | $ | 34,594 | ||||
Ratio of expenses to average net assetse | 0.56 | % | 0.53 | % | ||||
Ratio of net investment income to average net assetse | 1.65 | % | 0.93 | % | ||||
Portfolio turnover ratef | 3 | % | 7 | % |
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.
56 | 2009 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. 28, 2009 | Year ended Aug. 31, 2008 | Year ended Aug. 31, 2007 | Year ended Aug. 31, 2006 | Year ended Aug. 31, 2005 | Year ended Aug. 31, 2004 | |||||||||||||||||||
Net asset value, beginning of period | $ | 9.39 | $ | 10.97 | $ | 7.75 | $ | 7.19 | $ | 6.54 | $ | 5.99 | ||||||||||||
Income from investment operations: | ||||||||||||||||||||||||
Net investment incomea | 0.13 | 0.34 | 0.34 | 0.26 | 0.20 | 0.13 | ||||||||||||||||||
Net realized and unrealized gain (loss)b | (2.34 | ) | (1.31 | ) | 3.08 | 0.59 | 0.61 | 0.52 | ||||||||||||||||
Total from investment operations | (2.21 | ) | (0.97 | ) | 3.42 | 0.85 | 0.81 | 0.65 | ||||||||||||||||
Less distributions from: | ||||||||||||||||||||||||
Net investment income | (0.18 | ) | (0.61 | ) | (0.20 | ) | (0.29 | ) | (0.16 | ) | (0.10 | ) | ||||||||||||
Total distributions | (0.18 | ) | (0.61 | ) | (0.20 | ) | (0.29 | ) | (0.16 | ) | (0.10 | ) | ||||||||||||
Net asset value, end of period | $ | 7.00 | $ | 9.39 | $ | 10.97 | $ | 7.75 | $ | 7.19 | $ | 6.54 | ||||||||||||
Total return | (23.62 | )%c | (9.86 | )% | 44.64 | % | 12.35 | % | 12.39 | % | 11.01 | % | ||||||||||||
Ratios/Supplemental data: | ||||||||||||||||||||||||
Net assets, end of period (000s) | $ | 302,292 | $ | 473,091 | $ | 741,440 | $ | 374,334 | $ | 387,575 | $ | 224,218 | ||||||||||||
Ratio of expenses to average net assetsd | 0.56 | % | 0.52 | % | 0.51 | % | 0.54 | % | 0.57 | % | 0.79 | % | ||||||||||||
Ratio of net investment income to average net assetsd | 3.60 | % | 2.84 | % | 3.21 | % | 3.46 | % | 2.85 | % | 1.97 | % | ||||||||||||
Portfolio turnover ratee | 23 | % | 92 | % | 87 | % | 60 | % | 15 | % | 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 28, 2009 and the years ended August 31, 2008, August 31, 2007, August 31, 2006 and August 31, 2005 would have been 3%, 16%, 3%, 9% and 9%, respectively. See Note 4. |
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 Pacific ex-Japan Index Fund | ||||||||||||||||||||||||
Six months Feb. 28, 2009 | Year ended Aug. 31, 2008a | Year ended Aug. 31, 2007a | Year ended Aug. 31, 2006a | Year ended Aug. 31, 2005a | Year ended Aug. 31, 2004a | |||||||||||||||||||
Net asset value, beginning of period | $ | 41.37 | $ | 48.31 | $ | 37.34 | $ | 32.52 | $ | 25.24 | $ | 20.68 | ||||||||||||
Income from investment operations: | ||||||||||||||||||||||||
Net investment incomeb | 0.70 | 1.64 | 1.52 | 1.28 | 1.23 | 0.89 | ||||||||||||||||||
Net realized and unrealized gain (loss)c | (19.76 | ) | (6.01 | ) | 11.18 | 4.77 | 7.05 | 4.17 | ||||||||||||||||
Total from investment operations | (19.06 | ) | (4.37 | ) | 12.70 | 6.05 | 8.28 | 5.06 | ||||||||||||||||
Less distributions from: | ||||||||||||||||||||||||
Net investment income | (0.49 | ) | (2.51 | ) | (1.73 | ) | (1.23 | ) | (1.00 | ) | (0.50 | ) | ||||||||||||
Net realized gain | – | (0.06 | ) | – | – | – | – | |||||||||||||||||
Total distributions | (0.49 | ) | (2.57 | ) | (1.73 | ) | (1.23 | ) | (1.00 | ) | (0.50 | ) | ||||||||||||
Net asset value, end of period | $ | 21.82 | $ | 41.37 | $ | 48.31 | $ | 37.34 | $ | 32.52 | $ | 25.24 | ||||||||||||
Total return | (46.19 | )%d | (9.87 | )% | 34.86 | % | 19.17 | % | 33.27 | % | 24.74 | % | ||||||||||||
Ratios/Supplemental data: | ||||||||||||||||||||||||
Net assets, end of period (000s) | $ | 1,780,911 | $ | 3,263,971 | $ | 3,536,295 | $ | 2,094,931 | $ | 1,522,107 | $ | 651,250 | ||||||||||||
Ratio of expenses to average net assetse | 0.50 | % | 0.50 | % | 0.50 | % | 0.50 | % | 0.50 | % | 0.50 | % | ||||||||||||
Ratio of net investment income to average net assetse | 5.19 | % | 3.35 | % | 3.43 | % | 3.67 | % | 4.09 | % | 3.68 | % | ||||||||||||
Portfolio turnover ratef | 5 | % | 14 | % | 11 | % | 8 | % | 16 | % | 8 | % |
a | Per share amounts were adjusted to reflect a three-for-one stock split effective July 24, 2008. |
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.
58 | 2009 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Financial Highlights (Continued)
iSHARES®, INC.
(For a share outstanding throughout each period)
iShares MSCI Singapore Index Fund | ||||||||||||||||||||||||
Six months ended Feb. 28,2009 | Year ended Aug. 31, 2008 | Year ended Aug. 31, 2007 | Year ended Aug. 31, 2006 | Year ended Aug. 31, 2005 | Year ended Aug. 31, 2004 | |||||||||||||||||||
Net asset value, beginning of period | $ | 11.44 | $ | 13.28 | $ | 9.11 | $ | 7.77 | $ | 6.52 | $ | 5.38 | ||||||||||||
Income from investment operations: | ||||||||||||||||||||||||
Net investment incomea | 0.08 | 0.47 | 0.47 | 0.40 | 0.38 | 0.22 | ||||||||||||||||||
Net realized and unrealized gain (loss)b | (5.43 | ) | (1.67 | ) | 4.01 | 1.23 | 1.15 | 1.04 | ||||||||||||||||
Total from investment operations | (5.35 | ) | (1.20 | ) | 4.48 | 1.63 | 1.53 | 1.26 | ||||||||||||||||
Less distributions from: | ||||||||||||||||||||||||
Net investment income | (0.29 | ) | (0.64 | ) | (0.31 | ) | (0.29 | ) | (0.28 | ) | (0.12 | ) | ||||||||||||
Total distributions | (0.29 | ) | (0.64 | ) | (0.31 | ) | (0.29 | ) | (0.28 | ) | (0.12 | ) | ||||||||||||
Net asset value, end of period | $ | 5.80 | $ | 11.44 | $ | 13.28 | $ | 9.11 | $ | 7.77 | $ | 6.52 | ||||||||||||
Total return | (47.13 | )%c | (9.55 | )% | 49.92 | % | 21.61 | % | 24.06 | % | 23.47 | % | ||||||||||||
Ratios/Supplemental data: | ||||||||||||||||||||||||
Net assets, end of period (000s) | $ | 623,942 | $ | 1,476,968 | $ | 1,669,210 | $ | 574,620 | $ | 341,137 | $ | 170,047 | ||||||||||||
Ratio of expenses to average net assetsd | 0.56 | % | 0.52 | % | 0.51 | % | 0.54 | % | 0.57 | % | 0.79 | % | ||||||||||||
Ratio of net investment income to average net assetsd | 2.12 | % | 3.56 | % | 3.80 | % | 4.74 | % | 5.19 | % | 3.50 | % | ||||||||||||
Portfolio turnover ratee | 6 | % | 16 | % | 8 | % | 6 | % | 8 | % | 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.
FINANCIAL HIGHLIGHTS | 59 |
Table of Contents
Financial Highlights (Continued)
iSHARES®, INC.
(For a share outstanding throughout each period)
iShares MSCI South Korea Index Fund | ||||||||||||||||||||||||
Six months ended Feb. 28, 2009 | Year ended Aug. 31, 2008 | Year ended Aug. 31, 2007 | Year ended Aug. 31, 2006 | Year ended Aug. 31, 2005 | Year ended Aug. 31, 2004 | |||||||||||||||||||
Net asset value, beginning | $ | 43.55 | $ | 63.60 | $ | 46.00 | $ | 34.75 | $ | 24.17 | $ | 23.06 | ||||||||||||
Income from investment operations: | ||||||||||||||||||||||||
Net investment incomea | 0.26 | 0.80 | 0.51 | 0.31 | 0.46 | 0.22 | ||||||||||||||||||
Net realized and unrealized gain (loss)b | (21.24 | ) | (19.87 | ) | 17.42 | 11.20 | 10.22 | 1.13 | ||||||||||||||||
Total from investment operations | (20.98 | ) | (19.07 | ) | 17.93 | 11.51 | 10.68 | 1.35 | ||||||||||||||||
Less distributions from: | ||||||||||||||||||||||||
Net investment income | (0.19 | ) | (0.98 | ) | (0.33 | ) | (0.26 | ) | (0.10 | ) | (0.24 | ) | ||||||||||||
Total distributions | (0.19 | ) | (0.98 | ) | (0.33 | ) | (0.26 | ) | (0.10 | ) | (0.24 | ) | ||||||||||||
Net asset value, end of period | $ | 22.38 | $ | 43.55 | $ | 63.60 | $ | 46.00 | $ | 34.75 | $ | 24.17 | ||||||||||||
Total return | (48.26 | )%c | (30.35 | )% | 39.18 | % | 33.16 | % | 44.29 | % | 5.83 | % | ||||||||||||
Ratios/Supplemental data: | ||||||||||||||||||||||||
Net assets, end of period (000s) | $ | 1,097,792 | $ | 1,985,763 | $ | 2,429,453 | $ | 1,621,334 | $ | 698,455 | $ | 315,464 | ||||||||||||
Ratio of expenses to average net assetsd | 0.67 | % | 0.63 | % | 0.68 | % | 0.70 | % | 0.74 | % | 0.94 | % | ||||||||||||
Ratio of expenses to average net assets exclusive of foreign taxesd | 0.67 | % | 0.63 | % | 0.68 | % | 0.70 | % | 0.74 | % | 0.94 | % | ||||||||||||
Ratio of net investment income to average net assetsd | 1.77 | % | 1.35 | % | 0.96 | % | 0.71 | % | 1.49 | % | 0.87 | % | ||||||||||||
Portfolio turnover ratee | 41 | % | 42 | % | 20 | % | 47 | % | 30 | % | 29 | % |
a | Based on average shares outstanding throughout each period. |
b | The amounts reported may not accord with the change in aggregate gains and losses in securities due to the timing of capital share transactions. |
c | Not annualized. |
d | Annualized for periods of less than one year. |
e | Portfolio turnover rates include portfolio transactions that are executed as a result of the Fund processing capital share transactions in Creation Units solely for cash in U.S. dollars. Excluding such transactions, the portfolio turnover rate for the six months ended February 28, 2009 and the years ended August 31, 2008, August 31, 2007, August 31, 2006 and August 31, 2005 would have been 2%, 15%, 6%, 14% and 9%, respectively. See Note 4. |
See notes to financial statements.
60 | 2009 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Financial Highlights (Continued)
iSHARES®, INC.
(For a share outstanding throughout each period)
iShares MSCI Taiwan Index Fund | ||||||||||||||||||||||||
Six months Feb. 28, 2009 | Year ended Aug. 31, 2008 | Year ended Aug. 31, 2007 | Year ended Aug. 31, 2006 | Year ended Aug. 31, 2005 | Year ended Aug. 31, 2004 | |||||||||||||||||||
Net asset value, beginning of period | $ | 13.13 | $ | 15.99 | $ | 12.57 | $ | 11.57 | $ | 10.66 | $ | 10.79 | ||||||||||||
Income from investment operations: | ||||||||||||||||||||||||
Net investment incomea | 0.02 | 0.54 | 0.38 | 0.34 | 0.27 | 0.14 | ||||||||||||||||||
Net realized and unrealized gain (loss)b | (5.55 | ) | (3.01 | ) | 3.34 | 0.80 | 0.72 | (0.25 | ) | |||||||||||||||
Total from investment operations | (5.53 | ) | (2.47 | ) | 3.72 | 1.14 | 0.99 | (0.11 | ) | |||||||||||||||
Less distributions from: | ||||||||||||||||||||||||
Net investment income | (0.60 | ) | (0.39 | ) | (0.30 | ) | (0.14 | ) | (0.08 | ) | (0.02 | ) | ||||||||||||
Total distributions | (0.60 | ) | (0.39 | ) | (0.30 | ) | (0.14 | ) | (0.08 | ) | (0.02 | ) | ||||||||||||
Net asset value, end of period | $ | 7.00 | $ | 13.13 | $ | 15.99 | $ | 12.57 | $ | 11.57 | $ | 10.66 | ||||||||||||
Total return | (42.20 | )%c | (15.69 | )% | 29.91 | % | 9.84 | % | 9.28 | % | (1.10 | )% | ||||||||||||
Ratios/Supplemental data: | ||||||||||||||||||||||||
Net assets, end of period (000s) | $ | 1,131,106 | $ | 2,918,008 | $ | 2,769,764 | $ | 1,893,751 | $ | 752,640 | $ | 390,228 | ||||||||||||
Ratio of expenses to average net assetsd | 0.76 | % | 0.73 | % | 0.77 | % | 0.85 | % | 1.03 | % | 1.19 | %e | ||||||||||||
Ratio of expenses to average net assets exclusive of foreign taxesd | 0.67 | % | 0.63 | % | 0.68 | % | 0.70 | % | 0.74 | % | 0.92 | % | ||||||||||||
Ratio of net investment income to average net assetsd | 0.45 | % | 3.54 | % | 2.61 | % | 2.74 | % | 2.34 | % | 1.23 | % | ||||||||||||
Portfolio turnover ratef | 8 | % | 33 | % | 35 | % | 29 | % | 20 | % | 19 | % |
a | Based on average shares outstanding throughout each period. |
b | The amounts reported may not accord with the change in aggregate gains and losses in securities due to the timing of capital share transactions. |
c | Not annualized. |
d | Annualized for periods of less than one year. |
e | Ratio of expenses to average net assets prior to voluntary reimbursed distribution fees for the year ended August 31, 2004 was 1.22%. |
f | Portfolio turnover rates include portfolio transactions that are executed as a result of the Fund processing capital share transactions in Creation Units solely for cash in U.S. dollars. Excluding such transactions, the portfolio turnover rate for the six months ended February 28, 2009 and the years ended August 31, 2008, August 31, 2007, August 31, 2006 and August 31, 2005 would have been 4%, 11%, 12%, 10% and 10%, respectively. See Note 4. |
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 Thailand Investable Market Index Fund | ||||||||
Six months ended Feb. 28, 2009 (Unaudited) | Period from to Aug. 31, 2008 | |||||||
Net asset value, beginning of period | $ | 38.83 | $ | 50.03 | ||||
Income from investment operations: | ||||||||
Net investment incomeb | 0.43 | 0.32 | ||||||
Net realized and unrealized lossc | (16.76 | ) | (11.52 | ) | ||||
Total from investment operations | (16.33 | ) | (11.20 | ) | ||||
Less distributions from: | ||||||||
Net investment income | (0.86 | ) | – | |||||
Total distributions | (0.86 | ) | – | |||||
Net asset value, end of period | $ | 21.64 | $ | 38.83 | ||||
Total return | (42.20 | )%d | (22.39 | )%d | ||||
Ratios/Supplemental data: | ||||||||
Net assets, end of period (000s) | $ | 22,724 | $ | 58,248 | ||||
Ratio of expenses to average net assetse | 0.67 | % | 0.63 | % | ||||
Ratio of net investment income to average net assetse | 3.27 | % | 1.68 | % | ||||
Portfolio turnover ratef | 8 | % | 19 | % |
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.
62 | 2009 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 Australia, iShares MSCI Hong Kong, iShares MSCI Japan Small Cap, iShares MSCI Malaysia, iShares MSCI Pacific ex-Japan, iShares MSCI Singapore, iShares MSCI South Korea, iShares MSCI Taiwan and iShares MSCI Thailand Investable Market 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, 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”). 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 valued pursuant to the pricing policy and procedures approved by the Board of Directors of the Company (the “Board”). Effective September 1, 2008, the Funds adopted Financial Accounting Standards Board (“FASB”) Statement of Financial Accounting Standards No. 157 (“FAS 157��), “Fair Value Measurements.” This standard establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. Inputs may be based on independent market data (“observable inputs”) or they may be internally developed (“unobservable inputs”). The hierarchy gives the highest priority to
NOTESTO FINANCIAL STATEMENTS | 63 |
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Notes to Financial Statements (Unaudited) (Continued)
iSHARES®, INC.
unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy under FAS 157 are as follows:
• | Level 1 – Inputs that reflect unadjusted quoted prices in active markets for identical assets or liabilities that the Fund has the ability to access at the measurement date (a “Level 1 Price”); |
• | Level 2 – Inputs other than quoted prices included within Level 1 that are observable for the asset or liability either directly or indirectly, including quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not considered to be active, inputs other than quoted prices that are observable for the asset or liability, and inputs that are derived principally from or corroborated by observable market data by correlation or other means (a “Level 2 Price”); |
• | Level 3 – Inputs that are unobservable for the asset or liability (a “Level 3 Price”). |
Inputs are used in applying the various valuation techniques and broadly refer to the assumptions that market participants use to make valuation decisions, including assumptions about risk. Inputs may include price information, volatility statistics, specific and broad credit data, liquidity statistics, and other factors. The level of a value determined for a financial instrument within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement in its entirety. However, the determination of what constitutes an “observable” input may require significant judgment by the Funds. The Funds consider observable inputs to be market data that is readily available, regularly distributed or updated, reliable and verifiable, and provided by independent sources that are actively involved in the relevant market. The categorization of a value determined for a financial instrument within the hierarchy is based upon the pricing transparency of the instrument and does not necessarily correspond to the Funds’ perceived risk of that instrument.
Investments whose values are based on quoted market prices in active markets, and whose values are therefore classified as Level 1 Prices, include active listed equities and certain U.S. government securities. The Funds do not adjust the quoted price for such instruments, even in situations where the Funds hold a large position and a sale could reasonably impact the quoted price.
Investments that trade in markets that are not considered to be active, but whose values are based on quoted market prices, dealer quotations or valuations provided by alternative pricing sources supported by observable inputs are classified as Level 2 Prices. These generally include certain U.S. government and sovereign obligations, most government agency securities, investment-grade corporate bonds, certain mortgage products, less liquid listed equities, and state, municipal and provincial obligations. As investments whose values are classified as Level 2 Prices include positions that are not traded in active markets and/or are subject to transfer restrictions, valuations may be adjusted to reflect illiquidity and/or non-transferability, which are generally based on available market information.
Investments whose values are classified as Level 3 Prices have significant unobservable inputs, as they may trade infrequently or not at all. Investments whose values are classified as Level 3 Prices may include unlisted securities related to corporate actions, securities whose trading have been suspended or which have been de-listed from their primary trading exchange, less liquid corporate debt securities (including distressed debt instruments), collateralized debt obligations, and less liquid mortgage securities (backed by either commercial or residential real estate). When observable prices are not available for these securities, the Funds use one or more valuation techniques (e.g., the market approach or the income approach) for which sufficient and reliable data is available. Within Level 3 of the fair value hierarchy, the use of the market approach generally consists of using comparable market transactions, while the use of the income approach generally consists of the net present value of estimated future cash flows, adjusted as appropriate for liquidity, credit, market and/or other risk factors.
The inputs used by the Funds in estimating the value of Level 3 Prices may include the original transaction price, quoted prices for similar securities or assets in active markets, completed or pending third-party transactions in the underlying investment or comparable issuers, and changes in financial ratios or cash flows. Level 3 Prices may also be adjusted to reflect illiquidity and/or non-transferability, with the
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Notes to Financial Statements (Unaudited) (Continued)
iSHARES®, INC.
amount of such discount estimated by the Funds in the absence of market information. The fair value measurement of Level 3 Prices does not include transaction costs that may have been capitalized as part of the security’s cost basis. Assumptions used by the Funds due to the lack of observable inputs may significantly impact the resulting fair value and therefore the Funds’ results of operations.
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 underlying index, which in turn could result in a difference between the Fund’s performance and the performance of the Fund’s underlying index.
The following table summarizes the inputs used in valuing the Funds’ investments as of February 28, 2009:
Investments in Securities | ||||||||||||
iShares MSCI Index Fund | Level 1 | Level 2 | Level 3 | Total | ||||||||
Australia | $ | 440,308,000 | $ | – | $ | – | $ | 440,308,000 | ||||
Hong Kong | 1,187,454,309 | – | – | 1,187,454,309 | ||||||||
Japan Small Cap | 23,055,594 | – | – | 23,055,594 | ||||||||
Malaysia | 300,665,350 | – | – | 300,665,350 | ||||||||
Pacific ex-Japan | 1,916,280,789 | – | – | 1,916,280,789 | ||||||||
Singapore | 780,663,038 | – | – | 780,663,038 | ||||||||
South Korea | 1,258,362,925 | – | 1,975,925 | 1,260,338,850 | ||||||||
Taiwan | 1,130,812,665 | – | 19 | 1,130,812,684 | ||||||||
Thailand Investable Market | 22,667,541 | – | 898 | 22,668,439 |
The following table provides the reconciliation of investments in which significant unobservable inputs (Level 3) were used in determining fair value for the six months ended February 28, 2009:
iShares MSCI Index Fund | Balance at Beginning of Period | (Amortized Premiums) Accreted Discounts | Realized Gain (Loss) and Change in Unrealized Appreciation (Depreciation) | Net Purchases (Sales) | Net Transfers in or out | Balance at End of Period | Net Change in Unrealized Appreciation (Depreciation) from Investments Still Held at End of Period | |||||||||||||||||
Australia | $ | 138,879 | $ | – | $ | (74,059 | ) | $ | (64,820 | ) | $ | – | $ | – | $ | – | ||||||||
Malaysia | 17 | – | 41,558 | (41,575 | ) | – | – | – | ||||||||||||||||
Pacific ex-Japan | 279,757 | – | (149,184 | ) | (130,573 | ) | – | – | – | |||||||||||||||
South Korea | – | – | – | – | 1,975,925 | 1,975,925 | 1,975,925 | |||||||||||||||||
Taiwan | 22 | – | (3 | ) | – | – | 19 | (3 | ) | |||||||||||||||
Thailand Investable Market | 3 | – | 895 | – | – | 898 | 895 |
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.
NOTESTO FINANCIAL STATEMENTS | 65 |
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Notes to Financial Statements (Unaudited) (Continued)
iSHARES®, INC.
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 28, 2009, if any, are reflected in the Funds’ Statements 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 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 28, 2009.
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Notes to Financial Statements (Unaudited) (Continued)
iSHARES®, INC.
Certain Funds had tax basis net capital loss carryforwards as of August 31, 2008, the tax year-end of the Funds, as follows:
iShares MSCI Index Fund | Expiring 2009 | Expiring 2010 | Expiring 2011 | Expiring 2012 | Expiring 2013 | Expiring 2014 | Expiring 2015 | Expiring 2016 | Total | ||||||||||||||||||
Australia | $ | 1,971,994 | $ | 3,625,203 | $ | 650,082 | $ | 596,240 | $ | 384,424 | $ | – | $ | 7,066 | $ | 529,868 | $ | 7,764,877 | |||||||||
Hong Kong | – | 4,971,970 | 2,870,602 | 2,330,414 | 468,716 | 425,440 | 2,899,247 | 3,185,408 | 17,151,797 | ||||||||||||||||||
Malaysia | – | 9,819,029 | 2,898,105 | 775,477 | 6,820,474 | 1,543,708 | 3,357,786 | 1,127,892 | 26,342,471 | ||||||||||||||||||
Singapore | – | 1,934,119 | 4,428,316 | 4,256,421 | 2,558,348 | – | – | 807,115 | 13,984,319 | ||||||||||||||||||
South Korea | 395,465 | 666,642 | 504,041 | 3,363,449 | 11,590,303 | 3,172,573 | 38,097,223 | – | 57,789,696 | ||||||||||||||||||
Taiwan | – | 12,532,361 | 8,689,663 | 9,129,874 | 12,022,719 | 14,435,986 | 64,999,586 | 16,734,578 | 138,544,767 |
Net capital loss carryforwards may be applied against any net realized taxable gains in each succeeding year or until their respective expiration dates, whichever occurs first.
The Funds may own shares in certain foreign investment entities, referred to, under U.S. tax law, as “passive foreign investment companies.” The Funds may elect to mark-to-market annually the shares of each passive foreign investment company and would be required to distribute to shareholders any such marked-to-market gains.
Each Fund reclassifies at the end of its tax year certain amounts to paid-in-capital from accumulated net realized gain (loss) on investments and foreign currency transactions and accumulated net investment income (loss), respectively, as a result of permanent book and tax differences primarily attributed to net investment loss, return of capital, passive foreign investment companies, realized foreign currency gains and losses and gains and losses on in-kind redemptions. These reclassifications have no effect on net assets or net asset values per share.
As of February 28, 2009, 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 Appreciation | ||||||||||
Australia | $ | 1,024,917,177 | $ | – | $ | (584,609,177 | ) | $ | (584,609,177 | ) | ||||
Hong Kong | 2,132,370,540 | – | (944,916,231 | ) | (944,916,231 | ) | ||||||||
Japan Small Cap | 32,420,010 | 174,918 | (9,539,334 | ) | (9,364,416 | ) | ||||||||
Malaysia | 261,617,978 | 54,236,058 | (15,188,686 | ) | 39,047,372 | |||||||||
Pacific ex-Japan | 3,092,247,608 | – | (1,175,966,819 | ) | (1,175,966,819 | ) | ||||||||
Singapore | 1,465,573,585 | – | (684,910,547 | ) | (684,910,547 | ) | ||||||||
South Korea | 2,142,529,267 | – | (882,190,417 | ) | (882,190,417 | ) | ||||||||
Taiwan | 1,705,331,135 | – | (574,518,451 | ) | (574,518,451 | ) | ||||||||
Thailand Investable Market | 49,952,110 | – | (27,283,671 | ) | (27,283,671 | ) |
Management has reviewed the tax positions as of February 28, 2009, inclusive of the prior three open tax return years, as applicable, and has determined that no provision for income tax is required in the Funds’ financial statements.
NOTESTO FINANCIAL STATEMENTS | 67 |
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iSHARES®, INC.
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 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 iShares MSCI Australia, iShares MSCI Hong Kong, iShares MSCI Japan Small Cap, iShares MSCI Malaysia and iShares MSCI Singapore Index Funds, BGFA is entitled to an annual investment advisory fee based on each Fund’s allocable portion of the aggregate of the average daily net assets of these Funds and certain other iShares Funds as follows:
Investment Advisory Fee | Aggregate Average Daily Net Assets | |||
0.59% | First $7 billion | |||
0.54 | Over $7 billion, up to and including $11 billion | |||
0.49 | Over $11 billion, up to and including $24 billion | |||
0.44 | Over $24 billion, up to and including $48 billion | |||
0.40 | Over $48 billion | |||
For its investment advisory services to the iShares MSCI South Korea, iShares MSCI Taiwan and iShares MSCI Thailand Investable Market 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 Funds and certain other iShares 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, up to and including $16 billion | |||
0.51 | Over $16 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.
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
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Notes to Financial Statements (Unaudited) (Continued)
iSHARES®, INC.
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 28, 2009, BGI earned securities lending agent fees as follows:
iShares MSCI Index Fund | Securities Lending Agent Fees | ||
Australia | $ | 129,867 | |
Hong Kong | 483,052 | ||
Japan Small Cap | 8,519 |
iShares MSCI Index Fund | Securities Lending Agent Fees | ||
Pacific ex-Japan | $ | 744,501 | |
Singapore | 523,776 | ||
South Korea | 2,218,132 |
Cross trades for the six months ended February 28, 2009, 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 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. These money market funds seek to achieve their investment objectives by investing in high-quality, short-term money market instruments that, at the time of investment, have remaining maturities of 397 calendar days or less from the date of acquisition. 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.
Certain directors and officers of the Company are also officers of BGI and/or BGFA.
NOTESTO FINANCIAL STATEMENTS | 69 |
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Notes to Financial Statements (Unaudited) (Continued)
iSHARES®, INC.
3. INVESTMENT PORTFOLIO TRANSACTIONS
Purchases and sales of investments (excluding in-kind transactions and short-term investments) for the six months ended February 28, 2009, were as follows:
iShares MSCI Index Fund | Purchases | Sales | ||||
Australia | $ | 43,957,291 | $ | 57,425,966 | ||
Hong Kong | 72,994,949 | 73,732,505 | ||||
Japan Small Cap | 855,333 | 977,511 | ||||
Malaysia | 76,596,498 | 141,769,433 | ||||
Pacific ex-Japan | 126,842,367 | 104,298,977 | ||||
Singapore | 55,085,238 | 81,073,188 | ||||
South Korea | 718,259,958 | 606,331,254 | ||||
Taiwan | 135,623,297 | 735,300,599 | ||||
Thailand Investable Market | 2,517,687 | 2,665,049 |
In-kind transactions (see Note 4) for the six months ended February 28, 2009, were as follows:
iShares MSCI Index Fund | In-kind Purchases | In-kind Sales | ||||
Australia | $ | 185,717,389 | $ | 290,954,162 | ||
Hong Kong | 217,675,636 | 165,475,577 | ||||
Japan Small Cap | 7,506,302 | 10,812,649 | ||||
Pacific ex-Japan | 213,802,830 | 197,222,158 | ||||
Singapore | 97,889,536 | 261,277,167 | ||||
Thailand Investable Market | 3,474,553 | 17,507,792 |
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 Malaysia, iShares MSCI South Korea and iShares MSCI Taiwan Index Funds which are offered in Creation Units solely for cash in U.S. dollars). Investors purchasing and redeeming Creation Units pay a purchase transaction fee and a redemption transaction fee directly to 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.
70 | 2009 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
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Notes to Financial Statements (Unaudited) (Continued)
iSHARES®, INC.
5. LOANS OF PORTFOLIO SECURITIES
Each Fund may lend its investment securities to approved borrowers, such as brokers, dealers and other financial institutions. The borrower pledges and maintains with the Fund collateral consisting of cash, an irrevocable letter of credit issued by a bank, or securities issued or guaranteed by the U.S. government. The initial collateral received by each Fund is required to have a value of at least 102% of the market value of the loaned securities for securities traded on U.S. exchanges and a value of at least 105% for all other securities. The collateral is maintained thereafter, at a value equal to at least 100% of the current market value of the securities on loan. The risks to the Funds of securities lending include the risk that the borrower may not provide additional collateral when required or may not return the securities when due. Any securities lending cash collateral may be reinvested in certain short-term instruments either directly on behalf of a Fund or through one or more joint accounts or money market funds, including those managed by BGFA; such reinvestments are subject to investment risk.
As of February 28, 2009, certain Funds had loaned securities which were collateralized by cash. The cash collateral received was invested in money market funds managed by BGFA. The market value of the securities on loan as of February 28, 2009 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. SUBSEQUENT EVENT
On April 9, 2009, Barclays Global Investors UK Holdings Limited (“Barclays”), the parent company of BGI and BGFA, entered into an agreement to sell its interest in BGFA and certain affiliated companies to Blue Sparkle, L.P., a Cayman Islands limited partnership (the “Transaction”). Blue Sparkle, L.P. is an investment vehicle for private equity funds affiliated with CVC Capital Partners Group SICAV-FIS S.A., a private equity and investment advisory firm. The Transaction is subject to certain regulatory approvals, as well as other conditions to closing.
Under the 1940 Act, completion of the Transaction will cause the automatic termination of each Fund’s current investment advisory agreement with BGFA. In order for the management of each Fund to continue uninterrupted, the Board will be asked to approve a new investment advisory agreement with BGFA. If approved by the Board, the new investment advisory agreement will be submitted to the Funds’ shareholders for their approval.
NOTESTO FINANCIAL STATEMENTS | 71 |
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Notes:
72 | 2009 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
Capped (FIO)
iShares FTSE NAREIT Mortgage Plus
Capped (REM)
iShares FTSE NAREIT Real Estate 50 (FTY)
iShares FTSE NAREIT Residential Plus
Capped (REZ)
iShares FTSE NAREIT Retail Capped (RTL)
iShares Global Index Funds
iShares S&P Global 100 (IOO)
iShares S&P Global Clean Energy (ICLN)
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 Nuclear Energy (NUCL)
iShares S&P Global Technology Sector (IXN)
iShares S&P Global Telecommunications
Sector (IXP)
iShares S&P Global Timber &
Forestry (WOOD)
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 China (HK Listed) (FCHI)
iShares FTSE/Xinhua China 25 (FXI)
iShares MSCI Australia (EWA)
iShares MSCI Austria Investable
Market (EWO)
iShares MSCI Belgium Investable
Market (EWK)
iShares MSCI Brazil (EWZ)
iShares MSCI Canada (EWC)
iShares MSCI Chile Investable
Market (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 Investable
Market (EWW)
iShares MSCI Netherlands Investable
Market (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 Barclays Aggregate (AGG)
iShares Barclays MBS (MBB)
iShares Barclays Short Treasury (SHV)
iShares Barclays 1-3 Year Treasury (SHY)
iShares Barclays 3-7 Year Treasury (IEI)
iShares Barclays 7-10 Year Treasury (IEF)
iShares Barclays 10-20 Year Treasury (TLH)
iShares Barclays 20+ Year Treasury (TLT)
iShares Barclays TIPS (TIP)
iShares Barclays Agency (AGZ)
iShares Barclays Credit (CFT)
iShares Barclays 1-3 Year Credit (CSJ)
iShares Barclays Intermediate Credit (CIU)
iShares iBoxx $ Investment Grade
Corporate (LQD)
iShares iBoxx $ High Yield Corporate (HYG)
iShares Barclays Government/Credit (GBF)
iShares Barclays Intermediate
Government/Credit (GVI)
iShares S&P National Municipal (MUB)
iShares S&P Short Term National
Municipal (SUB)
iShares S&P California Municipal (CMF)
iShares S&P New York Municipal (NYF)
iShares JPMorgan USD Emerging Markets (EMB)
iShares S&P/Citigroup International
Treasury (IGOV)
iShares S&P/Citigroup 1-3 Year International Treasury (ISHG)
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 FAMILYOF FUNDS | 73 |
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The iShares® Family of Funds (Continued)
iShares International Index Funds
iShares FTSE Developed Small Cap ex-North America (IFSM)
iShares FTSE EPRA/NAREIT Developed
Asia (IFAS)
iShares FTSE EPRA/NAREIT Developed
Europe (IFEU)
iShares FTSE EPRA/NAREIT Developed Real Estate ex-U.S. (IFGL)
iShares FTSE EPRA/NAREIT North
America (IFNA)
iShares MSCI ACWI (ACWI)
iShares MSCI ACWI ex US (ACWX)
iShares MSCI All Country Asia ex Japan (AAXJ)
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 Developed ex-U.S. Property (WPS)
iShares S&P Europe 350 (IEV)
iShares S&P Latin America 40 (ILF)
iShares Morningstar Index Funds
iShares Morningstar Large Core (JKD)
iShares Morningstar Large Growth (JKE)
iShares Morningstar Large Value (JKF)
iShares Morningstar Mid Core (JKG)
iShares Morningstar Mid Growth (JKH)
iShares Morningstar Mid Value (JKI)
iShares Morningstar Small Core (JKJ)
iShares Morningstar Small Growth (JKK)
iShares Morningstar Small Value (JKL)
iShares NYSE Index Funds
iShares NYSE Composite (NYC)
iShares NYSE 100 (NY)
iShares S&P Allocation Funds
iShares S&P Conservative (AOK)
iShares S&P Moderate (AOM)
iShares S&P Growth (AOR)
iShares S&P Aggressive (AOA)
iShares S&P Target Date Index Funds
iShares S&P Target Date Retirement
Income (TGR)
iShares S&P Target Date 2010 (TZD)
iShares S&P Target Date 2015 (TZE)
iShares S&P Target Date 2020 (TZG)
iShares S&P Target Date 2025 (TZI)
iShares S&P Target Date 2030 (TZL)
iShares S&P Target Date 2035 (TZO)
iShares S&P Target Date 2040 (TZV)
iShares® is a registered trademark of Barclays Global Investors, N.A. (“BGI”). The iShares Funds are not 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, nor are they sponsored or endorsed by Barclays Capital. 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 except Barclays Capital, which is an affiliate of BGI. 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/Residential/Retail/Mortgage REITs or 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 2009 Semi-Annual Report.
iS-0569-0409
74 | 2009 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
For more information:
WWW.iSHARES.COM
1-800-iShares (1-800-474-2737)
The iShares Funds are distributed by SEI Investments Distribution Co. (SEI). Barclays Global Fund Advisors (BGFA) serves as an advisor to the iShares Funds. BGFA is a subsidiary of Barclays Global Investors, N.A. (BGI), neither of which is affiliated with SEI. The iShares Funds are not sponsored, endorsed, issued, sold or promoted by MSCI Inc., nor does this company 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 company listed above.
©2009 Barclays Global Investors. All rights reserved. iShares® is a registered trademark of Barclays Global Investors, N.A. All other trademarks, service marks or registered trademarks are the property of their respective owners. Investing involves risk, including possible loss of principal. A description of the policies that the Funds use to determine how to vote proxies relating to portfolio securities and information about how the Funds voted proxies relating to portfolio securities during the most recent twelve-month period ended June 30 is available without charge, upon request, by calling toll-free 1-800-474-2737; on the Funds website at www.iShares.com; and on the U.S. Securities and Exchange Commission (SEC) website at www.sec.gov. The Funds file their complete schedules of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. The Funds’ Forms N-Q are available on the SEC’s website or may be reviewed and copied at the SEC’s Public Reference Room in Washington, D.C. information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330. The Funds also disclose their complete schedules of portfolio holdings on a monthly basis on the Funds’ website. This report is intended for the Funds’ shareholders. It may not be distributed to prospective investors unless it is preceded or accompanied by the current prospectus.
LET’S BUILD A BETTER INVESTMENT WORLD.®
BGI-SAR-83-0209
BARCLAYS GLOBAL INVESTORS
iShares
Table of Contents
2009 SEMI-ANNUAL REPORT TO SHAREHOLDERS
iSHARES® MSCI SERIES
FEBRUARY 28, 2009
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See inside cover for details.
iShares MSCI Brazil Index Fund
iShares MSCI BRIC Index Fund
iShares MSCI Canada Index Fund
iShares MSCI Chile Investable Market Index Fund
iShares MSCI Israel Capped Investable Market Index Fund
iShares MSCI Mexico Investable Market Index Fund
iShares MSCI South Africa Index Fund
iShares MSCI Turkey Investable Market Index Fund
iShares®
Table of Contents
iShares®
Dear iShares Shareholder:
Electronic delivery is the easiest, most convenient way to receive reporting on your iShares holdings. In addition, it’s a way we can all care for our environment. To that end, we are pleased to offer shareholder reports and prospectuses online.
To sign up for electronic delivery, please follow these simple steps:
1. Go to www.icsdelivery.com.
2. From the main page, select the first letter of your brokerage firm’s name.
3. Select your brokerage institution from the list that follows. If your brokerage firm is not listed, electronic delivery may not be available. Please contact your brokerage firm or financial adviser.
