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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)
The Corporation Trust Company
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, 2010
Date of reporting period: February 28, 2010
Table of Contents
Item 1. | Reports to Stockholders. |
2010 SEMI-ANNUAL REPORT TO SHAREHOLDERS
iSHARES ® MSCI SERIES
FEBRUARY 28, 2010
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iSharesMSCI Austria Investable Market Index Fund | EWO | NYSEArca
iShares MSCI Belgium Investable Market Index Fund | EWK | NYSE Area
iShares MSCI Emerging Markets Eastern Europe Index Fund | ESR | NYSE Area
iShares MSCI EMU Index Fund | EZU | NYSE Area
iShares MSCI France Index Fund | EWQ | NYSE Arca
iShares MSCI Germany Index Fund | EWG | NYSE Arca
iShares MSCI Italy Index Fund | EWI | NYSE Area
iShares MSCI Netherlands Investable Market Index Fund | EWN | NYSE Arca
iShares MSCI Spain Index Fund | EWP | NYSE Area
iShares MSCI Sweden Index Fund | EWD | NYSE Area
iShares MSCI Switzerland Index Fund | EWL | NYSE Area
iShares MSCI United Kingdom Index Fund | EWU | NYSE Area
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Table of Contents
iSHARES® MSCI AUSTRIA INVESTABLE MARKET INDEX FUND
Performance as of February 28, 2010
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, 2010, the total return for the Fund was (6.04)%, while the total return for the Index was (6.38)%.
Average Annual Total Returns | ||||||||||||||||
Year Ended 2/28/10 | Five Years Ended 2/28/10 | Ten Years Ended 2/28/10 | ||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||
88.43% | 90.04% | 88.92% | (2.56)% | (2.70)% | (3.20)% | 11.34% | 11.29% | 11.01% | ||||||||
Cumulative Total Returns | ||||||||||||||||
Year Ended 2/28/10 | Five Years Ended 2/28/10 | Ten Years Ended 2/28/10 | ||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||
88.43% | 90.04% | 88.92% | (12.15)% | (12.80)% | (15.00)% | 192.86% | 191.41% | 184.24% |
“Average Annual Total Returns” represent the average annual change in value of an investment over the period(s) indicated. “Cumulative Total Returns” represent the total change in value of an investment over the period(s) indicated.
Certain sectors and markets performed exceptionally well based on market conditions during the one-year period. Achieving such exceptional returns involves the risk of volatility and investors should not expect that such exceptional returns will be repeated.
The Fund’s per share net asset value or “NAV” is the value of one share of the Fund as calculated in accordance with the standard formula for valuing mutual fund shares. The NAV return is based on the NAV of the Fund and the market return is based on the market price per share of the Fund. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which 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 performance shown in the table(s) above assumes reinvestment of all dividends and capital gain distributions and does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption or sale of fund shares. The investment return and principal value of shares of the Fund will vary with changes in market conditions. Shares of the Fund may be worth more or less than their original cost when they are redeemed or sold in the market. The Fund’s past performance is no guarantee of future results.
PORTFOLIO ALLOCATION As of 2/28/10 | |||
Sector | Percentage of Net Assets | ||
Financial | 37.36 | % | |
Industrial | 17.70 | ||
Energy | 12.72 | ||
Basic Materials | 10.09 | ||
Communications | 8.34 | ||
Utilities | 5.13 | ||
Consumer Cyclical | 3.96 | ||
Consumer Non-Cyclical | 3.93 | ||
Short-Term and Other Net Assets | 0.77 | ||
TOTAL | 100.00 | % | |
TEN LARGEST FUND HOLDINGS As of 2/28/10 | |||
Security | Percentage of Net Assets | ||
Erste Group Bank AG | 14.31 | % | |
OMV AG | 11.47 | ||
voestalpine AG | 8.43 | ||
Telekom Austria AG | 8.34 | ||
Oesterreichische Elektrizitaetswirtschafts AG Class A | 4.81 | ||
Raiffeisen International Bank Holding AG | 4.53 | ||
Andritz AG | 4.31 | ||
Wienerberger AG | 4.22 | ||
Vienna Insurance Group AG | 4.14 | ||
IMMOEAST AG | 3.85 | ||
TOTAL | 68.41 | % | |
FUND PERFORMANCE OVERVIEWS | 1 |
Table of Contents
Fund Performance Overview
iSHARES® MSCI BELGIUM INVESTABLE MARKET INDEX FUND
Performance as of February 28, 2010
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 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, 2010, the total return for the Fund was 4.43%, while the total return for the Index was 5.38%.
Average Annual Total Returns | ||||||||||||||||
Year Ended 2/28/10 | Five Years Ended 2/28/10 | Ten Years Ended 2/28/10 | ||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||
68.98% | 70.21% | 71.31% | (4.71)% | (4.64)% | (5.34)% | 3.45% | 3.26% | 1.81% | ||||||||
Cumulative Total Returns | ||||||||||||||||
Year Ended 2/28/10 | Five Years Ended 2/28/10 | Ten Years Ended 2/28/10 | ||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||
68.98% | 70.21% | 71.31% | (21.43)% | (21.14)% | (23.98)% | 40.41% | 37.79% | 19.69% |
“Average Annual Total Returns” represent the average annual change in value of an investment over the period(s) indicated. “Cumulative Total Returns” represent the total change in value of an investment over the period(s) indicated.
Certain sectors and markets performed exceptionally well based on market conditions during the one-year period. Achieving such exceptional returns involves the risk of volatility and investors should not expect that such exceptional returns will be repeated.
The Fund’s per share net asset value or “NAV” is the value of one share of the Fund as calculated in accordance with the standard formula for valuing mutual fund shares. The NAV return is based on the NAV of the Fund and the market return is based on the market price per share of the Fund. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which 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 performance shown in the table(s) above assumes reinvestment of all dividends and capital gain distributions and does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption or sale of fund shares. The investment return and principal value of shares of the Fund will vary with changes in market conditions. Shares of the Fund may be worth more or less than their original cost when they are redeemed or sold in the market. The Fund’s past performance is no guarantee of future results.
PORTFOLIO ALLOCATION As of 2/28/10 | |||
Sector | Percentage of Net Assets | ||
Consumer Non-Cyclical | 42.44 | % | |
Financial | 21.44 | ||
Basic Materials | 9.85 | ||
Diversified | 9.25 | ||
Communications | 8.86 | ||
Industrial | 5.04 | ||
Consumer Cyclical | 2.09 | ||
Technology | 0.23 | ||
Short-Term and Other Net Assets | 0.80 | ||
TOTAL | 100.00 | % | |
TEN LARGEST FUND HOLDINGS As of 2/28/10 | |||
Security | Percentage of Net Assets | ||
Anheuser-Busch InBev NV | 23.98 | % | |
Fortis | 6.98 | ||
KBC Groep NV | 6.24 | ||
Delhaize Group SA | 6.19 | ||
Groupe Bruxelles Lambert SA | 5.84 | ||
Belgacom SA | 4.91 | ||
Solvay SA | 4.55 | ||
UCB SA | 4.49 | ||
Colruyt SA | 4.15 | ||
Umicore | 3.44 | ||
TOTAL | 70.77 | % | |
2 | 2010 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Fund Performance Overview
iSHARES® MSCI EMERGING MARKETS EASTERN EUROPE INDEX FUND
Performance as of February 28, 2010
The iShares MSCI Emerging Markets Eastern Europe 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 Eastern Europe IndexSM (the “Index”). The Index is a free-float adjusted market capitalization index designed to measure equity market performance of the following four emerging market countries: the Czech Republic, Hungary, Poland and Russia. The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. For the period from September 30, 2009 (inception date of the Fund) through February 28, 2010, the total return for the Fund was 5.48%, while the total return for the Index was 5.50%.
Cumulative Total Return | ||||||||||||||||
Inception to 2/28/10 | ||||||||||||||||
NAV | MARKET | INDEX | ||||||||||||||
5.48% | 5.56% | 5.50% |
“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 9/30/09.
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 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 (10/2/09), 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 performance shown in the table(s) above assumes reinvestment of all dividends and capital gain distributions and does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption or sale of fund shares. The investment return and principal value of shares of the Fund will vary with changes in market conditions. Shares of the Fund may be worth more or less than their original cost when they are redeemed or sold in the market. The Fund’s past performance is no guarantee of future results.
PORTFOLIO ALLOCATION As of 2/28/10 | |||
Sector | Percentage of Net Assets | ||
Energy | 45.96 | % | |
Financial | 22.14 | ||
Basic Materials | 12.82 | ||
Communications | 11.78 | ||
Utilities | 3.56 | ||
Consumer Non-Cyclical | 2.41 | ||
Industrial | 0.75 | ||
Technology | 0.47 | ||
Short-Term and Other Net Assets | 0.11 | ||
TOTAL | 100.00 | % | |
TEN LARGEST FUND HOLDINGS As of 2/28/10 | |||
Security | Percentage of Net Assets | ||
OAO Gazprom SP ADR (Russia) | 20.19 | % | |
LUKOIL SP ADR (Russia) | 9.69 | ||
Sberbank GDR (Russia) | 8.65 | ||
MMC Norilsk Nickel SP ADR (Russia) | 4.88 | ||
Mobile TeleSystems SP ADR (Russia) | 4.41 | ||
OJSC Rosneft Oil Co. SP GDR (Russia) | 4.23 | ||
CEZ AS (Czech Republic) | 3.07 | ||
Powszechna Kasa Oszczednosci Bank Polski SA (Poland) | 3.02 | ||
OAO Tatneft SP ADR (Russia) | 2.99 | ||
OTP Bank Nyrt (Hungary) | 2.87 | ||
TOTAL | 64.00 | % | |
FUND PERFORMANCE OVERVIEWS | 3 |
Table of Contents
Fund Performance Overview
iSHARES® MSCI EMU INDEX FUND
Performance as of February 28, 2010
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, 2010, the total return for the Fund was (4.83)%, while the total return for the Index was (4.72)%.
Average Annual Total Returns | ||||||||||||||||
Year Ended 2/28/10 | Five Years Ended 2/28/10 | Inception to 2/28/10 | ||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||
54.06% | 55.18% | 54.12% | 1.03% | 0.98% | 1.20% | 0.18% | 0.15% | 0.45% | ||||||||
Cumulative Total Returns | ||||||||||||||||
Year Ended 2/28/10 | Five Years Ended 2/28/10 | Inception to 2/28/10 | ||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||
54.06% | 55.18% | 54.12% | 5.27% | 4.99% | 6.14% | 1.79% | 1.43% | 4.36% |
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.
Certain sectors and markets performed exceptionally well based on market conditions during the one-year period. Achieving such exceptional returns involves the risk of volatility and investors should not expect that such exceptional returns will be repeated.
The Fund’s per share net asset value or “NAV” is the value of one share of the Fund as calculated in accordance with the standard formula for valuing mutual fund shares. The NAV return is based on the NAV of the Fund and the market return is based on the market price per share of the Fund. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which shares of the Fund are listed for trading, as of the time that the Fund’s NAV is calculated. Since shares of the Fund did not trade in the secondary market until 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 performance shown in the table(s) above assumes reinvestment of all dividends and capital gain distributions and does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption or sale of fund shares. The investment return and principal value of shares of the Fund will vary with changes in market conditions. Shares of the Fund may be worth more or less than their original cost when they are redeemed or sold in the market. The Fund’s past performance is no guarantee of future results.
PORTFOLIO ALLOCATION As of 2/28/10 | |||
Sector | Percentage of Net Assets | ||
Financial | 24.84 | % | |
Consumer Non-Cyclical | 15.03 | ||
Communications | 12.76 | ||
Industrial | 12.02 | ||
Utilities | 9.71 | ||
Basic Materials | 8.00 | ||
Energy | 7.88 | ||
Consumer Cyclical | 5.57 | ||
Technology | 2.66 | ||
Diversified | 1.32 | ||
Short-Term and Other Net Assets | 0.21 | ||
TOTAL | 100.00 | % | |
TEN LARGEST FUND HOLDINGS As of 2/28/10 | |||
Security | Percentage of Net Assets | ||
Total SA (France) | 3.87 | % | |
Banco Santander SA (Spain) | 3.50 | ||
Telefonica SA (Spain) | 3.25 | ||
Sanofi-Aventis (France) | 2.53 | ||
Siemens AG Registered (Germany) | 2.32 | ||
BNP Paribas (France) | 2.25 | ||
E.ON AG (Germany) | 2.22 | ||
Eni SpA (Italy) | 1.93 | ||
Bayer AG (Germany) | 1.76 | ||
Allianz SE Registered (Germany) | 1.73 | ||
TOTAL | 25.36 | % | |
4 | 2010 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Fund Performance Overview
iSHARES® MSCI FRANCE INDEX FUND
Performance as of February 28, 2010
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 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, 2010, the total return for the Fund was (2.22)%, while the total return for the Index was (1.98)%.
Average Annual Total Returns | ||||||||||||||||
Year Ended 2/28/10 | Five Years Ended 2/28/10 | Ten Years Ended 2/28/10 | ||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||
53.55% | 54.83% | 53.75% | 1.65% | 1.57% | 1.87% | 0.57% | 0.34% | 0.80% | ||||||||
Cumulative Total Returns | ||||||||||||||||
Year Ended 2/28/10 | Five Years Ended 2/28/10 | Ten Years Ended 2/28/10 | ||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||
53.55% | 54.83% | 53.75% | 8.54% | 8.11% | 9.71% | 5.89% | 3.44% | 8.33% |
“Average Annual Total Returns” represent the average annual change in value of an investment over the period(s) indicated. “Cumulative Total Returns” represent the total change in value of an investment over the period(s) indicated.
Certain sectors and markets performed exceptionally well based on market conditions during the one-year period. Achieving such exceptional returns involves the risk of volatility and investors should not expect that such exceptional returns will be repeated.
The Fund’s per share net asset value or “NAV” is the value of one share of the Fund as calculated in accordance with the standard formula for valuing mutual fund shares. The NAV return is based on the NAV of the Fund and the market return is based on the market price per share of the Fund. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which 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 performance shown in the table(s) above assumes reinvestment of all dividends and capital gain distributions and does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption or sale of fund shares. The investment return and principal value of shares of the Fund will vary with changes in market conditions. Shares of the Fund may be worth more or less than their original cost when they are redeemed or sold in the market. The Fund’s past performance is no guarantee of future results.
PORTFOLIO ALLOCATION As of 2/28/10 | |||
Sector | Percentage of Net Assets | ||
Consumer Non-Cyclical | 20.44 | % | |
Financial | 18.76 | ||
Industrial | 14.04 | ||
Energy | 12.54 | ||
Communications | 10.61 | ||
Utilities | 7.44 | ||
Basic Materials | 6.26 | ||
Consumer Cyclical | 5.11 | ||
Diversified | 2.59 | ||
Technology | 2.05 | ||
Short-Term and Other Net Assets | 0.16 | ||
TOTAL | 100.00 | % | |
TEN LARGEST FUND HOLDINGS As of 2/28/10 | |||
Security | Percentage of Net Assets | ||
Total SA | 11.48 | % | |
Sanofi-Aventis | 7.51 | ||
BNP Paribas | 6.68 | ||
GDF Suez | 4.45 | ||
France Telecom SA | 4.24 | ||
Societe Generale | 3.37 | ||
AXA | 3.33 | ||
ArcelorMittal | 3.19 | ||
Danone SA | 3.13 | ||
Vivendi SA | 3.01 | ||
TOTAL | 50.39 | % | |
FUND PERFORMANCE OVERVIEWS | 5 |
Table of Contents
Fund Performance Overview
iSHARES® MSCI GERMANY INDEX FUND
Performance as of February 28, 2010
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 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, 2010, the total return for the Fund was (3.49)%, while the total return for the Index was (3.46)%.
Average Annual Total Returns | ||||||||||||||||
Year Ended 2/28/10 | Five Years Ended 2/28/10 | Ten Years Ended 2/28/10 | ||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||
53.30% | 53.50% | 53.59% | 3.95% | 3.91% | 4.10% | (0.42)% | (0.55)% | (0.34)% | ||||||||
Cumulative Total Returns | ||||||||||||||||
Year Ended 2/28/10 | Five Years Ended 2/28/10 | Ten Years Ended 2/28/10 | ||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||
53.30% | 53.50% | 53.59% | 21.35% | 21.15% | 22.25% | (4.09)% | (5.39)% | (3.35)% |
“Average Annual Total Returns” represent the average annual change in value of an investment over the period(s) indicated. “Cumulative Total Returns” represent the total change in value of an investment over the period(s) indicated.
Certain sectors and markets performed exceptionally well based on market conditions during the one-year period. Achieving such exceptional returns involves the risk of volatility and investors should not expect that such exceptional returns will be repeated.
The Fund’s per share net asset value or “NAV” is the value of one share of the Fund as calculated in accordance with the standard formula for valuing mutual fund shares. The NAV return is based on the NAV of the Fund and the market return is based on the market price per share of the Fund. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which 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 performance shown in the table(s) above assumes reinvestment of all dividends and capital gain distributions and does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption or sale of fund shares. The investment return and principal value of shares of the Fund will vary with changes in market conditions. Shares of the Fund may be worth more or less than their original cost when they are redeemed or sold in the market. The Fund’s past performance is no guarantee of future results.
PORTFOLIO ALLOCATION As of 2/28/10 | |||
Sector | Percentage of Net Assets | ||
Financial | 19.78 | % | |
Basic Materials | 18.03 | ||
Industrial | 16.72 | ||
Utilities | 14.12 | ||
Consumer Cyclical | 11.56 | ||
Consumer Non-Cyclical | 8.37 | ||
Technology | 5.63 | ||
Communications | 5.08 | ||
Diversified | 0.39 | ||
Energy | 0.16 | ||
Short-Term and Other Net Assets | 0.16 | ||
TOTAL | 100.00 | % | |
TEN LARGEST FUND HOLDINGS As of 2/28/10 | |||
Security | Percentage of Net Assets | ||
Siemens AG Registered | 9.62 | % | |
E.ON AG | 9.36 | ||
Bayer AG | 7.40 | ||
Allianz SE Registered | 7.11 | ||
BASF SE | 6.96 | ||
Daimler AG Registered | 5.05 | ||
SAP AG | 4.82 | ||
Deutsche Bank AG Registered | 4.78 | ||
Deutsche Telekom AG Registered | 4.77 | ||
RWE AG | 4.55 | ||
TOTAL | 64.42 | % | |
6 | 2010 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Fund Performance Overview
iSHARES® MSCI ITALY INDEX FUND
Performance as of February 28, 2010
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 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, 2010, the total return for the Fund was (9.70)%, while the total return for the Index was (9.85)%.
Average Annual Total Returns | ||||||||||||||||
Year Ended 2/28/10 | Five Years Ended 2/28/10 | Ten Years Ended 2/28/10 | ||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||
46.55% | 48.30% | 47.33% | (4.71)% | (4.74)% | (4.91)% | (0.83)% | (0.89)% | (0.99)% | ||||||||
Cumulative Total Returns | ||||||||||||||||
Year Ended 2/28/10 | Five Years Ended 2/28/10 | Ten Years Ended 2/28/10 | ||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||
46.55% | 48.30% | 47.33% | (21.42)% | (21.55)% | (22.26)% | (8.03)% | (8.53)% | (9.46)% |
“Average Annual Total Returns” represent the average annual change in value of an investment over the period(s) indicated. “Cumulative Total Returns” represent the total change in value of an investment over the period(s) indicated.
Certain sectors and markets performed exceptionally well based on market conditions during the one-year period. Achieving such exceptional returns involves the risk of volatility and investors should not expect that such exceptional returns will be repeated.
The Fund’s per share net asset value or “NAV” is the value of one share of the Fund as calculated in accordance with the standard formula for valuing mutual fund shares. The NAV return is based on the NAV of the Fund and the market return is based on the market price per share of the Fund. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which 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 performance shown in the table(s) above assumes reinvestment of all dividends and capital gain distributions and does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption or sale of fund shares. The investment return and principal value of shares of the Fund will vary with changes in market conditions. Shares of the Fund may be worth more or less than their original cost when they are redeemed or sold in the market. The Fund’s past performance is no guarantee of future results.
PORTFOLIO ALLOCATION As of 2/28/10 | |||
Sector | Percentage of Net Assets | ||
Financial | 39.12 | % | |
Energy | 21.32 | ||
Utilities | 15.73 | ||
Communications | 6.92 | ||
Industrial | 6.38 | ||
Consumer Non-Cyclical | 6.22 | ||
Consumer Cyclical | 3.76 | ||
Diversified | 0.46 | ||
Short-Term and Other Net Assets | 0.09 | ||
TOTAL | 100.00 | % | |
TEN LARGEST FUND HOLDINGS As of 2/28/10 | |||
Security | Percentage of Net Assets | ||
Eni SpA | 18.43 | % | |
UniCredit SpA | 12.36 | ||
Enel SpA | 10.15 | ||
Intesa Sanpaolo SpA | 8.13 | ||
Assicurazioni Generali SpA | 4.76 | ||
Terna SpA | 4.34 | ||
Telecom Italia SpA | 3.47 | ||
Tenaris SA | 3.17 | ||
Unione di Banche Italiane ScpA | 3.17 | ||
Saipem SpA | 2.89 | ||
TOTAL | 70.87 | % | |
FUND PERFORMANCE OVERVIEWS | 7 |
Table of Contents
Fund Performance Overview
iSHARES® MSCI NETHERLANDS INVESTABLE MARKET INDEX FUND
Performance as of February 28, 2010
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, 2010, the total return for the Fund was 3.39%, while the total return for the Index was 3.55%.
Average Annual Total Returns | ||||||||||||||||
Year Ended 2/28/10 | Five Years Ended 2/28/10 | Ten Years Ended 2/28/10 | ||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||
64.41% | 66.21% | 65.87% | 2.65% | 2.62% | 3.18% | 0.36% | 0.22% | 1.22% | ||||||||
Cumulative Total Returns | ||||||||||||||||
Year Ended 2/28/10 | Five Years Ended 2/28/10 | Ten Years Ended 2/28/10 | ||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||
64.41% | 66.21% | 65.87% | 13.97% | 13.79% | 16.94% | 3.63% | 2.20% | 12.88% |
“Average Annual Total Returns” represent the average annual change in value of an investment over the period(s) indicated. “Cumulative Total Returns” represent the total change in value of an investment over the period(s) indicated.
Certain sectors and markets performed exceptionally well based on market conditions during the one-year period. Achieving such exceptional returns involves the risk of volatility and investors should not expect that such exceptional returns will be repeated.
The Fund’s per share net asset value or “NAV” is the value of one share of the Fund as calculated in accordance with the standard formula for valuing mutual fund shares. The NAV return is based on the NAV of the Fund and the market return is based on the market price per share of the Fund. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which 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 performance shown in the table(s) above assumes reinvestment of all dividends and capital gain distributions and does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption or sale of fund shares. The investment return and principal value of shares of the Fund will vary with changes in market conditions. Shares of the Fund may be worth more or less than their original cost when they are redeemed or sold in the market. The Fund’s past performance is no guarantee of future results.
PORTFOLIO ALLOCATION As of 2/28/10 | |||
Sector | Percentage of Net Assets | ||
Consumer Non-Cyclical | 31.95 | % | |
Financial | 19.05 | ||
Industrial | 17.84 | ||
Communications | 14.62 | ||
Basic Materials | 6.59 | ||
Technology | 5.92 | ||
Energy | 2.43 | ||
Diversified | 0.80 | ||
Consumer Cyclical | 0.51 | ||
Short-Term and Other Net Assets | 0.29 | ||
TOTAL | 100.00 | % | |
TEN LARGEST FUND HOLDINGS As of 2/28/10 | |||
Security | Percentage of Net Assets | ||
Unilever NV CVA | 17.63 | % | |
ING Groep NV CVA | 11.59 | ||
Koninklijke Philips Electronics NV | 10.22 | ||
Koninklijke KPN NV | 9.54 | ||
Koninklijke Ahold NV | 4.80 | ||
ASML Holding NV | 4.60 | ||
Akzo Nobel NV | 4.25 | ||
Heineken NV | 3.83 | ||
AEGON NV | 3.53 | ||
TNT NV | 3.49 | ||
TOTAL | 73.48 | % | |
8 | 2010 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Fund Performance Overview
iSHARES® MSCI SPAIN INDEX FUND
Performance as of February 28, 2010
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 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, 2010, the total return for the Fund was (12.62)%, while the total return for the Index was (12.86)% .
Average Annual Total Returns | ||||||||||||||||
Year Ended 2/28/10 | Five Years Ended 2/28/10 | Ten Years Ended 2/28/10 | ||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||
51.67% | 53.08% | 54.79% | 5.77% | 5.77% | 5.95% | 6.22% | 6.13% | 5.49% | ||||||||
Cumulative Total Returns | ||||||||||||||||
Year Ended 2/28/10 | Five Years Ended 2/28/10 | Ten Years Ended 2/28/10 | ||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||
51.67% | 53.08% | 54.79% | 32.39% | 32.37% | 33.49% | 82.81% | 81.30% | 70.73% |
“Average Annual Total Returns” represent the average annual change in value of an investment over the period(s) indicated. “Cumulative Total Returns” represent the total change in value of an investment over the period(s) indicated.
Certain sectors and markets performed exceptionally well based on market conditions during the one-year period. Achieving such exceptional returns involves the risk of volatility and investors should not expect that such exceptional returns will be repeated.
The Fund’s per share net asset value or “NAV” is the value of one share of the Fund as calculated in accordance with the standard formula for valuing mutual fund shares. The NAV return is based on the NAV of the Fund and the market return is based on the market price per share of the Fund. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which 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 performance shown in the table(s) above assumes reinvestment of all dividends and capital gain distributions and does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption or sale of fund shares. The investment return and principal value of shares of the Fund will vary with changes in market conditions. Shares of the Fund may be worth more or less than their original cost when they are redeemed or sold in the market. The Fund’s past performance is no guarantee of future results.
PORTFOLIO ALLOCATION As of 2/28/10 | |||
Sector | Percentage of Net Assets | ||
Financial | 43.12 | % | |
Communications | 19.94 | ||
Utilities | 10.73 | ||
Industrial | 6.37 | ||
Consumer Non-Cyclical | 5.60 | ||
Consumer Cyclical | 5.40 | ||
Energy | 5.35 | ||
Basic Materials | 1.68 | ||
Technology | 1.63 | ||
Short-Term and Other Net Assets | 0.18 | ||
TOTAL | 100.00 | % | |
TEN LARGEST FUND HOLDINGS As of 2/28/10 | |||
Security | Percentage of Net Assets | ||
Banco Santander SA | 23.09 | % | |
Telefonica SA | 18.94 | ||
Banco Bilbao Vizcaya Argentaria SA | 6.04 | ||
Industria de Diseno Textil SA | 4.87 | ||
Iberdrola SA | 4.72 | ||
Repsol YPF SA | 4.68 | ||
Criteria CaixaCorp SA | 3.69 | ||
Abertis Infraestructuras SA | 3.52 | ||
Mapfre SA | 3.26 | ||
Actividades de Construcciones y Servicios SA | 3.17 | ||
TOTAL | 75.98 | % | |
FUND PERFORMANCE OVERVIEWS | 9 |
Table of Contents
Fund Performance Overview
iSHARES® MSCI SWEDEN INDEX FUND
Performance as of February 28, 2010
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 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, 2010, the total return for the Fund was 4.59%, while the total return for the Index was 4.87% .
Average Annual Total Returns | ||||||||||||||||
Year Ended 2/28/10 | Five Years Ended 2/28/10 | Ten Years Ended 2/28/10 | ||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||
92.28% | 93.80% | 92.27% | 5.35% | 5.33% | 5.34% | 0.10% | 0.00% | (0.53)% | ||||||||
Cumulative Total Returns | ||||||||||||||||
Year Ended 2/28/10 | Five Years Ended 2/28/10 | Ten Years Ended 2/28/10 | ||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||
92.28% | 93.80% | 92.27% | 29.77% | 29.62% | 29.73% | 0.99% | (0.01)% | (5.17)% |
“Average Annual Total Returns” represent the average annual change in value of an investment over the period(s) indicated. “Cumulative Total Returns” represent the total change in value of an investment over the period(s) indicated.
Certain sectors and markets performed exceptionally well based on market conditions during the one-year period. Achieving such exceptional returns involves the risk of volatility and investors should not expect that such exceptional returns will be repeated.
The Fund’s per share net asset value or “NAV” is the value of one share of the Fund as calculated in accordance with the standard formula for valuing mutual fund shares. The NAV return is based on the NAV of the Fund and the market return is based on the market price per share of the Fund. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which 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 performance shown in the table(s) above assumes reinvestment of all dividends and capital gain distributions and does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption or sale of fund shares. The investment return and principal value of shares of the Fund will vary with changes in market conditions. Shares of the Fund may be worth more or less than their original cost when they are redeemed or sold in the market. The Fund’s past performance is no guarantee of future results.
PORTFOLIO ALLOCATION As of 2/28/10 | |||
Sector | Percentage of Net Assets | ||
Financial | 27.97 | % | |
Industrial | 23.17 | ||
Communications | 21.31 | ||
Consumer Cyclical | 15.28 | ||
Consumer Non-Cyclical | 6.13 | ||
Basic Materials | 5.29 | ||
Energy | 0.63 | ||
Short-Term and Other Net Assets | 0.22 | ||
TOTAL | 100.00 | % | |
TEN LARGEST FUND HOLDINGS As of 2/28/10 | |||
Security | Percentage of Net Assets | ||
Nordea Bank AB | 11.87 | % | |
Hennes & Mauritz AB Class B | 11.66 | ||
Telefonaktiebolaget LM Ericsson Class B | 11.31 | ||
TeliaSonera AB | 5.84 | ||
Svenska Handelsbanken AB Class A | 4.88 | ||
Sandvik AB | 4.09 | ||
Atlas Copco AB Class A | 3.57 | ||
Skandinaviska Enskilda Banken AB Class A | 3.46 | ||
Volvo AB Class B | 3.44 | ||
Svenska Cellulosa AB Class B | 3.18 | ||
TOTAL | 63.30 | % | |
10 | 2010 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Fund Performance Overview
iSHARES® MSCI SWITZERLAND INDEX FUND
Performance as of February 28, 2010
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, 2010, the total return for the Fund was 5.70%, while the total return for the Index was 5.97%.
Average Annual Total Returns | ||||||||||||||||
Year Ended 2/28/10 | Five Years Ended 2/28/10 | Ten Years Ended 2/28/10 | ||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||
55.69% | 57.78% | 57.62% | 5.90% | 5.70% | 5.51% | 5.37% | 5.22% | 5.82% | ||||||||
Cumulative Total Returns | ||||||||||||||||
Year Ended 2/28/10 | Five Years Ended 2/28/10 | Ten Years Ended 2/28/10 | ||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||
55.69% | 57.78% | 57.62% | 33.18% | 31.95% | 30.74% | 68.78% | 66.26% | 76.13% |
“Average Annual Total Returns” represent the average annual change in value of an investment over the period(s) indicated. “Cumulative Total Returns” represent the total change in value of an investment over the period(s) indicated.
Certain sectors and markets performed exceptionally well based on market conditions during the one-year period. Achieving such exceptional returns involves the risk of volatility and investors should not expect that such exceptional returns will be repeated.
The Fund’s per share net asset value or “NAV” is the value of one share of the Fund as calculated in accordance with the standard formula for valuing mutual fund shares. The NAV return is based on the NAV of the Fund and the market return is based on the market price per share of the Fund. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which 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 performance shown in the table(s) above assumes reinvestment of all dividends and capital gain distributions and does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption or sale of fund shares. The investment return and principal value of shares of the Fund will vary with changes in market conditions. Shares of the Fund may be worth more or less than their original cost when they are redeemed or sold in the market. The Fund’s past performance is no guarantee of future results.
PORTFOLIO ALLOCATION As of 2/28/10 | |||
Sector | Percentage of Net Assets | ||
Consumer Non-Cyclical | 54.64 | % | |
Financial | 20.99 | ||
Industrial | 9.41 | ||
Basic Materials | 6.01 | ||
Consumer Cyclical | 5.09 | ||
Communications | 2.28 | ||
Technology | 0.35 | ||
Utilities | 0.29 | ||
Short-Term and Other Net Assets | 0.94 | ||
TOTAL | 100.00 | % | |
TEN LARGEST FUND HOLDINGS As of 2/28/10 | |||
Security | Percentage of Net Assets | ||
Nestle SA Registered | 18.72 | % | |
Roche Holding AG Genusschein | 13.82 | ||
Novartis AG Registered | 11.87 | ||
Credit Suisse Group AG Registered | 5.14 | ||
Zurich Financial Services AG Registered | 4.73 | ||
ABB Ltd. Registered | 4.69 | ||
UBS AG Registered | 4.67 | ||
Syngenta AG Registered | 3.82 | ||
Compagnie Financiere Richemont SA Class A Bearer Units | 3.11 | ||
Synthes Inc. | 2.49 | ||
TOTAL | 73.06 | % | |
FUND PERFORMANCE OVERVIEWS | 11 |
Table of Contents
Fund Performance Overview
iSHARES® MSCI UNITED KINGDOM INDEX FUND
Performance as of February 28, 2010
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, 2010, the total return for the Fund was 2.79%, while the total return for the Index was 3.13% .
Average Annual Total Returns | ||||||||||||||||
Year Ended 2/28/10 | Five Years Ended 2/28/10 | Ten Years Ended 2/28/10 | ||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||
54.56% | 56.55% | 56.12% | (0.35)% | (0.26)% | 0.27% | 1.32% | 1.13% | 1.92% | ||||||||
Cumulative Total Returns | ||||||||||||||||
Year Ended 2/28/10 | Five Years Ended 2/28/10 | Ten Years Ended 2/28/10 | ||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||
54.56% | 56.55% | 56.12% | (1.73)% | (1.28)% | 1.35% | 14.02% | 11.92% | 21.00% |
“Average Annual Total Returns” represent the average annual change in value of an investment over the period(s) indicated. “Cumulative Total Returns” represent the total change in value of an investment over the period(s) indicated.
Certain sectors and markets performed exceptionally well based on market conditions during the one-year period. Achieving such exceptional returns involves the risk of volatility and investors should not expect that such exceptional returns will be repeated.
The Fund’s per share net asset value or “NAV” is the value of one share of the Fund as calculated in accordance with the standard formula for valuing mutual fund shares. The NAV return is based on the NAV of the Fund and the market return is based on the market price per share of the Fund. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which 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 performance shown in the table(s) above assumes reinvestment of all dividends and capital gain distributions and does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption or sale of fund shares. The investment return and principal value of shares of the Fund will vary with changes in market conditions. Shares of the Fund may be worth more or less than their original cost when they are redeemed or sold in the market. The Fund’s past performance is no guarantee of future results.
PORTFOLIO ALLOCATION As of 2/28/10 | |||
Sector | Percentage of Net Assets | ||
Consumer Non-Cyclical | 24.79 | % | |
Financial | 21.97 | ||
Energy | 20.29 | ||
Basic Materials | 12.27 | ||
Communications | 8.68 | ||
Utilities | 3.96 | ||
Consumer Cyclical | 3.72 | ||
Industrial | 3.09 | ||
Technology | 0.48 | ||
Diversified | 0.13 | ||
Short-Term and Other Net Assets | 0.62 | ||
TOTAL | 100.00 | % | |
TEN LARGEST FUND HOLDINGS As of 2/28/10 | |||
Security | Percentage of Net Assets | ||
HSBC Holdings PLC | 9.27 | % | |
BP PLC | 8.03 | ||
Vodafone Group PLC | 5.51 | ||
Royal Dutch Shell PLC Class A | 4.69 | ||
GlaxoSmithKline PLC | 4.67 | ||
Royal Dutch Shell PLC Class B | 3.43 | ||
Rio Tinto PLC | 3.42 | ||
British American Tobacco PLC | 3.29 | ||
BHP Billiton PLC | 3.27 | ||
AstraZeneca PLC | 3.09 | ||
TOTAL | 48.67 | % | |
12 | 2010 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, 2009 to February 28, 2010.
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 a (9/1/09) | Ending Account Value a (2/28/10) | Annualized Expense Ratio | Expenses Paid During Period b (9/1/09 to 2/28/10) | |||||
Austria Investable Market | |||||||||
Actual | $1,000.00 | $ 939.60 | 0.54 | % | $2.60 | ||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,022.10 | 0.54 | 2.71 | |||||
Belgium Investable Market | |||||||||
Actual | 1,000.00 | 1,044.30 | 0.54 | 2.74 | |||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,022.10 | 0.54 | 2.71 | |||||
Emerging Markets Eastern Europe | |||||||||
Actual | 1,000.00 | 1,054.80 | 0.69 | 2.93 | |||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,021.40 | 0.69 | 3.46 | |||||
EMU | |||||||||
Actual | 1,000.00 | 951.70 | 0.54 | 2.61 | |||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,022.10 | 0.54 | 2.71 | |||||
SHAREHOLDER EXPENSES | 13 |
Table of Contents
Shareholder Expenses (Unaudited) (Continued)
iSHARES®, INC.
iShares MSCI Index Fund | Beginning Account Value a (9/1/09) | Ending Account Value a (2/28/10) | Annualized Expense Ratio | Expenses Paid During Period b (9/1/09 to 2/28/10) | |||||
France | |||||||||
Actual | $1,000.00 | $977.80 | 0.54 | % | $2.65 | ||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,022.10 | 0.54 | 2.71 | |||||
Germany | |||||||||
Actual | 1,000.00 | 965.10 | 0.54 | 2.63 | |||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,022.10 | 0.54 | 2.71 | |||||
Italy | |||||||||
Actual | 1,000.00 | 903.00 | 0.54 | 2.55 | |||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,022.10 | 0.54 | 2.71 | |||||
Netherlands Investable Market | |||||||||
Actual | 1,000.00 | 1,033.90 | 0.54 | 2.72 | |||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,022.10 | 0.54 | 2.71 | |||||
Spain | |||||||||
Actual | 1,000.00 | 873.80 | 0.54 | 2.51 | |||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,022.10 | 0.54 | 2.71 | |||||
Sweden | |||||||||
Actual | 1,000.00 | 1,045.90 | 0.54 | 2.74 | |||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,022.10 | 0.54 | 2.71 | |||||
Switzerland | |||||||||
Actual | 1,000.00 | 1,057.00 | 0.54 | 2.75 | |||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,022.10 | 0.54 | 2.71 | |||||
United Kingdom | |||||||||
Actual | 1,000.00 | 1,027.90 | 0.54 | 2.72 | |||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,022.10 | 0.54 | 2.71 |
a | Account values are based on a start date of September 30, 2009 (commencement of operations) for the iShares MSCI Emerging Markets Eastern Europe Index Fund. |
b | Except for the actual expenses of the iShares MSCI Emerging Markets Eastern Europe Index Fund, actual and hypothetical expenses are calculated using each Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (181 days) and divided by the number of days in the year (365 days). Actual expenses for the iShares MSCI Emerging Markets Eastern Europe Index Fund, which commenced operations on September 30, 2009, are calculated using the Fund’s annualized expenses ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (151 days) and divided by the number of days in the year (365 days). |
14 | 2010 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited)
iSHARES® MSCI AUSTRIA INVESTABLE MARKET INDEX FUND
February 28, 2010
Security | Shares | Value | |||
COMMON STOCKS – 99.23% | |||||
AUTO MANUFACTURERS – 0.53% | |||||
Rosenbauer International AG | 16,848 | $ | 698,741 | ||
698,741 | |||||
BANKS – 18.84% | |||||
Erste Group Bank AGa | 503,064 | 18,996,325 | |||
Raiffeisen International Bank | |||||
Holding AGa | 133,488 | 6,011,645 | |||
25,007,970 | |||||
BIOTECHNOLOGY – 2.38% | |||||
Intercell AGb | 108,504 | 3,161,410 | |||
3,161,410 | |||||
BUILDING MATERIALS – 4.22% | |||||
Wienerberger AGb | 326,448 | 5,595,525 | |||
5,595,525 | |||||
COMMERCIAL SERVICES – 0.36% | |||||
Kapsch TrafficCom AG | 14,615 | 477,685 | |||
477,685 | |||||
ELECTRIC – 5.13% | |||||
EVN AG | 24,125 | 422,736 | |||
Oesterreichische Elektrizitaetswirtschafts AG Class A | 156,384 | 6,381,176 | |||
6,803,912 | |||||
ELECTRICAL COMPONENTS & EQUIPMENT – 1.39% | |||||
Zumtobel AGb | 86,544 | 1,840,101 | |||
1,840,101 | |||||
ENGINEERING & CONSTRUCTION – 1.67% | |||||
AI Airports International Ltd.a,b | 249,457 | 663,846 | |||
Flughafen Wien AG | 33,856 | 1,551,506 | |||
2,215,352 | |||||
ENTERTAINMENT – 3.43% | |||||
bwin Interactive Entertainment AGb | 83,520 | 4,559,190 | |||
4,559,190 | |||||
ENVIRONMENTAL CONTROL – 0.79% | |||||
BWT AG | 40,968 | 1,050,531 | |||
1,050,531 | |||||
FOOD – 1.19% | |||||
Agrana Beteiligungs AGa | 16,200 | 1,582,058 | |||
1,582,058 |
Security | Shares | Value | |||
FOREST PRODUCTS & PAPER – 1.66% | |||||
Mayr-Melnhof Karton AG | 23,832 | $ | 2,209,649 | ||
2,209,649 | |||||
INSURANCE – 4.14% | |||||
Vienna Insurance Group AG | 113,688 | 5,490,759 | |||
5,490,759 | |||||
IRON & STEEL – 8.43% | |||||
voestalpine AG | 316,656 | 11,188,116 | |||
11,188,116 | |||||
MACHINERY – 4.61% | |||||
Andritz AG | 100,512 | 5,719,936 | |||
A-TEC Industries AGa,b | 30,816 | 394,893 | |||
6,114,829 | |||||
MACHINERY – CONSTRUCTION & MINING – 0.69% | |||||
Palfinger AGa | 40,968 | 911,317 | |||
911,317 | |||||
MANUFACTURING – 2.33% | |||||
RHI AGb | 66,240 | 1,951,687 | |||
Semperit AG Holding | 30,384 | 1,139,045 | |||
3,090,732 | |||||
OIL & GAS – 11.47% | |||||
OMV AG | 410,040 | 15,220,619 | |||
15,220,619 | |||||
OIL & GAS SERVICES – 1.25% | |||||
Schoeller-Bleckmann Oilfield Equipment AG | 32,832 | 1,653,335 | |||
1,653,335 | |||||
REAL ESTATE – 14.38% | |||||
Atrium European Real | 587,016 | 3,741,140 | |||
CA Immo International AGb | 81,290 | 565,776 | |||
CA Immobilien Anlagen AGb | 235,080 | 2,329,107 | |||
conwert Immobilien Invest SEb | 204,696 | 2,257,137 | |||
ECO Business-Immobilien AGb | 120,240 | 697,389 | |||
IMMOEAST AGa,b | 1,073,304 | 5,111,936 | |||
IMMOFINANZ AGa,b | 964,584 | 3,146,119 | |||
Sparkassen Immobilien AGb | 199,008 | 1,235,717 | |||
19,084,321 | |||||
TELECOMMUNICATIONS – 8.34% | |||||
Telekom Austria AG | 842,040 | 11,066,141 | |||
11,066,141 |
SCHEDULESOF INVESTMENTS | 15 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI AUSTRIA INVESTABLE MARKET INDEX FUND
February 28, 2010
Security | Shares | Value | ||||
TRANSPORTATION – 2.00% |
| |||||
Oesterreichische Post AG | 97,704 | $ | 2,654,733 | |||
2,654,733 | ||||||
TOTAL COMMON STOCKS | 131,677,026 | |||||
SHORT-TERM INVESTMENTS – 16.29% |
| |||||
MONEY MARKET FUNDS – 16.29% |
| |||||
BlackRock Cash Funds: | 18,570,702 | 18,570,702 | ||||
BlackRock Cash Funds: | 2,984,511 | 2,984,511 | ||||
BlackRock Cash Funds: | 68,754 | 68,754 | ||||
21,623,967 | ||||||
TOTAL SHORT-TERM INVESTMENTS | 21,623,967 | |||||
TOTAL INVESTMENTS IN |
| |||||
(Cost: $224,182,276) | 153,300,993 | |||||
Other Assets, Less Liabilities – (15.52)% | (20,600,401 | ) | ||||
NET ASSETS – 100.00% | $ | 132,700,592 | ||||
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 | 2010 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited)
iSHARES® MSCI BELGIUM INVESTABLE MARKET INDEX FUND
February 28, 2010
Security | Shares | Value | |||
COMMON STOCKS – 99.20% | |||||
AGRICULTURE – 0.58% | |||||
SIPEF NV | 11,596 | $ | 648,828 | ||
648,828 | |||||
APPAREL – 0.40% | |||||
Van de Velde NV | 10,704 | 452,548 | |||
452,548 | |||||
BANKS – 15.94% | |||||
Dexia SAa | 560,176 | 3,036,484 | |||
Fortisa | 2,274,377 | 7,806,163 | |||
KBC Groep NVa | 154,093 | 6,983,755 | |||
17,826,402 | |||||
BEVERAGES – 23.98% | |||||
Anheuser-Busch InBev NV | 534,531 | 26,815,481 | |||
26,815,481 | |||||
BIOTECHNOLOGY – 0.30% | |||||
Devgen NVa | 24,530 | 337,439 | |||
337,439 | |||||
BUILDING MATERIALS – 0.11% | |||||
Deceuninck NVa | 62,217 | 118,871 | |||
118,871 | |||||
CHEMICALS – 5.23% | |||||
Recticel SA | 20,770 | 166,101 | |||
Solvay SA | 53,074 | 5,086,765 | |||
Tessenderlo Chemie NV | 19,847 | 591,541 | |||
5,844,407 | |||||
DIVERSIFIED FINANCIAL SERVICES – 0.64% | |||||
KBC Ancora SCAa | 33,048 | 721,610 | |||
721,610 | |||||
ELECTRICAL COMPONENTS & EQUIPMENT – 1.84% | |||||
NV Bekaert SA | 12,711 | 2,061,655 | |||
2,061,655 | |||||
ELECTRONICS – 0.99% | |||||
Barco NVa | 12,711 | 505,309 | |||
EVS Broadcast Equipment SA | 11,150 | 598,613 | |||
1,103,922 | |||||
ENGINEERING & CONSTRUCTION – 0.36% | |||||
Compagnie d’Entreprises CFE SA | 6,244 | 302,076 | |||
Hamon & Cie (International) SA | 2,676 | 101,706 | |||
403,782 |
Security | Shares | Value | |||
ENTERTAINMENT – 0.21% | |||||
Kinepolis Group NV | 4,684 | $ | 230,377 | ||
230,377 | |||||
FOOD – 10.34% | |||||
Colruyt SA | 18,509 | 4,636,332 | |||
Delhaize Group SA | 89,200 | 6,922,856 | |||
11,559,188 | |||||
HEALTH CARE – PRODUCTS – 0.20% | |||||
Ion Beam Applications SA | 21,185 | 229,844 | |||
229,844 | |||||
HOLDING COMPANIES – DIVERSIFIED – 9.25% | |||||
Ackermans & van Haaren NV | 25,422 | 1,703,967 | |||
Compagnie Nationale a Portefeuille SA | 42,147 | 2,109,185 | |||
Groupe Bruxelles Lambert SA | 74,482 | 6,535,811 | |||
10,348,963 | |||||
INVESTMENT COMPANIES – 0.55% | |||||
RHJ International SAa | 74,035 | 613,286 | |||
613,286 | |||||
MANUFACTURING – 1.05% | |||||
Agfa-Gevaert NVa | 132,908 | 1,173,526 | |||
1,173,526 | |||||
MEDIA – 0.06% | |||||
Roularta Media Group NVa | 2,899 | 62,905 | |||
62,905 | |||||
MINING – 4.62% | |||||
Nyrstar NVa | 101,688 | 1,318,349 | |||
Umicore | 128,002 | 3,844,802 | |||
5,163,151 | |||||
PHARMACEUTICALS – 7.04% | |||||
Arseus NV | 26,139 | 306,422 | |||
Galapagos NVa | 61,548 | 957,538 | |||
Omega Pharma SA | 18,286 | 902,369 | |||
ThromboGenics NVa | 32,781 | 686,701 | |||
UCB SA | 113,295 | 5,024,945 | |||
7,877,975 | |||||
REAL ESTATE – 0.18% | |||||
Atenor Group SA | 4,014 | 203,559 | |||
203,559 |
SCHEDULESOF INVESTMENTS | 17 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI BELGIUM INVESTABLE MARKET INDEX FUND
February 28, 2010
Security | Shares | Value | |||
REAL ESTATE INVESTMENT TRUSTS – 3.26% | |||||
Befimmo SCA | 15,610 | $ | 1,276,900 | ||
Cofinimmo SA | 10,927 | 1,484,497 | |||
Intervest Offices NV | 5,798 | 178,744 | |||
Leasinvest Real Estate SCA | 928 | 79,203 | |||
Warehouses De Pauw SCA | 10,258 | 462,810 | |||
Wereldhave Belgium NV | 2,007 | 162,940 | |||
3,645,094 | |||||
RETAIL – 1.48% | |||||
SA D’Ieteren NV | 3,791 | 1,653,475 | |||
1,653,475 | |||||
SEMICONDUCTORS – 0.23% | |||||
Melexis NVa | 24,976 | 260,407 | |||
260,407 | |||||
TELECOMMUNICATIONS – 8.80% | |||||
Belgacom SA | 146,288 | 5,489,081 | |||
Mobistar SA | 37,241 | 2,207,234 | |||
Option NVa | 66,900 | 62,083 | |||
Telenet Group Holding NVa | 69,799 | 2,081,315 | |||
9,839,713 | |||||
TRANSPORTATION – 0.69% | |||||
Compagnie Maritime Belge SA | 12,711 | 382,842 | |||
Euronav SA | 19,047 | 387,562 | |||
770,404 | |||||
VENTURE CAPITAL – 0.87% | |||||
GIMV NV | 19,401 | 970,365 | |||
970,365 | |||||
TOTAL COMMON STOCKS | |||||
(Cost: $152,841,533) | 110,937,177 |
Security | Shares | Value | |||
SHORT-TERM INVESTMENTS – 0.07% | |||||
MONEY MARKET FUNDS – 0.07% | |||||
BlackRock Cash Funds: Treasury, | 84,049 | $ | 84,049 | ||
84,049 | |||||
TOTAL SHORT-TERM INVESTMENTS | |||||
(Cost: $84,049) | 84,049 | ||||
TOTAL INVESTMENTS IN SECURITIES – 99.27% | |||||
(Cost: $152,925,582) | 111,021,226 | ||||
Other Assets, Less Liabilities – 0.73% | 814,526 | ||||
NET ASSETS – 100.00% | $ | 111,835,752 | |||
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.