4. Fill out the appropriate information and provide the e-mail address where you would like your information sent.
Your information and email address will be kept confidential and only used to deliver documents to you. If at any time you are not satisfied, you can cancel electronic delivery at www.icsdelivery.com and once again receive physical delivery of your materials. If you have any questions, please contact your brokerage firm or financial adviser.
Once you have enrolled, you will no longer receive prospectuses and shareholder reports in the mail. Instead, you will receive e-mail notifications announcing that the shareholder report or prospectus has been posted on the iShares website at www.iShares.com.
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Table of Contents
iSHARES® MSCI BRAZIL INDEX FUND
Performance as of February 28, 2009
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 28, 2009, the total return for the Fund and the Index was (51.00)%.
Average Annual Total Returns | ||||||||||||||||
Year Ended 2/28/09 | Five Years Ended 2/28/09 | Inception to 2/28/09 | ||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||
(56.77)% | (56.97)% | (56.72)% | 18.41% | 18.31% | 19.90% | 9.18% | 9.14% | 11.19% | ||||||||
Cumulative Total Returns | ||||||||||||||||
Year Ended 2/28/09 | Five Years Ended 2/28/09 | Inception to 2/28/09 | ||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||
(56.77)% | (56.97)% | (56.72)% | 132.81% | 131.76% | 147.81% | 113.59% | 112.94% | 149.98% |
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.
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 primary 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 after the Fund’s inception, for the period from inception to the first day of secondary market trading in shares of the Fund (7/14/00), the NAV of the Fund is used as a proxy for the Market 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 2/28/09 | |||
Sector | Percentage of Net Assets | ||
Basic Materials | 27.36 | % | |
Energy | 26.57 | ||
Financial | 18.24 | ||
Utilities | 8.64 | ||
Consumer Non-Cyclical | 6.97 | ||
Communications | 6.57 | ||
Diversified | 1.61 | ||
Industrial | 1.35 | ||
Consumer Cyclical | 1.10 | ||
Short-Term and Other Net Assets | 1.59 | ||
TOTAL | 100.00 | % | |
TEN LARGEST FUND HOLDINGS As of 2/28/09 | |||
Security | Percentage of Net Assets | ||
Petroleo Brasileiro SA Preferred | 13.25 | % | |
Petroleo Brasileiro SA | 11.93 | ||
Companhia Vale do Rio Doce Class A Preferred | 9.87 | ||
Companhia Vale do Rio Doce ADR | 7.64 | ||
Banco Bradesco SA Preferred | 4.78 | ||
Banco Itau Holding Financeira | 4.41 | ||
Unibanco – Uniao de Bancos Brasileiros SA Units | 2.94 | ||
Companhia de Bebidas das Americas Preferred | 2.82 | ||
Companhia Siderurgica Nacional | 2.23 | ||
Companhia Energetica de Minas Gerais Preferred | 2.02 | ||
TOTAL | 61.89 | % | |
FUND PERFORMANCE OVERVIEWS | 1 |
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Fund Performance Overview
iSHARES® MSCI BRIC INDEX FUND
Performance as of February 28, 2009
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 six-month period ended February 28, 2009, the total return for the Fund was (49.62)%, while the total return for the Index was (49.50)%.
Average Annual Total Returns | Cumulative Total Returns | |||||||||||||||
Year Ended 2/28/09 | Inception to 2/28/09 | Inception to 2/28/09 | ||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||
(58.40)% | (58.73)% | (58.87)% | (51.11)% | (51.52)% | (51.38)% | (60.52)% | (60.94)% | (60.80)% |
Total returns for the period since inception are calculated from the inception date of the Fund (11/12/07). “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 primary 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 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 the Market 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 2/28/09 | |||
Sector | Percentage of Net Assets | ||
Energy | 29.33 | % | |
Financial | 24.71 | ||
Communications | 13.97 | ||
Basic Materials | 11.14 | ||
Consumer Non-Cyclical | 5.62 | ||
Industrial | 4.09 | ||
Technology | 3.99 | ||
Utilities | 3.14 | ||
Diversified | 2.15 | ||
Consumer Cyclical | 1.46 | ||
Short-Term and Other Net Assets | 0.40 | ||
TOTAL | 100.00 | % | |
TEN LARGEST FUND HOLDINGS As of 2/28/09 | |||
Security | Percentage of Net Assets | ||
China Mobile Ltd. (China) | 7.61 | % | |
Petroleo Brasileiro SA | 4.98 | ||
OAO Gazprom SP ADR (Russia) | 4.58 | ||
Petroleo Brasileiro SA (Brazil) | 4.43 | ||
Reliance Industries Ltd. | 3.53 | ||
Companhia Vale do Rio Doce Class A | 3.30 | ||
China Life Insurance Co. Ltd. | 3.08 | ||
China Construction Bank | 2.65 | ||
Companhia Vale do Rio Doce (Brazil) | 2.61 | ||
Infosys Technologies Ltd. | 2.52 | ||
TOTAL | 39.29 | % | |
2 | 2009 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Fund Performance Overview
iSHARES® MSCI CANADA INDEX FUND
Performance as of February 28, 2009
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 28, 2009, the total return for the Fund was (49.44)%, while the total return for the Index was (49.45)%.
Average Annual Total Returns | ||||||||||||||||
Year Ended 2/28/09 | Five Years Ended 2/28/09 | Ten Years Ended 2/28/09 | ||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||
(51.73)% | (51.74)% | (51.68)% | 2.04% | 1.86% | 2.17% | 6.83% | 6.75% | 7.10% | ||||||||
Cumulative Total Returns | ||||||||||||||||
Year Ended 2/28/09 | Five Years Ended 2/28/09 | Ten Years Ended 2/28/09 | ||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||
(51.73)% | (51.74)% | (51.68)% | 10.63% | 9.66% | 11.33% | 93.64% | 92.25% | 98.48% |
“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 primary 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 2/28/09 | |||
Sector | Percentage of Net Assets | ||
Financial | 27.82 | % | |
Energy | 26.73 | ||
Basic Materials | 21.49 | ||
Communications | 6.43 | ||
Industrial | 5.13 | ||
Technology | 3.89 | ||
Consumer Non-Cyclical | 2.68 | ||
Consumer Cyclical | 2.50 | ||
Utilities | 1.59 | ||
Diversified | 1.42 | ||
Short-Term and Other Net Assets | 0.32 | ||
TOTAL | 100.00 | % | |
TEN LARGEST FUND HOLDINGS As of 2/28/09 | |||
Security | Percentage of Net Assets | ||
Royal Bank of Canada | 5.66 | % | |
EnCana Corp. | 5.15 | ||
Barrick Gold Corp. | 4.59 | ||
Potash Corp. of Saskatchewan Inc. | 4.41 | ||
Toronto-Dominion Bank (The) | 4.14 | ||
Bank of Nova Scotia | 3.89 | ||
Goldcorp Inc. | 3.69 | ||
Research In Motion Ltd. | 3.54 | ||
Suncor Energy Inc. | 3.40 | ||
Canadian Natural Resources Ltd. | 3.02 | ||
TOTAL | 41.49 | % | |
FUND PERFORMANCE OVERVIEWS | 3 |
Table of Contents
Fund Performance Overview
iSHARES® MSCI CHILE INVESTABLE MARKET INDEX FUND
Performance as of February 28, 2009
The iShares MSCI Chile Investable Market 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 six-month period ended February 28, 2009, the total return for the Fund was (26.26)%, while the total return for the Index was (26.76)%.
Average Annual Total Returns | Cumulative Total Returns | |||||||||||||||
Year Ended 2/28/09 | Inception to 2/28/09 | Inception to 2/28/09 | ||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||
(31.60)% | (31.33)% | (31.88)% | (25.30)% | (24.74)% | (25.61)% | (31.53)% | (30.87)% | (31.90)% |
Total returns for the period since inception are calculated from the inception date of the Fund (11/12/07). “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 primary 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 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 the Market 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 2/28/09 | |||
Sector | Percentage of Net Assets | ||
Utilities | 32.41 | % | |
Basic Materials | 19.48 | ||
Diversified | 11.45 | ||
Consumer Non-Cyclical | 10.91 | ||
Consumer Cyclical | 9.95 | ||
Financial | 8.68 | ||
Communications | 3.31 | ||
Industrial | 2.50 | ||
Technology | 1.22 | ||
Short-Term and Other Net Assets | 0.09 | ||
TOTAL | 100.00 | % | |
TEN LARGEST FUND HOLDINGS As of 2/28/09 | |||
Security | Percentage of Net Assets | ||
Empresa Nacional de Electricidad SA | 12.51 | % | |
Enersis SA | 11.38 | ||
Empresas Copec SA | 10.92 | ||
Sociedad Quimica y Minera de Chile SA | 8.82 | ||
Empresas CMPC SA | 5.90 | ||
Colbun SA | 4.75 | ||
Banco Santander Chile SA | 4.72 | ||
Centros Comerciales Sudamericanos SA | 4.69 | ||
LAN Airlines SA | 4.27 | ||
SACI Falabella SA | 3.87 | ||
TOTAL | 71.83 | % | |
4 | 2009 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Fund Performance Overview
iSHARES® MSCI ISRAEL CAPPED INVESTABLE MARKET INDEX FUND
Performance as of February 28, 2009
The iShares MSCI Israel Capped Investable Market 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 Israel Capped Investable Market IndexSM (the “Index”). The Index is a custom, free float adjusted market capitalization index designed to measure broad based equity market performance in Israel. 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 28, 2009, the total return for the Fund was (34.02)%, while the total return for the Index was (34.54)%.
Cumulative Total Returns | ||||||||||||||||||||||||
Inception to 2/28/09 | ||||||||||||||||||||||||
NAV | MARKET | INDEX | ||||||||||||||||||||||
(36.27)% | (38.05)% | (35.49)% |
“Cumulative Total Returns” represent the total change in value of an investment over the period(s) indicated and are calculated from an inception date of 3/26/08.
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 primary 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 after the Fund’s inception, for the period from inception to the first day of secondary market trading in shares of the Fund (03/28/08), the NAV of the Fund is used as a proxy for the Market 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 2/28/09 | |||
Sector | Percentage of Net Assets | ||
Communications | 27.23 | % | |
Consumer Non-Cyclical | 25.98 | ||
Financial | 22.27 | ||
Basic Materials | 14.91 | ||
Industrial | 6.23 | ||
Consumer Cyclical | 1.03 | ||
Energy | 0.97 | ||
Technology | 0.67 | ||
Diversified | 0.48 | ||
Short-Term and Other Net Assets | 0.23 | ||
TOTAL | 100.00 | % | |
TEN LARGEST FUND HOLDINGS As of 2/28/09 | |||
Security | Percentage of Net Assets | ||
Teva Pharmaceutical Industries Ltd. | 23.99 | % | |
Israel Chemicals Ltd. | 11.28 | ||
Check Point Software Technologies Ltd. | 10.66 | ||
Bank Leumi le-Israel | 4.93 | ||
Bank Hapoalim Ltd. | 4.89 | ||
Bezeq Israeli Telecommunication | 4.73 | ||
NICE Systems Ltd. | 3.45 | ||
Partner Communications Co. Ltd. | 3.32 | ||
Elbit Systems Ltd. | 3.07 | ||
Makhteshim-Agan Industries Ltd. | 2.82 | ||
TOTAL | 73.14 | % | |
FUND PERFORMANCE OVERVIEWS | 5 |
Table of Contents
Fund Performance Overview
iSHARES® MSCI MEXICO INVESTABLE MARKET INDEX FUND
Performance as of February 28, 2009
The iShares MSCI Mexico Investable Market 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 28, 2009, the total return for the Fund was (53.38)%, while the total return for the Index was (53.39)%.
Average Annual Total Returns | ||||||||||||||||
Year Ended 2/28/09 | Five Years Ended 2/28/09 | Ten Years Ended 2/28/09 | ||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||
(56.15)% | (56.32)% | (56.79)% | 5.62% | 5.44% | 5.60% | 9.83% | 9.96% | 10.43% | ||||||||
Cumulative Total Returns | ||||||||||||||||
Year Ended 2/28/09 | Five Years Ended 2/28/09 | Ten Years Ended 2/28/09 | ||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||
(56.15)% | (56.32)% | (56.79)% | 31.43% | 30.32% | 31.32% | 155.31% | 158.40% | 169.67% |
“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 primary 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 2/28/09 | |||
Sector | Percentage of Net Assets | ||
Communications | 47.37 | % | |
Consumer Non-Cyclical | 12.79 | ||
Consumer Cyclical | 10.93 | ||
Basic Materials | 9.71 | ||
Industrial | 9.11 | ||
Financial | 6.04 | ||
Diversified | 3.93 | ||
Short-Term and Other Net Assets | 0.12 | ||
TOTAL | 100.00 | % | |
TEN LARGEST FUND HOLDINGS As of 2/28/09 | |||
Security | Percentage of Net Assets | ||
America Movil SAB de CV Series L | 24.85 | % | |
Telefonos de Mexico SAB de CV Series L | 6.73 | ||
Fomento Economico Mexicano SAB de CV BD Units | 5.88 | ||
Wal-Mart de Mexico SAB de CV Series V | 5.87 | ||
Grupo Televisa SA Series CPO | 5.25 | ||
Telmex Internacional SAB de CV Series L | 4.66 | ||
Cemex SAB de CV Series CPO | 4.11 | ||
Carso Global Telecom SAB de CV Series A1 | 4.05 | ||
Kimberly-Clark de Mexico SAB de CV Series A | 3.51 | ||
Grupo Mexico SA de CV Series B | 3.29 | ||
TOTAL | 68.20 | % | |
6 | 2009 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Fund Performance Overview
iSHARES® MSCI SOUTH AFRICA INDEX FUND
Performance as of February 28, 2009
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 28, 2009, the total return for the Fund was (42.65)%, while the total return for the Index was (41.80)%.
Average Annual Total Returns | ||||||||||||||||
Year Ended 2/28/09 | Five Years Ended 2/28/09 | Inception to 2/28/09 | ||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||
(45.88)% | (45.25)% | (44.80)% | 3.98% | 3.68% | 5.03% | 10.95% | 10.81% | 12.27% | ||||||||
Cumulative Total Returns | ||||||||||||||||
Year Ended 2/28/09 | Five Years Ended 2/28/09 | Inception to 2/28/09 | ||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||
(45.88)% | (45.25)% | (44.80)% | 21.56% | 19.82% | 27.81% | 87.89% | 86.49% | 101.84% |
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 primary 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 after the Fund’s inception, for the period from inception to the first day of secondary market trading in shares of the Fund (2/7/03), the NAV of the Fund is used as a proxy for the Market 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 2/28/09 | |||
Sector | Percentage of Net Assets | ||
Basic Materials | 28.56 | % | |
Financial | 20.50 | ||
Communications | 18.66 | ||
Energy | 12.62 | ||
Consumer Cyclical | 5.47 | ||
Diversified | 5.34 | ||
Consumer Non-Cyclical | 5.25 | ||
Industrial | 3.54 | ||
Short-Term and Other Net Assets | 0.06 | ||
TOTAL | 100.00 | % | |
TEN LARGEST FUND HOLDINGS As of 2/28/09 | |||
Security | Percentage of Net Assets | ||
Sasol Ltd. | 12.62 | % | |
MTN Group Ltd. | 11.37 | ||
AngloGold Ashanti Ltd. | 6.96 | ||
Standard Bank Group Ltd. | 6.20 | ||
Gold Fields Ltd. | 5.41 | ||
Impala Platinum Holdings Ltd. | 5.31 | ||
Naspers Ltd. | 4.92 | ||
Harmony Gold Mining Co. Ltd. | 3.51 | ||
FirstRand Ltd. | 2.83 | ||
Sanlam Ltd. | 2.65 | ||
TOTAL | 61.78 | % | |
FUND PERFORMANCE OVERVIEWS | 7 |
Table of Contents
Fund Performance Overview
iSHARES® MSCI TURKEY INVESTABLE MARKET INDEX FUND
Performance as of February 28, 2009
The iShares MSCI Turkey Investable Market 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 Turkey Investable Market IndexSM (the “Index”). The Index is a free float adjusted market capitalization index designed to measure broad based equity market performance in Turkey. 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 28, 2009, the total return for the Fund was (57.66)%, while the total return for the Index was (57.89)%.
Cumulative Total Returns | ||||||||||||||||
Inception to 2/28/09 | ||||||||||||||||
NAV | MARKET | INDEX | ||||||||||||||
(55.88)% | (55.76)% | (55.99)% |
“Cumulative Total Returns” represent the total change in value of an investment over the period(s) indicated and are calculated from an inception date of 3/26/08.
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 primary 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 after the Fund’s inception, for the period from inception to the first day of secondary market trading in shares of the Fund (03/28/08), the NAV of the Fund is used as a proxy for the Market 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 2/28/09 | |||
Sector | Percentage of Net Assets | ||
Financial | 39.47 | % | |
Communications | 18.65 | ||
Consumer Non-Cyclical | 11.02 | ||
Basic Materials | 7.09 | ||
Diversified | 6.97 | ||
Industrial | 6.96 | ||
Consumer Cyclical | 4.80 | ||
Energy | 4.38 | ||
Utilities | 0.60 | ||
Short-Term and Other Net Assets | 0.06 | ||
TOTAL | 100.00 | % | |
TEN LARGEST FUND HOLDINGS As of 2/28/09 | |||
Security | Percentage of Net Assets | ||
Turkcell Iletisim Hizmetleri AS | 13.03 | % | |
Turkiye Garanti Bankasi AS | 10.27 | ||
Akbank TAS | 8.32 | ||
Turkiye Is Bankasi AS | 7.41 | ||
Turk Telekomunikasyon AS | 5.04 | ||
Anadolu Efes Biracilik ve Malt Sanayii AS | 4.88 | ||
Eregli Demir ve Celik | 4.53 | ||
Tupras-Turkiye Petrol | 4.38 | ||
Enka Insaat ve Sanayi AS | 3.61 | ||
Yapi ve Kredi Bankasi AS | 3.47 | ||
TOTAL | 64.94 | % | |
8 | 2009 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, 2008 to February 28, 2009.
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 (9/1/08) | Ending Account Value (2/28/09) | Annualized Expense Ratio | Expenses Paid During Perioda (9/1/08 to 2/28/09) | |||||
Brazil | |||||||||
Actual | $1,000.00 | $ 490.00 | 0.67 | % | $2.48 | ||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,021.50 | 0.67 | 3.36 | |||||
BRIC | |||||||||
Actual | 1,000.00 | 503.80 | 0.74 | 2.76 | |||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,021.10 | 0.74 | 3.71 | |||||
Canada | |||||||||
Actual | 1,000.00 | 505.60 | 0.55 | 2.05 | |||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,022.10 | 0.55 | 2.76 | |||||
Chile Investable Market | |||||||||
Actual | 1,000.00 | 737.40 | 0.68 | 2.93 | |||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,021.40 | 0.68 | 3.41 |
SHAREHOLDER EXPENSES | 9 |
Table of Contents
Shareholder Expenses (Unaudited) (Continued)
iSHARES®, INC.
iShares MSCI Index Fund | Beginning Account Value (9/1/08) | Ending Account Value (2/28/09) | Annualized Expense Ratio | Expenses Paid During Perioda (9/1/08 to 2/28/09) | |||||
Israel Capped Investable Market | |||||||||
Actual | $1,000.00 | $ 659.80 | 0.67 | % | $2.76 | ||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,021.50 | 0.67 | 3.36 | |||||
Mexico Investable Market | |||||||||
Actual | 1,000.00 | 466.20 | 0.55 | 2.00 | |||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,022.10 | 0.55 | 2.76 | |||||
South Africa | |||||||||
Actual | 1,000.00 | 573.50 | 0.67 | 2.61 | |||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,021.50 | 0.67 | 3.36 | |||||
Turkey Investable Market | |||||||||
Actual | 1,000.00 | 423.40 | 0.67 | 2.36 | |||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,021.50 | 0.67 | 3.36 |
a | Expenses are calculated using each Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (181 days) and divided by the number of days in the year (365 days). |
10 | 2009 iSHARES SEMI-ANNUALTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited)
iSHARES® MSCI BRAZIL INDEX FUND
February 28, 2009
Security | Shares | Value | |||
COMMON STOCKS – 42.33% | |||||
AEROSPACE & DEFENSE – 0.73% | |||||
Empresa Brasileira de Aeronautica SA | 10,242,032 | $ | 28,383,091 | ||
28,383,091 | |||||
AGRICULTURE – 0.94% | |||||
Souza Cruz SA | 1,820,800 | 36,752,902 | |||
36,752,902 | |||||
BANKS – 4.37% | |||||
Banco do Brasil SA | 7,283,260 | 42,419,323 | |||
Banco Nossa Caixa SA | 455,200 | 13,380,353 | |||
Unibanco - Uniao de Bancos Brasileiros SA Units | 21,622,020 | 114,565,792 | |||
170,365,468 | |||||
COMMERCIAL SERVICES – 0.58% | |||||
Companhia de Concessoes Rodoviarias | 2,336,000 | 22,770,597 | |||
22,770,597 | |||||
COSMETICS & PERSONAL CARE – 0.67% | |||||
Natura Cosmeticos SA | 2,846,200 | 25,972,473 | |||
25,972,473 | |||||
DIVERSIFIED FINANCIAL SERVICES – 2.69% | |||||
BM&F Bovespa SA | 21,394,400 | 53,530,984 | |||
Redecard SA | 4,908,600 | 51,604,289 | |||
105,135,273 | |||||
ELECTRIC – 2.96% | |||||
Centrais Eletricas | 4,226,399 | 46,565,035 | |||
CPFL Energia SA | 2,731,250 | 36,121,872 | |||
EDP Energias do Brasil SA | 1,365,600 | 13,437,780 | |||
Tractebel Energia SA | 2,599,200 | 19,444,814 | |||
115,569,501 | |||||
FOOD – 1.31% | |||||
Cosan SA Industria e Comercioa | 1,621,690 | 7,024,141 | |||
JBS SA | 7,322,187 | 14,194,820 | |||
Perdigao SA | 2,391,475 | 29,777,786 | |||
50,996,747 | |||||
HOME BUILDERS – 0.18% | |||||
MRV Engenharia e Participacoes SA | 1,593,249 | 6,981,352 | |||
6,981,352 |
Security | Shares | Value | |||
INSURANCE – 0.11% | |||||
Porto Seguro SA | 910,400 | $ | 4,440,976 | ||
4,440,976 | |||||
INTERNET – 0.26% | |||||
B2W - Companhia Global | 1,138,030 | 10,222,170 | |||
10,222,170 | |||||
IRON & STEEL – 2.91% | |||||
Companhia | 6,600,427 | 87,015,722 | |||
Gerdau SA | 3,281,600 | 13,786,032 | |||
Usinas Siderurgicas de Minas Gerais SA | 1,223,000 | 12,662,010 | |||
113,463,764 | |||||
MINING – 7.64% | |||||
Companhia Vale do Rio | 23,117,332 | 297,982,410 | |||
297,982,410 | |||||
OIL & GAS – 13.32% | |||||
OGX Petroleo e Gas Participacoes SAa | 227,600 | 54,076,535 | |||
Petroleo Brasileiro SA | 33,868,544 | 465,728,086 | |||
519,804,621 | |||||
REAL ESTATE – 0.56% | |||||
Cyrela Brazil Realty SA | 3,869,200 | 11,454,654 | |||
Gafisa SA | 2,503,685 | 10,433,776 | |||
21,888,430 | |||||
RETAIL – 0.38% | |||||
Lojas Renner SA | 2,503,600 | 14,844,727 | |||
14,844,727 | |||||
TELECOMMUNICATIONS – 1.57% | |||||
Brasil Telecom | 1,195,982 | 30,352,192 | |||
GVT (Holding) SAa | 1,365,603 | 14,069,501 | |||
Tele Norte Leste | 1,138,038 | 16,989,213 | |||
61,410,906 | |||||
TRANSPORTATION – 0.62% | |||||
ALL - America Latina Logistica SA | 7,062,300 | 24,263,662 | |||
24,263,662 |
SCHEDULESOF INVESTMENTS | 11 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI BRAZIL INDEX FUND
February 28, 2009
Security | Shares | Value | |||
WATER – 0.53% | |||||
Companhia de Saneamento Basico do Estado de Sao Paulo | 2,048,400 | $ | 20,707,963 | ||
20,707,963 | |||||
TOTAL COMMON STOCKS | 1,651,957,033 | ||||
PREFERRED STOCKS – 56.08% | |||||
AIRLINES – 0.18% | |||||
Tam SA | 1,036,725 | 7,040,836 | |||
7,040,836 | |||||
BANKS – 9.40% | |||||
Banco Bradesco SA | 21,426,940 | 186,517,098 | |||
Banco do Estado do Rio Grande do Sul SA | 3,405,910 | 8,092,259 | |||
Banco Itau Holding Financeira SA | 18,435,625 | 172,107,180 | |||
366,716,537 | |||||
BEVERAGES – 2.82% | |||||
Companhia de Bebidas das Americas | 2,731,291 | 110,136,036 | |||
110,136,036 | |||||
CHEMICALS – 1.64% | |||||
Braskem SA Class A | 3,298,136 | 7,461,721 | |||
Fertilizantes Fosfatados SA | 3,287,280 | 19,906,153 | |||
Ultrapar Participacoes SA | 1,593,200 | 36,600,722 | |||
63,968,596 | |||||
ELECTRIC – 5.15% | |||||
AES Tiete SA | 1,138,000 | 8,446,467 | |||
Centrais Eletricas Brasileiras SA Class B | 3,998,900 | 40,779,363 | |||
Companhia de Transmissao de Energia Eletrica Paulista | 455,200 | 8,671,388 | |||
Companhia Energetica de Minas Gerais | 5,650,686 | 79,009,802 | |||
Companhia Energetica de Sao Paulo Class B | 2,731,270 | 15,666,326 | |||
Companhia Paranaense de Energia Class B | 2,166,100 | 20,312,881 |
Security | Shares | Value | |||
Eletropaulo Metropolitana Electricidade de Sao Paulo SA Class B | 2,276,020 | $ | 28,033,905 | ||
200,920,132 | |||||
FOOD – 0.65% | |||||
Companhia Brasileira de Distribuicao Grupo Pao de Acucar | 1,365,628 | 16,533,402 | |||
Sadia SA | 7,283,200 | 8,759,442 | |||
25,292,844 | |||||
FOREST PRODUCTS & PAPER – 1.12% | |||||
Aracruz Celulose SA Class B | 9,786,800 | 7,037,606 | |||
Klabin SA | 11,152,400 | 14,444,656 | |||
Suzano Bahia Sul Papel e Celulose SAa | 2,503,685 | 11,360,286 | |||
Votorantim Celulose e Papel SAa | 2,276,100 | 11,007,212 | |||
43,849,760 | |||||
HOLDING COMPANIES - DIVERSIFIED – 1.61% | |||||
Itausa-Investimentos Itau SA | 21,166,897 | 62,931,018 | |||
62,931,018 | |||||
INVESTMENT COMPANIES – 1.11% | |||||
Bradespar SA | 4,589,300 | 43,229,739 | |||
43,229,739 | |||||
IRON & STEEL – 4.18% | |||||
Gerdau SA | 13,428,446 | 71,490,381 | |||
Metalurgica Gerdau SA | 5,603,790 | 39,330,217 | |||
Usinas Siderurgicas de Minas Gerais SA Class A | 4,779,600 | 52,117,337 | |||
162,937,935 | |||||
MEDIA – 0.52% | |||||
Net Servicos de | 3,168,892 | 20,188,694 | |||
20,188,694 | |||||
MINING – 9.87% | |||||
Companhia Vale do Rio Doce Class A | 34,140,000 | 385,187,637 | |||
385,187,637 | |||||
OIL & GAS – 13.25% | |||||
Petroleo Brasileiro SA | 46,585,150 | 517,177,443 | |||
517,177,443 |
12 | 2009 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI BRAZIL INDEX FUND
February 28, 2009
Security | Shares | Value | |||
RETAIL – 0.36% | |||||
Lojas Americanas SA | 5,917,600 | $ | 14,059,899 | ||
14,059,899 | |||||
TELECOMMUNICATIONS – 4.22% | |||||
Brasil Telecom Participacoes SA | 3,800,030 | 23,969,912 | |||
Brasil Telecom SA | 3,138,259 | 15,427,354 | |||
Tele Norte Leste Participacoes SA | 4,552,039 | 56,756,920 | |||
Telemar Norte Leste SA Class A | 910,480 | 17,868,840 | |||
TIM Participacoes SA | 9,534,200 | 13,471,368 | |||
Vivo Participacoes SA | 2,276,020 | 37,040,359 | |||
164,534,753 | |||||
TOTAL PREFERRED STOCKS | 2,188,171,859 | ||||
RIGHTS – 0.00% | |||||
MEDIA – 0.00% | |||||
Net Servicos de Comunicacao SA Preferreda | 36,090 | 21,095 | |||
21,095 | |||||
TELECOMMUNICATIONS – 0.00% | |||||
Vivo Participacoes SA Preferreda | 35,260 | 65,983 | |||
65,983 | |||||
TOTAL RIGHTS | 87,078 |
Security | Shares | Value | ||||
SHORT-TERM INVESTMENTS – 2.09% |
| |||||
MONEY MARKET FUNDS – 2.09% | ||||||
Barclays Global Investors Funds | 58,690,773 | $ | 58,690,773 | |||
Barclays Global Investors Funds | 9,811,377 | 9,811,377 | ||||
Barclays Global Investors Funds | 12,939,124 | 12,939,124 | ||||
81,441,274 | ||||||
TOTAL SHORT-TERM INVESTMENTS |
| |||||
(Cost: $81,441,274) | 81,441,274 | |||||
TOTAL INVESTMENTS IN | 3,921,657,244 | |||||
Other Assets, Less Liabilities – (0.50)% | (19,398,235 | ) | ||||
NET ASSETS – 100.00% | $ | 3,902,259,009 | ||||
ADR – American Depositary Receipts
a | Non-income earning security. |
b | All or a portion of this security represents a security on loan. See Note 5. |
c | Affiliated issuer. See Note 2. |
d | The rate quoted is the annualized seven-day yield of the fund at period end. |
e | All or a portion of this security represents an investment of securities lending collateral. See Note 5. |
See notes to financial statements.
SCHEDULESOF INVESTMENTS | 13 |
Table of Contents
Schedule of Investments (Unaudited)
iSHARES® MSCI BRIC INDEX FUND
February 28, 2009
Security | Shares | Value | |||
COMMON STOCKS – 80.43% | |||||
BRAZIL – 13.41% | |||||
ALL - America Latina Logistica SA | 62,300 | $ | 214,042 | ||
B2W - Companhia Global do Varejo | 8,900 | 79,943 | |||
Banco do Brasil SA | 53,400 | 311,013 | |||
BM&F Bovespa SA | 152,169 | 380,742 | |||
Brasil Telecom Participacoes SA | 8,900 | 225,868 | |||
Centrais Eletricas Brasileiras SA | 35,600 | 392,229 | |||
Companhia de Concessoes Rodoviarias | 26,700 | 260,263 | |||
Companhia Siderurgica Nacional | 53,400 | 703,991 | |||
Companhia Vale do Rio Doce | 195,800 | 2,541,777 | |||
Cosan SA Industria e Comercioa | 17,800 | 77,098 | |||
CPFL Energia SA | 17,800 | 235,412 | |||
Cyrela Brazil Realty SA | 35,600 | 105,393 | |||
Empresa Brasileira de Aeronautica SA | 71,200 | 197,312 | |||
Gafisa SA | 17,800 | 74,179 | |||
Gerdau SA | 35,600 | 149,556 | |||
GVT (Holding) SAa | 8,900 | 91,695 | |||
JBS SA | 20,452 | 39,648 | |||
Lojas Renner SA | 8,900 | 52,771 | |||
MRV Engenharia e Participacoes SA | 8,900 | 38,998 | |||
OGX Petroleo e Gas Participacoes SAa | 1,000 | 237,595 | |||
Perdigao SA | 26,700 | 332,459 | |||
Petroleo Brasileiro SA | 313,600 | 4,312,330 | |||
Redecard SA | 35,600 | 374,264 | |||
Souza Cruz SA | 17,800 | 359,294 | |||
Tele Norte Leste Participacoes SA | 8,900 | 132,864 | |||
Tractebel Energia SA | 26,700 | 199,745 | |||
Unibanco - Uniao de Bancos Brasileiros SA Units | 160,200 | 848,831 | |||
Usinas Siderurgicas de Minas Gerais SA | 8,900 | 92,144 | |||
13,061,456 | |||||
CHINA – 41.50% | |||||
Agile Property Holdings Ltd. | 356,000 | 120,734 | |||
Air China Ltd. Class H | 534,000 | 145,294 | |||
Alibaba.com Ltd.a | 44,500 | 38,504 | |||
Aluminum Corp. of China Ltd. Class Hb | 534,000 | 254,781 |
Security | Shares | Value | |||
Angang New Steel Co. Ltd. | 178,000 | $ | 150,803 | ||
Anhui Conch Cement Co. Ltd. Class Ha,b | 38,000 | 160,724 | |||
Bank of China Ltd. Class H | 5,073,000 | 1,419,542 | |||
Bank of Communications Co. Ltd. Class H | 979,000 | 594,603 | |||
Beijing Capital International Airport Co. Ltd. Class H | 178,000 | 66,564 | |||
Belle International Holdings Ltd. | 445,000 | 189,938 | |||
BYD Co. Ltd. Class Ha,b | 133,500 | 260,978 | |||
Chaoda Modern Agriculture (Holdings) Ltd. | 370,556 | 215,026 | |||
China Agri-Industries Holdings Ltd.a | 356,000 | 162,050 | |||
China CITIC Bank Class H | 712,000 | 257,994 | |||
China Coal Energy Co. Class H | 534,000 | 331,215 | |||
China Communications Construction Co. Ltd. Class H | 623,000 | 607,342 | |||
China Construction Bank Class H | 5,073,000 | 2,583,960 | |||
China COSCO Holdings Co. Ltd. Class H | 400,500 | 218,974 | |||
China Dongxiang Group Co. | 267,000 | 89,518 | |||
China Everbright Ltd. | 178,000 | 199,693 | |||
China High Speed Transmission Equipment Group Co. Ltd. | 89,000 | 116,143 | |||
China Huiyuan Juice Group Ltd. | 89,000 | 103,290 | |||
China Life Insurance Co. Ltd. Class H | 1,068,000 | 3,002,282 | |||
China Mengniu Dairy Co. Ltd. | 178,000 | 222,646 | |||
China Merchants Bank Co. Ltd. Class H | 400,500 | 593,915 | |||
China Merchants Holdings (International) Co. Ltd.b | 178,000 | 295,179 | |||
China Mobile Ltd.b | 845,500 | 7,413,893 | |||
China National Building Material Co. Ltd. Class H | 178,000 | 206,579 | |||
China Oilfield Services Ltd. | 356,000 | 253,404 | |||
China Overseas Land & Investment Ltd.b | 740,800 | 987,746 |
14 | 2009 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI BRIC INDEX FUND
February 28, 2009
Security | Shares | Value | |||
China Petroleum & Chemical Corp. Class H | 2,314,000 | $ | 1,208,488 | ||
China Railway Construction Corp. Class Ha | 311,500 | 381,597 | |||
China Railway Group Ltd. | 534,000 | 296,097 | |||
China Resources Enterprise Ltd. | 178,000 | 252,945 | |||
China Resources Land Ltd.b | 356,000 | 387,909 | |||
China Resources Power Holdings Co. Ltd. | 178,000 | 335,117 | |||
China Shenhua Energy Co. Ltd. Class H | 489,500 | 972,069 | |||
China Shipping Container Lines Co. Ltd. Class H | 445,000 | 62,547 | |||
China Shipping Development Co. Ltd. Class H | 178,000 | 140,474 | |||
China Telecom Corp. Ltd. Class H | 1,436,000 | 490,709 | |||
China Unicom (Hong Kong) Ltd. | 739,900 | 670,737 | |||
China Yurun Food Group Ltd. | 178,000 | 210,711 | |||
CITIC Pacific Ltd. | 86,000 | 89,938 | |||
CNOOC Ltd. | 2,225,000 | 1,951,025 | |||
CNPC Hong Kong Ltd.b | 890,000 | 302,983 | |||
Country Garden Holdings Co. | 534,000 | 102,601 | |||
Datang International Power Generation Co. Ltd. Class H | 534,000 | 225,860 | |||
Denway Motors Ltd. | 890,000 | 267,405 | |||
Dongfeng Motor Group Co. Ltd. Class H | 534,000 | 198,316 | |||
Fosun International Ltd. | 311,500 | 91,583 | |||
GOME Electrical Appliances Holdings Ltd. | 1,080,000 | 155,979 | |||
Guangdong Investment Ltd. | 534,000 | 224,483 | |||
Guangshen Railway Co. Ltd. Class H | 178,000 | 52,792 | |||
Guangzhou R&F Properties Co. Ltd. Class Hb | 178,000 | 135,424 | |||
Harbin Power Equipment Co. Ltd. Class H | 178,000 | 104,667 | |||
Hengan International Group | 178,000 | 647,281 | |||
Huaneng Power International Inc. Class H | 356,000 | 235,500 |
Security | Shares | Value | |||
Industrial and Commercial Bank of China Ltd. Class H | 5,874,000 | $ | 2,408,712 | ||
Jiangsu Expressway Co. Ltd. Class H | 356,000 | 238,254 | |||
Jiangxi Copper Co. Ltd. Class H | 267,000 | 196,250 | |||
Lenovo Group Ltd. | 534,000 | 99,158 | |||
Li Ning Co. Ltd.b | 178,000 | 222,646 | |||
Maanshan Iron & Steel Co. Ltd. Class Hb | 356,000 | 105,585 | |||
Parkson Retail Group Ltd. | 44,500 | 36,266 | |||
PetroChina Co. Ltd. Class H | 2,848,000 | 2,030,902 | |||
PICC Property & Casualty Co. Ltd. Class Ha | 356,000 | 161,591 | |||
Ping An Insurance (Group) Co. of China Ltd. Class H | 178,000 | 856,155 | |||
Shanghai Electric Group Corp. Class H | 534,000 | 134,965 | |||
Shanghai Industrial Holdings Ltd. | 89,000 | 204,284 | |||
Shimao Property Holdings Ltd. | 267,000 | 138,752 | |||
Shui On Land Ltd. | 445,000 | 102,716 | |||
Sinofert Holdings Ltd. | 356,000 | 162,968 | |||
Sino-Ocean Land Holdings Ltd. | 578,500 | 281,980 | |||
Soho China Ltd. | 267,000 | 83,320 | |||
Tencent Holdings Ltd. | 99,000 | 573,837 | |||
Tingyi (Cayman Islands) Holding Corp. | 178,000 | 197,398 | |||
Yanzhou Coal Mining Co. Ltd. Class H | 356,000 | 205,661 | |||
Zhejiang Expressway Co. Ltd. Class H | 356,000 | 233,664 | |||
Zijin Mining Group Co. Ltd. Class H | 534,000 | 287,145 | |||
40,420,760 | |||||
INDIA – 12.95% | |||||
Ambuja Cements Ltd. SP GDRc,d | 302,908 | 376,424 | |||
Dr. Reddy’s Laboratories Ltd. ADR | 104,575 | 838,691 | |||
HDFC Bank Ltd. ADRb | 34,443 | 1,756,593 | |||
Hindalco Industries Ltd. GDRd,e | 372,936 | 281,492 | |||
ICICI Bank Ltd. SP ADR | 102,617 | 1,278,608 | |||
Infosys Technologies Ltd. SP ADR | 101,371 | 2,453,178 | |||
Mahanagar Telephone Nigam Ltd. ADR | 180,263 | 504,736 | |||
Reliance Industries Ltd. GDRb,e | 70,577 | 3,440,629 |
SCHEDULESOF INVESTMENTS | 15 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI BRIC INDEX FUND
February 28, 2009
Security | Shares | Value | |||
Satyam Computer | 240,834 | $ | 313,084 | ||
Tata Communications Ltd. ADR | 21,627 | 343,004 | |||
Wipro Ltd. ADRb | 180,136 | 1,024,974 | |||
12,611,413 | |||||
RUSSIA – 12.57% | |||||
Comstar United | 37,380 | 100,926 | |||
JSC MMC Norilsk Nickel ADR | 109,072 | 512,638 | |||
LUKOIL SP ADR | 69,776 | 2,235,623 | |||
Mechel OAO ADRb | 29,726 | 104,041 | |||
Mobile TeleSystems SP ADR | 26,700 | 632,523 | |||
Novolipetsk Steel GDRc | 11,570 | 114,080 | |||
OAO Gazprom SP ADR | 343,162 | 4,457,674 | |||
OAO NOVATEK SP GDRc | 10,591 | 248,888 | |||
OAO Rosneft Oil Co. GDR | 180,492 | 635,332 | |||
OAO Tatneft SP ADRc | 9,701 | 345,356 | |||
OAO TMK GDRc | 13,261 | 49,729 | |||
Pharmstandard GDRa,c | 12,282 | 80,079 | |||
PIK Group GDRa,c | 13,884 | 7,220 | |||
Polyus Gold SP ADR | 19,580 | 365,167 | |||
Rostelecom SP ADR | 8,900 | 428,268 | |||
Sberbank GDRb,c | 8,277 | 504,586 | |||
Severstal GDRc | 29,459 | 106,936 | |||
Sistema JSFC SP GDRc | 15,575 | 52,176 | |||
Surgutneftegaz SP ADR | 95,230 | 544,716 | |||
Uralkali SP GDRc | 24,742 | 158,349 | |||
Vimpel-Communications | 68,886 | 360,963 | |||
VTB Bank OJSC GDRc | 88,021 | 94,182 | |||
Wimm-Bill-Dann Foods | 3,382 | 100,209 | |||
12,239,661 | |||||
TOTAL COMMON STOCKS | 78,333,290 | ||||
PREFERRED STOCKS – 19.17% | |||||
BRAZIL – 19.17% | |||||
AES Tiete SA | 8,900 | 66,058 | |||
Aracruz Celulose SA Class B | 44,500 | 32,000 | |||
Banco Bradesco SA | 213,607 | 1,859,405 | |||
Banco do Estado do Rio Grande do Sul SA | 8,900 | 21,146 | |||
Banco Itau Holding Financeira SA | 178,000 | 1,661,732 |
Security | Shares | Value | |||
Bradespar SA | 35,600 | $ | 335,341 | ||
Brasil Telecom Participacoes SA | 29,221 | 184,321 | |||
Brasil Telecom SA | 13,353 | 65,642 | |||
Braskem SA Class A | 26,700 | 60,406 | |||
Centrais Eletricas Brasileiras SA Class B | 26,700 | 272,278 | |||
Companhia de Bebidas das Americas | 26,700 | 1,076,645 | |||
Companhia de Transmissao de Energia Eletrica Paulista | 8,900 | 169,542 | |||
Companhia Energetica de Minas Gerais | 35,923 | 502,287 | |||
Companhia Energetica de Sao Paulo Class B | 26,700 | 153,149 | |||
Companhia Paranaense de Energia Class B | 17,800 | 166,922 | |||
Companhia Vale do Rio Doce Class A | 284,800 | 3,213,282 | |||
Duratex SA | 8,900 | 57,225 | |||
Eletropaulo Metropolitana Electricidade de Sao Paulo SA Class B | 8,900 | 109,622 | |||
Fertilizantes Fosfatados SA | 17,820 | 107,909 | |||
Gerdau SA | 97,900 | 521,200 | |||
Itausa - Investimentos Itau SA | 294,851 | 876,618 | |||
Klabin SA | 53,400 | 69,164 | |||
Lojas Americanas SA | 53,400 | 126,875 | |||
Metalurgica Gerdau SA | 42,400 | 297,584 | |||
Net Servicos de Comunicacao SAa | 26,700 | 170,103 | |||
Petroleo Brasileiro SA | 436,900 | 4,850,362 | |||
Sadia SA | 62,300 | 74,928 | |||
Tam SA | 8,900 | 60,444 | |||
Tele Norte Leste Participacoes SA | 35,600 | 443,877 | |||
Telemar Norte Leste SA Class A | 8,900 | 174,669 | |||
TIM Participacoes SA | 80,100 | 113,177 | |||
Usinas Siderurgicas de Minas Gerais SA Class A | 37,750 | 411,630 | |||
Vivo Participacoes SA | 19,800 | 322,229 | |||
Votorantim Celulose e Papel SAa | 8,900 | 43,040 | |||
18,670,812 | |||||
TOTAL PREFERRED STOCKS | 18,670,812 |
16 | 2009 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI BRIC INDEX FUND
February 28, 2009
Security | Shares | Value | ||||
RIGHTS – 0.00% |
| |||||
BRAZIL – 0.00% |
| |||||
Net Servicos de Comunicacao SA Preferreda | 340 | $ | 199 | |||
Vivo Participacoes SA Preferreda | 319 | 597 | ||||
796 | ||||||
TOTAL RIGHTS | 796 | |||||
SHORT-TERM INVESTMENTS – 12.61% |
| |||||
MONEY MARKET FUNDS – 12.61% |
| |||||
Barclays Global Investors Funds | 10,353,870 | 10,353,870 | ||||
Barclays Global Investors Funds | 1,730,864 | 1,730,864 | ||||
Barclays Global Investors Funds | 193,495 | 193,495 | ||||
12,278,229 | ||||||
TOTAL SHORT-TERM INVESTMENTS |
| |||||
(Cost: $12,278,229) | 12,278,229 | |||||
TOTAL INVESTMENTS IN | 109,283,127 | |||||
Other Assets, Less Liabilities – (12.21)% | (11,889,572 | ) | ||||
NET ASSETS – 100.00% | $ | 97,393,555 | ||||
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 foreign investors and foreign institutional buyers under Regulation S of the Securities Act of 1933. |
d | Security valued using Level 3 inputs. See Note 1. |
e | This security may be resold to qualified institutional buyers under Rule 144A of the Securities Act of 1933. |
f | Affiliated issuer. See Note 2. |
g | The rate quoted is the annualized seven-day yield of the fund at period end. |
h | All or a portion of this security represents an investment of securities lending collateral. See Note 5. |
See notes to financial statements.