18 | 2010 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited)
iSHARES® MSCI EMERGING MARKETS EASTERN EUROPE INDEX FUND
February 28, 2010
Security | Shares | Value | |||
COMMON STOCKS – 99.89% | |||||
CZECH REPUBLIC – 5.05% | |||||
CEZ AS | 7,857 | $ | 359,619 | ||
Komercni Banka AS | 657 | 129,602 | |||
Telefonica O2 Czech Republic AS | 4,311 | 101,822 | |||
591,043 | |||||
HUNGARY – 6.27% | |||||
Magyar Telekom | |||||
Telecommunications PLC | 20,718 | 75,110 | |||
MOL Hungarian Oil and Gas Nyrta | 2,268 | 204,410 | |||
OTP Bank Nyrta | 12,186 | 336,276 | |||
Richter Gedeon Nyrt | 567 | 118,253 | |||
734,049 | |||||
POLAND – 14.58% | |||||
Asseco Poland SA | 2,835 | 54,443 | |||
Bank Handlowy w Warszawie SAa | 1,458 | 36,861 | |||
Bank Millennium SAa | 11,511 | 15,428 | |||
Bank Millennium SA New | 4,933 | 6,577 | |||
Bank Pekao SAa | 5,148 | 280,627 | |||
Bank Zachodni WBK SAa | 981 | 59,456 | |||
BRE Bank SAa | 432 | 34,591 | |||
Cyfrowy Polsat SA | 4,968 | 24,776 | |||
Getin Holding SAa | 14,517 | 45,399 | |||
Globe Trade Centre SAa | 5,922 | 42,680 | |||
Grupa Lotos SAa | 2,421 | 22,890 | |||
ING Bank Slaski SAa | 162 | 36,805 | |||
KGHM Polska Miedz SA | 5,409 | 180,584 | |||
PBG SAa | 468 | 31,784 | |||
Polska Grupa Energetyczna SAa | 7,542 | 57,203 | |||
Polski Koncern Naftowy | 14,643 | 166,033 | |||
Polskie Gornictwo Naftowe i Gazownictwo SA | 57,276 | 70,418 | |||
Powszechna Kasa Oszczednosci Bank Polski SA | 27,747 | 353,246 | |||
Telekomunikacja Polska SA | 28,215 | 151,264 | |||
TVN SA | 6,462 | 34,062 | |||
1,705,127 | |||||
RUSSIA – 73.99% | |||||
Cherepovets MK Severstal SP GDRa,b | 10,460 | 126,566 | |||
LUKOIL SP ADR | 21,600 | 1,134,000 |
Security | Shares | Value | |||
Mechel OAO SP ADR | 6,876 | $ | 158,148 | ||
MMC Norilsk Nickel SP ADRa | 37,800 | 570,402 | |||
Mobile TeleSystems SP ADR | 9,846 | 515,438 | |||
Novolipetsk Steel SP GDRa,b | 4,158 | 128,482 | |||
OAO Gazprom SP ADR | 106,223 | 2,362,400 | |||
OAO NovaTek SP GDRb | 4,428 | 282,506 | |||
OAO Tatneft SP ADR | 11,502 | 350,121 | |||
OAO TMK SP GDRa,b | 3,177 | 56,551 | |||
OJSC Comstar United Telesystems SP GDR | 9,639 | 55,906 | |||
OJSC Rosneft Oil Co. SP GDR | 64,170 | 495,392 | |||
Pharmstandard SP GDRa,b | 4,644 | 96,177 | |||
Polyus Gold SP ADR | 6,750 | 183,330 | |||
Sberbank GDRb | 3,728 | 1,012,433 | |||
Sistema JSFC SP GDRa,b | 6,084 | 155,142 | |||
Surgutneftegaz SP ADR | 35,550 | 290,443 | |||
Uralkali SP GDRa,b | 7,245 | 151,783 | |||
Vimpel-Communications SP ADR | 14,238 | 264,115 | |||
VTB Bank OJSC SP GDRb | 41,400 | 199,548 | |||
Wimm-Bill-Dann Foods OJSC SP ADRa | 3,312 | 67,830 | |||
8,656,713 | |||||
TOTAL COMMON STOCKS | |||||
(Cost: $11,748,388) | 11,686,932 | ||||
RIGHTS – 0.00% | |||||
POLAND – 0.00% | |||||
Asseco Poland SAa,c | 2,835 | – | |||
– | |||||
TOTAL RIGHTS | |||||
(Cost: $0) | – | ||||
SHORT-TERM INVESTMENTS – 0.09% | |||||
MONEY MARKET FUNDS – 0.09% | |||||
BlackRock Cash Funds: Treasury, | 10,541 | 10,541 | |||
10,541 | |||||
TOTAL SHORT-TERM INVESTMENTS | |||||
(Cost: $10,541) | 10,541 | ||||
SCHEDULESOF INVESTMENTS | 19 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI EMERGING MARKETS EASTERN EUROPE INDEX FUND
February 28, 2010
Value | |||||
TOTAL INVESTMENTS IN SECURITIES – 99.98% | |||||
(Cost: $11,758,929) | $ | 11,697,473 | |||
Other Assets, Less Liabilities – 0.02% | 1,844 | ||||
NET ASSETS – 100.00% | $ | 11,699,317 | |||
GDR – Global Depositary Receipts
SP ADR – Sponsored American Depositary Receipts
SP GDR – Sponsored Global Depositary Receipts
a | Non-income earning security. |
b | This security may be resold to qualified foreign investors and foreign institutional buyers under Regulation S of the Securities Act of 1933. |
c | Security valued using Level 3 inputs in accordance with management’s fair valuation policy. 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. |
See notes to financial statements.
20 | 2010 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited)
iSHARES® MSCI EMU INDEX FUND
February 28, 2010
Security | Shares | Value | |||
COMMON STOCKS – 98.42% | |||||
AUSTRIA – 1.04% | |||||
Erste Group Bank AG | 52,144 | $ | 1,969,023 | ||
IMMOEAST AGa | 121,512 | 578,738 | |||
Oesterreichische Elektrizitaetswirtschafts AG Class A | 22,692 | 925,936 | |||
OMV AG | 42,944 | 1,594,074 | |||
Raiffeisen International Bank Holding AGb | 15,628 | 703,809 | |||
Telekom Austria AG | 85,832 | 1,128,009 | |||
Vienna Insurance Group AG | 11,468 | 553,867 | |||
voestalpine AG | 31,720 | 1,120,734 | |||
8,574,190 | |||||
BELGIUM – 3.18% | |||||
Anheuser-Busch InBev NV | 195,060 | 9,785,453 | |||
Belgacom SA | 40,122 | 1,505,475 | |||
Colruyt SA | 3,858 | 966,393 | |||
Compagnie Nationale a Portefeuille SA | 12,614 | 631,249 | |||
Delhaize Group SA | 27,438 | 2,129,477 | |||
Dexia SAa,b | 148,596 | 805,478 | |||
Fortisa | 610,732 | 2,096,167 | |||
Groupe Bruxelles Lambert SA | 22,936 | 2,012,639 | |||
KBC Groep NVa | 44,050 | 1,996,420 | |||
Mobistar SA | 6,588 | 390,464 | |||
Solvay SA | 16,360 | 1,567,990 | |||
UCB SA | 27,715 | 1,229,236 | |||
Umicore | 32,468 | 975,243 | |||
26,091,684 | |||||
FINLAND – 3.77% | |||||
Elisa OYJ | 32,208 | 672,061 | |||
Fortum OYJ | 120,558 | 3,078,272 | |||
Kesko OYJ Class B | 18,229 | 662,478 | |||
Kone OYJ Class Ba | 40,992 | 1,734,195 | |||
Metso OYJ | 35,380 | 1,099,406 | |||
Neste Oil OYJ | 38,552 | 551,373 | |||
Nokia OYJ | 979,564 | 13,227,745 | |||
Nokian Renkaat OYJb | 30,012 | 754,844 | |||
Orion OYJ Class B | 25,864 | 574,982 | |||
Outokumpu OYJ | 31,232 | 550,680 |
Security | Shares | Value | |||
Pohjola Bank PLC | 44,652 | $ | 496,633 | ||
Rautaruukki OYJ | 23,668 | 447,351 | |||
Sampo OYJ Class A | 114,680 | 2,785,768 | |||
Sanoma OYJ | 23,534 | 471,797 | |||
Stora Enso OYJ Class Ra | 170,646 | 1,082,895 | |||
UPM-Kymmene OYJ | 149,508 | 1,606,764 | |||
Wartsila OYJ Class B | 23,416 | 1,120,371 | |||
30,917,615 | |||||
FRANCE – 33.59% | |||||
Accor SA | 43,432 | 2,201,645 | |||
Aeroports de Paris | 8,053 | 637,416 | |||
Air France-KLMa | 34,648 | 463,715 | |||
Alcatel-Lucenta | 622,444 | 1,894,272 | |||
ALSTOM | 55,632 | 3,567,907 | |||
ArcelorMittal | 230,092 | 8,782,763 | |||
Atos Origin SAa | 12,932 | 604,013 | |||
AXAb | 459,582 | 9,273,027 | |||
BioMerieux SA | 3,172 | 347,865 | |||
BNP Paribas | 255,224 | 18,505,402 | |||
Bouygues SA | 61,000 | 2,813,739 | |||
Bureau Veritas SA | 12,932 | 657,046 | |||
Cap Gemini SA | 39,528 | 1,825,191 | |||
Carrefour SA | 170,898 | 7,902,812 | |||
Casino Guichard-Perrachon SA | 14,884 | 1,200,654 | |||
Christian Dior SA | 16,836 | 1,653,359 | |||
CNP Assurances SA | 10,004 | 899,151 | |||
Compagnie de Saint-Gobain | 101,260 | 4,770,302 | |||
Compagnie Generale de Geophysique-Veritasa | 38,552 | 928,074 | |||
Compagnie Generale des Etablissements Michelin | 39,528 | 2,763,544 | |||
Credit Agricole SA | 247,904 | 3,694,395 | |||
Danone SA | 148,248 | 8,689,388 | |||
Dassault Systemes SA | 15,128 | 873,291 | |||
Eiffage SAb | 11,468 | 535,243 | |||
Electricite de Franceb | 62,464 | 3,137,855 | |||
Erametb | 1,464 | 440,741 | |||
Essilor International SA | 53,436 | 3,230,173 | |||
Eurazeo | 8,784 | 559,038 | |||
European Aeronautic Defence and Space Co.b | 111,020 | 2,296,119 | |||
Eutelsat Communications | 17,980 | 598,465 |
SCHEDULESOF INVESTMENTS | 21 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI EMU INDEX FUND
February 28, 2010
Security | Shares | Value | |||
Fonciere des Regions | 6,832 | $ | 682,769 | ||
France Telecom SA | 495,320 | 11,643,466 | |||
GDF Suez | 328,912 | 12,105,922 | |||
Gecina SA | 5,856 | 608,247 | |||
Groupe Eurotunnel SA | 123,464 | 1,256,777 | |||
Hermes Internationalb | 14,396 | 1,944,779 | |||
Icade | 5,856 | 588,667 | |||
Iliad SA | 3,904 | 414,449 | |||
Imerys SA | 10,004 | 517,292 | |||
Ipsen SA | 6,832 | 347,678 | |||
JCDecaux SAa | 16,844 | 421,352 | |||
Klepierre | 27,084 | 1,010,898 | |||
Lafarge SA | 54,372 | 3,534,216 | |||
Lagardere SCA | 32,696 | 1,196,491 | |||
L’Air Liquide SA | 66,700 | 7,983,846 | |||
Legrand SA | 30,988 | 972,443 | |||
L’Oreal SA | 65,188 | 6,762,896 | |||
LVMH Moet Hennessy Louis Vuitton SA | 64,904 | 7,050,529 | |||
M6-Metropole Television | 18,056 | 447,727 | |||
Natixisa | 243,024 | 1,202,249 | |||
Neopost SA | 8,784 | 714,097 | |||
PagesJaunes Groupe SAb | 37,346 | 419,400 | |||
Pernod Ricard SA | 52,948 | 3,998,043 | |||
PPR SA | 20,496 | 2,357,666 | |||
PSA Peugeot Citroen SAa | 41,724 | 1,103,796 | |||
Publicis Groupe SA | 30,012 | 1,186,535 | |||
Renault SAa | 50,752 | 2,091,690 | |||
Safran SA | 54,372 | 1,282,201 | |||
Sanofi-Aventis | 283,150 | 20,758,203 | |||
Schneider Electric SA | 63,684 | 6,816,316 | |||
SCOR SE | 47,336 | 1,159,237 | |||
SES SA | 77,836 | 1,890,235 | |||
Societe BIC | 6,832 | 484,829 | |||
Societe des Autoroutes Paris-Rhin-Rhonea | 6,048 | 435,548 | |||
Societe Generale | 169,336 | 9,336,151 | |||
Societe Television Francaise 1 | 32,700 | 525,468 | |||
Sodexo | 28,060 | 1,668,830 | |||
STMicroelectronics NV | 181,292 | 1,573,522 | |||
Suez Environnement SA | 73,688 | 1,626,591 | |||
Technip SA | 28,548 | 2,037,580 |
Security | Shares | Value | |||
Thales SA | 26,178 | $ | 1,048,354 | ||
Total SA | 568,764 | 31,808,358 | |||
Unibail-Rodamco SE | 23,424 | 4,635,176 | |||
Vallourec SA | 15,128 | 2,897,551 | |||
Veolia Environnement | 103,700 | 3,369,577 | |||
Vinci SA | 113,460 | 5,953,554 | |||
Vivendi SA | 322,812 | 8,150,018 | |||
275,767,824 | |||||
GERMANY – 23.08% | |||||
Adidas AG | 52,608 | 2,612,589 | |||
Allianz SE Registered | 122,574 | 14,185,067 | |||
BASF SE | 246,912 | 13,896,264 | |||
Bayer AG | 217,648 | 14,456,169 | |||
Bayerische Motoren Werke AG | 89,548 | 3,639,910 | |||
Beiersdorf AG | 25,422 | 1,562,071 | |||
Celesio AG | 22,936 | 669,680 | |||
Commerzbank AGa,b | 196,824 | 1,471,153 | |||
Daimler AG Registered | 242,048 | 10,127,700 | |||
Deutsche Bank AG Registered | 159,576 | 10,155,861 | |||
Deutsche Boerse AG | 53,616 | 3,737,511 | |||
Deutsche Lufthansa AG Registered | 61,488 | 919,683 | |||
Deutsche Post AG Registered | 230,048 | 3,750,091 | |||
Deutsche Postbank AGa | 25,376 | 785,423 | |||
Deutsche Telekom AG Registered | 758,084 | 9,776,566 | |||
E.ON AG | 510,692 | 18,228,502 | |||
Fraport AG | 10,980 | 553,974 | |||
Fresenius Medical Care AG & Co. KGaA | 51,728 | 2,707,249 | |||
Fresenius SE | 7,076 | 463,035 | |||
GEA Group AG | 44,050 | 824,778 | |||
Hannover Rueckversicherung AG Registereda | 17,080 | 766,752 | |||
HeidelbergCement AG | 38,308 | 1,956,539 | |||
Henkel AG & Co. KGaA | 35,624 | 1,574,188 | |||
Hochtief AG | 11,468 | 809,125 | |||
Infineon Technologies AGa | 291,092 | 1,591,794 | |||
K+S AG | 45,628 | 2,778,422 | |||
Linde AG | 40,504 | 4,570,757 | |||
MAN SE | 29,036 | 2,080,731 | |||
Merck KGaA | 17,812 | 1,405,005 | |||
METRO AG | 30,714 | 1,578,324 |
22 | 2010 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI EMU INDEX FUND
February 28, 2010
Security | Shares | Value | |||
Muenchener Rueckversicherungs- | |||||
Gesellschaft AG Registered | 53,616 | $ | 8,315,743 | ||
Puma AG | 1,464 | 414,768 | |||
QIAGEN NVa | 56,364 | 1,233,027 | |||
RWE AG | 113,260 | 9,626,366 | |||
Salzgitter AG | 10,826 | 957,519 | |||
SAP AG | 232,306 | 10,385,837 | |||
Siemens AG Registered | 221,796 | 19,066,128 | |||
SolarWorld AGb | 23,914 | 331,250 | |||
Suedzucker AG | 18,788 | 437,418 | |||
ThyssenKrupp AG | 90,862 | 2,882,985 | |||
TUI AGa | 46,066 | 455,780 | |||
United Internet AG Registereda | 33,918 | 525,830 | |||
Volkswagen AG | 8,296 | 719,258 | |||
Wacker Chemie AG | 4,284 | 514,715 | |||
189,501,537 | |||||
GREECE – 1.19% | |||||
Coca-Cola Hellenic Bottling Co. SA SP ADR | 86,246 | 2,109,577 | |||
Hellenic Telecommunications Organization SA SP ADR | 371,129 | 2,219,351 | |||
National Bank of Greece SA SP ADR | 1,406,942 | 5,430,796 | |||
9,759,724 | |||||
IRELAND – 0.84% | |||||
Anglo Irish Bank Corp. Ltd.c | 446,666 | 61 | |||
CRH PLC | 187,794 | 4,287,862 | |||
Elan Corp. PLCa | 134,408 | 940,245 | |||
Kerry Group PLC Class A | 37,332 | 1,184,517 | |||
Ryanair Holdings PLCa | 43,520 | 207,871 | |||
Ryanair Holdings PLC SP ADRa | 9,996 | 274,590 | |||
6,895,146 | |||||
ITALY – 9.95% | |||||
A2A SpA | 279,868 | 484,676 | |||
Assicurazioni Generali SpA | 311,588 | 7,084,234 | |||
Atlantia SpA | 69,724 | 1,611,881 | |||
Autogrill SpAa | 46,848 | 583,073 | |||
Banca Carige SpAb | 190,564 | 485,797 | |||
Banca Monte dei Paschi di Siena SpA | 637,938 | 947,206 | |||
Banca Popolare di Milano Scrl | 125,598 | 741,321 | |||
Banco Popolare SpAa | 180,464 | 1,151,355 |
Security | Shares | Value | |||
Enel SpA | 1,755,258 | $ | 9,539,683 | ||
Eni SpA | 700,280 | 15,835,487 | |||
Exor SpA | 23,265 | 355,280 | |||
Fiat SpAa | 208,864 | 2,203,334 | |||
Finmeccanica SpA | 114,268 | 1,480,665 | |||
Fondiaria-SAI SpA | 18,788 | 273,835 | |||
Intesa Sanpaolo SpAa | 2,069,608 | 7,293,998 | |||
Italcementi SpA | 23,267 | 254,337 | |||
Luxottica Group SpA | 26,510 | 694,621 | |||
Mediaset SpA | 189,100 | 1,434,840 | |||
Mediobanca SpAa | 134,362 | 1,421,070 | |||
Mediolanum SpA | 48,068 | 272,889 | |||
Parmalat SpA | 463,855 | 1,172,991 | |||
Pirelli & C. SpAa | 730,646 | 366,439 | |||
Prysmian SpA | 26,596 | 459,139 | |||
Saipem SpA | 72,712 | 2,410,298 | |||
Snam Rete Gas SpA | 381,372 | 1,808,593 | |||
Telecom Italia SpA | 2,672,776 | 3,815,324 | |||
Tenaris SA | 128,612 | 2,676,631 | |||
Terna SpA | 323,056 | 1,330,339 | |||
UniCredit SpAa | 4,434,196 | 11,237,352 | |||
Unione di Banche Italiane ScpA | 162,404 | 2,026,831 | |||
Unipol Gruppo Finanziario SpAa | 247,910 | 276,917 | |||
81,730,436 | |||||
NETHERLANDS – 8.21% | |||||
AEGON NVa | 429,928 | 2,716,526 | |||
Akzo Nobel NV | 62,678 | 3,194,367 | |||
ASML Holding NV | 116,144 | 3,567,874 | |||
Corio NV | 14,640 | 907,855 | |||
Fugro NV CVA | 17,466 | 1,017,076 | |||
Heineken Holding NV | 25,376 | 1,037,360 | |||
Heineken NV | 63,684 | 3,134,828 | |||
ING Groep NV CVAa | 981,856 | 8,796,699 | |||
Koninklijke Ahold NV | 321,836 | 3,952,886 | |||
Koninklijke DSM NV | 42,286 | 1,769,607 | |||
Koninklijke KPN NV | 445,238 | 7,109,111 | |||
Koninklijke Philips Electronics NV | 262,788 | 7,699,717 | |||
Randstad Holding NVa | 28,304 | 1,187,571 | |||
Reed Elsevier NV | 194,712 | 2,236,329 | |||
Royal Boskalis Westminster NV CVA | 18,788 | 606,001 | |||
Royal Vopak NVa | 4,880 | 359,692 | |||
SBM Offshore NV | 42,397 | 753,905 |
SCHEDULESOF INVESTMENTS | 23 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI EMU INDEX FUND
February 28, 2010
Security | Shares | Value | |||
TNT NV | 100,428 | $ | 2,605,398 | ||
Unilever NV CVA | 438,948 | 13,238,615 | |||
Wolters Kluwer NV | 73,932 | 1,493,750 | |||
67,385,167 | |||||
PORTUGAL – 0.92% | |||||
Banco Comercial Portugues SA Registered | 719,564 | 730,600 | |||
Banco Espirito Santo SA Registered | 153,398 | 765,983 | |||
BRISA - Auto-estradas de Portugal SA | 57,638 | 462,906 | |||
CIMPOR - Cimentos de Portugal SGPS SA | 75,640 | 560,207 | |||
EDP Renovaveis SAa | 59,780 | 482,882 | |||
Energias de Portugal SA | 490,790 | 1,805,060 | |||
Galp Energia SGPS SA Class B | 43,676 | 710,785 | |||
Jeronimo Martins SGPS SA | 58,560 | 563,254 | |||
Portugal Telecom SGPS SA Registered | 136,884 | 1,444,007 | |||
7,525,684 | |||||
SPAIN – 12.65% | |||||
Abertis Infraestructuras SA | 75,510 | 1,426,191 | |||
Acciona SA | 7,056 | 786,042 | |||
Acerinox SA | 37,088 | 634,953 | |||
Actividades de Construcciones y Servicios SA | 39,040 | 1,738,990 | |||
Banco Bilbao Vizcaya Argentaria SA | 964,008 | 12,563,805 | |||
Banco de Sabadell SAb | 259,492 | 1,257,865 | |||
Banco de Valencia SAb | 70,480 | 453,989 | |||
Banco Popular Espanol SA | 243,132 | 1,612,559 | |||
Banco Santander SA | 2,203,762 | 28,718,369 | |||
Bankinter SA | 82,960 | 678,727 | |||
Criteria CaixaCorp SA | 234,972 | 1,077,439 | |||
Enagas SA | 50,827 | 1,062,650 | |||
Ferrovial SA | 110,449 | 975,221 | |||
Fomento de Construcciones y Contratas SAb | 8,296 | 278,963 | |||
Gamesa Corporacion Tecnologica SA | 53,192 | 663,483 | |||
Gas Natural SDG SA | 62,174 | 1,142,914 | |||
Gestevision Telecinco SA | 29,036 | 384,803 | |||
Grifols SA | 36,248 | 549,091 |
Security | Shares | Value | |||
Iberdrola Renovables SA | 258,736 | $ | 1,086,833 | ||
Iberdrola SA | 994,056 | 8,022,863 | |||
Iberia Lineas Aereas de Espana SAa | 120,292 | 363,948 | |||
Indra Sistemas SA | 30,436 | 624,286 | |||
Industria de Diseno Textil SA | 58,316 | 3,446,776 | |||
Mapfre SA | 201,189 | 726,218 | |||
Red Electrica Corporacion SA | 28,792 | 1,452,249 | |||
Repsol YPF SA | 200,568 | 4,553,252 | |||
Sacyr Vallehermoso SAa,b | 24,888 | 202,803 | |||
Telefonica SA | 1,133,850 | 26,684,311 | |||
Zardoya Otis SA | 35,868 | 653,470 | |||
103,823,063 | |||||
TOTAL COMMON STOCKS | |||||
(Cost: $1,175,589,835) | 807,972,070 | ||||
PREFERRED STOCKS – 1.37% | |||||
GERMANY – 1.09% | |||||
Bayerische Motoren Werke AG | 14,884 | 456,009 | |||
Fresenius SE | 21,716 | 1,530,690 | |||
Henkel AG & Co. KGaA | 48,556 | 2,507,113 | |||
Porsche Automobil Holding SE | 24,414 | 1,229,426 | |||
RWE AG NVS | 10,980 | 869,995 | |||
Volkswagen AG | 28,446 | 2,321,451 | |||
8,914,684 | |||||
ITALY – 0.28% | |||||
Intesa Sanpaolo SpA RNC | 264,984 | 716,376 | |||
Telecom Italia SpA RNC | 1,513,288 | 1,610,844 | |||
2,327,220 | |||||
TOTAL PREFERRED STOCKS | |||||
(Cost: $18,117,069) | 11,241,904 | ||||
RIGHTS – 0.00% | |||||
ITALY – 0.00% | |||||
Banca Carige SpAa,b | 190,564 | 3,771 | |||
3,771 | |||||
TOTAL RIGHTS | |||||
(Cost: $0) | 3,771 |
24 | 2010 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI EMU INDEX FUND
February 28, 2010
Security | Shares | Value | ||||
WARRANTS – 0.00% | ||||||
FRANCE – 0.00% | ||||||
Fonciere des Regions (Expires 12/31/10)a | 7,448 | $ | 4,991 | |||
4,991 | ||||||
ITALY – 0.00% | ||||||
Mediobanca SpA | ||||||
(Expires 3/18/11)a | 121,599 | 14,769 | ||||
14,769 | ||||||
TOTAL WARRANTS | ||||||
(Cost: $0) | 19,760 | |||||
SHORT-TERM INVESTMENTS – 1.47% |
| |||||
MONEY MARKET FUNDS – 1.47% |
| |||||
BlackRock Cash Funds: Institutional, | 10,352,100 | 10,352,100 | ||||
BlackRock Cash Funds: Prime, | 1,663,693 | 1,663,693 | ||||
BlackRock Cash Funds: Treasury, | 72,228 | 72,228 | ||||
12,088,021 | ||||||
TOTAL SHORT-TERM INVESTMENTS |
| |||||
(Cost: $12,088,021) | 12,088,021 | |||||
TOTAL INVESTMENTS IN SECURITIES – 101.26% |
| |||||
(Cost: $1,205,794,925) | 831,325,526 | |||||
Other Assets, Less Liabilities – (1.26)% | (10,379,567 | ) | ||||
NET ASSETS – 100.00% | $ | 820,945,959 | ||||
NVS – Non-Voting Shares
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 in accordance with management’s fair valuation policy. 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 | 25 |
Table of Contents
Schedule of Investments (Unaudited)
iSHARES® MSCI FRANCE INDEX FUND
February 28, 2010
Security | Shares | Value | |||
COMMON STOCKS – 99.84% | |||||
ADVERTISING – 0.76% | |||||
JCDecaux SAa | 18,786 | $ | 469,931 | ||
PagesJaunes Groupe SAb | 36,952 | 414,975 | |||
Publicis Groupe SA | 33,790 | 1,335,900 | |||
2,220,806 | |||||
AEROSPACE & DEFENSE – 1.60% | |||||
European Aeronautic Defence and Space Co. | 116,126 | 2,401,721 | |||
Safran SA | 53,940 | 1,272,014 | |||
Thales SA | 25,172 | 1,008,066 | |||
4,681,801 | |||||
AIRLINES – 0.18% | |||||
Air France-KLMa | 38,564 | 516,126 | |||
516,126 | |||||
APPAREL – 0.69% | |||||
Hermes Internationalb | 14,942 | 2,018,539 | |||
2,018,539 | |||||
AUTO MANUFACTURERS – 1.13% | |||||
PSA Peugeot Citroen SAa | 42,966 | 1,136,653 | |||
Renault SAa | 53,010 | 2,184,751 | |||
3,321,404 | |||||
AUTO PARTS & EQUIPMENT – 1.00% | |||||
Compagnie Generale des Etablissements Michelin Class B | 41,912 | 2,930,218 | |||
2,930,218 | |||||
BANKS – 11.81% | |||||
BNP Paribas | 269,948 | 19,572,988 | |||
Credit Agricole SA | 264,430 | 3,940,674 | |||
Natixisa | 247,132 | 1,222,571 | |||
Societe Generale | 179,180 | 9,878,889 | |||
34,615,122 | |||||
BEVERAGES – 1.45% | |||||
Pernod Ricard SA | 56,420 | 4,260,209 | |||
4,260,209 | |||||
BUILDING MATERIALS – 3.20% | |||||
Compagnie de Saint-Gobain | 109,678 | 5,166,870 | |||
Imerys SA | 9,672 | 500,124 | |||
Lafarge SA | 56,916 | 3,699,578 | |||
9,366,572 |
Security | Shares | Value | |||
CHEMICALS – 2.92% | |||||
L’Air Liquide SA | 71,548 | $ | 8,564,141 | ||
8,564,141 | |||||
COMMERCIAL SERVICES – 0.40% | |||||
Bureau Veritas SA | 13,888 | 705,618 | |||
Societe des Autoroutes Paris-Rhin-Rhonea | 6,572 | 473,284 | |||
1,178,902 | |||||
COMPUTERS – 0.86% | |||||
Atos Origin SAa | 12,896 | 602,332 | |||
Cap Gemini SA | 41,726 | 1,926,682 | |||
2,529,014 | |||||
COSMETICS & PERSONAL CARE – 3.02% | |||||
Christian Dior SA | 18,042 | 1,771,793 | |||
L’Oreal SA | 68,262 | 7,081,807 | |||
8,853,600 | |||||
ELECTRIC – 1.16% | |||||
Electricite de Franceb | 67,456 | 3,388,626 | |||
3,388,626 | |||||
ELECTRICAL COMPONENTS & EQUIPMENT – 0.32% | |||||
Legrand SA | 29,760 | 933,907 | |||
933,907 | |||||
ENGINEERING & CONSTRUCTION – 3.66% | |||||
Aeroports de Paris | 8,308 | 657,600 | |||
Bouygues SA | 63,612 | 2,934,222 | |||
Eiffage SAb | 11,346 | 529,549 | |||
Vinci SA | 126,046 | 6,613,976 | |||
10,735,347 | |||||
FOOD – 6.42% | |||||
Carrefour SA | 180,854 | 8,363,206 | |||
Casino Guichard-Perrachon SA | 15,624 | 1,260,348 | |||
Danone SA | 156,674 | 9,183,269 | |||
18,806,823 | |||||
FOOD SERVICE – 0.54% | |||||
Sodexo | 26,784 | 1,592,942 | |||
1,592,942 | |||||
GAS – 4.45% | |||||
GDF Suez | 354,144 | 13,034,610 | |||
13,034,610 |
26 | 2010 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI FRANCE INDEX FUND
February 28, 2010
Security | Shares | Value | |||
HAND & MACHINE TOOLS – 2.46% | |||||
Schneider Electric SA | 67,208 | $ | 7,193,502 | ||
7,193,502 | |||||
HEALTH CARE – PRODUCTS – 1.18% | |||||
Essilor International SA | 57,226 | 3,459,277 | |||
3,459,277 | |||||
HEALTH CARE – SERVICES – 0.15% | |||||
BioMerieux SA | 3,968 | 435,160 | |||
435,160 | |||||
HOLDING COMPANIES – DIVERSIFIED – 2.59% | |||||
LVMH Moet Hennessy Louis Vuitton SA | 69,874 | 7,590,421 | |||
7,590,421 | |||||
HOUSEHOLD PRODUCTS & WARES – 0.18% | |||||
Societe BIC | 7,564 | 536,775 | |||
536,775 | |||||
INSURANCE – 4.05% | |||||
AXA | 483,724 | 9,760,142 | |||
CNP Assurances SA | 10,602 | 952,899 | |||
SCOR SE | 47,554 | 1,164,576 | |||
11,877,617 | |||||
INTERNET – 0.17% | |||||
Iliad SA | 4,650 | 493,644 | |||
493,644 | |||||
INVESTMENT COMPANIES – 0.17% | |||||
Eurazeo | 7,874 | 501,123 | |||
501,123 | |||||
IRON & STEEL – 3.19% | |||||
ArcelorMittal | 244,652 | 9,338,528 | |||
9,338,528 | |||||
LODGING – 0.72% | |||||
Accor SA | 41,602 | 2,108,880 | |||
2,108,880 | |||||
MACHINERY – 1.26% | |||||
ALSTOM | 57,660 | 3,697,971 | |||
3,697,971 | |||||
MEDIA – 3.77% | |||||
Lagardere SCA | 33,418 | 1,222,913 | |||
M6-Metropole Television | 18,662 | 462,754 |
Security | Shares | Value | |||
Societe Television Francaise 1 | 33,418 | $ | 537,005 | ||
Vivendi SA | 350,052 | 8,837,745 | |||
11,060,417 | |||||
MEDICAL – DRUGS – 0.13% | |||||
Ipsen SA | 7,316 | 372,309 | |||
372,309 | |||||
METAL FABRICATE & HARDWARE – 1.07% | |||||
Vallourec SA | 16,306 | 3,123,180 | |||
3,123,180 | |||||
MINING – 0.15% | |||||
Erametb | 1,488 | 447,967 | |||
447,967 | |||||
OFFICE & BUSINESS EQUIPMENT – 0.25% | |||||
Neopost SAb | 8,866 | 720,763 | |||
720,763 | |||||
OIL & GAS – 11.82% | |||||
Compagnie Generale de Geophysique-Veritasa | 41,106 | 989,557 | |||
Total SA | 601,834 | 33,657,811 | |||
34,647,368 | |||||
OIL & GAS SERVICES – 0.72% | |||||
Technip SA | 29,636 | 2,115,234 | |||
2,115,234 | |||||
PHARMACEUTICALS – 7.51% | |||||
Sanofi-Aventis | 300,018 | 21,994,825 | |||
21,994,825 | |||||
REAL ESTATE – 2.28% | |||||
Gecina SA | 5,394 | 560,260 | |||
Klepierre | 25,668 | 958,046 | |||
Unibail-Rodamco SEb | 26,040 | 5,152,834 | |||
6,671,140 | |||||
REAL ESTATE INVESTMENT TRUSTS – 0.45% | |||||
Fonciere des Regions | 6,634 | 662,982 | |||
Icade | 6,600 | 663,457 | |||
1,326,439 | |||||
RETAIL – 0.85% | |||||
PPR SA | 21,576 | 2,481,899 | |||
2,481,899 |
SCHEDULESOF INVESTMENTS | 27 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI FRANCE INDEX FUND
February 28, 2010
Security | Shares | Value | |||
SEMICONDUCTORS – 0.57% | |||||
STMicroelectronics NV | 193,936 | $ | 1,683,266 | ||
1,683,266 | |||||
SOFTWARE – 0.37% | |||||
Dassault Systemes SA | 18,538 | 1,070,140 | |||
1,070,140 | |||||
TELECOMMUNICATIONS – 5.91% | |||||
Alcatel-Lucenta | 660,548 | 2,010,233 | |||
Eutelsat Communications | 28,334 | 943,098 | |||
France Telecom SA | 528,178 | 12,415,858 | |||
SES SA | 80,662 | 1,958,863 | |||
17,328,052 | |||||
TRANSPORTATION – 0.47% | |||||
Groupe Eurotunnel SA | 135,904 | 1,383,407 | |||
1,383,407 | |||||
WATER – 1.83% | |||||
Suez Environnement SA | 76,632 | 1,691,576 | |||
Veolia Environnement | 112,530 | 3,656,494 | |||
5,348,070 | |||||
TOTAL COMMON STOCKS | 292,556,083 | ||||
WARRANTS – 0.00% | |||||
REAL ESTATE INVESTMENT TRUSTS – 0.00% | |||||
Fonciere des Regions | 7,062 | 4,732 | |||
4,732 | |||||
TOTAL WARRANTS | 4,732 | ||||
SHORT-TERM INVESTMENTS – 2.68% | |||||
MONEY MARKET FUNDS – 2.68% | |||||
BlackRock Cash Funds: Institutional, SL | 6,746,107 | 6,746,107 | |||
BlackRock Cash Funds: | 1,084,172 | 1,084,172 |
Security | Shares | Value | ||||
BlackRock Cash Funds: | 15,006 | $ | 15,006 | |||
7,845,285 | ||||||
TOTAL SHORT-TERM INVESTMENTS | 7,845,285 | |||||
TOTAL INVESTMENTS | 300,406,100 | |||||
Other Assets, Less Liabilities – (2.52)% | (7,395,762 | ) | ||||
NET ASSETS – 100.00% | $ | 293,010,338 | ||||
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.
28 | 2010 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited)
iSHARES® MSCI GERMANY INDEX FUND
February 28, 2010
Security | Shares | Value | |||
COMMON STOCKS – 95.42% | |||||
AIRLINES – 0.50% | |||||
Deutsche Lufthansa AG Registered | 256,540 | $ | 3,837,097 | ||
3,837,097 | |||||
APPAREL – 1.57% | |||||
Adidas AG | 206,248 | 10,242,571 | |||
Puma AG | 6,286 | 1,780,897 | |||
12,023,468 | |||||
AUTO MANUFACTURERS – 7.25% | |||||
Bayerische Motoren Werke AG | 351,790 | 14,299,416 | |||
Daimler AG Registered | 925,576 | 38,727,675 | |||
Volkswagen AG | 29,464 | 2,554,511 | |||
55,581,602 | |||||
BANKS – 5.91% | |||||
Commerzbank AGa,b | 759,732 | 5,678,588 | |||
Deutsche Bank AG Registered | 575,691 | 36,638,578 | |||
Deutsche Postbank AGa | 95,464 | 2,954,744 | |||
45,271,910 | |||||
BIOTECHNOLOGY – 0.65% | |||||
QIAGEN NVa | 228,092 | 4,989,773 | |||
4,989,773 | |||||
BUILDING MATERIALS – 0.95% | |||||
HeidelbergCement AG | 142,494 | 7,277,724 | |||
7,277,724 | |||||
CHEMICALS – 16.08% | |||||
BASF SE | 948,055 | 53,356,752 | |||
Bayer AG | 854,583 | 56,761,359 | |||
K+S AG | 181,103 | 11,027,889 | |||
Wacker Chemie AG | 17,907 | 2,151,494 | |||
123,297,494 | |||||
COSMETICS & PERSONAL CARE – 0.79% | |||||
Beiersdorf AG | 98,806 | 6,071,196 | |||
6,071,196 | |||||
DIVERSIFIED FINANCIAL SERVICES – 1.94% | |||||
Deutsche Boerse AG | 213,233 | 14,864,233 | |||
14,864,233 | |||||
ELECTRIC – 13.91% | |||||
E.ON AG | 2,010,609 | 71,766,132 | |||
RWE AG | 409,702 | 34,822,014 | |||
106,588,146 |
Security | Shares | Value | |||
ENERGY – ALTERNATE SOURCES – 0.16% | |||||
SolarWorld AGb | 87,249 | $ | 1,208,547 | ||
1,208,547 | |||||
ENGINEERING & CONSTRUCTION – 3.18% | |||||
Fraport AG | 44,069 | 2,223,411 | |||
Hochtief AG | 46,947 | 3,312,345 | |||
Linde AG | 167,005 | 18,846,020 | |||
24,381,776 | |||||
FOOD – 1.09% | |||||
METRO AG | 124,841 | 6,415,302 | |||
Suedzucker AG | 83,947 | 1,954,436 | |||
8,369,738 | |||||
HEALTH CARE – PRODUCTS – 1.73% | |||||
Fresenius Medical Care | |||||
AG & Co. KGaA | 211,328 | 11,060,114 | |||
Fresenius SE | 33,655 | 2,202,295 | |||
13,262,409 | |||||
HOLDING COMPANIES – DIVERSIFIED – 0.39% | |||||
GEA Group AG | 158,750 | 2,972,385 | |||
2,972,385 | |||||
HOUSEHOLD PRODUCTS & WARES – 0.88% | |||||
Henkel AG & Co. KGaA | 152,019 | 6,717,566 | |||
6,717,566 | |||||
INSURANCE – 11.93% | |||||
Allianz SE Registered | 470,867 | 54,491,818 | |||
Hannover Rueckversicherung AG Registereda | 68,707 | 3,084,381 | |||
Muenchener Rueckversicherungs-Gesellschaft AG Registered | 218,186 | 33,840,246 | |||
91,416,445 | |||||
INTERNET – 0.31% | |||||
United Internet AG Registereda | 154,178 | 2,390,220 | |||
2,390,220 | |||||
IRON & STEEL – 1.95% | |||||
Salzgitter AG | 41,783 | 3,695,548 | |||
ThyssenKrupp AG | 354,838 | 11,258,752 | |||
14,954,300 | |||||
LEISURE TIME – 0.19% | |||||
TUI AGa | 147,828 | 1,462,621 | |||
1,462,621 |
SCHEDULESOF INVESTMENTS | 29 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI GERMANY INDEX FUND
February 28, 2010
Security | Shares | Value | |||
MACHINERY – DIVERSIFIED – 1.06% | |||||
MAN SE | 113,057 | $ | 8,101,710 | ||
8,101,710 | |||||
MANUFACTURING – 9.62% | |||||
Siemens AG Registered | 858,175 | 73,770,828 | |||
73,770,828 | |||||
PHARMACEUTICALS – 1.07% | |||||
Celesio AG | 92,710 | 2,706,924 | |||
Merck KGaA | 69,723 | 5,499,727 | |||
8,206,651 | |||||
SEMICONDUCTORS – 0.81% | |||||
Infineon Technologies AGa | 1,131,570 | 6,187,824 | |||
6,187,824 | |||||
SOFTWARE – 4.82% | |||||
SAP AG | 826,643 | 36,957,201 | |||
36,957,201 | |||||
TELECOMMUNICATIONS – 4.77% | |||||
Deutsche Telekom AG Registered | 2,837,053 | 36,587,813 | |||
36,587,813 | |||||
TRANSPORTATION – 1.91% | |||||
Deutsche Post AG Registered | 899,668 | 14,665,795 | |||
14,665,795 | |||||
TOTAL COMMON STOCKS | 731,416,472 | ||||
PREFERRED STOCKS – 4.42% | |||||
AUTO MANUFACTURERS – 2.05% | |||||
Bayerische Motoren | 67,842 | 2,078,510 | |||
Porsche Automobil | 90,638 | 4,564,297 | |||
Volkswagen AG | 110,998 | 9,058,442 | |||
15,701,249 | |||||
ELECTRIC – 0.21% | |||||
RWE AG NVS | 20,320 | 1,610,045 | |||
1,610,045 | |||||
HEALTH CARE – SERVICES – 0.82% | |||||
Fresenius SE | 89,027 | 6,275,224 | |||
6,275,224 |
Security | Shares | Value | ||||
HOUSEHOLD PRODUCTS & WARES – 1.34% |
| |||||
Henkel AG & Co. KGaA | 198,882 | $ | 10,268,959 | |||
10,268,959 | ||||||
TOTAL PREFERRED STOCKS | 33,855,477 | |||||
SHORT-TERM INVESTMENTS – 0.96% |
| |||||
MONEY MARKET FUNDS – 0.96% | ||||||
BlackRock Cash Funds: Institutional, SL Agency Shares 0.17%c,d,e | 6,344,583 | 6,344,583 | ||||
BlackRock Cash Funds: Prime, SL Agency Shares 0.16%c,d,e | 1,019,642 | 1,019,642 | ||||
BlackRock Cash Funds: Treasury, SL Agency Shares 0.10%c,d | 44,149 | 44,149 | ||||
7,408,374 | ||||||
TOTAL SHORT-TERM INVESTMENTS | 7,408,374 | |||||
TOTAL INVESTMENTS IN SECURITIES – 100.80% | 772,680,323 | |||||
Other Assets, Less Liabilities – (0.80)% | (6,130,400 | ) | ||||
NET ASSETS – 100.00% | $ | 766,549,923 | ||||
NVS – Non-Voting Shares
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.
30 | 2010 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited)
iSHARES® MSCI ITALY INDEX FUND
February 28, 2010
Security | Shares | Value | |||
COMMON STOCKS – 98.52% | |||||
AEROSPACE & DEFENSE – 1.98% | |||||
Finmeccanica SpA | 167,507 | $ | 2,170,527 | ||
2,170,527 | |||||
AUTO MANUFACTURERS – 2.69% | |||||
Fiat SpAa | 279,229 | 2,945,623 | |||
2,945,623 | |||||
AUTO PARTS & EQUIPMENT – 0.52% | |||||
Pirelli & C. SpAa | 1,146,595 | 575,049 | |||
575,049 | |||||
BANKS – 28.78% | |||||
Banca Carige SpAb | 356,083 | 907,748 | |||
Banca Monte dei Paschi di | 1,205,591 | 1,790,054 | |||
Banca Popolare di Milano Scrl | 226,952 | 1,339,545 | |||
Banco Popolare SpAa | 247,907 | 1,581,640 | |||
Intesa Sanpaolo SpAa | 2,530,206 | 8,917,300 | |||
UniCredit SpAa | 5,350,017 | 13,558,269 | |||
Unione di Banche Italiane ScpA | 278,195 | 3,471,924 | |||
31,566,480 | |||||
BUILDING MATERIALS – 0.43% | |||||
Italcementi SpA | 43,516 | 475,684 | |||
475,684 | |||||
COMMERCIAL SERVICES – 2.64% | |||||
Atlantia SpA | 125,210 | 2,894,607 | |||
2,894,607 | |||||
DIVERSIFIED FINANCIAL SERVICES – 2.36% | |||||
Mediobanca SpAa | 245,289 | 2,594,281 | |||
2,594,281 | |||||
ELECTRIC – 15.73% | |||||
A2A SpAb | 784,778 | 1,359,083 | |||
Enel SpA | 2,049,122 | 11,136,810 | |||
Terna SpA | 1,155,926 | 4,760,083 | |||
17,255,976 | |||||
ELECTRICAL COMPONENTS & EQUIPMENT – 0.80% | |||||
Prysmian SpA | 51,142 | 882,888 | |||
882,888 | |||||
FOOD – 1.69% | |||||
Parmalat SpA | 731,043 | 1,848,654 | |||
1,848,654 |
Security | Shares | Value | |||
HEALTH CARE – PRODUCTS – 1.89% | |||||
Luxottica Group SpA | 78,991 | $ | 2,069,741 | ||
2,069,741 | |||||
HOLDING COMPANIES – DIVERSIFIED – 0.46% | |||||
Exor SpA | 32,775 | 500,507 | |||
500,507 | |||||
INSURANCE – 7.55% | |||||
Assicurazioni Generali SpA | 229,448 | 5,216,707 | |||
Fondiaria-SAI SpAb | 79,636 | 1,160,694 | |||
Mediolanum SpA | 207,131 | 1,175,914 | |||
Unipol Gruppo Finanziario SpAa | 648,163 | 724,003 | |||
8,277,318 | |||||
MEDIA – 2.49% | |||||
Mediaset SpA | 360,665 | 2,736,629 | |||
2,736,629 | |||||
METAL FABRICATE & HARDWARE – 3.17% | |||||
Tenaris SA | 167,237 | 3,480,482 | |||
3,480,482 | |||||
OIL & GAS – 18.43% | |||||
Eni SpA | 894,228 | 20,221,248 | |||
20,221,248 | |||||
OIL & GAS SERVICES – 2.89% | |||||
Saipem SpA | 95,707 | 3,172,550 | |||
3,172,550 | |||||
RETAIL – 0.55% | |||||
Autogrill SpAa | 48,332 | 601,543 | |||
601,543 | |||||
TELECOMMUNICATIONS – 3.47% | |||||
Telecom Italia SpA | 2,668,021 | 3,808,536 | |||
3,808,536 | |||||
TOTAL COMMON STOCKS | 108,078,323 | ||||
PREFERRED STOCKS – 1.35% | |||||
BANKS – 0.39% | |||||
Intesa Sanpaolo SpA RNC | 158,584 | 428,727 | |||
428,727 |
SCHEDULESOF INVESTMENTS | 31 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI ITALY INDEX FUND
February 28, 2010
Security | Shares | Value | |||
TELECOMMUNICATIONS – 0.96% | |||||
Telecom Italia SpA RNC | 991,494 | $ | 1,055,412 | ||
1,055,412 | |||||
TOTAL PREFERRED STOCKS | 1,484,139 | ||||
RIGHTS – 0.01% | |||||
BANKS – 0.01% | |||||
Banca Carige SpAa,b | 338,775 | 6,703 | |||
6,703 | |||||
TOTAL RIGHTS | 6,703 | ||||
WARRANTS – 0.03% | |||||
DIVERSIFIED FINANCIAL SERVICES – 0.03% | |||||
Mediobanca SpA | 293,592 | 35,659 | |||
35,659 | |||||
TOTAL WARRANTS | 35,659 | ||||
SHORT-TERM INVESTMENTS – 2.25% | |||||
MONEY MARKET FUNDS – 2.25% | |||||
BlackRock Cash Funds: Institutional, SL Agency Shares 0.17%c,d,e | 2,062,380 | 2,062,380 | |||
BlackRock Cash Funds: | 331,447 | 331,447 | |||
BlackRock Cash Funds: | 68,430 | 68,430 | |||
2,462,257 | |||||
TOTAL SHORT-TERM INVESTMENTS | 2,462,257 | ||||
Value | ||||||
TOTAL INVESTMENTS IN SECURITIES – 102.16% | $ | 112,067,081 | ||||
Other Assets, Less Liabilities – (2.16)% | (2,365,989 | ) | ||||
NET ASSETS – 100.00% | $ | 109,701,092 | ||||
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.
32 | 2010 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited)
iSHARES® MSCI NETHERLANDS INVESTABLE MARKET INDEX FUND
February 28, 2010
Security | Shares | Value | |||
COMMON STOCKS – 99.71% | |||||
BANKS – 0.28% | |||||
SNS REAAL NVa | 57,792 | $ | 294,811 | ||
294,811 | |||||
BEVERAGES – 4.94% | |||||
Heineken Holding NV | 28,896 | 1,181,257 | |||
Heineken NV | 82,992 | 4,085,259 | |||
5,266,516 | |||||
BIOTECHNOLOGY – 0.42% | |||||
Crucell NVa | 23,520 | 450,973 | |||
450,973 | |||||
BUILDING MATERIALS – 0.25% | |||||
Wavin NV | 136,080 | 263,706 | |||
263,706 | |||||
CHEMICALS – 6.59% | |||||
Akzo Nobel NV | 88,816 | 4,526,483 | |||
Koninklijke DSM NV | 59,696 | 2,498,190 | |||
7,024,673 | |||||
COMMERCIAL SERVICES – 2.01% | |||||
Brunel International NV | 3,472 | 133,571 | |||
Randstad Holding NVa | 39,200 | 1,644,742 | |||
USG People NVa | 22,400 | 363,927 | |||
2,142,240 | |||||
DIVERSIFIED FINANCIAL SERVICES – 0.39% | |||||
BinckBank NV | 15,680 | 282,032 | |||
KAS Bank NV CVA | 7,280 | 133,775 | |||
415,807 | |||||
ELECTRICAL COMPONENTS & EQUIPMENT – 0.39% | |||||
Draka Holding NVa | 10,528 | 174,207 | |||
TKH Group NV | 12,992 | 239,357 | |||
413,564 | |||||
ELECTRONICS – 10.22% | |||||
Koninklijke Philips Electronics NV | 371,728 | 10,891,671 | |||
10,891,671 | |||||
ENGINEERING & CONSTRUCTION – 1.46% | |||||
Arcadis NV | 19,600 | 434,657 | |||
Koninklijke BAM Groep NVb | 42,896 | 340,470 | |||
Royal Boskalis Westminster | 24,304 | 783,918 | |||
1,559,045 |
Security | Shares | Value | |||
FOOD – 24.20% | |||||
CSM NV CVA | 25,760 | $ | 685,692 | ||
Koninklijke Ahold NV | 416,640 | 5,117,297 | |||
Koninklijke Wessanen NVa | 33,488 | 127,460 | |||
Nutreco Holding NV | 12,656 | 751,489 | |||
Sligro Food Group NV | 10,080 | 323,408 | |||
Unilever NV CVA | 623,168 | 18,794,666 | |||
25,800,012 | |||||
HOLDING COMPANIES – DIVERSIFIED – 0.80% | |||||
Imtech NV | 23,744 | 726,647 | |||
Ordina NVa | 20,496 | 129,841 | |||
856,488 | |||||
HOUSEWARES – 0.11% | |||||
Hunter Douglas NV | 2,576 | 116,942 | |||
116,942 | |||||
INSURANCE – 15.12% | |||||
AEGON NVa | 596,064 | 3,766,267 | |||
ING Groep NV CVAa | 1,378,720 | 12,352,305 | |||
16,118,572 | |||||
INVESTMENT COMPANIES – 0.13% | |||||
Kardan NVa | 22,400 | 136,339 | |||
136,339 | |||||
LEISURE TIME – 0.12% | |||||
Accell Group NV | 2,576 | 125,432 | |||
125,432 | |||||
MANUFACTURING – 0.73% | |||||
Aalberts Industries NV | 36,064 | 502,501 | |||
Koninklijke Ten Cate NV | 10,416 | 273,633 | |||
776,134 | |||||
MEDIA – 5.08% | |||||
Reed Elsevier NV | 280,784 | 3,224,893 | |||
Wolters Kluwer NV | 108,640 | 2,195,004 | |||
5,419,897 | |||||
METAL FABRICATE & HARDWARE – 0.08% | |||||
Advanced Metallurgical | 8,288 | 89,241 | |||
89,241 | |||||
OFFICE & BUSINESS EQUIPMENT – 0.29% | |||||
Oce NVa | 26,700 | 312,196 | |||
312,196 |
SCHEDULESOF INVESTMENTS | 33 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI NETHERLANDS INVESTABLE MARKET INDEX FUND
February 28, 2010
Security | Shares | Value | |||
OIL & GAS SERVICES – 2.43% | |||||
Fugro NV CVA | 25,312 | $ | 1,473,962 | ||
SBM Offshore NV | 62,720 | 1,115,290 | |||
2,589,252 | |||||
PHARMACEUTICALS – 0.38% | |||||
Mediq NV | 23,632 | 404,906 | |||
404,906 | |||||
REAL ESTATE INVESTMENT TRUSTS – 3.13% | |||||
Corio NV | 21,168 | 1,312,669 | |||
Eurocommercial Properties NV | 12,320 | 471,439 | |||
Nieuwe Steen Investments NV | 10,752 | 217,164 | |||
VastNed Offices/Industrial NV | 7,056 | 121,667 | |||
VastNed Retail NV | 6,832 | 434,947 | |||
Wereldhave NV | 8,624 | 778,295 | |||
3,336,181 | |||||
RETAIL – 0.28% | |||||
Beter Bed Holding NV | 6,608 | 165,930 | |||
Macintosh Retail Group NV | 6,720 | 135,590 | |||
301,520 | |||||
SEMICONDUCTORS – 4.99% | |||||
ASM International NVa | 17,472 | 411,310 | |||
ASML Holding NV | 159,712 | 4,906,256 | |||
5,317,566 | |||||
SOFTWARE – 0.64% | |||||
Exact Holding NV | 4,480 | 111,211 | |||
TomTom NVa,b | 45,808 | 358,769 | |||
Unit 4 Agresso NVa | 9,072 | 217,712 | |||
687,692 | |||||
TELECOMMUNICATIONS – 9.54% | |||||
Koninklijke KPN NV | 636,944 | 10,170,079 | |||
10,170,079 | |||||
TRANSPORTATION – 4.71% | |||||
Royal Vopak NVa | 12,656 | 932,841 | |||
Smit Internationale NV | 4,256 | 361,558 | |||
TNT NV | 143,584 | 3,724,992 | |||
5,019,391 | |||||
TOTAL COMMON STOCKS | 106,300,846 |
Security | Shares | Value | ||||
SHORT-TERM INVESTMENTS – 0.65% |
| |||||
MONEY MARKET FUNDS – 0.65% |
| |||||
BlackRock Cash Funds: Institutional, SL Agency Shares 0.17%c,d,e | 508,800 | $ | 508,800 | |||
BlackRock Cash Funds: | 81,770 | 81,770 | ||||
BlackRock Cash Funds: Treasury, SL Agency Shares 0.10%c,d | 106,740 | 106,740 | ||||
697,310 | ||||||
TOTAL SHORT-TERM INVESTMENTS | 697,310 | |||||
TOTAL INVESTMENTS | 106,998,156 | |||||
Other Assets, Less Liabilities – (0.36)% | (388,340 | ) | ||||
NET ASSETS – 100.00% | $ | 106,609,816 | ||||
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.
34 | 2010 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited)
iSHARES® MSCI SPAIN INDEX FUND
February 28, 2010
Security | Shares | Value | |||
COMMON STOCKS – 99.82% | |||||
AIRLINES – 0.53% | |||||
Iberia Lineas Aereas de | 414,106 | $ | 1,252,894 | ||
1,252,894 | |||||
BANKS – 36.17% | |||||
Banco Bilbao Vizcaya | 1,086,470 | 14,159,839 | |||
Banco de Sabadell SAb | 1,032,647 | 5,005,668 | |||
Banco de Valencia SAb | 419,958 | 2,705,111 | |||
Banco Popular Espanol SA | 904,982 | 6,002,241 | |||
Banco Santander SA | 4,153,842 | 54,130,876 | |||
Bankinter SAb | 339,185 | 2,775,000 | |||
84,778,735 | |||||
COMMERCIAL SERVICES – 4.93% | |||||
Abertis Infraestructuras SA | 437,437 | 8,262,069 | |||
Ferrovial SA | 373,065 | 3,294,018 | |||
11,556,087 | |||||
COMPUTERS – 1.63% | |||||
Indra Sistemas SA | 186,263 | 3,820,523 | |||
3,820,523 | |||||
DIVERSIFIED FINANCIAL SERVICES – 3.69% | |||||
Criteria CaixaCorp SA | 1,888,425 | 8,659,169 | |||
8,659,169 | |||||
ELECTRIC – 7.02% | |||||
Iberdrola SA | 1,371,370 | 11,068,102 | |||
Red Electrica Corporacion SA | 107,007 | 5,397,359 | |||
16,465,461 | |||||
ENERGY – ALTERNATE SOURCES – 0.67% | |||||
Gamesa Corporacion | 125,279 | 1,562,650 | |||
1,562,650 | |||||
ENGINEERING & CONSTRUCTION – 5.74% | |||||
Acciona SA | 32,032 | 3,568,380 | |||
Actividades de Construcciones y | 166,782 | 7,429,105 | |||
Fomento de Construcciones y | 44,814 | 1,506,925 | |||
Sacyr Vallehermoso SAa,b | 116,809 | 951,833 | |||
13,456,243 |
Security | Shares | Value | |||
GAS – 3.71% | |||||
Enagas SA | 183,183 | $ | 3,829,844 | ||
Gas Natural SDG SA | 265,265 | 4,876,236 | |||
8,706,080 | |||||
INSURANCE – 3.26% | |||||
Mapfre SA | 2,118,938 | 7,648,585 | |||
7,648,585 | |||||
IRON & STEEL – 1.68% | |||||
Acerinox SA | 229,460 | 3,928,392 | |||
3,928,392 | |||||
MACHINERY – 0.63% | |||||
Zardoya Otis SA | 81,425 | 1,483,461 | |||
1,483,461 | |||||
MEDIA – 1.00% | |||||
Gestevision Telecinco SA | 176,253 | 2,335,811 | |||
2,335,811 | |||||
OIL & GAS – 4.68% | |||||
Repsol YPF SA | 482,790 | 10,960,195 | |||
10,960,195 | |||||
PHARMACEUTICALS – 0.67% | |||||
Grifols SA | 104,335 | 1,580,484 | |||
1,580,484 | |||||
RETAIL – 4.87% | |||||
Industria de Diseno Textil SA | 192,962 | 11,405,049 | |||
11,405,049 | |||||
TELECOMMUNICATIONS – 18.94% | |||||
Telefonica SA | 1,886,192 | 44,390,117 | |||
44,390,117 | |||||
TOTAL COMMON STOCKS | |||||
(Cost: $352,987,256) | 233,989,936 | ||||
SHORT-TERM INVESTMENTS – 7.02% | |||||
MONEY MARKET FUNDS – 7.02% | |||||
BlackRock Cash Funds: Institutional, SL Agency Shares 0.17%c,d,e | 14,140,382 | 14,140,382 | |||
BlackRock Cash Funds: Prime, SL Agency Shares 0.16%c,d,e | 2,272,511 | 2,272,511 |
SCHEDULESOF INVESTMENTS | 35 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI SPAIN INDEX FUND
February 28, 2010
Security | Shares | Value | ||||
BlackRock Cash Funds: Treasury, SL Agency Shares | 28,981 | $ | 28,981 | |||
16,441,874 | ||||||
TOTAL SHORT-TERM INVESTMENTS |
| |||||
(Cost: $16,441,874) | 16,441,874 | |||||
TOTAL INVESTMENTS |
| |||||
(Cost: $369,429,130) | 250,431,810 | |||||
Other Assets, Less Liabilities – (6.84)% | (16,025,810 | ) | ||||
NET ASSETS – 100.00% | $ | 234,406,000 | ||||
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.
36 | 2010 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited)
iSHARES® MSCI SWEDEN INDEX FUND
February 28, 2010
Security | Shares | Value | |||
COMMON STOCKS – 99.78% | |||||
AGRICULTURE – 2.15% | |||||
Swedish Match AB | 188,720 | $ | 4,309,263 | ||
4,309,263 | |||||
AUTO MANUFACTURERS – 1.70% | |||||
Scania AB Class B | 241,136 | 3,414,213 | |||
3,414,213 | |||||
BANKS – 22.41% | |||||
Nordea Bank AB | 2,430,624 | 23,786,257 | |||
Skandinaviska Enskilda | 1,142,848 | 6,927,325 | |||
Svenska Handelsbanken AB | 357,728 | 9,782,990 | |||
Swedbank AB Class Aa | 459,984 | 4,401,188 | |||
44,897,760 | |||||
COMMERCIAL SERVICES – 1.27% | |||||
Securitas AB Class B | 234,864 | 2,541,114 | |||
2,541,114 | |||||
DIVERSIFIED FINANCIAL SERVICES – 1.33% | |||||
Kinnevik Investment AB Class B | 162,736 | 2,665,684 | |||
2,665,684 | |||||
ENGINEERING & CONSTRUCTION – 2.49% | |||||
Skanska AB Class B | 300,608 | 4,983,259 | |||
4,983,259 | |||||
FOREST PRODUCTS & PAPER – 3.67% | |||||
Holmen AB Class B | 39,648 | 986,719 | |||
Svenska Cellulosa AB Class B | 429,184 | 6,360,383 | |||
7,347,102 | |||||
HAND & MACHINE TOOLS – 4.09% | |||||
Sandvik AB | 758,576 | 8,186,091 | |||
8,186,091 | |||||
HEALTH CARE – PRODUCTS – 1.73% | |||||
Getinge AB Class B | 150,416 | 3,476,922 | |||
3,476,922 | |||||
HOME FURNISHINGS – 1.92% | |||||
Electrolux AB Class Ba | 180,544 | 3,843,333 | |||
3,843,333 | |||||
HOUSEHOLD PRODUCTS & WARES – 0.98% | |||||
Husqvarna AB Class Ba | 305,872 | 1,974,020 | |||
1,974,020 |
Security | Shares | Value | |||
INVESTMENT COMPANIES – 4.23% | |||||
Investor AB Class B | 345,968 | $ | 6,153,547 | ||
Ratos AB Class B | 76,384 | 2,319,825 | |||
8,473,372 | |||||
IRON & STEEL – 1.62% | |||||
SSAB AB Class A | 135,968 | 2,284,566 | |||
SSAB AB Class B | 63,056 | 962,843 | |||
3,247,409 | |||||
MACHINERY – 10.26% | |||||
Atlas Copco AB Class Ab | 504,112 | 7,151,832 | |||
Atlas Copco AB Class B | 293,216 | 3,792,928 | |||
Volvo AB Class A | 324,128 | 2,725,316 | |||
Volvo AB Class B | 810,656 | 6,878,805 | |||
20,548,881 | |||||
MANUFACTURING – 1.80% | |||||
Alfa Laval AB | 254,016 | 3,610,866 | |||
3,610,866 | |||||
METAL FABRICATE & HARDWARE – 4.53% | |||||
Assa Abloy AB Class B | 235,200 | 4,424,789 | |||
SKF AB Class B | 293,776 | 4,651,080 | |||
9,075,869 | |||||
OIL & GAS – 0.63% | |||||
Lundin Petroleum ABa | 166,992 | 1,271,432 | |||
1,271,432 | |||||
RETAIL – 11.66% | |||||
Hennes & Mauritz AB Class B | 384,048 | 23,354,507 | |||
23,354,507 | |||||
TELECOMMUNICATIONS – 21.31% | |||||
Millicom International | 57,008 | 4,833,394 | |||
Tele2 AB Class B | 234,192 | 3,490,415 | |||
Telefonaktiebolaget LM Ericsson Class B | 2,260,496 | 22,661,694 | |||
TeliaSonera AB | 1,686,608 | 11,703,086 | |||
42,688,589 | |||||
TOTAL COMMON STOCKS | |||||
(Cost: $256,314,872) | 199,909,686 |
SCHEDULESOF INVESTMENTS | 37 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI SWEDEN INDEX FUND
February 28, 2010
Security | Shares | Value | ||||
SHORT-TERM INVESTMENTS – 1.19% |
| |||||
MONEY MARKET FUNDS – 1.19% |
| |||||
BlackRock Cash Funds: Institutional, SL | 2,009,494 | $ | 2,009,494 | |||
BlackRock Cash Funds: Prime, SL Agency Shares | 322,947 | 322,947 | ||||
BlackRock Cash Funds: Treasury, SL | 44,327 | 44,327 | ||||
2,376,768 | ||||||
TOTAL SHORT-TERM INVESTMENTS |
| |||||
(Cost: $2,376,768) | 2,376,768 | |||||
TOTAL INVESTMENTS |
| |||||
(Cost: $258,691,640) | 202,286,454 | |||||
Other Assets, Less Liabilities – (0.97)% | (1,945,906 | ) | ||||
NET ASSETS – 100.00% | $ | 200,340,548 | ||||
SDR – Swedish Depositary Receipts
a | Non-income earning security. |
b | All or a portion of this security represents a security on loan. See Note 5. |
c | 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.
38 | 2010 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited)
iSHARES® MSCI SWITZERLAND INDEX FUND
February 28, 2010
Security | Shares | Value | |||
COMMON STOCKS – 99.06% | |||||
BANKS – 7.86% | |||||
Baloise Holding AG Registered | 30,420 | $ | 2,620,067 | ||
Credit Suisse Group AG Registered | 369,135 | 16,412,882 | |||
GAM Holding Ltd. | 139,683 | 1,525,993 | |||
Julius Baer Group Ltd. | 146,053 | 4,549,861 | |||
25,108,803 | |||||
BUILDING MATERIALS – 3.33% | |||||
Geberit AG Registered | 17,784 | 3,048,544 | |||
Holcim Ltd. Registereda | 114,498 | 7,583,038 | |||
10,631,582 | |||||
CHEMICALS – 6.01% | |||||
Givaudan SA Registered | 5,179 | 4,260,317 | |||
Lonza Group AG Registered | 34,983 | 2,758,727 | |||
Syngenta AG Registered | 47,034 | 12,188,154 | |||
19,207,198 | |||||
COMMERCIAL SERVICES – 2.40% | |||||
Adecco SA Registered | 65,871 | 3,278,814 | |||
SGS SA Registered | 3,276 | 4,391,208 | |||
7,670,022 | |||||
COMPUTERS – 0.35% | |||||
Logitech International | 71,955 | 1,109,373 | |||
1,109,373 | |||||
DIVERSIFIED FINANCIAL SERVICES – 4.67% | |||||
UBS AG Registereda | 1,081,665 | 14,932,381 | |||
14,932,381 | |||||
ELECTRIC – 0.29% | |||||
BKW FMB Energie AG | 12,656 | 925,488 | |||
925,488 | |||||
ENGINEERING & CONSTRUCTION – 4.69% | |||||
ABB Ltd. Registereda | 740,025 | 14,989,507 | |||
14,989,507 | |||||
FOOD – 20.84% | |||||
Aryzta AG | 49,023 | 1,839,276 | |||
Lindt & Spruengli AG | 914 | 1,864,976 | |||
Lindt & Spruengli AG Registered | 132 | 3,075,447 | |||
Nestle SA Registered | 1,201,122 | 59,843,373 | |||
66,623,072 |
Security | Shares | Value | |||
HAND & MACHINE TOOLS – 0.77% | |||||
Schindler Holding AG | 23,166 | $ | 1,852,762 | ||
Schindler Holding AG Registered | 7,605 | 604,331 | |||
2,457,093 | |||||
HEALTH CARE – PRODUCTS – 4.75% | |||||
Nobel Biocare Holding AG Registered | 67,392 | 1,716,209 | |||
Sonova Holding AG Registered | 32,058 | 4,004,262 | |||
Straumann Holding AG Registered | 6,201 | 1,514,413 | |||
Synthes Inc. | 66,573 | 7,949,293 | |||
15,184,177 | |||||
INSURANCE – 7.47% | |||||
Swiss Life Holding AG Registereda | 15,678 | 1,978,748 | |||
Swiss Reinsurance Co. Registered | 151,047 | 6,797,678 | |||
Zurich Financial Services AG Registered | 62,595 | 15,111,955 | |||
23,888,381 | |||||
INVESTMENT COMPANIES – 0.99% | |||||
Pargesa Holding SA Bearer | 40,365 | 3,166,214 | |||
3,166,214 | |||||
PHARMACEUTICALS – 26.65% | |||||
Actelion Ltd. Registereda | 60,489 | 3,087,037 | |||
Novartis AG Registered | 681,057 | 37,931,726 | |||
Roche Holding AG Genusschein | 264,186 | 44,178,755 | |||
85,197,518 | |||||
RETAIL – 5.09% | |||||
Compagnie Financiere Richemont | 294,489 | 9,942,572 | |||
Swatch Group AG (The) Bearer | 16,545 | 4,606,629 | |||
Swatch Group AG (The) Registered | 32,253 | 1,713,666 | |||
16,262,867 | |||||
TELECOMMUNICATIONS – 2.28% | |||||
Swisscom AG Registered | 21,177 | 7,286,009 | |||
7,286,009 | |||||
TRANSPORTATION – 0.62% | |||||
Kuehne & Nagel International | 21,879 | 1,987,424 | |||
1,987,424 | |||||
TOTAL COMMON STOCKS | |||||
(Cost: $340,561,319) | 316,627,109 |
SCHEDULESOF INVESTMENTS | 39 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI SWITZERLAND INDEX FUND
February 28, 2010
Security | Shares | Value | |||
SHORT-TERM INVESTMENTS – 0.11% | |||||
MONEY MARKET FUNDS – 0.11% | |||||
BlackRock Cash Funds: Treasury, SL Agency Shares | 350,827 | $ | 350,827 | ||
350,827 | |||||
TOTAL SHORT-TERM INVESTMENTS | |||||
(Cost: $350,827) | 350,827 | ||||
TOTAL INVESTMENTS IN | |||||
(Cost: $340,912,146) | 316,977,936 | ||||
Other Assets, Less Liabilities – 0.83% | 2,646,350 | ||||
NET ASSETS – 100.00% | $ | 319,624,286 | |||
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.
40 | 2010 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited)
iSHARES® MSCI UNITED KINGDOM INDEX FUND
February 28, 2010
Security | Shares | Value | |||
COMMON STOCKS – 99.38% | |||||
AEROSPACE & DEFENSE – 1.95% | |||||
BAE Systems PLC | 1,542,645 | $ | 8,790,521 | ||
Cobham PLC | 500,151 | 1,839,615 | |||
Rolls-Royce Group PLCa | 804,871 | 6,837,373 | |||
17,467,509 | |||||
AGRICULTURE – 4.83% | |||||
British American Tobacco PLC | 868,452 | 29,476,918 | |||
Imperial Tobacco Group PLC | 441,258 | 13,744,438 | |||
43,221,356 | |||||
AIRLINES – 0.09% | |||||
British Airways PLCa,b | 251,980 | 810,194 | |||
810,194 | |||||
APPAREL – 0.20% | |||||
Burberry Group PLC | 189,278 | 1,802,421 | |||
1,802,421 | |||||
BANKS – 16.20% | |||||
Barclays PLC | 4,956,095 | 23,578,622 | |||
HSBC Holdings PLC | 7,568,483 | 82,914,172 | |||
Lloyds Banking Group PLCa | 16,563,583 | 13,238,609 | |||
Royal Bank of Scotland | 7,348,440 | 4,214,243 | |||
Standard Chartered PLC | 879,586 | 20,916,457 | |||
144,862,103 | |||||
BEVERAGES – 3.17% | |||||
Diageo PLC | 1,088,202 | 17,627,062 | |||
SABMiller PLC | 410,786 | 10,756,546 | |||
28,383,608 | |||||
CHEMICALS – 0.25% | |||||
Johnson Matthey PLC | 93,760 | 2,266,715 | |||
2,266,715 | |||||
COMMERCIAL SERVICES – 1.41% | |||||
Bunzl PLC | 142,984 | 1,481,305 | |||
Capita Group PLC | 269,560 | 2,938,308 | |||
Experian PLC | 445,653 | 4,118,265 | |||
G4S PLC | 553,184 | 2,279,747 | |||
Serco Group PLC | 212,718 | 1,792,465 | |||
12,610,090 |
Security | Shares | Value | |||
DISTRIBUTION & WHOLESALE – 0.32% | |||||
Wolseley PLCa | 123,060 | $ | 2,903,871 | ||
2,903,871 | |||||
DIVERSIFIED FINANCIAL SERVICES – 1.18% | |||||
ICAP PLC | 227,075 | 1,126,287 | |||
Investec PLC | 183,418 | 1,242,319 | |||
London Stock Exchange Group PLC | 65,046 | 658,523 | |||
Man Group PLC | 744,220 | 2,545,852 | |||
Old Mutual PLCa | 2,292,432 | 3,957,658 | |||
Schroders PLC | 53,619 | 976,290 | |||
10,506,929 | |||||
ELECTRIC – 2.42% | |||||
Drax Group PLC | 159,685 | 972,175 | |||
International Power PLC | 660,715 | 3,262,045 | |||
National Grid PLC | 1,067,692 | 10,597,962 | |||
Scottish & Southern | 401,410 | 6,850,505 | |||
21,682,687 | |||||
ENGINEERING & CONSTRUCTION – 0.34% | |||||
AMEC PLC | 145,328 | 1,743,429 | |||
Balfour Beatty PLC | 300,032 | 1,260,225 | |||
3,003,654 | |||||
FOOD – 5.05% | |||||
J Sainsbury PLC | 520,661 | 2,618,930 | |||
Tesco PLC | 3,451,540 | 22,053,659 | |||
Unilever PLC | 557,286 | 16,323,451 | |||
Wm Morrison Supermarkets PLC | 920,020 | 4,180,906 | |||
45,176,946 | |||||
FOOD SERVICE – 0.92% | |||||
Associated British Foods PLC | 155,876 | 2,254,403 | |||
Compass Group PLC | 803,406 | 5,963,861 | |||
8,218,264 | |||||
GAS – 1.06% | |||||
Centrica PLC | 2,233,246 | 9,509,503 | |||
9,509,503 | |||||
HEALTH CARE – PRODUCTS – 0.44% | |||||
Smith & Nephew PLC | 384,123 | 3,938,553 | |||
3,938,553 | |||||
HOLDING COMPANIES – DIVERSIFIED – 0.13% | |||||
Tomkins PLC | 384,416 | 1,127,162 | |||
1,127,162 |
SCHEDULESOF INVESTMENTS | 41 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI UNITED KINGDOM INDEX FUND
February 28, 2010
Security | Shares | Value | |||
HOUSEHOLD PRODUCTS & WARES – 1.55% | |||||
Reckitt Benckiser Group PLC | 264,579 | $ | 13,888,374 | ||
13,888,374 | |||||
INSURANCE – 3.09% | |||||
Admiral Group PLC | 82,040 | 1,548,731 | |||
Aviva PLC | 1,203,351 | 7,150,224 | |||
Legal & General Group PLC | 2,529,762 | 2,971,285 | |||
Prudential PLC | 1,100,215 | 10,091,678 | |||
RSA Insurance Group PLC | 1,487,268 | 2,934,425 | |||
Standard Life PLC | 975,690 | 2,902,453 | |||
27,598,796 | |||||
INVESTMENT COMPANIES – 0.13% | |||||
Resolution Ltd.a | 1,040,980 | 1,145,009 | |||
1,145,009 | |||||
LEISURE TIME – 0.57% | |||||
Carnival PLC | 72,664 | 2,744,573 | |||
Thomas Cook Group PLC | 372,110 | 1,335,808 | |||
TUI Travel PLC | 244,362 | 1,020,070 | |||
5,100,451 | |||||
LODGING – 0.18% | |||||
InterContinental Hotels Group PLC | 111,926 | 1,567,644 | |||
1,567,644 | |||||
MANUFACTURING – 0.49% | |||||
Invensys PLC | 350,135 | 1,678,027 | |||
Smiths Group PLC | 168,768 | 2,669,528 | |||
4,347,555 | |||||
MEDIA – 2.01% | |||||
British Sky Broadcasting | 494,877 | 4,098,500 | |||
Pearson PLC | 351,893 | 4,885,784 | |||
Reed Elsevier PLC | 526,521 | 3,943,752 | |||
WPP PLC | 543,808 | 5,000,475 | |||
17,928,511 | |||||
MINING – 12.02% | |||||
Anglo American PLCa | 572,522 | 20,831,419 | |||
Antofagasta PLC | 171,698 | 2,309,407 | |||
BHP Billiton PLC | 958,403 | 29,283,590 | |||
Eurasian Natural Resources Corp. | 112,219 | 1,754,549 | |||
Fresnillo PLC | 78,231 | 893,837 | |||
Kazakhmys PLCa | 93,467 | 1,908,165 | |||
Lonmin PLCa | 67,390 | 1,853,883 | |||
Randgold Resources Ltd. | 39,262 | 2,795,558 |
Security | Shares | Value | |||
Rio Tinto PLC | 596,548 | $ | 30,551,332 | ||
Vedanta Resources PLC | 59,772 | 2,318,601 | |||
Xstrata PLCa | 827,725 | 12,979,324 | |||
107,479,665 | |||||
OIL & GAS – 20.13% | |||||
BG Group PLC | 1,465,586 | 25,547,333 | |||
BP PLC | 8,155,362 | 71,849,790 | |||
Cairn Energy PLCa | 598,013 | 3,044,428 | |||
Royal Dutch Shell PLC Class A | 1,540,594 | 41,982,665 | |||
Royal Dutch Shell PLC | 1,172,586 | 30,642,013 | |||
Tullow Oil PLC | 384,416 | 6,958,443 | |||
180,024,672 | |||||
OIL & GAS SERVICES – 0.16% | |||||
Petrofac Ltd. | 89,072 | 1,392,645 | |||
1,392,645 | |||||
PACKAGING & CONTAINERS – 0.18% | |||||
Rexam PLC | 382,072 | 1,623,431 | |||
1,623,431 | |||||
PHARMACEUTICALS – 8.34% | |||||
AstraZeneca PLC | 630,243 | 27,666,662 | |||
GlaxoSmithKline PLC | 2,256,686 | 41,707,926 | |||
Shire PLC | 243,483 | 5,215,447 | |||
74,590,035 | |||||
REAL ESTATE – 0.81% | |||||
British Land Co. PLC | 373,868 | 2,504,377 | |||
Land Securities Group PLC | 328,453 | 3,162,733 | |||
Liberty International PLC | 218,285 | 1,570,863 | |||
7,237,973 | |||||
REAL ESTATE INVESTMENT TRUSTS – 0.37% | |||||
Hammerson PLC | 303,841 | 1,771,634 | |||
SEGRO PLC | 320,835 | 1,556,656 | |||
3,328,290 | |||||
RETAIL – 1.44% | |||||
Carphone Warehouse | 180,195 | 508,606 | |||
Home Retail Group PLC | 383,830 | 1,490,074 | |||
Kingfisher PLC | 1,024,914 | 3,354,707 | |||
Marks & Spencer Group PLC | 685,620 | 3,445,544 | |||
Next PLC | 86,142 | 2,458,923 | |||
Whitbread PLC | 76,180 | 1,646,865 | |||
12,904,719 |
42 | 2010 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI UNITED KINGDOM INDEX FUND
February 28, 2010
Security | Shares | Value | |||
SOFTWARE – 0.48% | |||||
Autonomy Corp. PLCa | 94,053 | $ | 2,190,750 | ||
Sage Group PLC (The) | 571,936 | 2,061,854 | |||
4,252,604 | |||||
TELECOMMUNICATIONS – 6.67% | |||||
BT Group PLC | 3,368,621 | 5,892,519 | |||
Cable & Wireless PLC | 1,122,776 | 2,331,505 | |||
Inmarsat PLC | 189,278 | 2,112,190 | |||
Vodafone Group PLC | 22,875,389 | 49,260,659 | |||
59,596,873 | |||||
TRANSPORTATION – 0.13% | |||||
FirstGroup PLC | 210,374 | 1,138,892 | |||
1,138,892 | |||||
VENTURE CAPITAL – 0.19% | |||||
3i Group PLC | 421,041 | 1,686,452 | |||
1,686,452 | |||||
WATER – 0.48% | |||||
Severn Trent PLC | 102,843 | 1,824,019 | |||
United Utilities Group PLC | 296,809 | 2,455,870 | |||
4,279,889 | |||||
TOTAL COMMON STOCKS | |||||
(Cost: $1,075,207,044) | 888,604,045 | ||||
SHORT-TERM INVESTMENTS – 0.09% | |||||
MONEY MARKET FUNDS – 0.09% | |||||
BlackRock Cash Funds: Institutional, SL | 640,382 | 640,382 | |||
BlackRock Cash Funds: Prime, SL Agency Shares | 102,916 | 102,916 | |||
BlackRock Cash Funds: Treasury, SL | 67,528 | 67,528 | |||
810,826 | |||||
TOTAL SHORT-TERM INVESTMENTS | |||||
(Cost: $810,826) | 810,826 | ||||
Value | |||||
TOTAL INVESTMENTS IN SECURITIES – 99.47% | |||||
(Cost: $1,076,017,870) | $ | 889,414,871 | |||
Other Assets, Less Liabilities – 0.53% | 4,756,520 | ||||
NET ASSETS – 100.00% | $ | 894,171,391 | |||
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 | 43 |
Table of Contents
Statements of Assets and Liabilities (Unaudited)
iSHARES®, INC.
February 28, 2010
iShares MSCI | ||||||||||||||||
Austria Investable Market Index Fund | Belgium Investable Market Index Fund | Emerging Markets Eastern Europe Index Fund | EMU Index Fund | |||||||||||||
ASSETS | ||||||||||||||||
Investments, at cost: | ||||||||||||||||
Unaffiliated issuers | $ | 202,558,309 | $ | 152,841,533 | $ | 11,748,388 | $ | 1,193,706,904 | ||||||||
Affiliated issuers (Note 2) | 21,623,967 | 84,049 | 10,541 | 12,088,021 | ||||||||||||
Total cost of investments | $ | 224,182,276 | $ | 152,925,582 | $ | 11,758,929 | $ | 1,205,794,925 | ||||||||
Investments in securities, at fair value | ||||||||||||||||
(including securities on loana) (Note 1): | ||||||||||||||||
Unaffiliated issuers | $ | 131,677,026 | $ | 110,937,177 | $ | 11,686,932 | $ | 819,237,505 | ||||||||
Affiliated issuers (Note 2) | 21,623,967 | 84,049 | 10,541 | 12,088,021 | ||||||||||||
Total fair value of investments | 153,300,993 | 111,021,226 | 11,697,473 | 831,325,526 | ||||||||||||
Foreign currencies, at valueb | 20,874 | 118,495 | 2,194 | 844,973 | ||||||||||||
Receivables: | ||||||||||||||||
Investment securities sold | 1,496,454 | – | 54,699 | 1,967,563 | ||||||||||||
Dividends and interest | 1,030,730 | 720,370 | 1 | 586,389 | ||||||||||||
Capital shares sold | – | 13,663 | – | – | ||||||||||||
Total Assets | 155,849,051 | 111,873,754 | 11,754,367 | 834,724,451 | ||||||||||||
LIABILITIES | ||||||||||||||||
Payables: | ||||||||||||||||
Investment securities purchased | 1,537,204 | – | 48,831 | 1,424,667 | ||||||||||||
Collateral for securities on loan (Note 5) | 21,555,213 | – | – | 12,015,793 | ||||||||||||
Investment advisory fees (Note 2) | 56,042 | 38,002 | 6,219 | 338,032 | ||||||||||||
Total Liabilities | 23,148,459 | 38,002 | 55,050 | 13,778,492 | ||||||||||||
NET ASSETS | $ | 132,700,592 | $ | 111,835,752 | $ | 11,699,317 | $ | 820,945,959 | ||||||||
Net assets consist of: | ||||||||||||||||
Paid-in capital | $ | 266,730,101 | $ | 171,963,107 | $ | 11,783,734 | $ | 1,309,880,155 | ||||||||
Distributions in excess of net investment income or accumulated net investment loss | (2,347,932 | ) | (111,162 | ) | (21,597 | ) | (867,387 | ) | ||||||||
Accumulated net realized loss | (60,699,956 | ) | (18,015,614 | ) | (1,358 | ) | (113,531,316 | ) | ||||||||
Net unrealized depreciation on investments and translation of assets and liabilities in foreign currencies | (70,981,621 | ) | (42,000,579 | ) | (61,462 | ) | (374,535,493 | ) | ||||||||
NET ASSETS | $ | 132,700,592 | $ | 111,835,752 | $ | 11,699,317 | $ | 820,945,959 | ||||||||
Shares outstandingc | 7,200,000 | 8,920,000 | 450,000 | 24,400,000 | ||||||||||||
Net asset value per share | $ | 18.43 | $ | 12.54 | $ | 26.00 | $ | 33.65 | ||||||||
a | Securities on loan with values of $20,174,804, $—, $— and $11,428,242, respectively. See Note 5. |
b | Cost of foreign currencies: $21,841, $118,495, $2,256 and $868,031, respectively. |
c | $0.001 par value, number of shares authorized: 100 million, 136.2 million, 200 million and 1 billion, respectively. |
See notes to financial statements.
44 | 2010 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Statements of Assets and Liabilities (Unaudited) (Continued)
iSHARES®, INC.
February 28, 2010
iShares MSCI | ||||||||||||||||
France Index Fund | Germany Index Fund | Italy Index Fund | Netherlands Investable Market Index Fund | |||||||||||||
ASSETS | ||||||||||||||||
Investments, at cost: | ||||||||||||||||
Unaffiliated issuers | $ | 394,188,878 | $ | 1,018,496,316 | $ | 168,695,299 | $ | 143,043,330 | ||||||||
Affiliated issuers (Note 2) | 7,845,285 | 7,408,374 | 2,462,257 | 697,310 | ||||||||||||
Total cost of investments | $ | 402,034,163 | $ | 1,025,904,690 | $ | 171,157,556 | $ | 143,740,640 | ||||||||
Investments in securities, at fair value | ||||||||||||||||
(including securities on loana) (Note 1): | ||||||||||||||||
Unaffiliated issuers | $ | 292,560,815 | $ | 765,271,949 | $ | 109,604,824 | $ | 106,300,846 | ||||||||
Affiliated issuers (Note 2) | 7,845,285 | 7,408,374 | 2,462,257 | 697,310 | ||||||||||||
Total fair value of investments | 300,406,100 | 772,680,323 | 112,067,081 | 106,998,156 | ||||||||||||
Foreign currencies, at valueb | 75,465 | 570,945 | 73,466 | 101,459 | ||||||||||||
Receivables: | ||||||||||||||||
Investment securities sold | 1,933,524 | 3,063,870 | 312 | – | ||||||||||||
Dividends and interest | 50,729 | 289,009 | 295 | 142,332 | ||||||||||||
Total Assets | 302,465,818 | 776,604,147 | 112,141,154 | 107,241,947 | ||||||||||||
LIABILITIES | ||||||||||||||||
Payables: | ||||||||||||||||
Investment securities purchased | 1,505,450 | 2,243,359 | – | – | ||||||||||||
Collateral for securities on loan (Note 5) | 7,830,279 | 7,364,225 | 2,393,827 | 590,570 | ||||||||||||
Capital shares redeemed | – | 86,219 | – | – | ||||||||||||
Investment advisory fees (Note 2) | 119,751 | 360,421 | 46,235 | 41,561 | ||||||||||||
Total Liabilities | 9,455,480 | 10,054,224 | 2,440,062 | 632,131 | ||||||||||||
NET ASSETS | $ | 293,010,338 | $ | 766,549,923 | $ | 109,701,092 | $ | 106,609,816 | ||||||||
Net assets consist of: | ||||||||||||||||
Paid-in capital | $ | 414,382,393 | $ | 1,122,789,949 | $ | 198,440,248 | $ | 183,794,026 | ||||||||
Undistributed (distributions in excess of) net investment income (accumulated net investment loss) | (264,632 | ) | (298,212 | ) | (162,443 | ) | 64,635 | |||||||||
Accumulated net realized loss | (19,480,436 | ) | (102,692,238 | ) | (29,486,241 | ) | (40,505,829 | ) | ||||||||
Net unrealized depreciation on investments and translation of assets and liabilities in foreign currencies | (101,626,987 | ) | (253,249,576 | ) | (59,090,472 | ) | (36,743,016 | ) | ||||||||
NET ASSETS | $ | 293,010,338 | $ | 766,549,923 | $ | 109,701,092 | $ | 106,609,816 | ||||||||
Shares outstandingc | 12,400,000 | 38,100,000 | 6,450,000 | 5,600,000 | ||||||||||||
Net asset value per share | $ | 23.63 | $ | 20.12 | $ | 17.01 | $ | 19.04 | ||||||||
a | Securities on loan with values of $7,455,686, $7,001,848, $2,260,881 and $561,475, respectively. See Note 5. |
b | Cost of foreign currencies: $74,784, $587,309, $73,466 and $101,459, respectively. |
c | $0.001 par value, number of shares authorized: 340.2 million, 382.2 million, 63.6 million and 255 million, respectively. |
See notes to financial statements.
FINANCIAL STATEMENTS | 45 |
Table of Contents
Statements of Assets and Liabilities (Unaudited) (Continued)
iSHARES®, INC.
February 28, 2010
iShares MSCI | ||||||||||||||||
Spain Index Fund | Sweden Index Fund | Switzerland Index Fund | United Kingdom Index Fund | |||||||||||||
ASSETS | ||||||||||||||||
Investments, at cost: | ||||||||||||||||
Unaffiliated issuers | $ | 352,987,256 | $ | 256,314,872 | $ | 340,561,319 | $ | 1,075,207,044 | ||||||||
Affiliated issuers (Note 2) | 16,441,874 | 2,376,768 | 350,827 | 810,826 | ||||||||||||
Total cost of investments | $ | 369,429,130 | $ | 258,691,640 | $ | 340,912,146 | $ | 1,076,017,870 | ||||||||
Investments in securities, at fair value | ||||||||||||||||
(including securities on loana) (Note 1): | ||||||||||||||||
Unaffiliated issuers | $ | 233,989,936 | $ | 199,909,686 | $ | 316,627,109 | $ | 888,604,045 | ||||||||
Affiliated issuers (Note 2) | 16,441,874 | 2,376,768 | 350,827 | 810,826 | ||||||||||||
Total fair value of investments | 250,431,810 | 202,286,454 | 316,977,936 | 889,414,871 | ||||||||||||
Foreign currencies, at valueb | 392,902 | 172,764 | 267,193 | 1,397,095 | ||||||||||||
Receivables: | ||||||||||||||||
Investment securities sold | – | 6,992,995 | – | 384,998 | ||||||||||||
Dividends and interest | 92,014 | – | 2,507,553 | 4,779,417 | ||||||||||||
Total Assets | 250,916,726 | 209,452,213 | 319,752,682 | 895,976,381 | ||||||||||||
LIABILITIES | ||||||||||||||||
Payables: | ||||||||||||||||
Investment securities purchased | – | 6,698,541 | – | 694,959 | ||||||||||||
Collateral for securities on loan (Note 5) | 16,412,893 | 2,332,441 | – | 743,298 | ||||||||||||
Investment advisory fees (Note 2) | 97,833 | 80,683 | 128,396 | 366,733 | ||||||||||||
Total Liabilities | 16,510,726 | 9,111,665 | 128,396 | 1,804,990 | ||||||||||||
NET ASSETS | $ | 234,406,000 | $ | 200,340,548 | $ | 319,624,286 | $ | 894,171,391 | ||||||||
Net assets consist of: | ||||||||||||||||
Paid-in capital | $ | 380,823,297 | $ | 284,112,921 | $ | 380,709,527 | $ | 1,187,056,209 | ||||||||
Undistributed net investment income (accumulated net investment loss) | 1,157,953 | (641,627 | ) | (902,848 | ) | 4,642,667 | ||||||||||
Accumulated net realized loss | (28,573,481 | ) | (26,728,488 | ) | (36,239,972 | ) | (110,752,906 | ) | ||||||||
Net unrealized depreciation on investments and translation of assets and liabilities in foreign currencies | (119,001,769 | ) | (56,402,258 | ) | (23,942,421 | ) | (186,774,579 | ) | ||||||||
NET ASSETS | $ | 234,406,000 | $ | 200,340,548 | $ | 319,624,286 | $ | 894,171,391 | ||||||||
Shares outstandingc | 5,775,000 | 8,400,000 | 14,625,000 | 58,600,000 | ||||||||||||
Net asset value per share | $ | 40.59 | $ | 23.85 | $ | 21.85 | $ | 15.26 | ||||||||
a | Securities on loan with values of $15,590,749, $2,217,978, $— and $700,896, respectively. See Note 5. |
b | Cost of foreign currencies: $392,902, $169,836, $267,194 and $1,433,071, respectively. |
c | $0.001 par value, number of shares authorized: 127.8 million, 63.6 million, 318.625 million and 934.2 million, respectively. |
See notes to financial statements.
46 | 2010 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Statements of Operations (Unaudited)
iSHARES®, INC.
Six months ended February 28, 2010
iShares MSCI | ||||||||||||||||
Austria Investable Market Index Fund | Belgium Investable Market Index Fund | Emerging Markets Eastern Europe Index Funda | EMU Index Fund | |||||||||||||
NET INVESTMENT INCOME | ||||||||||||||||
Dividends from unaffiliated issuersb | $ | 1,330,156 | $ | 171,693 | $ | 1,538 | $ | 5,862,521 | ||||||||
Interest from affiliated issuers (Note 2) | 54 | 16 | 1 | 153 | ||||||||||||
Securities lending income from affiliated issuers (Note 2) | 294,129 | 2,595 | – | 71,122 | ||||||||||||
Total investment income | 1,624,339 | 174,304 | 1,539 | 5,933,796 | ||||||||||||
EXPENSES | ||||||||||||||||
Investment advisory fees (Note 2) | 509,589 | 197,207 | 23,136 | 2,399,384 | ||||||||||||
Total expenses | 509,589 | 197,207 | 23,136 | 2,399,384 | ||||||||||||
Net investment income (loss) | 1,114,750 | (22,903 | ) | (21,597 | ) | 3,534,412 | ||||||||||
NET REALIZED AND UNREALIZED GAIN (LOSS) | ||||||||||||||||
Net realized gain (loss) from: | ||||||||||||||||
Investments in unaffiliated issuers | (11,905,146 | ) | (1,030,894 | ) | (1,416 | ) | (14,271,500 | ) | ||||||||
In-kind redemptions | 13,180,985 | 6,028,230 | – | 19,793,946 | ||||||||||||
Foreign currency transactions | (17,626 | ) | (14,781 | ) | 58 | (61,754 | ) | |||||||||
Net realized gain (loss) | 1,258,213 | 4,982,555 | (1,358 | ) | 5,460,692 | |||||||||||
Net change in unrealized appreciation (depreciation) on: | ||||||||||||||||
Investments | (11,169,638 | ) | 786,912 | (61,456 | ) | (59,761,892 | ) | |||||||||
Translation of assets and liabilities in foreign currencies | (53,602 | ) | (45,735 | ) | (6 | ) | (88,791 | ) | ||||||||
Net change in unrealized appreciation (depreciation) | (11,223,240 | ) | 741,177 | (61,462 | ) | (59,850,683 | ) | |||||||||
Net realized and unrealized gain (loss) | (9,965,027 | ) | 5,723,732 | (62,820 | ) | (54,389,991 | ) | |||||||||
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS | $ | (8,850,277 | ) | $ | 5,700,829 | $ | (84,417 | ) | $ | (50,855,579 | ) | |||||
a | For the period from September 30, 2009 (commencement of operations) to February 28, 2010. |
b | Net of foreign withholding tax of $40,153, $26,344, $271 and $880,322, respectively. |
See notes to financial statements.
FINANCIAL STATEMENTS | 47 |
Table of Contents
Statements of Operations (Unaudited) (Continued)
iSHARES®, INC.
Six months ended February 28, 2010
iShares MSCI | ||||||||||||||||
France Index Fund | Germany Index Fund | Italy Index Fund | Netherlands Index Fund | |||||||||||||
NET INVESTMENT INCOME | ||||||||||||||||
Dividends from unaffiliated issuersa | $ | 1,585,913 | $ | 2,127,760 | $ | 1,271,899 | $ | 371,503 | ||||||||
Interest from affiliated issuers (Note 2) | 51 | 129 | 26 | 21 | ||||||||||||
Securities lending income from affiliated issuers (Note 2) | 8,525 | 112,438 | 1,824 | 4,924 | ||||||||||||
Total investment income | 1,594,489 | 2,240,327 | 1,273,749 | 376,448 | ||||||||||||
EXPENSES | ||||||||||||||||
Investment advisory fees (Note 2) | 816,196 | 2,390,410 | 375,541 | 247,574 | ||||||||||||
Total expenses | 816,196 | 2,390,410 | 375,541 | 247,574 | ||||||||||||
Net investment income (loss) | 778,293 | (150,083 | ) | 898,208 | 128,874 | |||||||||||
NET REALIZED AND UNREALIZED GAIN (LOSS) | ||||||||||||||||
Net realized gain (loss) from: | ||||||||||||||||
Investments in unaffiliated issuers | (6,123,754 | ) | (15,637,372 | ) | (4,133,811 | ) | (3,206,118 | ) | ||||||||
In-kind redemptions | 8,701,849 | 36,005,847 | 7,333,947 | 1,353,670 | ||||||||||||
Foreign currency transactions | 3,931 | 97,488 | (6,800 | ) | (114,883 | ) | ||||||||||
Net realized gain (loss) | 2,582,026 | 20,465,963 | 3,193,336 | (1,967,331 | ) | |||||||||||
Net change in unrealized appreciation (depreciation) on: | ||||||||||||||||
Investments | (16,089,341 | ) | (72,480,324 | ) | (14,680,450 | ) | 4,720,123 | |||||||||
Translation of assets and liabilities in foreign currencies | 108 | (144,565 | ) | (192 | ) | (1,373 | ) | |||||||||
Net change in unrealized appreciation (depreciation) | (16,089,233 | ) | (72,624,889 | ) | (14,680,642 | ) | 4,718,750 | |||||||||
Net realized and unrealized gain (loss) | (13,507,207 | ) | (52,158,926 | ) | (11,487,306 | ) | 2,751,419 | |||||||||
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS | $ | (12,728,914 | ) | $ | (52,309,009 | ) | $ | (10,589,098 | ) | $ | 2,880,293 | |||||
a | Net of foreign withholding tax of $270,894, $375,482, $219,818 and $65,559, respectively. |
See notes to financial statements.
48 | 2010 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Statements of Operations (Unaudited) (Continued)
iSHARES®, INC.
Six months ended February 28, 2010
iShares MSCI | ||||||||||||||||
Spain Index Fund | Sweden Index Fund | Switzerland Index Fund | United Kingdom Index Fund | |||||||||||||
NET INVESTMENT INCOME | ||||||||||||||||
Dividends from unaffiliated issuersa | $ | 5,614,321 | $ | 60,352 | $ | 58,561 | $ | 12,908,048 | ||||||||
Dividends from affiliated issuers (Note 2) | – | – | – | 77,129 | ||||||||||||
Interest from affiliated issuers (Note 2) | 73 | 24 | 96 | 132 | ||||||||||||
Securities lending income from affiliated issuers (Note 2) | 151,518 | 11,963 | 37 | 2,593 | ||||||||||||
Total investment income | 5,765,912 | 72,339 | 58,694 | 12,987,902 | ||||||||||||
EXPENSES | ||||||||||||||||
Investment advisory fees (Note 2) | 792,119 | 539,512 | 788,604 | 2,351,866 | ||||||||||||
Total expenses | 792,119 | 539,512 | 788,604 | 2,351,866 | ||||||||||||
Net investment income (loss) | 4,973,793 | (467,173 | ) | (729,910 | ) | 10,636,036 | ||||||||||
NET REALIZED AND UNREALIZED GAIN (LOSS) | ||||||||||||||||
Net realized gain (loss) from: | ||||||||||||||||
Investments in unaffiliated issuers | (6,165,683 | ) | (4,934,488 | ) | (1,828,747 | ) | (16,329,797 | ) | ||||||||
Investments in affiliated issuers (Note 2) | – | – | – | 1,499,143 | ||||||||||||
In-kind redemptions | 8,471,174 | 6,584,661 | 4,380,757 | 28,182,715 | ||||||||||||
Foreign currency transactions | (31,682 | ) | (4,042 | ) | 5,461 | (444,602 | ) | |||||||||
Net realized gain | 2,273,809 | 1,646,131 | 2,557,471 | 12,907,459 | ||||||||||||
Net change in unrealized appreciation (depreciation) on: | ||||||||||||||||
Investments | (40,603,036 | ) | 4,158,898 | 13,089,568 | (3,883,619 | ) | ||||||||||
Translation of assets and liabilities in foreign currencies | (3,634 | ) | 537 | (41,493 | ) | (93,723 | ) | |||||||||
Net change in unrealized appreciation (depreciation) | (40,606,670 | ) | 4,159,435 | 13,048,075 | (3,977,342 | ) | ||||||||||
Net realized and unrealized gain (loss) | (38,332,861 | ) | 5,805,566 | 15,605,546 | 8,930,117 | |||||||||||
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS | $ | (33,359,068 | ) | $ | 5,338,393 | $ | 14,875,636 | $ | 19,566,153 | |||||||
a | Net of foreign withholding tax of $790,994, $10,651, $38,947 and $188,828, respectively. |
See notes to financial statements.
FINANCIAL STATEMENTS | 49 |
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, 2010 (Unaudited) | Year ended August 31, 2009 | Six months ended February 28, 2010 (Unaudited) | Year ended August 31, 2009 | |||||||||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||||||||||
OPERATIONS: | ||||||||||||||||
Net investment income (loss) | $ | 1,114,750 | $ | 3,099,628 | $ | (22,903 | ) | $ | 1,365,882 | |||||||
Net realized gain (loss) | 1,258,213 | (87,858,013 | ) | 4,982,555 | (47,188,282 | ) | ||||||||||
Net change in unrealized appreciation (depreciation) | (11,223,240 | ) | 5,402,819 | 741,177 | 7,864,840 | |||||||||||
Net increase (decrease) in net assets resulting from operations | (8,850,277 | ) | (79,355,566 | ) | 5,700,829 | (37,957,560 | ) | |||||||||
DISTRIBUTIONS TO SHAREHOLDERS: | ||||||||||||||||
From net investment income | (4,769,107 | ) | (4,361,827 | ) | (212,415 | ) | (1,992,257 | ) | ||||||||
Total distributions to shareholders | (4,769,107 | ) | (4,361,827 | ) | (212,415 | ) | (1,992,257 | ) | ||||||||
CAPITAL SHARE TRANSACTIONS: | ||||||||||||||||
Proceeds from shares sold | 91,402,718 | 153,297,660 | 89,857,541 | 71,837,760 | ||||||||||||
Cost of shares redeemed | (104,748,669 | ) | (103,516,511 | ) | (36,552,450 | ) | (98,800,329 | ) | ||||||||
Net increase (decrease) in net assets from capital share transactions | (13,345,951 | ) | 49,781,149 | 53,305,091 | (26,962,569 | ) | ||||||||||
INCREASE (DECREASE) IN NET ASSETS | (26,965,335 | ) | (33,936,244 | ) | 58,793,505 | (66,912,386 | ) | |||||||||
NET ASSETS | ||||||||||||||||
Beginning of period | 159,665,927 | 193,602,171 | 53,042,247 | 119,954,633 | ||||||||||||
End of period | $ | 132,700,592 | $ | 159,665,927 | $ | 111,835,752 | $ | 53,042,247 | ||||||||
Undistributed (distributions in excess of) net investment income (accumulated net investment loss) included in net assets at end of period | $ | (2,347,932 | ) | $ | 1,306,425 | $ | (111,162 | ) | $ | 124,156 | ||||||
SHARES ISSUED AND REDEEMED | ||||||||||||||||
Shares sold | 4,300,000 | 8,000,000 | 7,280,000 | 7,480,000 | ||||||||||||
Shares redeemed | (5,000,000 | ) | (6,600,000 | ) | (2,760,000 | ) | (9,880,000 | ) | ||||||||
Net increase (decrease) in shares outstanding | (700,000 | ) | 1,400,000 | 4,520,000 | (2,400,000 | ) | ||||||||||
See notes to financial statements.
50 | 2010 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Statements of Changes in Net Assets (Continued)
iSHARES®, INC.
iShares MSCI Emerging Markets Eastern Europe Index Fund | iShares MSCI EMU Index Fund | |||||||||||
Period from September 30, 2009a to February 28, 2010 (Unaudited) | Six months ended February 28, 2010 (Unaudited) | Year ended August 31, 2009 | ||||||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||||||
OPERATIONS: | ||||||||||||
Net investment income (loss) | $ | (21,597 | ) | $ | 3,534,412 | $ | 21,630,080 | |||||
Net realized gain (loss) | (1,358 | ) | 5,460,692 | (230,656,541 | ) | |||||||
Net change in unrealized appreciation (depreciation) | (61,462 | ) | (59,850,683 | ) | (85,463,372 | ) | ||||||
Net decrease in net assets resulting from operations | (84,417 | ) | (50,855,579 | ) | (294,489,833 | ) | ||||||
DISTRIBUTIONS TO SHAREHOLDERS: | ||||||||||||
From net investment income | – | (7,555,560 | ) | (28,747,455 | ) | |||||||
Total distributions to shareholders | – | (7,555,560 | ) | (28,747,455 | ) | |||||||
CAPITAL SHARE TRANSACTIONS: | ||||||||||||
Proceeds from shares sold | 11,783,734 | 266,366,944 | 245,678,933 | |||||||||
Cost of shares redeemed | – | (128,279,736 | ) | (472,979,784 | ) | |||||||
Net increase (decrease) in net assets from capital share transactions | 11,783,734 | 138,087,208 | (227,300,851 | ) | ||||||||
INCREASE (DECREASE) IN NET ASSETS | 11,699,317 | 79,676,069 | (550,538,139 | ) | ||||||||
NET ASSETS | ||||||||||||
Beginning of period | – | 741,269,890 | 1,291,808,029 | |||||||||
End of period | $ | 11,699,317 | $ | 820,945,959 | $ | 741,269,890 | ||||||
Undistributed (distributions in excess of) net investment income (accumulated net investment loss) included in net assets at end of period | $ | (21,597 | ) | $ | (867,387 | ) | $ | 3,153,761 | ||||
SHARES ISSUED AND REDEEMED | ||||||||||||
Shares sold | 450,000 | 7,000,000 | 8,100,000 | |||||||||
Shares redeemed | – | (3,400,000 | ) | (15,400,000 | ) | |||||||
Net increase (decrease) in shares outstanding | 450,000 | 3,600,000 | (7,300,000 | ) | ||||||||
a | Commencement of operations. |
See notes to financial statements.