SCHEDULESOF INVESTMENTS | 17 |
Table of Contents
Schedule of Investments (Unaudited)
iSHARES® MSCI CANADA INDEX FUND
February 28, 2009
Security | Shares | Value | |||
COMMON STOCKS – 99.68% | |||||
ADVERTISING – 0.26% | |||||
Groupe Aeroplan Inc. | 314,755 | $ | 2,316,910 | ||
2,316,910 | |||||
AEROSPACE & DEFENSE – 0.23% | |||||
CAE Inc. | 394,485 | 2,058,156 | |||
2,058,156 | |||||
AIRLINES – 0.01% | |||||
Jazz Air Income Funda | 20,078 | 66,935 | |||
66,935 | |||||
APPAREL – 0.14% | |||||
Gildan Activewear Inc.b | 174,930 | 1,304,203 | |||
1,304,203 | |||||
AUTO PARTS & EQUIPMENT – 0.48% | |||||
Magna International Inc. Class A | 167,195 | 4,300,938 | |||
4,300,938 | |||||
BANKS – 18.85% | |||||
Bank of Montreal | 841,925 | 18,771,374 | |||
Bank of Nova Scotia | 1,547,595 | 35,017,104 | |||
Canadian Imperial Bank of Commerce | 596,785 | 20,294,970 | |||
National Bank of Canada | 249,900 | 7,460,466 | |||
Royal Bank of Canada | 2,090,830 | 50,950,438 | |||
Toronto-Dominion Bank (The) | 1,266,160 | 37,310,732 | |||
169,805,084 | |||||
CHEMICALS – 5.48% | |||||
Agrium Inc. | 246,330 | 8,575,006 | |||
Methanex Corp. | 146,965 | 1,082,967 | |||
Potash Corp. of Saskatchewan Inc. | 471,835 | 39,707,248 | |||
49,365,221 | |||||
COMMERCIAL SERVICES – 0.26% | |||||
Ritchie Bros. Auctioneers Inc. | 155,295 | 2,370,701 | |||
2,370,701 | |||||
COMPUTERS – 3.89% | |||||
CGI Group Inc.b | 427,111 | 3,130,498 | |||
Research In Motion Ltd.b | 796,110 | 31,898,359 | |||
35,028,857 | |||||
DIVERSIFIED FINANCIAL SERVICES – 1.06% | |||||
CI Financial Corp. | 254,065 | 2,619,041 | |||
IGM Financial Inc. | 186,830 | 4,116,930 |
Security | Shares | Value | |||
TMX Group Inc. | 116,620 | $ | 2,841,857 | ||
9,577,828 | |||||
ELECTRIC – 1.13% | |||||
Fortis Inc. | 264,775 | 5,010,244 | |||
TransAlta Corp. | 311,164 | 5,167,061 | |||
10,177,305 | |||||
ENGINEERING & CONSTRUCTION – 0.60% | |||||
SNC-Lavalin Group Inc. | 238,000 | 5,447,074 | |||
5,447,074 | |||||
FOOD – 2.03% | |||||
Empire Co. Ltd. Class A | 41,055 | 1,631,069 | |||
George Weston Ltd. | 81,515 | 3,886,072 | |||
Loblaw Companies Ltd. | 173,740 | 4,266,650 | |||
Metro Inc. Class A | 155,894 | 4,693,345 | |||
Saputo Inc. | 226,100 | 3,816,891 | |||
18,294,027 | |||||
FOREST PRODUCTS & PAPER – 0.18% | |||||
Sino-Forest Corp.b | 238,595 | 1,598,343 | |||
1,598,343 | |||||
GAS – 0.46% | |||||
Canadian Utilities Ltd. Class A | 126,147 | 4,105,979 | |||
4,105,979 | |||||
HAND & MACHINE TOOLS – 0.27% | |||||
Finning International Inc. | 272,517 | 2,422,660 | |||
2,422,660 | |||||
HEALTH CARE - SERVICES – 0.13% | |||||
MDS Inc.b | 182,665 | 1,209,273 | |||
1,209,273 | |||||
HOLDING COMPANIES - DIVERSIFIED – 1.42% | |||||
Brookfield Asset Management Inc. Class A | 767,550 | 10,198,915 | |||
Onex Corp. | 151,725 | 1,895,292 | |||
Sherritt International Corp. | 442,680 | 711,721 | |||
12,805,928 | |||||
INSURANCE – 7.53% | |||||
Fairfax Financial Holdings Ltd. | 26,180 | 6,372,664 | |||
Great-West Lifeco Inc. | 446,845 | 5,617,037 | |||
Industrial Alliance Insurance and Financial Services Inc. | 124,355 | 1,653,362 | |||
ING Canada Inc. | 126,735 | 3,265,135 |
18 | 2009 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI CANADA INDEX FUND
February 28, 2009
Security | Shares | Value | |||
Manulife Financial Corp. | 2,332,995 | $ | 23,718,828 | ||
Power Corp. of Canada | 540,260 | 7,745,068 | |||
Power Financial Corp. | 389,725 | 5,768,243 | |||
Sun Life Financial Inc. | 875,840 | 13,743,133 | |||
67,883,470 | |||||
IRON & STEEL – 0.11% | |||||
Gerdau Ameristeel Corp. | 245,372 | 995,914 | |||
995,914 | |||||
MANUFACTURING – 0.59% | |||||
Bombardier Inc. Class B | 2,262,785 | 5,278,672 | |||
5,278,672 | |||||
MEDIA – 4.26% | |||||
Astral Media Inc. Class A | 77,945 | 1,526,527 | |||
Rogers Communications Inc. Class B | 776,475 | 18,309,597 | |||
Shaw Communications Inc. Class B | 538,475 | 7,978,350 | |||
Thomson Reuters Corp. | 354,025 | 8,800,054 | |||
Yellow Pages Income Fund | 392,700 | 1,779,584 | |||
38,394,112 | |||||
MINING – 15.72% | |||||
Agnico-Eagle Mines Ltd. | 224,315 | 11,305,469 | |||
Barrick Gold Corp. | 1,363,145 | 41,307,424 | |||
Cameco Corp. | 558,705 | 8,229,654 | |||
Eldorado Gold Corp.b | 567,630 | 4,800,150 | |||
First Quantum Minerals Ltd. | 106,505 | 2,818,645 | |||
Goldcorp Inc. | 1,140,020 | 33,207,345 | |||
Iamgold Corp. | 458,745 | 3,723,902 | |||
Inmet Mining Corp. | 70,137 | 1,594,161 | |||
Ivanhoe Mines Ltd.b | 394,635 | 1,757,251 | |||
Kinross Gold Corp. | 1,032,920 | 16,378,887 | |||
Pan American Silver Corp.b | 123,760 | 1,810,289 | |||
Silver Wheaton Corp.b | 438,227 | 2,997,841 | |||
Teck Cominco Ltd. Class B | 740,180 | 2,607,562 | |||
Yamana Gold Inc. | 1,041,254 | 9,125,385 | |||
141,663,965 | |||||
OIL & GAS – 22.18% | |||||
Addax Petroleum Corp. | 133,280 | 2,541,968 | |||
ARC Energy Trust | 173,740 | 1,910,134 | |||
Canadian Natural Resources Ltd. | 845,495 | 27,253,612 | |||
Canadian Oil Sands Trust | 372,470 | 5,870,985 |
Security | Shares | Value | |||
Crescent Point Energy Trust | 94,010 | $ | 1,745,577 | ||
EnCana Corp. | 1,172,150 | 46,374,221 | |||
Enerplus Resources Fund | 259,420 | 4,408,003 | |||
Ensign Resource Service Group | 201,705 | 1,605,564 | |||
Harvest Energy Trust | 231,038 | 1,148,954 | |||
Husky Energy Inc. | 399,245 | 8,558,509 | |||
Imperial Oil Ltd. | 477,190 | 14,945,447 | |||
Nexen Inc. | 736,015 | 10,081,523 | |||
Niko Resources Ltd. | 68,425 | 2,586,868 | |||
Penn West Energy Trust | 604,355 | 5,339,338 | |||
Petro-Canada | 758,625 | 16,788,580 | |||
Precision Drilling Trust | 114,979 | 334,376 | |||
Progress Energy Resources Corp.b | 218,917 | 1,551,061 | |||
Provident Energy Trust | 409,155 | 1,206,005 | |||
Suncor Energy Inc. | 1,467,255 | 30,597,444 | |||
Talisman Energy Inc. | 1,594,600 | 15,017,906 | |||
199,866,075 | |||||
OIL & GAS SERVICES – 0.12% | |||||
Trican Well Service Ltd. | 198,830 | 1,089,072 | |||
1,089,072 | |||||
PHARMACEUTICALS – 0.26% | |||||
Biovail Corp. | 222,530 | 2,371,128 | |||
2,371,128 | |||||
PIPELINES – 4.43% | |||||
Enbridge Inc. | 552,160 | 16,579,813 | |||
TransCanada Corp. | 958,545 | 23,343,217 | |||
39,923,030 | |||||
REAL ESTATE – 0.19% | |||||
Brookfield Properties Corp. | 334,985 | 1,694,923 | |||
1,694,923 | |||||
REAL ESTATE INVESTMENT TRUSTS – 0.19% | |||||
RioCan Real Estate Investment Trust | 168,385 | 1,684,049 | |||
1,684,049 | |||||
RETAIL – 1.87% | |||||
Alimentation Couche-Tard Inc. Class B | 203,490 | 2,100,894 | |||
Canadian Tire Corp. Ltd. Class A | 122,570 | 3,776,066 | |||
Shoppers Drug Mart Corp. | 321,300 | 10,956,891 | |||
16,833,851 |
SCHEDULESOF INVESTMENTS | 19 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI CANADA INDEX FUND
February 28, 2009
Security | Shares | Value | |||
TELECOMMUNICATIONS – 1.91% | |||||
BCE Inc. | 412,335 | $ | 8,068,943 | ||
Manitoba Telecom Services Inc. | 33,320 | 926,978 | |||
TELUS Corp. | 98,158 | 2,624,045 | |||
TELUS Corp. NVS | 222,530 | 5,580,569 | |||
17,200,535 | |||||
TRANSPORTATION – 3.44% | |||||
Canadian National Railway Co. | 731,255 | 23,548,157 | |||
Canadian Pacific Railway Ltd. | 261,205 | 7,410,947 | |||
30,959,104 | |||||
TOTAL COMMON STOCKS | 898,093,322 | ||||
SHORT-TERM INVESTMENTS – 0.03% | |||||
MONEY MARKET FUNDS – 0.03% | |||||
Barclays Global Investors Funds | 223,008 | 223,008 | |||
223,008 | |||||
TOTAL SHORT-TERM INVESTMENTS | |||||
(Cost: $223,008) | 223,008 | ||||
TOTAL INVESTMENTS IN | |||||
(Cost: $1,855,439,230) | 898,316,330 | ||||
Other Assets, Less Liabilities – 0.29% | 2,628,019 | ||||
NET ASSETS – 100.00% | $ | 900,944,349 | |||
NVS – Non-Voting Shares
a | Security valued using Level 3 inputs. 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.
20 | 2009 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited)
iSHARES® MSCI CHILE INVESTABLE MARKET INDEX FUND
February 28, 2009
Security | Shares | Value | |||
COMMON STOCKS – 91.09% | |||||
AIRLINES – 4.27% | |||||
LAN Airlines SA | 762,817 | $ | 6,391,536 | ||
6,391,536 | |||||
BANKS – 8.27% | |||||
Banco de Credito e Inversiones | 173,146 | 3,486,161 | |||
Banco Santander Chile SA | 209,658,823 | 7,070,708 | |||
CorpBanca SA | 436,063,478 | 1,829,125 | |||
12,385,994 | |||||
BEVERAGES – 5.87% | |||||
Coca-Cola Embonor SA Class B | 43,829 | 34,564 | |||
Compania Cervecerias Unidas SA | 951,776 | 5,174,244 | |||
Vina Concha y Toro SA | 2,195,353 | 3,585,829 | |||
8,794,637 | |||||
BUILDING MATERIALS – 0.41% | |||||
SalfaCorp SA | 703,885 | 620,033 | |||
620,033 | |||||
COMPUTERS – 1.22% | |||||
Sonda SA | 1,562,042 | 1,831,992 | |||
1,831,992 | |||||
ELECTRIC – 30.19% | |||||
Almendral SA | 31,393,783 | 2,318,189 | |||
Colbun SAa | 37,550,615 | 7,117,606 | |||
Empresa Nacional de Electricidad SA | 15,446,820 | 18,724,862 | |||
Enersis SA | 59,203,171 | 17,042,765 | |||
45,203,422 | |||||
ENGINEERING & CONSTRUCTION – 0.18% | |||||
Socovesa SA | 1,422,090 | 274,397 | |||
274,397 | |||||
FOOD – 4.69% | |||||
Centros Comerciales Sudamericanos SA | 4,092,776 | 7,020,210 | |||
7,020,210 | |||||
FOREST PRODUCTS & PAPER – 6.96% | |||||
Empresas CMPC SA | 479,913 | 8,830,882 | |||
Masisa SA | 18,313,619 | 1,594,760 | |||
10,425,642 | |||||
HEALTH CARE - SERVICES – 0.35% | |||||
Banmedica SA | 675,420 | 521,297 | |||
521,297 |
Security | Shares | Value | |||
HOLDING COMPANIES - DIVERSIFIED – 11.45% | |||||
Empresas Copec SA | 2,028,026 | $ | 16,352,151 | ||
Sigdo Koppers SA | 1,130,376 | 796,384 | |||
17,148,535 | |||||
IRON & STEEL – 3.70% | |||||
CAP SA | 406,011 | 5,543,549 | |||
5,543,549 | |||||
METAL FABRICATE & HARDWARE – 0.84% | |||||
Madeco SAa | 17,245,267 | 1,251,729 | |||
1,251,729 | |||||
REAL ESTATE – 0.41% | |||||
Parque Arauco SA | 1,165,169 | 606,044 | |||
606,044 | |||||
RETAIL – 5.68% | |||||
Farmacias Ahumada SA | 102,527 | 137,620 | |||
La Polar SA | 1,233,175 | 2,576,012 | |||
SACI Falabella SAa | 1,910,150 | 5,790,383 | |||
8,504,015 | |||||
TELECOMMUNICATIONS – 3.31% | |||||
Empresa Nacional de Telecomunicaciones SA | 454,919 | 4,948,465 | |||
4,948,465 | |||||
TRANSPORTATION – 1.07% | |||||
Compania SudAmericana de Vapores SA | 2,324,365 | 1,598,976 | |||
1,598,976 | |||||
WATER – 2.22% | |||||
Inversiones Aguas Metropolitanas SAa | 3,752,231 | 3,323,746 | |||
3,323,746 | |||||
TOTAL COMMON STOCKS | 136,394,219 | ||||
PREFERRED STOCKS – 8.82% | |||||
CHEMICALS – 8.82% | |||||
Sociedad Quimica y Minera de Chile SA Class B | 461,428 | 13,206,441 | |||
13,206,441 | |||||
TOTAL PREFERRED STOCKS | 13,206,441 |
SCHEDULESOF INVESTMENTS | 21 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI CHILE INVESTABLE MARKET INDEX FUND
February 28, 2009
Security | Shares | Value | |||
SHORT-TERM INVESTMENTS – 0.06% | |||||
MONEY MARKET FUNDS – 0.06% | |||||
Barclays Global Investors Funds | 84,356 | $ | 84,356 | ||
84,356 | |||||
TOTAL SHORT-TERM INVESTMENTS | |||||
(Cost: $84,356) | 84,356 | ||||
TOTAL INVESTMENTS IN | 149,685,016 | ||||
Other Assets, Less Liabilities – 0.03% | 42,016 | ||||
NET ASSETS – 100.00% | $ | 149,727,032 | |||
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.
22 | 2009 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited)
iSHARES® MSCI ISRAEL CAPPED INVESTABLE MARKET INDEX FUND
February 28, 2009
Security | Shares | Value | |||
COMMON STOCKS – 99.77% | |||||
AEROSPACE & DEFENSE – 3.07% | |||||
Elbit Systems Ltd. | 57,293 | $ | 2,545,557 | ||
2,545,557 | |||||
AIRLINES – 0.13% | |||||
El Al Israel Airlines Ltd.a | 477,159 | 106,923 | |||
106,923 | |||||
BANKS – 13.19% | |||||
Bank Hapoalim Ltd.a | 2,268,763 | 4,055,076 | |||
Bank Leumi le-Israelb | 2,297,484 | 4,089,785 | |||
First International Bank of Israel Ltd.a | 56,560 | 311,054 | |||
Israel Discount Bank Ltd. | 1,359,927 | 915,190 | |||
Mizrahi Tefahot Bank Ltd. | 344,394 | 1,545,113 | |||
Union Bank of Israela | 15,654 | 26,899 | |||
10,943,117 | |||||
CHEMICALS – 14.82% | |||||
Frutarom Industries Ltd. | 93,439 | 594,784 | |||
Israel Chemicals Ltd. | 1,194,076 | 9,360,671 | |||
Makhteshim-Agan Industries Ltd.b | 692,858 | 2,339,720 | |||
12,295,175 | |||||
COMMERCIAL SERVICES – 0.31% | |||||
AL-ROV Israel Ltd. | 13,378 | 49,662 | |||
Nitsba Holdings 1995 Ltd.a | 34,159 | 204,997 | |||
254,659 | |||||
DIVERSIFIED FINANCIAL SERVICES – 0.30% | |||||
FIBI Holdings Ltd.a | 27,520 | 178,497 | |||
Mivtach Shamir Holdings Ltd.a | 4,680 | 67,551 | |||
246,048 | |||||
ELECTRICAL COMPONENTS & | |||||
Electra (Israel) Ltd. | 2,895 | 193,079 | |||
193,079 | |||||
ELECTRONICS – 0.76% | |||||
Elron Electronic Industries Ltd.a | 23,108 | 47,372 | |||
Ituran Location and Control Ltd. | 36,095 | 234,257 | |||
Orbotech Ltd.a | 85,914 | 352,247 | |||
633,876 |
Security | Shares | Value | |||
ENGINEERING & CONSTRUCTION – 0.40% | |||||
Housing & Construction Holdings Ltd.a | 444,246 | $ | 332,183 | ||
332,183 | |||||
FOOD – 0.90% | |||||
Blue Square-Israel Ltd. | 23,373 | 148,724 | |||
Super-Sol Ltd. | 193,821 | 595,610 | |||
744,334 | |||||
FOREST PRODUCTS & PAPER – 0.09% | |||||
Hadera Paper Ltd.a | 2,427 | 77,157 | |||
77,157 | |||||
HEALTH CARE - PRODUCTS – 0.78% | |||||
Given Imaging Ltd. | 40,916 | 320,781 | |||
Syneron Medical Ltd.a | 63,097 | 329,366 | |||
650,147 | |||||
HOLDING COMPANIES - DIVERSIFIED – 0.48% | |||||
Clal Industries and Investments Ltd. | 121,312 | 263,119 | |||
Elco Holdings Ltd. | 22,259 | 110,065 | |||
Granite Hacarmel Investments Ltd.a | 15,170 | 24,615 | |||
397,799 | |||||
HOME BUILDERS – 0.50% | |||||
Bayside Land Corp. Ltd. | 1,380 | 215,365 | |||
Property & Building Corp. Ltd. | 4,945 | 197,046 | |||
412,411 | |||||
INSURANCE – 1.27% | |||||
Clal Insurance Enterprise Holdings Ltd.b | 32,565 | 181,449 | |||
Harel Insurance Investments & Finances Ltd.b | 21,706 | 473,827 | |||
Menorah Mivtachim Holdings Ltd. Class La | 52,009 | 270,595 | |||
Phoenix Holdings Ltd.a | 160,663 | 130,250 | |||
1,056,121 | |||||
INTERNET – 11.58% | |||||
Aladdin Knowledge Systems Ltd.a | 26,524 | 277,441 | |||
Check Point Software Technologies Ltd.a | 402,670 | 8,846,660 | |||
RADVision Ltd.a | 45,536 | 258,189 | |||
Radware Ltd.a | 37,895 | 227,749 | |||
9,610,039 |
SCHEDULESOF INVESTMENTS | 23 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI ISRAEL CAPPED INVESTABLE MARKET INDEX FUND
February 28, 2009
Security | Shares | Value | |||
INVESTMENT COMPANIES – 5.18% | |||||
Delek Group Ltd. (The)b | 11,395 | $ | 782,242 | ||
Discount Investment Corp. Ltd. | 54,380 | 478,766 | |||
Elbit Imaging Ltd. | 28,821 | 343,422 | |||
IDB Development Corp. Ltd.b | 30,634 | 301,035 | |||
IDB Holding Corp. Ltd. | 20,464 | 247,939 | |||
Israel Corp. Ltd. (The) | 5,406 | 1,563,460 | |||
Koor Industries Ltd.a | 51,357 | 580,612 | |||
4,297,476 | |||||
MACHINERY – 1.53% | |||||
Ormat Industries Ltd. | 194,923 | 1,269,459 | |||
1,269,459 | |||||
MANUFACTURING – 0.24% | |||||
FMS Enterprises Migun Ltd. | 8,778 | 146,265 | |||
Plasson Industries Ltd. | 4,346 | 55,496 | |||
201,761 | |||||
MEDIA – 0.59% | |||||
Hot Telecommunication System Ltd.a | 74,003 | 484,988 | |||
484,988 | |||||
OIL & GAS – 0.97% | |||||
Delek Drilling LP | 300,510 | 239,202 | |||
Oil Refineries Ltd.b | 2,198,684 | 564,812 | |||
804,014 | |||||
PHARMACEUTICALS – 23.99% | |||||
Teva Pharmaceutical Industries Ltd. | 435,395 | 19,911,933 | |||
19,911,933 | |||||
REAL ESTATE – 2.33% | |||||
Africa Israel Investments Ltd.b | 34,516 | 267,250 | |||
Africa Israel Properties Ltd.a | 12,783 | 122,255 | |||
Alony Hetz Properties & Investments Ltd. | 180,678 | 183,912 | |||
Amot Investments Ltd. | 54,643 | 67,826 | |||
Azorim-Investment Development & Construction Co. Ltd. | 44,080 | 97,765 | |||
British Israel Investments Ltd. | 57,505 | 67,453 | |||
Electra Real Estate Ltd. | 2,518 | 13,708 | |||
Gazit Globe Ltd.b | 152,140 | 568,809 | |||
Gazit Inc. | 16,984 | 118,476 | |||
Industrial Buildings Corp. Ltd. | 203,147 | 222,365 | |||
Jerusalem Economy Ltd.a | 37,683 | 141,341 |
Security | Shares | Value | |||
Melisron Ltd. | 5,459 | $ | 64,495 | ||
1,935,655 | |||||
RETAIL – 0.40% | |||||
Delek Automotive Systems Ltd. | 71,603 | 334,543 | |||
334,543 | |||||
SEMICONDUCTORS – 0.22% | |||||
Mellanox Technologies Ltd.a | 21,571 | 183,357 | |||
183,357 | |||||
SOFTWARE – 0.45% | |||||
Fundtech Ltd.a | 15,251 | 93,336 | |||
Retalix Ltd.a | 38,763 | 281,901 | |||
375,237 | |||||
TELECOMMUNICATION EQUIPMENT – 0.11% | |||||
AudioCodes Ltd.a | 80,879 | 90,585 | |||
90,585 | |||||
TELECOMMUNICATIONS – 14.95% | |||||
Alvarion Ltd.a | 111,088 | 343,262 | |||
Bezeq Israeli Telecommunication Corp. Ltd. | 2,537,889 | 3,923,940 | |||
Cellcom Israel Ltd. | 89,359 | 1,787,180 | |||
Ceragon Networks Ltd.a | 67,905 | 316,437 | |||
Gilat Satellite Networks Ltd.a | 83,088 | 259,235 | |||
NICE Systems Ltd.a | 140,344 | 2,860,163 | |||
Partner Communications Co. Ltd. | 186,348 | 2,750,856 | |||
RRSat Global Communications Network Ltd. | 14,893 | 163,823 | |||
12,404,896 | |||||
TOTAL COMMON STOCKS | 82,792,529 | ||||
SHORT-TERM INVESTMENTS – 8.36% | |||||
MONEY MARKET FUNDS – 8.36% | |||||
Barclays Global Investors Funds | 5,937,004 | 5,937,004 | |||
Barclays Global Investors Funds | 992,493 | 992,493 |
24 | 2009 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI ISRAEL CAPPED INVESTABLE MARKET INDEX FUND
February 28, 2009
Security | Shares | Value | ||||
Barclays Global Investors Funds | 10,801 | $ | 10,801 | |||
6,940,298 | ||||||
TOTAL SHORT-TERM INVESTMENTS | 6,940,298 | |||||
TOTAL INVESTMENTS IN | 89,732,827 | |||||
Other Assets, Less Liabilities – (8.13)% | (6,745,666 | ) | ||||
NET ASSETS – 100.00% | $ | 82,987,161 | ||||
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 | All or a portion of 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 MEXICO INVESTABLE MARKET INDEX FUND
February 28, 2009
Security | Shares | Value | |||
COMMON STOCKS – 99.88% | |||||
BANKS – 0.74% | |||||
Banco Compartamos SA de CV | 1,380,000 | $ | 2,455,993 | ||
2,455,993 | |||||
BEVERAGES – 9.91% | |||||
Coca-Cola FEMSA SAB de CV SP ADR | 137,941 | 4,298,242 | |||
Fomento Economico Mexicano SAB de CV BD Units | 8,318,408 | 19,409,977 | |||
Grupo Modelo SAB de CV Series C | 3,463,856 | 9,010,392 | |||
32,718,611 | |||||
BUILDING MATERIALS – 4.11% | |||||
Cemex SAB de CV Series CPOa | 24,881,440 | 13,561,660 | |||
13,561,660 | |||||
CHEMICALS – 0.65% | |||||
Mexichem SAB de CV | 3,132,600 | 2,154,018 | |||
2,154,018 | |||||
DIVERSIFIED FINANCIAL SERVICES – 5.30% | |||||
Bolsa Mexicana de Valores SAB de CVa | 1,228,200 | 785,890 | |||
Financiera Independencia SAB de CVb | 360,642 | 123,154 | |||
Grupo Financiero Banorte SAB de CV Series O | 7,714,200 | 8,230,240 | |||
Grupo Financiero Inbursa SAB de CV Series O | 4,333,200 | 8,364,047 | |||
17,503,331 | |||||
ENGINEERING & CONSTRUCTION – 5.33% | |||||
Carso Infraestructura y Construccion SAB de CV Series B1a | 4,664,400 | 2,038,200 | |||
Empresas ICA SAB de CVa | 2,497,874 | 3,718,368 | |||
Grupo Aeroportuario del Centro Norte SAB de CV | 907,500 | 856,283 | |||
Grupo Aeroportuario del Pacifico SAB de CV Series B | 3,105,000 | 5,320,098 | |||
Grupo Aeroportuario del Sureste SA de CV Series B ADR | 183,126 | 5,297,835 | |||
Promotora y Operadora de Infraestructura SAB de CVa,b | 345,000 | 355,954 | |||
17,586,738 |
Security | Shares | Value | |||
ENVIRONMENTAL CONTROL – 0.00% | |||||
Promotora Ambiental SAB | 27,600 | $ | 13,909 | ||
13,909 | |||||
FOOD – 2.85% | |||||
Alsea SAB de CVa | 2,028,645 | 570,345 | |||
Gruma SAB de CV Series Ba | 1,200,669 | 390,108 | |||
Grupo Bimbo SAB de CV | 2,956,500 | 8,435,577 | |||
9,396,030 | |||||
FOREST PRODUCTS & PAPER – 3.51% | |||||
Kimberly-Clark de Mexico SAB de CV Series Ab | 3,698,400 | 11,575,011 | |||
11,575,011 | |||||
HOLDING COMPANIES - DIVERSIFIED – 3.93% | |||||
Alfa SAB de CV Series A | 1,904,400 | 2,630,347 | |||
Grupo Carso SA de CV | 5,326,830 | 10,324,361 | |||
12,954,708 | |||||
HOME BUILDERS – 2.69% | |||||
Consorcio ARA SAB de CVb | 4,940,400 | 1,228,454 | |||
Corporacion Geo SAB de CV | 2,277,460 | 2,094,560 | |||
Desarrolladora Homex SAB | 1,297,230 | 2,737,050 | |||
Sare Holding SAB de CV | 361,900 | 42,954 | |||
Urbi Desarrollos Urbanos SA | 3,256,800 | 2,768,501 | |||
8,871,519 | |||||
HOUSEWARES – 0.02% | |||||
Vitro SAB de CV Series A | 248,400 | 69,507 | |||
69,507 | |||||
IRON & STEEL – 0.26% | |||||
Cia Minera Autlan SAB de CV | 252,200 | 369,910 | |||
Grupo Simec SAB de CV | 331,200 | 487,319 | |||
857,229 | |||||
MACHINERY – 0.29% | |||||
Industrias CH SAB de CV | 441,600 | 953,408 | |||
953,408 | |||||
MEDIA – 6.28% | |||||
Grupo Televisa SA Series CPO | 6,996,699 | 17,309,478 |
26 | 2009 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI MEXICO INVESTABLE MARKET INDEX FUND
February 28, 2009
Security | Shares | Value | |||
Megacable Holdings SAB | 1,490,400 | $ | 1,680,031 | ||
TV Azteca SAB de CV | 5,431,500 | 1,725,126 | |||
20,714,635 | |||||
MINING – 4.67% | |||||
Grupo Mexico SA de CV Series B | 18,959,098 | 10,874,250 | |||
Industrias Penoles SAB | 510,600 | 4,544,941 | |||
15,419,191 | |||||
PHARMACEUTICALS – 0.03% | |||||
Genomma Lab Internacional SAB de CV Series Ba | 187,400 | 99,409 | |||
99,409 | |||||
RETAIL – 8.22% | |||||
Grupo Elektra SA de CVb | 358,830 | 7,222,212 | |||
Grupo Famsa SAB de CV Series Aa,b | 1,476,600 | 535,569 | |||
Wal-Mart de Mexico SAB de CV Series Vb | 10,281,000 | 19,353,802 | |||
27,111,583 | |||||
TELECOMMUNICATIONS – 41.09% | |||||
America Movil SAB de CV Series L | 63,411,040 | 81,990,782 | |||
Axtel SAB de CV | 5,823,600 | 2,108,384 | |||
Carso Global Telecom SAB de CV Series A1a,b | 5,037,031 | 13,373,166 | |||
Grupo Iusacell SA de CVa | 280,800 | 313,735 | |||
Maxcom Telecomunicaciones SAB de CVa,b | 502,200 | 215,783 | |||
Telefonos de Mexico SAB de CV Series L | 31,726,200 | 22,215,061 | |||
Telmex Internacional SAB de CV Series L | 39,909,600 | 15,375,139 | |||
135,592,050 | |||||
TOTAL COMMON STOCKS | |||||
(Cost: $776,615,742) | 329,608,540 |
Security | Shares | Value | ||||
SHORT-TERM INVESTMENTS – 4.47% |
| |||||
MONEY MARKET FUNDS – 4.47% |
| |||||
Barclays Global Investors Funds | 12,482,063 | $ | 12,482,063 | |||
Barclays Global Investors Funds | 2,086,635 | 2,086,635 | ||||
Barclays Global Investors Funds Treasury Money Market | 190,819 | 190,819 | ||||
14,759,517 | ||||||
TOTAL SHORT-TERM INVESTMENTS |
| |||||
(Cost: $14,759,517) | 14,759,517 | |||||
TOTAL INVESTMENTS IN | ||||||
(Cost: $791,375,259) | 344,368,057 | |||||
Other Assets, Less Liabilities – (4.35)% | (14,368,280 | ) | ||||
NET ASSETS – 100.00% | $ | 329,999,777 | ||||
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 | All or a portion of this security represents an investment of securities lending collateral. See Note 5. |
See notes to financial statements.
SCHEDULESOF INVESTMENTS | 27 |
Table of Contents
Schedule of Investments (Unaudited)
iSHARES® MSCI SOUTH AFRICA INDEX FUND
February 28, 2009
Security | Shares | Value | |||
COMMON STOCKS – 99.94% | |||||
BANKS – 12.63% | |||||
Absa Group Ltd. | 600,450 | $ | 5,320,329 | ||
FirstRand Ltd. | 5,525,175 | 6,628,340 | |||
Nedbank Group Ltd. | 413,550 | 3,098,177 | |||
Standard Bank Group Ltd. | 2,242,950 | 14,514,585 | |||
29,561,431 | |||||
BUILDING MATERIALS – 1.23% | |||||
Pretoria Portland Cement Co. Ltd. | 973,500 | 2,878,486 | |||
2,878,486 | |||||
DIVERSIFIED FINANCIAL SERVICES – 3.03% | |||||
African Bank Investments Ltd. | 1,496,325 | 3,135,810 | |||
Investec Ltd. | 410,550 | 1,234,368 | |||
RMB Holdings Ltd. | 1,417,800 | 2,717,173 | |||
7,087,351 | |||||
ELECTRONICS – 0.55% | |||||
Reunert Ltd. | 345,000 | 1,279,088 | |||
1,279,088 | |||||
ENGINEERING & CONSTRUCTION – 1.76% | |||||
Aveng Ltd. | 767,025 | 1,966,339 | |||
Murray & Roberts Holdings Ltd. | 583,725 | 2,153,701 | |||
4,120,040 | |||||
FOOD – 3.55% | |||||
Shoprite Holdings Ltd. | 853,725 | 4,239,514 | |||
Tiger Brands Ltd. | 322,575 | 4,062,496 | |||
8,302,010 | |||||
FOREST PRODUCTS & PAPER – 0.75% | |||||
Sappi Ltd. | 930,000 | 1,759,172 | |||
1,759,172 | |||||
HEALTH CARE - PRODUCTS – 0.90% | |||||
Aspen Pharmacare Holdings Ltd.a | 509,100 | 2,103,405 | |||
2,103,405 | |||||
HEALTH CARE - SERVICES – 0.80% | |||||
Netcare Ltd.a | 2,178,900 | 1,865,552 | |||
1,865,552 | |||||
HOLDING COMPANIES - DIVERSIFIED – 5.34% | |||||
Barloworld Ltd.b | 408,675 | 1,228,324 | |||
Bidvest Group Ltd. | 521,100 | 4,305,968 | |||
Imperial Holdings Ltd. | 324,000 | 1,428,961 | |||
Remgro Ltd. | 836,850 | 5,523,735 | |||
12,486,988 |
Security | Shares | Value | |||
HOME FURNISHINGS – 1.01% | |||||
Steinhoff International Holdings Ltd.b | 2,110,200 | $ | 2,357,155 | ||
2,357,155 | |||||
INSURANCE – 3.26% | |||||
Liberty Holdings Ltd. | 224,550 | 1,430,529 | |||
Sanlam Ltd. | 4,079,700 | 6,206,164 | |||
7,636,693 | |||||
IRON & STEEL – 2.31% | |||||
ArcelorMittal South Africa Ltd. | 393,525 | 2,897,225 | |||
Kumba Iron Ore Ltd. | 155,925 | 2,499,271 | |||
5,396,496 | |||||
MEDIA – 4.92% | |||||
Naspers Ltd. Class N | 750,975 | 11,513,779 | |||
11,513,779 | |||||
MINING – 25.50% | |||||
African Rainbow Minerals Ltd. | 227,400 | 2,558,236 | |||
Anglo Platinum Ltd. | 139,875 | 5,373,445 | |||
AngloGold Ashanti Ltd.b | 549,675 | 16,280,383 | |||
Exxaro Resources Ltd. | 242,475 | 1,629,455 | |||
Gold Fields Ltd. | 1,215,900 | 12,649,863 | |||
Harmony Gold Mining Co. Ltd.a | 672,750 | 8,221,421 | |||
Impala Platinum Holdings Ltd. | 1,052,250 | 12,423,349 | |||
Northam Platinum Ltd. | 243,975 | 530,238 | |||
59,666,390 | |||||
OIL & GAS – 12.62% | |||||
Sasol Ltd. | 1,176,600 | 29,518,961 | |||
29,518,961 | |||||
REAL ESTATE – 1.58% | |||||
Growthpoint Properties Ltd. | 2,763,750 | 3,700,775 | |||
3,700,775 | |||||
RETAIL – 4.46% | |||||
Foschini Ltd. | 423,000 | 1,746,831 | |||
Massmart Holdings Ltd. | 393,300 | 2,834,877 | |||
Pick’n Pay Stores Ltd. | 452,700 | 1,397,153 | |||
Truworths International Ltd. | 840,975 | 2,607,194 | |||
Woolworths Holdings Ltd. | 1,568,325 | 1,858,038 | |||
10,444,093 | |||||
TELECOMMUNICATIONS – 13.74% | |||||
MTN Group Ltd. | 3,106,875 | 26,600,752 |
28 | 2009 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI SOUTH AFRICA INDEX FUND
February 28, 2009
Security | Shares | Value | ||||
Telkom South Africa Ltd. | 561,750 | $ | 5,540,602 | |||
32,141,354 | ||||||
TOTAL COMMON STOCKS | ||||||
(Cost: $475,625,236) | 233,819,219 | |||||
SHORT-TERM INVESTMENTS – 0.68% |
| |||||
MONEY MARKET FUNDS – 0.68% |
| |||||
Barclays Global Investors Funds | 1,352,029 | 1,352,029 | ||||
Barclays Global Investors Funds | 226,020 | 226,020 | ||||
Barclays Global Investors Funds | 8,733 | 8,733 | ||||
1,586,782 | ||||||
TOTAL SHORT-TERM INVESTMENTS |
| |||||
(Cost: $1,586,782) | 1,586,782 | |||||
TOTAL INVESTMENTS IN | 235,406,001 | |||||
Other Assets, Less Liabilities – (0.62)% | (1,443,724 | ) | ||||
NET ASSETS – 100.00% | $ | 233,962,277 | ||||
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 | All or a portion of this security represents an investment of securities lending collateral. See Note 5. |
See notes to financial statements.
SCHEDULESOF INVESTMENTS | 29 |
Table of Contents
Schedule of Investments (Unaudited)
iSHARES® MSCI TURKEY INVESTABLE MARKET INDEX FUND
February 28, 2009
Security | Shares | Value | |||
COMMON STOCKS – 99.94% | |||||
AEROSPACE & DEFENSE – 0.18% | |||||
Aselsan Elektronik Sanayi ve Ticaret ASa | 70,163 | $ | 116,289 | ||
116,289 | |||||
AIRLINES – 1.02% | |||||
Turk Hava Yollari Anonim Ortakligia,b | 199,437 | 656,409 | |||
656,409 | |||||
AUTO MANUFACTURERS – 1.27% | |||||
Ford Otomotiv Sanayi AS | 198,575 | 487,845 | |||
Otokar Otobus Karoseri Sanayi ASa | 20,837 | 97,973 | |||
Tofas Turk Otomobil Fabrikasi ASa | 325,595 | 235,377 | |||
821,195 | |||||
BANKS – 36.53% | |||||
Akbank TASa | 2,332,337 | 5,373,511 | |||
Albaraka Turk Katilim Bankasi AS | 266,151 | 301,902 | |||
Alternatifbank ASb | 228,934 | 87,459 | |||
Asya Katilim Bankasi ASa,b | 1,078,250 | 633,724 | |||
Sekerbank TASa | 353,952 | 183,066 | |||
Tekstil Bankasi ASb | 276,496 | 65,003 | |||
Turk Ekonomi Bankasi ASa,b | 570,141 | 191,002 | |||
Turkiye Garanti Bankasi ASa,b | 5,447,836 | 6,627,888 | |||
Turkiye Halk Bankasi AS | 829,317 | 1,744,956 | |||
Turkiye Is Bankasi AS | 2,482,368 | 4,785,428 | |||
Turkiye Vakiflar Bankasi TAO | 2,126,125 | 1,349,564 | |||
Yapi ve Kredi Bankasi ASa,b | 2,309,336 | 2,239,504 | |||
23,583,007 | |||||
BEVERAGES – 5.79% | |||||
Anadolu Efes Biracilik ve Malt Sanayii ASa | 495,836 | 3,147,332 | |||
Coca-Cola Icecek AS | 141,675 | 587,034 | |||
3,734,366 | |||||
BUILDING MATERIALS – 1.63% | |||||
Adana Cimento Sanayi TAS Class A | 120,498 | 220,961 | |||
Akcansa Cimento Sanayi ve Ticaret ASa | 129,455 | 155,214 | |||
Bolu Cimento Sanayii AS | 232,637 | 162,707 | |||
Cimsa Cimento Sanayi ve Ticaret ASa | 142,848 | 246,833 | |||
Mardin Cimento Sanayii ve Ticaret AS | 141,957 | 266,985 | |||
1,052,700 |
Security | Shares | Value | |||
CHEMICALS – 1.50% | |||||
Aksa Akrilik Kimya Sanayii ASb | 169,743 | $ | 162,615 | ||
Bagfas Bandirma Gubre Fabrik | 4,000 | 146,934 | |||
Gubre Fabrikalari TAS | 44,321 | 135,456 | |||
Petkim Petrokimya Holding ASa,b | 222,772 | 523,723 | |||
968,728 | |||||
COMMERCIAL SERVICES – 0.48% | |||||
Ihlas Holding ASa,b | 934,029 | 115,282 | |||
Koza Anadolu Metal Madencilik Isletmeleri ASa,b | 239,802 | 195,906 | |||
311,188 | |||||
DISTRIBUTION & WHOLESALE – 0.33% | |||||
Aygaz ASa,b | 181,372 | 211,065 | |||
211,065 | |||||
DIVERSIFIED FINANCIAL SERVICES – 0.55% | |||||
Finans Finansal Kiralama ASa,b | 133,871 | 91,269 | |||
Turkiye Sinai Kalkinma Bankasi ASa,b | 673,381 | 265,165 | |||
356,434 | |||||
ELECTRIC – 0.60% | |||||
Akenerji Elektrik Uretim ASa,b | 67,614 | 250,356 | |||
Zorlu Enerji Elektrik Uretim ASb | 118,649 | 136,679 | |||
387,035 | |||||
ENGINEERING & CONSTRUCTION – 4.70% | |||||
Enka Insaat ve Sanayi AS | 639,443 | 2,330,099 | |||
TAV Havalimanlari Holding ASa,b | 292,699 | 474,800 | |||
TAV Havalimanlari Holding AS Newa,b | 147,352 | 232,098 | |||
3,036,997 | |||||
ENTERTAINMENT – 0.23% | |||||
Galatasaray Sportif Sinai ve Ticari Yatirimlar AS | 2,159 | 151,001 | |||
151,001 | |||||
FOOD – 3.64% | |||||
BIM Birlesik Magazalar AS | 103,191 | 2,031,737 | |||
Tat Konserve Sanayii ASa,b | 196,653 | 114,424 | |||
Ulker Biskuvi Sanayi ASa | 212,697 | 206,265 | |||
2,352,426 | |||||
HOLDING COMPANIES - DIVERSIFIED – 6.97% | |||||
Alarko Holding ASa | 322,977 | 318,905 | |||
Dogan Sirketler Grubu Holdings ASa,b | 2,404,858 | 720,843 | |||
Haci Omer Sabanci Holding AS | 1,123,420 | 1,624,269 |
30 | 2009 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI TURKEY INVESTABLE MARKET INDEX FUND
February 28, 2009
Security | Shares | Value | |||
KOC Holding ASb | 777,738 | $ | 969,059 | ||
Tekfen Holding ASa | 324,559 | 499,776 | |||
Yazicilar Holding ASa | 125,498 | 365,847 | |||
4,498,699 | |||||
HOME FURNISHINGS – 0.72% | |||||
Arcelik AS | 216,132 | 221,029 | |||
Vestel Beyaz Esya Sanayi ve Ticaret ASa | 181,376 | 116,195 | |||
Vestel Elektronik Sanayi ve Ticaret ASb | 264,821 | 124,516 | |||
461,740 | |||||
HOUSEWARES – 0.79% | |||||
Anadolu Cam Sanayii ASa,b | 210,059 | 119,755 | |||
Turk Sise ve Cam Fabrikalari ASb | 696,615 | 388,953 | |||
508,708 | |||||
INSURANCE – 1.75% | |||||
Aksigorta AS | 308,749 | 430,066 | |||
Anadolu Anonim Turk Sigorta Sirketi | 471,834 | 252,355 | |||
Anadolu Hayat Emeklilik ASa | 86,855 | 63,299 | |||
Gunes Sigorta AS | 258,750 | 153,597 | |||
Yapi Kredi Sigorta ASa | 75,948 | 227,650 | |||
1,126,967 | |||||
IRON & STEEL – 5.59% | |||||
Componenta Dokumculuk Ticaret Ve Sanayi AS | 58,851 | 149,423 | |||
Eregli Demir ve Celik Fabrikalari TASa | 1,446,149 | 2,923,832 | |||
Izmir Demir Celik Sanayi AS | 77,236 | 68,545 | |||
Kardemir Karabuk Demir Celik Sanayi ve Ticaret AS Class Ab | 377,727 | 170,942 | |||
Kardemir Karabuk Demir Celik Sanayi ve Ticaret AS Class Da,b | 1,009,273 | 296,592 | |||
3,609,334 | |||||
MACHINERY – 0.16% | |||||
Turk Traktor ve Ziraat Makineleri AS | 46,388 | 100,331 | |||
100,331 | |||||
MEDIA – 0.58% | |||||
Dogan Gazetecilik ASa,b | 105,498 | 71,926 | |||
Dogan Yayin Holding ASa,b | 551,641 | 145,898 |
Security | Shares | Value | |||
Hurriyet Gazetecilik ve Matbaacilik ASa,b | 574,392 | $ | 155,291 | ||
373,115 | |||||
MISCELLANEOUS - MANUFACTURING – 0.29% | |||||
Trakya Cam Sanayii ASa,b | 393,593 | 187,376 | |||
187,376 | |||||
OIL & GAS – 4.38% | |||||
Tupras-Turkiye Petrol Rafinerileri AS | 310,222 | 2,826,084 | |||
2,826,084 | |||||
PHARMACEUTICALS – 1.11% | |||||
Deva Holding ASb | 40,804 | 130,701 | |||
EIS Eczacibasi Ilac ve Sinai | 470,062 | 223,780 | |||
Selcuk Ecza Deposu Ticaret ve Sanayi ASa | 365,923 | 363,460 | |||
717,941 | |||||
REAL ESTATE INVESTMENTTRUSTS – 0.64% | |||||
Is Gayrimenkul Yatirim Ortakligi ASa | 523,049 | 285,895 | |||
Sinpas Gayrimenkul Yatirim Ortakligi ASb | 154,950 | 125,676 | |||
411,571 | |||||
RETAIL – 0.44% | |||||
Dogus Otomotiv Servis ve Ticaret ASa | 106,378 | 105,662 | |||
Turcas Petrolculuk ASa | 124,667 | 180,247 | |||
285,909 | |||||
TELECOMMUNICATIONS – 18.07% | |||||
Turk Telekomunikasyon ASa,b | 1,420,258 | 3,255,462 | |||
Turkcell Iletisim Hizmetleri ASa | 1,693,182 | 8,408,938 | |||
11,664,400 | |||||
TOTAL COMMON STOCKS | |||||
(Cost: $143,245,336) | 64,511,015 | ||||
SHORT-TERM INVESTMENTS – 30.89% | |||||
MONEY MARKET FUNDS – 30.89% | |||||
Barclays Global Investors Funds | 17,084,778 | 17,084,778 |
SCHEDULESOF INVESTMENTS | 31 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI TURKEY INVESTABLE MARKET INDEX FUND
February 28, 2009
Security | Shares | Value | ||||
Barclays Global Investors Funds | 2,856,074 | $ | 2,856,074 | |||
Barclays Global Investors Funds | 1,679 | 1,679 | ||||
19,942,531 | ||||||
TOTAL SHORT-TERM INVESTMENTS |
| |||||
(Cost: $19,942,531) | 19,942,531 | |||||
TOTAL INVESTMENTS IN | 84,453,546 | |||||
Other Assets, Less Liabilities – (30.83)% | (19,901,845 | ) | ||||
NET ASSETS – 100.00% | $ | 64,551,701 | ||||
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 | All or a portion of this security represents an investment of securities lending collateral. See Note 5. |
See notes to financial statements.
32 | 2009 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Statements of Assets and Liabilities (Unaudited)
iSHARES®, INC.
February 28, 2009
iShares MSCI | ||||||||||||||||
Brazil Index Fund | BRIC Index Fund | Canada Index Fund | Chile Investable Market Index Fund | |||||||||||||
ASSETS | ||||||||||||||||
Investments, at cost: | ||||||||||||||||
Unaffiliated issuers | $ | 4,885,515,257 | $ | 211,842,161 | $ | 1,855,216,222 | $ | 185,808,800 | ||||||||
Affiliated issuers (Note 2) | 81,441,274 | 12,278,229 | 223,008 | 84,356 | ||||||||||||
Total cost of investments | $ | 4,966,956,531 | $ | 224,120,390 | $ | 1,855,439,230 | $ | 185,893,156 | ||||||||
Investments in securities, at fair value (including securities on loana) (Note 1): | ||||||||||||||||
Unaffiliated issuers | $ | 3,840,215,970 | $ | 97,004,898 | $ | 898,093,322 | $ | 149,600,660 | ||||||||
Affiliated issuers (Note 2) | 81,441,274 | 12,278,229 | 223,008 | 84,356 | ||||||||||||
Total fair value of investments | 3,921,657,244 | 109,283,127 | 898,316,330 | 149,685,016 | ||||||||||||
Foreign currencies, at valueb | 1,437 | 10,961 | 1,625,024 | – | ||||||||||||
Receivables: | ||||||||||||||||
Investment securities sold | 86,390,719 | 1,321,058 | 3,992,037 | – | ||||||||||||
Dividends and interest | 37,647,411 | 360,982 | 1,612,293 | 121,057 | ||||||||||||
Total Assets | 4,045,696,811 | 110,976,128 | 905,545,684 | 149,806,073 | ||||||||||||
LIABILITIES | ||||||||||||||||
Payables: | ||||||||||||||||
Investment securities purchased | 72,743,552 | 1,379,248 | 4,178,580 | – | ||||||||||||
Collateral for securities on loan (Note 5) | 68,502,150 | 12,084,734 | – | – | ||||||||||||
Capital shares redeemed | – | 58,769 | – | – | ||||||||||||
Investment advisory fees (Note 2) | 2,192,100 | 59,822 | 422,755 | 79,041 | ||||||||||||
Total Liabilities | 143,437,802 | 13,582,573 | 4,601,335 | 79,041 | ||||||||||||
NET ASSETS | $ | 3,902,259,009 | $ | 97,393,555 | $ | 900,944,349 | $ | 149,727,032 | ||||||||
Net assets consist of: | ||||||||||||||||
Paid-in capital | $ | 5,394,228,069 | $ | 223,686,475 | $ | 1,982,002,702 | $ | 202,929,672 | ||||||||
Undistributed net investment income | 12,362,883 | 4,963 | 2,484,925 | 241,255 | ||||||||||||
Accumulated net realized loss | (457,306,071 | ) | (11,451,079 | ) | (126,382,476 | ) | (17,240,954 | ) | ||||||||
Net unrealized depreciation on investments and translation of assets and liabilities in foreign currencies | (1,047,025,872 | ) | (114,846,804 | ) | (957,160,802 | ) | (36,202,941 | ) | ||||||||
NET ASSETS | $ | 3,902,259,009 | $ | 97,393,555 | $ | 900,944,349 | $ | 149,727,032 | ||||||||
Shares outstandingc | 113,800,000 | 4,450,000 | 59,500,000 | 4,550,000 | ||||||||||||
Net asset value per share | $ | 34.29 | $ | 21.89 | $ | 15.14 | $ | 32.91 | ||||||||
a | Securities on loan with market values of $65,231,834, $11,434,308, $– and $–, respectively. See Note 5. |
b | Cost of foreign currencies: $1,439, $11,999, $1,644,480 and $–, respectively. |
c | $0.001 par value, number of shares authorized: 500 million, 500 million, 340.2 million and 200 million, respectively. |
See notes to financial statements.
FINANCIAL STATEMENTS | 33 |
Table of Contents
Statements of Assets and Liabilities (Unaudited) (Continued)
iSHARES®, INC.
February 28, 2009
iShares MSCI | ||||||||||||||||
Israel Capped Investable Market Index Fund | Mexico Investable Market Index Fund | South Africa Index Fund | Turkey Investable Market Index Fund | |||||||||||||
ASSETS | ||||||||||||||||
Investments, at cost: | ||||||||||||||||
Unaffiliated issuers | $ | 154,513,965 | $ | 776,615,742 | $ | 475,625,236 | $ | 143,245,336 | ||||||||
Affiliated issuers (Note 2) | 6,940,298 | 14,759,517 | 1,586,782 | 19,942,531 | ||||||||||||
Total cost of investments | $ | 161,454,263 | $ | 791,375,259 | $ | 477,212,018 | $ | 163,187,867 | ||||||||
Investments in securities, at fair value | ||||||||||||||||
Unaffiliated issuers | $ | 82,792,529 | $ | 329,608,540 | $ | 233,819,219 | $ | 64,511,015 | ||||||||
Affiliated issuers (Note 2) | 6,940,298 | 14,759,517 | 1,586,782 | 19,942,531 | ||||||||||||
Total fair value of investments | 89,732,827 | 344,368,057 | 235,406,001 | 84,453,546 | ||||||||||||
Foreign currencies, at valueb | 87,812 | 38,374 | 269,952 | 25,387 | ||||||||||||
Receivables: | ||||||||||||||||
Investment securities sold | 2,061,333 | 6,043,716 | 604,361 | – | ||||||||||||
Dividends and interest | 101,799 | 11,503 | 672 | 50,581 | ||||||||||||
Total Assets | 91,983,771 | 350,461,650 | 236,280,986 | 84,529,514 | ||||||||||||
LIABILITIES | ||||||||||||||||
Payables: | ||||||||||||||||
Investment securities purchased | 2,021,379 | 5,730,871 | 607,233 | – | ||||||||||||
Collateral for securities on loan (Note 5) | 6,929,497 | 14,568,698 | 1,578,049 | 19,940,852 | ||||||||||||
Capital shares sold | – | 4,323 | – | – | ||||||||||||
Investment advisory fees (Note 2) | 45,734 | 157,981 | 133,427 | 36,961 | ||||||||||||
Total Liabilities | 8,996,610 | 20,461,873 | 2,318,709 | 19,977,813 | ||||||||||||
NET ASSETS | $ | 82,987,161 | $ | 329,999,777 | $ | 233,962,277 | $ | 64,551,701 | ||||||||
Net assets consist of: | ||||||||||||||||
Paid-in capital | $ | 174,332,583 | $ | 1,068,197,780 | $ | 536,169,821 | $ | 156,311,831 | ||||||||
Undistributed net investment income | 7,178 | 45,280 | 386,731 | 34,906 | ||||||||||||
Accumulated net realized loss | (19,627,935 | ) | (291,216,790 | ) | (60,788,185 | ) | (13,060,506 | ) | ||||||||
Net unrealized depreciation on investments and translation of assets and liabilities in foreign currencies | (71,724,665 | ) | (447,026,493 | ) | (241,806,090 | ) | (78,734,530 | ) | ||||||||
NET ASSETS | $ | 82,987,161 | $ | 329,999,777 | $ | 233,962,277 | $ | 64,551,701 | ||||||||
Shares outstandingc | 2,650,000 | 13,800,000 | 7,500,000 | 2,950,000 | ||||||||||||
Net asset value per share | $ | 31.32 | $ | 23.91 | $ | 31.19 | $ | 21.88 | ||||||||
a | Securities on loan with market values of $6,438,637, $13,564,118, $1,471,797 and $18,730,135, respectively. See Note 5. |
b | Cost of foreign currencies: $94,195, $41,189, $270,024 and $25,596, respectively. |
c | $0.001 par value, number of shares authorized: 500 million, 255 million, 400 million and 200 million, respectively. |
See notes to financial statements.
34 | 2009 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Statements of Operations (Unaudited)
iSHARES®, INC.
Six months ended February 28, 2009
iShares MSCI | ||||||||||||||||
Brazil Index Fund | BRIC Index Fund | Canada Index Fund | Chile Investable Market | |||||||||||||
NET INVESTMENT INCOME | ||||||||||||||||
Dividends from unaffiliated issuersa | $ | 84,484,487 | $ | 1,185,155 | $ | 16,812,676 | $ | 981,342 | ||||||||
Interest from affiliated issuers (Note 2) | 22,244 | 371 | 1,126 | 561 | ||||||||||||
Securities lending income from affiliated issuers (Note 2) | 78,278 | 65,439 | – | – | ||||||||||||
Total investment income | 84,585,009 | 1,250,965 | 16,813,802 | 981,903 | ||||||||||||
EXPENSES | ||||||||||||||||
Investment advisory fees (Note 2) | 13,735,764 | 406,733 | 3,379,520 | 411,494 | ||||||||||||
Total expenses | 13,735,764 | 406,733 | 3,379,520 | 411,494 | ||||||||||||
Net investment income | 70,849,245 | 844,232 | 13,434,282 | 570,409 | ||||||||||||
NET REALIZED AND UNREALIZED GAIN (LOSS) | ||||||||||||||||
Net realized gain (loss) from: | ||||||||||||||||
Investments in unaffiliated issuers | (400,078,173 | ) | (9,770,227 | ) | (90,996,729 | ) | (15,563,009 | ) | ||||||||
In-kind redemptions | – | 28,138 | 7,045,929 | – | ||||||||||||
Foreign currency transactions | (5,442,385 | ) | (30,990 | ) | (794,522 | ) | 57,600 | |||||||||
Net realized loss | (405,520,558 | ) | (9,773,079 | ) | (84,745,322 | ) | (15,505,409 | ) | ||||||||
Net change in unrealized appreciation (depreciation) on: | ||||||||||||||||
Investments | (3,390,853,652 | ) | (76,276,493 | ) | (899,271,841 | ) | (28,675,666 | ) | ||||||||
Translation of assets and liabilities in foreign currencies | (1,692,365 | ) | (9,136 | ) | 54,200 | 4,943 | ||||||||||
Net change in unrealized appreciation (depreciation) | (3,392,546,017 | ) | (76,285,629 | ) | (899,217,641 | ) | (28,670,723 | ) | ||||||||
Net realized and unrealized loss | (3,798,066,575 | ) | (86,058,708 | ) | (983,962,963 | ) | (44,176,132 | ) | ||||||||
NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS | $ | (3,727,217,330 | ) | $ | (85,214,476 | ) | $ | (970,528,681 | ) | $ | (43,605,723 | ) | ||||
a | Net of foreign withholding tax of $8,535,908, $95,660, $2,970,059 and $429,932, respectively. |
See notes to financial statements.
FINANCIAL STATEMENTS | 35 |
Table of Contents
Statements of Operations (Unaudited) (Continued)
iSHARES®, INC.
Six months ended February 28, 2009
iShares MSCI | ||||||||||||||||
Israel Capped Investable Market Index Fund | Mexico Investable Market Index Fund | South Africa Index Fund | Turkey Investable Market Index Fund | |||||||||||||
NET INVESTMENT INCOME | ||||||||||||||||
Dividends from unaffiliated issuersa | $ | 2,235,309 | $ | 1,973,549 | $ | 6,703,902 | $ | 84,516 | ||||||||
Interest from affiliated issuers (Note 2) | 401 | 713 | 332 | 238 | ||||||||||||
Securities lending income from affiliated issuers (Note 2) | 68,464 | 205,084 | 5,710 | 363,293 | ||||||||||||
Total investment income | 2,304,174 | 2,179,346 | 6,709,944 | 448,047 | ||||||||||||
EXPENSES | ||||||||||||||||
Investment advisory fees (Note 2) | 395,962 | 1,507,294 | 957,106 | 289,512 | ||||||||||||
Total expenses | 395,962 | 1,507,294 | 957,106 | 289,512 | ||||||||||||
Net investment income | 1,908,212 | 672,052 | 5,752,838 | 158,535 | ||||||||||||
NET REALIZED AND UNREALIZED GAIN (LOSS) | ||||||||||||||||
Net realized gain (loss) from: | ||||||||||||||||
Investments in unaffiliated issuers | (6,825,473 | ) | (95,250,386 | ) | (22,473,895 | ) | (3,812,627 | ) | ||||||||
In-kind redemptions | (11,790,848 | ) | (186,114,622 | ) | (10,983,453 | ) | (8,435,762 | ) | ||||||||
Foreign currency transactions | 6,978 | (328,156 | ) | (206,102 | ) | (42,595 | ) | |||||||||
Net realized loss | (18,609,343 | ) | (281,693,164 | ) | (33,663,450 | ) | (12,290,984 | ) | ||||||||
Net change in unrealized appreciation (depreciation) on: | ||||||||||||||||
Investments | (47,321,737 | ) | (226,748,466 | ) | (159,744,066 | ) | (79,989,811 | ) | ||||||||
Translation of assets and liabilities in foreign currencies | (5,617 | ) | 10,387 | (8,901 | ) | (3,437 | ) | |||||||||
Net change in unrealized appreciation (depreciation) | (47,327,354 | ) | (226,738,079 | ) | (159,752,967 | ) | (79,993,248 | ) | ||||||||
Net realized and unrealized loss | (65,936,697 | ) | (508,431,243 | ) | (193,416,417 | ) | (92,284,232 | ) | ||||||||
NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS | $ | (64,028,485 | ) | $ | (507,759,191 | ) | $ | (187,663,579 | ) | $ | (92,125,697 | ) | ||||
a | Net of foreign withholding tax of $464,171, $–, $– and $–, respectively. |
See notes to financial statements.
36 | 2009 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Statements of Changes in Net Assets
iSHARES®, INC.
iShares MSCI Brazil Index Fund | iShares MSCI BRIC Index Fund | |||||||||||||||
Six months ended February 28, 2009 (Unaudited) | Year ended August 31, 2008 | Six months ended February 28, 2009 (Unaudited) | Period from August 31, 2008 | |||||||||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||||||||||
OPERATIONS: | ||||||||||||||||
Net investment income | $ | 70,849,245 | $ | 177,141,014 | $ | 844,232 | $ | 1,398,623 | ||||||||
Net realized gain (loss) | (405,520,558 | ) | 6,541,539 | (9,773,079 | ) | (1,479,711 | ) | |||||||||
Net change in unrealized appreciation (depreciation) | (3,392,546,017 | ) | 603,064,052 | (76,285,629 | ) | (38,561,175 | ) | |||||||||
Net increase (decrease) in net assets resulting from operations | (3,727,217,330 | ) | 786,746,605 | (85,214,476 | ) | (38,642,263 | ) | |||||||||
DISTRIBUTIONS TO SHAREHOLDERS: |
| |||||||||||||||
From net investment income | (154,721,163 | ) | (134,522,596 | ) | (1,712,337 | ) | (531,173 | ) | ||||||||
From net realized gain | – | (39,856,665 | ) | – | – | |||||||||||
Total distributions to shareholders | (154,721,163 | ) | (174,379,261 | ) | (1,712,337 | ) | (531,173 | ) | ||||||||
CAPITAL SHARE TRANSACTIONS: |
| |||||||||||||||
Proceeds from shares sold | 541,937,500 | 2,833,440,415 | 25,444,603 | 205,181,301 | ||||||||||||
Cost of shares redeemed | – | (637,881,395 | ) | (2,215,782 | ) | (4,916,318 | ) | |||||||||
Net increase in net assets from capital | 541,937,500 | 2,195,559,020 | 23,228,821 | 200,264,983 | ||||||||||||
INCREASE (DECREASE) IN NET ASSETS | (3,340,000,993 | ) | 2,807,926,364 | (63,697,992 | ) | 161,091,547 | ||||||||||
NET ASSETS | ||||||||||||||||
Beginning of period | 7,242,260,002 | 4,434,333,638 | 161,091,547 | – | ||||||||||||
End of period | $ | 3,902,259,009 | $ | 7,242,260,002 | $ | 97,393,555 | $ | 161,091,547 | ||||||||
Undistributed net investment income included in net assets at end of period | $ | 12,362,883 | $ | 96,234,801 | $ | 4,963 | $ | 873,068 | ||||||||
SHARES ISSUED AND REDEEMED | ||||||||||||||||
Shares sold | 14,950,000 | 35,200,000 | 900,000 | 3,750,000 | ||||||||||||
Shares redeemed | – | (8,350,000 | ) | (100,000 | ) | (100,000 | ) | |||||||||
Net increase in shares outstanding | 14,950,000 | 26,850,000 | 800,000 | 3,650,000 | ||||||||||||
a | Commencement of operations. |
See notes to financial statements.
FINANCIAL STATEMENTS | 37 |
Table of Contents
Statements of Changes in Net Assets (Continued)
iSHARES®, INC.
iShares MSCI Canada Index Fund | iShares MSCI Chile Investable Market Index Fund | |||||||||||||||
Six months ended February 28, 2009 (Unaudited) | Year ended August 31, 2008 | Six months ended February 28, 2009 (Unaudited) | Period from August 31, 2008 | |||||||||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||||||||||
OPERATIONS: | ||||||||||||||||
Net investment income | $ | 13,434,282 | $ | 28,262,646 | $ | 570,409 | $ | 1,031,995 | ||||||||
Net realized gain (loss) | (84,745,322 | ) | 226,766,651 | (15,505,409 | ) | (1,749,702 | ) | |||||||||
Net change in unrealized appreciation (depreciation) | (899,217,641 | ) | (314,958,113 | ) | (28,670,723 | ) | (7,532,218 | ) | ||||||||
Net decrease in net assets resulting from operations | (970,528,681 | ) | (59,928,816 | ) | (43,605,723 | ) | (8,249,925 | ) | ||||||||
DISTRIBUTIONS TO SHAREHOLDERS: | ||||||||||||||||
From net investment income | (20,931,757 | ) | (30,808,204 | ) | (423,374 | ) | (923,618 | ) | ||||||||
Total distributions to shareholders | (20,931,757 | ) | (30,808,204 | ) | (423,374 | ) | (923,618 | ) | ||||||||
CAPITAL SHARE TRANSACTIONS: | ||||||||||||||||
Proceeds from shares sold | 54,250,201 | 1,696,598,321 | 135,022,278 | 85,331,722 | ||||||||||||
Cost of shares redeemed | (232,906,309 | ) | (857,922,549 | ) | (17,424,328 | ) | – | |||||||||
Net increase (decrease) in net assets from capital share transactions | (178,656,108 | ) | 838,675,772 | 117,597,950 | 85,331,722 | |||||||||||
INCREASE (DECREASE) IN NET ASSETS | (1,170,116,546 | ) | 747,938,752 | 73,568,853 | 76,158,179 | |||||||||||
NET ASSETS | ||||||||||||||||
Beginning of period | 2,071,060,895 | 1,323,122,143 | 76,158,179 | – | ||||||||||||
End of period | $ | 900,944,349 | $ | 2,071,060,895 | $ | 149,727,032 | $ | 76,158,179 | ||||||||
Undistributed net investment income included in net assets at end of period | $ | 2,484,925 | $ | 9,982,399 | $ | 241,255 | $ | 94,220 | ||||||||
SHARES ISSUED AND REDEEMED | ||||||||||||||||
Shares sold | 2,500,000 | 51,400,000 | 3,400,000 | 1,700,000 | ||||||||||||
Shares redeemed | (10,800,000 | ) | (27,900,000 | ) | (550,000 | ) | – | |||||||||
Net increase (decrease) in shares outstanding | (8,300,000 | ) | 23,500,000 | 2,850,000 | 1,700,000 | |||||||||||
a | Commencement of operations. |
See notes to financial statements.
38 | 2009 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Statements of Changes in Net Assets (Continued)
iSHARES®, INC.
iShares MSCI Israel Capped Investable Market Index Fund | iShares MSCI Mexico Investable Market Index Fund | |||||||||||||||
Six months ended February 28, 2009 (Unaudited) | Period from August 31, 2008 | Six months ended February 28, 2009 (Unaudited) | Year ended August 31, 2008 | |||||||||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||||||||||
OPERATIONS: | ||||||||||||||||
Net investment income | $ | 1,908,212 | $ | 391,358 | $ | 672,052 | $ | 33,095,718 | ||||||||
Net realized gain (loss) | (18,609,343 | ) | (725,469 | ) | (281,693,164 | ) | 92,956,713 | |||||||||
Net change in unrealized appreciation (depreciation) | (47,327,354 | ) | (24,397,311 | ) | (226,738,079 | ) | (246,927,980 | ) | ||||||||
Net decrease in net assets resulting from operations | (64,028,485 | ) | (24,731,422 | ) | (507,759,191 | ) | (120,875,549 | ) | ||||||||
DISTRIBUTIONS TO SHAREHOLDERS: | ||||||||||||||||
From net investment income | (2,288,027 | ) | – | (6,978,145 | ) | (35,045,653 | ) | |||||||||
Total distributions to shareholders | (2,288,027 | ) | – | (6,978,145 | ) | (35,045,653 | ) | |||||||||
CAPITAL SHARE TRANSACTIONS: | ||||||||||||||||
Proceeds from shares sold | 1,502,612 | 246,546,176 | 328,351,715 | 1,921,692,035 | ||||||||||||
Cost of shares redeemed | (56,399,971 | ) | (17,613,722 | ) | (439,298,938 | ) | (2,192,896,147 | ) | ||||||||
Net increase (decrease) in net assets from capital share transactions | (54,897,359 | ) | 228,932,454 | (110,947,223 | ) | (271,204,112 | ) | |||||||||
INCREASE (DECREASE) IN NET ASSETS | (121,213,871 | ) | 204,201,032 | (625,684,559 | ) | (427,125,314 | ) | |||||||||
NET ASSETS | ||||||||||||||||
Beginning of period | 204,201,032 | – | 955,684,336 | 1,382,809,650 | ||||||||||||
End of period | $ | 82,987,161 | $ | 204,201,032 | $ | 329,999,777 | $ | 955,684,336 | ||||||||
Undistributed net investment income included in net assets at end of period | $ | 7,178 | $ | 386,993 | $ | 45,280 | $ | 6,351,373 | ||||||||
SHARES ISSUED AND REDEEMED | ||||||||||||||||
Shares sold | 50,000 | 4,550,000 | 9,800,000 | 33,000,000 | ||||||||||||
Shares redeemed | (1,600,000 | ) | (350,000 | ) | (14,400,000 | ) | (38,300,000 | ) | ||||||||
Net increase (decrease) in shares outstanding | (1,550,000 | ) | 4,200,000 | (4,600,000 | ) | (5,300,000 | ) | |||||||||
a | Commencement of operations. |
See notes to financial statements.
FINANCIAL STATEMENTS | 39 |
Table of Contents
Statements of Changes in Net Assets (Continued)
iSHARES®, INC.
iShares MSCI South Africa Index Fund | iShares MSCI Turkey Investable Market Index Fund | |||||||||||||||
Six months ended February 28, 2009 (Unaudited) | Year ended August 31, 2008 | Six months ended February 28, 2009 (Unaudited) | Period from August 31, 2008 | |||||||||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||||||||||
OPERATIONS: | ||||||||||||||||
Net investment income | $ | 5,752,838 | $ | 21,715,225 | $ | 158,535 | $ | 889,219 | ||||||||
Net realized gain (loss) | (33,663,450 | ) | 18,841,989 | (12,290,984 | ) | (461,842 | ) | |||||||||
Net change in unrealized appreciation (depreciation) | (159,752,967 | ) | (115,088,724 | ) | (79,993,248 | ) | 1,258,718 | |||||||||
Net increase (decrease) in net assets resulting from operations | (187,663,579 | ) | (74,531,510 | ) | (92,125,697 | ) | 1,686,095 | |||||||||
DISTRIBUTIONS TO SHAREHOLDERS: | ||||||||||||||||
From net investment income | (7,918,740 | ) | (25,634,161 | ) | (1,035,378 | ) | – | |||||||||
Total distributions to shareholders | (7,918,740 | ) | (25,634,161 | ) | (1,035,378 | ) | – | |||||||||
CAPITAL SHARE TRANSACTIONS: | ||||||||||||||||
Proceeds from shares sold | 141,224,744 | 405,639,896 | 24,799,678 | 152,861,063 | ||||||||||||
Cost of shares redeemed | (141,334,724 | ) | (342,759,905 | ) | (19,108,182 | ) | (2,525,878 | ) | ||||||||
Net increase (decrease) in net assets from capital share transactions | (109,980 | ) | 62,879,991 | 5,691,496 | 150,335,185 | |||||||||||
INCREASE (DECREASE) IN NET ASSETS | (195,692,299 | ) | (37,285,680 | ) | (87,469,579 | ) | 152,021,280 | |||||||||
NET ASSETS | ||||||||||||||||
Beginning of period | 429,654,576 | 466,940,256 | 152,021,280 | – | ||||||||||||
End of period | $ | 233,962,277 | $ | 429,654,576 | $ | 64,551,701 | $ | 152,021,280 | ||||||||
Undistributed net investment income included in net assets at end of period | $ | 386,731 | $ | 2,552,633 | $ | 34,906 | $ | 911,749 | ||||||||
SHARES ISSUED AND REDEEMED | ||||||||||||||||
Shares sold | 3,400,000 | 5,800,000 | 750,000 | 2,950,000 | ||||||||||||
Shares redeemed | (3,600,000 | ) | (5,600,000 | ) | (700,000 | ) | (50,000 | ) | ||||||||
Net increase (decrease) in shares outstanding | (200,000 | ) | 200,000 | 50,000 | 2,900,000 | |||||||||||
a | Commencement of operations. |
See notes to financial statements.