FINANCIAL STATEMENTS | 51 |
Table of Contents
Statements of Changes in Net Assets (Continued)
iSHARES®, INC.
iShares MSCI France Index Fund | iShares MSCI Germany Index Fund | |||||||||||||||
Six months ended February 28, 2010 (Unaudited) | Year ended August 31, 2009 | Six months ended February 28, 2010 (Unaudited) | Year ended August 31, 2009 | |||||||||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||||||||||
OPERATIONS: | ||||||||||||||||
Net investment income (loss) | $ | 778,293 | $ | 5,159,611 | $ | (150,083 | ) | $ | 13,569,608 | |||||||
Net realized gain (loss) | 2,582,026 | (62,251,944 | ) | 20,465,963 | (135,012,966 | ) | ||||||||||
Net change in unrealized appreciation (depreciation) | (16,089,233 | ) | (18,839,973 | ) | (72,624,889 | ) | (22,143,511 | ) | ||||||||
Net decrease in net assets resulting from operations | (12,728,914 | ) | (75,932,306 | ) | (52,309,009 | ) | (143,586,869 | ) | ||||||||
DISTRIBUTIONS TO SHAREHOLDERS: | ||||||||||||||||
From net investment income | (1,602,485 | ) | (6,641,215 | ) | (636,125 | ) | (14,693,409 | ) | ||||||||
Total distributions to shareholders | (1,602,485 | ) | (6,641,215 | ) | (636,125 | ) | (14,693,409 | ) | ||||||||
CAPITAL SHARE TRANSACTIONS: | ||||||||||||||||
Proceeds from shares sold | 197,105,175 | 138,974,524 | 503,251,193 | 443,092,148 | ||||||||||||
Cost of shares redeemed | (74,274,830 | ) | (99,092,138 | ) | (303,393,883 | ) | (334,626,102 | ) | ||||||||
Net increase in net assets from capital share transactions | 122,830,345 | 39,882,386 | 199,857,310 | 108,466,046 | ||||||||||||
INCREASE (DECREASE) IN NET ASSETS | 108,498,946 | (42,691,135 | ) | 146,912,176 | (49,814,232 | ) | ||||||||||
NET ASSETS | ||||||||||||||||
Beginning of period | 184,511,392 | 227,202,527 | 619,637,747 | 669,451,979 | ||||||||||||
End of period | $ | 293,010,338 | $ | 184,511,392 | $ | 766,549,923 | $ | 619,637,747 | ||||||||
Undistributed (distributions in excess of) net investment income (accumulated net investment loss) included in net assets at end of period | $ | (264,632 | ) | $ | 559,560 | $ | (298,212 | ) | $ | 487,996 | ||||||
SHARES ISSUED AND REDEEMED | ||||||||||||||||
Shares sold | 7,800,000 | 5,600,000 | 22,800,000 | 23,400,000 | ||||||||||||
Shares redeemed | (3,000,000 | ) | (5,400,000 | ) | (14,400,000 | ) | (18,000,000 | ) | ||||||||
Net increase in shares outstanding | 4,800,000 | 200,000 | 8,400,000 | 5,400,000 | ||||||||||||
See notes to financial statements.
52 | 2010 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Statements of Changes in Net Assets (Continued)
iSHARES®, INC.
iShares MSCI Italy Index Fund | iShares MSCI Netherlands Investable Market Index Fund | |||||||||||||||
Six months ended February 28, 2010 (Unaudited) | Year ended August 31, 2009 | Six months ended February 28, 2010 (Unaudited) | Year ended August 31, 2009 | |||||||||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||||||||||
OPERATIONS: | ||||||||||||||||
Net investment income | $ | 898,208 | $ | 2,932,100 | $ | 128,874 | $ | 2,396,987 | ||||||||
Net realized gain (loss) | 3,193,336 | (71,721,832 | ) | (1,967,331 | ) | (62,756,045 | ) | |||||||||
Net change in unrealized appreciation (depreciation) | (14,680,642 | ) | 17,636,967 | 4,718,750 | (4,703,274 | ) | ||||||||||
Net increase (decrease) in net assets resulting from operations | (10,589,098 | ) | (51,152,765 | ) | 2,880,293 | (65,062,332 | ) | |||||||||
DISTRIBUTIONS TO SHAREHOLDERS: | ||||||||||||||||
From net investment income | (1,542,082 | ) | (3,732,985 | ) | (495,560 | ) | (4,230,257 | ) | ||||||||
Total distributions to shareholders | (1,542,082 | ) | (3,732,985 | ) | (495,560 | ) | (4,230,257 | ) | ||||||||
CAPITAL SHARE TRANSACTIONS: | ||||||||||||||||
Proceeds from shares sold | 31,857,655 | 100,094,796 | 35,836,582 | 43,167,203 | ||||||||||||
Cost of shares redeemed | (35,741,308 | ) | (163,647,572 | ) | (14,962,642 | ) | (100,176,018 | ) | ||||||||
Net increase (decrease) in net assets from capital share transactions | (3,883,653 | ) | (63,552,776 | ) | 20,873,940 | (57,008,815 | ) | |||||||||
INCREASE (DECREASE) IN NET ASSETS | (16,014,833 | ) | (118,438,526 | ) | 23,258,673 | (126,301,404 | ) | |||||||||
NET ASSETS | ||||||||||||||||
Beginning of period | 125,715,925 | 244,154,451 | 83,351,143 | 209,652,547 | ||||||||||||
End of period | $ | 109,701,092 | $ | 125,715,925 | $ | 106,609,816 | $ | 83,351,143 | ||||||||
Undistributed (distributions in excess of) net investment income included in net assets at end of period | $ | (162,443 | ) | $ | 481,431 | $ | 64,635 | $ | 431,321 | |||||||
SHARES ISSUED AND REDEEMED | ||||||||||||||||
Shares sold | 1,650,000 | 5,850,000 | 1,850,000 | 2,350,000 | ||||||||||||
Shares redeemed | (1,800,000 | ) | (9,000,000 | ) | (750,000 | ) | (6,450,000 | ) | ||||||||
Net increase (decrease) in shares outstanding | (150,000 | ) | (3,150,000 | ) | 1,100,000 | (4,100,000 | ) | |||||||||
See notes to financial statements.
FINANCIAL STATEMENTS | 53 |
Table of Contents
Statements of Changes in Net Assets (Continued)
iSHARES®, INC
iShares MSCI Spain Index Fund | iShares MSCI Sweden Index Fund | |||||||||||||||
Six months ended February 28, 2010 (Unaudited) | Year ended August 31, 2009 | Six months ended February 28, 2010 (Unaudited) | Year ended August 31, 2009 | |||||||||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||||||||||
OPERATIONS: | ||||||||||||||||
Net investment income (loss) | $ | 4,973,793 | $ | 10,459,303 | $ | (467,173 | ) | $ | 3,182,626 | |||||||
Net realized gain (loss) | 2,273,809 | (75,719,084 | ) | 1,646,131 | (52,284,424 | ) | ||||||||||
Net change in unrealized appreciation (depreciation) | (40,606,670 | ) | 22,806,027 | 4,159,435 | 18,464,900 | |||||||||||
Net increase (decrease) in net assets resulting from operations | (33,359,068 | ) | (42,453,754 | ) | 5,338,393 | (30,636,898 | ) | |||||||||
DISTRIBUTIONS TO SHAREHOLDERS: | ||||||||||||||||
From net investment income | (7,332,172 | ) | (13,662,798 | ) | (473,737 | ) | (3,282,327 | ) | ||||||||
Total distributions to shareholders | (7,332,172 | ) | (13,662,798 | ) | (473,737 | ) | (3,282,327 | ) | ||||||||
CAPITAL SHARE TRANSACTIONS: | ||||||||||||||||
Proceeds from shares sold | 39,820,657 | 168,127,511 | 64,246,465 | 119,540,017 | ||||||||||||
Cost of shares redeemed | (43,457,850 | ) | (154,625,074 | ) | (59,103,304 | ) | (122,941,857 | ) | ||||||||
Net increase (decrease) in net assets from capital share transactions | (3,637,193 | ) | 13,502,437 | 5,143,161 | (3,401,840 | ) | ||||||||||
INCREASE (DECREASE) IN NET ASSETS | (44,328,433 | ) | (42,614,115 | ) | 10,007,817 | (37,321,065 | ) | |||||||||
NET ASSETS | ||||||||||||||||
Beginning of period | 278,734,433 | 321,348,548 | 190,332,731 | 227,653,796 | ||||||||||||
End of period | $ | 234,406,000 | $ | 278,734,433 | $ | 200,340,548 | $ | 190,332,731 | ||||||||
Undistributed net investment income (accumulated net investment loss) included in net assets at end of period | $ | 1,157,953 | $ | 3,516,332 | $ | (641,627 | ) | $ | 299,283 | |||||||
SHARES ISSUED AND REDEEMED | ||||||||||||||||
Shares sold | 825,000 | 4,200,000 | 2,625,000 | 6,675,000 | ||||||||||||
Shares redeemed | (900,000 | ) | (4,725,000 | ) | (2,550,000 | ) | (7,650,000 | ) | ||||||||
Net increase (decrease) in shares outstanding | (75,000 | ) | (525,000 | ) | 75,000 | (975,000 | ) | |||||||||
See notes to financial statements.
54 | 2010 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Statements of Changes in Net Assets (Continued)
iSHARES®, INC
iShares MSCI Switzerland Index Fund | iShares MSCI United Kingdom Index Fund | |||||||||||||||
Six months ended February 28, 2010 (Unaudited) | Year ended August 31, 2009 | Six months ended February 28, 2010 (Unaudited) | Year ended August 31, 2009 | |||||||||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||||||||||
OPERATIONS: | ||||||||||||||||
Net investment income (loss) | $ | (729,910 | ) | $ | 3,684,012 | $ | 10,636,036 | $ | 22,176,317 | |||||||
Net realized gain (loss) | 2,557,471 | (66,136,127 | ) | 12,907,459 | (108,752,296 | ) | ||||||||||
Net change in unrealized appreciation (depreciation) | 13,048,075 | (2,696,547 | ) | (3,977,342 | ) | (66,350,023 | ) | |||||||||
Net increase (decrease) in net assets resulting from operations | 14,875,636 | (65,148,662 | ) | 19,566,153 | (152,926,002 | ) | ||||||||||
DISTRIBUTIONS TO SHAREHOLDERS: | ||||||||||||||||
From net investment income | (546,711 | ) | (4,322,291 | ) | (10,720,979 | ) | (25,389,028 | ) | ||||||||
Total distributions to shareholders | (546,711 | ) | (4,322,291 | ) | (10,720,979 | ) | (25,389,028 | ) | ||||||||
CAPITAL SHARE TRANSACTIONS: | ||||||||||||||||
Proceeds from shares sold | 52,466,711 | 105,041,546 | 219,193,251 | 148,897,281 | ||||||||||||
Cost of shares redeemed | (19,026,290 | ) | (130,240,566 | ) | (72,991,395 | ) | (113,959,957 | ) | ||||||||
Net increase (decrease) in net assets from capital share transactions | 33,440,421 | (25,199,020 | ) | 146,201,856 | 34,937,324 | |||||||||||
INCREASE (DECREASE) IN NET ASSETS | 47,769,346 | (94,669,973 | ) | 155,047,030 | (143,377,706 | ) | ||||||||||
NET ASSETS | ||||||||||||||||
Beginning of period | 271,854,940 | 366,524,913 | 739,124,361 | 882,502,067 | ||||||||||||
End of period | $ | 319,624,286 | $ | 271,854,940 | $ | 894,171,391 | $ | 739,124,361 | ||||||||
Undistributed net investment income (accumulated net investment loss) included in net assets at end of period | $ | (902,848 | ) | $ | 373,773 | $ | 4,642,667 | $ | 4,727,610 | |||||||
SHARES ISSUED AND REDEEMED | ||||||||||||||||
Shares sold | 2,375,000 | 5,125,000 | 14,000,000 | 12,400,000 | ||||||||||||
Shares redeemed | (875,000 | ) | (7,875,000 | ) | (4,600,000 | ) | (8,800,000 | ) | ||||||||
Net increase (decrease) in shares outstanding | 1,500,000 | (2,750,000 | ) | 9,400,000 | 3,600,000 | |||||||||||
See notes to financial statements.
FINANCIAL STATEMENTS | 55 |
Table of Contents
iSHARES®, INC.
(For a share outstanding throughout each period)
iShares MSCI Austria Investable Market Index Fund | ||||||||||||||||||||||||
Six months Feb. 28, 2010 | Year ended Aug. 31, 2009 | Year ended Aug. 31, 2008 | Year ended Aug. 31, 2007 | Year ended Aug. 31, 2006 | Year ended Aug. 31, 2005 | |||||||||||||||||||
Net asset value, beginning of period | $ | 20.21 | $ | 29.78 | $ | 37.28 | $ | 31.08 | $ | 26.62 | $ | 17.04 | ||||||||||||
Income from investment operations: | ||||||||||||||||||||||||
Net investment incomea | 0.12 | 0.51 | 0.56 | 0.51 | 0.44 | 0.29 | ||||||||||||||||||
Net realized and unrealized gain (loss) | (1.31 | ) | (9.36 | ) | (6.98 | ) | 6.42 | 4.31 | 9.38 | |||||||||||||||
Total from investment operations | (1.19 | ) | (8.85 | ) | (6.42 | ) | 6.93 | 4.75 | 9.67 | |||||||||||||||
Less distributions from: | ||||||||||||||||||||||||
Net investment income | (0.59 | ) | (0.72 | ) | (1.08 | ) | (0.73 | ) | (0.29 | ) | (0.09 | ) | ||||||||||||
Total distributions | (0.59 | ) | (0.72 | ) | (1.08 | ) | (0.73 | ) | (0.29 | ) | (0.09 | ) | ||||||||||||
Net asset value, end of period | $ | 18.43 | $ | 20.21 | $ | 29.78 | $ | 37.28 | $ | 31.08 | $ | 26.62 | ||||||||||||
Total return | (6.04 | )%b | (28.52 | )% | (17.64 | )% | 22.35 | % | 18.00 | % | 56.82 | % | ||||||||||||
Ratios/Supplemental data: | ||||||||||||||||||||||||
Net assets, end of period (000s) | $ | 132,701 | $ | 159,666 | $ | 193,602 | $ | 473,514 | $ | 391,637 | $ | 196,952 | ||||||||||||
Ratio of expenses to average net assetsc | 0.54 | % | 0.55 | % | 0.52 | % | 0.51 | % | 0.54 | % | 0.57 | % | ||||||||||||
Ratio of net investment income to average net assetsc | 1.17 | % | 3.25 | % | 1.57 | % | 1.36 | % | 1.48 | % | 1.26 | % | ||||||||||||
Portfolio turnover ratesd | 5 | % | 26 | % | 26 | % | 21 | % | 32 | % | 21 | % |
a | Based on average shares outstanding throughout each period. |
b | Not annualized. |
c | Annualized for periods of less than one year. |
d | Portfolio turnover rates exclude portfolio securities received or delivered as a result of processing capital share transactions in Creation Units. |
See notes to financial statements.
56 | 2010 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
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, 2010 (Unaudited) | Year ended Aug. 31, 2009 | Year ended Aug. 31, 2008 | Year ended Aug. 31, 2007 | Year ended Aug. 31, 2006 | Year ended Aug. 31, 2005 | |||||||||||||||||||
Net asset value, beginning of period | $ | 12.06 | $ | 17.64 | $ | 25.89 | $ | 22.83 | $ | 18.94 | $ | 14.77 | ||||||||||||
Income from investment operations: | ||||||||||||||||||||||||
Net investment income (loss)a | (0.00 | )b | 0.22 | 0.78 | 0.76 | 0.75 | 0.71 | |||||||||||||||||
Net realized and unrealized gain (loss) | 0.52 | (5.46 | ) | (7.27 | ) | 2.74 | 3.95 | 3.75 | ||||||||||||||||
Total from investment operations | 0.52 | (5.24 | ) | (6.49 | ) | 3.50 | 4.70 | 4.46 | ||||||||||||||||
Less distributions from: | ||||||||||||||||||||||||
Net investment income | (0.04 | ) | (0.34 | ) | (1.76 | ) | (0.44 | ) | (0.81 | ) | (0.29 | ) | ||||||||||||
Total distributions | (0.04 | ) | (0.34 | ) | (1.76 | ) | (0.44 | ) | (0.81 | ) | (0.29 | ) | ||||||||||||
Net asset value, end of period | $ | 12.54 | $ | 12.06 | $ | 17.64 | $ | 25.89 | $ | 22.83 | $ | 18.94 | ||||||||||||
Total return | 4.43 | %c | (29.15 | )% | (26.21 | )% | 15.36 | % | 25.66 | % | 30.22 | % | ||||||||||||
Ratios/Supplemental data: | ||||||||||||||||||||||||
Net assets, end of period (000s) | $ | 111,836 | $ | 53,042 | $ | 119,955 | $ | 303,483 | $ | 152,484 | $ | 46,960 | ||||||||||||
Ratio of expenses to average net assetsd | 0.54 | % | 0.56 | % | 0.52 | % | 0.51 | % | 0.54 | % | 0.57 | % | ||||||||||||
Ratio of net investment income (loss) to average net assetsd | (0.06 | )% | 2.23 | % | 3.32 | % | 2.90 | % | 3.60 | % | 3.89 | % | ||||||||||||
Portfolio turnover ratee | 6 | % | 33 | % | 31 | % | 12 | % | 10 | % | 10 | % |
a | Based on average shares outstanding throughout each period. |
b | Rounds to less than $0.01. |
c | Not annualized. |
d | Annualized for periods of less than one year. |
e | 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 period)
iShares MSCI Emerging Markets Eastern Europe Index Fund | ||||
Period from Sep. 30, 2009a to Feb. 28, 2010 (Unaudited) | ||||
Net asset value, beginning of period | $ | 24.65 | ||
Income from investment operations: | ||||
Net investment lossb | (0.07 | ) | ||
Net realized and unrealized gain | 1.42 | |||
Total from investment operations | 1.35 | |||
Net asset value, end of period | $ | 26.00 | ||
Total return | 5.48 | %c | ||
Ratios/Supplemental data: | ||||
Net assets, end of period (000s) | $ | 11,699 | ||
Ratio of expenses to average net assetsd | 0.69 | % | ||
Ratio of net investment loss to average net assetsd | (0.64 | )% | ||
Portfolio turnover ratee | 2 | % |
a | Commencement of operations. |
b | Based on average shares outstanding throughout the period. |
c | Not annualized. |
d | Annualized for periods of less than one year. |
e | Portfolio turnover rate excludes portfolio securities received or delivered as a result of processing captial share transactions in Creation Units. |
See notes to financial statements.
58 | 2010 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, 2010 (Unaudited) | Year ended Aug. 31, 2009 | Year ended Aug. 31, 2008a | Year ended Aug. 31, 2007a | Year ended Aug. 31, 2006a | Year ended Aug. 31, 2005a | |||||||||||||||||||
Net asset value, beginning of period | $ | 35.64 | $ | 45.97 | $ | 57.15 | $ | 46.14 | $ | 37.49 | $ | 29.69 | ||||||||||||
Income from investment operations: | ||||||||||||||||||||||||
Net investment incomeb | 0.15 | 0.93 | 1.71 | 1.40 | 1.37 | 0.88 | ||||||||||||||||||
Net realized and unrealized gain (loss) | (1.84 | ) | (9.97 | ) | (9.59 | ) | 10.54 | 7.94 | 7.57 | |||||||||||||||
Total from investment operations | (1.69 | ) | (9.04 | ) | (7.88 | ) | 11.94 | 9.31 | 8.45 | |||||||||||||||
Less distributions from: | ||||||||||||||||||||||||
Net investment income | (0.30 | ) | (1.29 | ) | (3.30 | ) | (0.93 | ) | (0.66 | ) | (0.65 | ) | ||||||||||||
Total distributions | (0.30 | ) | (1.29 | ) | (3.30 | ) | (0.93 | ) | (0.66 | ) | (0.65 | ) | ||||||||||||
Net asset value, end of period | $ | 33.65 | $ | 35.64 | $ | 45.97 | $ | 57.15 | $ | 46.14 | $ | 37.49 | ||||||||||||
Total return | (4.83 | )%c | (19.05 | )% | (14.52 | )% | 26.10 | % | 25.18 | % | 28.54 | % | ||||||||||||
Ratios/Supplemental data: | ||||||||||||||||||||||||
Net assets, end of period (000s) | $ | 820,946 | $ | 741,270 | $ | 1,291,808 | $ | 2,971,565 | $ | 1,794,921 | $ | 547,284 | ||||||||||||
Ratio of expenses to average net assetsd | 0.54 | % | 0.56 | % | 0.52 | % | 0.51 | % | 0.54 | % | 0.58 | % | ||||||||||||
Ratio of expenses to average net assets exclusive of foreign taxes | n/a | 0.56 | % | n/a | n/a | n/a | 0.57 | % | ||||||||||||||||
Ratio of net investment income to average net assetsd | 0.79 | % | 3.07 | % | 3.06 | % | 2.60 | % | 3.23 | % | 2.50 | % | ||||||||||||
Portfolio turnover ratee | 2 | % | 8 | % | 27 | % | 5 | % | 8 | % | 8 | % |
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 | 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 France Index Fund | ||||||||||||||||||||||||
Six months ended Feb. 28, 2010 (Unaudited) | Year ended Aug. 31, 2009 | Year ended Aug. 31, 2008 | Year ended Aug. 31, 2007 | Year ended Aug. 31, 2006 | Year ended Aug. 31, 2005 | |||||||||||||||||||
Net asset value, beginning of period | $ | 24.28 | $ | 30.70 | $ | 36.53 | $ | 31.16 | $ | 25.41 | $ | 20.40 | ||||||||||||
Income from investment operations: | ||||||||||||||||||||||||
Net investment incomea | 0.06 | 0.66 | 0.93 | 0.77 | 0.55 | 0.47 | ||||||||||||||||||
Net realized and unrealized gain (loss) | (0.59 | ) | (6.13 | ) | (5.17 | ) | 5.06 | 5.52 | 4.84 | |||||||||||||||
Total from investment operations | (0.53 | ) | (5.47 | ) | (4.24 | ) | 5.83 | 6.07 | 5.31 | |||||||||||||||
Less distributions from: | ||||||||||||||||||||||||
Net investment income | (0.12 | ) | (0.95 | ) | (1.59 | ) | (0.46 | ) | (0.32 | ) | (0.30 | ) | ||||||||||||
Total distributions | (0.12 | ) | (0.95 | ) | (1.59 | ) | (0.46 | ) | (0.32 | ) | (0.30 | ) | ||||||||||||
Net asset value, end of period | $ | 23.63 | $ | 24.28 | $ | 30.70 | $ | 36.53 | $ | 31.16 | $ | 25.41 | ||||||||||||
Total return | (2.22 | )%b | (17.11 | )% | (11.96 | )% | 18.83 | % | 24.13 | % | 26.13 | % | ||||||||||||
Ratios/Supplemental data: | ||||||||||||||||||||||||
Net assets, end of period (000s) | $ | 293,010 | $ | 184,511 | $ | 227,203 | $ | 445,696 | $ | 211,886 | $ | 81,326 | ||||||||||||
Ratio of expenses to average net assetsc | 0.54 | % | 0.55 | % | 0.52 | % | 0.51 | % | 0.54 | % | 0.57 | % | ||||||||||||
Ratio of net investment income to average net assetsc | 0.51 | % | 3.18 | % | 2.60 | % | 2.17 | % | 1.95 | % | 1.98 | % | ||||||||||||
Portfolio turnover rated | 3 | % | 6 | % | 10 | % | 6 | % | 10 | % | 7 | % |
a | Based on average shares outstanding throughout each period. |
b | Not annualized. |
c | Annualized for periods of less than one year. |
d | Portfolio turnover rates exclude portfolio securities received or delivered as a result of processing capital share transactions in Creation Units. |
See notes to financial statements.
60 | 2010 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Financial Highlights (Continued)
iSHARES®, INC.
(For a share outstanding throughout each period)
iShares MSCI Germany Index Fund | ||||||||||||||||||||||||
Six months ended Feb. 28, 2010 (Unaudited) | Year ended Aug. 31, 2009 | Year ended Aug. 31, 2008 | Year ended Aug. 31, 2007 | Year ended Aug. 31, 2006 | Year ended Aug. 31, 2005 | |||||||||||||||||||
Net asset value, beginning of period | $ | 20.86 | $ | 27.55 | $ | 32.18 | $ | 23.68 | $ | 19.08 | $ | 14.96 | ||||||||||||
Income from investment operations: | ||||||||||||||||||||||||
Net investment income (loss)a | (0.00 | )b | 0.58 | 0.88 | 0.68 | 0.57 | 0.28 | |||||||||||||||||
Net realized and unrealized gain (loss) | (0.73 | ) | (6.65 | ) | (3.84 | ) | 8.33 | 4.15 | 4.03 | |||||||||||||||
Total from investment operations | (0.73 | ) | (6.07 | ) | (2.96 | ) | 9.01 | 4.72 | 4.31 | |||||||||||||||
Less distributions from: | ||||||||||||||||||||||||
Net investment income | (0.01 | ) | (0.62 | ) | (1.67 | ) | (0.51 | ) | (0.12 | ) | (0.19 | ) | ||||||||||||
Total distributions | (0.01 | ) | (0.62 | ) | (1.67 | ) | (0.51 | ) | (0.12 | ) | (0.19 | ) | ||||||||||||
Net asset value, end of period | $ | 20.12 | $ | 20.86 | $ | 27.55 | $ | 32.18 | $ | 23.68 | $ | 19.08 | ||||||||||||
Total return | (3.49 | )%c | (21.62 | )% | (9.81 | )% | 38.47 | % | 24.82 | % | 28.89 | % | ||||||||||||
Ratios/Supplemental data: | ||||||||||||||||||||||||
Net assets, end of period (000s) | $ | 766,550 | $ | 619,638 | $ | 669,452 | $ | 1,641,245 | $ | 802,795 | $ | 314,793 | ||||||||||||
Ratio of expenses to average net assetsd | 0.54 | % | 0.55 | % | 0.52 | % | 0.51 | % | 0.54 | % | 0.57 | % | ||||||||||||
Ratio of net investment income (loss) to average net assetsd | (0.03 | )% | 3.18 | % | 2.72 | % | 2.32 | % | 2.62 | % | 1.54 | % | ||||||||||||
Portfolio turnover ratee | 2 | % | 15 | % | 11 | % | 4 | % | 12 | % | 9 | % |
a | Based on average shares outstanding throughout each period. |
b | Rounds to less than $0.01. |
c | Not annualized. |
d | Annualized for periods of less than one year. |
e | 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 Italy Index Fund | ||||||||||||||||||||||||
Six months ended Feb. 28, 2010 (Unaudited) | Year ended Aug. 31, 2009 | Year ended Aug. 31, 2008 | Year ended Aug. 31, 2007 | Year ended Aug. 31, 2006 | Year ended Aug. 31, 2005 | |||||||||||||||||||
Net asset value, beginning of period | $ | 19.05 | $ | 25.04 | $ | 33.82 | $ | 30.48 | $ | 25.77 | $ | 20.21 | ||||||||||||
Income from investment operations: | ||||||||||||||||||||||||
Net investment incomea | 0.12 | 0.47 | 1.53 | 1.35 | 1.07 | 0.78 | ||||||||||||||||||
Net realized and unrealized gain (loss) | (1.94 | ) | (5.82 | ) | (7.71 | ) | 2.66 | 4.15 | 5.42 | |||||||||||||||
Total from investment operations | (1.82 | ) | (5.35 | ) | (6.18 | ) | 4.01 | 5.22 | 6.20 | |||||||||||||||
Less distributions from: | ||||||||||||||||||||||||
Net investment income | (0.22 | ) | (0.64 | ) | (2.60 | ) | (0.67 | ) | (0.51 | ) | (0.64 | ) | ||||||||||||
Total distributions | (0.22 | ) | (0.64 | ) | (2.60 | ) | (0.67 | ) | (0.51 | ) | (0.64 | ) | ||||||||||||
Net asset value, end of period | $ | 17.01 | $ | 19.05 | $ | 25.04 | $ | 33.82 | $ | 30.48 | $ | 25.77 | ||||||||||||
Total return | (9.70 | )%b | (20.78 | )% | (19.43 | )% | 13.20 | % | 20.61 | % | 30.74 | % | ||||||||||||
Ratios/Supplemental data: | ||||||||||||||||||||||||
Net assets, end of period (000s) | $ | 109,701 | $ | 125,716 | $ | 244,154 | $ | 172,495 | $ | 146,324 | $ | 42,526 | ||||||||||||
Ratio of expenses to average net assetsc | 0.54 | % | 0.59 | % | 0.52 | % | 0.52 | % | 0.54 | % | 0.57 | % | ||||||||||||
Ratio of expenses to average net assets exclusive of foreign taxes | n/a | 0.55 | % | n/a | n/a | n/a | n/a | |||||||||||||||||
Ratio of net investment income to average net assetsc | 1.28 | % | 2.85 | % | 5.06 | % | 4.02 | % | 3.87 | % | 3.18 | % | ||||||||||||
Portfolio turnover rated | 4 | % | 18 | % | 29 | % | 16 | % | 15 | % | 18 | % |
a | Based on average shares outstanding throughout each period. |
b | Not annualized. |
c | Annualized for periods of less than one year. |
d | Portfolio turnover rates exclude portfolio securities received or delivered as a result of processing capital share transactions in Creation Units. |
See notes to financial statements.
62 | 2010 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, 2010 (Unaudited) | Year ended Aug. 31, 2009 | Year ended Aug. 31, 2008 | Year ended Aug. 31, 2007 | Year ended Aug. 31, 2006 | Year ended Aug. 31, 2005 | |||||||||||||||||||
Net asset value, beginning of period | $ | 18.52 | $ | 24.38 | $ | 29.75 | $ | 24.17 | $ | 19.10 | $ | 15.70 | ||||||||||||
Income from investment operations: | ||||||||||||||||||||||||
Net investment incomea | 0.03 | 0.35 | 1.10 | 0.98 | 0.60 | 0.57 | ||||||||||||||||||
Net realized and unrealized gain (loss) | 0.61 | (5.55 | ) | (4.68 | ) | 5.05 | 4.95 | 3.09 | ||||||||||||||||
Total from investment operations | 0.64 | (5.20 | ) | (3.58 | ) | 6.03 | 5.55 | 3.66 | ||||||||||||||||
Less distributions from: | ||||||||||||||||||||||||
Net investment income | (0.12 | ) | (0.66 | ) | (1.79 | ) | (0.45 | ) | (0.48 | ) | (0.26 | ) | ||||||||||||
Total distributions | (0.12 | ) | (0.66 | ) | (1.79 | ) | (0.45 | ) | (0.48 | ) | (0.26 | ) | ||||||||||||
Net asset value, end of period | $ | 19.04 | $ | 18.52 | $ | 24.38 | $ | 29.75 | $ | 24.17 | $ | 19.10 | ||||||||||||
Total return | 3.39 | %b | (20.59 | )% | (12.67 | )% | 25.22 | % | 29.53 | % | 23.40 | % | ||||||||||||
Ratios/Supplemental data: | ||||||||||||||||||||||||
Net assets, end of period (000s) | $ | 106,610 | $ | 83,351 | $ | 209,653 | $ | 251,354 | $ | 109,991 | $ | 63,974 | ||||||||||||
Ratio of expenses to average net assetsc | 0.54 | % | 0.55 | % | 0.52 | % | 0.51 | % | 0.54 | % | 0.57 | % | ||||||||||||
Ratio of net investment income to average net assetsc | 0.28 | % | 2.24 | % | 3.86 | % | 3.50 | % | 2.78 | % | 3.13 | % | ||||||||||||
Portfolio turnover rated | 6 | % | 15 | % | 26 | % | 8 | % | 17 | % | 6 | % |
a | Based on average shares outstanding throughout each period. |
b | Not annualized. |
c | Annualized for periods of less than one year. |
d | Portfolio turnover rates exclude portfolio securities received or delivered as a result of processing capital share transactions in Creation Units. |
See notes to financial statements.
FINANCIAL HIGHLIGHTS | 63 |
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, 2010 (Unaudited) | Year ended Aug. 31, 2009 | Year ended Aug. 31, 2008 | Year ended Aug. 31, 2007 | Year ended Aug. 31, 2006 | Year ended Aug. 31, 2005 | |||||||||||||||||||
Net asset value, beginning of period | $ | 47.65 | $ | 50.41 | $ | 58.06 | $ | 44.81 | $ | 35.70 | $ | 27.55 | ||||||||||||
Income from investment operations: | ||||||||||||||||||||||||
Net investment incomea | 0.81 | 1.75 | 1.98 | 1.30 | 1.07 | 0.79 | ||||||||||||||||||
Net realized and unrealized gain (loss) | (6.65 | ) | (2.14 | ) | (7.33 | ) | 12.33 | 8.78 | 7.97 | |||||||||||||||
Total from investment operations | (5.84 | ) | (0.39 | ) | (5.35 | ) | 13.63 | 9.85 | 8.76 | |||||||||||||||
Less distributions from: | ||||||||||||||||||||||||
Net investment income | (1.22 | ) | (2.37 | ) | (2.30 | ) | (0.38 | ) | (0.74 | ) | (0.61 | ) | ||||||||||||
Total distributions | (1.22 | ) | (2.37 | ) | (2.30 | ) | (0.38 | ) | (0.74 | ) | (0.61 | ) | ||||||||||||
Net asset value, end of period | $ | 40.59 | $ | 47.65 | $ | 50.41 | $ | 58.06 | $ | 44.81 | $ | 35.70 | ||||||||||||
Total return | (12.62 | )%b | 0.64 | % | (9.76 | )% | 30.47 | % | 28.09 | % | 31.85 | % | ||||||||||||
Ratios/Supplemental data: | ||||||||||||||||||||||||
Net assets, end of period (000s) | $ | 234,406 | $ | 278,734 | $ | 321,349 | $ | 522,556 | $ | 178,130 | $ | 66,945 | ||||||||||||
Ratio of expenses to average net assetsc | 0.54 | % | 0.56 | % | 0.52 | % | 0.51 | % | 0.54 | % | 0.57 | % | ||||||||||||
Ratio of net investment income to average net assetsc | 3.37 | % | 4.70 | % | 3.28 | % | 2.36 | % | 2.67 | % | 2.33 | % | ||||||||||||
Portfolio turnover rated | 5 | % | 19 | % | 22 | % | 12 | % | 6 | % | 8 | % |
a | Based on average shares outstanding throughout each period. |
b | Not annualized. |
c | Annualized for periods of less than one year. |
d | Portfolio turnover rates exclude portfolio securities received or delivered as a result of processing capital share transactions in Creation Units. |
See notes to financial statements.
64 | 2010 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, 2010 (Unaudited) | Year ended Aug. 31, 2009 | Year ended Aug. 31, 2008 | Year ended Aug. 31, 2007 | Year ended Aug. 31, 2006 | Year ended Aug. 31, 2005 | |||||||||||||||||||
Net asset value, beginning of period | $ | 22.86 | $ | 24.48 | $ | 34.57 | $ | 25.88 | $ | 21.58 | $ | 16.82 | ||||||||||||
Income from investment operations: | ||||||||||||||||||||||||
Net investment income (loss)a | (0.05 | ) | 0.40 | 0.91 | 1.15 | 0.76 | 0.46 | |||||||||||||||||
Net realized and unrealized gain (loss) | 1.10 | (1.56 | ) | (8.63 | ) | 7.88 | 3.96 | 4.45 | ||||||||||||||||
Total from investment operations | 1.05 | (1.16 | ) | (7.72 | ) | 9.03 | 4.72 | 4.91 | ||||||||||||||||
Less distributions from: | ||||||||||||||||||||||||
Net investment income | (0.06 | ) | (0.46 | ) | (2.37 | ) | (0.34 | ) | (0.42 | ) | (0.15 | ) | ||||||||||||
Total distributions | (0.06 | ) | (0.46 | ) | (2.37 | ) | (0.34 | ) | (0.42 | ) | (0.15 | ) | ||||||||||||
Net asset value, end of period | $ | 23.85 | $ | 22.86 | $ | 24.48 | $ | 34.57 | $ | 25.88 | $ | 21.58 | ||||||||||||
Total return | 4.59 | %b | (4.04 | )% | (23.16 | )% | 35.01 | % | 22.16 | % | 29.21 | % | ||||||||||||
Ratios/Supplemental data: | ||||||||||||||||||||||||
Net assets, end of period (000s) | $ | 200,341 | $ | 190,333 | $ | 227,654 | $ | 573,026 | $ | 151,427 | $ | 61,513 | ||||||||||||
Ratio of expenses to average net assetsc | 0.54 | % | 0.55 | % | 0.51 | % | 0.51 | % | 0.54 | % | 0.58 | % | ||||||||||||
Ratio of expenses to average net assets exclusive of foreign taxes | n/a | n/a | n/a | n/a | n/a | 0.57 | % | |||||||||||||||||
Ratio of net investment income (loss) to average net assetsc | (0.46 | )% | 2.34 | % | 2.91 | % | 3.42 | % | 3.13 | % | 2.28 | % | ||||||||||||
Portfolio turnover rated | 4 | % | 9 | % | 17 | % | 7 | % | 14 | % | 6 | % |
a | Based on average shares outstanding throughout each period. |
b | Not annualized. |
c | Annualized for periods of less than one year. |
d | Portfolio turnover rates exclude portfolio securities received or delivered as a result of processing capital share transactions in Creation Units. |
See notes to financial statements.
FINANCIAL HIGHLIGHTS | 65 |
Table of Contents
Financial Highlights (Continued)
iSHARES®, INC.
(For a share outstanding throughout each period)
iShares MSCI Switzerland Index Fund | ||||||||||||||||||||||||
Six months ended Feb. 28, 2010 (Unaudited) | Year ended Aug. 31, 2009 | Year ended Aug. 31, 2008 | Year ended Aug. 31, 2007 | Year ended Aug. 31, 2006 | Year ended Aug. 31, 2005 | |||||||||||||||||||
Net asset value, beginning of period | $ | 20.71 | $ | 23.09 | $ | 25.78 | $ | 22.49 | $ | 17.63 | $ | 14.58 | ||||||||||||
Income from investment operations: | ||||||||||||||||||||||||
Net investment income (loss)a | (0.05 | ) | 0.25 | 0.49 | 0.36 | 0.27 | 0.22 | |||||||||||||||||
Net realized and unrealized gain (loss) | 1.23 | (2.30 | ) | (2.51 | ) | 3.12 | 4.71 | 2.92 | ||||||||||||||||
Total from investment operations | 1.18 | (2.05 | ) | (2.02 | ) | 3.48 | 4.98 | 3.14 | ||||||||||||||||
Less distributions from: | ||||||||||||||||||||||||
Net investment income | (0.04 | ) | (0.33 | ) | (0.67 | ) | (0.19 | ) | (0.12 | ) | (0.09 | ) | ||||||||||||
Total distributions | (0.04 | ) | (0.33 | ) | (0.67 | ) | (0.19 | ) | (0.12 | ) | (0.09 | ) | ||||||||||||
Net asset value, end of period | $ | 21.85 | $ | 20.71 | $ | 23.09 | $ | 25.78 | $ | 22.49 | $ | 17.63 | ||||||||||||
Total return | 5.70 | %b | (8.63 | )% | (7.97 | )% | 15.53 | % | 28.36 | % | 21.54 | % | ||||||||||||
Ratios/Supplemental data: | ||||||||||||||||||||||||
Net assets, end of period (000s) | $ | 319,624 | $ | 271,855 | $ | 366,525 | $ | 318,998 | $ | 188,319 | $ | 79,324 | ||||||||||||
Ratio of expenses to average net assetsc | 0.54 | % | 0.56 | % | 0.52 | % | 0.51 | % | 0.54 | % | 0.57 | % | ||||||||||||
Ratio of net investment income (loss) to average net assetsc | (0.50 | )% | 1.42 | % | 1.93 | % | 1.42 | % | 1.34 | % | 1.34 | % | ||||||||||||
Portfolio turnover rated | 3 | % | 16 | % | 11 | % | 5 | % | 11 | % | 5 | % |
a | Based on average shares outstanding throughout each period. |
b | Not annualized. |
c | Annualized for periods of less than one year. |
d | Portfolio turnover rates exclude portfolio securities received or delivered as a result of processing capital share transactions in Creation Units. |
See notes to financial statements.
66 | 2010 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Financial Highlights (Continued)
iSHARES®, INC.
(For a share outstanding throughout each period)
iShares MSCI United Kingdom Index Fund | ||||||||||||||||||||||||
Six months ended Feb. 28, 2010 (Unaudited) | Year ended Aug. 31, 2009 | Year ended Aug. 31, 2008 | Year ended Aug. 31, 2007 | Year ended Aug. 31, 2006 | Year ended Aug. 31, 2005 | |||||||||||||||||||
Net asset value, beginning of period | $ | 15.02 | $ | 19.35 | $ | 24.73 | $ | 21.92 | $ | 18.74 | $ | 15.72 | ||||||||||||
Income from investment operations: | ||||||||||||||||||||||||
Net investment incomea | 0.19 | 0.50 | 0.83 | 0.84 | 0.97 | 0.60 | ||||||||||||||||||
Net realized and unrealized gain (loss) | 0.24 | (4.26 | ) | (4.89 | ) | 2.78 | 2.79 | 2.76 | ||||||||||||||||
Total from investment operations | 0.43 | (3.76 | ) | (4.06 | ) | 3.62 | 3.76 | 3.36 | ||||||||||||||||
Less distributions from: | ||||||||||||||||||||||||
Net investment income | (0.19 | ) | (0.57 | ) | (1.32 | ) | (0.81 | ) | (0.58 | ) | (0.34 | ) | ||||||||||||
Total distributions | (0.19 | ) | (0.57 | ) | (1.32 | ) | (0.81 | ) | (0.58 | ) | (0.34 | ) | ||||||||||||
Net asset value, end of period | $ | 15.26 | $ | 15.02 | $ | 19.35 | $ | 24.73 | $ | 21.92 | $ | 18.74 | ||||||||||||
Total return | 2.79 | %b | (18.68 | )% | (17.16 | )% | 16.77 | % | 20.61 | % | 21.53 | % | ||||||||||||
Ratios/Supplemental data: | ||||||||||||||||||||||||
Net assets, end of period (000s) | $ | 894,171 | $ | 739,124 | $ | 882,502 | $ | 1,127,738 | $ | 872,409 | $ | 464,850 | ||||||||||||
Ratio of expenses to average net assetsc | 0.54 | % | 0.55 | % | 0.52 | % | 0.51 | % | 0.54 | % | 0.57 | % | ||||||||||||
Ratio of net investment income to average net assetsc | 2.43 | % | 3.90 | % | 3.64 | % | 3.51 | % | 4.81 | % | 3.39 | % | ||||||||||||
Portfolio turnover rated | 3 | % | 11 | % | 14 | % | 8 | % | 10 | % | 11 | % |
a | Based on average shares outstanding throughout each period. |
b | Not annualized. |
c | Annualized for periods of less than one year. |
d | Portfolio turnover rates exclude portfolio securities received or delivered as a result of processing capital share transactions in Creation Units. |
See notes to financial statements.
FINANCIAL HIGHLIGHTS | 67 |
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 Emerging Markets Eastern Europe, 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 iShares MSCI Emerging Markets Eastern Europe Index Fund commenced operations on September 30, 2009.
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. 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 non-U.S. issuers that may trade in non-U.S. markets. This 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 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”) using 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 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 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”); |
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Notes to Financial Statements (Unaudited) (Continued)
iSHARES®, INC.
• | 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”). |
The availability of observable inputs can vary from security to security and is affected by a wide variety of factors, including, for example, the type of security, whether the security is new and not yet established in the marketplace, the liquidity of markets, and other characteristics particular to the security. Inputs may include price information, volatility statistics, specific and broad credit data, liquidity statistics, and other factors. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3 of the fair value hierarchy.
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. 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. 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 inputs such as quoted market prices, dealer quotations or valuations provided by alternative pricing sources supported by observable inputs are classified within Level 2. These generally include 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 Level 2 investments 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.
NOTESTO FINANCIAL STATEMENTS | 69 |
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Notes to Financial Statements (Unaudited) (Continued)
iSHARES®, INC.
The inputs used by the Funds in estimating the value of Level 3 Prices may include the original transaction price, recent transactions in the same or similar investments, 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 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.
As of February 28, 2010, the values of each Fund’s investments were classified as Level 1 Prices. The breakdown of each Fund’s investments into major categories is disclosed in its respective Schedule of Investments.
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. Non-cash dividends received in the form of stock in an elective dividend, if any, are recorded as dividend income at fair value. Distributions received by the Funds may include a return of capital that is estimated by management. Such amounts are recorded as a reduction of the cost of investments or reclassified to capital gains. 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. 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, 2010, if any, are reflected in the Funds’ Statements of Assets and Liabilities.
DISTRIBUTIONS TO SHAREHOLDERS
Distributions to shareholders from net investment income, if any, 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.
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Notes to Financial Statements (Unaudited) (Continued)
iSHARES®, INC.
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, 2010.
The Funds had tax basis net capital loss carryforwards as of August 31, 2009, 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 | Expiring 2017 | Total | ||||||||||||||||||
Austria Investable | |||||||||||||||||||||||||||
Market | $ | 1,291,324 | $ | 370,948 | $ | 855,364 | $ | – | $ | – | $ | 9,795,917 | $ | 2,587,916 | $ | 7,102,366 | $ | 22,003,835 | |||||||||
Belgium Investable | |||||||||||||||||||||||||||
Market | 1,677,678 | 117,767 | 175,781 | 33,969 | – | – | 1,698,444 | 5,953,120 | 9,656,759 | ||||||||||||||||||
EMU | – | – | 659,648 | 1,873,963 | – | – | – | 26,644,200 | 29,177,811 | ||||||||||||||||||
France | 2,436,748 | 236,944 | 2,400,550 | – | – | 158,472 | 335,795 | 3,408,374 | 8,976,883 | ||||||||||||||||||
Germany | 8,697,227 | 5,469,732 | 8,656,712 | 2,241,687 | – | 4,227,713 | 3,394,735 | 27,790,050 | 60,477,856 | ||||||||||||||||||
Italy | 2,648,775 | 848,408 | 541,980 | 527,327 | – | – | 472,268 | 2,743,650 | 7,782,408 | ||||||||||||||||||
Netherlands | |||||||||||||||||||||||||||
Investable Market | 3,222,792 | 1,497,810 | 2,481,175 | 129,137 | 403,525 | 260,715 | 1,195,162 | 5,819,153 | 15,009,469 | ||||||||||||||||||
Spain | – | – | 995,671 | – | – | – | – | 5,946,927 | 6,942,598 | ||||||||||||||||||
Sweden | 713,472 | 1,577,551 | 1,149,514 | – | 107,613 | – | 100,015 | 13,686,746 | 17,334,911 | ||||||||||||||||||
Switzerland | 1,970,979 | 1,018,305 | 2,149,171 | 354,252 | – | – | – | 2,837,786 | 8,330,493 | ||||||||||||||||||
United Kingdom | 856,798 | 6,448,554 | 4,272,059 | 1,517,783 | 7,063,063 | – | 261,754 | 16,140,312 | 36,560,323 |
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.
NOTESTO FINANCIAL STATEMENTS | 71 |
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Notes to Financial Statements (Unaudited) (Continued)
iSHARES®, INC.
As of February 28, 2010, 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 | $ | 232,447,235 | $ | – | $ | (79,146,242 | ) | $ | (79,146,242 | ) | ||||
Belgium Investable Market | 153,799,609 | 3,404,867 | (46,183,250 | ) | (42,778,383 | ) | ||||||||
Emerging Markets Eastern Europe | 11,764,009 | 374,659 | (441,195 | ) | (66,536 | ) | ||||||||
EMU | 1,223,606,325 | – | (392,280,799 | ) | (392,280,799 | ) | ||||||||
France | 408,819,035 | – | (108,412,935 | ) | (108,412,935 | ) | ||||||||
Germany | 1,034,175,553 | – | (261,495,230 | ) | (261,495,230 | ) | ||||||||
Italy | 178,460,877 | – | (66,393,796 | ) | (66,393,796 | ) | ||||||||
Netherlands Investable Market | 146,694,518 | – | (39,696,362 | ) | (39,696,362 | ) | ||||||||
Spain | 375,543,380 | – | (125,111,570 | ) | (125,111,570 | ) | ||||||||
Sweden | 260,397,705 | – | (58,111,251 | ) | (58,111,251 | ) | ||||||||
Switzerland | 348,294,731 | 2,639,132 | (33,955,927 | ) | (31,316,795 | ) | ||||||||
United Kingdom | 1,135,968,221 | – | (246,553,350 | ) | (246,553,350 | ) |
Management has reviewed the tax positions as of February 28, 2010, 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. INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES
On December 1, 2009, Barclays PLC (“Barclays”) completed the sale of its interest in BlackRock Institutional Trust Company, N.A. (“BTC”), formerly known as Barclays Global Investors, N.A., and certain affiliated companies to BlackRock, Inc. (“BlackRock”, and such sale, the “Transaction”). BTC is a wholly-owned subsidiary of BlackRock.
The PNC Financial Services Group, Inc. (“PNC”), Bank of America Corporation (“BAC”) and Barclays are the largest stockholders of BlackRock. Due to the ownership structure, PNC is an affiliate for 1940 Act purposes, but BAC and Barclays are not.
Under the 1940 Act, upon completion of the Transaction on December 1, 2009, each Fund’s investment advisory agreement with BlackRock Fund Advisors (“BFA”), formerly known as Barclays Global Fund Advisors, was automatically terminated. The Board and shareholders of the Funds approved a new investment advisory agreement with BFA. The investment advisory fee rates and expense arrangements for the Funds remained the same after the Transaction.
Pursuant to an Investment Advisory Agreement with the Company, BFA manages the investment of each Fund’s assets. BFA is a California corporation indirectly owned by BlackRock. Under the Investment Advisory Agreement, BFA 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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Notes to Financial Statements (Unaudited) (Continued)
iSHARES®, INC.
For its investment advisory services to the Funds, except for the iShares MSCI Emerging Markets Eastern Europe Index Fund, BFA 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 |
For its investment advisory services to the iShares MSCI Emerging Markets Eastern Europe Index Fund, BFA 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 |
The U.S. Securities and Exchange Commission has issued an exemptive order which permits BTC to serve as securities lending agent for the Funds, subject to applicable conditions. BTC is an affiliate of BFA, the Funds’ investment adviser. As securities lending agent, BTC 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, 2010, BTC earned securities lending agent fees as follows:
iShares MSCI Index Fund | Securities Lending Agent Fees | iShares MSCI Index Fund | Securities Lending Agent Fees | |||||
Austria Investable Market | $187,176 | Netherlands Investable Market | $2,824 | |||||
Belgium Investable Market | 2,208 | Spain | 128,046 | |||||
EMU | 57,847 | Sweden | 11,698 | |||||
France | 5,963 | Switzerland | 36 | |||||
Germany | 81,005 | United Kingdom | 1,663 | |||||
Italy | 1,341 |
Cross trades for the six months ended February 28, 2010, 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 BFA (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 its positive cash balances in certain money market funds managed by BFA or an affiliate. The income earned on these temporary cash investments is included in interest from affiliated issuers in the Statements of Operations.
NOTESTO FINANCIAL STATEMENTS | 73 |
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Notes to Financial Statements (Unaudited) (Continued)
iSHARES®, INC.
Investments in issuers considered to be an affiliate of the iShares MSCI United Kingdom Index Fund (excluding short-term investments) during the period September 1, 2009 to November 30, 2009, for purposes of Section 2(a)(3) of the 1940 Act, were as follows:
Name of Affiliated Issuer | Number of Shares Held Beginning of Period (in 000s) | Gross Additions (in 000s) | Gross Reductions (in 000s) | Number of Shares Held End of Period (in 000s) | Value at End of Period | Dividend Income | Net Realized Gain | ||||||||||
Barclays PLC | 4,025 | 1,003 | 313 | 4,715 | $ | 22,623,237 | $ | 77,129 | $ | 1,499,143 |
Certain directors and officers of the Company are also officers of BTC and/or BFA.
3. INVESTMENT PORTFOLIO TRANSACTIONS
Purchases and sales of investments (excluding in-kind transactions and short-term investments) for the six months ended February 28, 2010 were as follows:
iShares MSCI Index Fund | Purchases | Sales | ||||
Austria Investable Market | $ | 9,147,215 | $ | 12,861,402 | ||
Belgium Investable Market | 8,125,120 | 4,417,521 | ||||
Emerging Markets Eastern Europe | 779,906 | 154,550 | ||||
EMU | 18,122,884 | 21,824,882 | ||||
France | 9,625,872 | 9,796,922 | ||||
Germany | 21,353,074 | 21,007,790 | ||||
Italy | 5,986,349 | 8,421,107 | ||||
Netherlands Investable Market | 5,598,668 | 6,413,641 | ||||
Spain | 13,307,554 | 16,269,243 | ||||
Sweden | 8,461,191 | 9,774,842 | ||||
Switzerland | 9,404,412 | 9,841,170 | ||||
United Kingdom | 33,749,915 | 29,441,553 |
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Notes to Financial Statements (Unaudited) (Continued)
iSHARES®, INC.
In-kind transactions (see Note 4) for the six months ended February 28, 2010 were as follows:
iShares MSCI Index Fund | In-kind Purchases | In-kind Sales | ||||
Austria Investable Market | $ | 90,617,263 | $ | 103,743,532 | ||
Belgium Investable Market | 84,618,152 | 35,246,861 | ||||
Emerging Markets Eastern Europe | 11,124,448 | – | ||||
EMU | 264,033,163 | 126,024,140 | ||||
France | 196,494,114 | 74,219,095 | ||||
Germany | 502,127,765 | 302,457,141 | ||||
Italy | 30,716,103 | 32,713,725 | ||||
Netherlands Investable Market | 35,727,439 | 14,573,233 | ||||
Spain | 39,463,477 | 43,346,278 | ||||
Sweden | 64,188,696 | 58,766,928 | ||||
Switzerland | 51,142,094 | 18,552,247 | ||||
United Kingdom | 214,056,566 | 72,542,461 |
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 an optimized 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 Bank and Trust Company, the administrator, to offset transfer and other transaction costs associated with the issuance and redemption of Creation Units.
5. LOANS OF PORTFOLIO SECURITIES
Each Fund may lend its investment securities to approved borrowers, such as brokers, dealers and other financial institutions. The borrower pledges and maintains with the Fund collateral consisting of cash, an irrevocable letter of credit issued by a bank, or securities issued or guaranteed by the U.S. government. The initial collateral received by each Fund is required to have a value of at least 102% of the market 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 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 BFA; such reinvestments are subject to investment risk.
As of February 28, 2010, certain Funds had loaned securities which were collateralized by cash. The cash collateral received was invested in money market funds managed by BFA. The market value of the securities on loan as of February 28, 2010 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 BTC as securities lending agent.
NOTESTO FINANCIAL STATEMENTS | 75 |
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Notes to Financial Statements (Unaudited) (Continued)
iSHARES®, INC.
6. SUBSEQUENT EVENTS
Management has evaluated the impact of all subsequent events on the Funds through the date the financial statements were available to be issued and has determined that there were no subsequent events requiring adjustment or disclosure in the financial statements.
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Shareholder Meeting Results (Unaudited)
iSHARES®, INC.
Two separate special meetings of shareholders of iShares, Inc. were held on November 4, 2009. The shareholder meetings for the iShares MSCI EMU, iShares MSCI Germany and iShares MSCI United Kingdom Index Funds were adjourned until November 19, 2009. The shareholder meetings for the iShares MSCI EMU and iShares MSCI Germany Index Funds were subsequently adjourned until November 30, 2009 and on that date were further adjourned until December 22, 2009, at which time the shareholders approved the new advisory agreement. The proposals acted upon by shareholders at the special meetings and the results of the shareholder vote were as follows:
First Meeting
Shareholders of the Funds approved Proposals 1 and 2.
Proposal 1
To approve a new investment advisory agreement between the Company and Barclays Global Fund Advisors (“BGFA”), on behalf of each Fund, which took effect upon the consummation of the Barclays PLC binding agreement to sell its interest in BGFA and certain affiliated companies to BlackRock, Inc. (the “Transaction”).
iShares MSCI Index Fund | Votes For | Votes Against | Votes Abstaining | Broker Non-Votes* | ||||
Austria Investable Market | 3,497,516 | 93,005 | 80,370 | – | ||||
Belgium Investable Market | 2,182,463 | 40,450 | 34,020 | – | ||||
EMU | 10,373,315 | 149,452 | 179,710 | 688,491 | ||||
France | 3,353,125 | 242,870 | 13,337 | 239,566 | ||||
Germany | 13,026,798 | 341,596 | 197,866 | 724,402 | ||||
Italy | 3,274,995 | 43,822 | 15,924 | – | ||||
Netherlands Investable Market | 1,867,181 | 32,246 | 76,547 | 236,317 | ||||
Spain | 3,514,487 | 43,597 | 48,613 | – | ||||
Sweden | 3,597,748 | 106,505 | 75,575 | 336,818 | ||||
Switzerland | 5,626,245 | 129,738 | 96,869 | 529,286 | ||||
United Kingdom | 22,567,350 | 690,495 | 78,297 | 1,539,301 |
Proposal 2
To approve a change in the classification of certain Funds’ investment objective from a fundamental investment policy to a non-fundamental investment policy.
iShares MSCI Index Fund | Votes For | Votes Against | Votes Abstaining | Broker Non-Votes* | ||||
EMU | 9,540,710 | 578,282 | 583,485 | 688,491 | ||||
France | 3,307,631 | 283,906 | 17,795 | 239,566 | ||||
Germany | 12,707,049 | 656,577 | 202,634 | 724,402 | ||||
Spain | 3,480,067 | 69,077 | 57,553 | – | ||||
Switzerland | 5,316,048 | 288,586 | 248,218 | 529,286 | ||||
United Kingdom | 21,682,260 | 944,875 | 709,007 | 1,539,301 |
SHAREHOLDER MEETING RESULTS | 77 |
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Shareholder Meeting Results (Unaudited) (Continued)
iSHARES®, INC.
Second Meeting
This proposal was approved by the shareholders of the Company on November 4, 2009. All nominees who previously served as Directors of the Company were re-elected and the term of their election commenced immediately. Robert S. Kapito was newly elected as a Director to the Company and the term of his election took effect upon the consummation of the Transaction.
Proposal 1**
To elect a Board of Directors of the Company.
Independent Director | Votes For | Votes Withheld | ||
George G.C. Parker | 1,597,646,058 | 46,083,560 | ||
J. Darrell Duffie | 1,517,311,684 | 126,417,934 | ||
Cecilia H. Herbert | 1,599,757,544 | 43,972,074 | ||
Charles A. Hurty | 1,599,463,459 | 44,266,159 | ||
John E. Kerrigan | 1,599,938,757 | 43,790,861 | ||
John E. Martinez | 1,599,890,206 | 43,839,412 | ||
Robert H. Silver | 1,601,631,280 | 42,098,338 | ||
Interested Director | Votes For | Votes Withheld | ||
Robert S. Kapito | 1,600,119,598 | 43,610,020 | ||
Lee T. Kranefuss | 1,117,041,744 | 526,687,874 |
* | Broker non-votes are proxies received by the Fund from brokers or nominees who did not receive instructions from the beneficial owner or other persons entitled to vote and who have no discretionary power to vote on a particular matter. Broker non-votes have the effect of a vote against the proposal. |
** | Denotes Company-wide proposal and voting results. |
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Board Review and Approval of Investment
Advisory Contract (Unaudited)
iSHARES®, INC.
iSHARES MSCI EMERGING MARKETS EASTERN EUROPE INDEX FUND
Under Section 15(c) of the Investment Company Act of 1940 (the “1940 Act”), the Company’s Board of Directors (the “Board”), including a majority of Directors who are not “interested persons” of the Company (as that term is defined in the 1940 Act) (the “Independent Directors”), is required to consider and approve the Fund’s entering into an Investment Advisory Contract with BlackRock Fund Advisors (“BFA”) (the “Advisory Contract”). As required by Section 15(c), the Board requested, and BFA provided, such information as the Board deemed reasonably necessary to evaluate the terms of the proposed Advisory Contract.
On December 1, 2009, BlackRock, Inc. (“BlackRock”) completed a transaction whereby it acquired from Barclays Bank PLC (“Barclays”) the interests in BFA, formerly known as Barclays Global Fund Advisors, and certain affiliated companies, including BlackRock Institutional Trust Company, N.A. (“BTC”), formerly known as Barclays Global Investors, N.A. (the “Transaction”).
Prior to the Transaction, BFA served as the investment advisor to other iShares funds pursuant to an investment advisory agreement with the Company (the “Previous Advisory Agreement”). At a meeting held on June 16-17, 2009, the Board approved the selection of BFA and the Previous Advisory Agreement for the Fund, based on its review of qualitative and quantitative information provided by BFA. However, the Previous Advisory Agreement did not take effect with respect to the Fund, as the Transaction was consummated prior to the Fund’s inception.
BOARD CONSIDERATIONS IN APPROVING THE ADVISORY CONTRACT
At an in-person Board meeting held on August 13, 2009, the Board, including the Independent Directors, unanimously approved the Advisory Contract between the BFA and the Company, on behalf of the Fund after consideration of all factors determined to be relevant to the Board’s deliberations, including those discussed below.
THE APPROVAL PROCESS
At telephonic and in-person meetings held on June 17, July 29 and August 13, 2009, the Board, including the Independent Directors, discussed the Transaction and the Advisory Contract for the Fund.
In preparation for their consideration of the Advisory Contract, the Directors received, in response to a written due diligence request prepared by the Board and its independent counsel and provided to BlackRock, BTC and BFA, comprehensive written information covering a range of issues and received, in response to their additional requests, further information in advance of and at the August 2009 in-person Board meeting. To assist the Board in its consideration of the Advisory Contract, BlackRock provided materials and information about itself, including its history, management, investment, risk management and compliance capabilities and processes, and financial condition, and BFA provided materials and information about the Transaction. In addition, the Independent Directors consulted with their independent legal counsel and Fund counsel on numerous occasions, discussing, among other things, the legal standards and certain other considerations relevant to the Board’s deliberations.
In June 2009, the Board had performed a full annual review of, or initially approved, as applicable, the Previous Advisory Agreement between BFA and the Company, on behalf of other iShares funds as required by the 1940 Act and, after reviewing, among other things, the investment capabilities, resources and personnel of BFA, determined that the nature, extent and quality of the services provided by BFA under the Previous Advisory Agreement were appropriate.
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Board Review and Approval of Investment
Advisory Contract (Unaudited) (Continued)
iSHARES®, INC.
At the June, July and August 2009 Board meetings, the Directors discussed with representatives of BTC, BFA and BlackRock, the management, investment, risk management and compliance capabilities and processes, and financial condition of BlackRock, the Transaction and its rationale, and BlackRock’s general plans and intentions regarding BFA and the iShares funds. At these Board meetings, representatives of BTC, BFA and BlackRock made various presentations to, and responded to questions from, the Board. The Board also inquired about the plans for, and anticipated roles and responsibilities of, the employees and officers of BFA in connection with the Transaction, including the anticipated senior management structure of BFA following the completion of the Transaction. The Independent Directors also conferred separately and with their independent legal counsel about the Transaction and other matters related to the Transaction on a number of occasions. After the presentations and after reviewing the written materials provided, the Independent Directors met in executive sessions with their independent legal counsel at the June, July and August 2009 Board meetings to consider the Transaction, its expected impact on BFA and the Fund, and the Advisory Contract.
In connection with the Board’s review of the Advisory Contract, BTC, BFA and/or BlackRock, as applicable, provided the Board with information about a variety of matters. The Board considered, among other things, the following information:
• | the reputation, financial strength and resources of BlackRock and its investment advisory subsidiaries and the anticipated financial strength and resources of the combined company; |
• | that there is not expected to be any diminution in the nature, quality and extent of services provided to the iShares funds and their shareholders by BFA, including portfolio management and compliance services; |
• | that BFA and BlackRock have no present intention to alter the advisory fee rates and expense arrangements currently in effect for the Fund for a period of two years from the date of the closing of the Transaction; |
• | that it is expected that substantially all of the current employees of BFA will remain employees of BFA and will continue to provide services to the iShares funds following the Transaction; |
• | that the iShares funds may benefit from having direct access to BlackRock’s state of the art technology and risk management analytic tools, including investment tools, provided under the BlackRock Solutions® brand name; |
• | that the iShares funds are expected to continue to be sold through existing distribution channels; |
• | that the iShares funds will have access to greater distribution resources through BlackRock’s relationships with third party brokers and retirement plan platforms; |
• | that the parties to the Transaction Agreement have agreed to conduct their respective businesses in compliance with the conditions of Section 15(f) of the 1940 Act in relation to the iShares funds; |
• | that Barclays or one of its affiliates has agreed to pay all expenses of the iShares funds in connection with the Board’s consideration of the Advisory Contract and all costs of seeking shareholder approval of the Advisory Contract; and |
• | that Barclays and BlackRock would derive benefits from the Transaction and that, as a result, they may have a different financial interest in the matters that were being considered than do Fund shareholders. |
The Board did not identify any particular information that was all-important or controlling, and each Director may have attributed different weights to the various factors discussed below. The Directors evaluated all information available to them. In their deliberations, the Directors considered information received in connection with their most recent approval or continuation of the Previous Advisory Agreement at the June 2009 Board meeting, in addition to information provided by BTC, BFA and BlackRock regarding BlackRock and the Transaction, in connection with their evaluation of the terms and conditions of the Advisory Contract. The Directors, including a majority of the Independent Directors, concluded that the terms of the Advisory Contract are appropriate, that the fees to be paid are reasonable in light of the services to be provided to the Fund, and that the Advisory Contract should be approved. In voting to approve the Advisory Contract in respect of the Fund, the Board considered in particular the following factors:
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Board Review and Approval of Investment
Advisory Contract (Unaudited) (Continued)
iSHARES®, INC.
NATURE, EXTENT AND QUALITY OF SERVICES TO BE PROVIDED BY BFA
In connection with their consideration of the Advisory Contract, the Board considered representations by BFA, BTC and BlackRock that there would be no diminution in the scope of services required of or provided by BFA under the Advisory Contract for the Fund as compared to the scope of services provided by BFA under the Previous Advisory Agreement. In reviewing the scope of these services at the June and August 2009 Board meetings, the Board considered BFA’s investment philosophy and experience, noting that BFA and its affiliates have committed significant resources over time, including over the past year, including investments in technology and increasing the number of their employees supporting the other iShares funds. In that regard, the Board noted that BFA reports to the Board about portfolio management and compliance matters on a periodic basis in connection with regularly scheduled meetings of the Board, and has made appropriate officers available as needed to provide further assistance with these matters. The Board noted that it expects that these reports and discussions will continue following the consummation of the Transaction. In addition to the above considerations, the Board considered BFA’s investment processes and strategies, and matters related to BFA’s portfolio transaction policies and procedures. The Board further took into account that, with respect to the Fund, BFA does not serve as investment adviser for other series of registered investment companies with substantially similar investment objectives and strategies; therefore, directly comparable performance information was generally not available for the Fund.
The Board noted the representations of BFA, BTC and BlackRock that the Transaction was not expected to have any adverse effect on the resources and strengths of BFA in managing the iShares funds. The Board also considered that the iShares funds and their shareholders may benefit from having direct access to BlackRock’s state of the art technology and risk management analytic tools, including the investment tools provided under the BlackRock Solutions® brand name. The Board discussed BlackRock’s current financial condition, its anticipated financial condition following the completion of the Transaction and its lines of business. The Board also discussed BFA’s anticipated financial condition following the completion of the Transaction. The Board discussed BlackRock’s current ownership structure and expected ownership structure following the completion of the Transaction. The Board was advised that BlackRock operates as an independent firm, with its own Board of Directors and no majority shareholder. The Board was also advised that while BlackRock’s largest shareholders, Merrill Lynch, a wholly owned subsidiary of Bank of America, and PNC, are important clients and strategic partners of BlackRock, they are not involved in the firm’s day-to-day management or operations.
Based on the discussions held and the materials presented at the June, July and August 2009 Board meetings and prior Board meetings, the Board determined that the Transaction would not likely cause an adverse change in the nature, extent and quality of the services to be provided by BFA under the Advisory Contract compared with the services provided by BFA under the Previous Advisory Agreement and that the Board expects that the quality of such services will continue to be appropriate.
FUND EXPENSES
The Board received and reviewed statistical information prepared by Lipper Inc. (“Lipper”) at the June 2009 meeting and also received information at prior meetings regarding the expense ratio components of the Fund, including advisory fees, in comparison with the same information for other registered investment companies objectively selected by Lipper as comprising the Fund’s peer group pursuant to Lipper’s proprietary methodology (“Lipper Group”). Because there are few, if any, exchange traded funds or index funds that track indexes similar to the one tracked by the Fund, the Lipper Group may have included mutual funds, closed-end funds, exchange traded funds, or funds with differing investment objective classifications, investment focuses and other characteristics (e.g., actively managed funds and funds sponsored by “at cost” service providers). In support of its review of the statistical information, the Board was provided with a detailed
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Board Review and Approval of Investment
Advisory Contract (Unaudited) (Continued)
iSHARES®, INC.
description of the methodology used by Lipper to determine the Lipper Group and to prepare this information. The Board further noted that due to the limitations in providing comparable funds in the Lipper Group, the statistical information may or may not provide meaningful direct comparisons to the Fund.
The Board noted that the investment advisory fees and overall expenses for the Fund were generally lower than the median or average investment advisory fee rates and overall expenses of the funds in its Lipper Group with respect to the Previous Advisory Agreement and Advisory Contract. The Board took into account that the fee rates for the Fund under the Advisory Contract are identical to the fee rates under the Previous Advisory Agreement. Further, the Board noted that representatives of BFA and BlackRock had confirmed that there is no present intention to alter the advisory fee rates, expense waivers or expense reimbursements currently in effect for the iShares funds for a period of two years from the date of the closing of the Transaction.
Based on this review, the Board had concluded that the investment advisory fee rates and expense levels of the Fund, as proposed to be managed by BFA, as compared to the investment advisory fee rates and expense levels of the funds in the relevant Lipper Group, were satisfactory for the purposes of approving the Previous Advisory Agreement and concluded that these comparisons continued to be satisfactory for the purpose of approving the Advisory Contract.
COST OF SERVICES TO BE PROVIDED TO THE FUND AND PROFITS TO BE REALIZED BY BFA
The Board did not consider at the June 2009 Board meeting, the profitability of the Fund to BFA based on the fees payable under the Previous Advisory Agreement or revenue to be received by BFA or its affiliates in connection with services to be provided to the Fund since the proposed relationship had not yet commenced. However, the Board noted that it would consider these matters in the future.
The Board noted that the Advisory Contract is similar to the Previous Advisory Agreement, including the fact that the fee rates under the Agreements are identical and that representatives of BFA and BlackRock represented that there is no present intention due to the Transaction to alter the advisory fee rates, expense waiver or expense reimbursements currently in effect for the iShares funds for a period of two years from the date of the closing of the Transaction.
ECONOMIES OF SCALE
The Board noted that the Previous Advisory Agreement and Advisory Contract provide for breakpoints in the Fund’s investment advisory fee rates as the assets of the Fund, on an aggregated level basis with the assets of certain other iShares funds, increase. At the June 2009 Board meeting, the Board, recognizing its responsibility to consider this issue at least annually, concluded that the structure of the investment advisory fee rates, with breakpoints for the Fund, reflected appropriate sharing of economies of scale with the Fund’s shareholders.
The Board noted representations from BFA and BlackRock that BFA will continue to make significant investments in the iShares fund complex and the infrastructure supporting the funds. The Board determined that changes to the fee structure were not currently necessary and that the Fund would appropriately participate in economies of scale. It was noted that it was not possible to evaluate how the Transaction would create opportunities for additional economies of scale. The Board expects to consider economies of scale on at least an annual basis following completion of the Transaction and thus be in a position to evaluate additional economies of scale, if any.
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Board Review and Approval of Investment
Advisory Contract (Unaudited) (Continued)
iSHARES®, INC.
FEES AND SERVICES PROVIDED FOR OTHER COMPARABLE FUNDS/ACCOUNTS MANAGED BY BFA AND ITS AFFILIATES
At the June 2009 Board meeting, the Board received and considered certain information regarding the Fund’s annual investment advisory fee rates under the Previous Advisory Agreement in comparison to the investment advisory/management fee rates for other funds/accounts for which BFA or BTC provides investment advisory/management services, including other funds registered under the 1940 Act, collective funds and separate accounts (together, the “Other Accounts”). The Board noted that directly comparable investment advisory/management fee information was not available for the Fund, as BFA and its affiliates do not manage any Other Accounts with substantially similar investment objectives and strategies as the Fund. The Board noted, however, that BFA provided the Board with general information regarding how the level of services provided to the Other Accounts differed from the level of services provided to the Fund. Based on this review, the Board determined that the investment advisory fee rates under the Previous Advisory Agreement and Advisory Contract do not constitute fees that are so disproportionately large as to bear no reasonable relationship to the services rendered and that could not have been the product of arm’s-length bargaining, and concluded that the investment advisory fee rates under the Previous Advisory Agreement and Advisory Contract are fair and reasonable.
OTHER BENEFITS TO BFA AND ITS AFFILIATES
Except as noted below, the Board did not review any ancillary revenue to be received by BFA and/or its affiliates in connection with the services to be provided to the Fund by BFA or its affiliates, since the proposed relationship had not yet commenced. The Board noted that BFA would not use soft dollars or consider the value of research or other services that may be provided to BFA (including its affiliates) in selecting brokers for portfolio transactions for the Fund. The Board further noted that any portfolio transactions on behalf of the Fund placed through an affiliate of BFA, or purchased from an underwriting syndicate in which a BFA affiliate participates, are reported to the Board pursuant to Rule 17e-1 or Rule 10f-3, as applicable, under the 1940 Act.
CONCLUSION
The Board examined the totality of the information they were provided at the June, July and August 2009 Board meetings and information they received at other meetings held during the past year, and did not identify any single factor discussed previously as controlling. Based on this analysis, the Board determined that the Advisory Contract, including the investment advisory fee rates thereunder, is fair and reasonable in light of all relevant circumstances.
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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 Russell Domestic Index Funds | Trading Symbol | |
iShares Russell 3000 | IWV | |
iShares Russell 3000 Growth | IWZ | |
iShares Russell 3000 Value | IWW | |
iShares Russell Top 200 | IWL | |
iShares Russell Top 200 Growth | IWY | |
iShares Russell Top 200 Value | IWX | |
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 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 Morningstar Domestic 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 Dow Jones Domestic Index Funds | ||
iShares Dow Jones U.S. | IYY | |
iShares KLD Socially Responsible Index Funds | ||
iShares FTSE KLD 400 Social | DSI | |
iShares FTSE KLD Select Social | KLD | |
iShares NYSE Domestic Index Funds | ||
iShares NYSE Composite | NYC | |
iShares NYSE 100 | NY | |
iShares Domestic Specialty Index Funds | ||
iShares S&P U.S. Preferred Stock | PFF | |
iShares Dow Jones Select Dividend | DVY |
iShares North American Sector/Subsector Index Funds | Trading Symbol | |
iShares S&P North American Technology Sector | IGM | |
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 Natural Resources Sector | IGE | |
iShares Domestic Sector Index Funds | ||
iShares Dow Jones U.S. Basic Materials Sector | IYM | |
iShares Dow Jones U.S. Consumer Goods Sector | IYK | |
iShares Dow Jones U.S. Consumer Services Sector | IYC | |
iShares Dow Jones U.S. Energy Sector | IYE | |
iShares Dow Jones U.S. Financial Sector | IYF | |
iShares Dow Jones U.S. Healthcare Sector | IYH | |
iShares Dow Jones U.S. Industrial Sector | IYJ | |
iShares Dow Jones U.S. Technology Sector | IYW | |
iShares Dow Jones U.S. Telecommunications Sector | IYZ | |
iShares Dow Jones U.S. Utilities Sector | IDU | |
iShares Domestic Subsector Index Funds | ||
iShares Dow Jones Transportation Average | IYT | |
iShares Dow Jones U.S. Aerospace & Defense | ITA | |
iShares Dow Jones U.S. Broker-Dealers | IAI | |
iShares Dow Jones U.S. Financial Services | IYG | |
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 Nasdaq Biotechnology | IBB | |
iShares Domestic Real Estate Index Funds | ||
iShares Cohen & Steers Realty Majors | ICF | |
iShares Dow Jones U.S. Real Estate | IYR | |
iShares FTSE NAREIT Real Estate 50 | FTY | |
iShares FTSE NAREIT Industrial/Office Capped | FIO | |
iShares FTSE NAREIT Mortgage Plus Capped | REM | |
iShares FTSE NAREIT Residential Plus Capped | REZ | |
iShares FTSE NAREIT Retail Capped | RTL | |
iShares Target Risk Index Funds | ||
iShares S&P Conservative Allocation | AOK | |
iShares S&P Moderate Allocation | AOM | |
iShares S&P Growth Allocation | AOR | |
iShares S&P Aggressive Allocation | AOA |
84 | 2010 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
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The iShares® Family of Funds (Continued)
iShares International Country Index Funds |
Trading | |
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 S&P/TOPIX 150 | ITF | |
iShares MSCI Malaysia | EWM | |
iShares MSCI Mexico Investable Market | EWW | |
iShares MSCI Netherlands Investable Market | EWN | |
iShares MSCI All Peru Capped | EPU | |
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 India Nifty 50 | INDY | |
iShares International Index Funds | ||
iShares MSCI ACWI ex US | ACWX | |
iShares MSCI EAFE | EFA | |
iShares MSCI EAFE Growth | EFG | |
iShares MSCI EAFE Value | EFV | |
iShares MSCI EAFE Small Cap | SCZ | |
iShares FTSE Developed Small Cap ex-North America | IFSM | |
iShares MSCI Emerging Markets | EEM | |
iShares MSCI Emerging Markets Eastern Europe | ESR | |
iShares MSCI BRIC | BKF | |
iShares MSCI EMU | EZU | |
iShares MSCI All Country Asia ex Japan | AAXJ | |
iShares MSCI Pacific ex-Japan | EPP | |
iShares S&P Asia 50 | AIA | |
iShares S&P Europe 350 | IEV | |
iShares S&P Latin America 40 | ILF | |
iShares International/Global Real Estate Index Funds | ||
iShares S&P Developed ex-U.S. Property | WPS | |
iShares FTSE EPRA/NAREIT Developed Real Estate ex-U.S | IFGL | |
iShares FTSE EPRA/NAREIT Developed Asia | IFAS | |
iShares FTSE EPRA/NAREIT Developed Europe | IFEU | |
iShares FTSE EPRA/NAREIT North America | IFNA |
iShares Target Date Index Funds | Trading Symbol | |
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 Global Index Funds | ||
iShares MSCI ACWI | ACWI | |
iShares S&P Global 100 | IOO | |
iShares MSCI Kokusai | TOK | |
iShares International/Global Sector Index Funds | ||
iShares MSCI ACWI ex US Financials Sector | AXFN | |
iShares MSCI Emerging Markets Financials Sector | EMFN | |
iShares MSCI Emerging Markets Materials Sector | EMMT | |
iShares MSCI Europe Financials Sector | EUFN | |
iShares MSCI Far East Financials Sector | FEFN | |
iShares S&P Global Consumer Discretionary Sector | RXI | |
iShares S&P Global Consumer Staples Sector | KXI | |
iShares S&P Global Energy Sector | IXC | |
iShares S&P Global Financials Sector | IXG | |
iShares S&P Global Healthcare Sector | IXJ | |
iShares S&P Global Industrials Sector | EXI | |
iShares S&P Global Materials Sector | MXI | |
iShares S&P Global Technology Sector | IXN | |
iShares S&P Global Telecommunications Sector | IXP | |
iShares S&P Global Utilities Sector | JXI | |
iShares International/Global Theme Based and Specialty Index Funds | ||
iShares S&P Global Clean Energy | ICLN | |
iShares S&P Global Infrastructure | IGF | |
iShares S&P Emerging Markets Infrastructure | EMIF | |
iShares S&P Global Nuclear Energy | NUCL | |
iShares S&P Global Timber & Forestry | WOOD | |
iShares Dow Jones International Select Dividend | IDV | |
iShares U.S. Multisector Bond Funds | ||
iShares Barclays Aggregate | AGG | |
iShares Barclays Government/Credit | GBF | |
iShares Barclays Intermediate Government/Credit | GVI | |
iShares 10+ Year Government/Credit | GLJ | |
iShares U.S. Government Bond Funds | ||
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 U.S. Credit Bond Funds | ||
iShares Barclays Credit | CFT | |
iShares Barclays 1-3 Year Credit | CSJ | |
iShares Barclays Intermediate Credit | CIU | |
iShares iBoxx $ Investment Grade Corporate | LQD | |
iShares 10+ Year Credit | CLY | |
iShares iBoxx $ High Yield Corporate | HYG |
iSHARES FAMILYOF FUNDS | 85 |
Table of Contents
The iShares® Family of Funds (Continued)
iShares AMT-Free Municipal Bond Funds | Trading Symbol | |
iShares S&P National AMT-Free Municipal | MUB | |
iShares S&P Short Term National AMT-Free Municipal | SUB | |
iShares S&P California AMT-Free Municipal | CMF | |
iShares S&P New York AMT-Free Municipal | NYF | |
iShares 2012 S&P AMT-Free Municipal Series | MUAA | |
iShares 2013 S&P AMT-Free Municipal Series | MUAB | |
iShares 2014 S&P AMT-Free Municipal Series | MUAC | |
iShares 2015 S&P AMT-Free Municipal Series | MUAD | |
iShares 2016 S&P AMT-Free Municipal Series | MUAE | |
iShares 2017 S&P AMT-Free Municipal Series | MUAF |
iShares U.S. Securitized Bond Funds | Trading Symbol | |
iShares Barclays MBS | MBB | |
iShares International Bond Funds | ||
iShares JPMorgan USD Emerging Markets | EMB | |
iShares S&P/Citigroup International Treasury | IGOV | |
iShares S&P/Citigroup 1-3 Year International Treasury | ISHG |
The iShares Funds (“Funds”) are distributed by SEI Investments Distribution Co. (“SEI”). iShares® is a registered trademark of BlackRock Institutional Trust Company, N.A. The Funds are not sponsored, endorsed, issued, sold or promoted by Cohen & Steers Capital Management, Inc., Dow Jones & Company, Inc., European Public Real Estate Association (“EP RA®”), FTSE International Limited (“FTSE”), FTSE/Xinhua Index Limited (“FXI”), iBoxx®, J.P. Morgan Securities Inc., MSCI Inc., Morningstar Inc., The NASDAQ OMX Group, 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, endorsed or issued by Barclays Capital. None of these companies make any representation regarding the advisability of investing in the iShares Funds. Neither SEI, nor BlackRock Institutional Trust Company, N.A., nor any of their affiliates, are affiliated with the companies listed above. FXI does not make any warranty regarding the FTSE/Xinhua Index. All rights in the FTSE/Xinhua Index vest in FXI. Neither FTSE nor NAREIT makes any warranty regarding the FTSE NAREITReal 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.
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This advertising section does not constitute part of the 2010 Semi-Annual Report.
iS-2350-0310
86 | 2010 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
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Dear iShares Shareholder:
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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 ending 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.
©2010 BlackRock Institutional Trust Company, N.A. All rights reserved. iShares® is a registered trademark of BlackRock Institutional Trust Company, N.A. All other trademarks, servicemarks, or registered trademarks are the property of their respective owners.
iS-SAR-82-0210
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2010 SEMI-ANNUAL REPORT TO SHAREHOLDERS
iSHARES ® MSCI SERIES
FEBRUARY 28, 2010
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iShares MSCI Brazil Index Fund I EWZ I NYSE Arca iShares MSCI BRIC Index Fund I BKF I NYSE Arca iShares MSCI Canada Index Fund I EWC I NYSE Arca iShares MSCI Chile Investable Market Index Fund I ECH I NYSE Arca iShares MSCI Israel Capped Investable Market Index Fund I EIS I NYSE Arca iShares MSCI Mexico Investable Market Index Fund I EWW I NYSE Arca iShares MSCI South Africa Index Fund I EZA I NYSE Arca iShares MSCI Turkey Investable Market Index Fund I TUR I NYSE Arca
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iSHARES® MSCI BRAZIL INDEX FUND
Performance as of February 28, 2010
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, 2010, the total return for the Fund was 21.55%, while the total return for the Index was 21.11%.
Average Annual Total Returns | ||||||||||||||||
Year Ended 2/28/10 | Five Years Ended 2/28/10 | Inception to 2/28/10 | ||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||
108.26% | 107.79% | 109.06% | 25.82% | 25.80% | 27.05% | 16.74% | 16.68% | 18.71% | ||||||||
Cumulative Total Returns | ||||||||||||||||
Year Ended 2/28/10 | Five Years Ended 2/28/10 | Inception to 2/28/10 | ||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||
108.26% | 107.79% | 109.06% | 215.30% | 215.10% | 230.98% | 344.82% | 342.47% | 422.59% |
Total returns for the period since inception are calculated from the inception date of the Fund (7/10/00). “Average Annual Total Returns” represent the average annual change in value of an investment over the period(s) indicated. “Cumulative Total Returns” represent the total change in value of an investment over the period(s) indicated.
Certain sectors and markets performed exceptionally well based on market conditions during the one-year period. Achieving such exceptional returns involves the risk of volatility and investors should not expect that such exceptional returns will be repeated.
The Fund’s per share net asset value or “NAV” is the value of one share of the Fund as calculated in accordance with the standard formula for valuing mutual fund shares. The NAV return is based on the NAV of the Fund and the market return is based on the market price per share of the Fund. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which shares of the Fund are listed for trading, as of the time that the Fund’s NAV is calculated. Since shares of the Fund did not trade in the secondary market until 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 performance shown in the table(s) above assumes reinvestment of all dividends and capital gain distributions and does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption or sale of fund shares. The investment return and principal value of shares of the Fund will vary with changes in market conditions. Shares of the Fund may be worth more or less than their original cost when they are redeemed or sold in the market. The Fund’s past performance is no guarantee of future results.
PORTFOLIO ALLOCATION As of 2/28/10 | |||
Sector | Percentage of Net Assets | ||
Basic Materials | 27.30 | % | |
Energy | 23.40 | ||
Financial | 22.76 | ||
Consumer Non-Cyclical | 9.65 | ||
Utilities | 5.37 | ||
Communications | 3.86 | ||
Diversified | 2.87 | ||
Industrial | 2.09 | ||
Consumer Cyclical | 2.01 | ||
Short-Term and Other Net Assets | 0.69 | ||
TOTAL | 100.00 | % | |
TEN LARGEST FUND HOLDINGS As of 2/28/10 | |||
Security | Percentage of Net Assets | ||
Petroleo Brasileiro SA Preferred | 11.67 | % | |
Vale SA Class A Preferred | 9.83 | ||
Petroleo Brasileiro SA | 9.49 | ||
Itau Unibanco Holding SA Preferred | 8.19 | ||
Vale SA SP ADR | 7.28 | ||
Banco Bradesco SA Preferred | 4.87 | ||
Companhia de Bebidas das Americas Preferred | 3.09 | ||
Itausa - Investimentos Itau SA Preferred | 2.87 | ||
Companhia Siderurgica Nacional SA | 2.48 | ||
OGX Petroleo e Gas | 2.24 | ||
TOTAL | 62.01 | % | |
FUND PERFORMANCE OVERVIEWS | 1 |
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Fund Performance Overview
iSHARES® MSCI BRIC INDEX FUND
Performance as of February 28, 2010
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 a free-float-adjusted market capitalization index that 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, 2010, the total return for the Fund was 14.77%, while the total return for the Index was 14.84%.
Average Annual Total Returns | Cumulative Total Returns | |||||||||||||||
Year Ended 2/28/10 | Inception to 2/28/10 | Inception to 2/28/10 | ||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||
97.99% | 100.04% | 96.87% | (10.17)% | (10.18)% | (10.65)% | (21.84)% | (21.87)% | (22.83)% |
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.
Certain sectors and markets performed exceptionally well based on market conditions during the one-year period. Achieving such exceptional returns involves the risk of volatility and investors should not expect that such exceptional returns will be repeated.
The Fund’s per share net asset value or “NAV” is the value of one share of the Fund as calculated in accordance with the standard formula for valuing mutual fund shares. The NAV return is based on the NAV of the Fund and the market return is based on the market price per share of the Fund. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which shares of the Fund are listed for trading, as of the time that the Fund’s NAV is calculated. Since shares of the Fund did not trade in the secondary market until 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 performance shown in the table(s) above assumes reinvestment of all dividends and capital gain distributions and does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption or sale of fund shares. The investment return and principal value of shares of the Fund will vary with changes in market conditions. Shares of the Fund may be worth more or less than their original cost when they are redeemed or sold in the market. The Fund’s past performance is no guarantee of future results.
PORTFOLIO ALLOCATION As of 2/28/10 | |||
Sector | Percentage of Net Assets | ||
Financial | 27.71 | % | |
Energy | 25.80 | ||
Basic Materials | 13.33 | ||
Communications | 9.12 | ||
Consumer Non-Cyclical | 7.07 | ||
Technology | 5.55 | ||
Industrial | 3.95 | ||
Consumer Cyclical | 2.55 | ||
Diversified | 2.45 | ||
Utilities | 2.14 | ||
Short-Term and Other Net Assets | 0.33 | ||
TOTAL | 100.00 | % | |
TEN LARGEST FUND HOLDINGS As of 2/28/10 | |||
Security | Percentage of Net Assets | ||
Petroleo Brasileiro SA Preferred (Brazil) | 4.11 | % | |
China Mobile Ltd. (China) | 3.91 | ||
Vale SA Class A Preferred (Brazil) | 3.67 | ||
OAO Gazprom SP ADR (Russia) | 3.58 | ||
Petroleo Brasileiro SA (Brazil) | 3.29 | ||
Reliance Industries Ltd. SP GDR (India) | 3.13 | ||
Infosys Technologies Ltd. SP ADR (India) | 3.07 | ||
Itau Unibanco Holding SA Preferred (Brazil) | 2.83 | ||
Vale SA (Brazil) | 2.73 | ||
HDFC Bank Ltd. SP ADR (India) | 2.51 | ||
TOTAL | 32.83 | % | |
2 | 2010 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
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Fund Performance Overview
iSHARES® MSCI CANADA INDEX FUND
Performance as of February 28, 2010
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 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, 2010, the total return for the Fund was 10.05%, while the total return for the Index was 10.22%.
Average Annual Total Returns | ||||||||||||||||
Year Ended 2/28/10 | Five Years Ended 2/28/10 | Ten Years Ended 2/28/10 | ||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||
73.01% | 74.37% | 73.50% | 9.52% | 9.55% | 9.81% | 8.44% | 8.18% | 7.98% | ||||||||
Cumulative Total Returns | ||||||||||||||||
Year Ended 2/28/10 | Five Years Ended 2/28/10 | Ten Years Ended 2/28/10 | ||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||
73.01% | 74.37% | 73.50% | 57.56% | 57.78% | 59.70% | 124.90% | 119.56% | 115.50% |
“Average Annual Total Returns” represent the average annual change in value of an investment over the period(s) indicated. “Cumulative Total Returns” represent the total change in value of an investment over the period(s) indicated.
Certain sectors and markets performed exceptionally well based on market conditions during the one-year period. Achieving such exceptional returns involves the risk of volatility and investors should not expect that such exceptional returns will be repeated.
The Fund’s per share net asset value or “NAV” is the value of one share of the Fund as calculated in accordance with the standard formula for valuing mutual fund shares. The NAV return is based on the NAV of the Fund and the market return is based on the market price per share of the Fund. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which 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 performance shown in the table(s) above assumes reinvestment of all dividends and capital gain distributions and does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption or sale of fund shares. The investment return and principal value of shares of the Fund will vary with changes in market conditions. Shares of the Fund may be worth more or less than their original cost when they are redeemed or sold in the market. The Fund’s past performance is no guarantee of future results.
PORTFOLIO ALLOCATION As of 2/28/10 | |||
Sector | Percentage of Net Assets | ||
Financial | 33.14 | % | |
Energy | 24.79 | ||
Basic Materials | 19.81 | ||
Industrial | 5.37 | ||
Communications | 5.01 | ||
Technology | 4.10 | ||
Consumer Cyclical | 2.79 | ||
Consumer Non-Cyclical | 2.01 | ||
Diversified | 1.60 | ||
Utilities | 1.20 | ||
Short-Term and Other Net Assets | 0.18 | ||
TOTAL | 100.00 | % | |
TEN LARGEST FUND HOLDINGS As of 2/28/10 | |||
Security | Percentage of Net Assets | ||
Royal Bank of Canada | 7.27 | % | |
Toronto-Dominion Bank (The) | 5.27 | ||
Bank of Nova Scotia | 4.46 | ||
Suncor Energy Inc. | 4.32 | ||
Barrick Gold Corp. | 3.55 | ||
Canadian Natural Resources Ltd. | 3.50 | ||
Research In Motion Ltd. | 3.48 | ||
Potash Corp. of Saskatchewan Inc. | 3.13 | ||
Manulife Financial Corp. | 3.09 | ||
Bank of Montreal | 2.82 | ||
TOTAL | 40.89 | % | |
FUND PERFORMANCE OVERVIEWS | 3 |
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Fund Performance Overview
iSHARES® MSCI CHILE INVESTABLE MARKET INDEX FUND
Performance as of February 28, 2010
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 a free float-adjusted market capitalization index that 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, 2010, the total return for the Fund was 26.69%, while the total return for the Index was 26.86%.
Average Annual Total Returns | Cumulative Total Returns | |||||||||||||||
Year Ended 2/28/10 | Inception to 2/28/10 | Inception to 2/28/10 | ||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||
73.34% | 72.29% | 74.09% | 7.73% | 7.90% | 7.68% | 18.68% | 19.11% | 18.56% |
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.
Certain sectors and markets performed exceptionally well based on market conditions during the six-month and one-year periods. Achieving such exceptional returns involves the risk of volatility and investors should not expect that such exceptional returns will be repeated.
The Fund’s per share net asset value or “NAV” is the value of one share of the Fund as calculated in accordance with the standard formula for valuing mutual fund shares. The NAV return is based on the NAV of the Fund and the market return is based on the market price per share of the Fund. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which shares of the Fund are listed for trading, as of the time that the Fund’s NAV is calculated. Since shares of the Fund did not trade in the secondary market until 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 performance shown in the table(s) above assumes reinvestment of all dividends and capital gain distributions and does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption or sale of fund shares. The investment return and principal value of shares of the Fund will vary with changes in market conditions. Shares of the Fund may be worth more or less than their original cost when they are redeemed or sold in the market. The Fund’s past performance is no guarantee of future results.
PORTFOLIO ALLOCATION As of 2/28/10 | |||
Sector | Percentage of Net Assets | ||
Utilities | 28.11 | % | |
Basic Materials | 20.46 | ||
Diversified | 13.58 | ||
Consumer Cyclical | 12.05 | ||
Financial | 9.95 | ||
Consumer Non-Cyclical | 9.51 | ||
Communications | 2.73 | ||
Industrial | 2.40 | ||
Technology | 1.00 | ||
Short-Term and Other Net Assets | 0.21 | ||
TOTAL | 100.00 | % | |
TEN LARGEST FUND HOLDINGS As of 2/28/10 | |||
Security | Percentage of Net Assets | ||
Empresas Copec SA | 13.58 | % | |
Enersis SA | 10.46 | ||
Empresa Nacional de | 10.07 | ||
Empresas CMPC SA | 8.82 | ||
Sociedad Quimica y Minera de Chile SA Series B | 6.39 | ||
Cencosud SA | 4.97 | ||
Banco Santander Chile SA | 4.92 | ||
LAN Airlines SA | 4.56 | ||
CAP SA | 4.32 | ||
S.A.C.I. Falabella SA | 3.60 | ||
TOTAL | 71.69 | % | |
4 | 2010 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Fund Performance Overview
iSHARES® MSCI ISRAEL CAPPED INVESTABLE MARKET INDEX FUND
Performance as of February 28, 2010
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, 2010, the total return for the Fund was 18.51%, while the total return for the Index was 19.05%.
Average Annual Total Returns | Cumulative Total Returns | |||||||||||||||
Year Ended 2/28/10 | Inception to 2/28/10 | Inception to 2/28/10 | ||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||
78.49% | 86.66% | 79.60% | 6.90% | 7.82% | 7.93% | 13.76% | 15.65% | 15.86% |
Total returns for the period since inception are calculated from the inception date of the Fund (3/26/08). “Average Annual Total Returns” represent the average annual change in value of an investment over the period(s) indicated. “Cumulative Total Returns” represent the total change in value of an investment over the period(s) indicated.
Certain sectors and markets performed exceptionally well based on market conditions during the one-year period. Achieving such exceptional returns involves the risk of volatility and investors should not expect that such exceptional returns will be repeated.
The Fund’s per share net asset value or “NAV” is the value of one share of the Fund as calculated in accordance with the standard formula for valuing mutual fund shares. The NAV return is based on the NAV of the Fund and the market return is based on the market price per share of the Fund. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which shares of the Fund are listed for trading, as of the time that the Fund’s NAV is calculated. Since shares of the Fund did not trade in the secondary market until 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 performance shown in the table(s) above assumes reinvestment of all dividends and capital gain distributions and does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption or sale of fund shares. The investment return and principal value of shares of the Fund will vary with changes in market conditions. Shares of the Fund may be worth more or less than their original cost when they are redeemed or sold in the market. The Fund’s past performance is no guarantee of future results.
PORTFOLIO ALLOCATION As of 2/28/10 | |||
Sector | Percentage of Net Assets | ||
Financial | 27.13 | % | |
Consumer Non-Cyclical | 26.50 | ||
Communications | 23.81 | ||
Basic Materials | 11.76 | ||
Industrial | 5.29 | ||
Energy | 1.95 | ||
Technology | 1.40 | ||
Consumer Cyclical | 1.20 | ||
Diversified | 0.86 | ||
Short-Term and Other Net Assets | 0.10 | ||
TOTAL | 100.00 | % | |
TEN LARGEST FUND HOLDINGS As of 2/28/10 | |||
Security | Percentage of Net Assets | ||
Teva Pharmaceutical Industries Ltd. | 23.93 | % | |
Israel Chemicals Ltd. | 8.78 | ||
Check Point Software | 7.49 | ||
Bank Leumi le-Israel | 6.93 | ||
Bezeq The Israel Telecommunication Corp. Ltd. | 4.88 | ||
Bank Hapoalim Ltd. | 4.75 | ||
Partner Communications Co. Ltd. | 3.16 | ||
NICE Systems Ltd. | 3.07 | ||
Elbit Systems Ltd. | 2.24 | ||
Cellcom Israel Ltd. | 2.18 | ||
TOTAL | 67.41 | % | |
FUND PERFORMANCE OVERVIEWS | 5 |
Table of Contents
Fund Performance Overview
iSHARES® MSCI MEXICO INVESTABLE MARKET INDEX FUND
Performance as of February 28, 2010
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 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, 2010, the total return for the Fund was 15.73%, while the total return for the Index was 13.70%.
Average Annual Total Returns | ||||||||||||||||
Year Ended 2/28/10 | Five Years Ended 2/28/10 | Ten Years Ended 2/28/10 | ||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||
107.25% | 107.83% | 104.33% | 14.57% | 14.40% | 13.93% | 12.55% | 12.59% | 12.50% | ||||||||
Cumulative Total Returns | ||||||||||||||||
Year Ended 2/28/10 | Five Years Ended 2/28/10 | Ten Years Ended 2/28/10 | ||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||
107.25% | 107.83% | 104.33% | 97.44% | 95.94% | 91.92% | 226.31% | 227.38% | 224.72% |
“Average Annual Total Returns” represent the average annual change in value of an investment over the period(s) indicated. “Cumulative Total Returns” represent the total change in value of an investment over the period(s) indicated.
Certain sectors and markets performed exceptionally well based on market conditions during the one-year period. Achieving such exceptional returns involves the risk of volatility and investors should not expect that such exceptional returns will be repeated.
The Fund’s per share net asset value or “NAV” 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 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 performance shown in the table(s) above assumes reinvestment of all dividends and capital gain distributions and does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption or sale of fund shares. The investment return and principal value of shares of the Fund will vary with changes in market conditions. Shares of the Fund may be worth more or less than their original cost when they are redeemed or sold in the market. The Fund’s past performance is no guarantee of future results.
PORTFOLIO ALLOCATION As of 2/28/10 | |||
Sector | Percentage of Net Assets | ||
Communications | 39.42 | % | |
Consumer Cyclical | 16.87 | ||
Basic Materials | 11.26 | ||
Consumer Non-Cyclical | 11.11 | ||
Industrial | 10.02 | ||
Financial | 7.05 | ||
Diversified | 4.17 | ||
Short-Term and Other Net Assets | 0.10 | ||
TOTAL | 100.00 | % | |
TEN LARGEST FUND HOLDINGS As of 2/28/10 | |||
Security | Percentage of Net Assets | ||
America Movil SAB de CV Series L | 23.06 | % | |
Wal-Mart de Mexico SAB de CV Series V | 9.82 | ||
Cemex SAB de CV CPO | 5.84 | ||
Grupo Mexico SAB de CV Series B | 4.78 | ||
Fomento Economico Mexicano SAB de CV BD Units | 4.47 | ||
Grupo Televisa SA CPO | 4.26 | ||
Telmex Internacional SAB de CV Series L | 3.81 | ||
Telefonos de Mexico SAB de CV Series L | 3.69 | ||
Grupo Financiero Banorte SAB de CV Series O | 3.51 | ||
Carso Global Telecom SAB de CV Series A1 | 2.93 | ||
TOTAL | 66.17 | % | |
6 | 2010 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Fund Performance Overview
iSHARES® MSCI SOUTH AFRICA INDEX FUND
Performance as of February 28, 2010
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, 2010, the total return for the Fund was 5.96%, while the total return for the Index was 6.31%.
Average Annual Total Returns | ||||||||||||||||
Year Ended 2/28/10 | Five Years Ended 2/28/10 | Inception to 2/28/10 | ||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||
80.64% | 80.42% | 82.33% | 9.33% | 9.19% | 10.55% | 18.86% | 18.72% | 20.22% | ||||||||
Cumulative Total Returns | ||||||||||||||||
Year Ended 2/28/10 | Five Years Ended 2/28/10 | Inception to 2/28/10 | ||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||
80.64% | 80.42% | 82.33% | 56.21% | 55.22% | 65.15% | 239.39% | 236.46% | 268.02% |
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.
Certain sectors and markets performed exceptionally well based on market conditions during the one-year period. Achieving such exceptional returns involves the risk of volatility and investors should not expect that such exceptional returns will be repeated.
The Fund’s per share net asset value or “NAV” is the value of one share of the Fund as calculated in accordance with the standard formula for valuing mutual fund shares. The NAV return is based on the NAV of the Fund and the market return is based on the market price per share of the Fund. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which shares of the Fund are listed for trading, as of the time that the Fund’s NAV is calculated. Since shares of the Fund did not trade in the secondary market until 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 performance shown in the table(s) above assumes reinvestment of all dividends and capital gain distributions and does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption or sale of fund shares. The investment return and principal value of shares of the Fund will vary with changes in market conditions. Shares of the Fund may be worth more or less than their original cost when they are redeemed or sold in the market. The Fund’s past performance is no guarantee of future results.
PORTFOLIO ALLOCATION As of 2/28/10 | |||
Sector | Percentage of Net Assets | ||
Basic Materials | 25.73 | % | |
Financial | 24.85 | ||
Communications | 18.71 | ||
Energy | 9.96 | ||
Consumer Cyclical | 6.12 | ||
Diversified | 5.76 | ||
Consumer Non-Cyclical | 5.48 | ||
Industrial | 3.25 | ||
Short-Term and Other Net Assets | 0.14 | ||
TOTAL | 100.00 | % | |
TEN LARGEST FUND HOLDINGS As of 2/28/10 | |||
Security | Percentage of Net Assets | ||
MTN Group Ltd. | 10.13 | % | |
Sasol Ltd. | �� | 9.96 | |
Standard Bank Group Ltd. | 7.72 | ||
Naspers Ltd. Class N | 6.81 | ||
Impala Platinum Holdings Ltd. | 6.20 | ||
AngloGold Ashanti Ltd. | 5.23 | ||
Gold Fields Ltd. | 3.66 | ||
FirstRand Ltd. | 3.15 | ||
Sanlam Ltd. | 3.08 | ||
Absa Group Ltd. | 2.64 | ||
TOTAL | 58.58 | % | |
FUND PERFORMANCE OVERVIEWS | 7 |
Table of Contents
Fund Performance Overview
iSHARES® MSCI TURKEY INVESTABLE MARKET INDEX FUND
Performance as of February 28, 2010
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, 2010, the total return for the Fund was 4.25%, while the total return for the Index was 4.66%.