40 | 2009 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
iSHARES®, INC.
(For a share outstanding throughout each period)
iShares MSCI Brazil Index Fund | ||||||||||||||||||||||||
Six months Feb. 28, 2009 | Year ended Aug. 31, 2008 | Year ended Aug. 31, 2007 | Year ended Aug. 31, 2006 | Year ended Aug. 31, 2005 | Year ended Aug. 31, 2004 | |||||||||||||||||||
Net asset value, beginning of period | $ | 73.27 | $ | 61.59 | $ | 39.09 | $ | 28.18 | $ | 16.96 | $ | 12.19 | ||||||||||||
Income from investment operations: | ||||||||||||||||||||||||
Net investment incomea | 0.69 | 1.93 | 1.09 | 1.00 | 0.89 | 0.55 | ||||||||||||||||||
Net realized and unrealized | (38.14 | ) | 11.59 | 22.35 | 10.49 | 10.79 | 4.49 | |||||||||||||||||
Total from investment operations | (37.45 | ) | 13.52 | 23.44 | 11.49 | 11.68 | 5.04 | |||||||||||||||||
Less distributions from: | ||||||||||||||||||||||||
Net investment income | (1.53 | ) | (1.41 | ) | (0.94 | ) | (0.58 | ) | (0.46 | ) | (0.27 | ) | ||||||||||||
Net realized gain | – | (0.43 | ) | – | – | – | – | |||||||||||||||||
Total distributions | (1.53 | ) | (1.84 | ) | (0.94 | ) | (0.58 | ) | (0.46 | ) | (0.27 | ) | ||||||||||||
Net asset value, end of period | $ | 34.29 | $ | 73.27 | $ | 61.59 | $ | 39.09 | $ | 28.18 | $ | 16.96 | ||||||||||||
Total return | (51.00 | )%c | 21.58 | % | 60.82 | % | 41.13 | % | 69.72 | % | 41.42 | % | ||||||||||||
Ratios/Supplemental data: | ||||||||||||||||||||||||
Net assets, end of period (000s) | $ | 3,902,259 | $ | 7,242,260 | $ | 4,434,334 | $ | 2,468,295 | $ | 552,285 | $ | 209,504 | ||||||||||||
Ratio of expenses to average net assetsd | 0.67 | % | 0.63 | % | 0.69 | % | 0.70 | % | 0.74 | % | 0.96 | % | ||||||||||||
Ratio of expenses to average net assets exclusive of foreign taxesd | n/a | 0.63 | % | 0.68 | % | n/a | n/a | n/a | ||||||||||||||||
Ratio of net investment income to average net assetsd | 3.47 | % | 2.37 | % | 2.17 | % | 2.65 | % | 3.94 | % | 3.59 | % | ||||||||||||
Portfolio turnover ratee | 7 | % | 30 | % | 22 | % | 15 | % | 48 | % | 106 | % |
a | Based on average shares outstanding throughout each period. |
b | The amounts reported may not accord with the change in aggregate gains and losses in securities due to the timing of capital share transactions. |
c | Not annualized. |
d | Annualized for periods of less than one year. |
e | Portfolio turnover rates include portfolio transactions that are executed as a result of the Fund processing capital share transactions in Creation Units solely for cash in U.S. dollars. Excluding such transactions, the portfolio turnover rate for the six months ended February 28, 2009 and the years ended August 31, 2008, August 31, 2007, August 31, 2006 and August 31, 2005 would have been 4%, 19%, 6%, 13% and 9%, respectively. See Note 4. |
See notes to financial statements.
FINANCIAL HIGHLIGHTS | 41 |
Table of Contents
Financial Highlights (Continued)
iSHARES®, INC.
(For a share outstanding throughout each period)
iShares MSCI BRIC Index Fund | ||||||||
Six months ended Feb. 28, 2009 | Period from Aug. 31, 2008 | |||||||
Net asset value, beginning of period | $ | 44.13 | $ | 56.50 | ||||
Income from investment operations: | ||||||||
Net investment incomeb | 0.20 | 0.72 | ||||||
Net realized and unrealized lossc | (22.06 | ) | (12.93 | ) | ||||
Total from investment operations | (21.86 | ) | (12.21 | ) | ||||
Less distributions from: | ||||||||
Net investment income | (0.38 | ) | (0.16 | ) | ||||
Total distributions | (0.38 | ) | (0.16 | ) | ||||
Net asset value, end of period | $ | 21.89 | $ | 44.13 | ||||
Total return | (49.62 | )%d | (21.65 | )%d | ||||
Ratios/Supplemental data: | ||||||||
Net assets, end of period (000s) | $ | 97,394 | $ | 161,092 | ||||
Ratio of expenses to average net assetse | 0.74 | % | 0.72 | % | ||||
Ratio of expenses to average net assets exclusive of foreign taxese | n/a | 0.72 | % | |||||
Ratio of net investment income to average net assetse | 1.53 | % | 1.74 | % | ||||
Portfolio turnover ratef | 4 | % | 9 | % |
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 in Creation Units but include 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 cash transactions, the portfolio turnover rate for the six months ended February 28, 2009 and the period ended August 31, 2008 would have been 3% and 2%, respectively. See Note 4. |
See notes to financial statements.
42 | 2009 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. 28, 2009 | Year ended Aug. 31, 2008 | Year ended Aug. 31, 2007 | Year ended Aug. 31, 2006 | Year ended Aug. 31, 2005 | Year ended Aug. 31, 2004 | |||||||||||||||||||
Net asset value, beginning of period | $ | 30.55 | $ | 29.87 | $ | 24.69 | $ | 20.30 | $ | 14.33 | $ | 12.25 | ||||||||||||
Income from investment operations: | ||||||||||||||||||||||||
Net investment incomea | 0.21 | 0.47 | 0.35 | 0.25 | 0.17 | 0.11 | ||||||||||||||||||
Net realized and unrealized | (15.29 | ) | 0.72 | 5.11 | 4.29 | 6.00 | 2.17 | |||||||||||||||||
Total from investment operations | (15.08 | ) | 1.19 | 5.46 | 4.54 | 6.17 | 2.28 | |||||||||||||||||
Less distributions from: | ||||||||||||||||||||||||
Net investment income | (0.33 | ) | (0.51 | ) | (0.28 | ) | (0.15 | ) | (0.20 | ) | (0.20 | ) | ||||||||||||
Total distributions | (0.33 | ) | (0.51 | ) | (0.28 | ) | (0.15 | ) | (0.20 | ) | (0.20 | ) | ||||||||||||
Net asset value, end of period | $ | 15.14 | $ | 30.55 | $ | 29.87 | $ | 24.69 | $ | 20.30 | $ | 14.33 | ||||||||||||
Total return | (49.44 | )%c | 3.88 | % | 22.33 | % | 22.46 | % | 43.35 | % | 18.70 | % | ||||||||||||
Ratios/Supplemental data: | ||||||||||||||||||||||||
Net assets, end of period (000s) | $ | 900,944 | $ | 2,071,061 | $ | 1,323,122 | $ | 1,101,161 | $ | 420,301 | $ | 325,298 | ||||||||||||
Ratio of expenses to average net assetsd | 0.55 | % | 0.52 | % | 0.52 | % | 0.54 | % | 0.57 | % | 0.70 | %e | ||||||||||||
Ratio of expenses to average net assets exclusive of foreign taxesd | n/a | n/a | 0.52 | % | n/a | n/a | n/a | |||||||||||||||||
Ratio of net investment income to average net assetsd | 2.20 | % | 1.46 | % | 1.32 | % | 1.09 | % | 1.00 | % | 0.81 | % | ||||||||||||
Portfolio turnover ratef | 3 | % | 11 | % | 8 | % | 20 | % | 9 | % | 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 | 43 |
Table of Contents
Financial Highlights (Continued)
iSHARES®, INC.
(For a share outstanding throughout each period)
iShares MSCI Chile Investable Market Index Fund | ||||||||
Six months ended Feb. 28, 2009 (Unaudited) | Period from Nov. 12, 2007a to Aug. 31, 2008 | |||||||
Net asset value, beginning of period | $ | 44.80 | $ | 48.84 | ||||
Income from investment operations: | ||||||||
Net investment incomeb | 0.15 | 0.92 | ||||||
Net realized and unrealized lossc | (11.93 | ) | (4.38 | ) | ||||
Total from investment operations | (11.78 | ) | (3.46 | ) | ||||
Less distributions from: | ||||||||
Net investment income | (0.11 | ) | (0.58 | ) | ||||
Total distributions | (0.11 | ) | (0.58 | ) | ||||
Net asset value, end of period | $ | 32.91 | $ | 44.80 | ||||
Total return | (26.26 | )%d | (7.15 | )%d | ||||
Ratios/Supplemental data: | ||||||||
Net assets, end of period (000s) | $ | 149,727 | $ | 76,158 | ||||
Ratio of expenses to average net assetse | 0.68 | % | 0.63 | % | ||||
Ratio of net investment income to average net assetse | 0.94 | % | 2.38 | % | ||||
Portfolio turnover ratef | 26 | % | 16 | % |
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 include portfolio transactions that are executed as a result of the Fund processing capital share transactions in Creation Units solely for cash in U.S. dollars. Excluding such transactions, the portfolio turnover rate for the six months ended February 28, 2009 and the period ended August 31, 2008 would have been 9% and 16%, respectively. See Note 4. |
See notes to financial statements.
44 | 2009 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Financial Highlights (Continued)
iSHARES®, INC.
(For a share outstanding throughout each period)
iShares MSCI Israel Capped Investable Market Index Fund | ||||||||
Six months ended Feb. 28, 2009 (Unaudited) | Period from Mar. 26, 2008a to Aug. 31, 2008 | |||||||
Net asset value, beginning of period | $ | 48.62 | $ | 50.33 | ||||
Income from investment operations: | ||||||||
Net investment incomeb | 0.57 | 0.21 | ||||||
Net realized and unrealized lossc | (17.14 | ) | (1.92 | ) | ||||
Total from investment operations | (16.57 | ) | (1.71 | ) | ||||
Less distributions from: | ||||||||
Net investment income | (0.73 | ) | – | |||||
Total distributions | (0.73 | ) | – | |||||
Net asset value, end of period | $ | 31.32 | $ | 48.62 | ||||
Total return | (34.02 | )%d | (3.40 | )%d | ||||
Ratios/Supplemental data: | ||||||||
Net assets, end of period (000s) | $ | 82,987 | $ | 204,201 | ||||
Ratio of expenses to average net assetse | 0.67 | % | 0.63 | % | ||||
Ratio of net investment income to average net assetse | 3.24 | % | 0.93 | % | ||||
Portfolio turnover ratef | 15 | % | 8 | % |
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 | 45 |
Table of Contents
Financial Highlights (Continued)
iSHARES®, INC.
(For a share outstanding throughout each period)
iShares MSCI Mexico Investable Market Index Fund | ||||||||||||||||||||||||
Six months Feb. 28, 2009 | Year ended Aug. 31, 2008 | Year ended Aug. 31, 2007 | Year ended Aug. 31, 2006 | Year ended Aug. 31, 2005 | Year ended Aug. 31, 2004 | |||||||||||||||||||
Net asset value, beginning of period | $ | 51.94 | $ | 58.35 | $ | 41.30 | $ | 29.04 | $ | 19.35 | $ | 15.04 | ||||||||||||
Income from investment operations: | ||||||||||||||||||||||||
Net investment incomea | 0.04 | 1.40 | 0.64 | 0.76 | 0.42 | 0.26 | ||||||||||||||||||
Net realized and unrealized | (27.65 | ) | (6.21 | ) | 16.87 | 11.98 | 9.55 | 4.26 | ||||||||||||||||
Total from investment operations | (27.61 | ) | (4.81 | ) | 17.51 | 12.74 | 9.97 | 4.52 | ||||||||||||||||
Less distributions from: | ||||||||||||||||||||||||
Net investment income | (0.42 | ) | (1.60 | ) | (0.46 | ) | (0.48 | ) | (0.28 | ) | (0.21 | ) | ||||||||||||
Total distributions | (0.42 | ) | (1.60 | ) | (0.46 | ) | (0.48 | ) | (0.28 | ) | (0.21 | ) | ||||||||||||
Net asset value, end of period | $ | 23.91 | $ | 51.94 | $ | 58.35 | $ | 41.30 | $ | 29.04 | $ | 19.35 | ||||||||||||
Total return | (53.38 | )%c | (8.44 | )% | 42.58 | % | 44.11 | % | 51.77 | % | 30.28 | % | ||||||||||||
Ratios/Supplemental data: | ||||||||||||||||||||||||
Net assets, end of period (000s) | $ | 330,000 | $ | 955,684 | $ | 1,382,810 | $ | 764,107 | $ | 255,557 | $ | 129,623 | ||||||||||||
Ratio of expenses to average net assetsd | 0.55 | % | 0.52 | % | 0.51 | % | 0.54 | % | 0.57 | % | 0.78 | % | ||||||||||||
Ratio of net investment income to average net assetsd | 0.25 | % | 2.42 | % | 1.19 | % | 2.06 | % | 1.70 | % | 1.40 | % | ||||||||||||
Portfolio turnover ratee | 9 | % | 13 | % | 14 | % | 12 | % | 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.
46 | 2009 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. 28, 2009 | Year ended Aug. 31, 2008a | Year ended Aug. 31, 2007a | Year ended Aug. 31, 2006a | Year ended Aug. 31, 2005a | Year ended Aug. 31, 2004a | |||||||||||||||||||
Net asset value, beginning of period | $ | 55.80 | $ | 62.26 | $ | 48.84 | $ | 41.50 | $ | 29.96 | $ | 23.41 | ||||||||||||
Income from investment operations: | ||||||||||||||||||||||||
Net investment incomeb | 0.74 | 2.28 | 1.50 | 1.44 | 0.96 | 0.62 | ||||||||||||||||||
Net realized and unrealized | (24.43 | ) | (6.02 | ) | 13.18 | 6.89 | 11.18 | 6.61 | ||||||||||||||||
Total from investment operations | (23.69 | ) | (3.74 | ) | 14.68 | 8.33 | 12.14 | 7.23 | ||||||||||||||||
Less distributions from: | ||||||||||||||||||||||||
Net investment income | (0.92 | ) | (2.72 | ) | (1.26 | ) | (0.99 | ) | (0.60 | ) | (0.68 | ) | ||||||||||||
Total distributions | (0.92 | ) | (2.72 | ) | (1.26 | ) | (0.99 | ) | (0.60 | ) | (0.68 | ) | ||||||||||||
Net asset value, end of period | $ | 31.19 | $ | 55.80 | $ | 62.26 | $ | 48.84 | $ | 41.50 | $ | 29.96 | ||||||||||||
Total return | (42.65 | )%d | (6.18 | )% | 30.34 | % | 20.06 | % | 40.62 | % | 31.30 | % | ||||||||||||
Ratios/Supplemental data: | ||||||||||||||||||||||||
Net assets, end of period (000s) | $ | 233,962 | $ | 429,655 | $ | 466,940 | $ | 297,898 | $ | 153,530 | $ | 92,882 | ||||||||||||
Ratio of expenses to average net assetse | 0.67 | % | 0.63 | % | 0.68 | % | 0.70 | % | 0.74 | % | 0.95 | % | ||||||||||||
Ratio of net investment income to | 4.06 | % | 3.61 | % | 2.58 | % | 2.79 | % | 2.62 | % | 2.23 | % | ||||||||||||
Portfolio turnover ratef | 8 | % | 21 | % | 8 | % | 7 | % | 32 | % | 13 | % |
a | Per share amounts were adjusted to reflect a two-for-one stock split effective July 24, 2008. |
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 | 47 |
Table of Contents
Financial Highlights (Continued)
iSHARES®, INC.
(For a share outstanding throughout each period)
iShares MSCI Turkey Investable Market Index Fund | ||||||||
Six months ended Feb. 28, 2009 (Unaudited) | Period from Mar. 26, 2008a to Aug. 31, 2008 | |||||||
Net asset value, beginning of period | $ | 52.42 | $ | 50.30 | ||||
Income from investment operations: | ||||||||
Net investment incomeb | 0.05 | 0.83 | ||||||
Net realized and unrealized gain (loss)c | (30.21 | ) | 1.29 | |||||
Total from investment operations | (30.16 | ) | 2.12 | |||||
Less distributions from: | ||||||||
Net investment income | (0.38 | ) | – | |||||
Total distributions | (0.38 | ) | – | |||||
Net asset value, end of period | $ | 21.88 | $ | 52.42 | ||||
Total return | (57.66 | )%d | 4.22 | %d | ||||
Ratios/Supplemental data: | ||||||||
Net assets, end of period (000s) | $ | 64,552 | $ | 152,021 | ||||
Ratio of expenses to average net assetse | 0.67 | % | 0.63 | % | ||||
Ratio of net investment income to average net assetse | 0.37 | % | 3.78 | % | ||||
Portfolio turnover ratef | 5 | % | 27 | % |
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.
48 | 2009 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 Brazil, iShares MSCI BRIC, iShares MSCI Canada, iShares MSCI Chile Investable Market, iShares MSCI Israel Capped Investable Market, iShares MSCI Mexico Investable Market, iShares MSCI South Africa and iShares MSCI Turkey Investable Market 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, 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”). 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 valued pursuant to the pricing policy and procedures approved by the Board of Directors of the Company (the “Board”). Effective September 1, 2008, the Funds adopted Financial Accounting Standards Board (“FASB”) Statement of Financial Accounting Standards No. 157 (“FAS 157”), “Fair Value Measurements.” This standard establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. Inputs may be based on independent market data (“observable inputs”) or they may be internally developed (“unobservable inputs”). The hierarchy gives the highest priority to
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iSHARES®, INC.
unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy under FAS 157 are as follows:
• | Level 1 – Inputs that reflect unadjusted quoted prices in active markets for identical assets or liabilities that the Fund has the ability to access at the measurement date (a “Level 1 Price”); |
• | Level 2 – Inputs other than quoted prices included within Level 1 that are observable for the asset or liability either directly or indirectly, including quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not considered to be active, inputs other than quoted prices that are observable for the asset or liability, and inputs that are derived principally from or corroborated by observable market data by correlation or other means (a “Level 2 Price”); |
• | Level 3 – Inputs that are unobservable for the asset or liability (a “Level 3 Price”). |
Inputs are used in applying the various valuation techniques and broadly refer to the assumptions that market participants use to make valuation decisions, including assumptions about risk. Inputs may include price information, volatility statistics, specific and broad credit data, liquidity statistics, and other factors. The level of a value determined for a financial instrument within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement in its entirety. However, the determination of what constitutes an “observable” input may require significant judgment by the Funds. The Funds consider observable inputs to be market data that is readily available, regularly distributed or updated, reliable and verifiable, and provided by independent sources that are actively involved in the relevant market. The categorization of a value determined for a financial instrument within the hierarchy is based upon the pricing transparency of the instrument and does not necessarily correspond to the Funds’ perceived risk of that instrument.
Investments whose values are based on quoted market prices in active markets, and whose values are therefore classified as Level 1 Prices, include active listed equities and certain U.S. government securities. The Funds do not adjust the quoted price for such instruments, even in situations where the Funds hold a large position and a sale could reasonably impact the quoted price.
Investments that trade in markets that are not considered to be active, but whose values are based on quoted market prices, dealer quotations or valuations provided by alternative pricing sources supported by observable inputs are classified as Level 2 Prices. These generally include certain U.S. government and sovereign obligations, most government agency securities, investment-grade corporate bonds, certain mortgage products, less liquid listed equities, and state, municipal and provincial obligations. As investments whose values are classified as Level 2 Prices include positions that are not traded in active markets and/or are subject to transfer restrictions, valuations may be adjusted to reflect illiquidity and/or non-transferability, which are generally based on available market information.
Investments whose values are classified as Level 3 Prices have significant unobservable inputs, as they may trade infrequently or not at all. Investments whose values are classified as Level 3 Prices may include unlisted securities related to corporate actions, securities whose trading have been suspended or which have been de-listed from their primary trading exchange, less liquid corporate debt securities (including distressed debt instruments), collateralized debt obligations, and less liquid mortgage securities (backed by either commercial or residential real estate). When observable prices are not available for these securities, the Funds use one or more valuation techniques (e.g., the market approach or the income approach) for which sufficient and reliable data is available. Within Level 3 of the fair value hierarchy, the use of the market approach generally consists of using comparable market transactions, while the use of the income approach generally consists of the net present value of estimated future cash flows, adjusted as appropriate for liquidity, credit, market and/or other risk factors.
The inputs used by the Funds in estimating the value of Level 3 Prices may include the original transaction price, quoted prices for similar securities or assets in active markets, completed or pending third-party transactions in the underlying investment or comparable issuers, and changes in financial ratios or cash flows. Level 3 Prices may also be adjusted to reflect illiquidity and/or non-transferability, with the
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iSHARES®, INC.
amount of such discount estimated by the Funds in the absence of market information. The fair value measurement of Level 3 Prices does not include transaction costs that may have been capitalized as part of the security’s cost basis. Assumptions used by the Funds due to the lack of observable inputs may significantly impact the resulting fair value and therefore the Funds’ results of operations.
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 underlying index, which in turn could result in a difference between the Fund’s performance and the performance of the Fund’s underlying index.
The following table summarizes the inputs used in valuing the Funds’ investments as of February 28, 2009:
Investments in Securities | ||||||||||||
iShares MSCI Index Fund | Level 1 | Level 2 | Level 3 | Total | ||||||||
Brazil | $ | 3,921,657,244 | $ | – | $ | – | $ | 3,921,657,244 | ||||
BRIC | 108,625,211 | – | 657,916 | 109,283,127 | ||||||||
Canada | 898,249,395 | – | 66,935 | 898,316,330 | ||||||||
Chile Investable Market | 149,685,016 | – | – | 149,685,016 | ||||||||
Israel Capped Investable Market | 89,732,827 | – | – | 89,732,827 | ||||||||
Mexico Investable Market | 344,368,057 | – | – | 344,368,057 | ||||||||
South Africa | 235,406,001 | – | – | 235,406,001 | ||||||||
Turkey Investable Market | 84,453,546 | – | – | 84,453,546 |
The following table provides the reconciliation of investments in which significant unobservable inputs (Level 3) were used in determining fair value for the six months ended February 28, 2009:
iShares MSCI Index Fund | Balance at Beginning of Period | (Amortized Premiums) Accreted Discounts | Realized Gain (Loss) and Change in Unrealized Appreciation (Depreciation) | Net Purchases (Sales) | Net Transfers in or out | Balance at End of Period | Net Change in Unrealized Appreciation (Depreciation) from Investments Still Held at End of Period | |||||||||||||||||
BRIC | $ | – | $ | – | $ | (907,089 | ) | $ | 129,661 | $ | 1,435,344 | $ | 657,916 | $ | (907,089 | ) | ||||||||
Canada | 112,339 | – | (45,404 | ) | – | – | 66,935 | (45,404 | ) | |||||||||||||||
Chile Investable Market | 6,805 | – | – | – | (6,805 | ) | – | – | ||||||||||||||||
Turkey Investable Market | 34,000 | – | – | – | (34,000 | ) | – | – |
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.
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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 28, 2009, if any, are reflected in the Funds’ Statements 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 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 28, 2009.
Certain Funds had tax basis net capital loss carryforwards as of August 31, 2008, the tax year-end of the Funds, as follows:
iShares MSCI Index Fund | Expiring 2010 | Expiring 2011 | Expiring 2012 | Expiring 2013 | Expiring 2014 | Expiring 2015 | Expiring 2016 | Total | |||||||||||||||
Canada | $ – | $ | – | $ | – | $ | 2,931,648 | $ | – | $ | 5,363,291 | $ | 5,107,471 | $ | 13,402,410 | ||||||||
Mexico Investable Market | 47,326 | 2,329,290 | 3,136,171 | 12,912 | 632,766 | – | 853,150 | 7,011,615 | |||||||||||||||
South Africa | – | – | 527,613 | – | 260,738 | 1,607,845 | 972,024 | 3,368,220 |
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Net capital loss carryforwards may be applied against any net realized taxable gains in each succeeding year or until their respective expiration dates, whichever occurs first.
The Funds may own shares in certain foreign investment entities, referred to, under U.S. tax law, as “passive foreign investment companies.” The Funds may elect to mark-to-market annually the shares of each passive foreign investment company and would be required to distribute to shareholders any such marked-to-market gains.
Each Fund reclassifies at the end of its tax year certain amounts to paid-in-capital from accumulated net realized gain (loss) on investments and foreign currency transactions and accumulated net investment income (loss), respectively, as a result of permanent book and tax differences primarily attributed to net investment loss, return of capital, passive foreign investment companies, realized foreign currency gains and losses and gains and losses on in-kind redemptions. These reclassifications have no effect on net assets or net asset values per share.
As of February 28, 2009, 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 Depreciation | |||||||||
Brazil | $ | 5,224,123,806 | $80,463,401 | $ | (1,382,929,963 | ) | $ | (1,302,466,562 | ) | ||||
BRIC | 225,460,617 | – | (116,177,490 | ) | (116,177,490 | ) | |||||||
Canada | 1,882,210,611 | – | (983,894,281 | ) | (983,894,281 | ) | |||||||
Chile Investable Market | 196,459,527 | – | (46,774,511 | ) | (46,774,511 | ) | |||||||
Israel Capped Investable Market | 161,512,133 | 429,662 | (72,208,968 | ) | (71,779,306 | ) | |||||||
Mexico Investable Market | 819,527,120 | – | (475,159,063 | ) | (475,159,063 | ) | |||||||
South Africa | 485,695,299 | – | (250,289,298 | ) | (250,289,298 | ) | |||||||
Turkey Investable Market | 164,883,884 | – | (80,430,338 | ) | (80,430,338 | ) |
Management has reviewed the tax positions as of February 28, 2009, inclusive of the prior three open tax return years, as applicable, and has determined that no provision for income tax is required in 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 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.
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For its investment advisory services to the iShares MSCI Canada and iShares MSCI Mexico Investable Market 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 Funds and certain other iShares Funds, as follows:
Investment Advisory Fee | Aggregate Average Daily Net Assets | |
0.59% | First $7 billion | |
0.54 | Over $7 billion, up to and including $11 billion | |
0.49 | Over $11 billion, up to and including $24 billion | |
0.44 | Over $24 billion, up to and including $48 billion | |
0.40 | Over $48 billion |
For its investment advisory services to the iShares MSCI Brazil, iShares MSCI Chile Investable Market, iShares MSCI Israel Capped Investable Market, iShares MSCI South Africa and iShares MSCI Turkey Investable Market 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 Funds and certain other iShares 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, up to and including $16 billion | |
0.51 | Over $16 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 certain other iShares Funds, 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 |
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,
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BGI receives, as fees, a share of the income earned on investment of the cash collateral received for the loan of securities. For the six months ended February 28, 2009, BGI earned securities lending agent fees as follows:
iShares MSCI Index Fund | Securities Lending Agent Fees | ||
Brazil | $ | 78,278 | |
BRIC | 65,439 | ||
Israel Capped Investable Market | 68,464 |
iShares MSCI Index Fund | Securities Lending Agent Fees | ||
Mexico Investable Market | $ | 205,084 | |
South Africa | 5,710 | ||
Turkey Investable Market | 363,293 |
Cross trades for the six months ended February 28, 2009, 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 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. These money market funds seek to achieve their investment objectives by investing in high-quality, short-term money market instruments that, at the time of investment, have remaining maturities of 397 calendar days or less from the date of acquisition. 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.
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 28, 2009, were as follows:
iShares MSCI Index Fund | Purchases | Sales | ||||
Brazil | $ | 729,048,634 | $ | 304,221,251 | ||
BRIC | 11,680,854 | 4,816,437 | ||||
Canada | 37,024,865 | 43,157,915 | ||||
Chile Investable Market | 149,958,459 | 32,204,266 | ||||
Israel Capped Investable Market | 18,420,481 | 18,836,411 | ||||
Mexico Investable Market | 50,485,426 | 56,489,994 | ||||
South Africa | 24,592,558 | 26,222,810 | ||||
Turkey Investable Market | 5,048,426 | 4,785,297 |
In-kind transactions (see Note 4) for the six months ended February 28, 2009, were as follows:
iShares MSCI Index Fund | In-kind Purchases | In-kind Sales | ||
BRIC | 17,008,336 | 1,439,655 | ||
Canada | 53,917,029 | 231,802,161 | ||
Israel Capped Investable Market | 1,493,955 | 56,108,734 | ||
Mexico Investable Market | 327,896,607 | 438,680,545 | ||
South Africa | 140,495,071 | 140,726,638 | ||
Turkey Investable Market | 23,527,105 | 18,875,881 |
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 and iShares MSCI Chile Investable Market 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.
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iSHARES®, INC.
5. LOANS OF PORTFOLIO SECURITIES
Each Fund may lend its investment securities to approved borrowers, such as brokers, dealers and other financial institutions. The borrower pledges and maintains with the Fund collateral consisting of cash, an irrevocable letter of credit issued by a bank, or securities issued or guaranteed by the U.S. government. The initial collateral received by each Fund is required to have a value of at least 102% of the market value of the loaned securities for securities traded on U.S. exchanges and a value of at least 105% for all other securities. The collateral is maintained thereafter, at a value equal to at least 100% of the current market value of the securities on loan. The risks to the Funds of securities lending include the risk that the borrower may not provide additional collateral when required or may not return the securities when due. Any securities lending cash collateral may be reinvested in certain short-term instruments either directly on behalf of a Fund or through one or more joint accounts or money market funds, including those managed by BGFA; such reinvestments are subject to investment risk.
As of February 28, 2009, certain Funds had loaned securities which were collateralized by cash. The cash collateral received was invested in money market funds managed by BGFA. The market value of the securities on loan as of February 28, 2009 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. SUBSEQUENT EVENT
On April 9, 2009, Barclays Global Investors UK Holdings Limited (“Barclays”), the parent company of BGI and BGFA, entered into an agreement to sell its interest in BGFA and certain affiliated companies to Blue Sparkle, L.P., a Cayman Islands limited partnership (the “Transaction”). Blue Sparkle, L.P. is an investment vehicle for private equity funds affiliated with CVC Capital Partners Group SICAV-FIS S.A., a private equity and investment advisory firm. The Transaction is subject to certain regulatory approvals, as well as other conditions to closing.
Under the 1940 Act, completion of the Transaction will cause the automatic termination of each Fund’s current investment advisory agreement with BGFA. In order for the management of each Fund to continue uninterrupted, the Board will be asked to approve a new investment advisory agreement with BGFA. If approved by the Board, the new investment advisory agreement will be submitted to the Funds’ shareholders for their approval.
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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
Capped (FIO)
iShares FTSE NAREIT Mortgage Plus
Capped (REM)
iShares FTSE NAREIT Real Estate 50 (FTY)
iShares FTSE NAREIT Residential Plus
Capped (REZ)
iShares FTSE NAREIT Retail Capped (RTL)
iShares Global Index Funds
iShares S&P Global 100 (IOO)
iShares S&P Global Clean Energy (ICLN)
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 Nuclear Energy (NUCL)
iShares S&P Global Technology Sector (IXN)
iShares S&P Global Telecommunications
Sector (IXP)
iShares S&P Global Timber & Forestry (WOOD)
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 China (HK Listed) (FCHI)
iShares FTSE/Xinhua China 25 (FXI)
iShares MSCI Australia (EWA)
iShares MSCI Austria Investable Market (EWO)
iShares MSCI Belgium Investable Market (EWK)
iShares MSCI Brazil (EWZ)
iShares MSCI Canada (EWC)
iShares MSCI Chile Investable Market (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 Investable Market (EWW)
iShares MSCI Netherlands Investable
Market (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 Barclays Aggregate (AGG)
iShares Barclays MBS (MBB)
iShares Barclays Short Treasury (SHV)
iShares Barclays 1-3 Year Treasury (SHY)
iShares Barclays 3-7 Year Treasury (IEI)
iShares Barclays 7-10 Year Treasury (IEF)
iShares Barclays 10-20 Year Treasury (TLH)
iShares Barclays 20+ Year Treasury (TLT)
iShares Barclays TIPS (TIP)
iShares Barclays Agency (AGZ)
iShares Barclays Credit (CFT)
iShares Barclays 1-3 Year Credit (CSJ)
iShares Barclays Intermediate Credit (CIU)
iShares iBoxx $ Investment Grade
Corporate (LQD)
iShares iBoxx $ High Yield Corporate (HYG)
iShares Barclays Government/Credit (GBF)
iShares Barclays Intermediate
Government/Credit (GVI)
iShares S&P National Municipal (MUB)
iShares S&P Short Term National
Municipal (SUB)
iShares S&P California Municipal (CMF)
iShares S&P New York Municipal (NYF)
iShares JPMorgan USD Emerging Markets (EMB)
iShares S&P/Citigroup International
Treasury (IGOV)
iShares S&P/Citigroup 1-3 Year International Treasury (ISHG)
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 FAMILYOF FUNDS | 61 |
Table of Contents
The iShares® Family of Funds (Continued)
iShares International Index Funds
iShares FTSE Developed Small Cap ex-North America (IFSM)
iShares FTSE EPRA/NAREIT Developed
Asia (IFAS)
iShares FTSE EPRA/NAREIT Developed
Europe (IFEU)
iShares FTSE EPRA/NAREIT Developed Real Estate ex-U.S. (IFGL)
iShares FTSE EPRA/NAREIT North
America (IFNA)
iShares MSCI ACWI (ACWI)
iShares MSCI ACWI ex US (ACWX)
iShares MSCI All Country Asia ex Japan (AAXJ)
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 Developed ex-U.S. Property (WPS)
iShares S&P Europe 350 (IEV)
iShares S&P Latin America 40 (ILF)
iShares Morningstar Index Funds
iShares Morningstar Large Core (JKD)
iShares Morningstar Large Growth (JKE)
iShares Morningstar Large Value (JKF)
iShares Morningstar Mid Core (JKG)
iShares Morningstar Mid Growth (JKH)
iShares Morningstar Mid Value (JKI)
iShares Morningstar Small Core (JKJ)
iShares Morningstar Small Growth (JKK)
iShares Morningstar Small Value (JKL)
iShares NYSE Index Funds
iShares NYSE Composite (NYC)
iShares NYSE 100 (NY)
iShares S&P Allocation Funds
iShares S&P Conservative (AOK)
iShares S&P Moderate (AOM)
iShares S&P Growth (AOR)
iShares S&P Aggressive (AOA)
iShares S&P Target Date Index Funds
iShares S&P Target Date Retirement
Income (TGR)
iShares S&P Target Date 2010 (TZD)
iShares S&P Target Date 2015 (TZE)
iShares S&P Target Date 2020 (TZG)
iShares S&P Target Date 2025 (TZI)
iShares S&P Target Date 2030 (TZL)
iShares S&P Target Date 2035 (TZO)
iShares S&P Target Date 2040 (TZV)
iShares® is a registered trademark of Barclays Global Investors, N.A. (“BGI”). The iShares Funds are not 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, nor are they sponsored or endorsed by Barclays Capital. 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 except Barclays Capital, which is an affiliate of BGI. 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/Residential/Retail/Mortgage REITs or 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 2009 Semi-Annual Report.
iS-0569-0409
62 | 2009 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
For more information:
WWW.iSHARES.COM
1-800-iShares (1-800-474-2737)
The iShares Funds are distributed by SEI Investments Distribution Co. (SEI). Barclays Global Fund Advisors (BGFA) serves as an advisor to the iShares Funds. BGFA is a subsidiary of Barclays Global Investors, N.A. (BGI), neither of which is affiliated with SEI.
The iShares Funds are not sponsored, endorsed, issued sold or promoted by MSCI Inc., nor does this company 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 company listed above.
©2009 Barclays Global Investors. All rights reserved iShares® is a registered trademark of Barclays Global Investors, N.A. All other trademarks, servicemarks or registered trademarks are the property of their respective owners.
Investing involves risk, including possible loss of principal.
A description of the policies that the Funds use to determine how to vote proxies relating to portfolio securities and information about how the
Funds voted proxies relating to portfolio securities during the most recent twelve-month period ended June 30 is available without charge, upon
request, by calling toll-free 1-800-474-2737; on the Funds’ website at www.iShare.com; and on the U.S. Securities and Exchange Commission
(SEC) website at www.sec.gov.
The Funds file their complete schedules of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. The Funds’ Forms N-Q are available on the SFC’S website or may be reviewed and copied at the SEC’s Public Reference Room in Washington, D.C. Information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330. The Funds also disclose their complete schedules of portfolio holdings on a monthly basis on the Funds’ website.
This report is intended for the Funds’ shareholders. It may not be distributed to prospective investors unless it is preceded or accompanied by the current prospectus.
BGI - SAR-84-0209
LET’S BUILD A BETTER INVESTMENT WORLD.®
BARCLAYS
GLOBAL INVESTORS
iShares®
Table of Contents
2009 SEMI-ANNUAL REPORT TO SHAREHOLDERS
iSHARES® MSCI SERIES
FEBRUARY 28, 2009
Would you prefer to receive materials like this electronically? See inside cover for details.
iShares MSCI Japan Index Fund
iShares®
Table of Contents
iShares®
Dear iShares Shareholder:
Electronic delivery is the easiest, most convenient way to receive reporting on your iShares holdings. In addition, it’s a way we can all care for our environment. To that end, we are pleased to offer shareholder reports and prospectuses online.
To sign up for electronic delivery, please follow these simple steps:
1. Go to www.icsdelivery.com.
2. From the main page, select the first letter of your brokerage firm’s name.
3. Select your brokerage institution from the list that follows. If your brokerage firm is not listed, electronic delivery may not be available. Please contact your brokerage firm or financial adviser.
4. Fill out the appropriate information and provide the e-mail address where you would like your information sent.
Your information and email address will be kept confidential and only used to deliver documents to you. If at any time you are not satisfied, you can cancel electronic delivery at www.icsdelivery.com and once again receive physical delivery of your materials. If you have any questions, please contact your brokerage firm or financial adviser.
Once you have enrolled, you will no longer receive prospectuses and shareholder reports in the mail. Instead, you will receive e-mail notifications announcing that the shareholder report or prospectus has been posted on the iShares website at www.iShares.com.
Table of Contents
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Table of Contents
iSHARES® MSCI JAPAN INDEX FUND
Performance as of February 28, 2009
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 28, 2009, the total return for the Fund was (34.15)%, while the total return for the Index was (34.02)%.
Average Annual Total Returns | ||||||||||||||||
Year Ended 2/28/09 | Five Years Ended 2/28/09 | Ten Years Ended 2/28/09 | ||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||
(40.08)% | (40.42)% | (39.84)% | (3.89)% | (4.58)% | (3.37)% | (2.05)% | (2.32)% | (1.43)% | ||||||||
Cumulative Total Returns | ||||||||||||||||
Year Ended 2/28/09 | Five Years Ended 2/28/09 | Ten Years Ended 2/28/09 | ||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||
(40.08)% | (40.42)% | (39.84)% | (17.98)% | (20.91)% | (15.73)% | (18.74)% | (20.93)% | (13.40)% |
“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 primary 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 2/28/09 | |||
Sector | Percentage of Net Assets | ||
Consumer Cyclical | 25.42 | % | |
Industrial | 20.21 | ||
Financial | 16.05 | ||
Consumer Non-Cyclical | 11.38 | ||
Utilities | 8.24 | ||
Basic Materials | 6.78 | ||
Communications | 6.01 | ||
Technology | 4.18 | ||
Energy | 1.51 | ||
Short-Term and Other Net Assets | 0.22 | ||
TOTAL | 100.00 | % | |
TEN LARGEST FUND HOLDINGS As of 2/28/09 | |||
Security | Percentage of Net Assets | ||
Toyota Motor Corp. | 5.57 | % | |
Mitsubishi UFJ Financial Group Inc. | 3.20 | ||
Honda Motor Co. Ltd. | 2.52 | ||
Tokyo Electric Power Co. Inc. (The) | 2.18 | ||
Takeda Pharmaceutical Co. Ltd. | 2.06 | ||
Nintendo Co. Ltd. | 1.92 | ||
Canon Inc. | 1.71 | ||
NTT DoCoMo Inc. | 1.55 | ||
Nippon Telegraph and Telephone Corp. | 1.43 | ||
Sumitomo Mitsui Financial Group Inc. | 1.40 | ||
TOTAL | 23.54 | % | |
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, 2008 to February 28, 2009.
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 (9/1/08) | Ending Account Value (2/28/09) | Annualized Expense Ratio | Expenses Paid During Perioda (9/1/08 to 2/28/09) | ||||||
Actual | $1,000.00 | $ 658.50 | 0.56 | % | $2.30 | ||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,022.00 | 0.56 | 2.81 |
a | Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (181 days) and divided by the number of days in the year (365 days). |
2 | 2009 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited)
iSHARES® MSCI JAPAN INDEX FUND
February 28, 2009
Security | Shares | Value | |||
COMMON STOCKS – 99.78% | |||||
ADVERTISING – 0.23% | |||||
Dentsu Inc.a | 467,000 | $ | 6,892,003 | ||
Hakuhodo DY Holdings Inc. | 65,170 | 2,844,048 | |||
9,736,051 | |||||
AGRICULTURE – 0.69% | |||||
Japan Tobacco Inc. | 12,103 | 29,068,476 | |||
29,068,476 | |||||
AIRLINES – 0.28% | |||||
All Nippon Airways Co. Ltd.a | 1,864,000 | 6,667,688 | |||
Japan Airlines Corp.a,b | 2,793,000 | 5,309,397 | |||
11,977,085 | |||||
APPAREL – 0.19% | |||||
ASICS Corp. | 461,000 | 2,902,305 | |||
Onward Holdings Co. Ltd. | 931,000 | 5,309,397 | |||
8,211,702 | |||||
AUTO MANUFACTURERS – 9.50% | |||||
Fuji Heavy Industries Ltd. | 1,862,000 | 6,032,541 | |||
Hino Motors Ltd. | 931,000 | 1,731,739 | |||
Honda Motor Co. Ltd. | 4,375,700 | 106,882,549 | |||
Isuzu Motors Ltd. | 3,724,000 | 3,691,839 | |||
Mazda Motor Corp. | 2,793,000 | 3,596,689 | |||
Mitsubishi Motors Corp.a,b | 9,310,000 | 10,942,307 | |||
Nissan Motor Co. Ltd. | 6,144,900 | 19,217,532 | |||
Suzuki Motor Corp. | 931,000 | 14,700,751 | |||
Toyota Motor Corp. | 7,262,300 | 236,027,533 | |||
402,823,480 | |||||
AUTO PARTS & EQUIPMENT – 1.95% | |||||
Aisin Seiki Co. Ltd. | 465,700 | 7,324,976 | |||
Bridgestone Corp. | 1,582,700 | 21,885,565 | |||
Denso Corp. | 1,303,400 | 25,016,968 | |||
JTEKT Corp. | 372,400 | 2,009,578 | |||
NGK Spark Plug Co. Ltd. | 629,000 | 4,911,401 | |||
NHK Spring Co. Ltd. | 406,000 | 1,390,056 | |||
NOK Corp. | 279,300 | 2,043,833 | |||
Sumitomo Rubber Industries Inc. | 372,400 | 2,371,150 | |||
Toyoda Gosei Co. Ltd. | 186,200 | 2,553,839 | |||
Toyota Boshoku Corp. | 93,100 | 907,736 | |||
Toyota Industries Corp. | 558,600 | 12,074,598 | |||
82,489,700 |
Security | Shares | Value | |||
BANKS – 9.66% | |||||
Aozora Bank Ltd. | 931,000 | $ | 1,056,170 | ||
Bank of Kyoto Ltd. (The) | 931,000 | 8,125,852 | |||
Bank of Yokohama Ltd. (The) | 3,724,000 | 15,985,283 | |||
Chiba Bank Ltd. (The) | 1,862,000 | 8,868,026 | |||
Chuo Mitsui Trust Holdings Inc. | 2,793,000 | 8,649,180 | |||
Fukuoka Financial Group Inc. | 1,868,000 | 5,689,243 | |||
Gunma Bank Ltd. | 931,000 | 5,033,461 | |||
Hachijuni Bank Ltd. (The) | 931,000 | 5,204,732 | |||
Hiroshima Bank Ltd. (The) | 931,000 | 3,511,053 | |||
Hokuhoku Financial Group Inc. | 3,729,000 | 5,869,140 | |||
Iyo Bank Ltd. (The) | 931,000 | 9,848,076 | |||
Joyo Bank Ltd. (The) | 1,862,000 | 8,601,605 | |||
Mitsubishi UFJ Financial Group Inc. | 29,233,480 | 135,643,108 | |||
Mizuho Financial Group Inc. | 25,323,300 | 48,656,348 | |||
Mizuho Trust & Banking Co. Ltd. | 3,724,000 | 3,235,117 | |||
Nishi-Nippon City Bank Ltd. (The) | 1,862,000 | 3,844,080 | |||
Resona Holdings Inc.a | 1,400,100 | 24,426,089 | |||
Sapporo Hokuyo Holdings Inc. | 934,000 | 2,357,790 | |||
Seven Bank Ltd. | 931 | 2,559,548 | |||
77 Bank Ltd. (The) | 931,000 | 4,424,501 | |||
Shinsei Bank Ltd. | 3,724,000 | 3,349,297 | |||
Shizuoka Bank Ltd. (The) | 1,862,000 | 16,556,186 | |||
Sumitomo Mitsui Financial Group Inc. | 1,837,300 | 59,525,178 | |||
Sumitomo Trust and Banking Co. Ltd. (The) | 3,724,000 | 12,597,925 | |||
Suruga Bank Ltd. | 776,000 | 6,059,216 | |||
409,676,204 | |||||
BEVERAGES – 0.90% | |||||
Asahi Breweries Ltd. | 931,000 | 11,741,571 | |||
Coca-Cola West Co. Ltd. | 186,200 | 2,966,792 | |||
ITO EN Ltd.a | 186,400 | 2,381,317 | |||
Kirin Holdings Co. Ltd. | 1,862,000 | 18,116,654 | |||
Sapporo Holdings Ltd. | 931,000 | 3,073,361 | |||
38,279,695 | |||||
BUILDING MATERIALS – 1.09% | |||||
Asahi Glass Co. Ltd. | 2,793,000 | 12,245,869 | |||
Daikin Industries Ltd. | 658,700 | 14,608,605 |
SCHEDULEOF INVESTMENTS | 3 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI JAPAN INDEX FUND
February 28, 2009
Security | Shares | Value | |||
JS Group Corp. | 651,700 | $ | 7,060,166 | ||
Nippon Sheet Glass Co. Ltd. | 1,862,000 | 3,748,929 | |||
Panasonic Electric Works Co. Ltd. | 931,000 | 5,709,030 | |||
Taiheiyo Cement Corp. | 1,862,000 | 2,683,244 | |||
46,055,843 | |||||
CHEMICALS – 3.22% | |||||
Asahi Kasei Corp. | 2,793,000 | 8,991,722 | |||
Daicel Chemical Industries Ltd. | 931,000 | 3,273,177 | |||
Denki Kagaku Kogyo Kabushiki Kaisha | 1,862,000 | 3,044,816 | |||
DIC Corp. | 1,862,000 | 2,626,154 | |||
Hitachi Chemical Co. Ltd. | 186,200 | 1,878,271 | |||
JSR Corp. | 465,500 | 5,552,031 | |||
Kaneka Corp. | 931,000 | 4,557,709 | |||
Mitsubishi Chemical Holdings Corp. | 3,258,500 | 11,189,698 | |||
Mitsubishi Gas Chemical Co. Inc. | 931,000 | 3,701,354 | |||
Mitsui Chemicals Inc. | 1,862,000 | 4,015,351 | |||
Nitto Denko Corp. | 465,500 | 8,468,394 | |||
Shin-Etsu Chemical Co. Ltd. | 1,024,100 | 46,157,504 | |||
Showa Denko K.K. | 2,793,000 | 3,339,782 | |||
Sumitomo Chemical Co. Ltd. | 3,724,000 | 11,341,939 | |||
Taiyo Nippon Sanso Corp. | 931,000 | 5,946,906 | |||
Tokuyama Corp. | 931,000 | 4,938,311 | |||
Tosoh Corp. | 1,862,000 | 2,854,515 | |||
Ube Industries Ltd. | 2,801,000 | 4,494,425 | |||
136,372,059 | |||||
COMMERCIAL SERVICES – 0.96% | |||||
Benesse Corp. | 186,200 | 7,440,769 | |||
Dai Nippon Printing Co. Ltd. | 1,862,000 | 15,966,253 | |||
Kamigumi Co. Ltd. | 931,000 | 5,994,482 | |||
Toppan Printing Co. Ltd. | 1,862,000 | 11,227,758 | |||
40,629,262 | |||||
COMPUTERS – 0.72% | |||||
Fujitsu Ltd. | 4,655,000 | 16,032,858 | |||
Itochu Techno-Solutions Corp. | 93,100 | 1,751,721 | |||
OBIC Co. Ltd. | 9,310 | 1,247,423 | |||
Otsuka Corp. | 62,000 | 2,186,111 | |||
TDK Corp. | 279,300 | 9,334,263 | |||
30,552,376 |
Security | Shares | Value | |||
COSMETICS & PERSONAL CARE – 1.10% | |||||
Kao Corp. | 1,401,000 | $ | 26,732,761 | ||
Shiseido Co. Ltd. | 931,000 | 13,768,276 | |||
Uni-Charm Corp. | 93,100 | 6,070,601 | |||
46,571,638 | |||||
DISTRIBUTION & WHOLESALE – 3.62% | |||||
Canon Marketing Japan Inc. | 93,100 | 1,303,562 | |||
Hitachi High-Technologies Corp. | 93,100 | 1,157,981 | |||
ITOCHU Corp. | 3,724,000 | 17,050,968 | |||
Marubeni Corp. | 3,878,000 | 12,286,576 | |||
Mitsubishi Corp. | 3,537,800 | 44,979,541 | |||
Mitsui & Co. Ltd. | 4,655,000 | 43,769,227 | |||
Sojitz Corp. | 3,351,600 | 3,836,468 | |||
Sumitomo Corp. | 2,886,100 | 24,541,215 | |||
Toyota Tsusho Corp. | 558,700 | 4,596,592 | |||
153,522,130 | |||||
DIVERSIFIED FINANCIAL SERVICES – 1.31% | |||||
Acom Co. Ltd.a | 147,568 | 3,649,799 | |||
AEON Credit Service Co. Ltd. | 372,470 | 2,881,699 | |||
Credit Saison Co. Ltd. | 465,500 | 3,097,148 | |||
Daiwa Securities Group Inc. | 3,724,000 | 13,016,587 | |||
Mitsubishi UFJ Lease & Finance Co. Ltd. | 139,650 | 2,484,855 | |||
Nomura Holdings Inc.a | 4,748,100 | 20,090,075 | |||
ORIX Corp. | 232,750 | 4,852,675 | |||
Promise Co. Ltd.a | 186,200 | 2,523,391 | |||
Shinko Securities Co. Ltd. | 931,000 | 1,693,679 | |||
Takefuji Corp. | 307,230 | 1,029,909 | |||
55,319,817 | |||||
ELECTRIC – 7.03% | |||||
Chubu Electric Power Co. Inc. | 1,768,900 | 43,840,589 | |||
Chugoku Electric Power Co. Inc. (The) | 651,800 | 15,654,658 | |||
Electric Power Development Co. Ltd. | 372,400 | 11,988,962 | |||
Hokkaido Electric Power Co. Inc. | 465,500 | 9,895,651 | |||
Hokuriku Electric Power Co. | 372,400 | 9,895,651 | |||
Kansai Electric Power Co. Inc. (The) | 2,048,200 | 49,506,802 | |||
Kyushu Electric Power Co. Inc. | 1,024,100 | 24,334,739 | |||
Shikoku Electric Power Co. Inc. | 465,500 | 14,153,636 | |||
Tohoku Electric Power Co. Inc. | 1,117,300 | 26,263,887 |
4 | 2009 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI JAPAN INDEX FUND
February 28, 2009
Security | Shares | Value | |||
Tokyo Electric Power Co. Inc. (The) | 3,258,500 | $ | 92,414,916 | ||
297,949,491 | |||||
ELECTRICAL COMPONENTS & | |||||
Brother Industries Ltd. | 651,700 | 4,409,274 | |||
Casio Computer Co. Ltd. | 651,700 | 4,549,145 | |||
Furukawa Electric Co. Ltd. (The) | 1,862,000 | 4,928,796 | |||
Hitachi Ltd. | 9,310,000 | 23,597,322 | |||
Mitsubishi Electric Corp. | 4,655,000 | 18,697,072 | |||
SANYO Electric Co. Ltd.b | 4,231,000 | 6,010,619 | |||
Sharp Corp. | 2,793,000 | 21,865,583 | |||
Stanley Electric Co. Ltd. | 373,600 | 3,814,466 | |||
Sumitomo Electric Industries Ltd. | 1,862,500 | 14,695,181 | |||
Toshiba Corp.a | 8,379,000 | 20,552,506 | |||
Ushio Inc. | 279,300 | 3,739,414 | |||
126,859,378 | |||||
ELECTRONICS – 5.01% | |||||
Advantest Corp. | 372,400 | 4,571,030 | |||
Alps Electric Co. Ltd. | 465,500 | 1,308,319 | |||
Fanuc Ltd. | 465,500 | 30,923,910 | |||
Hirose Electric Co. Ltd.a | 93,100 | 8,059,247 | |||
Hoya Pentax HD Corp. | 1,117,200 | 20,586,760 | |||
IBIDEN Co. Ltd. | 372,400 | 7,292,334 | |||
Keyence Corp. | 93,192 | 17,791,676 | |||
Kyocera Corp. | 465,500 | 27,831,519 | |||
Mabuchi Motor Co. Ltd.a | 93,100 | 3,653,779 | |||
Minebea Co. Ltd. | 931,000 | 3,216,087 | |||
Mitsumi Electric Co. Ltd. | 186,200 | 2,346,411 | |||
Murata Manufacturing Co. Ltd. | 558,600 | 21,523,042 | |||
NEC Corp. | 5,586,000 | 13,302,039 | |||
NGK Insulators Ltd. | 931,000 | 12,512,290 | |||
Nippon Electric Glass Co. Ltd. | 931,500 | 6,140,503 | |||
Omron Corp. | 558,600 | 6,508,294 | |||
Secom Co. Ltd. | 558,600 | 19,353,610 | |||
Yaskawa Electric Corp. | 931,000 | 3,682,324 | |||
Yokogawa Electric Corp. | 558,600 | 1,918,234 | |||
212,521,408 | |||||
ENGINEERING & CONSTRUCTION – 0.86% | |||||
JGC Corp. | 931,000 | 10,847,156 | |||
Kajima Corp. | 2,793,000 | 5,880,300 | |||
Obayashi Corp. | 1,862,000 | 7,859,431 |
Security | Shares | Value | |||
Shimizu Corp. | 1,862,000 | $ | 7,060,167 | ||
Taisei Corp. | 2,793,000 | 4,995,401 | |||
36,642,455 | |||||
ENTERTAINMENT – 0.42% | |||||
Oriental Land Co. Ltd.a | 186,200 | 12,236,353 | |||
Toho Co. Ltd. | 373,600 | 5,651,060 | |||
17,887,413 | |||||
ENVIRONMENTAL CONTROL – 0.11% | |||||
Kurita Water Industries Ltd. | 279,300 | 4,809,857 | |||
4,809,857 | |||||
FOOD – 1.16% | |||||
Ajinomoto Co. Inc. | 1,862,000 | 12,883,377 | |||
Kikkoman Corp. | 931,000 | 7,193,377 | |||
Meiji Dairies Corp. | 931,000 | 3,549,113 | |||
Nippon Meat Packers Inc. | 931,000 | 9,134,447 | |||
Nisshin Seifun Group Inc. | 467,500 | 4,758,853 | |||
Nissin Foods Holdings Co. Ltd. | 280,100 | 8,559,446 | |||
Yakult Honsha Co. Ltd.a | 186,200 | 3,008,659 | |||
49,087,272 | |||||
FOREST PRODUCTS & PAPER – 0.31% | |||||
Nippon Paper Group Inc. | 280,200 | 6,257,213 | |||
Oji Paper Co. Ltd. | 1,862,000 | 6,965,016 | |||
13,222,229 | |||||
GAS – 1.21% | |||||
Osaka Gas Co. Ltd. | 5,586,000 | 20,095,784 | |||
Toho Gas Co. Ltd. | 931,000 | 4,824,130 | |||
Tokyo Gas Co. Ltd. | 6,517,000 | 26,242,506 | |||
51,162,420 | |||||
HAND & MACHINE TOOLS – 0.93% | |||||
Fuji Electric Holdings Co. Ltd. | 1,862,000 | 1,693,679 | |||
Makita Corp. | 279,300 | 5,597,703 | |||
Nidec Corp. | 279,300 | 11,817,691 | |||
SMC Corp. | 186,200 | 17,184,179 | |||
THK Co. Ltd.a | 279,900 | 3,252,556 | |||
39,545,808 | |||||
HEALTH CARE - PRODUCTS – 0.34% | |||||
Terumo Corp. | 465,500 | 14,415,300 | |||
14,415,300 | |||||
HOME BUILDERS – 0.41% | |||||
Daiwa House Industry Co. Ltd. | 931,000 | 6,175,267 | |||
Haseko Corp. | 3,258,500 | 1,132,291 |
SCHEDULEOF INVESTMENTS | 5 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI JAPAN INDEX FUND
February 28, 2009
Security | Shares | Value | |||
Sekisui Chemical Co. Ltd. | 931,000 | $ | 4,005,836 | ||
Sekisui House Ltd. | 931,000 | 6,184,782 | |||
17,498,176 | |||||
HOME FURNISHINGS – 2.45% | |||||
Panasonic Corp. | 4,655,015 | 54,902,012 | |||
Sony Corp. | 2,699,900 | 46,026,197 | |||
Yamaha Corp. | 372,400 | 2,915,411 | |||
103,843,620 | |||||
HOUSEWARES – 0.10% | |||||
TOTO Ltd.a | 931,000 | 4,043,896 | |||
4,043,896 | |||||
INSURANCE – 2.57% | |||||
Aioi Insurance Co. Ltd. | 931,000 | 3,453,963 | |||
Mitsui Sumitomo Insurance Group Holdings Inc. | 1,024,100 | 24,805,733 | |||
Nipponkoa Insurance Co. Ltd. | 1,862,000 | 13,949,062 | |||
Sompo Japan Insurance Inc. | 1,862,000 | 9,381,839 | |||
Sony Financial Holdings Inc. | 1,862 | 4,862,190 | |||
T&D Holdings Inc. | 512,050 | 11,670,208 | |||
Tokio Marine Holdings Inc. | 1,768,900 | 40,857,622 | |||
108,980,617 | |||||
INTERNET – 1.48% | |||||
Dena Co. Ltd.a | 931 | 2,778,394 | |||
Matsui Securities Co. Ltd.a | 281,700 | 1,632,418 | |||
Rakuten Inc. | 17,811 | 9,210,860 | |||
SBI Holdings Inc. | 43,757 | 3,546,354 | |||
SoftBank Corp. | 1,955,100 | 23,977,924 | |||
Trend Micro Inc. | 465,500 | 10,704,431 | |||
Yahoo! Japan Corp.a | 38,181 | 11,031,498 | |||
62,881,879 | |||||
IRON & STEEL – 2.54% | |||||
Daido Steel Co. Ltd. | 931,000 | 2,026,705 | |||
JFE Holdings Inc. | 1,396,750 | 30,762,903 | |||
Kobe Steel Ltd. | 7,448,000 | 9,058,327 | |||
Nippon Steel Corp. | 13,965,000 | 37,251,418 | |||
Nisshin Steel Co. Ltd. | 2,801,000 | 4,351,290 | |||
Sumitomo Metal Industries Ltd. | 10,241,000 | 19,572,457 | |||
Tokyo Steel Manufacturing Co. Ltd. | 279,900 | 2,783,410 | |||
Yamato Kogyo Co. Ltd. | 93,100 | 1,926,797 | |||
107,733,307 |
Security | Shares | Value | |||
LEISURE TIME – 0.66% | |||||
Namco Bandai Holdings Inc. | 558,698 | $ | 5,161,868 | ||
Sankyo Co. Ltd. | 186,200 | 8,449,364 | |||
Sega Sammy Holdings Inc. | 466,300 | 4,017,486 | |||
Shimano Inc. | 186,200 | 6,184,782 | |||
Yamaha Motor Co. Ltd. | 465,700 | 4,031,355 | |||
27,844,855 | |||||
MACHINERY – 0.28% | |||||
Hitachi Construction Machinery Co. Ltd.a | 282,300 | 3,332,378 | |||
Japan Steel Works Ltd. (The) | 931,000 | 8,525,484 | |||
11,857,862 | |||||
MACHINERY - CONSTRUCTION & MINING – 0.57% | |||||
Komatsu Ltd. | 2,327,500 | 24,310,951 | |||
24,310,951 | |||||
MACHINERY - DIVERSIFIED – 0.55% | |||||
Amada Co. Ltd. | 931,000 | 4,576,739 | |||
Kubota Corp. | 2,793,000 | 13,587,490 | |||
Sumitomo Heavy Industries Ltd. | 1,862,000 | 5,004,916 | |||
23,169,145 | |||||
MANUFACTURING – 2.14% | |||||
FUJIFILM Holdings Corp. | 1,303,400 | 24,777,188 | |||
IHI Corp. | 3,730,000 | 3,164,086 | |||
Kawasaki Heavy Industries Ltd. | 3,724,000 | 6,508,294 | |||
Konica Minolta Holdings Inc. | 1,396,500 | 10,861,429 | |||
Mitsubishi Heavy Industries Ltd. | 8,379,000 | 23,806,653 | |||
Nikon Corp. | 931,000 | 8,877,541 | |||
Olympus Corp.a | 931,000 | 12,540,835 | |||
90,536,026 | |||||
MEDIA – 0.18% | |||||
Fuji Media Holdings Inc. | 1,655 | 1,901,191 | |||
Jupiter Telecommunications Co. Ltd. | 5,586 | 4,447,334 | |||
Tokyo Broadcasting System Inc. | 93,100 | 1,222,684 | |||
7,571,209 | |||||
METAL FABRICATE & HARDWARE – 0.16% | |||||
Maruichi Steel Tube Ltd. | 93,100 | 1,979,130 | |||
NSK Ltd. | 931,000 | 2,921,120 | |||
NTN Corp. | 931,000 | 2,074,281 | |||
6,974,531 |
6 | 2009 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI JAPAN INDEX FUND
February 28, 2009
Security | Shares | Value | |||
MINING – 0.71% | |||||
Dowa Holdings Co. Ltd. | 931,000 | $ | 2,930,635 | ||
Mitsubishi Materials Corp. | 2,793,000 | 6,593,929 | |||
Mitsui Mining & Smelting Co. Ltd. | 1,862,000 | 2,664,214 | |||
OSAKA Titanium technologies Co. Ltd.a | 78,400 | 1,690,674 | |||
Sumitomo Metal Mining Co. Ltd. | 1,595,000 | 16,138,280 | |||
30,017,732 | |||||
OFFICE & BUSINESS EQUIPMENT – 2.32% | |||||
Canon Inc. | 2,793,050 | 72,505,974 | |||
Ricoh Co. Ltd. | 1,862,000 | 21,484,981 | |||
Seiko Epson Corp. | 372,400 | 4,327,445 | |||
98,318,400 | |||||
OIL & GAS – 1.51% | |||||
Cosmo Oil Co. Ltd. | 1,862,000 | 5,214,247 | |||
Idemitsu Kosan Co. Ltd. | 34,000 | 2,627,012 | |||
INPEX Corp. | 1,862 | 12,902,407 | |||
Japan Petroleum Exploration Co. Ltd. | 93,100 | 3,453,963 | |||
Nippon Mining Holdings Inc. | 2,327,500 | 8,230,518 | |||
Nippon Oil Corp. | 3,724,500 | 17,928,760 | |||
Showa Shell Sekiyu K.K. | 558,700 | 4,676,532 | |||
TonenGeneral Sekiyu K.K. | 931,000 | 8,829,966 | |||
63,863,405 | |||||
PACKAGING & CONTAINERS – 0.11% | |||||
Toyo Seikan Kaisha Ltd. | 372,400 | 4,799,391 | |||
4,799,391 | |||||
PHARMACEUTICALS – 6.23% | |||||
Alfresa Holdings Corp. | 93,100 | 3,644,264 | |||
Astellas Pharma Inc. | 1,210,330 | 40,696,875 | |||
Chugai Pharmaceutical Co. Ltd. | 558,600 | 9,625,424 | |||
Daiichi Sankyo Co. Ltd. | 1,768,969 | 28,764,164 | |||
Eisai Co. Ltd. | 651,700 | 20,248,025 | |||
Hisamitsu Pharmaceutical Co. Inc. | 93,100 | 2,825,970 | |||
Kyowa Hakko Kirin Co. Ltd. | 931,000 | 7,298,043 | |||
Mediceo Paltac Holdings Co. Ltd. | 372,400 | 3,946,842 | |||
Mitsubishi Tanabe Pharma Corp. | 931,000 | 11,237,273 | |||
Ono Pharmaceutical Co. Ltd. | 186,200 | 8,677,725 | |||
Santen Pharmaceutical Co. Ltd. | 93,100 | 2,569,063 | |||
Shionogi & Co. Ltd. | 931,000 | 15,281,169 |
Security | Shares | Value | |||
Suzuken Co. Ltd. | 186,200 | $ | 5,176,187 | ||
Taisho Pharmaceutical Co. Ltd. | 794,000 | 14,363,330 | |||
Takeda Pharmaceutical Co. Ltd. | 2,141,300 | 87,319,607 | |||
Tsumura & Co. | 93,900 | 2,615,131 | |||
264,289,092 | |||||
REAL ESTATE – 1.92% | |||||
AEON Mall Co. Ltd. | 187,000 | 2,010,568 | |||
Daito Trust Construction Co. Ltd. | 186,200 | 5,918,361 | |||
Leopalace21 Corp. | 372,400 | 2,100,923 | |||
Mitsubishi Estate Co. Ltd. | 3,092,000 | 31,822,208 | |||
Mitsui Fudosan Co. Ltd. | 2,138,000 | 21,916,439 | |||
Nomura Real Estate Holdings Inc.a | 186,200 | 2,416,823 | |||
NTT Urban Development Corp. | 2,793 | 1,998,160 | |||
Sumitomo Realty & Development Co. Ltd. | 931,000 | 9,096,387 | |||
Tokyo Tatemono Co. Ltd. | 931,000 | 2,093,311 | |||
Tokyu Land Corp. | 931,000 | 2,140,886 | |||
81,514,066 | |||||
REAL ESTATE INVESTMENT TRUSTS – 0.56% | |||||
Japan Prime Realty Investment Corp. | 931 | 1,506,232 | |||
Japan Real Estate Investment Corp. | 931 | 6,993,561 | |||
Japan Retail Fund Investment Corp. | 931 | 3,054,331 | |||
Nippon Building Fund Inc. | 1,173 | 9,590,679 | |||
Nomura Real Estate Office Fund Inc. | 520 | 2,657,264 | |||
23,802,067 | |||||
RETAIL – 3.04% | |||||
ABC-Mart Inc. | 93,100 | 2,040,978 | |||
AEON Co. Ltd. | 1,582,700 | 9,462,716 | |||
Citizen Watch Co. Ltd. | 837,900 | 2,980,113 | |||
FamilyMart Co. Ltd. | 186,200 | 6,298,963 | |||
Fast Retailing Co. Ltd. | 93,100 | 9,467,474 | |||
Isetan Mitsukoshi Holdings Ltd.a,b | 892,960 | 6,388,390 | |||
J. Front Retailing Co. Ltd. | 1,071,000 | 3,294,711 | |||
Lawson Inc. | 186,200 | 8,087,792 | |||
Marui Group Co. Ltd. | 651,700 | 2,784,103 | |||
Nitori Co. Ltd. | 93,100 | 4,938,311 |
SCHEDULEOF INVESTMENTS | 7 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI JAPAN INDEX FUND
February 28, 2009
Security | Shares | Value | |||
Seven & I Holdings Co. Ltd. | 2,141,380 | $ | 48,038,521 | ||
Shimamura Co. Ltd. | 47,700 | 2,476,529 | |||
Takashimaya Co. Ltd. | 931,000 | 4,852,675 | |||
UNY Co. Ltd. | 931,000 | 6,917,441 | |||
USS Co. Ltd. | 74,480 | 3,021,980 | |||
Yamada Denki Co. Ltd. | 214,130 | 7,878,461 | |||
128,929,158 | |||||
SEMICONDUCTORS – 0.87% | |||||
Elpida Memory Inc.a,b | 279,300 | 1,687,018 | |||
NEC Electronics Corp.b | 93,100 | 469,092 | |||
Rohm Co. Ltd. | 279,700 | 13,521,192 | |||
Shinko Electric Industries Co. Ltd.a | 186,200 | 1,729,836 | |||
Sumco Corp. | 279,300 | 3,531,035 | |||
Tokyo Electron Ltd. | 465,552 | 15,891,907 | |||
36,830,080 | |||||
SHIPBUILDING – 0.06% | |||||
Mitsui Engineering & Shipbuilding Co. Ltd. | 1,862,000 | 2,740,334 | |||
2,740,334 | |||||
SOFTWARE – 0.27% | |||||
Konami Corp. | 280,100 | 4,013,493 | |||
Nomura Research Institute Ltd. | 186,200 | 2,959,180 | |||
Oracle Corp. | 93,100 | 2,930,635 | |||
Square Enix Holdings Co. Ltd. | 93,100 | 1,665,134 | |||
11,568,442 | |||||
STORAGE & WAREHOUSING – 0.06% | |||||
Mitsubishi Logistics Corp. | 319,000 | 2,575,604 | |||
2,575,604 | |||||
TELECOMMUNICATIONS – 4.12% | |||||
Hikari Tsushin Inc. | 93,100 | 1,520,505 | |||
KDDI Corp. | 7,448 | 39,354,244 | |||
Nippon Telegraph and Telephone Corp. | 1,401,000 | 60,853,901 | |||
NTT Data Corp. | 2,793 | 7,010,688 | |||
NTT DoCoMo Inc. | 41,895 | 65,896,474 | |||
174,635,812 | |||||
TEXTILES – 0.82% | |||||
Kuraray Co. Ltd. | 931,000 | 6,926,956 | |||
Mitsubishi Rayon Co. Ltd. | 931,000 | 1,712,709 | |||
Nisshinbo Industries Inc. | 931,000 | 6,746,170 |
Security | Shares | Value | |||
Teijin Ltd. | 2,793,000 | $ | 4,909,766 | ||
Toray Industries Inc.a | 3,724,000 | 14,272,574 | |||
34,568,175 | |||||
TOYS, GAMES & HOBBIES – 1.92% | |||||
Nintendo Co. Ltd. | 279,300 | 81,325,127 | |||
81,325,127 | |||||
TRANSPORTATION – 5.35% | |||||
Central Japan Railway Co. | 4,552 | 27,680,924 | |||
East Japan Railway Co. | 934,000 | 55,842,403 | |||
Hankyu Hanshin Holdings Inc. | 2,798,800 | 12,929,200 | |||
Kawasaki Kisen Kaisha Ltd. | 1,862,000 | 5,956,421 | |||
Keihin Electric Express Railway Co. Ltd.a | 935,000 | 6,593,592 | |||
Keio Corp. | 1,862,000 | 9,705,350 | |||
Kintetsu Corp.a | 4,659,000 | 18,903,603 | |||
Mitsui O.S.K. Lines Ltd. | 2,793,000 | 14,443,845 | |||
Nippon Express Co. Ltd. | 1,862,000 | 5,404,548 | |||
Nippon Yusen Kabushiki Kaisha | 2,793,000 | 11,703,511 | |||
Odakyu Electric Railway Co. Ltd. | 931,000 | 6,888,896 | |||
Tobu Railway Co. Ltd. | 2,793,000 | 13,987,122 | |||
Tokyu Corp. | 2,793,000 | 10,904,246 | |||
West Japan Railway Co. | 4,655 | 16,556,186 | |||
Yamato Holdings Co. Ltd. | 931,000 | 9,172,507 | |||
226,672,354 | |||||
VENTURE CAPITAL – 0.03% | |||||
JAFCO Co. Ltd. | 93,100 | 1,381,585 | |||
1,381,585 | |||||
TOTAL COMMON STOCKS | 4,230,465,447 | ||||
SHORT-TERM INVESTMENTS – 3.84% | |||||
MONEY MARKET FUNDS – 3.84% | |||||
Barclays Global Investors Funds | 138,925,053 | 138,925,053 | |||
Barclays Global Investors Funds | 23,224,198 | 23,224,198 |
8 | 2009 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI JAPAN INDEX FUND
February 28, 2009
Security | Shares | Value | |||
Barclays Global Investors Funds | 604,158 | $ 604,158 | |||
�� | |||||
162,753,409 | |||||
TOTAL SHORT-TERM INVESTMENTS |
| ||||
(Cost: $162,753,409) | 162,753,409 | ||||
TOTAL INVESTMENTS IN | |||||
(Cost: $7,355,881,538) | 4,393,218,856 | ||||
Other Assets, Less Liabilities – (3.62)% | (153,594,830 | ) | |||
NET ASSETS – 100.00% | $4,239,624,026 | ||||
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 | All or a portion of 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 28, 2009
iShares MSCI Japan Index Fund
| ||||
ASSETS | ||||
Investments, at cost: | ||||
Unaffiliated issuers | $ | 7,193,128,129 | ||
Affiliated issuers (Note 2) | 162,753,409 | |||
Total cost of investments | $ | 7,355,881,538 | ||
Investments in securities, at fair value (including securities on loana) (Note 1): | ||||
Unaffiliated issuers | $ | 4,230,465,447 | ||
Affiliated issuers (Note 2) | 162,753,409 | |||
Total fair value of investments | 4,393,218,856 | |||
Foreign currency, at valueb | 1,306,357 | |||
Receivables: | ||||
Investment securities sold | 3,785,576 | |||
Dividends and interest | 6,991,556 | |||
Total Assets | 4,405,302,345 | |||
LIABILITIES | ||||
Payables: | ||||
Collateral for securities on loan (Note 5) | 162,149,251 | |||
Capital shares redeemed | 1,443,234 | |||
Investment advisory fees (Note 2) | 2,085,834 | |||
Total Liabilities | 165,678,319 | |||
NET ASSETS | $ | 4,239,624,026 | ||
Net assets consist of: | ||||
Paid-in capital | $ | 7,744,540,060 | ||
Distributions in excess of net investment income | (4,921,237 | ) | ||
Accumulated net realized loss | (536,895,904 | ) | ||
Net unrealized depreciation on investments and translation of assets and liabilities in foreign currencies | (2,963,098,893 | ) | ||
NET ASSETS | $ | 4,239,624,026 | ||
Shares outstandingc | 558,600,000 | |||
Net asset value per share | $ | 7.59 | ||
a | Securities on loan with market value of $152,870,745. See Note 5. |
b | Cost of foreign currency: $1,339,597. |
c | $0.001 par value, number of shares authorized: 2,124,600,000. |
See notes to financial statements.
10 | 2009 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Statement of Operations (Unaudited)
iSHARES®, INC.
Six months ended February 28, 2009
iShares MSCI
| ||||
NET INVESTMENT INCOME | ||||
Dividends from unaffiliated issuersa | $ | 59,996,132 | ||
Interest from affiliated issuers (Note 2) | 3,406 | |||
Securities lending income from affiliated issuers (Note 2) | 1,107,027 | |||
Total investment income | 61,106,565 | |||
EXPENSES | ||||
Investment advisory fees (Note 2) | 15,696,985 | |||
Total expenses | 15,696,985 | |||
Net investment income | 45,409,580 | |||
NET REALIZED AND UNREALIZED GAIN (LOSS) | ||||
Net realized gain (loss) from: | ||||
Investments in unaffiliated issuers | (93,326,346 | ) | ||
In-kind redemptions | (65,309,250 | ) | ||
Foreign currency transactions | 8,022,729 | |||
Net realized loss | (150,612,867 | ) | ||
Net change in unrealized appreciation (depreciation) on: | ||||
Investments | (2,352,317,776 | ) | ||
Translation of assets and liabilities in foreign currencies | (458,088 | ) | ||
Net change in unrealized appreciation (depreciation) | (2,352,775,864 | ) | ||
Net realized and unrealized loss | (2,503,388,731 | ) | ||
NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS | $ | (2,457,979,151 | ) | |
a | Net of foreign withholding tax of $4,488,401. |
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 28, 2009 (Unaudited) | Year ended August 31, 2008 | |||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||
OPERATIONS: | ||||||||
Net investment income | $ | 45,409,580 | $ | 101,126,035 | ||||
Net realized gain (loss) | (150,612,867 | ) | 632,241,422 | |||||
Net change in unrealized appreciation (depreciation) | (2,352,775,864 | ) | (2,458,735,947 | ) | ||||
Net decrease in net assets resulting from operations | (2,457,979,151 | ) | (1,725,368,490 | ) | ||||
DISTRIBUTIONS TO SHAREHOLDERS: | ||||||||
From net investment income | (45,531,514 | ) | (145,335,547 | ) | ||||
Total distributions to shareholders | (45,531,514 | ) | (145,335,547 | ) | ||||
CAPITAL SHARE TRANSACTIONS: | ||||||||
Proceeds from shares sold | 852,414,599 | 1,033,469,389 | ||||||
Cost of shares redeemed | (1,608,816,226 | ) | (3,443,234,963 | ) | ||||
Net decrease in net assets from capital share transactions | (756,401,627 | ) | (2,409,765,574 | ) | ||||
DECREASE IN NET ASSETS | (3,259,912,292 | ) | (4,280,469,611 | ) | ||||
NET ASSETS | ||||||||
Beginning of period | 7,499,536,318 | 11,780,005,929 | ||||||
End of period | $ | 4,239,624,026 | $ | 7,499,536,318 | ||||
Distributions in excess of net investment income included in net assets at end of period | $ | (4,921,237 | ) | $ | (4,799,303 | ) | ||
SHARES ISSUED AND REDEEMED | ||||||||
Shares sold | 88,200,000 | 79,200,000 | ||||||
Shares redeemed | (175,200,000 | ) | (270,600,000 | ) | ||||
Net decrease in shares outstanding | (87,000,000 | ) | (191,400,000 | ) | ||||
See notes to financial statements.
12 | 2009 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
iSHARES®, INC.