Average Annual Total Returns | Cumulative Total Returns | |||||||||||||||
Year Ended 2/28/10 | Inception to 2/28/10 | Inception to 2/28/10 | ||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||
132.53% | 131.70% | 134.68% | 1.34% | 1.29% | 1.68% | 2.60% | 2.50% | 3.28% |
Total returns for the period since inception are calculated from the inception date of the Fund (3/26/08). “Average Annual Total Returns” represent the average annual change in value of an investment over the period(s) indicated. “Cumulative Total Returns” represent the total change in value of an investment over the period(s) indicated.
Certain sectors and markets performed exceptionally well based on market conditions during the one-year period. Achieving such exceptional returns involves the risk of volatility and investors should not expect that such exceptional returns will be repeated.
The Fund’s per share net asset value or “NAV” is the value of one share of the Fund as calculated in accordance with the standard formula for valuing mutual fund shares. The NAV return is based on the NAV of the Fund and the market return is based on the market price per share of the Fund. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which shares of the Fund are listed for trading, as of the time that the Fund’s NAV is calculated. Since shares of the Fund did not trade in the secondary market until 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 performance shown in the table(s) above assumes reinvestment of all dividends and capital gain distributions and does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption or sale of fund shares. The investment return and principal value of shares of the Fund will vary with changes in market conditions. Shares of the Fund may be worth more or less than their original cost when they are redeemed or sold in the market. The Fund’s past performance is no guarantee of future results.
PORTFOLIO ALLOCATION As of 2/28/10 | |||
Sector | Percentage of Net Assets | ||
Financial | 45.90 | % | |
Communications | 12.43 | ||
Consumer Non-Cyclical | 10.61 | ||
Diversified | 9.62 | ||
Consumer Cyclical | 5.86 | ||
Industrial | 5.86 | ||
Basic Materials | 4.76 | ||
Energy | 4.15 | ||
Utilities | 0.69 | ||
Short-Term and Other Net Assets | 0.12 | ||
TOTAL | 100.00 | % | |
TEN LARGEST FUND HOLDINGS As of 2/28/10 | |||
Security | Percentage of Net Assets | ||
Turkiye Garanti Bankasi AS | 14.18 | % | |
Turkcell Iletisim Hizmetleri AS | 8.25 | ||
Akbank TAS | 6.93 | ||
Turkiye Is Bankasi AS | 5.46 | ||
Turkiye Petrol Rafinerileri AS | 4.15 | ||
Anadolu Efes Biracilik ve Malt Sanayii AS | 3.74 | ||
Haci Omer Sabanci Holding AS | 3.63 | ||
Turkiye Halk Bankasi AS | 3.61 | ||
Yapi ve Kredi Bankasi AS | 3.42 | ||
Turkiye Vakiflar Bankasi TAO | 3.13 | ||
TOTAL | 56.50 | % | |
8 | 2010 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, 2009 to February 28, 2010.
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 (9/1/09) | Ending Account Value (2/28/10) | Annualized Expense Ratio | Expenses Paid During Perioda (9/1/09 to 2/28/10) | |||||
Brazil | |||||||||
Actual | $1,000.00 | $1,215.50 | 0.61 | % | $3.35 | ||||
Hypothetical (5% return | 1,000.00 | 1,021.80 | 0.61 | 3.06 | |||||
BRIC | |||||||||
Actual | 1,000.00 | 1,147.70 | 0.69 | 3.67 | |||||
Hypothetical (5% return | 1,000.00 | 1,021.40 | 0.69 | 3.46 | |||||
Canada | |||||||||
Actual | 1,000.00 | 1,100.50 | 0.54 | 2.81 | |||||
Hypothetical (5% return | 1,000.00 | 1,022.10 | 0.54 | 2.71 | |||||
Chile Investable Market | |||||||||
Actual | 1,000.00 | 1,266.90 | 0.61 | 3.43 | |||||
Hypothetical (5% return | 1,000.00 | 1,021.80 | 0.61 | 3.06 |
SHAREHOLDER EXPENSES | 9 |
Table of Contents
Shareholder Expenses (Unaudited) (Continued)
iSHARES®, INC.
iShares MSCI Index Fund | Beginning Account Value (9/1/09) | Ending Account Value (2/28/10) | Annualized Expense Ratio | Expenses Paid During Perioda (9/1/09 to 2/28/10) | |||||
Israel Capped Investable Market | |||||||||
Actual | $1,000.00 | $1,185.10 | 0.61 | % | $3.30 | ||||
Hypothetical (5% return | 1,000.00 | 1,021.80 | 0.61 | 3.06 | |||||
Mexico Investable Market | |||||||||
Actual | 1,000.00 | 1,157.30 | 0.54 | 2.89 | |||||
Hypothetical (5% return | 1,000.00 | 1,022.10 | 0.54 | 2.71 | |||||
South Africa | |||||||||
Actual | 1,000.00 | 1,059.60 | 0.61 | 3.12 | |||||
Hypothetical (5% return | 1,000.00 | 1,021.80 | 0.61 | 3.06 | |||||
Turkey Investable Market | |||||||||
Actual | 1,000.00 | 1,042.50 | 0.61 | 3.09 | |||||
Hypothetical (5% return | 1,000.00 | 1,021.80 | 0.61 | 3.06 |
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 | 2010 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited)
iSHARES® MSCI BRAZIL INDEX FUND
February 28, 2010
Security | Shares | Value | |||
COMMON STOCKS – 43.02% | |||||
AEROSPACE & DEFENSE – 0.54% | |||||
Empresa Brasileira de Aeronautica SA | 10,210,232 | $ | 55,430,203 | ||
55,430,203 | |||||
AGRICULTURE – 0.60% | |||||
Souza Cruz SA | 1,801,800 | 61,642,101 | |||
61,642,101 | |||||
BANKS – 3.04% | |||||
Banco do Brasil SA | 10,810,860 | 178,106,974 | |||
Banco Santander (Brasil) SA | 11,411,441 | 135,080,644 | |||
313,187,618 | |||||
BUILDING MATERIALS – 0.36% | |||||
Duratex SA | 3,903,900 | 37,159,424 | |||
37,159,424 | |||||
COMMERCIAL SERVICES – 1.94% | |||||
Cielo SA | 12,012,000 | 94,061,870 | |||
Companhia de Concessoes Rodoviarias | 3,903,900 | 82,420,468 | |||
Localiza Rent A Car SA | 2,102,100 | 22,917,194 | |||
199,399,532 | |||||
COSMETICS & PERSONAL CARE – 0.64% | |||||
Natura Cosmeticos SA | 3,603,600 | 66,408,345 | |||
66,408,345 | |||||
DIVERSIFIED FINANCIAL SERVICES – 2.60% | |||||
BM&F Bovespa SA | 25,525,500 | 167,250,647 | |||
Redecard SA | 6,906,900 | 100,526,547 | |||
267,777,194 | |||||
ELECTRIC – 1.54% | |||||
Centrais Eletricas Brasileiras SA | 4,504,599 | 58,332,937 | |||
CPFL Energia SA | 2,402,450 | 49,378,524 | |||
EDP Energias do Brasil SA | 1,201,200 | 23,432,374 | |||
Tractebel Energia SA | 2,402,400 | 27,533,870 | |||
158,677,705 | |||||
ENGINEERING & CONSTRUCTION – 0.20% | |||||
Multiplan Empreendimentos | |||||
Imobiliarios SA | 1,201,200 | 20,766,734 | |||
20,766,734 |
Security | Shares | Value | |||
FOOD – 2.51% | |||||
BRF – Brasil Foods SA | 6,306,375 | $ | 153,907,658 | ||
Cosan SA Industria e Comercioa | 2,102,190 | 27,385,475 | |||
JBS SA | 6,906,987 | 34,706,941 | |||
Marfrig Alimentos SA | 3,603,600 | 41,998,791 | |||
257,998,865 | |||||
FOREST PRODUCTS & PAPER – 0.64% | |||||
Fibria Celulose SAa | 3,603,626 | 65,710,834 | |||
65,710,834 | |||||
HOME BUILDERS – 0.56% | |||||
Brookfield Incorporacoes SA | 3,603,600 | 18,067,856 | |||
MRV Engenharia e Participacoes SA | 5,405,547 | 39,187,972 | |||
57,255,828 | |||||
INSURANCE – 0.23% | |||||
Porto Seguro SA | 2,402,400 | 23,997,410 | |||
23,997,410 | |||||
INTERNET – 0.24% | |||||
B2W Companhia Global do Varejo | 1,201,230 | 24,928,680 | |||
24,928,680 | |||||
IRON & STEEL – 3.43% | |||||
Companhia Siderurgica | |||||
Nacional SA | 7,807,827 | 255,579,949 | |||
Gerdau SA | 2,702,700 | 30,003,410 | |||
Usinas Siderurgicas de Minas Gerais SA | 2,402,400 | 68,070,216 | |||
353,653,575 | |||||
MINING – 7.28% | |||||
Vale SA SP ADRb | 26,906,880 | 749,625,677 | |||
749,625,677 | |||||
OIL & GAS – 11.73% | |||||
OGX Petroleo e Gas Participacoes SAa | 26,426,400 | 230,335,252 | |||
Petroleo Brasileiro SA | 45,645,644 | 977,579,647 | |||
1,207,914,899 | |||||
PHARMACEUTICALS – 0.28% | |||||
Hypermarcas SAa | 2,402,400 | 28,677,237 | |||
28,677,237 |
SCHEDULESOF INVESTMENTS | 11 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI BRAZIL INDEX FUND
February 28, 2010
Security | Shares | Value | |||
REAL ESTATE – 2.31% | |||||
BR Malls Participacoes SAa | 2,402,400 | $ | 31,243,165 | ||
Cyrela Brazil Realty SA | 6,006,000 | 74,950,360 | |||
Gafisa SA | 4,804,800 | 36,428,201 | |||
PDG Realty SA Empreendimentos e Participacoes | 7,807,800 | 69,868,360 | |||
Rossi Residencial SA | 3,303,300 | 25,812,173 | |||
238,302,259 | |||||
RETAIL – 0.44% | |||||
Lojas Renner SA | 2,102,100 | 45,392,331 | |||
45,392,331 | |||||
TELECOMMUNICATIONS – 0.48% | |||||
GVT (Holding) SAa | 600,603 | 18,609,719 | |||
Tele Norte Leste | |||||
Participacoes SA | 1,501,538 | 31,160,860 | |||
49,770,579 | |||||
TRANSPORTATION – 0.99% | |||||
ALL – America Latina | |||||
Logistica SA | 8,408,400 | 75,010,187 | |||
LLX Logistica SAa | 5,105,100 | 26,952,216 | |||
101,962,403 | |||||
WATER – 0.44% | |||||
Companhia de Saneamento | |||||
Basico do Estado de Sao Paulo | 2,702,700 | 45,393,993 | |||
45,393,993 | |||||
TOTAL COMMON STOCKS | |||||
(Cost: $2,766,169,753) | 4,431,033,426 | ||||
PREFERRED STOCKS – 56.29% | |||||
AIRLINES – 0.51% | |||||
GOL Linhas Aereas Inteligentes SAa | 1,801,800 | 24,479,352 | |||
TAM SA | 1,501,500 | 27,828,022 | |||
52,307,374 | |||||
BANKS – 13.43% | |||||
Banco Bradesco SA | 29,069,040 | 501,107,137 | |||
Banco do Estado do Rio Grande do Sul SA | 4,804,810 | 38,528,886 | |||
Itau Unibanco Holding SA | 41,741,749 | 843,150,990 | |||
1,382,787,013 |
Security | Shares | Value | |||
BEVERAGES – 3.09% | |||||
Companhia de Bebidas das Americas | 3,303,380 | $ | 318,126,280 | ||
318,126,280 | |||||
CHEMICALS – 1.14% | |||||
Braskem SA Class Aa | 3,303,336 | 23,362,830 | |||
Fertilizantes Fosfatados SAa | 2,702,780 | 26,773,526 | |||
Ultrapar Participacoes SA | 1,501,500 | 66,973,381 | |||
117,109,737 | |||||
ELECTRIC – 3.39% | |||||
AES Tiete SA | 2,157,600 | 22,686,442 | |||
Centrais Eletricas Brasileiras SA Class B | 3,903,900 | 61,982,784 | |||
Companhia de Transmissao de Energia Eletrica Paulista | 911,176 | 24,430,812 | |||
Companhia Energetica de Minas Gerais | 6,906,932 | 113,561,123 | |||
Companhia Energetica de Sao Paulo Class B | 3,603,670 | 46,367,088 | |||
Companhia Paranaense de Energia Class B | 2,102,100 | 42,809,784 | |||
Eletropaulo Metropolitana Electricidade de Sao Paulo SA Class B | 1,801,820 | 37,412,444 | |||
349,250,477 | |||||
FOOD – 0.59% | |||||
Companhia Brasileira de Distribuicao Grupo Pao de Acucar | 1,801,828 | 61,224,261 | |||
61,224,261 | |||||
FOREST PRODUCTS & PAPER – 0.64% | |||||
Klabin SA | 13,513,500 | 35,522,482 | |||
Suzano Bahia Sul Papel e Celulose SA | 3,003,085 | 30,911,666 | |||
66,434,148 | |||||
HOLDING COMPANIES – DIVERSIFIED – 2.87% | |||||
Itausa - Investimentos Itau SA | 46,246,236 | 295,853,065 | |||
295,853,065 | |||||
INVESTMENT COMPANIES – 1.15% | |||||
Bradespar SA | 5,405,400 | 117,949,597 | |||
117,949,597 |
12 | 2010 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI BRAZIL INDEX FUND
February 28, 2010
Security | Shares | Value | |||
IRON & STEEL – 4.34% | |||||
Gerdau SA | 13,513,546 | $ | 197,804,810 | ||
Metalurgica Gerdau SA | 5,705,790 | 103,727,284 | |||
Usinas Siderurgicas de Minas Gerais SA Class A | 5,105,100 | 144,988,230 | |||
446,520,324 | |||||
MEDIA – 0.43% | |||||
Net Servicos de Comunicacao SAa | 3,603,682 | 44,313,123 | |||
44,313,123 | |||||
MINING – 9.83% | |||||
Vale SA Class A | 41,141,100 | 1,012,020,971 | |||
1,012,020,971 | |||||
OIL & GAS – 11.67% | |||||
Petroleo Brasileiro SA | 62,762,750 | 1,202,113,325 | |||
1,202,113,325 | |||||
RETAIL – 0.50% | |||||
Lojas Americanas SA | 7,207,200 | 51,850,360 | |||
51,850,360 | |||||
TELECOMMUNICATIONS – 2.71% | |||||
Brasil Telecom SAa | 7,507,515 | 51,601,182 | |||
Tele Norte Leste Participacoes SA | 5,405,439 | 93,630,460 | |||
Telemar Norte Leste SA Class A | 300,300 | 8,591,870 | |||
TIM Participacoes SA | 12,612,619 | 35,876,514 | |||
Vivo Participacoes SA | 3,303,380 | 89,759,800 | |||
279,459,826 | |||||
TOTAL PREFERRED STOCKS | |||||
(Cost: $3,267,194,064) | 5,797,319,881 | ||||
SHORT-TERM INVESTMENTS – 0.17% | |||||
MONEY MARKET FUNDS – 0.17% | |||||
BlackRock Cash Funds: | 15,601,562 | 15,601,562 | |||
BlackRock Cash Funds: | 2,507,338 | 2,507,338 |
Security | Shares | Value | |||
BlackRock Cash Funds: | 8,358 | $ | 8,358 | ||
18,117,258 | |||||
TOTAL SHORT-TERM INVESTMENTS | |||||
(Cost: $18,117,258) | 18,117,258 | ||||
TOTAL INVESTMENTS IN SECURITIES – 99.48% | |||||
(Cost: $6,051,481,075) | 10,246,470,565 | ||||
Other Assets, Less Liabilities – 0.52% | 53,194,696 | ||||
NET ASSETS – 100.00% | $ | 10,299,665,261 | |||
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 | 13 |
Table of Contents
Schedule of Investments (Unaudited)
iSHARES® MSCI BRIC INDEX FUND
February 28, 2010
Security | Shares | Value | |||
COMMON STOCKS – 79.44% | |||||
BRAZIL – 14.32% | |||||
ALL – America Latina Logistica SA | 268,100 | $ | 2,391,683 | ||
B2W Companhia Global do Varejo | 38,300 | 794,826 | |||
Banco do Brasil SA | 229,800 | 3,785,914 | |||
Banco Santander (Brasil) SA | 268,137 | 3,174,018 | |||
BM&F Bovespa SA | 689,469 | 4,517,605 | |||
BR Malls Participacoes SAa | 76,600 | 996,182 | |||
BRF - Brasil Foods SA | 114,900 | 2,804,145 | |||
Centrais Eletricas Brasileiras SA | 153,200 | 1,983,885 | |||
Cielo SA | 297,600 | 2,330,404 | |||
Companhia de Concessoes Rodoviarias | 114,900 | 2,425,808 | |||
Companhia Siderurgica Nacional SA | 229,800 | 7,522,230 | |||
Cosan SA Industria e Comercioa | 76,600 | 997,877 | |||
CPFL Energia SA | 76,600 | 1,574,391 | |||
Cyrela Brazil Realty SA | 153,200 | 1,911,821 | |||
Duratex SA | 114,900 | 1,093,680 | |||
Empresa Brasileira de Aeronautica SA | 306,400 | 1,663,411 | |||
Fibria Celulose SAa | 126,041 | 2,298,313 | |||
Gafisa SA | 153,200 | 1,161,505 | |||
Gerdau SA | 153,200 | 1,700,715 | |||
GVT (Holding) SAa | 38,300 | 1,186,728 | |||
Hypermarcas SAa | 71,300 | 851,102 | |||
JBS SA | 229,852 | 1,154,984 | |||
LLX Logistica SAa | 153,200 | 808,815 | |||
Marfrig Alimentos SA | 114,900 | 1,339,122 | |||
MRV Engenharia e Participacoes SA | 191,500 | 1,388,296 | |||
Multiplan Empreendimentos Imobiliarios SA | 38,300 | 662,143 | |||
OGX Petroleo e Gas Participacoes SAa | 421,300 | 3,672,095 | |||
PDG Realty SA Empreendimentos e Participacoes | 153,200 | 1,370,915 | |||
Petroleo Brasileiro SA | 1,263,900 | 27,068,581 | |||
Redecard SA | 191,500 | 2,787,189 | |||
Rossi Residencial SA | 114,900 | 897,835 | |||
Souza Cruz SA | 76,600 | 2,620,593 | |||
Tele Norte Leste Participacoes SA | 38,300 | 794,826 | |||
Tractebel Energia SA | 114,900 | 1,316,867 |
Security | Shares | Value | |||
Usinas Siderurgicas de | |||||
Minas Gerais SA | 76,600 | $ | 2,170,404 | ||
Vale SA | 804,300 | 22,455,415 | |||
117,674,323 | |||||
CHINA – 37.24% | |||||
Agile Property Holdings Ltd. | 1,532,000 | 1,957,588 | |||
Air China Ltd. Class Ha | 2,298,000 | 2,003,962 | |||
Alibaba.com Ltd.b | 766,000 | 1,677,369 | |||
Aluminum Corp. of China Ltd. Class Ha,b | 2,298,000 | 2,223,007 | |||
Angang New Steel Co. Ltd. Class H | 766,000 | 1,410,963 | |||
Anhui Conch Cement Co. Ltd. Class Hb | 38,000 | 225,161 | |||
Anta Sports Products Ltd. | 383,040 | 550,629 | |||
Bank of China Ltd. Class H | 32,172,000 | 15,623,209 | |||
Bank of Communications Co. Ltd. Class H | 3,447,000 | 3,791,840 | |||
BBMG Corp. Class Ha | 383,000 | 374,941 | |||
Beijing Capital International Airport Co. Ltd. Class Ha,b | 766,000 | 419,342 | |||
Belle International Holdings Ltd. | 2,681,000 | 2,987,196 | |||
BYD Co. Ltd. Class Ha,b | 383,000 | 2,964,996 | |||
Chaoda Modern Agriculture (Holdings) Ltd. | 970,556 | 1,050,149 | |||
China Agri-Industries Holdings Ltd.b | 1,532,000 | 2,198,340 | |||
China CITIC Bank Class H | 3,064,000 | 2,048,363 | |||
China Coal Energy Co. Class H | 2,298,000 | 3,664,557 | |||
China Communications Construction Co. Ltd. | 2,681,000 | 2,507,173 | |||
China Construction Bank Corp. Class H | 21,448,000 | 16,217,195 | |||
China COSCO Holdings Co. Ltd. Class Hb | 1,723,500 | 2,146,785 | |||
China Dongxiang (Group) Co. Ltd. | 2,298,000 | 1,539,232 | |||
China Everbright Ltd. | 766,000 | 1,858,919 | |||
China High Speed Transmission Equipment Group Co. Ltd.b | 766,000 | 1,470,164 | |||
China Life Insurance Co. Ltd. Class H | 4,213,000 | 18,695,261 | |||
China Longyuan Power Group Corp. Ltd. Class Ha | 766,000 | 934,393 |
14 | 2010 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI BRIC INDEX FUND
February 28, 2010
Security | Shares | Value | |||
China Mengniu Dairy Co. Ltd.a | 766,000 | $ | 2,284,181 | ||
China Merchants Bank Co. Ltd. Class H | 2,106,900 | 5,188,988 | |||
China Merchants Holdings (International) Co. Ltd.b | 766,000 | 2,757,791 | |||
China Minsheng Banking Corp. Ltd. Class Ha | 1,340,500 | 1,396,903 | |||
China Mobile Ltd.b | 3,255,500 | 32,121,610 | |||
China National Building Material Co. Ltd. | 766,000 | 1,318,215 | |||
China Oilfield Services Ltd. | 1,532,000 | 2,107,565 | |||
China Overseas Land & Investment Ltd. | 2,298,800 | 4,660,760 | |||
China Pacific Insurance (Group) Co. Ltd. Class Ha | 153,200 | 626,547 | |||
China Petroleum & Chemical Corp. Class H | 9,192,000 | 7,210,712 | |||
China Railway Construction Corp. Class H | 1,532,000 | 2,016,789 | |||
China Railway Group Ltd. | 2,298,000 | 1,719,796 | |||
China Resources Enterprise Ltd. | 766,000 | 2,703,524 | |||
China Resources Land Ltd.b | 1,532,000 | 3,188,974 | |||
China Resources Power Holdings Co. Ltd. | 800,200 | 1,589,402 | |||
China Shenhua Energy Co. Ltd. Class H | 1,723,500 | 7,414,956 | |||
China Shipping Container Lines Co. Ltd. Class Ha | 2,298,000 | 917,619 | |||
China Shipping Development Co. Ltd. Class Hb | 766,000 | 1,304,401 | |||
China South Locomotive and Rolling Stock Corp. Ltd. | 766,000 | 534,785 | |||
China Taiping Insurance Holdings Co. Ltd.a | 383,000 | 1,188,958 | |||
China Telecom Corp. Ltd. Class H | 6,140,000 | 2,696,954 | |||
China Unicom (Hong Kong) Ltd. | 3,091,900 | 3,707,882 | |||
China Yurun Food Group Ltd. | 766,000 | 2,279,248 | |||
China Zhongwang Holdings Ltd.a,b | 738,000 | 635,965 | |||
CITIC Pacific Ltd. | 766,000 | 1,708,943 | |||
CNOOC Ltd. | 9,192,000 | 14,492,465 |
Security | Shares | Value | |||
CNPC (Hong Kong) Ltd. | 3,830,000 | $ | 4,824,902 | ||
Denway Motors Ltd. | 3,830,000 | 2,141,112 | |||
Dongfeng Motor Group Co. Ltd. Class H | 1,532,000 | 2,222,020 | |||
Fosun International Ltd.b | 2,489,500 | 1,872,733 | |||
Franshion Properties (China) Ltd. | 2,298,000 | 742,976 | |||
Fushan International Energy Group Ltd. | 2,298,000 | 2,048,363 | |||
Geely Automobile Holdings Ltd.b | 3,830,000 | 1,924,040 | |||
GOME Electrical Appliances Holdings Ltd.a | 3,830,400 | 1,203,884 | |||
Greentown China Holdings Ltd. | 191,500 | 254,072 | |||
Guangdong Investment Ltd. | 2,298,000 | 1,166,264 | |||
Guangzhou R&F Properties Co. Ltd. Class Hb | 766,000 | 1,136,664 | |||
Harbin Power Equipment Co. Ltd. Class H | 766,000 | 616,680 | |||
Hengan International Group Co. Ltd. | 766,000 | 5,263,977 | |||
Hidili Industry International Development Ltd.a | 1,149,000 | 1,231,386 | |||
Hopson Development Holdings Ltd. | 766,000 | 1,071,543 | |||
Huaneng Power International Inc. Class Hb | 1,492,000 | 897,504 | |||
Industrial and Commercial Bank of China Ltd. Class H | 25,278,000 | 17,875,816 | |||
Jiangsu Expressway Co. Ltd. Class H | 1,532,000 | 1,422,803 | |||
Jiangxi Copper Co. Ltd. Class Hb | 1,149,000 | 2,335,489 | |||
Kingboard Chemical Holdings Co. Ltd. | 191,500 | 858,418 | |||
Lenovo Group Ltd. | 2,298,000 | 1,494,831 | |||
Li Ning Co. Ltd.b | 766,000 | 2,392,717 | |||
Maanshan Iron & Steel Co. Ltd. Class Ha,b | 1,532,000 | 919,593 | |||
Metallurgical Corp. of China Ltd. Class Ha,b | 766,000 | 438,089 | |||
Nine Dragons Paper (Holdings) Ltd. | 766,000 | 1,114,957 | |||
Parkson Retail Group Ltd.b | 574,500 | 951,660 | |||
PetroChina Co. Ltd. Class H | 11,490,000 | 12,831,870 | |||
PICC Property and Casualty Co. Ltd. Class Ha,b | 1,532,000 | 1,385,309 |
SCHEDULESOF INVESTMENTS | 15 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI BRIC INDEX FUND
February 28, 2010
Security | Shares | Value | |||
Ping An Insurance (Group) Co. of China Ltd. Class H | 634,000 | $ | 4,834,614 | ||
Poly (Hong Kong) Investments Ltd. | 1,169,984 | 1,409,102 | |||
Shanghai Electric Group Co. Ltd. Class H | 2,298,000 | 1,038,982 | |||
Shanghai Industrial Holdings Ltd. | 383,000 | 1,645,301 | |||
Shimao Property Holdings Ltd. | 1,149,000 | 1,915,160 | |||
Shui On Land Ltd. | 2,681,000 | 1,301,934 | |||
Sinofert Holdings Ltd.b | 1,532,000 | 858,418 | |||
Sino-Ocean Land Holdings Ltd. | 2,489,500 | 2,199,820 | |||
Sinopharm Group Co. Ltd. Class Ha | 153,200 | 689,695 | |||
Soho China Ltd. | 1,915,000 | 942,286 | |||
Tencent Holdings Ltd. | 421,300 | 8,259,561 | |||
Tingyi (Cayman Islands) Holding Corp. | 1,532,000 | 3,556,022 | |||
Yanzhou Coal Mining Co. Ltd. Class H | 1,532,000 | 3,240,282 | |||
Zhejiang Expressway Co. Ltd. Class H | 1,532,000 | 1,385,309 | |||
Zijin Mining Group Co. Ltd. Class H | 2,022,000 | 1,729,418 | |||
305,960,243 | |||||
INDIA – 14.52% | |||||
Dr. Reddy’s Laboratories Ltd. SP ADRb | 403,299 | 9,925,188 | |||
HDFC Bank Ltd. SP ADRb | 169,669 | 20,647,021 | |||
ICICI Bank Ltd. SP ADR | 440,833 | 16,861,862 | |||
Infosys Technologies Ltd. SP ADR | 443,514 | 25,235,947 | |||
Mahanagar Telephone Nigam Ltd. SP ADRb | 290,831 | 898,668 | |||
Reliance Industries Ltd. SP GDRc | 607,438 | 25,755,371 | |||
Satyam Computer Services Ltd. SP ADRa | 875,921 | 4,642,381 | |||
Tata Communications Ltd. SP ADR | 93,069 | 1,154,056 | |||
Wipro Ltd. SP ADRb | 655,696 | 14,176,148 | |||
119,296,642 | |||||
RUSSIA – 13.36% | |||||
Cherepovets MK Severstal SP GDRa,d | 207,203 | 2,507,156 | |||
JSC MMC Norilsk Nickel SP ADRa | 527,008 | 7,952,551 | |||
LUKOIL SP ADR | 287,633 | 15,100,732 |
Security | Shares | Value | |||
Mechel OAO SP ADR | 93,069 | $ | 2,140,587 | ||
Mobile TeleSystems SP ADR | 114,900 | 6,015,015 | |||
Novolipetsk Steel SP GDRa,d | 68,174 | 2,106,577 | |||
OAO Gazprom SP ADR | 1,323,768 | 29,440,600 | |||
OAO NovaTek SP GDRd | 56,684 | 3,616,439 | |||
OAO Tatneft SP ADR | 140,979 | 4,291,401 | |||
OAO TMK SP GDRa,d | 53,237 | 947,619 | |||
OJSC Comstar United Telesystems SP GDR | 160,860 | 932,988 | |||
OJSC Rosneft Oil Co. SP GDR | 767,943 | 5,928,520 | |||
Pharmstandard SP GDRa,d | 58,599 | 1,213,585 | |||
Polyus Gold SP ADR | 86,558 | 2,350,915 | |||
Sberbank GDRd | 43,662 | 11,857,521 | |||
Sistema JSFC SP GDRa,d | 72,387 | 1,845,868 | |||
Surgutneftegaz SP ADR | 409,810 | 3,348,148 | |||
Uralkali SP GDRa,d | 67,408 | 1,412,198 | |||
Vimpel-Communications SP ADR | 199,926 | 3,708,627 | |||
VTB Bank OJSC SP GDRd | 378,787 | 1,825,753 | |||
Wimm-Bill-Dann Foods OJSC SP ADRa | 58,216 | 1,192,264 | |||
109,735,064 | |||||
TOTAL COMMON STOCKS | |||||
(Cost: $621,383,094) | 652,666,272 | ||||
PREFERRED STOCKS – 20.23% | |||||
BRAZIL – 20.23% | |||||
AES Tiete SA | 38,300 | 402,712 | |||
Banco Bradesco SA | 1,010,960 | 17,427,451 | |||
Banco do Estado do Rio Grande do Sul SA | 38,300 | 307,120 | |||
Bradespar SA | 153,200 | 3,342,931 | |||
Brasil Telecom SAa | 145,698 | 1,001,422 | |||
Braskem SA Class Aa | 114,900 | 812,630 | |||
Centrais Eletricas Brasileiras SA Class B | 114,900 | 1,824,284 | |||
Companhia de Bebidas das Americas | 114,995 | 11,074,394 | |||
Companhia de Transmissao de Energia Eletrica Paulista | 38,471 | 1,031,500 | |||
Companhia Energetica de Minas Gerais | 191,903 | 3,155,195 |
16 | 2010 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI BRIC INDEX FUND
February 28, 2010
Security | Shares | Value | |||
Companhia Energetica de Sao Paulo Class B | 114,900 | $ | 1,478,376 | ||
Companhia Paranaense de Energia Class B | 76,600 | 1,559,978 | |||
Eletropaulo Metropolitana Electricidade de Sao Paulo SA Class B | 38,300 | 795,250 | |||
Fertilizantes Fosfatados SAa | 76,620 | 758,992 | |||
Gerdau SA | 421,300 | 6,166,787 | |||
GOL Linhas Aereas Inteligentes SAa | 38,300 | 520,346 | |||
Itau Unibanco Holding SA | 1,149,067 | 23,210,263 | |||
Itausa – Investimentos Itau SA | 1,389,973 | 8,892,135 | |||
Klabin SA | 229,800 | 604,068 | |||
Lojas Americanas SA | 229,800 | 1,653,237 | |||
Metalurgica Gerdau SA | 160,000 | 2,908,688 | |||
Net Servicos de Comunicacao SAa | 115,240 | 1,417,063 | |||
Petroleo Brasileiro SA | 1,761,800 | 33,744,271 | |||
TAM SA | 38,300 | 709,832 | |||
Tele Norte Leste Participacoes SA | 153,200 | 2,653,658 | |||
Telemar Norte Leste SA Class A | 38,300 | 1,095,800 | |||
TIM Participacoes SA | 344,857 | 980,943 | |||
Usinas Siderurgicas de Minas Gerais SA Class A | 155,350 | 4,412,043 | |||
Vale SA Class A | 1,225,600 | 30,148,268 | |||
Vivo Participacoes SA | 78,919 | 2,144,396 | |||
166,234,033 | |||||
TOTAL PREFERRED STOCKS | |||||
(Cost: $149,656,959) | 166,234,033 | ||||
SHORT-TERM INVESTMENTS – 4.44% | |||||
MONEY MARKET FUNDS – 4.44% | |||||
BlackRock Cash Funds: | 31,308,952 | 31,308,952 | |||
BlackRock Cash Funds: | 5,031,684 | 5,031,684 | |||
BlackRock Cash Funds: | 116,489 | 116,489 | |||
36,457,125 | |||||
Value | ||||||
TOTAL SHORT-TERM INVESTMENTS |
| |||||
(Cost: $36,457,125) | $ | 36,457,125 | ||||
TOTAL INVESTMENTS IN |
| |||||
(Cost: $807,497,178) | 855,357,430 | |||||
Other Assets, Less Liabilities – (4.11)% | (33,777,045 | ) | ||||
NET ASSETS – 100.00% | $ | 821,580,385 | ||||
GDR – Global Depositary Receipts
SP ADR – Sponsored American Depositary Receipts
SP GDR – Sponsored Global Depositary Receipts
a | Non-income earning security. |
b | All or a portion of this security represents a security on loan. See Note 5. |
c | This security may be resold to qualified institutional buyers under Rule 144A of the Securities Act of 1933. |
d | This security may be resold to qualified foreign investors and foreign institutional buyers under Regulation S 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.
SCHEDULESOF INVESTMENTS | 17 |
Table of Contents
Schedule of Investments (Unaudited)
iSHARES® MSCI CANADA INDEX FUND
February 28, 2010
Security | Shares | Value | |||
COMMON STOCKS – 99.82% | |||||
ADVERTISING – 0.22% | |||||
Groupe Aeroplan Inc. | 592,683 | $ | 6,639,261 | ||
6,639,261 | |||||
AEROSPACE & DEFENSE – 0.21% | |||||
CAE Inc. | 754,754 | 6,362,513 | |||
6,362,513 | |||||
APPAREL – 0.26% | |||||
Gildan Activewear Inc.a | 337,139 | 7,913,732 | |||
7,913,732 | |||||
AUTO PARTS & EQUIPMENT – 0.58% | |||||
Magna International Inc. Class A | 313,043 | 17,770,547 | |||
17,770,547 | |||||
BANKS – 23.15% | |||||
Bank of Montreal | 1,624,429 | 86,066,535 | |||
Bank of Nova Scotia | 3,018,219 | 136,497,344 | |||
Canadian Imperial Bank of Commerce | 1,130,443 | 74,878,012 | |||
National Bank of Canada | 474,383 | 27,041,559 | |||
Royal Bank of Canada | 4,137,266 | 222,373,889 | |||
Toronto-Dominion Bank (The) | 2,530,951 | 161,011,538 | |||
707,868,877 | |||||
CHEMICALS – 4.10% | |||||
Agrium Inc. | 462,417 | 29,811,339 | |||
Potash Corp. of Saskatchewan Inc. | 871,128 | 95,606,082 | |||
125,417,421 | |||||
COMMERCIAL SERVICES – 0.19% | |||||
Ritchie Bros. Auctioneers Inc.b | 279,188 | 5,829,679 | |||
5,829,679 | |||||
COMPUTERS – 3.83% | |||||
CGI Group Inc. Class Aa | 760,114 | 10,643,538 | |||
Research In Motion Ltd.a | 1,508,173 | 106,376,174 | |||
117,019,712 | |||||
DIVERSIFIED FINANCIAL SERVICES – 0.97% | |||||
CI Financial Corp. | 476,749 | 9,427,176 | |||
IGM Financial Inc. | 349,483 | 14,218,051 | |||
TMX Group Inc. | 218,855 | 5,994,467 | |||
29,639,694 |
Security | Shares | Value | |||
ELECTRIC – 0.86% | |||||
Fortis Inc. | 502,775 | $ | 12,971,923 | ||
TransAlta Corp. | 643,357 | 13,354,702 | |||
26,326,625 | |||||
ENGINEERING & CONSTRUCTION – 0.68% | |||||
SNC-Lavalin Group Inc. | 443,886 | 20,683,462 | |||
20,683,462 | |||||
FOOD – 1.62% | |||||
Empire Co. Ltd. Class A | 85,176 | 3,941,490 | |||
George Weston Ltd. | 152,607 | 9,953,855 | |||
Loblaw Companies Ltd. | 324,386 | 11,324,891 | |||
Metro Inc. Class A | 317,962 | 12,264,829 | |||
Saputo Inc. | 427,063 | 12,141,769 | |||
49,626,834 | |||||
FOREST PRODUCTS & PAPER – 0.45% | |||||
Sino-Forest Corp. Class Aa | 706,251 | 13,677,996 | |||
13,677,996 | |||||
GAS – 0.34% | |||||
Canadian Utilities Ltd. Class A | 247,247 | 10,442,411 | |||
10,442,411 | |||||
HAND & MACHINE TOOLS – 0.27% | |||||
Finning International Inc. | 500,729 | 8,337,982 | |||
8,337,982 | |||||
HOLDING COMPANIES – DIVERSIFIED – 1.60% | |||||
Brookfield Asset Management | 1,515,989 | 35,828,947 | |||
Onex Corp. | 284,482 | 6,823,046 | |||
Sherritt International Corp. | 871,414 | 6,125,745 | |||
48,777,738 | |||||
INSURANCE – 8.42% | |||||
Fairfax Financial Holdings Ltd. | 57,553 | 19,663,692 | |||
Genworth MI Canada Inc. | 155,416 | 4,006,893 | |||
Great-West Lifeco Inc. | 836,381 | 21,420,913 | |||
Industrial Alliance Insurance and Financial Services Inc. | 236,600 | 7,425,159 | |||
Intact Financial Corp. | 353,921 | 14,137,419 | |||
Manulife Financial Corp. | 5,166,287 | 94,385,734 | |||
Power Corp. of Canada | 1,022,073 | 28,110,755 | |||
Power Financial Corp. | 727,149 | 21,354,563 | |||
Sun Life Financial Inc. | 1,654,723 | 46,966,924 | |||
257,472,052 |
18 | 2010 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI CANADA INDEX FUND
February 28, 2010
Security | Shares | Value | |||
IRON & STEEL – 0.10% | |||||
Gerdau Ameristeel Corp. | 448,357 | $ | 3,147,556 | ||
3,147,556 | |||||
MANUFACTURING – 0.74% | |||||
Bombardier Inc. Class B | 4,230,813 | 22,776,220 | |||
22,776,220 | |||||
MEDIA – 3.50% | |||||
Rogers Communications Inc. | 1,378,923 | 45,231,336 | |||
Shaw Communications Inc. | 1,036,456 | 19,582,787 | |||
Thomson Reuters Corp. | 1,099,197 | 37,979,729 | |||
Yellow Pages Income Fund | 751,205 | 4,157,765 | |||
106,951,617 | |||||
MINING – 15.16% | |||||
Agnico-Eagle Mines Ltd. | 460,173 | �� | 26,453,580 | ||
Barrick Gold Corp. | 2,894,911 | 108,598,535 | |||
Cameco Corp. | 1,155,898 | 31,605,518 | |||
Eldorado Gold Corp.a | 1,569,457 | 19,734,220 | |||
First Quantum Minerals Ltd. | 236,046 | 18,312,855 | |||
Franco-Nevada Corp. | 336,827 | 8,725,411 | |||
Goldcorp Inc. | 2,157,568 | 81,285,168 | |||
IAMGOLD Corp. | 1,029,210 | 15,073,722 | |||
Inmet Mining Corp. | 149,058 | 8,089,282 | |||
Ivanhoe Mines Ltd.a | 752,388 | 11,966,169 | |||
Kinross Gold Corp. | 2,048,811 | 36,965,633 | |||
Pan American Silver Corp. | 300,482 | 6,410,775 | |||
Silver Wheaton Corp.a | 953,641 | 14,490,254 | |||
Teck Resources Ltd. Class Ba | 1,449,660 | 53,078,993 | |||
Yamana Gold Inc. | 2,158,802 | 22,691,982 | |||
463,482,097 | |||||
OIL & GAS – 20.94% | |||||
ARC Energy Trust | 366,992 | 7,621,434 | |||
Canadian Natural Resources Ltd. | 1,596,651 | 107,072,825 | |||
Canadian Oil Sands Trust | 700,336 | 18,519,695 | |||
Cenovus Energy Inc. | 2,208,757 | 53,706,471 | |||
Crescent Point Energy Corp. | 534,017 | 19,704,492 | |||
EnCana Corp. | 2,209,042 | 72,084,638 | |||
Enerplus Resources Fund | 519,477 | 11,589,259 | |||
Ensign Energy Services Inc. | 384,475 | 5,478,210 | |||
Husky Energy Inc. | 752,388 | 19,162,955 |
Security | Shares | Value | |||
Imperial Oil Ltd. | 873,461 | $ | 32,022,909 | ||
Nexen Inc. | 1,537,012 | 34,537,145 | |||
Niko Resources Ltd. | 131,309 | 12,423,388 | |||
Penn West Energy Trust | 1,236,541 | 25,235,053 | |||
PetroBakken Energy Ltd. Class A | 200,504 | 5,349,556 | |||
Petrobank Energy and | 261,024 | 13,446,953 | |||
Progress Energy Resources Corp. | 464,919 | 5,603,925 | |||
Provident Energy Trust | 773,682 | 6,060,918 | |||
Suncor Energy Inc. | 4,589,803 | 132,055,357 | |||
Talisman Energy Inc. | 2,999,087 | 54,564,968 | |||
Vermilion Energy Trust | 116,787 | 3,847,413 | |||
640,087,564 | |||||
OIL & GAS SERVICES – 0.16% | |||||
Trican Well Service Ltd. | 370,279 | 4,774,968 | |||
4,774,968 | |||||
PHARMACEUTICALS – 0.20% | |||||
Biovail Corp. | 416,627 | 6,137,360 | |||
6,137,360 | |||||
PIPELINES – 3.69% | |||||
Enbridge Inc. | 1,052,786 | 46,456,255 | |||
TransCanada Corp. | 2,013,022 | 66,240,508 | |||
112,696,763 | |||||
REAL ESTATE – 0.40% | |||||
Brookfield Properties Corp. | 885,024 | 12,350,730 | |||
12,350,730 | |||||
REAL ESTATE INVESTMENT TRUSTS – 0.20% | |||||
RioCan Real Estate | 339,089 | 6,111,590 | |||
6,111,590 | |||||
RETAIL – 1.95% | |||||
Alimentation Couche-Tard Inc. | |||||
Class B | 363,181 | 6,755,417 | |||
Canadian Tire Corp. Ltd. Class A | 230,685 | 11,469,319 | |||
Shoppers Drug Mart Corp. | 608,329 | 25,324,259 | |||
Tim Hortons Inc. | 530,992 | 16,046,061 | |||
59,595,056 | |||||
SOFTWARE – 0.27% | |||||
Open Text Corp.a | 166,803 | 8,141,697 | |||
8,141,697 |
SCHEDULESOF INVESTMENTS | 19 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI CANADA INDEX FUND
February 28, 2010
Security | Shares | Value | ||||
TELECOMMUNICATIONS – 1.29% | ||||||
BCE Inc. | 743,807 | $ | 20,548,904 | |||
TELUS Corp. | 173,158 | 5,656,981 | ||||
TELUS Corp. NVS | 421,148 | 13,192,876 | ||||
39,398,761 | ||||||
TRANSPORTATION – 3.47% |
| |||||
Canadian National Railway Co. | 1,384,312 | 72,427,696 | ||||
Canadian Pacific Railway Ltd. | 495,380 | 23,804,674 | ||||
Viterra Inc.a | 1,089,233 | 10,016,883 | ||||
106,249,253 | ||||||
TOTAL COMMON STOCKS |
| |||||
(Cost: $3,280,053,533) | 3,051,707,768 | |||||
SHORT-TERM INVESTMENTS – 0.21% |
| |||||
MONEY MARKET FUNDS – 0.21% |
| |||||
BlackRock Cash Funds: | 4,601,717 | 4,601,717 | ||||
BlackRock Cash Funds: | 739,545 | 739,545 | ||||
BlackRock Cash Funds: | 1,132,114 | 1,132,114 | ||||
6,473,376 | ||||||
TOTAL SHORT-TERM INVESTMENTS |
| |||||
(Cost: $6,473,376) | 6,473,376 | |||||
TOTAL INVESTMENTS IN |
| |||||
(Cost: $3,286,526,909) | 3,058,181,144 | |||||
Other Assets, Less Liabilities – (0.03)% | (889,367 | ) | ||||
NET ASSETS – 100.00% | $ | 3,057,291,777 | ||||
NVS – Non-Voting Shares
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.
20 | 2010 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited)
iSHARES® MSCI CHILE INVESTABLE MARKET INDEX FUND
February 28, 2010
Security | Shares | Value | |||
COMMON STOCKS – 99.79% | |||||
AIRLINES – 4.56% | |||||
LAN Airlines SA | 1,002,864 | $ | 17,186,468 | ||
17,186,468 | |||||
APPAREL – 0.23% | |||||
Forus SA | 614,884 | 883,031 | |||
883,031 | |||||
BANKS – 8.87% | |||||
Banco de Credito e Inversiones | 257,448 | 9,316,931 | |||
Banco Santander Chile SA | 299,270,312 | 18,566,507 | |||
CorpBanca SA | 651,699,248 | 5,565,493 | |||
33,448,931 | |||||
BEVERAGES – 4.22% | |||||
Compania Cervecerias Unidas SA | 1,022,176 | 7,928,837 | |||
Vina Concha y Toro SA | 3,516,552 | 7,979,156 | |||
15,907,993 | |||||
BUILDING MATERIALS – 0.52% | |||||
SalfaCorp SA | 1,098,241 | 1,976,518 | |||
1,976,518 | |||||
CHEMICALS – 6.39% | |||||
Sociedad Quimica y Minera | 653,208 | 24,075,827 | |||
24,075,827 | |||||
COMPUTERS – 1.00% | |||||
Sonda SA | 2,405,432 | 3,772,233 | |||
3,772,233 | |||||
ELECTRIC – 26.68% | |||||
AES Gener SA | 17,154,360 | 7,883,285 | |||
Colbun SA | 52,494,640 | 13,569,701 | |||
Empresa Electrica del Norte | 565,410 | 1,093,469 | |||
Empresa Electrica Pilmaiquen SA | 147,339 | 654,526 | |||
Empresa Nacional de | 23,168,144 | 37,951,838 | |||
Enersis SA | 92,381,264 | 39,446,667 | |||
100,599,486 | |||||
ENGINEERING & CONSTRUCTION – 0.38% | |||||
Socovesa SA | 3,786,821 | 1,442,944 | |||
1,442,944 |
Security | Shares | Value | |||
FOOD – 4.97% | |||||
Cencosud SA | 4,916,944 | $ | 18,735,698 | ||
18,735,698 | |||||
FOREST PRODUCTS & PAPER – 9.75% | |||||
Empresas CMPC SA | 782,000 | 33,241,551 | |||
Masisa SA | 24,865,832 | 3,523,354 | |||
36,764,905 | |||||
HEALTH CARE – SERVICES – 0.32% | |||||
Banmedica SA | 1,001,232 | 1,219,308 | |||
1,219,308 | |||||
HOLDING COMPANIES – DIVERSIFIED – 13.58% | |||||
Empresas Copec SA | 3,241,016 | 51,198,434 | |||
51,198,434 | |||||
IRON & STEEL – 4.32% | |||||
CAP SA | 536,248 | 16,274,832 | |||
16,274,832 | |||||
METAL FABRICATE & HARDWARE – 0.39% | |||||
Madeco SA | 24,564,864 | 1,481,653 | |||
1,481,653 | |||||
REAL ESTATE – 1.08% | |||||
Parque Arauco SA | 3,328,464 | 4,078,922 | |||
4,078,922 | |||||
RETAIL – 7.26% | |||||
La Polar SA | 1,872,312 | 11,077,921 | |||
Ripley Corp. SA | 3,241,594 | 2,712,449 | |||
S.A.C.I. Falabella SA | 2,490,024 | 13,593,219 | |||
27,383,589 | |||||
TELECOMMUNICATIONS – 2.73% | |||||
Empresa Nacional de | 726,512 | 10,273,415 | |||
10,273,415 | |||||
TRANSPORTATION – 1.11% | |||||
Compania SudAmericana de | 5,283,600 | 4,198,552 | |||
4,198,552 |
SCHEDULESOF INVESTMENTS | 21 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI CHILE INVESTABLE MARKET INDEX FUND
February 28, 2010
Security | Shares | Value | ||||
WATER – 1.43% |
| |||||
Inversiones Aguas | ||||||
Metropolitanas SA | 4,326,976 | $ | 5,385,418 | |||
5,385,418 | ||||||
TOTAL COMMON STOCKS |
| |||||
(Cost: $290,281,945) | 376,288,157 | b | ||||
SHORT-TERM INVESTMENTS – 0.11% |
| |||||
MONEY MARKET FUNDS – 0.11% |
| |||||
BlackRock Cash Funds: Treasury, | 428,693 | 428,693 | ||||
428,693 | ||||||
TOTAL SHORT-TERM INVESTMENTS |
| |||||
(Cost: $428,693) | 428,693 | |||||
TOTAL INVESTMENTS IN |
| |||||
(Cost: $290,710,638) | 376,716,850 | |||||
Other Assets, Less Liabilities – 0.10% | 378,713 | |||||
NET ASSETS – 100.00% | $ | 377,095,563 | ||||
a | Non-income earning security. |
b | Securities valued using Level 3 inputs in accordance with management’s fair valuation policy. See Note 1. |
c | Affiliated issuer. See Note 2. |
d | The rate quoted is the annualized seven-day yield of the fund at period end. |
See notes to financial statements.