(For a share outstanding throughout each period)
iShares MSCI Japan Index Fund | ||||||||||||||||||||||||
Six months Feb. 28, 2009 | Year ended Aug. 31, 2008 | Year ended Aug. 31, 2007 | Year ended Aug. 31, 2006 | Year ended Aug. 31, 2005 | Year ended Aug. 31, 2004 | |||||||||||||||||||
Net asset value, beginning of period | $ | 11.62 | $ | 14.07 | $ | 13.80 | $ | 10.99 | $ | 9.89 | $ | 8.29 | ||||||||||||
Income from investment operations: | ||||||||||||||||||||||||
Net investment incomea | 0.07 | 0.14 | 0.10 | 0.06 | 0.06 | 0.03 | ||||||||||||||||||
Net realized and unrealized | (4.03 | ) | (2.39 | ) | 0.27 | 2.81 | 1.08 | 1.57 | ||||||||||||||||
Total from investment operations | (3.96 | ) | (2.25 | ) | 0.37 | 2.87 | 1.14 | 1.60 | ||||||||||||||||
Less distributions from: | ||||||||||||||||||||||||
Net investment income | (0.07 | ) | (0.20 | ) | (0.10 | ) | (0.06 | ) | (0.04 | ) | (0.00 | )c | ||||||||||||
Total distributions | (0.07 | ) | (0.20 | ) | (0.10 | ) | (0.06 | ) | (0.04 | ) | (0.00 | )c | ||||||||||||
Net asset value, end of period | $ | 7.59 | $ | 11.62 | $ | 14.07 | $ | 13.80 | $ | 10.99 | $ | 9.89 | ||||||||||||
Total return | (34.15 | )%d | (16.13 | )% | 2.68 | % | 26.10 | % | 11.58 | % | 19.32 | % | ||||||||||||
Ratios/Supplemental data: | ||||||||||||||||||||||||
Net assets, end of period (000s) | $ | 4,239,624 | $ | 7,499,536 | $ | 11,780,006 | $ | 13,724,590 | $ | 7,248,107 | $ | 5,863,332 | ||||||||||||
Ratio of expenses to average net assetse | 0.56 | % | 0.52 | % | 0.52 | % | 0.54 | % | 0.57 | % | 0.64 | %f | ||||||||||||
Ratio of net investment income to average net assetse | 1.61 | % | 1.11 | % | 0.68 | % | 0.48 | % | 0.59 | % | 0.28 | % | ||||||||||||
Portfolio turnover rateg | 1 | % | 4 | % | 3 | % | 8 | % | 6 | % | 5 | % |
a | Based on average shares outstanding throughout each period. |
b | The amounts reported may not accord with the change in aggregate gains and losses in securities due to the timing of capital share transactions. |
c | Rounds to less than $0.01. |
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”). 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 valued pursuant to the pricing policy and procedures approved by the Board of Directors of the Company (the “Board”). Effective September 1, 2008, the Fund adopted Financial Accounting Standards Board (“FASB”) Statement of Financial Accounting Standards No. 157 (“FAS 157”), “Fair Value Measurements.” This standard establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. Inputs may be based on independent market data (“observable inputs”) or they may be internally developed (“unobservable inputs”). The hierarchy gives the highest priority to
14 | 2009 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
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Notes to Financial Statements (Unaudited) (Continued)
iSHARES®, INC.
unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy under FAS 157 are as follows:
• | Level 1 – Inputs that reflect unadjusted quoted prices in active markets for identical assets or liabilities that the Fund has the ability to access at the measurement date (a “Level 1 Price”); |
• | Level 2 – Inputs other than quoted prices included within Level 1 that are observable for the asset or liability either directly or indirectly, including quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not considered to be active, inputs other than quoted prices that are observable for the asset or liability, and inputs that are derived principally from or corroborated by observable market data by correlation or other means (a “Level 2 Price”); |
• | Level 3 – Inputs that are unobservable for the asset or liability (a “Level 3 Price”). |
Inputs are used in applying the various valuation techniques and broadly refer to the assumptions that market participants use to make valuation decisions, including assumptions about risk. Inputs may include price information, volatility statistics, specific and broad credit data, liquidity statistics, and other factors. The level of a value determined for a financial instrument within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement in its entirety. However, the determination of what constitutes an “observable” input may require significant judgment by the Fund. The Fund considers observable inputs to be market data that is readily available, regularly distributed or updated, reliable and verifiable, and provided by independent sources that are actively involved in the relevant market. The categorization of a value determined for a financial instrument within the hierarchy is based upon the pricing transparency of the instrument and does not necessarily correspond to the Fund’s perceived risk of that instrument.
Investments whose values are based on quoted market prices in active markets, and whose values are therefore classified as Level 1 Prices, include active listed equities and certain U.S. government securities. The Fund does not adjust the quoted price for such instruments, even in situations where the Fund holds a large position and a sale could reasonably impact the quoted price.
Investments that trade in markets that are not considered to be active, but whose values are based on quoted market prices, dealer quotations or valuations provided by alternative pricing sources supported by observable inputs are classified as Level 2 Prices. These generally include certain U.S. government and sovereign obligations, most government agency securities, investment-grade corporate bonds, certain mortgage products, less liquid listed equities, and state, municipal and provincial obligations. As investments whose values are classified as Level 2 Prices include positions that are not traded in active markets and/or are subject to transfer restrictions, valuations may be adjusted to reflect illiquidity and/or non-transferability, which are generally based on available market information.
Investments whose values are classified as Level 3 Prices have significant unobservable inputs, as they may trade infrequently or not at all. Investments whose values are classified as Level 3 Prices may include unlisted securities related to corporate actions, securities whose trading have been suspended or which have been de-listed from their primary trading exchange, less liquid corporate debt securities (including distressed debt instruments), collateralized debt obligations, and less liquid mortgage securities (backed by either commercial or residential real estate). When observable prices are not available for these securities, the Fund uses one or more valuation techniques (e.g., the market approach or the income approach) for which sufficient and reliable data is available. Within Level 3 of the fair value hierarchy, the use of the market approach generally consists of using comparable market transactions, while the use of the income approach generally consists of the net present value of estimated future cash flows, adjusted as appropriate for liquidity, credit, market and/or other risk factors.
The inputs used by the Fund in estimating the value of Level 3 Prices may include the original transaction price, quoted prices for similar securities or assets in active markets, completed or pending third-party transactions in the underlying investment or comparable issuers, and changes in financial ratios or cash flows. Level 3 Prices may also be adjusted to reflect illiquidity and/or non-transferability, with the
NOTESTO FINANCIAL STATEMENTS | 15 |
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Notes to Financial Statements (Unaudited) (Continued)
iSHARES®, INC.
amount of such discount estimated by the Fund in the absence of market information. The fair value measurement of Level 3 Prices does not include transaction costs that may have been capitalized as part of the security’s cost basis. Assumptions used by the Fund due to the lack of observable inputs may significantly impact the resulting fair value and therefore the Fund’s results of operations.
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 underlying index, which in turn could result in a difference between the Fund’s performance and the performance of the Fund’s underlying index.
As of February 28, 2009, the value of each of the Fund’s investments was classified as a Level 1 price.
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 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 28, 2009.
16 | 2009 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
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Notes to Financial Statements (Unaudited) (Continued)
iSHARES®, INC.
As of August 31, 2008, 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, $27,817,841 and $44,443,527 expiring in 2009, 2010, 2011, 2012, 2013, 2014, 2015 and 2016, 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 28, 2009, the cost of investments for federal income tax purposes was $7,408,264,859. Net unrealized depreciation was $3,015,046,003, of which $3,015,046,003 represented gross unrealized depreciation on securities and $0 represented gross unrealized appreciation on securities.
Management has reviewed the tax positions as of February 28, 2009, inclusive of the prior three open tax return years, and has determined that no provision for income tax is required in 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 certain other iShares Funds, as follows:
Investment Advisory Fee | Aggregate Average Daily Net Assets | |
0.59% | First $7 billion | |
0.54 | Over $7 billion, up to and including $11 billion | |
0.49 | Over $11 billion, up to and including $24 billion | |
0.44 | Over $24 billion, up to and including $48 billion | |
0.40 | Over $48 billion |
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.
NOTESTO FINANCIAL STATEMENTS | 17 |
Table of Contents
Notes to Financial Statements (Unaudited) (Continued)
iSHARES®, INC.
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 28, 2009, BGI earned securities lending agent fees of $1,107,027.
Cross trades for the six months ended February 28, 2009 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 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. These money market funds seek to achieve their investment objectives by investing in high-quality, short-term money market instruments that, at the time of investment, have remaining maturities of 397 calendar days or less from the date of acquisition. 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.
Certain directors and officers of the Company are also officers of BGI and/or BGFA.
3. INVESTMENT PORTFOLIO TRANSACTIONS
Purchases and sales of investments (excluding in-kind transactions and short-term investments) for the six months ended February 28, 2009, aggregated $85,517,701 and $100,440,376, respectively.
In-kind purchases and sales (see Note 4) for the six months ended February 28, 2009, aggregated $825,293,630 and $1,560,985,082, 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.
18 | 2009 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Notes to Financial Statements (Unaudited) (Continued)
iSHARES®, INC.
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 include the risk that the borrower may not provide additional collateral when required or may not return the securities when due. Any securities lending cash collateral may be reinvested in certain short-term instruments either directly on behalf of the Fund or through one or more joint accounts or money market funds, including those managed by BGFA; such reinvestments are subject to investment risk.
As of February 28, 2009, the Fund had loaned securities which were collateralized by cash. The cash collateral received was invested in money market funds managed by BGFA. The market value of the securities on loan as of February 28, 2009 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. SUBSEQUENT EVENT
On April 9, 2009, Barclays Global Investors UK Holdings Limited (“Barclays”), the parent company of BGI and BGFA, entered into an agreement to sell its interest in BGFA and certain affiliated companies to Blue Sparkle, L.P., a Cayman Islands limited partnership (the “Transaction”). Blue Sparkle, L.P. is an investment vehicle for private equity funds affiliated with CVC Capital Partners Group SICAV-FIS S.A., a private equity and investment advisory firm. The Transaction is subject to certain regulatory approvals, as well as other conditions to closing.
Under the 1940 Act, completion of the Transaction will cause the automatic termination of the Fund’s current investment advisory agreement with BGFA. In order for the management of the Fund to continue uninterrupted, the Board will be asked to approve a new investment advisory agreement with BGFA. If approved by the Board, the new investment advisory agreement will be submitted to the Fund’s shareholders for their approval.
NOTESTO FINANCIAL STATEMENTS | 19 |
Table of Contents
Notes:
20 | 2009 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 Capped (FIO)
iShares FTSE NAREIT Mortgage Plus Capped (REM)
iShares FTSE NAREIT Real Estate 50 (FTY)
iShares FTSE NAREIT Residential Plus Capped (REZ)
iShares FTSE NAREIT Retail Capped (RTL)
iShares Global Index Funds
iShares S&P Global 100 (IOO)
iShares S&P Global Clean Energy (ICLN)
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 Nuclear Energy (NUCL)
iShares S&P Global Technology Sector (IXN)
iShares S&P Global Telecommunications Sector (IXP)
iShares S&P Global Timber & Forestry (WOOD)
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 China (HK Listed) (FCHI)
iShares FTSE/Xinhua China 25 (FXI)
iShares MSCI Australia (EWA)
iShares MSCI Austria Investable Market (EWO)
iShares MSCI Belgium Investable Market (EWK)
iShares MSCI Brazil (EWZ)
iShares MSCI Canada (EWC)
iShares MSCI Chile Investable Market (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 Investable Market (EWW)
iShares MSCI Netherlands Investable Market (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 Barclays Aggregate (AGG)
iShares Barclays MBS (MBB)
iShares Barclays Short Treasury (SHV)
iShares Barclays 1-3 Year Treasury (SHY)
iShares Barclays 3-7 Year Treasury (IEI)
iShares Barclays 7-10 Year Treasury (IEF)
iShares Barclays 10-20 Year Treasury (TLH)
iShares Barclays 20+ Year Treasury (TLT)
iShares Barclays TIPS (TIP)
iShares Barclays Agency (AGZ)
iShares Barclays Credit (CFT)
iShares Barclays 1-3 Year Credit (CSJ)
iShares Barclays Intermediate Credit (CIU)
iShares iBoxx $ Investment Grade Corporate (LQD)
iShares iBoxx $ High Yield Corporate (HYG)
iShares Barclays Government/Credit (GBF)
iShares Barclays Intermediate Government/Credit (GVI)
iShares S&P National Municipal (MUB)
iShares S&P Short Term National Municipal (SUB)
iShares S&P California Municipal (CMF)
iShares S&P New York Municipal (NYF)
iShares JPMorgan USD Emerging Markets (EMB)
iShares S&P/Citigroup International Treasury (IGOV)
iShares S&P/Citigroup 1-3 Year International Treasury (ISHG)
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 FAMILYOF FUNDS | 21 |
Table of Contents
The iShares® Family of Funds (Continued)
iShares International Index Funds
iShares FTSE Developed Small Cap ex-North America (IFSM)
iShares FTSE EPRA/NAREIT Developed Asia (IFAS)
iShares FTSE EPRA/NAREIT Developed Europe (IFEU)
iShares FTSE EPRA/NAREIT Developed Real Estate ex-U.S. (IFGL)
iShares FTSE EPRA/NAREIT North America (IFNA)
iShares MSCI ACWI (ACWI)
iShares MSCI ACWI ex US (ACWX)
iShares MSCI All Country Asia ex Japan (AAXJ)
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 Developed ex-U.S. Property (WPS)
iShares S&P Europe 350 (IEV)
iShares S&P Latin America 40 (ILF)
iShares Morningstar Index Funds
iShares Morningstar Large Core (JKD)
iShares Morningstar Large Growth (JKE)
iShares Morningstar Large Value (JKF)
iShares Morningstar Mid Core (JKG)
iShares Morningstar Mid Growth (JKH)
iShares Morningstar Mid Value (JKI)
iShares Morningstar Small Core (JKJ)
iShares Morningstar Small Growth (JKK)
iShares Morningstar Small Value (JKL)
iShares NYSE Index Funds
iShares NYSE Composite (NYC)
iShares NYSE 100 (NY)
iShares S&P Allocation Funds
iShares S&P Conservative (AOK)
iShares S&P Moderate (AOM)
iShares S&P Growth (AOR)
iShares S&P Aggressive (AOA)
iShares S&P Target Date Index Funds
iShares S&P Target Date Retirement Income (TGR)
iShares S&P Target Date 2010 (TZD)
iShares S&P Target Date 2015 (TZE)
iShares S&P Target Date 2020 (TZG)
iShares S&P Target Date 2025 (TZI)
iShares S&P Target Date 2030 (TZL)
iShares S&P Target Date 2035 (TZO)
iShares S&P Target Date 2040 (TZV)
iShares® is a registered trademark of Barclays Global Investors, N.A. (“BGI”). The iShares Funds are not 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, nor rare they sponsored or endorsed by Barclays Capital. 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 except Barclays Capital, which is an affiliate of BGI. 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/Residential/Retail/Mortgage REITs or 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 2009 Semi-Annual Report.
iS-0569-0409
22 | 2009 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
For more information:
WWW.iSHARES.COM
1-800-iShares (1-800-474-2737)
The iShares Funds are distributed by SEI Investments Distribution Co. (SEI). Barclays Global Fund Advisors (BGFA) serves as an advisor to the iShares Funds BGFA is a subsidiary of Barclays Global Investors. N.A. (BGI). Neither of which is affiliated with SEI.
The iShares funds are not sponsored, endorsed, issued, sold or promoted by MSCI Inc., nor does the company 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 company listed above.
©2009 Barclays Global Investors. All rights reserved. iShares® is a registered trademark of Barclays Global Investors, N.A. All other trademarks, servicemarks or registered trademarks are the property of their respective owners.
Investing involves risk, including possible loss of principal.
A description of the policies that the Fund uses to determine how to vote proxies relating to portfolio securities and information about how the Fund voted proxies relating to portfolio securities during the most recent twelve month period June 30 is available without charge, upon request, by calling toll-free 1-800-474-2737: on the Fund’s website at www. iShares.com: and on the U.S. Securities and Exchange Commission (SEC) website at www.sec.gov.
The Fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N Q. The Fund’s Form N Q is available on the SEC’s website or may be reviewed and copied at the SEC’s Public Reference Room in Washington D.C. information the operation of the Public Reference Room may be obtained by calling 1-800 SEC 0330. The Fund also discloses its complete scheduled of portfolio holdings on a monthly basis on the Fund’s website.
This report is intended for the Fund’s shareholders. It may not be distributed to prospective investors unless it is preceded or accompanied by the current prospectus. BARCLAYS GLOBAL INVESTORS LET’S BUILD A BETTER INVESTMENT WORLD.* BGI-SAR-81-0209
Table of Contents
2009 SEMI-ANNUAL REPORT TO SHAREHOLDERS
iSHARES® MSCI SERIES
FEBRUARY 28, 2009
Would you prefer to receive materials like this electronically? See inside cover for details.
ishares MSCI Emerging Markets Index Fund
iSHARES®
Table of Contents
iShares® Dear iShares Shareholder: Electronic delivery is the easiest most convenient way to receive reporting on your iShares holdings. In addition, it’s a way we can all care for our environment To that end, we are pleased to offer shareholder reports and prospectuses online. To sign up for electronic delivery, please follow these simple steps: 1. Go to www.icsdelivery.com. 2. From the main page, select the first letter of your brokerage firm’s name. 3. Select your brokerage institution from the list that follows. If your brokerage firm is not listed, electronic delivery may not be available. Please contact your brokerage firm or financial adviser 4. Fill out the appropriate information and provide the e-mail address where you would like your information sent. Your information and email address will be kept confidential and only used to deliver documents to you. If at any time you are not satisfied, you can cancel electronic delivery at www.icsdelivery.com and once again receive physical delivery of your materials. If you have any questions, please contact your brokerage firm or financial adviser Once you have enrolled, you will no longer receive prospectuses and shareholder reports in the mail. Instead, you will receive e-mail notifications announcing that the shareholder report or prospectus has been posted on the iShares website at www.iShares.com.
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Table of Contents
iSHARES® MSCI EMERGING MARKETS INDEX FUND
Performance as of February 28, 2009
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 28, 2009, the total return for the Fund was (45.83)%, while the total return for the Index was (47.28)%.
Average Annual Total Returns | ||||||||||||||||
Year Ended 2/28/09 | Five Years Ended 2/28/09 | Inception to 2/28/09 | ||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||
(53.52)% | (53.20)% | (56.17)% | 3.73% | 3.41% | 3.36% | 13.05% | 12.92% | 12.49% | ||||||||
Cumulative Total Returns | ||||||||||||||||
Year Ended 2/28/09 | Five Years Ended 2/28/09 | Inception to 2/28/09 | ||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||
(53.52)% | (53.20)% | (56.17)% | 20.11% | 18.24% | 17.96% | 106.15% | 104.73% | 100.28% |
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 primary 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 after the Fund’s inception, for the period from inception to the first day of secondary market trading in shares of the Fund (4/11/03), the NAV of the Fund is used as a proxy for the Market 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 2/28/09 | |||
Sector/Investment Type | Percentage of Net Assets | ||
Financial | 20.00 | % | |
Communications | 16.61 | ||
Energy | 15.15 | ||
Basic Materials | 13.51 | ||
Technology | 12.52 | ||
Consumer Non-Cyclical | 6.36 | ||
Industrial | 5.84 | ||
Utilities | 4.65 | ||
Consumer Cyclical | 3.06 | ||
Diversified | 1.55 | ||
Exchange-Traded Funds | 0.34 | ||
Short-Term and Other Net Assets | 0.41 | ||
TOTAL | 100.00 | % | |
TEN LARGEST FUND HOLDINGS As of 2/28/09 | |||
Security | Percentage of Net Assets | ||
Taiwan Semiconductor Manufacturing Co. Ltd. SP ADR (Taiwan) | 3.90 | % | |
Samsung Electronics Co. Ltd. GDR Reg S (South Korea) | 3.52 | ||
Chunghwa Telecom Co. Ltd. ADR (Taiwan) | 3.34 | ||
China Mobile Ltd. (China) | 3.10 | ||
Petroleo Brasileiro SA Preferred SP ADR (Brazil) | 2.55 | ||
Petroleo Brasileiro SA ADR (Brazil) | 2.39 | ||
Teva Pharmaceutical Industries Ltd. (Israel) | 2.26 | ||
POSCO ADR (South Korea) | 2.12 | ||
OAO Gazprom SP ADR (Russia) | 1.97 | ||
Sociedad Quimica y Minera de | 1.67 | ||
TOTAL | 26.82 | % | |
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, 2008 to February 28, 2009.
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 (9/1/08) | Ending Account Value (2/28/09) | Annualized Expense Ratio | Expenses Paid During Perioda (9/1/08 to 2/28/09) | ||||||
Actual | $1,000.00 | $ 541.70 | 0.73 | % | $2.79 | ||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,021.20 | 0.73 | 3.66 |
a | Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (181 days) and divided by the number of days in the year (365 days). |
2 | 2009 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited)
iSHARES® MSCI EMERGING MARKETS INDEX FUND
February 28, 2009
Security | Shares | Value | |||
COMMON STOCKS – 89.94% | |||||
ARGENTINA – 0.10% | |||||
Petrobras Energia Participaciones SA SP ADR | 3,339,752 | $ | 16,765,555 | ||
16,765,555 | |||||
BRAZIL – 5.36% | |||||
Centrais Eletricas Brasileiras SA SP ADR | 938,808 | 10,139,126 | |||
Companhia de Saneamento Basico do Estado de Sao Paulo ADR | 696,592 | 13,876,113 | |||
Companhia Siderurgica Nacional SP ADRa | 4,294,472 | 56,729,975 | |||
Companhia Vale do Rio Doce ADRa | 17,678,232 | 227,872,410 | |||
CPFL Energia SA ADRa | 353,600 | 13,861,120 | |||
Empresa Brasileira de Aeronautica SA ADR | 4,354,584 | 47,073,053 | |||
Gafisa SA ADRa | 1,469,451 | 12,137,665 | |||
Perdigao SA ADRa | 263,843 | 6,416,662 | |||
Petroleo Brasileiro SA ADR | 14,647,880 | 406,185,712 | |||
TAM SA SP ADRa | 1,883,622 | 12,544,923 | |||
Tim Participacoes SA ADRa | 168,175 | 2,383,040 | |||
Unibanco - Uniao de Bancos Brasileiros SA SP ADR | 1,703,592 | 89,148,969 | |||
Vivo Participacoes SA ADRa | 884,000 | 14,329,640 | |||
912,698,408 | |||||
CHILE – 3.42% | |||||
Banco Santander Chile SA ADRa | 3,364,504 | 117,522,125 | |||
Empresa Nacional de Electricidad SA SP ADR | 65,416 | 2,371,984 | |||
Enersis SA SP ADR | 9,833,616 | 141,800,743 | |||
LAN Airlines SA SP ADRa | 4,484,553 | 36,997,562 | |||
Sociedad Quimica y Minera de Chile SA Series B SP ADRa | 9,854,832 | 284,016,258 | |||
582,708,672 | |||||
CHINA – 18.14% | |||||
Agile Property Holdings Ltd. | 24,752,000 | 8,394,403 | |||
Air China Ltd. Class Ha | 45,968,000 | 12,507,251 |
Security | Shares | Value | |||
Aluminum Corp. of China Ltd. Class Ha | 42,432,000 | $ | 20,245,058 | ||
Angang New Steel Co. Ltd. Class Ha | 24,753,320 | 20,971,168 | |||
Anhui Conch Cement Co. Ltd. Class Ha,b | 3,536,000 | 14,955,809 | |||
Bank of China Ltd. Class H | 251,056,000 | 70,251,263 | |||
Bank of Communications Co. Ltd. Class Ha | 83,202,000 | 50,533,394 | |||
Beijing Capital International Airport Co. Ltd. Class Ha | 28,292,000 | 10,579,995 | |||
Beijing Enterprises Holdings Ltd.a | 7,072,000 | 27,768,559 | |||
Belle International Holdings Ltd.a | 26,534,000 | 11,325,425 | |||
Chaoda Modern Agriculture (Holdings) Ltd.a | 10,961,942 | 6,360,977 | |||
China Agri-Industries Holdings Ltd.b | 24,752,000 | 11,267,013 | |||
China CITIC Bank Class H | 24,752,000 | 8,968,926 | |||
China Coal Energy Co. Class Ha | 22,984,000 | 14,255,895 | |||
China Communications Construction Co. Ltd. Class Ha | 47,736,000 | 46,536,275 | |||
China Construction Bank Class Ha | 341,616,000 | 174,003,948 | |||
China COSCO Holdings Co. Ltd. Class Ha | 24,752,000 | 13,533,183 | |||
China Everbright Ltd.a | 39,124,000 | 43,892,094 | |||
China High Speed Transmission Equipment Group Co. Ltd.a | 3,536,000 | 4,614,414 | |||
China Huiyuan Juice Group Ltd.a | 4,420,000 | 5,129,660 | |||
China Life Insurance Co. Ltd. Class Ha | 90,168,000 | 253,473,598 | |||
China Mengniu Dairy Co. Ltd.a | 12,376,000 | 15,480,174 | |||
China Merchants Bank Co. Ltd. Class Ha | 28,288,000 | 41,949,219 |
SCHEDULEOF INVESTMENTS | 3 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI EMERGING MARKETS INDEX FUND
February 28, 2009
Security | Shares | Value | |||
China Merchants Holdings (International) Co. Ltd.a | 14,144,000 | $ | 23,455,085 | ||
China Mobile Ltd.a | 60,112,000 | 527,101,059 | |||
China National Building Material Co. Ltd. Class Ha | 17,680,000 | 20,518,640 | |||
China Overseas Land & Investment Ltd.a | 51,444,960 | 68,594,164 | |||
China Petroleum & Chemical Corp. Class H | 219,232,000 | 114,494,011 | |||
China Railway Construction Corp. Class Ha,b | 16,796,000 | 20,575,636 | |||
China Railway Group Ltd. Class Ha,b | 35,360,000 | 19,606,700 | |||
China Resources Enterprise Ltd.a | 24,766,000 | 35,193,403 | |||
China Resources Land Ltd.a | 53,040,000 | 57,794,169 | |||
China Resources Power Holdings Co. Ltd.a | 17,680,000 | 33,285,794 | |||
China Shenhua Energy Co. Ltd. Class H | 18,564,000 | 36,865,156 | |||
China Shipping Container Lines Co. Ltd. Class Ha | 83,096,000 | 11,679,666 | |||
China Shipping Development Co. Ltd. Class Ha | 31,842,000 | 25,129,020 | |||
China Telecom Corp. Ltd. Class Ha | 49,504,000 | 16,916,479 | |||
China Travel International Investment Hong Kong Ltd.a | 159,120,951 | 22,570,638 | |||
China Unicom (Hong Kong) Ltd. | 42,432,000 | 38,465,610 | |||
China Yurun Food Group Ltd.a | 3,536,000 | 4,185,803 | |||
CITIC Pacific Ltd.a | 19,888,000 | 20,798,679 | |||
CNOOC Ltd.a | 203,320,000 | 178,284,182 | |||
COSCO Pacific Ltd.a | 10,608,000 | 7,797,083 | |||
Datang International Power Generation Co. Ltd. Class Ha | 28,304,000 | 11,971,414 | |||
Denway Motors Ltd.a | 67,184,000 | 20,185,782 |
Security | Shares | Value | |||
Dongfang Electric Corp. Ltd. Class H | 7,072,000 | $ | 12,949,542 | ||
Dongfeng Motor Group Co. Ltd. Class H | 28,288,000 | 10,505,544 | |||
Fosun International Ltd. | 7,072,000 | 2,079,222 | |||
GOME Electrical Appliances Holdings Ltd.a | 67,776,000 | 9,788,536 | |||
Guangdong Investment Ltd. | 24,756,110 | 10,406,958 | |||
Guangshen Railway Co. Ltd. Class Ha | 113,222,363 | 33,580,244 | |||
Guangzhou R&F Properties Co. Ltd.a | 1,414,400 | 1,076,089 | |||
Harbin Power Equipment Co. Ltd. Class Ha | 10,608,000 | 6,237,666 | |||
Hengan International Group Co. Ltd. | 3,536,000 | 12,858,348 | |||
Huaneng Power International Inc. Class Ha | 38,896,000 | 25,730,374 | |||
Industrial and Commercial Bank of China Ltd. Class Ha | 461,448,000 | 189,222,894 | |||
Jiangsu Expressway Co. Ltd. Class H | 10,614,000 | 7,103,465 | |||
Jiangxi Copper Co. Ltd. Class Ha | 35,378,000 | 26,003,508 | |||
Lenovo Group Ltd.a | 74,256,000 | 13,788,526 | |||
Li Ning Co. Ltd.a | 7,072,000 | 8,845,814 | |||
Maanshan Iron & Steel Co. Ltd. Class Ha | 49,504,000 | 14,682,226 | |||
Parkson Retail Group Ltd.a | 4,420,000 | 3,602,161 | |||
PetroChina Co. Ltd. Class Ha | 215,696,000 | 153,812,285 | |||
PICC Property and Casualty Co. Ltd. Class Ha,b | 21,216,000 | 9,630,082 | |||
Ping An Insurance (Group) Co. of China Ltd. Class Ha | 19,451,500 | 93,559,033 | |||
Shanghai Industrial Holdings Ltd. | 7,076,000 | 16,241,705 | |||
Shimao Property Holdings Ltd. | 10,608,000 | 5,512,675 | |||
Shui On Land Ltd. | 26,520,000 | 6,121,394 | |||
Sinofert Holdings Ltd.a | 58,070,000 | 26,582,999 |
4 | 2009 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI EMERGING MARKETS INDEX FUND
February 28, 2009
Security | Shares | Value | |||
Sino-Ocean Land Holdings Ltd.a | 46,852,000 | $ | 22,837,246 | ||
Sinopec Shanghai Petrochemical Co. Ltd. Class Ha | 42,456,000 | 9,635,528 | |||
Tencent Holdings Ltd.a | 8,840,000 | 51,239,603 | |||
Tingyi (Cayman Islands) Holding Corp.a | 3,536,000 | 3,921,340 | |||
Yanzhou Coal Mining Co. Ltd. Class Ha | 38,896,800 | 22,470,652 | |||
Zhejiang Expressway Co. Ltd. Class Ha | 38,896,000 | 25,529,748 | |||
Zijin Mining Group Co. Ltd. Class Ha | 95,472,000 | 51,337,637 | |||
3,089,358,918 | |||||
COLOMBIA – 0.31% | |||||
Bancolombia SA SP ADR | 3,139,968 | 52,123,469 | |||
52,123,469 | |||||
CZECH REPUBLIC – 1.56% | |||||
Central European Media Enterprises Ltd. Class Ab | 32,660 | 192,530 | |||
CEZ AS | 6,152,993 | 186,516,263 | |||
Komercni Banka ASa | 493,991 | 37,190,435 | |||
Unipetrol AS | 8,125,838 | 41,714,181 | |||
265,613,409 | |||||
EGYPT – 0.48% | |||||
Orascom Construction Industries Co. GDRa | 1,264,425 | 51,095,414 | |||
Orascom Telecom Holding SAE GDRa,c | 1,798,198 | 30,569,366 | |||
81,664,780 | |||||
HUNGARY – 0.93% | |||||
Magyar Telekom Telecommunications PLC | 4,398,784 | 10,193,167 | |||
MOL Hungarian Oil and Gas PLCa | 1,037,816 | 39,129,073 | |||
OTP Bank Rta,b | 4,604,472 | 31,307,188 | |||
Richter Gedeon Rta | 744,328 | 77,269,527 | |||
157,898,955 |
Security | Shares | Value | |||
INDIA – 5.78% | |||||
HDFC Bank Ltd. ADRa | 4,481,880 | $ | 228,575,880 | ||
ICICI Bank Ltd. SP ADRa | 10,178,376 | 126,822,565 | |||
Infosys Technologies Ltd. SP ADRa | 8,414,373 | 203,627,827 | |||
Mahanagar Telephone Nigam Ltd. ADRa | 6,872,700 | 19,243,560 | |||
Reliance Industries Ltd. GDRd | 3,802,968 | 185,394,690 | |||
Satyam Computer Services Ltd. ADRa | 7,257,844 | 9,435,197 | |||
Tata Communications Ltd. ADRa | 9,614,384 | 152,484,130 | |||
Wipro Ltd. ADRa | 10,220,808 | 58,156,398 | |||
983,740,247 | |||||
INDONESIA – 1.43% | |||||
PT Aneka Tambang Tbk | 193,596,000 | 19,391,919 | |||
PT Astra Agro Lestari Tbk | 4,420,000 | 4,740,985 | |||
PT Astra International Tbk | 27,411,000 | 25,855,117 | |||
PT Bank Central Asia Tbk | 159,190,000 | 31,226,753 | |||
PT Bank Danamon | 31,824,487 | 6,973,228 | |||
PT Bank Mandiri Tbk | 79,560,000 | 11,555,459 | |||
PT Bank Rakyat Indonesia Tbk | 71,049,061 | 22,091,632 | |||
PT Bumi Resources Tbk | 209,218,500 | 13,447,266 | |||
PT Indofood Sukses | 22,100,000 | 1,623,372 | |||
PT Indosat Tbk | 1,158,560 | 406,173 | |||
PT International Nickel | 5,331,000 | 967,857 | |||
PT Perusahaan Gas | 167,962,500 | 26,638,459 | |||
PT Semen Gresik | 12,376,000 | 3,615,693 | |||
PT Telekomunikasi | 109,616,500 | 57,644,737 | |||
PT Unilever Indonesia Tbk | 884,000 | 594,007 | |||
PT United Tractors Tbk | 38,183,150 | 17,051,741 | |||
243,824,398 |
SCHEDULEOF INVESTMENTS | 5 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI EMERGING MARKETS INDEX FUND
February 28, 2009
Security | Shares | Value | |||
ISRAEL – 4.54% | |||||
Africa Israel Investments Ltd.a | 432,065 | $ | 3,345,383 | ||
Bank Hapoalim Ltd.b | 18,908,760 | 33,796,592 | |||
Bank Leumi le-Israela | 25,079,080 | 44,643,642 | |||
Check Point Software Technologies Ltd.b | 1,727,336 | 37,949,572 | |||
Discount Investment Corp. Ltd. | 104,312 | 918,372 | |||
Elbit Systems Ltd.a | 1,260,584 | 56,008,388 | |||
Israel Chemicals Ltd.a | 10,728,224 | 84,101,327 | |||
Israel Corp. Ltd. (The)a | 30,056 | 8,692,446 | |||
Israel Discount Bank Ltd. Class Aa | 29,433,664 | 19,807,980 | |||
Koor Industries Ltd.b | 560,669 | 6,338,597 | |||
Makhteshim-Agan Industries Ltd.a | 5,169,632 | 17,457,390 | |||
Mizrahi Tefahot Bank Ltd. | 9,474,712 | 42,507,994 | |||
NICE Systems Ltd.b | 274,040 | 5,584,842 | |||
Teva Pharmaceutical Industries Ltd. | 8,405,072 | 384,389,418 | |||
Teva Pharmaceutical Industries Ltd. SP ADR | 618,800 | 27,586,104 | |||
773,128,047 | |||||
MALAYSIA – 0.40% | |||||
AMMB Holdings Bhd | 9,752,175 | 6,523,370 | |||
Bumiputra-Commerce Holdings Bhd | 2,034,000 | 3,785,462 | |||
Bursa Malaysia Bhd | 2,930,800 | 3,952,529 | |||
Gamuda Bhd | 12,166,000 | 6,497,284 | |||
Genting Bhd | 3,359,400 | 3,135,138 | |||
IGB Corp. Bhd | 4,577,800 | 1,691,594 | |||
IJM Corp. Bhd | 3,701,200 | 3,693,713 | |||
IOI Corp. Bhd | 5,265,000 | 5,254,349 | |||
MMC Corp. Bhd | 3,896,000 | 1,481,688 | |||
Resorts World Bhd | 19,905,500 | 11,865,450 | |||
Sime Darby Bhd | 1,501,673 | 2,288,456 | |||
SP Setia Bhd | 4,821,300 | 4,239,363 | |||
Tenaga Nasional Bhd | 3,152,700 | 5,484,805 | |||
YTL Corp. Bhd | 4,480,400 | 8,398,862 | |||
YTL Power International Bhd | 306,160 | 160,202 | |||
68,452,265 |
Security | Shares | Value | |||
MEXICO – 4.81% | |||||
Alfa SAB de CV Series Aa | 7,276,900 | $ | 10,050,814 | ||
America Movil SAB de CV Series L | 174,678,400 | 225,860,017 | |||
Cemex SAB de CV Series CPOb | 83,681,003 | 45,610,437 | |||
Desarrolladora Homex SAB de CVb | 1,800,300 | 3,798,487 | |||
Empresas ICA SAB de CVb | 12,199,200 | 18,159,891 | |||
Fomento Economico Mexicano SAB de CV BD Units | 32,000,800 | 74,669,913 | |||
Grupo Bimbo SAB de CV Series A | 530,400 | 1,513,354 | |||
Grupo Carso SA de CV Series A1 | 1,592,841 | 3,087,214 | |||
Grupo Financiero Banorte SAB de CV Series O | 18,752,056 | 20,006,470 | |||
Grupo Mexico SA de CV Series B | 56,743,206 | 32,545,843 | |||
Grupo Modelo SAB de CV Series C | 21,746,498 | 56,568,306 | |||
Grupo Televisa SA Series CPO | 34,476,000 | 85,291,875 | |||
Industrias Penoles SAB de CV | 1,768,088 | 15,738,066 | |||
Kimberly-Clark de Mexico SAB de CV Series Aa | 12,562,500 | 39,317,294 | |||
Telefonos de Mexico SAB de CV Series L | 75,847,200 | 53,109,108 | |||
Telmex Internacional SAB de CV Series L | 80,992,800 | 31,202,407 | |||
Urbi Desarrollos Urbanos SA de CVa,b | 6,056,600 | 5,148,521 | |||
Wal-Mart de Mexico SAB de CV Series Va | 51,802,400 | 97,517,108 | |||
819,195,125 | |||||
PERU – 0.87% | |||||
Compania de Minas Buenaventura SA ADR | 5,657,600 | 108,965,376 | |||
Southern Copper Corp.a | 2,885,376 | 39,558,505 | |||
148,523,881 | |||||
PHILIPPINE ISLANDS – 1.58% | |||||
Ayala Corp. | 7,710,113 | 30,341,088 | |||
Ayala Land Inc. | 60,524,200 | 6,946,824 |
6 | 2009 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI EMERGING MARKETS INDEX FUND
February 28, 2009
Security | Shares | Value | |||
Bank of the Philippine Islands | 49,374,840 | $ | 34,913,547 | ||
Globe Telecom Inc. | 813,280 | 13,085,157 | |||
Jollibee Foods Corp.e | 63,848,900 | 53,000,214 | |||
Manila Electric Co. | 18,848,202 | 34,768,153 | |||
Metropolitan Bank & Trust Co. | 707,240 | 300,784 | |||
Philippine Long Distance Telephone Co. | 1,013,090 | 44,954,701 | |||
SM Investments Corp. | 3,395,851 | 13,363,464 | |||
SM Prime Holdings Inc. | 244,440,820 | 36,573,436 | |||
268,247,368 | |||||
RUSSIA – 5.50% | |||||
Comstar United Telesystems GDR | 397,840 | 1,074,168 | |||
JSC MMC Norilsk Nickel ADR | 8,508,881 | 39,991,741 | |||
LUKOIL SP ADR | 5,105,984 | 163,595,727 | |||
Mechel OAO ADRa | 1,702,584 | 5,959,044 | |||
Mobile TeleSystems SP ADR | 2,121,600 | 50,260,704 | |||
Novolipetsk Steel GDRc | 857,480 | 8,454,753 | |||
OAO Gazprom SP ADR | 25,858,768 | 335,905,395 | |||
OAO NOVATEK SP GDRc | 850,408 | 19,984,588 | |||
OAO Rosneft Oil Co. GDRa | 10,889,250 | 38,330,160 | |||
OAO Tatneft SP ADRc | 594,048 | 21,148,109 | |||
PIK Group GDRb,c | 2,231,216 | 1,160,232 | |||
Polyus Gold SP ADR | 2,124,166 | 39,615,696 | |||
Rostelecom SP ADRa | 1,265,891 | 60,914,675 | |||
Sberbank GDRa,c | 693,202 | 42,259,258 | |||
Surgutneftegaz SP ADRa | 6,020,040 | 34,434,629 | |||
Uralkali SP GDRc | 1,637,168 | 10,477,875 | |||
Vimpel-Communications SP ADR | 7,818,096 | 40,966,823 | |||
VTB Bank OJSC GDRa,c | 7,867,600 | 8,418,332 | |||
Wimm-Bill-Dann Foods OJSC ADRa,b | 447,837 | 13,269,410 | |||
936,221,319 | |||||
SOUTH AFRICA – 8.85% | |||||
Absa Group Ltd. | 579,904 | 5,138,280 | |||
African Bank Investments Ltd. | 18,337,707 | 38,429,860 | |||
African Rainbow Minerals Ltd. | 440,232 | 4,952,582 | |||
Anglo Platinum Ltd. | 746,831 | 28,690,296 | |||
AngloGold Ashanti Ltd.a | 2,304,415 | 68,252,622 | |||
ArcelorMittal South Africa Ltd. | 5,558,679 | 40,924,318 | |||
Aveng Ltd. | 2,548,553 | 6,533,450 |
Security | Shares | Value | |||
Barloworld Ltd. | 3,589,174 | $ | 10,787,711 | ||
Bidvest Group Ltd. | 3,921,442 | 32,403,772 | |||
Exxaro Resources Ltd. | 2,570,672 | 17,275,162 | |||
FirstRand Ltd. | 46,155,862 | 55,371,411 | |||
Foschini Ltd. | 8,666,792 | 35,790,585 | |||
Gold Fields Ltd. | 7,310,680 | 76,058,147 | |||
Harmony Gold Mining Co. Ltd.a,b | 3,990,376 | 48,764,862 | |||
Impala Platinum Holdings Ltd. | 6,366,568 | 75,166,638 | |||
Imperial Holdings Ltd. | 4,922,112 | 21,708,354 | |||
Investec Ltd. | 6,002,837 | 18,048,253 | |||
Kumba Iron Ore Ltd. | 657,696 | 10,541,994 | |||
Liberty Holdings Ltd. | 1,265,254 | 8,060,491 | |||
Massmart Holdings Ltd. | 747,864 | 5,390,547 | |||
MTN Group Ltd. | 16,155,106 | 138,318,395 | |||
Murray & Roberts Holdings Ltd. | 3,337,984 | 12,315,764 | |||
Naspers Ltd. Class N | 5,684,120 | 87,147,641 | |||
Nedbank Group Ltd. | 5,053,279 | 37,857,459 | |||
Netcare Ltd.b | 27,978,610 | 23,955,005 | |||
Northam Platinum Ltd. | 452,789 | 984,059 | |||
Pick’n Pay Stores Ltd. | 8,004,236 | 24,703,202 | |||
Pretoria Portland Cement Co. Ltd. | 5,955,110 | 17,608,320 | |||
Reinet Investments SCAb | 1 | 1 | |||
Remgro Ltd. | 1,446,397 | 9,547,127 | |||
Reunert Ltd. | 2,497,014 | 9,257,684 | |||
Sanlam Ltd. | 28,233,631 | 42,949,861 | |||
Sappi Ltd. | 1,606,123 | 3,038,114 | |||
Sasol Ltd. | 7,115,117 | 178,506,594 | |||
Shoprite Holdings Ltd. | 18,063,656 | 89,702,341 | |||
Standard Bank Group Ltd. | 14,027,324 | 90,773,663 | |||
Steinhoff International Holdings Ltd.a | 2,972,008 | 3,319,820 | |||
Telkom South Africa Ltd. | 2,141,199 | 21,118,880 | |||
Tiger Brands Ltd. | 3,009,136 | 37,896,929 | |||
Truworths International Ltd. | 14,727,531 | 45,658,352 | |||
Woolworths Holdings Ltd. | 19,915,247 | 23,594,150 | |||
1,506,542,696 | |||||
SOUTH KOREA – 11.12% | |||||
Daelim Industrial Co. Ltd. | 199,100 | 5,245,282 | |||
Doosan Heavy Industries & Construction Co. Ltd.b | 231,790 | 9,038,828 |
SCHEDULEOF INVESTMENTS | 7 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI EMERGING MARKETS INDEX FUND
February 28, 2009
Security | Shares | Value | |||
Hyundai Development Co. | 212,800 | $ | 3,968,751 | ||
Hyundai Engineering & Construction Co. Inc. | 325,410 | 10,928,344 | |||
Hyundai Heavy Industries Co. Ltd. | 375,500 | 43,463,482 | |||
KB Financial Group Inc. SP ADRa,b | 10,208,432 | 192,122,690 | |||
Korea Electric Power Corp. SP ADRb | 23,625,784 | 180,264,732 | |||
KT Corp. SP ADRa,b | 13,421,072 | 161,321,285 | |||
LG Display Co. Ltd. ADRa,b | 11,606,920 | 96,685,644 | |||
NHN Corp.b | 187,575 | 16,268,324 | |||
POSCO ADRa | 7,199,296 | 361,188,680 | |||
Samsung Electronics Co. Ltd. GDRa,c,d | 3,933,800 | 599,904,500 | |||
Samsung Engineering Co. Ltd. | 187,990 | 5,504,239 | |||
Samsung Heavy Industries Co. Ltd. | 2,036,070 | 28,811,685 | |||
Shinhan Financial Group Co. Ltd. ADRb | 529,152 | 15,689,357 | |||
SK Telecom Co. Ltd. ADRa | 12,220,416 | 163,631,370 | |||
1,894,037,193 | |||||
TAIWAN – 12.08% | |||||
Asia Cement Corp. | 3,234,060 | 2,416,414 | |||
AU Optronics Corp. SP ADRa | 23,857,392 | 171,534,649 | |||
Catcher Technology Co. Ltd. | 3,521,100 | 5,977,448 | |||
Cheng Shin Rubber Industry Co. Ltd. | 3,508,650 | 2,932,957 | |||
Chunghwa Telecom Co. Ltd. ADRa | 37,046,660 | 568,666,231 | |||
CMC Magnetics Corp.b | 8,136,000 | 1,197,173 | |||
Compal Communications Inc. | 2,598,750 | 1,696,220 | |||
Epistar Corp. | 2,314,345 | 2,895,292 | |||
Evergreen Marine Corp. Ltd. | 10,170,000 | 3,872,178 | |||
Far Eastern Textile Ltd. | 5,186,700 | 3,103,274 | |||
Foxconn Technology Co. Ltd. | 1,174,800 | 2,724,154 | |||
HannStar Display Corp. | 11,767,963 | 1,391,343 | |||
Hon Hai Precision Industry Co. Ltd. | 5,847,750 | 11,668,213 | |||
HTC Corp. | 4,063,800 | 44,789,459 | |||
Macronix International Co. Ltd. | 22,176,448 | 7,205,608 | |||
MediaTek Inc. | 3,176,450 | 27,643,840 |
Security | Shares | Value | |||
MiTAC International Corp. | 7,403,728 | $ | 2,712,959 | ||
Siliconware Precision Industries Co. SP ADRa | 58,914,352 | 260,990,579 | |||
Synnex Technology International Corp. | 4,474,800 | 5,149,706 | |||
Taiwan Cement Corp. | 7,190,190 | 5,392,925 | |||
Taiwan Semiconductor Manufacturing Co. Ltd. SP ADRa | 88,092,368 | 664,216,455 | |||
Tatung Co. Ltd.b | 14,763,000 | 2,239,924 | |||
U-Ming Marine Transport Corp. | 2,034,000 | 2,617,360 | |||
Uni-President Enterprises Co. | 6,407,100 | 4,787,235 | |||
United Microelectronics Corp. SP ADRa | 130,382,928 | 230,777,783 | |||
Yang Ming Marine Transport Corp. | 16,238,978 | 4,169,979 | |||
Yuanta Financial Holding Co. Ltd. | 38,829,000 | 14,172,588 | |||
2,056,941,946 | |||||
THAILAND – 1.67% | |||||
Bangkok Bank PCL | 7,972,800 | 16,417,181 | |||
Banpu PCL | 2,511,000 | 14,574,627 | |||
IRPC PCL | 128,003,200 | 6,615,975 | |||
Kasikornbank PCL | 16,172,200 | 19,891,180 | |||
Krung Thai Bank PCL | 55,515,200 | 6,352,485 | |||
PTT Aromatics & Refining PCL | 27,765,286 | 7,674,208 | |||
PTT Chemical PCL | 10,675,968 | 8,704,839 | |||
PTT Exploration and Production PCL | 27,103,400 | 66,672,266 | |||
PTT PCL | 15,752,800 | 67,922,521 | |||
Ratchaburi Electricity Generating Holding PCL | 57,479,900 | 60,371,371 | |||
Siam Cement PCL | 2,544,600 | 6,962,836 | |||
Thai Oil PCL NVDR | 2,475,200 | 1,641,924 | |||
TMB Bank PCL NVDRb | 15,558,400 | 210,713 | |||
284,012,126 | |||||
TURKEY – 1.01% | |||||
Akbank TASa | 8,172,129 | 18,827,909 | |||
Anadolu Efes Biracilik ve Malt Sanayii AS | 373,048 | 2,367,932 | |||
Arcelik ASa | 3,521,856 | 3,601,651 | |||
Asya Katilim Bankasi ASa,b | 12,577,552 | 7,392,255 |
8 | 2009 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI EMERGING MARKETS INDEX FUND
February 28, 2009
Security | Shares | Value | |||
BIM Birlesik Magazalar AS | 137,904 | $ | 2,715,204 | ||
Enka Insaat ve Sanayi ASa | 176,800 | 644,251 | |||
Eregli Demir ve Celik Fabrikalari TASa | 7,079,937 | 14,314,251 | |||
Migros Turk TAS | 1 | 5 | |||
Petkim Petrokimya Holding ASa,b | 4,538,456 | 10,669,619 | |||
Tupras-Turkiye Petrol Rafinerileri ASa | 1,369,372 | 12,474,810 | |||
Turk Sise ve Cam Fabrikalari ASa,b | 22,554,376 | 12,593,175 | |||
Turkcell Iletisim Hizmetleri ASa | 1,615,657 | 8,023,922 | |||
Turkiye Garanti Bankasi ASa,b | 26,507,624 | 32,249,423 | |||
Turkiye Is Bankasi ASa | 5,304,000 | 10,224,879 | |||
Turkiye Vakiflar Bankasi TAO | 28,042,248 | 17,799,893 | |||
Yapi ve Kredi Bankasi ASa,b | 18,208,689 | 17,658,078 | |||
171,557,257 | |||||
TOTAL COMMON STOCKS | 15,313,256,034 | ||||
PREFERRED STOCKS – 9.31% | |||||
BRAZIL – 9.31% | |||||
Aracruz Celulose SA SP ADRa | 1,630,096 | 11,622,585 | |||
Banco Bradesco SA SP ADR | 28,454,192 | 248,120,554 | |||
Banco Itau Holding Financiera SA ADRa | 28,514,304 | 261,761,311 | |||
Brasil Telecom Participacoes SA ADR | 987,918 | 30,981,108 | |||
Centrais Eletricas Brasileiras SA ADR | 224,536 | 2,240,869 | |||
Companhia Brasileira de Distribuicao Grupo Pao de Acucar SP ADRa | 1,911,208 | 46,308,570 | |||
Companhia de Bebidas das Americas ADRa | 3,019,744 | 122,178,842 | |||
Companhia Energetica de Minas Gerais SP ADR | 2,963,206 | 40,477,394 | |||
Companhia Paranaense de Energia SP ADRa | 530,400 | 4,874,376 |
Security | Shares | Value | |||
Companhia Vale do Rio Doce SP ADRa | 24,721,944 | $ | 275,649,676 | ||
Gerdau SA SP ADR | 7,639,610 | 39,955,160 | |||
Net Servicos de Comunicacao | 2,652,084 | 16,522,483 | |||
Petroleo Brasileiro SA SP ADRa | 19,370,208 | 433,505,255 | |||
Tele Norte Leste Participacoes SA ADR | 3,324,072 | 40,287,753 | |||
Votorantim Celulose e Papel SA SP ADRb | 1,983,696 | 9,482,067 | |||
1,583,968,003 | |||||
TOTAL PREFERRED STOCKS | 1,583,968,003 | ||||
EXCHANGE-TRADED FUNDS – 0.34% | |||||
iShares MSCI Malaysia Index Funda,e | 984,557 | 6,872,208 | |||
iShares MSCI South Korea Index Funda,e | 1,154,371 | 25,165,288 | |||
iShares MSCI Taiwan Index Funda,e | 3,848,936 | 26,249,743 | |||
TOTAL EXCHANGE-TRADED FUNDS | |||||
(Cost: $114,254,169) | 58,287,239 |
SCHEDULEOF INVESTMENTS | 9 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI EMERGING MARKETS INDEX FUND
February 28, 2009
Security | Shares | Value | ||||
SHORT-TERM INVESTMENTS – 10.49% |
| |||||
MONEY MARKET FUNDS – 10.49% |
| |||||
Barclays Global Investors Funds | 1,514,643,911 | $ | 1,514,643,911 | |||
Barclays Global Investors Funds | 253,204,075 | 253,204,075 | ||||
Barclays Global Investors Funds | 18,450,911 | 18,450,911 | ||||
1,786,298,897 | ||||||
TOTAL SHORT-TERM INVESTMENTS |
| |||||
(Cost: $1,786,298,897) | 1,786,298,897 | |||||
TOTAL INVESTMENTS IN | ||||||
(Cost: $32,941,498,335) | 18,741,810,173 | |||||
Other Assets, Less Liabilities – (10.08)% | (1,715,861,028 | ) | ||||
NET ASSETS – 100.00% | $ | 17,025,949,145 | ||||
ADR - American Depositary Receipts
GDR - Global Depositary Receipts
NVDR - Non-Voting Depositary Receipts
SP ADR - Sponsored American Depositary Receipts
SP GDR - Sponsored Global Depositary Receipts
a | All or a portion of this security represents a security on loan. See Note 5. |
b | Non-income earning security. |
c | This security may be resold to qualified foreign investors and foreign institutional buyers under Regulation S of the Securities Act of 1933. |
d | This security may be resold to qualified institutional buyers under Rule 144A of the Securities Act of 1933. |
e | Affiliated issuer. See Note 2. |
f | The rate quoted is the annualized seven-day yield of the fund at period end. |
g | All or a portion of this security represents an investment of securities lending collateral. See Note 5. |
See notes to financial statements.
10 | 2009 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Statement of Assets and Liabilities (Unaudited)
iSHARES®, INC.
February 28, 2009
iShares MSCI
| ||||
ASSETS | ||||
Investments, at cost: | ||||
Unaffiliated issuers | $ | 30,973,082,536 | ||
Affiliated issuers (Note 2) | 1,968,415,799 | |||
Total cost of investments | $ | 32,941,498,335 | ||
Investments in securities, at fair value (including securities on loana) (Note 1): | ||||
Unaffiliated issuers | $ | 16,844,223,823 | ||
Affiliated issuers (Note 2) | 1,897,586,350 | |||
Total fair value of investments | 18,741,810,173 | |||
Foreign currencies, at valueb | 11,964,119 | |||
Receivables: | ||||
Investment securities sold | 8,328,286 | |||
Due from custodian (Note 4) | 3,413,150 | |||
Dividends and interest | 42,070,698 | |||
Total Assets | 18,807,586,426 | |||
LIABILITIES | ||||
Payables: | ||||
Investment securities purchased | 3,413,150 | |||
Securities related to in-kind transactions (Note 4) | 54,126 | |||
Collateral for securities on loan (Note 5) | 1,767,847,986 | |||
Investment advisory fees (Note 2) | 10,322,019 | |||
Total Liabilities | 1,781,637,281 | |||
NET ASSETS | $ | 17,025,949,145 | ||
Net assets consist of: | ||||
Paid-in capital | $ | 32,444,575,210 | ||
Undistributed net investment income | 20,184,029 | |||
Accumulated net realized loss | (1,238,666,857 | ) | ||
Net unrealized depreciation on investments and translation of assets and liabilities in foreign currencies | (14,200,143,237 | ) | ||
NET ASSETS | $ | 17,025,949,145 | ||
Shares outstandingc | 795,600,000 | |||
Net asset value per share | $ | 21.40 | ||
a | Securities on loan with a market value of $1,675,699,832. See Note 5. |
b | Cost of foreign currencies: $11,950,324. |
c | $0.001 par value, number of shares authorized: 1,500,000,000. |
See notes to financial statements.
FINANCIAL STATEMENTS | 11 |
Table of Contents
Statement of Operations (Unaudited)
iSHARES®, INC.
Six months ended February 28, 2009
iShares MSCI Emerging Markets Index Fund | ||||
NET INVESTMENT INCOME | ||||
Dividends from unaffiliated issuersa | $ | 167,382,133 | ||
Dividends from affiliated issuers (Note 2) | 3,860,948 | |||
Interest from affiliated issuers (Note 2) | 63,604 | |||
Securities lending income from affiliated issuers (Note 2) | 10,069,278 | |||
Total investment income | 181,375,963 | |||
EXPENSES | ||||
Investment advisory fees (Note 2) | 63,747,931 | |||
Foreign taxes (Note 1) | 66,396 | |||
Total expenses | 63,814,327 | |||
Less investment advisory fees waived (Note 2) | (211,386 | ) | ||
Net expenses | 63,602,941 | |||
Net investment income | 117,773,022 | |||
NET REALIZED AND UNREALIZED GAIN (LOSS) | ||||
Net realized loss from: | ||||
Investments in unaffiliated issuers | (678,629,482 | ) | ||
Investments in affiliated issuers (Note 2) | (12,322,864 | ) | ||
In-kind redemptions | (76,859,631 | ) | ||
Foreign currency transactions | (6,130,703 | ) | ||
Net realized loss | (773,942,680 | ) | ||
Net change in unrealized appreciation (depreciation) on: | ||||
Investments | (10,868,882,795 | ) | ||
Translation of assets and liabilities in foreign currencies | 380,396 | |||
Net change in unrealized appreciation (depreciation) | (10,868,502,399 | ) | ||
Net realized and unrealized loss | (11,642,445,079 | ) | ||
NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS | $ | (11,524,672,057 | ) | |
a | Net of foreign withholding tax of $24,818,717. |
See notes to financial statements.
12 | 2009 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 28, 2009 (Unaudited) | Year ended August 31, 2008 | |||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||
OPERATIONS: | ||||||||
Net investment income | $ | 117,773,022 | $ | 564,087,379 | ||||
Net realized gain (loss) | (773,942,680 | ) | 4,192,101,297 | |||||
Net change in unrealized appreciation (depreciation) | (10,868,502,399 | ) | (7,412,430,109 | ) | ||||
Net decrease in net assets resulting from operations | (11,524,672,057 | ) | (2,656,241,433 | ) | ||||
DISTRIBUTIONS TO SHAREHOLDERS: |
| |||||||
From net investment income | (265,478,877 | ) | (602,951,708 | ) | ||||
Total distributions to shareholders | (265,478,877 | ) | (602,951,708 | ) | ||||
CAPITAL SHARE TRANSACTIONS: |
| |||||||
Proceeds from shares sold | 13,319,942,990 | 19,099,692,233 | ||||||
Cost of shares redeemed | (4,806,599,354 | ) | (13,736,113,781 | ) | ||||
Net increase in net assets from capital share transactions | 8,513,343,636 | 5,363,578,452 | ||||||
INCREASE (DECREASE) IN NET ASSETS | (3,276,807,298 | ) | 2,104,385,311 | |||||
NET ASSETS | ||||||||
Beginning of period | 20,302,756,443 | 18,198,371,132 | ||||||
End of period | $ | 17,025,949,145 | $ | 20,302,756,443 | ||||
Undistributed net investment income included in net assets at end of period | $ | 20,184,029 | $ | 167,889,884 | ||||
SHARES ISSUED AND REDEEMED | ||||||||
Shares sold | 493,200,000 | 393,300,000 | ||||||
Shares redeemed | (204,300,000 | ) | (292,950,000 | ) | ||||
Net increase in shares outstanding | 288,900,000 | 100,350,000 | ||||||
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. 28, 2009 | Year ended Aug. 31, 2008a | Year ended Aug. 31, 2007a | Year ended Aug. 31, 2006a | Year ended Aug. 31, 2005a | Year ended Aug. 31, 2004a | |||||||||||||||||||
Net asset value, beginning of period | $ | 40.07 | $ | 44.78 | $ | 32.48 | $ | 25.97 | $ | 17.99 | $ | 15.04 | ||||||||||||
Income from investment operations: | ||||||||||||||||||||||||
Net investment incomeb | 0.17 | 1.10 | 0.63 | 0.55 | 0.55 | 0.38 | ||||||||||||||||||
Net realized and unrealized | (18.50 | ) | (4.64 | ) | 12.19 | 6.29 | 8.23 | 2.66 | ||||||||||||||||
Total from investment operations | (18.33 | ) | (3.54 | ) | 12.82 | 6.84 | 8.78 | 3.04 | ||||||||||||||||
Less distributions from: | ||||||||||||||||||||||||
Net investment income | (0.34 | ) | (1.17 | ) | (0.52 | ) | (0.33 | ) | (0.80 | ) | (0.09 | ) | ||||||||||||
Total distributions | (0.34 | ) | (1.17 | ) | (0.52 | ) | (0.33 | ) | (0.80 | ) | (0.09 | ) | ||||||||||||
Net asset value, end of period | $ | 21.40 | $ | 40.07 | $ | 44.78 | $ | 32.48 | $ | 25.97 | $ | 17.99 | ||||||||||||
Total return | (45.83 | )%d | (8.36 | )% | 39.86 | % | 26.44 | % | 46.17 | % | 20.21 | % | ||||||||||||
Ratios/Supplemental data: | ||||||||||||||||||||||||
Net assets, end of period (000s) | $ | 17,025,949 | $ | 20,302,756 | $ | 18,198,371 | $ | 11,969,380 | $ | 7,000,858 | $ | 1,958,596 | ||||||||||||
Ratio of expenses to average net assets prior to waived feese | 0.74 | % | 0.72 | % | 0.74 | % | 0.77 | % | 0.78 | % | 0.77 | % | ||||||||||||
Ratio of expenses to average net assets after waived feese | 0.73 | % | 0.72 | % | 0.74 | % | 0.77 | % | 0.77 | % | 0.76 | % | ||||||||||||
Ratio of expenses to average net assets after waived fees and exclusive of foreign taxese | 0.73 | % | 0.72 | % | 0.74 | % | 0.75 | % | 0.74 | % | 0.74 | % | ||||||||||||
Ratio of net investment income to average net assetse | 1.36 | % | 2.32 | % | 1.63 | % | 1.77 | % | 2.40 | % | 2.10 | % | ||||||||||||
Portfolio turnover ratef | 2 | % | 11 | % | 5 | % | 12 | % | 9 | % | 8 | % |
a | Per share amounts were adjusted to reflect a three-for-one stock split effective July 24, 2008. |
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 | 2009 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 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”). 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 valued pursuant to the pricing policy and procedures approved by the Board of Directors of the Company (the “Board”). Effective September 1, 2008, the Fund adopted Financial Accounting Standards Board (“FASB”) Statement of Financial Accounting Standards No. 157 (“FAS 157”), “Fair Value Measurements.” This standard establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. Inputs may be based on independent market data (“observable inputs”) or they may be internally developed (“unobservable inputs”). The hierarchy gives the highest priority to
NOTESTO FINANCIAL STATEMENTS | 15 |
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Notes to Financial Statements (Unaudited) (Continued)
iSHARES®, INC.
unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy under FAS 157 are as follows:
• | Level 1 – Inputs that reflect unadjusted quoted prices in active markets for identical assets or liabilities that the Fund has the ability to access at the measurement date (a “Level 1 Price”); |
• | Level 2 – Inputs other than quoted prices included within Level 1 that are observable for the asset or liability either directly or indirectly, including quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not considered to be active, inputs other than quoted prices that are observable for the asset or liability, and inputs that are derived principally from or corroborated by observable market data by correlation or other means (a “Level 2 Price”); |
• | Level 3 – Inputs that are unobservable for the asset or liability (a “Level 3 Price”). |
Inputs are used in applying the various valuation techniques and broadly refer to the assumptions that market participants use to make valuation decisions, including assumptions about risk. Inputs may include price information, volatility statistics, specific and broad credit data, liquidity statistics, and other factors. The level of a value determined for a financial instrument within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement in its entirety. However, the determination of what constitutes an “observable” input may require significant judgment by the Fund. The Fund considers observable inputs to be market data that is readily available, regularly distributed or updated, reliable and verifiable, and provided by independent sources that are actively involved in the relevant market. The categorization of a value determined for a financial instrument within the hierarchy is based upon the pricing transparency of the instrument and does not necessarily correspond to the Fund’s perceived risk of that instrument.
Investments whose values are based on quoted market prices in active markets, and whose values are therefore classified as Level 1 Prices, include active listed equities and certain U.S. government securities. The Fund does not adjust the quoted price for such instruments, even in situations where the Fund holds a large position and a sale could reasonably impact the quoted price.
Investments that trade in markets that are not considered to be active, but whose values are based on quoted market prices, dealer quotations or valuations provided by alternative pricing sources supported by observable inputs are classified as Level 2 Prices. These generally include certain U.S. government and sovereign obligations, most government agency securities, investment-grade corporate bonds, certain mortgage products, less liquid listed equities, and state, municipal and provincial obligations. As investments whose values are classified as Level 2 Prices include positions that are not traded in active markets and/or are subject to transfer restrictions, valuations may be adjusted to reflect illiquidity and/or non-transferability, which are generally based on available market information.
Investments whose values are classified as Level 3 Prices have significant unobservable inputs, as they may trade infrequently or not at all. Investments whose values are classified as Level 3 Prices may include unlisted securities related to corporate actions, securities whose trading have been suspended or which have been de-listed from their primary trading exchange, less liquid corporate debt securities (including distressed debt instruments), collateralized debt obligations, and less liquid mortgage securities (backed by either commercial or residential real estate). When observable prices are not available for these securities, the Fund uses one or more valuation techniques (e.g., the market approach or the income approach) for which sufficient and reliable data is available. Within Level 3 of the fair value hierarchy, the use of the market approach generally consists of using comparable market transactions, while the use of the income approach generally consists of the net present value of estimated future cash flows, adjusted as appropriate for liquidity, credit, market and/or other risk factors.
The inputs used by the Fund in estimating the value of Level 3 Prices may include the original transaction price, quoted prices for similar securities or assets in active markets, completed or pending third-party transactions in the underlying investment or comparable issuers, and changes in financial ratios or cash flows. Level 3 Prices may also be adjusted to reflect illiquidity and/or non-transferability, with the
16 | 2009 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Notes to Financial Statements (Unaudited) (Continued)
iSHARES®, INC.
amount of such discount estimated by the Fund in the absence of market information. The fair value measurement of Level 3 Prices does not include transaction costs that may have been capitalized as part of the security’s cost basis. Assumptions used by the Fund due to the lack of observable inputs may significantly impact the resulting fair value and therefore the Fund’s results of operations.
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 underlying index, which in turn could result in a difference between the Fund’s performance and the performance of the Fund’s underlying index.
As of February 28, 2009, the value of each of the Fund’s investments was classified as a Level 1 Price.
The following table provides the reconciliation of investments in which significant unobservable inputs (Level 3) were used in determining fair value for the six months ended February 28, 2009:
Balance at Beginning of Period | (Amortized Premiums) Accreted Discounts | Realized Gain (Loss) and | Net Purchases (Sales) | Net in or out | Balance at End of Period | Net Change in Unrealized Appreciation (Depreciation) from Investments Still Held at End of Period | ||||||||||||||||
$ | 4,060,613 | $ | – | $ | (2,947,940 | ) | $ | (26,908 | ) | $ | (1,085,765 | ) | $ | – | $ | – |
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
NOTESTO FINANCIAL STATEMENTS | 17 |
Table of Contents
Notes to Financial Statements (Unaudited) (Continued)
iSHARES®, INC.
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 28, 2009, 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.
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 28, 2009.
As of August 31, 2008, 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, $29,973,301 and $13,844,901 expiring in 2012, 2013, 2014, 2015 and 2016, 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 28, 2009, the cost of investments for federal income tax purposes was $33,200,001,990. Net unrealized depreciation was $14,458,191,817, of which $14,458,191,817 represented gross unrealized depreciation on securities and $0 represented gross unrealized appreciation on securities.
Management has reviewed the tax positions as of February 28, 2009, inclusive of the prior three open tax return years, and has determined that no provision for income tax is required in 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,
18 | 2009 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Notes to Financial Statements (Unaudited) (Continued)
iSHARES®, INC.
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 iShares MSCI All Country Asia ex Japan and iShares MSCI BRIC Index Funds 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 |
Effective August 11, 2008, BGFA has contractually agreed to waive a portion of its advisory fees for the Fund through December 31, 2009 in an amount equal to the investment advisory fees payable on the amount of the Fund’s investment in other iShares Funds. Prior to August 11, 2008, the advisory fee waiver was voluntary.
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 28, 2009, BGI earned securities lending agent fees of $10,069,278.
The Fund may invest in 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. These money market funds seek to achieve their investment objectives by investing in high-quality, short-term money market instruments that, at the time of investment, have remaining maturities of 397 calendar days or less from the date of acquisition. 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.
NOTESTO FINANCIAL STATEMENTS | 19 |
Table of Contents
Notes to Financial Statements (Unaudited) (Continued)
iSHARES®, INC.
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 Funds that invest in securities in the Fund’s underlying index. As of February 28, 2009, the Fund held shares of the iShares MSCI Malaysia, iShares MSCI South Korea and iShares MSCI Taiwan Index Funds.
For the six months ended February 28, 2009, the Fund had direct investment (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 Beginning of Period (in 000s) | Gross Additions (in 000s) | Gross Reductions (in 000s) | Number of End of Period | Value at End of Period | Dividend Income | Net Realized Loss | |||||||||||
iShares MSCI Malaysia | ||||||||||||||||||
Index Fund | 1,209 | 8 | 232 | 985 | $ | 6,872,208 | $ | 174,797 | $ | (846,836 | ) | |||||||
iShares MSCI South Korea | ||||||||||||||||||
Index Fund | 750 | 646 | 242 | 1,154 | 25,165,288 | 218,340 | (473,000 | ) | ||||||||||
iShares MSCI Taiwan | ||||||||||||||||||
Index Fund | 3,464 | 2,590 | 2,205 | 3,849 | 26,249,743 | 2,970,339 | (10,785,501 | ) | ||||||||||
Jollibee Foods Corp. | 40,673 | 39,565 | 16,389 | 63,849 | 53,000,214 | 497,472 | (217,527 | ) | ||||||||||
$ | 111,287,453 | $ | 3,860,948 | $ | (12,322,864 | ) | ||||||||||||
Certain directors and officers of the Company are also officers of BGI and/or BGFA.
3. INVESTMENT PORTFOLIO TRANSACTIONS
Purchases and sales of investments (excluding in-kind transactions and short-term investments) for the six months ended February 28, 2009, aggregated $720,351,035 and $448,187,043, respectively.
In-kind purchases and sales (see Note 4) for the six months ended February 28, 2009, aggregated $12,768,336,380 and $4,610,497,468, 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.
20 | 2009 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Notes to Financial Statements (Unaudited) (Continued)
iSHARES®, INC.
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.
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 include the risk that the borrower may not provide additional collateral when required or may not return the securities when due. Any securities lending cash collateral may be reinvested in certain short-term instruments either directly on behalf of the Fund or through one or more joint accounts or money market funds, including those managed by BGFA; such reinvestments are subject to investment risk.
As of February 28, 2009, the Fund had loaned securities which were collateralized by cash. The cash collateral received was invested in money market funds managed by BGFA. The market value of the securities on loan as of February 28, 2009 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. SUBSEQUENT EVENT
On April 9, 2009, Barclays Global Investors UK Holdings Limited (“Barclays”), the parent company of BGI and BGFA, entered into an agreement to sell its interest in BGFA and certain affiliated companies to Blue Sparkle, L.P., a Cayman Islands limited partnership (the “Transaction”). Blue Sparkle, L.P. is an investment vehicle for private equity funds affiliated with CVC Capital Partners Group SICAV-FIS S.A., a private equity and investment advisory firm. The Transaction is subject to certain regulatory approvals, as well as other conditions to closing.
Under the 1940 Act, completion of the Transaction will cause the automatic termination of the Fund’s current investment advisory agreement with BGFA. In order for the management of the Fund to continue uninterrupted, the Board will be asked to approve a new investment advisory agreement with BGFA. If approved by the Board, the new investment advisory agreement will be submitted to the Fund’s shareholders for their approval.
NOTESTO FINANCIAL STATEMENTS | 21 |
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22 | 2009 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
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Notes:
NOTES | 23 |
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24 | 2009 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
Capped (FIO)
iShares FTSE NAREIT Mortgage Plus
Capped (REM)
iShares FTSE NAREIT Real Estate 50 (FTY)
iShares FTSE NAREIT Residential Plus
Capped (REZ)
iShares FTSE NAREIT Retail Capped (RTL)
iShares Global Index Funds
iShares S&P Global 100 (IOO)
iShares S&P Global Clean Energy (ICLN)
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 Nuclear Energy (NUCL)
iShares S&P Global Technology Sector (IXN)
iShares S&P Global Telecommunications Sector (IXP)
iShares S&P Global Timber& Forestry (WOOD)
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 China (HK Listed) (FCHI)
iShares FTSE/Xinhua China 25 (FXI)
iShares MSCI Australia (EWA)
iShares MSCI Austria Investable Market (EWO)
iShares MSCI Belgium Investable Market (EWK)
iShares MSCI Brazil (EWZ)
iShares MSCI Canada (EWC)
iShares MSCI Chile Investable Market (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 Investable Market (EWW)
iShares MSCI Netherlands Investable
Market (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 Barclays Aggregate (AGG)
iShares Barclays MBS (MBB)
iShares Barclays Short Treasury (SHV)
iShares Barclays 1-3 Year Treasury (SHY)
iShares Barclays 3-7 Year Treasury (IEI)
iShares Barclays 7-10 Year Treasury (IEF)
iShares Barclays 10-20 Year Treasury (TLH)
iShares Barclays 20+ Year Treasury (TLT)
iShares Barclays TIPS (TIP)
iShares Barclays Agency (AGZ)
iShares Barclays Credit (CFT)
iShares Barclays 1-3 Year Credit (CSJ)
iShares Barclays Intermediate Credit (CIU)
iShares iBoxx $ Investment Grade
Corporate (LQD)
iShares iBoxx $ High Yield Corporate (HYG)
iShares Barclays Government/Credit (GBF)
iShares Barclays Intermediate Government/
Credit (GVI)
iShares S&P National Municipal (MUB)
iShares S&P Short Term National
Municipal (SUB)
iShares S&P California Municipal (CMF)
iShares S&P New York Municipal (NYF)
iShares JPMorgan USD Emerging Markets (EMB)
iShares S&P/Citigroup International
Treasury (IGOV)
iShares S&P/Citigroup 1-3 Year International Treasury (ISHG)
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 FAMILYOF FUNDS | 25 |
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The iShares® Family of Funds (Continued)
iShares International Index Funds
iShares FTSE Developed Small Cap ex-North America (IFSM)
iShares FTSE EPRA/NAREIT Developed
Asia (IFAS)
iShares FTSE EPRA/NAREIT Developed
Europe (IFEU)
iShares FTSE EPRA/NAREIT Developed Real Estate ex-U.S. (IFGL)
iShares FTSE EPRA/NAREIT North
America (IFNA)
iShares MSCI ACWI (ACWI)
iShares MSCI ACWI ex US (ACWX)
iShares MSCI All Country Asia ex Japan (AAXJ)
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 Developed ex-U.S. Property (WPS)
iShares S&P Europe 350 (IEV)
iShares S&P Latin America 40 (ILF)
iShares Morningstar Index Funds
iShares Morningstar Large Core (JKD)
iShares Morningstar Large Growth (JKE)
iShares Morningstar Large Value (JKF)
iShares Morningstar Mid Core (JKG)
iShares Morningstar Mid Growth (JKH)
iShares Morningstar Mid Value (JKI)
iShares Morningstar Small Core (JKJ)
iShares Morningstar Small Growth (JKK)
iShares Morningstar Small Value (JKL)
iShares NYSE Index Funds
iShares NYSE Composite (NYC)
iShares NYSE 100 (NY)
iShares S&P Allocation Funds
iShares S&P Conservative (AOK)
iShares S&P Moderate (AOM)
iShares S&P Growth (AOR)
iShares S&P Aggressive (AOA)
iShares S&P Target Date Index Funds
iShares S&P Target Date Retirement
Income (TGR)
iShares S&P Target Date 2010 (TZD)
iShares S&P Target Date 2015 (TZE)
iShares S&P Target Date 2020 (TZG)
iShares S&P Target Date 2025 (TZI)
iShares S&P Target Date 2030 (TZL)
iShares S&P Target Date 2035 (TZO)
iShares S&P Target Date 2040 (TZV)
iShares® is a registered trademark of Barclays Global Investors, N.A. (“BGI”). The iShares Funds are not 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, nor are they sponsored or endorsed by Barclays Capital. 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 except Barclays Capital, which is an affiliate of BGI. 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/Residential/Retail/Mortgage REITs or 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 service mark 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 2009 Semi-Annual Report.
iS-0569-0409
26 | 2009 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
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For more information: WWW.iSHARES.COM 1-800-iShares (1-800-474-2737) The iShares Funds are distributed by SF1 Investments Distribution Co. (SEI). Barclays Global Fund Advisors (BUFA) serves as an advisor to the iShares Funds. BGFA is a subsidiary of Barclays Global Investors N.A. BGI), neither of which is affiliated with SF1. The iShares Funds are not sponsored. endorsed issued, sold or promoted by MSGI Inc., no does this company make any representation regarding the advisability of investing in he Shares Funds. Neither SE nor BGI, nor any of heir affiliates, are affiliated with the company listed above. ©2009 Barclays Global Investors. All rights reserved, iShares® is a registered trademark of Barclays Global Investors, N.A. All other trademarks, servicemarks or registered trademarks are the property of their respective owners. Investing involves risk, including possible loss of principal. A description of the policies that the Fund uses to determine how to vote proxies relating to portfolio securities and information about how the Fund voted proxies relating to portfolio securities during the most recent twelve-month period ended June 30 is available without charge, upon request, by calling toll-free 1-SDD-474-2737; on the Fund’s website at iww.iShares.com; and on the U.S. Securities and Exchange Commission (SEC) website at vvww.sec.gov. The Fund files its complete schedule of portfolio holdings within the SEC for the first and third quarters of each fiscal year on Form N-Q. The Fund’s Form N-Q is available on the SEC’s website or may be reviewed and copied at the SEC’s Public Reference Room in Washington, D.C. Information on the operation of the Public Reference Room may be obtained by calling 1 -8DD-SEC-0330. The Fund also discloses its complete schedule of portfolio holdings on a monthly basis on the Fund’s website. This report is intended for the Fund’s shareholders. It may not be distributed to prospective investors unless it is preceded or accompanied by the current prospectus. iShares® LET��S BUILD A BETTER INVESTMENT® WORLD BARCLAYS GLOBAL INVESTORS BGI-SAR-85-0209
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Item 2. | Code of Ethics. |
Not applicable to this semi-annual filing.
Item 3. | Audit Committee Financial Expert. |
Not applicable to this semi-annual filing.
Item 4. | Principal Accountant Fees and Services. |
Not applicable to this semi-annual filing.
Item 5. | Audit Committee of Listed Registrants. |
Not applicable to this semi-annual filing.
Item 6. | Investments. |
(a) Schedules of investments are included as part of the reports to shareholders filed under Item 1 of this Form.
(b) Not applicable.
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 22, 2009 |
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 22, 2009 |
By: | /s/ Jack Gee | |
Jack Gee, Treasurer and Chief Financial Officer (Principal Financial Officer) | ||
Date: April 22, 2009 |