22 | 2010 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited)
iSHARES® MSCI ISRAEL CAPPED INVESTABLE MARKET INDEX FUND
February 28, 2010
Security | Shares | Value | |||
COMMON STOCKS – 99.90% | |||||
AEROSPACE & DEFENSE – 2.24% | |||||
Elbit Systems Ltd. | 81,324 | $ | 4,993,296 | ||
4,993,296 | |||||
AIRLINES – 0.16% | |||||
El Al Israel Airlines Ltd.a | 1,372,059 | 350,413 | |||
350,413 | |||||
BANKS – 16.07% | |||||
Bank Hapoalim Ltd.a,b | 2,550,447 | 10,590,582 | |||
Bank Leumi le-Israela | 3,650,022 | 15,436,642 | |||
Israel Discount Bank Ltd. | 1,979,235 | 4,321,474 | |||
Mizrahi Tefahot Bank Ltd.a | 525,609 | 4,607,164 | |||
Union Bank of Israela | 167,184 | 839,350 | |||
35,795,212 | |||||
CHEMICALS – 11.40% | |||||
Frutaromb | 154,872 | 1,402,599 | |||
Israel Chemicals Ltd. | 1,607,121 | 19,561,068 | |||
Makhteshim-Agan Industries Ltd. | 871,317 | 4,441,330 | |||
25,404,997 | |||||
COMMERCIAL SERVICES – 0.55% | |||||
AL-ROV (Israel) Ltd.a | 15,795 | 425,129 | |||
Nitsba Holdings 1995 Ltd.a | 97,767 | 804,699 | |||
1,229,828 | |||||
COMPUTERS – 0.20% | |||||
MATRIX IT Ltd. | 97,524 | 448,324 | |||
448,324 | |||||
DIVERSIFIED FINANCIAL SERVICES – 0.58% | |||||
FIBI Holdings Ltd.a | 37,665 | 907,110 | |||
Mivtach Shamir Holdings Ltd.a | 12,069 | 375,310 | |||
1,282,420 | |||||
ELECTRICAL COMPONENTS & | |||||
Electra (Israel) Ltd. | 3,807 | 382,161 | |||
382,161 | |||||
ELECTRONICS – 1.15% | |||||
Elron Electronic Industries Ltd.a | 68,202 | 520,202 | |||
Ituran Location and Control Ltd. | 62,937 | 970,489 | |||
Orbotech Ltd.a | 119,394 | 1,074,546 | |||
2,565,237 |
Security | Shares | Value | |||
ENGINEERING & CONSTRUCTION – 0.54% | |||||
Shikun & Binui Ltd. | 640,386 | $ | 1,211,793 | ||
1,211,793 | |||||
FOOD – 1.02% | |||||
Blue Square-Israel Ltd. | 56,781 | 638,063 | |||
Maabarot Products Ltd. | 13,122 | 168,257 | |||
Shufersal Ltd. | 235,386 | 1,456,484 | |||
2,262,804 | |||||
FOREST PRODUCTS & PAPER – 0.36% | |||||
Hadera Paper Ltd.a | 10,287 | 811,308 | |||
811,308 | |||||
HEALTH CARE – PRODUCTS – 1.00% | |||||
Given Imaging Ltd.a | 61,317 | 1,068,755 | |||
Syneron Medical Ltd.a | 120,690 | 1,152,589 | |||
2,221,344 | |||||
HOLDING COMPANIES – DIVERSIFIED – 0.86% | |||||
Clal Industries and Investments Ltd. | 169,550 | 1,140,654 | |||
Elco Holdings Ltd. | 33,696 | 493,602 | |||
Granite Hacarmel Investments Ltd.a | 121,338 | 277,775 | |||
1,912,031 | |||||
HOME BUILDERS – 0.36% | |||||
Bayside Land Corp. Ltd. | 1,322 | 306,875 | |||
Property & Building Corp. Ltd. | 5,751 | 489,638 | |||
796,513 | |||||
INSURANCE – 2.35% | |||||
Clal Insurance Enterprises | 56,914 | 1,378,227 | |||
Harel Insurance Investments & | 32,805 | 1,682,575 | |||
Menorah Mivtachim Holdings Ltd.a | 107,973 | 1,388,775 | |||
Phoenix Holdings Ltd.a | 259,039 | 795,249 | |||
5,244,826 | |||||
INTERNET – 8.23% | |||||
Check Point Software | 511,758 | 16,683,311 | |||
NetVision Ltd. | 24,219 | 265,361 | |||
RADVision Ltd.a | 54,999 | 332,744 | |||
Radware Ltd.a | 61,722 | 1,049,274 | |||
18,330,690 |
SCHEDULESOF INVESTMENTS | 23 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI ISRAEL CAPPED INVESTABLE MARKET INDEX FUND
February 28, 2010
Security | Shares | Value | |||
INVESTMENT COMPANIES – 4.46% | |||||
Delek Group Ltd. (The) | 13,932 | $ | 3,064,044 | ||
Discount Investment Corp. Ltd. | 66,987 | 1,693,068 | |||
Elbit Imaging Ltd.a | 47,628 | 1,115,543 | |||
Israel Corp. Ltd. (The)a | 5,346 | 4,057,782 | |||
9,930,437 | |||||
MACHINERY – 0.84% | |||||
Ormat Industries Ltd.b | 228,177 | 1,873,243 | |||
1,873,243 | |||||
MANUFACTURING – 0.35% | |||||
FMS Enterprises Migun Ltd. | 13,770 | 549,925 | |||
Plasson Industries Ltd. | 10,368 | 227,583 | |||
777,508 | |||||
MEDIA – 0.50% | |||||
Hot Telecommunication | 99,144 | 1,119,617 | |||
1,119,617 | |||||
OIL & GAS – 1.95% | |||||
Delek Drilling LPa,b | 738,801 | 1,809,608 | |||
Jerusalem Oil Exploration Ltd.a | 26,649 | 490,170 | |||
Naphtha Israel Petroleum | 84,807 | 375,274 | |||
Oil Refineries Ltd.a,b | 3,139,317 | 1,658,350 | |||
4,333,402 | |||||
PHARMACEUTICALS – 23.93% | |||||
Teva Pharmaceutical Industries Ltd. | 892,377 | 53,304,086 | |||
53,304,086 | |||||
REAL ESTATE – 3.67% | |||||
Adgar Investments & | 86,913 | 112,434 | |||
Africa Israel Investments Ltd.a,b | 57,024 | 612,723 | |||
Africa Israel Properties Ltd.a | 24,948 | 378,000 | |||
Airport City Ltd.a | 107,163 | 479,305 | |||
Alony Hetz Properties & | 225,666 | 888,091 | |||
Amot Investments Ltd. | 256,527 | 642,930 | |||
Azorim-Investment Development & | 35,640 | 186,571 | |||
British Israel Investments Ltd. | 163,701 | 448,407 | |||
Delek Real Estate Ltd.a,b | 332,181 | 329,676 | |||
Electra Real Estate Ltd.a | 36,489 | 320,906 |
Security | Shares | Value | |||
Gazit Globe Ltd.b | 186,381 | $ | 1,923,742 | ||
Gazit Inc. | 24,867 | 523,731 | |||
Jerusalem Economy Ltd.a | 62,613 | 483,869 | |||
Melisron Ltd. | 33,372 | 856,270 | |||
8,186,655 | |||||
RETAIL – 0.68% | |||||
Delek Automotive Systems Ltd.b | 125,145 | 1,519,228 | |||
1,519,228 | |||||
SEMICONDUCTORS – 0.73% | |||||
Mellanox Technologies Ltd.a | 83,997 | 1,629,700 | |||
1,629,700 | |||||
SOFTWARE – 0.47% | |||||
Fundtech Ltd.a | 14,175 | 179,597 | |||
Retalix Ltd.a | 66,744 | 873,139 | |||
1,052,736 | |||||
TELECOMMUNICATION EQUIPMENT – 0.18% | |||||
AudioCodes Ltd.a | 113,319 | 394,350 | |||
394,350 | |||||
TELECOMMUNICATIONS – 14.90% | |||||
012 Smile.Communications Ltd.a | 28,998 | 851,867 | |||
Alvarion Ltd.a | 193,185 | 708,989 | |||
Bezeq The Israel Telecommunication | 4,191,750 | 10,882,908 | |||
Cellcom Israel Ltd. | 144,747 | 4,853,631 | |||
Ceragon Networks Ltd.a,b | 105,381 | 1,228,742 | |||
Gilat Satellite Networks Ltd.a | 108,322 | 567,607 | |||
NICE Systems Ltd.a,b | 223,236 | 6,847,440 | |||
Partner Communications Co. Ltd. | 304,155 | 7,043,420 | |||
RRSat Global Communications | 21,186 | 219,911 | |||
33,204,515 | |||||
TOTAL COMMON STOCKS | |||||
(Cost: $220,435,858) | 222,568,674 | ||||
SHORT-TERM INVESTMENTS – 2.83% | |||||
MONEY MARKET FUNDS – 2.83% | |||||
BlackRock Cash Funds: Institutional, | 5,399,101 | 5,399,101 |
24 | 2010 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI ISRAEL CAPPED INVESTABLE MARKET INDEX FUND
February 28, 2010
Security | Shares | Value | ||||
BlackRock Cash Funds: Prime, | 867,693 | $ | 867,693 | |||
BlackRock Cash Funds: Treasury, | 48,648 | 48,648 | ||||
6,315,442 | ||||||
TOTAL SHORT-TERM INVESTMENTS |
| |||||
(Cost: $6,315,442) | 6,315,442 | |||||
TOTAL INVESTMENTS |
| |||||
(Cost: $226,751,300) | 228,884,116 | |||||
Other Assets, Less Liabilities – (2.73)% | (6,087,022 | ) | ||||
NET ASSETS – 100.00% | $ | 222,797,094 | ||||
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, 2010
Security | Shares | Value | |||
COMMON STOCKS – 99.90% | |||||
BANKS – 1.14% | |||||
Banco Compartamos SAa | 2,050,300 | $ | 11,234,015 | ||
11,234,015 | |||||
BEVERAGES – 7.33% | |||||
Fomento Economico Mexicano | 10,312,408 | 44,289,163 | |||
Grupo Modelo | 5,095,356 | 28,333,351 | |||
72,622,514 | |||||
BUILDING MATERIALS – 5.84% | |||||
Cemex SAB de CV CPOb | 60,209,870 | 57,835,413 | |||
57,835,413 | |||||
CHEMICALS – 1.41% | |||||
Mexichem SAB de CV | 5,968,231 | 13,918,669 | |||
13,918,669 | |||||
DIVERSIFIED FINANCIAL SERVICES – 5.91% | |||||
Bolsa Mexicana de Valores | 1,806,700 | 2,609,540 | |||
Financiera Independencia | 600,168 | 592,944 | |||
Grupo Financiero Banorte | 9,277,100 | 34,700,839 | |||
Grupo Financiero Inbursa | 5,947,900 | 20,627,613 | |||
58,530,936 | |||||
ENGINEERING & CONSTRUCTION – 4.14% | |||||
Carso Infraestructura y | 6,861,400 | 4,404,617 | |||
Empresas ICA SAB de CVa,b | 3,674,374 | 8,152,012 | |||
Grupo Aeroportuario del Centro | 1,441,300 | 2,285,996 | |||
Grupo Aeroportuario del Pacifico | 4,364,500 | 14,890,295 | |||
Grupo Aeroportuario del Sureste | 211,120 | 11,267,474 | |||
41,000,394 | |||||
FOOD – 3.58% | |||||
Alsea SAB de CVa | 2,984,145 | 2,691,250 |
Security | Shares | Value | |||
Gruma SAB de CV Series Ba,b | 2,111,269 | $ | 4,165,103 | ||
Grupo Bimbo SAB de CV | 3,917,900 | 28,598,101 | |||
35,454,454 | |||||
FOREST PRODUCTS & PAPER – 2.91% | |||||
Kimberly-Clark de Mexico | 5,440,400 | 28,855,043 | |||
28,855,043 | |||||
HOLDING COMPANIES – DIVERSIFIED – 4.17% | |||||
Alfa SAB de CV Series A | 2,801,400 | 18,911,026 | |||
Grupo Carso SAB de CV | 6,293,030 | 22,400,945 | |||
41,311,971 | |||||
HOME BUILDERS – 3.50% | |||||
Consorcio ARA SAB de CVa,b | 7,267,400 | 4,944,022 | |||
Corporacion Geo SAB de CV | 3,349,960 | 9,873,842 | |||
Desarrolladora Homex | 1,908,230 | 8,706,264 | |||
Sare Holding SAB de CV | 1,157,100 | 375,019 | |||
Urbi Desarrollos Urbanos | 4,790,800 | 10,790,200 | |||
34,689,347 | |||||
IRON & STEEL – 0.23% | |||||
Compania Minera Autlan | 369,200 | 805,238 | |||
Grupo Simec SAB de CV | 568,400 | 1,433,710 | |||
2,238,948 | |||||
MACHINERY – 0.49% | |||||
Industrias CH SAB de CV | |||||
Series Ba,b | 1,481,900 | 4,826,072 | |||
4,826,072 | |||||
MEDIA – 5.17% | |||||
Grupo Televisa SA CPO | 11,388,399 | 42,161,259 | |||
Megacable Holdings | 2,050,300 | 4,767,113 | |||
TV Azteca SAB de CV CPOa | 7,986,000 | 4,288,792 | |||
51,217,164 | |||||
MINING – 6.26% | |||||
Grupo Mexico SAB de CV | 19,812,810 | 47,322,739 |
26 | 2010 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI MEXICO INVESTABLE MARKET INDEX FUND
February 28, 2010
Security | Shares | Value | |||
Industrias Penoles SAB de CV | 730,800 | $ | 14,636,310 | ||
61,959,049 | |||||
PHARMACEUTICALS – 0.20% | |||||
Genomma Lab Internacional | 649,600 | 1,991,454 | |||
1,991,454 | |||||
RETAIL – 13.37% | |||||
Controladora Comercial | 5,440,400 | 4,740,319 | |||
Grupo Elektra SA de CVa | 505,470 | 26,432,238 | |||
Grupo Famsa SAB de | 2,050,315 | 3,919,655 | |||
Wal-Mart de Mexico SAB de | 19,508,300 | 97,268,510 | |||
132,360,722 | |||||
TELECOMMUNICATIONS – 34.25% | |||||
America Movil SAB de | 102,393,240 | 228,373,297 | |||
Axtel SAB de CV CPOa,b | 8,566,600 | 6,921,015 | |||
Carso Global Telecom SAB | 6,475,731 | 29,028,309 | |||
Maxcom Telecomunicaciones | 731,000 | 553,955 | |||
Telefonos de Mexico SAB de | 46,669,700 | 36,535,630 | |||
Telmex Internacional SAB de | 41,330,800 | 37,694,790 | |||
339,106,996 | |||||
TOTAL COMMON STOCKS | |||||
(Cost: $1,137,877,557) | 989,153,161 | ||||
SHORT-TERM INVESTMENTS – 4.00% | |||||
MONEY MARKET FUNDS – 4.00% | |||||
BlackRock Cash Funds: Institutional, | 33,936,435 | 33,936,435 | |||
BlackRock Cash Funds: | 5,453,948 | 5,453,948 |
Security | Shares | Value | ||||
BlackRock Cash Funds: Treasury, | 233,889 | $ | 233,889 | |||
39,624,272 | ||||||
TOTAL SHORT-TERM INVESTMENTS |
| |||||
(Cost: $39,624,272) | 39,624,272 | |||||
TOTAL INVESTMENTS IN |
| |||||
(Cost: $1,177,501,829) | 1,028,777,433 | |||||
Other Assets, Less Liabilities – (3.90)% | (38,615,802 | ) | ||||
NET ASSETS – 100.00% | $ | 990,161,631 | ||||
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 | 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, 2010
Security | Shares | Value | |||
COMMON STOCKS – 99.86% | |||||
BANKS – 14.80% | |||||
Absa Group Ltd. | 666,225 | $ | 11,543,438 | ||
FirstRand Ltd. | 5,810,859 | 13,790,792 | |||
Nedbank Group Ltd.a | 359,073 | 5,621,862 | |||
Standard Bank Group Ltd. | 2,408,535 | 33,768,826 | |||
64,724,918 | |||||
BUILDING MATERIALS – 0.99% | |||||
Pretoria Portland | |||||
Cement Co. Ltd. | 1,027,080 | 4,355,157 | |||
4,355,157 | |||||
DIVERSIFIED FINANCIAL SERVICES – 3.49% | |||||
African Bank Investments Ltd. | 1,574,802 | 6,363,314 | |||
Investec Ltd. | 443,718 | 3,152,253 | |||
RMB Holdings Ltd. | 1,495,422 | 5,734,288 | |||
15,249,855 | |||||
ELECTRONICS – 0.60% | |||||
Reunert Ltd. | 366,120 | 2,636,331 | |||
2,636,331 | |||||
ENGINEERING & CONSTRUCTION – 1.66% | |||||
Aveng Ltd. | 816,318 | 3,983,338 | |||
Murray & Roberts Holdings Ltd. | 649,944 | 3,273,252 | |||
7,256,590 | |||||
FOOD – 3.62% | |||||
Shoprite Holdings Ltd. | 840,213 | 8,210,836 | |||
Tiger Brands Ltd. | 332,667 | 7,639,036 | |||
15,849,872 | |||||
FOREST PRODUCTS & PAPER – 0.92% | |||||
Sappi Ltd.b | 1,051,785 | 4,049,602 | |||
4,049,602 | |||||
HEALTH CARE – PRODUCTS – 1.13% | |||||
Aspen Pharmacare Holdings Ltd.b | 532,737 | 4,935,003 | |||
4,935,003 | |||||
HEALTH CARE – SERVICES – 0.73% | |||||
Netcare Ltd.a,b | 1,912,167 | 3,203,369 | |||
3,203,369 | |||||
HOLDING COMPANIES – DIVERSIFIED – 5.76% | |||||
Bidvest Group Ltd. | 605,313 | 10,424,857 | |||
Imperial Holdings Ltd. | 350,730 | 4,290,030 |
Security | Shares | Value | |||
Remgro Ltd. | 892,539 | $ | 10,480,594 | ||
25,195,481 | |||||
HOME FURNISHINGS – 1.48% | |||||
Steinhoff International | |||||
Holdings Ltd.b | 2,599,533 | 6,484,842 | |||
6,484,842 | |||||
INSURANCE – 4.13% | |||||
Discovery Holdings Ltd. | 549,747 | 2,410,724 | |||
Liberty Holdings Ltd. | 236,115 | 2,164,452 | |||
Sanlam Ltd. | 4,229,820 | 13,482,224 | |||
18,057,400 | |||||
IRON & STEEL – 3.09% | |||||
ArcelorMittal South Africa Ltd. | 368,639 | 5,611,470 | |||
Kumba Iron Ore Ltd. | 165,159 | 7,908,324 | |||
13,519,794 | |||||
MEDIA – 6.81% | |||||
Naspers Ltd. Class N | 792,747 | 29,788,132 | |||
29,788,132 | |||||
MINING – 21.72% | |||||
African Rainbow Minerals Ltd. | 218,700 | 5,250,284 | |||
Anglo Platinum Ltd.b | 122,796 | 11,447,288 | |||
AngloGold Ashanti Ltd. | 633,582 | 22,897,238 | |||
Exxaro Resources Ltd. | 257,256 | 3,859,931 | |||
Gold Fields Ltd. | 1,380,564 | 16,004,059 | |||
Harmony Gold Mining Co. Ltd. | 746,496 | 6,725,233 | |||
Impala Platinum Holdings Ltd. | 1,106,622 | 27,122,310 | |||
Northam Platinum Ltd.a | 297,108 | 1,726,556 | |||
95,032,899 | |||||
OIL & GAS – 9.96% | |||||
Sasol Ltd. | 1,183,896 | 43,551,370 | |||
43,551,370 | |||||
REAL ESTATE – 2.43% | |||||
Growthpoint Properties Ltd. | 3,025,512 | 5,743,519 | |||
Redefine Income Fund Ltd. | 4,924,719 | 4,870,425 | |||
10,613,944 | |||||
RETAIL – 4.64% | |||||
Foschini Ltd. | 421,362 | 3,326,036 | |||
Massmart Holdings Ltd. | 415,044 | 4,966,232 | |||
Pick’n Pay Stores Ltd. | 470,043 | 2,477,622 | |||
Truworths International Ltd. | 890,919 | 5,746,890 |
28 | 2010 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI SOUTH AFRICA INDEX FUND
February 28, 2010
Security | Shares | Value | ||||
Woolworths Holdings Ltd. | 1,403,649 | $ | 3,774,441 | |||
20,291,221 | ||||||
TELECOMMUNICATIONS – 11.90% |
| |||||
MTN Group Ltd. | 3,035,070 | 44,311,349 | ||||
Telkom South Africa Ltd. | 537,435 | 2,352,527 | ||||
Vodacom Group (Proprietary) Ltd. | 766,827 | 5,377,644 | ||||
52,041,520 | ||||||
TOTAL COMMON STOCKS |
| |||||
(Cost: $505,802,852) | 436,837,300 | |||||
SHORT-TERM INVESTMENTS – 1.56% |
| |||||
MONEY MARKET FUNDS – 1.56% |
| |||||
BlackRock Cash Funds: Institutional, | 5,835,904 | 5,835,904 | ||||
BlackRock Cash Funds: Prime, | 937,892 | 937,892 | ||||
BlackRock Cash Funds: Treasury, | 27,145 | 27,145 | ||||
6,800,941 | ||||||
TOTAL SHORT-TERM INVESTMENTS |
| |||||
(Cost: $6,800,941) | 6,800,941 | |||||
TOTAL INVESTMENTS IN |
| |||||
(Cost: $512,603,793) | 443,638,241 | |||||
Other Assets, Less Liabilities – (1.42)% | (6,201,721 | ) | ||||
NET ASSETS – 100.00% | $ | 437,436,520 | ||||
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 | 29 |
Table of Contents
Schedule of Investments (Unaudited)
iSHARES® MSCI TURKEY INVESTABLE MARKET INDEX FUND
February 28, 2010
Security | Shares | Value | |||
COMMON STOCKS – 99.88% | |||||
AEROSPACE & DEFENSE – 0.32% | |||||
Aselsan Elektronik Sanayi ve TASa | 157,143 | $ | 1,152,052 | ||
1,152,052 | |||||
AIRLINES – 2.03% | |||||
Turk Hava Yollari AO | 2,338,182 | 7,433,154 | |||
7,433,154 | |||||
AUTO MANUFACTURERS – 0.89% | |||||
Otokar Otobus Karoseri Sanayi ASa | 56,007 | 603,183 | |||
Tofas Turk Otomobil Fabrikasi ASa | 835,401 | 2,655,766 | |||
3,258,949 | |||||
BANKS – 42.86% | |||||
Akbank TASa | 5,010,789 | 25,357,092 | |||
Albaraka Turk Katilim Bankasi AS | 1,259,349 | 2,026,266 | |||
Asya Katilim Bankasi ASb | 3,006,150 | 7,099,222 | |||
Sekerbank TASa,b | 1,170,414 | 1,716,116 | |||
Tekstil Bankasi ASb | 699,279 | 526,268 | |||
Turk Ekonomi Bankasi ASa,b | 1,468,236 | 2,295,682 | |||
Turkiye Garanti Bankasi AS | 14,031,003 | 51,887,447 | |||
Turkiye Halk Bankasi AS | 2,087,841 | 13,206,896 | |||
Turkiye Is Bankasi ASa | 7,200,060 | 19,993,030 | |||
Turkiye Is Bankasi AS Newa,b | 3,320,563 | 8,789,631 | |||
Turkiye Vakiflar Bankasi TAOb | 5,007,555 | 11,435,815 | |||
Yapi ve Kredi Bankasi ASb | 5,807,383 | 12,508,847 | |||
156,842,312 | |||||
BEVERAGES – 4.83% | |||||
Anadolu Efes Biracilik ve Malt | 1,352,988 | 13,693,589 | |||
Coca-Cola Icecek ASa | 424,977 | 3,970,330 | |||
17,663,919 | |||||
BUILDING MATERIALS – 1.97% | |||||
Adana Cimento Sanayii TAS Class A | 382,788 | 1,316,234 | |||
Akcansa Cimento Sanayi ve TAS | 319,725 | 1,410,536 | |||
Bolu Cimento Sanayii AS | 485,900 | 592,657 | |||
Cimsa Cimento Sanayi ve TASa | 270,627 | 1,395,844 | |||
Goltas Goller Bolgesi Cimento | 19,110 | 805,885 | |||
Mardin Cimento Sanayii ve TAS | 334,058 | 1,701,337 | |||
7,222,493 |
Security | Shares | Value | |||
CHEMICALS – 1.46% | |||||
Aksa Akrilik Kimya Sanayii ASb | 554,337 | $ | 805,602 | ||
Bagfas Bandirma Gubre | 12,054 | 969,732 | |||
Gubre Fabrikalari TASa,b | 111,426 | 686,768 | |||
Petkim Petrokimya Holding ASa,b | 547,281 | 2,893,788 | |||
5,355,890 | |||||
COMMERCIAL SERVICES – 0.64% | |||||
Ihlas Holding ASa,b | 1,983,471 | 772,104 | |||
Koza Anadolu Metal Madencilik | 648,123 | 1,555,815 | |||
2,327,919 | |||||
DISTRIBUTION & WHOLESALE – 0.64% | |||||
Aygaz AS | 601,377 | 2,340,974 | |||
2,340,974 | |||||
DIVERSIFIED FINANCIAL SERVICES – 0.90% | |||||
Finans Finansal Kiralama ASb | 383,082 | 526,898 | |||
Is Yatirim Menkul Degerler AS | 237,699 | 419,464 | |||
Turkiye Sinai Kalkinma | 1,802,662 | 2,339,069 | |||
3,285,431 | |||||
ELECTRIC – 0.69% | |||||
Akenerji Elektrik Uretim ASa | 130,977 | 1,444,584 | |||
Zorlu Enerji Elektrik Uretim ASa,b | 584,031 | 1,091,257 | |||
2,535,841 | |||||
ENGINEERING & CONSTRUCTION – 2.75% | |||||
Enka Insaat ve Sanayi AS | 1,564,228 | 6,139,799 | |||
TAV Havalimanlari Holding ASa,b | 1,092,063 | 3,932,234 | |||
10,072,033 | |||||
ENTERTAINMENT – 0.39% | |||||
Fenerbahce Sportif Hizmetler | 25,137 | 799,113 | |||
Galatasaray Sportif Sinai ve | 5,439 | 638,699 | |||
1,437,812 | |||||
FOOD – 4.04% | |||||
Banvit Bandirma Vitaminli Yem | 233,877 | 737,433 | |||
BIM Birlesik Magazalar AS | 253,575 | 11,269,269 | |||
Pinar Sut Mamulleri Sanayii AS | 120,246 | 565,597 |
30 | 2010 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI TURKEY INVESTABLE MARKET INDEX FUND
February 28, 2010
Security | Shares | Value | |||
Tat Konserve Sanayii ASa,b | 409,689 | $ | 818,660 | ||
Ulker Biskuvi Sanayi ASa | 627,984 | 1,385,244 | |||
14,776,203 | |||||
FOREST PRODUCTS & PAPER – 0.41% | |||||
Ipek Matbaacilik Sanayi ve TASb | 347,802 | 613,762 | |||
Kartonsan Karton Sanayi ve TAS | 12,201 | 902,400 | |||
1,516,162 | |||||
HOLDING COMPANIES – DIVERSIFIED – 9.62% | |||||
Alarko Holding AS | 447,321 | 1,050,574 | |||
Dogan Sirketler Grubu | 5,731,531 | 3,904,439 | |||
Eczacibasi Yatirim Holding | 210,798 | 672,869 | |||
Haci Omer Sabanci Holding AS | 3,506,099 | 13,306,958 | |||
Haci Omer Sabanci | 619,167 | 2,289,715 | |||
KOC Holding ASa,b | 3,226,650 | 9,629,605 | |||
Tekfen Holding ASa,b | 865,536 | 2,807,721 | |||
Yazicilar Holding ASa | 267,393 | 1,561,318 | |||
35,223,199 | |||||
HOME FURNISHINGS – 0.46% | |||||
Vestel Beyaz Esya Sanayi ve TASa | 381,612 | 866,540 | |||
Vestel Elektronik Sanayi ve TASa,b | 559,482 | 827,599 | |||
1,694,139 | |||||
HOUSEWARES – 1.01% | |||||
Anadolu Cam Sanayii ASb | 579,621 | 691,928 | |||
Turk Sise ve Cam Fabrikalari ASb | 2,572,941 | 3,004,700 | |||
3,696,628 | |||||
INSURANCE – 1.19% | |||||
Aksigorta ASa | 814,674 | 835,102 | |||
Anadolu Anonim Turk | 1,275,079 | 1,058,878 | |||
Anadolu Hayat Emeklilik AS | 251,076 | 759,084 | |||
Gunes Sigorta ASa,b | 249,900 | 321,019 | |||
Yapi Kredi Sigorta AS | 187,131 | 1,371,901 | |||
4,345,984 | |||||
IRON & STEEL – 2.73% | |||||
Eregli Demir ve Celik | 2,671,872 | 7,315,212 | |||
Izmir Demir Celik Sanayi ASb | 300,615 | 376,415 |
Security | Shares | Value | |||
Kardemir Karabuk Demir Celik | 1,177,176 | $ | 557,523 | ||
Kardemir Karabuk Demir Celik | 618,576 | 292,964 | |||
Kardemir Karabuk Demir Celik | 3,816,267 | 1,436,037 | |||
9,978,151 | |||||
MACHINERY – 0.14% | |||||
Turk Traktor ve Ziraat | 89,082 | 497,035 | |||
497,035 | |||||
MANUFACTURING – 0.46% | |||||
Trakya Cam Sanayii ASa,b | 1,357,692 | 1,664,799 | |||
1,664,799 | |||||
MEDIA – 1.01% | |||||
Dogan Gazetecilik ASb | 316,638 | 579,311 | |||
Dogan Yayin Holding ASa,b | 1,339,023 | 1,372,600 | |||
Hurriyet Gazetecilik ve | 1,659,483 | 1,733,395 | |||
3,685,306 | |||||
METAL FABRICATE & HARDWARE – 0.11% | |||||
Borusan Mannesmann Boru | 56,595 | 414,911 | |||
414,911 | |||||
MINING – 0.16% | |||||
Park Elektrik Madencilik | 348,537 | 583,401 | |||
583,401 | |||||
OIL & GAS – 4.15% | |||||
Turkiye Petrol Rafinerileri AS | 836,724 | 15,199,839 | |||
15,199,839 | |||||
PHARMACEUTICALS – 1.10% | |||||
Deva Holding ASb | 386,022 | 771,368 | |||
Deva Holding AS Newb | 97,818 | 195,465 | |||
EIS Eczacibasi Ilac Sanayi ve TAS | 1,099,266 | 1,854,278 | |||
Selcuk Ecza Deposu | 690,606 | 1,209,742 | |||
4,030,853 |
SCHEDULESOF INVESTMENTS | 31 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI TURKEY INVESTABLE MARKET INDEX FUND
February 28, 2010
Security | Shares | Value | |||
REAL ESTATE INVESTMENT TRUSTS – 0.95% | |||||
Is Gayrimenkul Yatirim | 1,654,485 | $ | 1,610,100 | ||
Sinpas Gayrimenkul Yatirim | 1,336,671 | 1,864,497 | |||
3,474,597 | |||||
RETAIL – 0.44% | |||||
Dogus Otomotiv Servis ve TASb | 257,838 | 806,293 | |||
Turcas Petrolculuk ASa | 274,302 | 811,508 | |||
1,617,801 | |||||
TELECOMMUNICATIONS – 11.42% | |||||
Nortel Networks Netas | 15,141 | 579,569 | |||
Turk Telekomunikasyon AS | 3,506,391 | 11,010,434 | |||
Turkcell Iletisim Hizmetleri AS | 5,145,882 | 30,213,924 | |||
41,803,927 | |||||
TRANSPORTATION – 0.11% | |||||
Celebi Hava Servisi ASa | 40,572 | 405,365 | |||
405,365 | |||||
TOTAL COMMON STOCKS | |||||
(Cost: $375,449,887) | 365,537,079 | ||||
SHORT-TERM INVESTMENTS – 19.82% | |||||
MONEY MARKET FUNDS – 19.82% | |||||
BlackRock Cash Funds: Institutional, | 62,478,488 | 62,478,488 | |||
BlackRock Cash Funds: Prime, | 10,040,962 | 10,040,962 | |||
BlackRock Cash Funds: Treasury, | 31,152 | 31,152 | |||
72,550,602 | |||||
TOTAL SHORT-TERM INVESTMENTS | |||||
(Cost: $72,550,602) | 72,550,602 | ||||
Value | ||||
TOTAL INVESTMENTS IN |
| |||
(Cost: $448,000,489) | $ | 438,087,681 | ||
Other Assets, Less Liabilities – (19.70)% | (72,100,065 | ) | ||
NET ASSETS – 100.00% | $ | 365,987,616 | ||
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 | 2010 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Statements of Assets and Liabilities (Unaudited)
iSHARES®, INC.
February 28, 2010
iShares MSCI | ||||||||||||||||
Brazil Index Fund | BRIC Index Fund | Canada Index Fund | Chile Investable Market Index Fund | |||||||||||||
ASSETS | ||||||||||||||||
Investments, at cost: | ||||||||||||||||
Unaffiliated issuers | $ | 6,033,363,817 | $ | 771,040,053 | $ | 3,280,053,533 | $ | 290,281,945 | ||||||||
Affiliated issuers (Note 2) | 18,117,258 | 36,457,125 | 6,473,376 | 428,693 | ||||||||||||
Total cost of investments | $ | 6,051,481,075 | $ | 807,497,178 | $ | 3,286,526,909 | $ | 290,710,638 | ||||||||
Investments in securities, at fair value (including securities on loana) (Note 1): | ||||||||||||||||
Unaffiliated issuers | $ | 10,228,353,307 | $ | 818,900,305 | $ | 3,051,707,768 | $ | 376,288,157 | ||||||||
Affiliated issuers (Note 2) | 18,117,258 | 36,457,125 | 6,473,376 | 428,693 | ||||||||||||
Total fair value of investments | 10,246,470,565 | 855,357,430 | 3,058,181,144 | 376,716,850 | ||||||||||||
Foreign currencies, at valueb | 11,478,424 | 1,036,945 | 5,789,915 | – | ||||||||||||
Receivables: | ||||||||||||||||
Investment securities sold | 117,176,147 | 5,327,554 | 10,623,621 | 2,364,477 | ||||||||||||
Dividends and interest | 62,422,722 | 1,828,477 | 2,881,324 | 310,625 | ||||||||||||
Capital shares sold | – | – | – | 2,816,121 | ||||||||||||
Total Assets | 10,437,547,858 | 863,550,406 | 3,077,476,004 | 382,208,073 | ||||||||||||
LIABILITIES | ||||||||||||||||
Payables: | ||||||||||||||||
Investment securities purchased | 115,073,655 | 5,202,290 | 13,530,603 | 4,938,898 | ||||||||||||
Collateral for securities on loan (Note 5) | 18,108,900 | 36,340,636 | 5,341,262 | – | ||||||||||||
Capital shares redeemed | – | – | 99,693 | – | ||||||||||||
Investment advisory fees (Note 2) | 4,700,042 | 427,095 | 1,212,669 | 173,612 | ||||||||||||
Total Liabilities | 137,882,597 | 41,970,021 | 20,184,227 | 5,112,510 | ||||||||||||
NET ASSETS | $ | 10,299,665,261 | $ | 821,580,385 | $ | 3,057,291,777 | $ | 377,095,563 | ||||||||
Net assets consist of: | ||||||||||||||||
Paid-in capital | $ | 7,109,973,519 | $ | 803,042,229 | $ | 3,369,968,735 | $ | 313,758,887 | ||||||||
Undistributed (distributions in excess of) net investment income | (180,280,356 | ) | (661,306 | ) | 5,729,136 | 366,830 | ||||||||||
Accumulated net realized loss | (825,283,849 | ) | (28,688,733 | ) | (90,065,672 | ) | (23,038,162 | ) | ||||||||
Net unrealized appreciation (depreciation) on investments and translation of assets and liabilities in foreign currencies | 4,195,255,947 | 47,888,195 | (228,340,422 | ) | 86,008,008 | |||||||||||
NET ASSETS | $ | 10,299,665,261 | $ | 821,580,385 | $ | 3,057,291,777 | $ | 377,095,563 | ||||||||
Shares outstandingc | 150,150,000 | 19,150,000 | 118,300,000 | 6,800,000 | ||||||||||||
Net asset value per share | $ | 68.60 | $ | 42.90 | $ | 25.84 | $ | 55.46 | ||||||||
a | Securities on loan with values of $17,740,368, $34,606,374, $5,086,651 and $—, respectively. See Note 5. |
b | Cost of foreign currencies: $11,425,136, $1,021,457, $5,776,886 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, 2010
iShares MSCI | ||||||||||||||||
Israel Capped Investable Market Index Fund | Mexico Index Fund | South Africa Index Fund | Turkey Investable Market Index Fund | |||||||||||||
ASSETS | ||||||||||||||||
Investments, at cost: | ||||||||||||||||
Unaffiliated issuers | $ | 220,435,858 | $ | 1,137,877,557 | $ | 505,802,852 | $ | 375,449,887 | ||||||||
Affiliated issuers (Note 2) | 6,315,442 | 39,624,272 | 6,800,941 | 72,550,602 | ||||||||||||
Total cost of investments | $ | 226,751,300 | $ | 1,177,501,829 | $ | 512,603,793 | $ | 448,000,489 | ||||||||
Investments in securities, at fair value | ||||||||||||||||
(including securities on loana) (Note 1): | ||||||||||||||||
Unaffiliated issuers | $ | 222,568,674 | $ | 989,153,161 | $ | 436,837,300 | $ | 365,537,079 | ||||||||
Affiliated issuers (Note 2) | 6,315,442 | 39,624,272 | 6,800,941 | 72,550,602 | ||||||||||||
Total fair value of investments | 228,884,116 | 1,028,777,433 | 443,638,241 | 438,087,681 | ||||||||||||
Foreign currencies, at valueb | 274,308 | 1,071,273 | 400,525 | 496,034 | ||||||||||||
Receivables: | ||||||||||||||||
Investment securities sold | 6,280,661 | – | 1,018,763 | – | ||||||||||||
Due from custodian (Note 4) | 9,871,242 | – | – | – | ||||||||||||
Dividends and interest | 144,127 | 87,509 | 211,434 | 114,689 | ||||||||||||
Capital shares sold | 22,034 | – | – | – | ||||||||||||
Total Assets | 245,476,488 | 1,029,936,215 | 445,268,963 | 438,698,404 | ||||||||||||
LIABILITIES | ||||||||||||||||
Payables: | ||||||||||||||||
Investment securities purchased | 16,317,778 | – | 822,576 | – | ||||||||||||
Collateral for securities on loan (Note 5) | 6,266,794 | 39,390,383 | 6,773,796 | 72,519,450 | ||||||||||||
Capital shares redeemed | – | – | 20,741 | – | ||||||||||||
Investment advisory fees (Note 2) | 94,822 | 384,201 | 215,330 | 191,338 | ||||||||||||
Total Liabilities | 22,679,394 | 39,774,584 | 7,832,443 | 72,710,788 | ||||||||||||
NET ASSETS | $ | 222,797,094 | $ | 990,161,631 | $ | 437,436,520 | $ | 365,987,616 | ||||||||
Net assets consist of: | ||||||||||||||||
Paid-in capital | $ | 236,504,099 | $ | 1,144,207,978 | $ | 531,789,158 | $ | 371,228,302 | ||||||||
Distributions in excess of net investment income | (311,852 | ) | (514,676 | ) | (2,376,481 | ) | (1,743,321 | ) | ||||||||
Undistributed net realized gain | ||||||||||||||||
(accumulated net realized loss) | (15,529,100 | ) | (4,807,275 | ) | (23,008,041 | ) | 6,422,328 | |||||||||
Net unrealized appreciation (depreciation) on investments and translation of assets and liabilities in foreign currencies | 2,133,947 | (148,724,396 | ) | (68,968,116 | ) | (9,919,693 | ) | |||||||||
NET ASSETS | $ | 222,797,094 | $ | 990,161,631 | $ | 437,436,520 | $ | 365,987,616 | ||||||||
Shares outstandingc | 4,050,000 | 20,300,000 | 8,100,000 | 7,350,000 | ||||||||||||
Net asset value per share | $ | 55.01 | $ | 48.78 | $ | 54.00 | $ | 49.79 | ||||||||
a | Securities on loan with values of $5,940,126, $37,256,404, $6,416,340 and $76,554,113, respectively. See Note 5. |
b | Cost of foreign currencies: $274,157, $1,071,273, $405,018 and $502,919, 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 | 2010 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Statements of Operations (Unaudited)
iSHARES®, INC.
Six months ended February 28, 2010
iShares MSCI | ||||||||||||||||
Brazil Index Fund | BRIC Index Fund | Canada Index Fund | Chile Investable Market Index Fund | |||||||||||||
NET INVESTMENT INCOME | ||||||||||||||||
Dividends from unaffiliated issuersa | $ | 126,255,711 | $ | 4,604,014 | $ | 30,507,212 | $ | 1,665,521 | ||||||||
Interest from affiliated issuers (Note 2) | 3,582 | 207 | 476 | 230 | ||||||||||||
Securities lending income from affiliated issuers (Note 2) | 13,702 | 126,431 | 49,064 | – | ||||||||||||
Total investment income | 126,272,995 | 4,730,652 | 30,556,752 | 1,665,751 | ||||||||||||
EXPENSES | ||||||||||||||||
Investment advisory fees (Note 2) | 31,948,241 | 2,464,371 | 7,701,894 | 869,651 | ||||||||||||
�� | ||||||||||||||||
Total expenses | 31,948,241 | 2,464,371 | 7,701,894 | 869,651 | ||||||||||||
Net investment income | 94,324,754 | 2,266,281 | 22,854,858 | 796,100 | ||||||||||||
NET REALIZED AND UNREALIZED GAIN (LOSS) | ||||||||||||||||
Net realized gain (loss) from: | ||||||||||||||||
Investments in unaffiliated issuers | 188,163,583 | (9,186,734 | ) | (47,281,989 | ) | 619,522 | ||||||||||
In-kind redemptions | – | – | 109,323,294 | – | ||||||||||||
Foreign currency transactions | 7,160,673 | (345,666 | ) | 100,013 | (15,667 | ) | ||||||||||
Net realized gain (loss) | 195,324,256 | (9,532,400 | ) | 62,141,318 | 603,855 | |||||||||||
Net change in unrealized appreciation (depreciation) on: | ||||||||||||||||
Investments | 1,612,781,353 | 70,434,953 | 149,810,161 | 51,878,540 | ||||||||||||
Translation of assets and liabilities in foreign currencies | (1,222,827 | ) | 13,802 | 68,173 | 1,783 | |||||||||||
Net change in unrealized appreciation (depreciation) | 1,611,558,526 | 70,448,755 | 149,878,334 | 51,880,323 | ||||||||||||
Net realized and unrealized gain | 1,806,882,782 | 60,916,355 | 212,019,652 | 52,484,178 | ||||||||||||
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS | $ | 1,901,207,536 | $ | 63,182,636 | $ | 234,874,510 | $ | 53,280,278 | ||||||||
a | Net of foreign withholding tax of $14,068,123, $432,504, $5,379,631 and $680,655, respectively. |
See notes to financial statements.
FINANCIAL STATEMENTS | 35 |
Table of Contents
Statements of Operations (Unaudited) (Continued)
iSHARES®, INC.
Six months ended February 28, 2010
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 | $ | 1,339,924 | $ | 9,745,836 | $ | 6,727,741 | $ | 732,151 | ||||||||
Interest from affiliated issuers (Note 2) | 40 | 139 | 77 | 108 | ||||||||||||
Securities lending income from affiliated | 71,605 | 354,969 | 12,656 | 373,232 | ||||||||||||
Total investment income | 1,411,569 | 10,100,944 | 6,740,474 | 1,105,491 | ||||||||||||
EXPENSES | ||||||||||||||||
Investment advisory fees (Note 2) | 474,579 | 2,496,621 | 1,650,957 | 1,110,551 | ||||||||||||
Total expenses | 474,579 | 2,496,621 | 1,650,957 | 1,110,551 | ||||||||||||
Net investment income (loss) | 936,990 | 7,604,323 | 5,089,517 | (5,060 | ) | |||||||||||
NET REALIZED AND UNREALIZED GAIN (LOSS) | ||||||||||||||||
Net realized gain (loss) from: | ||||||||||||||||
Investments in unaffiliated issuers | (2,296,963 | ) | (12,549,672 | ) | (4,154,538 | ) | (3,881,689 | ) | ||||||||
In-kind redemptions | – | 45,484,447 | 34,870,831 | 20,875,511 | ||||||||||||
Foreign currency transactions | 12,664 | (51,798 | ) | (1,630 | ) | 22,115 | ||||||||||
Net realized gain (loss) | (2,284,299 | ) | 32,882,977 | 30,714,663 | 17,015,937 | |||||||||||
Net change in unrealized appreciation (depreciation) on: | ||||||||||||||||
Investments | 24,519,738 | 59,345,712 | (9,283,080 | ) | (16,050,200 | ) | ||||||||||
Translation of assets and liabilities in foreign currencies | (3,545 | ) | 15,888 | (2,247 | ) | (7,844 | ) | |||||||||
Net change in unrealized appreciation (depreciation) | 24,516,193 | 59,361,600 | (9,285,327 | ) | (16,058,044 | ) | ||||||||||
Net realized and unrealized gain | 22,231,894 | 92,244,577 | 21,429,336 | 957,893 | ||||||||||||
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS | $ | 23,168,884 | $ | 99,848,900 | $ | 26,518,853 | $ | 952,833 | ||||||||
a | Net of foreign withholding tax of $281,032, $—, $— and $126,084, respectively. |
See notes to financial statements.
36 | 2010 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, 2010 (Unaudited) | Year ended August 31, 2009 | Six months ended February 28, 2010 (Unaudited) | Year ended August 31, 2009 | |||||||||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||||||||||
OPERATIONS: | ||||||||||||||||
Net investment income | $ | 94,324,754 | $ | 192,844,870 | $ | 2,266,281 | $ | 3,504,150 | ||||||||
Net realized gain (loss) | 195,324,256 | (963,274,219 | ) | (9,532,400 | ) | (17,449,387 | ) | |||||||||
Net change in unrealized appreciation (depreciation) | 1,611,558,526 | 238,177,276 | 70,448,755 | 16,000,615 | ||||||||||||
Net increase (decrease) in net assets resulting from operations | 1,901,207,536 | (532,252,073 | ) | 63,182,636 | 2,055,378 | |||||||||||
DISTRIBUTIONS TO SHAREHOLDERS: | ||||||||||||||||
From net investment income | (346,504,321 | ) | (222,728,833 | ) | (4,169,870 | ) | (3,193,491 | ) | ||||||||
Total distributions to shareholders | (346,504,321 | ) | (222,728,833 | ) | (4,169,870 | ) | (3,193,491 | ) | ||||||||
CAPITAL SHARE TRANSACTIONS: | ||||||||||||||||
Proceeds from shares sold | 6,659,059 | 3,187,809,782 | 264,728,746 | 340,101,221 | ||||||||||||
Cost of shares redeemed | (39,063,496 | ) | (897,722,395 | ) | – | (2,215,782 | ) | |||||||||
Net increase (decrease) in net assets from capital share transactions | (32,404,437 | ) | 2,290,087,387 | 264,728,746 | 337,885,439 | |||||||||||
INCREASE IN NET ASSETS | 1,522,298,778 | 1,535,106,481 | 323,741,512 | 336,747,326 | ||||||||||||
NET ASSETS | ||||||||||||||||
Beginning of period | 8,777,366,483 | 7,242,260,002 | 497,838,873 | 161,091,547 | ||||||||||||
End of period | $ | 10,299,665,261 | $ | 8,777,366,483 | $ | 821,580,385 | $ | 497,838,873 | ||||||||
Undistributed (distributions in excess of) net investment income included in net assets at end of period | $ | (180,280,356 | ) | $ | 71,899,211 | $ | (661,306 | ) | $ | 1,242,283 | ||||||
SHARES ISSUED AND REDEEMED | ||||||||||||||||
Shares sold | 100,000 | 69,150,000 | 5,900,000 | 9,700,000 | ||||||||||||
Shares redeemed | (600,000 | ) | (17,350,000 | ) | – | (100,000 | ) | |||||||||
Net increase (decrease) in shares outstanding | (500,000 | ) | 51,800,000 | 5,900,000 | 9,600,000 | |||||||||||
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, 2010 (Unaudited) | Year ended August 31, 2009 | Six months ended February 28, 2010 (Unaudited) | Year ended August 31, 2009 | |||||||||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||||||||||
OPERATIONS: | ||||||||||||||||
Net investment income | $ | 22,854,858 | $ | 29,085,589 | $ | 796,100 | $ | 3,711,626 | ||||||||
Net realized gain (loss) | 62,141,318 | (88,665,380 | ) | 603,855 | (21,842,611 | ) | ||||||||||
Net change in unrealized appreciation (depreciation) | 149,878,334 | (320,275,596 | ) | 51,880,323 | 41,659,903 | |||||||||||
Net increase (decrease) in net assets resulting from operations | 234,874,510 | (379,855,387 | ) | 53,280,278 | 23,528,918 | |||||||||||
DISTRIBUTIONS TO SHAREHOLDERS: | ||||||||||||||||
From net investment income | (26,854,188 | ) | (29,274,634 | ) | (982,421 | ) | (3,316,556 | ) | ||||||||
Total distributions to shareholders | (26,854,188 | ) | (29,274,634 | ) | (982,421 | ) | (3,316,556 | ) | ||||||||
CAPITAL SHARE TRANSACTIONS: | ||||||||||||||||
Proceeds from shares sold | 995,479,759 | 1,115,573,096 | 110,015,354 | 234,309,554 | ||||||||||||
Cost of shares redeemed | (539,845,860 | ) | (383,866,414 | ) | (48,422,527 | ) | (67,475,216 | ) | ||||||||
Net increase in net assets from capital share transactions | 455,633,899 | 731,706,682 | 61,592,827 | 166,834,338 | ||||||||||||
INCREASE IN NET ASSETS | 663,654,221 | 322,576,661 | 113,890,684 | 187,046,700 | ||||||||||||
NET ASSETS | ||||||||||||||||
Beginning of period | 2,393,637,556 | 2,071,060,895 | 263,204,879 | 76,158,179 | ||||||||||||
End of period | $ | 3,057,291,777 | $ | 2,393,637,556 | $ | 377,095,563 | $ | 263,204,879 | ||||||||
Undistributed net investment income included in net assets at end of period | $ | 5,729,136 | $ | 9,728,466 | $ | 366,830 | $ | 553,151 | ||||||||
SHARES ISSUED AND REDEEMED | ||||||||||||||||
Shares sold | 38,200,000 | 50,600,000 | 1,950,000 | 5,850,000 | ||||||||||||
Shares redeemed | (20,900,000 | ) | (17,400,000 | ) | (1,050,000 | ) | (1,650,000 | ) | ||||||||
Net increase in shares outstanding | 17,300,000 | 33,200,000 | 900,000 | 4,200,000 | ||||||||||||
See notes to financial statements.
38 | 2010 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, 2010 (Unaudited) | Year ended August 31, 2009 | Six months ended February 28, 2010 (Unaudited) | Year ended August 31, 2009 | |||||||||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||||||||||
OPERATIONS: | ||||||||||||||||
Net investment income | $ | 936,990 | $ | 2,794,735 | $ | 7,604,323 | $ | 6,673,063 | ||||||||
Net realized gain (loss) | (2,284,299 | ) | (32,145,219 | ) | 32,882,977 | (266,827,625 | ) | |||||||||
Net change in unrealized appreciation (depreciation) | 24,516,193 | 2,015,065 | 59,361,600 | 12,202,418 | ||||||||||||
Net increase (decrease) in net assets resulting from operations | 23,168,884 | (27,335,419 | ) | 99,848,900 | (247,952,144 | ) | ||||||||||
DISTRIBUTIONS TO SHAREHOLDERS: | ||||||||||||||||
From net investment income | (1,587,992 | ) | (2,877,576 | ) | (10,960,027 | ) | (9,905,910 | ) | ||||||||
Total distributions to shareholders | (1,587,992 | ) | (2,877,576 | ) | (10,960,027 | ) | (9,905,910 | ) | ||||||||
CAPITAL SHARE TRANSACTIONS: | ||||||||||||||||
Proceeds from shares sold | 93,424,177 | 1,502,612 | 620,751,861 | 800,186,831 | ||||||||||||
Cost of shares redeemed | – | (67,698,624 | ) | (413,756,722 | ) | (803,735,494 | ) | |||||||||
Net increase (decrease) in net assets from capital share transactions | 93,424,177 | (66,196,012 | ) | 206,995,139 | (3,548,663 | ) | ||||||||||
INCREASE (DECREASE) IN NET ASSETS | 115,005,069 | (96,409,007 | ) | 295,884,012 | (261,406,717 | ) | ||||||||||
NET ASSETS | ||||||||||||||||
Beginning of period | 107,792,025 | 204,201,032 | 694,277,619 | 955,684,336 | ||||||||||||
End of period | $ | 222,797,094 | $ | 107,792,025 | $ | 990,161,631 | $ | 694,277,619 | ||||||||
Undistributed (distributions in excess of) net investment income included in net assets at end of period | $ | (311,852 | ) | $ | 339,150 | $ | (514,676 | ) | $ | 2,841,028 | ||||||
SHARES ISSUED AND REDEEMED | ||||||||||||||||
Shares sold | 1,750,000 | 50,000 | 12,900,000 | 22,900,000 | ||||||||||||
Shares redeemed | – | (1,950,000 | ) | (8,900,000 | ) | (25,000,000 | ) | |||||||||
Net increase (decrease) in shares outstanding | 1,750,000 | (1,900,000 | ) | 4,000,000 | (2,100,000 | ) | ||||||||||
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, 2010 (Unaudited) | Year ended August 31, 2009 | Six months ended February 28, 2010 (Unaudited) | Year ended August 31, 2009 | |||||||||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||||||||||
OPERATIONS: | ||||||||||||||||
Net investment income (loss) | $ | 5,089,517 | $ | 15,496,775 | $ | (5,060 | ) | $ | 2,499,255 | |||||||
Net realized gain (loss) | 30,714,663 | (51,609,671 | ) | 17,015,937 | (5,778,951 | ) | ||||||||||
Net change in unrealized appreciation (depreciation) | (9,285,327 | ) | 22,370,334 | (16,058,044 | ) | 4,879,633 | ||||||||||
Net increase (decrease) in net assets resulting from operations | 26,518,853 | (13,742,562 | ) | 952,833 | 1,599,937 | |||||||||||
DISTRIBUTIONS TO SHAREHOLDERS: | ||||||||||||||||
From net investment income | (9,778,818 | ) | (16,108,974 | ) | (1,919,801 | ) | (3,253,085 | ) | ||||||||
Total distributions to shareholders | (9,778,818 | ) | (16,108,974 | ) | (1,919,801 | ) | (3,253,085 | ) | ||||||||
CAPITAL SHARE TRANSACTIONS: | ||||||||||||||||
Proceeds from shares sold | 133,096,316 | 240,171,487 | 220,460,071 | 172,031,636 | ||||||||||||
Cost of shares redeemed | (201,128,100 | ) | (151,246,258 | ) | (95,940,296 | ) | (79,964,959 | ) | ||||||||
Net increase (decrease) in net assets from capital share transactions | (68,031,784 | ) | 88,925,229 | 124,519,775 | 92,066,677 | |||||||||||
INCREASE (DECREASE) IN NET ASSETS | (51,291,749 | ) | 59,073,693 | 123,552,807 | 90,413,529 | |||||||||||
NET ASSETS | ||||||||||||||||
Beginning of period | 488,728,269 | 429,654,576 | 242,434,809 | 152,021,280 | ||||||||||||
End of period | $ | 437,436,520 | $ | 488,728,269 | $ | 365,987,616 | $ | 242,434,809 | ||||||||
Undistributed (distributions in excess of) net investment income included in net assets at end of period | $ | (2,376,481 | ) | $ | 2,312,820 | $ | (1,743,321 | ) | $ | 181,540 | ||||||
SHARES ISSUED AND REDEEMED | ||||||||||||||||
Shares sold | 2,400,000 | 5,600,000 | 4,200,000 | 4,250,000 | ||||||||||||
Shares redeemed | (3,700,000 | ) | (3,900,000 | ) | (1,900,000 | ) | (2,100,000 | ) | ||||||||
Net increase (decrease) in shares outstanding | (1,300,000 | ) | 1,700,000 | 2,300,000 | 2,150,000 | |||||||||||
See notes to financial statements.
40 | 2010 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, 2010 | Year ended Aug. 31, 2009 | Year ended Aug. 31, 2008 | Year ended Aug. 31, 2007 | Year ended Aug. 31, 2006 | Year ended Aug. 31, 2005 | |||||||||||||||||||
Net asset value, beginning of period | $ | 58.26 | $ | 73.27 | $ | 61.59 | $ | 39.09 | $ | 28.18 | $ | 16.96 | ||||||||||||
Income from investment operations: | ||||||||||||||||||||||||
Net investment incomea | 0.63 | 1.56 | 1.93 | 1.09 | 1.00 | 0.89 | ||||||||||||||||||
Net realized and unrealized | 12.02 | (14.63 | ) | 11.59 | 22.35 | 10.49 | 10.79 | |||||||||||||||||
Total from investment operations | 12.65 | (13.07 | ) | 13.52 | 23.44 | 11.49 | 11.68 | |||||||||||||||||
Less distributions from: | ||||||||||||||||||||||||
Net investment income | (2.31 | ) | (1.94 | ) | (1.41 | ) | (0.94 | ) | (0.58 | ) | (0.46 | ) | ||||||||||||
Net realized gain | – | – | (0.43 | ) | – | – | – | |||||||||||||||||
Total distributions | (2.31 | ) | (1.94 | ) | (1.84 | ) | (0.94 | ) | (0.58 | ) | (0.46 | ) | ||||||||||||
Net asset value, end of period | $ | 68.60 | $ | 58.26 | $ | 73.27 | $ | 61.59 | $ | 39.09 | $ | 28.18 | ||||||||||||
Total return | 21.55 | %b | (16.05 | )% | 21.58 | % | 60.82 | % | 41.13 | % | 69.72 | % | ||||||||||||
Ratios/Supplemental data: | ||||||||||||||||||||||||
Net assets, end of period (000s) | $ | 10,299,665 | $ | 8,777,366 | $ | 7,242,260 | $ | 4,434,334 | $ | 2,468,295 | $ | 552,285 | ||||||||||||
Ratio of expenses to average net assetsc | 0.61 | % | 0.65 | % | 0.63 | % | 0.69 | % | 0.70 | % | 0.74 | % | ||||||||||||
Ratio of expenses to average net assets exclusive of foreign taxes | n/a | n/a | 0.63 | % | 0.68 | % | n/a | n/a | ||||||||||||||||
Ratio of net investment income to average net assetsc | 1.79 | % | 3.38 | % | 2.37 | % | 2.17 | % | 2.65 | % | 3.94 | % | ||||||||||||
Portfolio turnover rated | 9 | % | 30 | % | 30 | % | 22 | % | 15 | % | 48 | % |
a | Based on average shares outstanding throughout each period. |
b | Not annualized. |
c | Annualized for periods of less than one year. |
d | Portfolio turnover rates include portfolio transactions that are executed as a result of the Fund processing capital share transactions in Creation Units solely for cash in U.S. dollars. Excluding such transactions, the portfolio turnover rate for the six months ended February 28, 2010 and the years ended August 31, 2009, August 31, 2008, August 31, 2007, August 31, 2006 and August 31, 2005 would have been 9%, 14%, 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, 2010 (Unaudited) | Year ended Aug. 31, 2009 | Period from Nov. 12, 2007a to Aug. 31, 2008 | ||||||||||
Net asset value, beginning of period | $ | 37.57 | $ | 44.13 | $ | 56.50 | ||||||
Income from investment operations: | ||||||||||||
Net investment incomeb | 0.14 | 0.58 | 0.72 | |||||||||
Net realized and unrealized gain (loss) | 5.43 | (6.60 | ) | (12.93 | ) | |||||||
Total from investment operations | 5.57 | (6.02 | ) | (12.21 | ) | |||||||
Less distributions from: | ||||||||||||
Net investment income | (0.24 | ) | (0.54 | ) | (0.16 | ) | ||||||
Total distributions | (0.24 | ) | (0.54 | ) | (0.16 | ) | ||||||
Net asset value, end of period | $ | 42.90 | $ | 37.57 | $ | 44.13 | ||||||
Total return | 14.77 | %c | (13.08 | )% | (21.65 | )%c | ||||||
Ratios/Supplemental data: | ||||||||||||
Net assets, end of period (000s) | $ | 821,580 | $ | 497,839 | $ | 161,092 | ||||||
Ratio of expenses to average net assetsd | 0.69 | % | 0.72 | % | 0.72 | % | ||||||
Ratio of expenses to average net assets exclusive of foreign taxesd | n/a | n/a | 0.72 | % | ||||||||
Ratio of net investment income to average net assetsd | 0.63 | % | 1.87 | % | 1.74 | % | ||||||
Portfolio turnover ratee | 5 | % | 7 | % | 9 | % |
a | Commencement of operations. |
b | Based on average shares outstanding throughout each period. |
c | Not annualized. |
d | Annualized for periods of less than one year. |
e | Portfolio turnover rates exclude portfolio securities received or delivered 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, 2010, the year ended August 31, 2009 and the period ended August 31, 2008 would have been 1%, 6%, and 2%, respectively. See Note 4. |
See notes to financial statements.
42 | 2010 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Financial Highlights (Continued)
iSHARES®, INC.
(For a share outstanding throughout each period)
iShares MSCI Canada Index Fund | ||||||||||||||||||||||||
Six months ended Feb. 28, 2010 (Unaudited) | Year ended Aug. 31, 2009 | Year ended Aug. 31, 2008 | Year ended Aug. 31, 2007 | Year ended Aug. 31, 2006 | Year ended Aug. 31, 2005 | |||||||||||||||||||
Net asset value, beginning of period | $ | 23.70 | $ | 30.55 | $ | 29.87 | $ | 24.69 | $ | 20.30 | $ | 14.33 | ||||||||||||
Income from investment operations: | ||||||||||||||||||||||||
Net investment incomea | 0.20 | 0.41 | 0.47 | 0.35 | 0.25 | 0.17 | ||||||||||||||||||
Net realized and unrealized gain (loss) | 2.18 | (6.84 | ) | 0.72 | 5.11 | 4.29 | 6.00 | |||||||||||||||||
Total from investment operations | 2.38 | (6.43 | ) | 1.19 | 5.46 | 4.54 | 6.17 | |||||||||||||||||
Less distributions from: | ||||||||||||||||||||||||
Net investment income | (0.24 | ) | (0.42 | ) | (0.51 | ) | (0.28 | ) | (0.15 | ) | (0.20 | ) | ||||||||||||
Total distributions | (0.24 | ) | (0.42 | ) | (0.51 | ) | (0.28 | ) | (0.15 | ) | (0.20 | ) | ||||||||||||
Net asset value, end of period | $ | 25.84 | $ | 23.70 | $ | 30.55 | $ | 29.87 | $ | 24.69 | $ | 20.30 | ||||||||||||
Total return | 10.05 | %b | (20.51 | )% | 3.88 | % | 22.33 | % | 22.46 | % | 43.35 | % | ||||||||||||
Ratios/Supplemental data: | ||||||||||||||||||||||||
Net assets, end of period (000s) | $ | 3,057,292 | $ | 2,393,638 | $ | 2,071,061 | $ | 1,323,122 | $ | 1,101,161 | $ | 420,301 | ||||||||||||
Ratio of expenses to average net assetsc | 0.54 | % | 0.55 | % | 0.52 | % | 0.52 | % | 0.54 | % | 0.57 | % | ||||||||||||
Ratio of expenses to average net assets exclusive of foreign taxes | n/a | 0.55 | % | n/a | 0.52 | % | n/a | n/a | ||||||||||||||||
Ratio of net investment income to average net assetsc | 1.59 | % | 2.00 | % | 1.46 | % | 1.32 | % | 1.09 | % | 1.00 | % | ||||||||||||
Portfolio turnover rated | 4 | % | 6 | % | 11 | % | 8 | % | 20 | % | 9 | % |
a | Based on average shares outstanding throughout each period. |
b | Not annualized. |
c | Annualized for periods of less than one year. |
d | Portfolio turnover rates exclude portfolio securities received or delivered as a result of processing capital share transactions in Creation Units. |
See notes to financial statements.
FINANCIAL HIGHLIGHTS | 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, 2010 (Unaudited) | Year ended Aug. 31, 2009 | Period from Nov. 12, 2007a to Aug. 31, 2008 | ||||||||||
Net asset value, beginning of period | $ | 44.61 | $ | 44.80 | $ | 48.84 | ||||||
Income from investment operations: | ||||||||||||
Net investment incomeb | 0.14 | 0.76 | 0.92 | |||||||||
Net realized and unrealized gain (loss) | 10.90 | (0.42 | ) | (4.38 | ) | |||||||
Total from investment operations | 11.04 | 0.34 | (3.46 | ) | ||||||||
Less distributions from: | ||||||||||||
Net investment income | (0.19 | ) | (0.53 | ) | (0.58 | ) | ||||||
Total distributions | (0.19 | ) | (0.53 | ) | (0.58 | ) | ||||||
Net asset value, end of period | $ | 55.46 | $ | 44.61 | $ | 44.80 | ||||||
Total return | 26.69 | %c | 0.89 | % | (7.15 | )%c | ||||||
Ratios/Supplemental data: | ||||||||||||
Net assets, end of period (000s) | $ | 377,096 | $ | 263,205 | $ | 76,158 | ||||||
Ratio of expenses to average net assetsd | 0.61 | % | 0.65 | % | 0.63 | % | ||||||
Ratio of net investment income to average net assetsd | 0.56 | % | 1.98 | % | 2.38 | % | ||||||
Portfolio turnover ratee | 20 | % | 53 | % | 16 | % |
a | Commencement of operations. |
b | Based on average shares outstanding throughout each period. |
c | Not annualized. |
d | Annualized for periods of less than one year. |
e | Portfolio turnover rates include portfolio transactions that are executed as a result of the Fund processing capital share transactions in Creation Units solely for cash in U.S. dollars. Excluding such transactions, the portfolio turnover rate for the six months ended February 28, 2010, the year ended August 31, 2009 and the period ended August 31, 2008 would have been 2%, 14% and 16%, respectively. See Note 4. |
See notes to financial statements.
44 | 2010 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 | Year ended Aug. 31, 2009 | Period from Mar. 26, 2008a to Aug. 31, 2008 | ||||||||||
Net asset value, beginning of period | $ | 46.87 | $ | 48.62 | $ | 50.33 | ||||||
Income from investment operations: | ||||||||||||
Net investment incomeb | 0.31 | 0.98 | 0.21 | |||||||||
Net realized and unrealized | 8.35 | (1.75 | ) | (1.92 | ) | |||||||
Total from investment operations | 8.66 | (0.77 | ) | (1.71 | ) | |||||||
Less distributions from: | ||||||||||||
Net investment income | (0.52 | ) | (0.98 | ) | – | |||||||
Total distributions | (0.52 | ) | (0.98 | ) | – | |||||||
Net asset value, end of period | $ | 55.01 | $ | 46.87 | $ | 48.62 | ||||||
Total return | 18.51 | %c | (0.63 | )% | (3.40 | )%c | ||||||
Ratios/Supplemental data: | ||||||||||||
Net assets, end of period (000s) | $ | 222,797 | $ | 107,792 | $ | 204,201 | ||||||
Ratio of expenses to average net assetsd | 0.61 | % | 0.66 | % | 0.63 | % | ||||||
Ratio of net investment income to average net assetsd | 1.20 | % | 2.66 | % | 0.93 | % | ||||||
Portfolio turnover ratee | 7 | % | 27 | % | 8 | % |
a | Commencement of operations. |
b | Based on average shares outstanding throughout each period. |
c | Not annualized. |
d | Annualized for periods of less than one year. |
e | Portfolio turnover rates exclude portfolio securities received or delivered as a result of processing capital share transactions in Creation Units. |
See notes to financial statements.
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 ended Feb. 28, 2010 (Unaudited) | Year ended Aug. 31, 2009 | Year ended Aug. 31, 2008 | Year ended Aug. 31, 2007 | Year ended Aug. 31, 2006 | Year ended Aug. 31, 2005 | |||||||||||||||||||
Net asset value, beginning of period | $ | 42.59 | $ | 51.94 | $ | 58.35 | $ | 41.30 | $ | 29.04 | $ | 19.35 | ||||||||||||
Income from investment operations: | ||||||||||||||||||||||||
Net investment incomea | 0.38 | 0.43 | 1.40 | 0.64 | 0.76 | 0.42 | ||||||||||||||||||
Net realized and unrealized gain (loss) | 6.32 | (9.17 | ) | (6.21 | ) | 16.87 | 11.98 | 9.55 | ||||||||||||||||
Total from investment operations | 6.70 | (8.74 | ) | (4.81 | ) | 17.51 | 12.74 | 9.97 | ||||||||||||||||
Less distributions from: | ||||||||||||||||||||||||
Net investment income | (0.51 | ) | (0.61 | ) | (1.60 | ) | (0.46 | ) | (0.48 | ) | (0.28 | ) | ||||||||||||
Total distributions | (0.51 | ) | (0.61 | ) | (1.60 | ) | (0.46 | ) | (0.48 | ) | (0.28 | ) | ||||||||||||
Net asset value, end of period | $ | 48.78 | $ | 42.59 | $ | 51.94 | $ | 58.35 | $ | 41.30 | $ | 29.04 | ||||||||||||
Total return | 15.73 | %b | (16.50 | )% | (8.44 | )% | 42.58 | % | 44.11 | % | 51.77 | % | ||||||||||||
Ratios/Supplemental data: | ||||||||||||||||||||||||
Net assets, end of period (000s) | $ | 990,162 | $ | 694,278 | $ | 955,684 | $ | 1,382,810 | $ | 764,107 | $ | 255,557 | ||||||||||||
Ratio of expenses to average net assetsc | 0.54 | % | 0.55 | % | 0.52 | % | 0.51 | % | 0.54 | % | 0.57 | % | ||||||||||||
Ratio of net investment income to average net assetsc | 1.63 | % | 1.25 | % | 2.42 | % | 1.19 | % | 2.06 | % | 1.70 | % | ||||||||||||
Portfolio turnover rated | 8 | % | 13 | % | 13 | % | 14 | % | 12 | % | 9 | % |
a | Based on average shares outstanding throughout each period. |
b | Not annualized. |
c | Annualized for periods of less than one year. |
d | Portfolio turnover rates exclude portfolio securities received or delivered as a result of processing capital share transactions in Creation Units. |
See notes to financial statements.
46 | 2010 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 ended Feb. 28, 2010 (Unaudited) | Year ended Aug. 31, 2009 | Year ended Aug. 31, 2008a | Year ended Aug. 31, 2007a | Year ended Aug. 31, 2006a | Year ended Aug. 31, 2005a | |||||||||||||||||||
Net asset value, beginning of period | $ | 51.99 | $ | 55.80 | $ | 62.26 | $ | 48.84 | $ | 41.50 | $ | 29.96 | ||||||||||||
Income from investment operations: | ||||||||||||||||||||||||
Net investment incomeb | 0.51 | 1.94 | 2.28 | 1.50 | 1.44 | 0.96 | ||||||||||||||||||
Net realized and unrealized gain (loss) | 2.59 | (3.84 | ) | (6.02 | ) | 13.18 | 6.89 | 11.18 | ||||||||||||||||
Total from investment operations | 3.10 | (1.90 | ) | (3.74 | ) | 14.68 | 8.33 | 12.14 | ||||||||||||||||
Less distributions from: | ||||||||||||||||||||||||
Net investment income | (1.09 | ) | (1.91 | ) | (2.72 | ) | (1.26 | ) | (0.99 | ) | (0.60 | ) | ||||||||||||
Total distributions | (1.09 | ) | (1.91 | ) | (2.72 | ) | (1.26 | ) | (0.99 | ) | (0.60 | ) | ||||||||||||
Net asset value, end of period | $ | 54.00 | $ | 51.99 | $ | 55.80 | $ | 62.26 | $ | 48.84 | $ | 41.50 | ||||||||||||
Total return | 5.96 | %c | (2.23 | )% | (6.18 | )% | 30.34 | % | 20.06 | % | 40.62 | % | ||||||||||||
Ratios/Supplemental data: | ||||||||||||||||||||||||
Net assets, end of period (000s) | $ | 437,437 | $ | 488,728 | $ | 429,655 | $ | 466,940 | $ | 297,898 | $ | 153,530 | ||||||||||||
Ratio of expenses to average net assetsd | 0.61 | % | 0.66 | % | 0.63 | % | 0.68 | % | 0.70 | % | 0.74 | % | ||||||||||||
Ratio of net investment income to average net assetsd | 1.87 | % | 4.81 | % | 3.61 | % | 2.58 | % | 2.79 | % | 2.62 | % | ||||||||||||
Portfolio turnover ratee | 2 | % | 16 | % | 21 | % | 8 | % | 7 | % | 32 | % |
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 | 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 | 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, 2010 | Year ended Aug. 31, 2009 | Period from to Aug. 31, 2008 | ||||||||||
Net asset value, beginning of period | $ | 48.01 | $ | 52.42 | $ | 50.30 | ||||||
Income from investment operations: | ||||||||||||
Net investment income (loss)b | (0.00 | )c | 0.78 | 0.83 | ||||||||
Net realized and unrealized gain (loss) | 2.04 | (4.22 | ) | 1.29 | ||||||||
Total from investment operations | 2.04 | (3.44 | ) | 2.12 | ||||||||
Less distributions from: | ||||||||||||
Net investment income | (0.26 | ) | (0.97 | ) | – | |||||||
Total distributions | (0.26 | ) | (0.97 | ) | – | |||||||
Net asset value, end of period | $ | 49.79 | $ | 48.01 | $ | 52.42 | ||||||
Total return | 4.25 | %d | (5.56 | )% | 4.22 | %d | ||||||
Ratios/Supplemental data: | ||||||||||||
Net assets, end of period (000s) | $ | 365,988 | $ | 242,435 | $ | 152,021 | ||||||
Ratio of expenses to average net assetse | 0.61 | % | 0.65 | % | 0.63 | % | ||||||
Ratio of net investment income (loss) to average net assetse | (0.00 | )%c | 2.39 | % | 3.78 | % | ||||||
Portfolio turnover ratef | 5 | % | 16 | % | 27 | % |
a | Commencement of operations. |
b | Based on average shares outstanding throughout each period. |
c | Rounds to less than $0.01 or 0.01%, as applicable. |
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 | 2010 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. 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 non-U.S. issuers that may trade in non-U.S. markets. This 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 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”) using 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 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 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”); |
NOTESTO FINANCIAL STATEMENTS | 49 |
Table of Contents
Notes to Financial Statements (Unaudited) (Continued)
iSHARES®, INC.
• | 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”). |
The availability of observable inputs can vary from security to security and is affected by a wide variety of factors, including, for example, the type of security, whether the security is new and not yet established in the marketplace, the liquidity of markets, and other characteristics particular to the security. Inputs may include price information, volatility statistics, specific and broad credit data, liquidity statistics, and other factors. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3 of the fair value hierarchy.
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. 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. 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 inputs such as quoted market prices, dealer quotations or valuations provided by alternative pricing sources supported by observable inputs are classified within Level 2. These generally include 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 Level 2 investments 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, recent transactions in the same or similar instruments, 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 amount
50 | 2010 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Notes to Financial Statements (Unaudited) (Continued)
iSHARES®, INC.
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.
On Saturday, February 27, 2010, after the last business day but before the end of the reporting period, an earthquake struck the coast of Chile, near the capital city of Santiago. In accordance with, and solely for purposes of, the requirements of Financial Accounting Standards Board Accounting Standards Codification 820-10-35-43 for significant events occurring after the close of market but before the end of the measurement period, the iShares MSCI Chile Investable Market Index Fund adjusted the quoted prices of the securities in its portfolio using a market approach in order to better reflect the fair value of its securities as of Sunday, February 28, 2010. The NAV of the iShares MSCI Chile Investable Market Index Fund for Monday, March 1, 2010 was calculated using the usual methodology in accordance with the pricing policy and procedures.
The following table summarizes the values of each Fund’s investments according to the fair value hierarchy as of February 28, 2010. The breakdown of each Fund’s investments into major categories is disclosed in its respective Schedule of Investments.
Investments in Securities | ||||||||||||
iShares MSCI Index Fund and Asset Class | Level 1 | Level 2 | Level 3 | Total | ||||||||
Brazil | $ | 10,246,470,565 | $ | – | $ | – | $ | 10,246,470,565 | ||||
BRIC | 855,357,430 | – | – | 855,357,430 | ||||||||
Canada | 3,058,181,144 | – | – | 3,058,181,144 | ||||||||
Chile Investable Market | ||||||||||||
Common Stocks | – | – | 376,288,157 | 376,288,157 | ||||||||
Short-Term Investments | 428,693 | – | – | 428,693 | ||||||||
Total Chile Investable Market | 428,693 | – | 376,288,157 | 376,716,850 | ||||||||
Israel Capped Investable Market | 228,884,116 | – | – | 228,884,116 | ||||||||
Mexico Investable Market | 1,028,777,433 | – | – | 1,028,777,433 | ||||||||
South Africa | 443,638,241 | – | – | 443,638,241 | ||||||||
Turkey Investable Market | 438,087,681 | – | – | 438,087,681 |
The following table provides the reconciliation of investments in which significant unobservable inputs (Level 3) were used in determining fair value for the iShares MSCI Chile Investable Market Index Fund for the six months ended February 28, 2010:
Balance at Beginning of Period | Realized Gain (Loss) and Change in Unrealized Appreciation (Depreciation) | Net Purchases (Sales) | Net Transfers In (Out) | Balance at End of Period | Net Change in End of Period | |||||||||||
$ | – | $ | – | $ | – | $ | 376,288,157 | $ | 376,288,157 | $ | 86,006,212 |
NOTESTO FINANCIAL STATEMENTS | 51 |
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. Non-cash dividends received in the form of stock in an elective dividend, if any, are recorded as dividend income at fair value. Distributions received by the Funds may include a return of capital that is estimated by management. Such amounts are recorded as a reduction of the cost of investments or reclassified to capital gains. 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. 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, 2010, if any, are reflected in the Funds’ Statements of Assets and Liabilities.
DISTRIBUTIONS TO SHAREHOLDERS
Distributions to shareholders from net investment income, if any, 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, 2010.
52 | 2010 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
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Notes to Financial Statements (Unaudited) (Continued)
iSHARES®, INC.
The Funds had tax basis net capital loss carryforwards as of August 31, 2009, 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 | Expiring 2017 | Total | ||||||||||||||||||
Brazil | $ | – | $ | – | $ | – | $ | – | $ | – | $ | – | $ | – | $ | 29,287,453 | $ | 29,287,453 | |||||||||
BRIC | – | – | – | – | – | – | – | 1,540,740 | 1,540,740 | ||||||||||||||||||
Canada | – | – | – | 2,931,648 | – | 5,363,291 | 5,107,471 | 27,886,883 | 41,289,293 | ||||||||||||||||||
Chile Investable Market | – | – | – | – | – | – | – | 1,886,881 | 1,886,881 | ||||||||||||||||||
Israel Capped Investable Market | – | – | – | – | – | – | – | 784,479 | 784,479 | ||||||||||||||||||
Mexico Investable Market | 47,326 | 2,329,290 | 3,136,171 | 12,912 | 632,766 | – | 853,150 | 8,973,988 | 15,985,603 | ||||||||||||||||||
South Africa | – | – | 527,613 | – | 260,738 | 1,607,845 | 972,024 | 15,339,464 | 18,707,684 | ||||||||||||||||||
Turkey Investable Market | – | – | – | – | – | – | – | 720,636 | 720,636 |
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, 2010, 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 | ||||||||||
Brazil | $ | 6,754,475,000 | $ | 3,557,926,171 | $ | (65,930,606 | ) | $ | 3,491,995,565 | |||||
BRIC | 820,901,907 | 63,734,216 | (29,278,693 | ) | 34,455,523 | |||||||||
Canada | 3,353,911,576 | 875,733 | (296,606,165 | ) | (295,730,432 | ) | ||||||||
Chile Investable Market | 300,667,900 | 76,150,726 | (101,776 | ) | 76,048,950 | |||||||||
Israel Capped Investable Market | 231,100,325 | 16,769,411 | (18,985,620 | ) | (2,216,209 | ) | ||||||||
Mexico Investable Market | 1,191,607,148 | 25,442,432 | (188,272,147 | ) | (162,829,715 | ) | ||||||||
South Africa | 524,396,734 | 6,284,238 | (87,042,731 | ) | (80,758,493 | ) | ||||||||
Turkey Investable Market | 452,726,981 | 7,248,808 | (21,888,108 | ) | (14,639,300 | ) |
Management has reviewed the tax positions as of February 28, 2010, 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.
NOTESTO FINANCIAL STATEMENTS | 53 |
Table of Contents
Notes to Financial Statements (Unaudited) (Continued)
iSHARES®, INC.
2. INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES
On December 1, 2009, Barclays PLC (“Barclays”) completed the sale of its interest in BlackRock Institutional Trust Company, N.A. (“BTC”), formerly known as Barclays Global Investors, N.A., and certain affiliated companies to BlackRock, Inc. (“BlackRock”, and such sale, the “Transaction”). BTC is a wholly-owned subsidiary of BlackRock.
The PNC Financial Services Group, Inc. (“PNC”), Bank of America Corporation (“BAC”) and Barclays are the largest stockholders of BlackRock. Due to the ownership structure, PNC is an affiliate for 1940 Act purposes, but BAC and Barclays are not.
Under the 1940 Act, upon completion of the Transaction on December 1, 2009, each Fund’s investment advisory agreement with BlackRock Fund Advisors (“BFA”), formerly known as Barclays Global Fund Advisors, was automatically terminated. The Board and shareholders of the Funds approved a new investment advisory agreement with BFA. The investment advisory fee rates and expense arrangements for the Funds remained the same after the Transaction.
Pursuant to an Investment Advisory Agreement with the Company, BFA manages the investment of each Fund’s assets. BFA is a California corporation indirectly owned by BlackRock. Under the Investment Advisory Agreement, BFA 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 Canada and iShares MSCI Mexico Investable Market Index Funds, BFA 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, BFA 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 |
54 | 2010 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
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Notes to Financial Statements (Unaudited) (Continued)
iSHARES®, INC.
For its investment advisory services to the iShares MSCI BRIC Index Fund, BFA 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 |
The U.S. Securities and Exchange Commission has issued an exemptive order which permits BTC to serve as securities lending agent for the Funds, subject to applicable conditions. BTC is an affiliate of BFA, the Funds’ investment adviser. As securities lending agent, BTC 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, 2010, BTC earned securities lending agent fees as follows:
iShares MSCI Index Fund | Securities Lending Agent Fees | iShares MSCI Index Fund | Securities Lending Agent Fees | |||||
Brazil | $9,011 | Mexico Investable Market | $219,478 | |||||
BRIC | 85,793 | South Africa | 7,453 | |||||
Canada | 33,335 | Turkey Investable Market | 236,561 | |||||
Israel Capped Investable Market | 46,037 |
Each Fund may invest its positive cash balances in certain money market funds managed by BFA or an affiliate. The income earned on these temporary cash investments is included in interest from affiliated issuers in the Statements of Operations.
Certain directors and officers of the Company are also officers of BTC and/or BFA.
3. INVESTMENT PORTFOLIO TRANSACTIONS
Purchases and sales of investments (excluding in-kind transactions and short-term investments) for the six months ended February 28, 2010 were as follows:
iShares MSCI Index Fund | Purchases | Sales | ||||
Brazil | $ | 906,860,289 | $ | 1,195,212,229 | ||
BRIC | 122,148,679 | 32,139,411 | ||||
Canada | 113,029,276 | 112,641,341 | ||||
Chile Investable Market | 118,798,019 | 57,947,295 | ||||
Israel Capped Investable Market | 10,804,287 | 10,831,163 | ||||
Mexico Investable Market | 70,029,535 | 73,250,357 | ||||
South Africa | 8,315,455 | 12,289,675 | ||||
Turkey Investable Market | 22,118,126 | 18,005,225 |
NOTESTO FINANCIAL STATEMENTS | 55 |
Table of Contents
Notes to Financial Statements (Unaudited) (Continued)
iSHARES®, INC.
In-kind transactions (see Note 4) for the six months ended February 28, 2010 were as follows:
iShares MSCI Index Fund | In-kind Purchases | In-kind Sales | ||||
BRIC | $ | 171,405,050 | $ | – | ||
Canada | 990,106,352 | 536,723,371 | ||||
Israel Capped Investable Market | 93,051,537 | – | ||||
Mexico Investable Market | 619,773,069 | 413,188,779 | ||||
South Africa | 132,144,049 | 200,916,451 | ||||
Turkey Investable Market | 217,463,382 | 93,537,724 |
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 an optimized 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 Bank and Trust Company, the administrator, to offset transfer and other transaction costs associated with the issuance and redemption of Creation Units, including Creation Units for cash. Investors transacting in Creation Units for cash pay an additional variable charge to compensate the relevant Fund for brokerage and market impact expenses relating to investing in portfolio securities.
From time to time, settlement of securities related to in-kind contributions or in-kind redemptions may be delayed. In such cases, securities related to in-kind contributions are reflected as “Due from custodian” and securities related to in-kind redemptions are reflected as “Securities related to in-kind transactions” in the Statements of Assets and Liabilities.
5. LOANS OF PORTFOLIO SECURITIES
Each Fund may lend its investment securities to approved borrowers, such as brokers, dealers and other financial institutions. The borrower pledges and maintains with the Fund collateral consisting of cash, an irrevocable letter of credit issued by a bank, or securities issued or guaranteed by the U.S. government. The initial collateral received by each Fund is required to have a value of at least 102% of the market value of the loaned securities for securities traded on U.S. exchanges and a value of at least 105% for all other securities. The collateral is maintained thereafter, at a value equal to at least 100% of the current market value of the securities on loan. The risks 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 BFA; such reinvestments are subject to investment risk.
As of February 28, 2010, certain Funds had loaned securities which were collateralized by cash. The cash collateral received was invested in money market funds managed by BFA. The market value of the securities on loan as of February 28, 2010 and the value of the related
56 | 2010 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Notes to Financial Statements (Unaudited) (Continued)
iSHARES®, INC.
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 BTC as securities lending agent.
6. SUBSEQUENT EVENTS
Management has evaluated the impact of all subsequent events on the Funds through the date the financial statements were available to be issued and has determined that there were no subsequent events requiring adjustment or disclosure in the financial statements.
NOTESTO FINANCIAL STATEMENTS | 57 |
Table of Contents
Shareholder Meeting Results (Unaudited)
iSHARES®, INC.
Two separate special meetings of shareholders of iShares, Inc. were held on November 4, 2009. The shareholder meetings for all the Funds except for the iShares MSCI Israel Capped Investable Market, iShares MSCI South Africa and iShares MSCI Turkey Investable Market Index Funds were adjourned until November 19, 2009. The shareholder meetings for the iShares MSCI Brazil and iShares MSCI Mexico Investable Market Index Funds were subsequently adjourned until November 30, 2009 and on that date were further adjourned until December 22, 2009, at which time the shareholders approved the new advisory agreement. The proposals acted upon by shareholders at the special meetings and the results of the shareholder vote were as follows:
First Meeting
Shareholders of the Funds approved Proposals 1 and 2.
Proposal 1
To approve a new investment advisory agreement between the Company and Barclays Global Fund Advisors (“BGFA”), on behalf of each Fund, which took effect upon the consummation of the Barclays PLC binding agreement to sell its interest in BGFA and certain affiliated companies to BlackRock, Inc. (the “Transaction”).
iShares MSCI Index Fund | Votes For | Votes Against | Votes Abstaining | Broker Non- Votes* | ||||
Brazil | 64,454,749 | 1,757,924 | 3,791,078 | 10,553,765 | ||||
BRIC | 5,983,540 | 66,927 | 76,988 | 707,288 | ||||
Canada | 36,264,143 | 1,144,751 | 11,403,542 | 3,939,439 | ||||
Chile Investable Market | 3,173,220 | 42,599 | 27,837 | 436,038 | ||||
Israel Capped Investable Market | 1,482,415 | 11,995 | 6,038 | – | ||||
Mexico Investable Market | 8,400,358 | 102,386 | 362,633 | 402,415 | ||||
South Africa | 4,661,441 | 65,837 | 42,663 | – | ||||
Turkey Investable Market | 2,087,839 | 15,034 | 24,658 | – |
Proposal 2
To approve a change in the classification of certain Funds’ investment objective from a fundamental investment policy to a non-fundamental investment policy.
iShares MSCI Index Fund | Votes For | Votes Against | Votes Abstaining | Broker Non- Votes* | ||||
Brazil | 62,412,691 | 3,418,675 | 4,172,385 | 10,553,765 | ||||
Canada | 35,369,590 | 1,747,288 | 11,694,703 | 3,940,294 |
58 | 2010 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Shareholder Meeting Results (Unaudited) (Continued)
iSHARES®, INC.
Second Meeting
This proposal was approved by the shareholders of the Company on November 4, 2009. All nominees who previously served as Directors of the Company were re-elected and the term of their election commenced immediately. Robert S. Kapito was newly elected as a Director to the Company and the term of his election took effect upon the consummation of the Transaction.
Proposal 1**
To elect a Board of Directors of the Company.
Independent Director | Votes For | Votes Withheld | ||
George G.C. Parker | 1,597,646,058 | 46,083,560 | ||
J. Darrell Duffie | 1,517,311,684 | 126,417,934 | ||
Cecilia H. Herbert | 1,599,757,544 | 43,972,074 | ||
Charles A. Hurty | 1,599,463,459 | 44,266,159 | ||
John E. Kerrigan | 1,599,938,757 | 43,790,861 | ||
John E. Martinez | 1,599,890,206 | 43,839,412 | ||
Robert H. Silver | 1,601,631,280 | 42,098,338 | ||
Interested Director | Votes For | Votes Withheld | ||
Robert S. Kapito | 1,600,119,598 | 43,610,020 | ||
Lee T. Kranefuss | 1,117,041,744 | 526,687,874 |
* | Broker non-votes are proxies received by the Fund from brokers or nominees who did not receive instructions from the beneficial owner or other persons entitled to vote and who have no discretionary power to vote on a particular matter. Broker non-votes have the effect of a vote against the proposal. |
** | Denotes Company-wide proposal and voting results. |
SHAREHOLDER MEETING RESULTS | 59 |
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 Russell Domestic Index Funds | Trading Symbol | |
iShares Russell 3000 | IWV | |
iShares Russell 3000 Growth | IWZ | |
iShares Russell 3000 Value | IWW | |
iShares Russell Top 200 | IWL | |
iShares Russell Top 200 Growth | IWY | |
iShares Russell Top 200 Value | IWX | |
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 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 Morningstar Domestic 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 Dow Jones Domestic Index Funds | ||
iShares Dow Jones U.S. | IYY | |
iShares KLD Socially Responsible Index Funds | ||
iShares FTSE KLD 400 Social | DSI | |
iShares FTSE KLD Select Social | KLD | |
iShares NYSE Domestic Index Funds | ||
iShares NYSE Composite | NYC | |
iShares NYSE 100 | NY | |
iShares Domestic Specialty Index Funds | ||
iShares S&P U.S. Preferred Stock | PFF | |
iShares Dow Jones Select Dividend | DVY |
iShares North American Sector/Subsector Index Funds | Trading Symbol | |
iShares S&P North American Technology Sector | IGM | |
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 Natural Resources Sector | IGE | |
iShares Domestic Sector Index Funds | ||
iShares Dow Jones U.S. Basic Materials Sector | IYM | |
iShares Dow Jones U.S. Consumer Goods Sector | IYK | |
iShares Dow Jones U.S. Consumer Services Sector | IYC | |
iShares Dow Jones U.S. Energy Sector | IYE | |
iShares Dow Jones U.S. Financial Sector | IYF | |
iShares Dow Jones U.S. Healthcare Sector | IYH | |
iShares Dow Jones U.S. Industrial Sector | IYJ | |
iShares Dow Jones U.S. Technology Sector | IYW | |
iShares Dow Jones U.S. Telecommunications Sector | IYZ | |
iShares Dow Jones U.S. Utilities Sector | IDU | |
iShares Domestic Subsector Index Funds | ||
iShares Dow Jones Transportation Average | IYT | |
iShares Dow Jones U.S. Aerospace & Defense | ITA | |
iShares Dow Jones U.S. Broker-Dealers | IAI | |
iShares Dow Jones U.S. Financial Services | IYG | |
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 Nasdaq Biotechnology | IBB | |
iShares Domestic Real Estate Index Funds | ||
iShares Cohen & Steers Realty Majors | ICF | |
iShares Dow Jones U.S. Real Estate | IYR | |
iShares FTSE NAREIT Real Estate 50 | FTY | |
iShares FTSE NAREIT Industrial/Office Capped | FIO | |
iShares FTSE NAREIT Mortgage Plus Capped | REM | |
iShares FTSE NAREIT Residential Plus Capped | REZ | |
iShares FTSE NAREIT Retail Capped | RTL | |
iShares Target Risk Index Funds | ||
iShares S&P Conservative Allocation | AOK | |
iShares S&P Moderate Allocation | AOM | |
iShares S&P Growth Allocation | AOR | |
iShares S&P Aggressive Allocation | AOA |
60 | 2010 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
The iShares® Family of Funds (Continued)
iShares International Country Index Funds | Trading Symbol | |
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 S&P/TOPIX 150 | ITF | |
iShares MSCI Malaysia | EWM | |
iShares MSCI Mexico Investable Market | EWW | |
iShares MSCI Netherlands Investable Market | EWN | |
iShares MSCI All Peru Capped | EPU | |
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 India Nifty 50 | INDY | |
iShares International Index Funds | ||
iShares MSCI ACWI ex US | ACWX | |
iShares MSCI EAFE | EFA | |
iShares MSCI EAFE Growth | EFG | |
iShares MSCI EAFE Value | EFV | |
iShares MSCI EAFE Small Cap | SCZ | |
iShares FTSE Developed Small Cap ex-North America | IFSM | |
iShares MSCI Emerging Markets | EEM | |
iShares MSCI Emerging Markets Eastern Europe | ESR | |
iShares MSCI BRIC | BKF | |
iShares MSCI EMU | EZU | |
iShares MSCI All Country Asia ex Japan | AAXJ | |
iShares MSCI Pacific ex-Japan | EPP | |
iShares S&P Asia 50 | AIA | |
iShares S&P Europe 350 | IEV | |
iShares S&P Latin America 40 | ILF | |
iShares International/Global Real Estate Index Funds | ||
iShares S&P Developed ex-U.S. Property | WPS | |
iShares FTSE EPRA/NAREIT Developed Real Estate ex-U.S | IFGL | |
iShares FTSE EPRA/NAREIT Developed Asia | IFAS | |
iShares FTSE EPRA/NAREIT Developed Europe | IFEU | |
iShares FTSE EPRA/NAREIT North America | IFNA |
iShares Target Date Index Funds | Trading Symbol | |
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 Global Index Funds | ||
iShares MSCI ACWI | ACWI | |
iShares S&P Global 100 | IOO | |
iShares MSCI Kokusai | TOK | |
iShares International/Global Sector Index Funds | ||
iShares MSCI ACWI ex US Financials Sector | AXFN | |
iShares MSCI Emerging Markets Financials Sector | EMFN | |
iShares MSCI Emerging Markets Materials Sector | EMMT | |
iShares MSCI Europe Financials Sector | EUFN | |
iShares MSCI Far East Financials Sector | FEFN | |
iShares S&P Global Consumer Discretionary Sector | RXI | |
iShares S&P Global Consumer Staples Sector | KXI | |
iShares S&P Global Energy Sector | IXC | |
iShares S&P Global Financials Sector | IXG | |
iShares S&P Global Healthcare Sector | IXJ | |
iShares S&P Global Industrials Sector | EXI | |
iShares S&P Global Materials Sector | MXI | |
iShares S&P Global Technology Sector | IXN | |
iShares S&P Global Telecommunications Sector | IXP | |
iShares S&P Global Utilities Sector | JXI | |
iShares International/Global Theme Based and Specialty Index Funds | ||
iShares S&P Global Clean Energy | ICLN | |
iShares S&P Global Infrastructure | IGF | |
iShares S&P Emerging Markets Infrastructure | EMIF | |
iShares S&P Global Nuclear Energy | NUCL | |
iShares S&P Global Timber & Forestry | WOOD | |
iShares Dow Jones International Select Dividend | IDV | |
iShares U.S. Multisector Bond Funds | ||
iShares Barclays Aggregate | AGG | |
iShares Barclays Government/Credit | GBF | |
iShares Barclays Intermediate Government/Credit | GVI | |
iShares 10+ Year Government/Credit | GLJ | |
iShares U.S. Government Bond Funds | ||
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 U.S. Credit Bond Funds | ||
iShares Barclays Credit | CFT | |
iShares Barclays 1-3 Year Credit | CSJ | |
iShares Barclays Intermediate Credit | CIU | |
iShares iBoxx $ Investment Grade Corporate | LQD | |
iShares 10+ Year Credit | CLY | |
iShares iBoxx $ High Yield Corporate | HYG |
iSHARES FAMILYOF FUNDS | 61 |
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The iShares® Family of Funds (Continued)
iShares AMT-Free Municipal Bond Funds | Trading Symbol | |
iShares S&P National AMT-Free Municipal | MUB | |
iShares S&P Short Term National AMT-Free Municipal | SUB | |
iShares S&P California AMT-Free Municipal | CMF | |
iShares S&P New York AMT-Free Municipal | NYF | |
iShares 2012 S&P AMT-Free Municipal Series | MUAA | |
iShares 2013 S&P AMT-Free Municipal Series | MUAB | |
iShares 2014 S&P AMT-Free Municipal Series | MUAC | |
iShares 2015 S&P AMT-Free Municipal Series | MUAD | |
iShares 2016 S&P AMT-Free Municipal Series | MUAE | |
iShares 2017 S&P AMT-Free Municipal Series | MUAF |
iShares U.S. Securitized Bond Funds | Trading Symbol | |
iShares Barclays MBS | MBB | |
iShares International Bond Funds | ||
iShares JPMorgan USD Emerging Markets | EMB | |
iShares S&P/Citigroup International Treasury | IGOV | |
iShares S&P/Citigroup 1-3 Year International Treasury | ISHG |
The iShares Funds (“Funds”) are distributed by SEI Investments Distribution Co. (“SEI”).iShares® is a registered trademark of BlackRock Institutional Trust Company, N.A. The 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., MSCI Inc., Morningstar Inc., The NASDAQ OMX Group, 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, endorsed or issued by Barclays Capital. None of these companies make any representation regarding the advisability of investing in the iShares Funds. Neither SEI, nor BlackRock Institutional Trust Company, N.A., nor any of their affiliates, are affiliated with the companies listed above. FXI does not make any warranty regarding the FTSE/Xinhua Index. All rights in the FTSE/Xinhua Index vest in FXI. Neither FTSE nor NAREIT makes any warranty regarding the FTSE NAREIT Real Estate 50/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.
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 2010 Semi-Annual Report.
iS-2350-0310
62 | 2010 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
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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.
Once you have enrolled, you will no longer receive shareholder reports and prospectuses 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 and is available to be viewed or downloaded.
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 notifications sent.
Your information and e-mail 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.
Table of Contents
For more information:
WWW.iSHARES.COM
1-800-iShares (1-800-474-2737)
This accompanied report is by intended the current for the prospectus. Funds’ shareholders. It may not be distributed to prospective investors unless it is preceded or Investing involves risk, including possible loss of principal.
The iShares Funds are distributed by SEI Investments Distribution Co. (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 BlackRock Institutional Trust Company, N.A., nor any of their affiliates, are affiliated with the company listed above.
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 ending 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.
©2010 BlackRock Institutional Trust Company, N.A. All rights reserved. iShares® is a registered trademark of BlackRock Institutional Trust Company, N.A. All other trademarks, servicemarks, or registered trademarks are the property of their respective owners.
iS-SAR-84-0210
Table of Contents
2010 SEMI-ANNUAL REPORT TO SHAREHOLDERS
iSHARES® MSCI SERIES
FEBRUARY 28, 2010
Would you prefer to receive materials like this electronically?
See inside back cover for details.
iShares MSCI Australia Index Fund | EWA | NYSE Arca
iShares MSCI Hong Kong Index Fund | EWH | NYSE Arca
iShares MSCI Japan Small Cap Index Fund | SCJ | NYSE Arca
iShares MSCI Malaysia Index Fund | EWM | NYSE Arca
iShares MSCI Pacific ex-Japan Index Fund | EPP | NYSE Arca
iShares MSCI Singapore Index Fund | EWS | NYSE Arca
iShares MSCI South Korea Index Fund | EWY | NYSE Arca
iShares MSCI Taiwan Index Fund | EWT | NYSE Arca
iShares MSCI Thailand Investable Market Index Fund | THD | NYSE Arca
iShares®
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Table of Contents
iSHARES® MSCI AUSTRALIA INDEX FUND
Performance as of February 28, 2010
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, 2010, the total return for the Fund was 12.24%, while the total return for the Index was 12.61%.
Average Annual Total Returns | ||||||||||||||||
Year Ended 2/28/10 | Five Years Ended 2/28/10 | Ten Years Ended 2/28/10 | ||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||
101.47% | 104.06% | 103.00% | 9.36% | 9.31% | 8.96% | 12.27% | 12.12% | 11.91% | ||||||||
Cumulative Total Returns | ||||||||||||||||
Year Ended 2/28/10 | Five Years Ended 2/28/10 | Ten Years Ended 2/28/10 | ||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||
101.47% | 104.06% | 103.00% | 56.45% | 56.05% | 53.61% | 218.13% | 214.07% | 208.06% |
“Average Annual Total Returns” represent the average annual change in value of an investment over the period(s) indicated. “Cumulative Total Returns” represent the total change in value of an investment over the period(s) indicated.
Certain sectors and markets performed exceptionally well based on market conditions during the one-year period. Achieving such exceptional returns involves the risk of volatility and investors should not expect that such exceptional returns will be repeated.
The Fund’s per share net asset value or “NAV” is the value of one share of the Fund as calculated in accordance with the standard formula for valuing mutual fund shares. The NAV return is based on the NAV of the Fund and the market return is based on the market price per share of the Fund. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which 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 performance shown in the table(s) above assumes reinvestment of all dividends and capital gain distributions and does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption or sale of fund shares. The investment return and principal value of shares of the Fund will vary with changes in market conditions. Shares of the Fund may be worth more or less than their original cost when they are redeemed or sold in the market. The Fund’s past performance is no guarantee of future results.
PORTFOLIO ALLOCATION As of 2/28/10 | |||
Sector | Percentage of Net Assets | ||
Financial | 44.74 | % | |
Basic Materials | 23.31 | ||
Consumer Non-Cyclical | 10.95 | ||
Industrial | 9.25 | ||
Energy | 5.67 | ||
Consumer Cyclical | 2.12 | ||
Communications | 1.78 | ||
Utilities | 0.83 | ||
Technology | 0.56 | ||
Short-Term and Other Net Assets | 0.79 | ||
TOTAL | 100.00 | % | |
TEN LARGEST FUND HOLDINGS As of 2/28/10 | |||
Security | Percentage of Net Assets | ||
BHP Billiton Ltd. | 14.89 | % | |
Commonwealth Bank of Australia | 8.93 | ||
Westpac Banking Corp. | 8.30 | ||
Australia and New Zealand Banking Group Ltd. | 6.26 | ||
National Australia Bank Ltd. | 5.75 | ||
Woolworths Ltd. | 3.59 | ||
Wesfarmers Ltd. | 3.38 | ||
Rio Tinto Ltd. | 3.32 | ||
Westfield Group | 2.69 | ||
Woodside Petroleum Ltd. | 2.55 | ||
TOTAL | 59.66 | % | |
FUND PERFORMANCE OVERVIEWS | 1 |
Table of Contents
Fund Performance Overview
iSHARES® MSCI HONG KONG INDEX FUND
Performance as of February 28, 2010
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, 2010, the total return for the Fund was 8.54%, while the total return for the Index was 8.81%.
Average Annual Total Returns | ||||||||||||||||
Year Ended 2/28/10 | Five Years Ended 2/28/10 | Ten Years Ended 2/28/10 | ||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||
61.50% | 64.85% | 62.51% | 8.24% | 8.33% | 8.84% | 3.92% | 3.97% | 4.17% | ||||||||
Cumulative Total Returns | ||||||||||||||||
Year Ended 2/28/10 | Five Years Ended 2/28/10 | Ten Years Ended 2/28/10 | ||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||
61.50% | 64.85% | 62.51% | 48.58% | 49.22% | 52.77% | 46.85% | 47.63% | 50.53% |
“Average Annual Total Returns” represent the average annual change in value of an investment over the period(s) indicated. “Cumulative Total Returns” represent the total change in value of an investment over the period(s) indicated.
Certain sectors and markets performed exceptionally well based on market conditions during the one-year period. Achieving such exceptional returns involves the risk of volatility and investors should not expect that such exceptional returns will be repeated.
The Fund’s per share net asset value or “NAV” is the value of one share of the Fund as calculated in accordance with the standard formula for valuing mutual fund shares. The NAV return is based on the NAV of the Fund and the market return is based on the market price per share of the Fund. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which 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 performance shown in the table(s) above assumes reinvestment of all dividends and capital gain distributions and does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption or sale of fund shares. The investment return and principal value of shares of the Fund will vary with changes in market conditions. Shares of the Fund may be worth more or less than their original cost when they are redeemed or sold in the market. The Fund’s past performance is no guarantee of future results.
PORTFOLIO ALLOCATION As of 2/28/10 | |||
Sector | Percentage of Net Assets | ||
Financial | 52.79 | % | |
Diversified | 14.16 | ||
Utilities | 13.07 | ||
Consumer Cyclical | 12.74 | ||
Industrial | 3.83 | ||
Communications | 1.84 | ||
Technology | 0.82 | ||
Basic Materials | 0.60 | ||
Short-Term and Other Net Assets | 0.15 | ||
TOTAL | 100.00 | % | |
TEN LARGEST FUND HOLDINGS As of 2/28/10 | |||
Security | Percentage of Net Assets | ||
Sun Hung Kai Properties Ltd. | 8.41 | % | |
Cheung Kong (Holdings) Ltd. | 7.39 | ||
Hong Kong Exchanges and Clearing Ltd. | 7.24 | ||
Hutchison Whampoa Ltd. | 6.59 | ||
CLP Holdings Ltd. | 5.98 | ||
Li & Fung Ltd. | 4.83 | ||
Hang Seng Bank Ltd. | 4.81 | ||
Swire Pacific Ltd. Class A | 3.86 | ||
Hong Kong and China Gas Co. Ltd. (The) | 3.70 | ||
Esprit Holdings Ltd. | 3.52 | ||
TOTAL | 56.33 | % | |
2 | 2010 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Fund Performance Overview
iSHARES® MSCI JAPAN SMALL CAP INDEX FUND
Performance as of February 28, 2010
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, which consists of stocks traded primarily on the Tokyo Stock Exchange. MSCI defines the small-cap universe as all listed securities that have a market capitalization in the range of $202 - $1,723 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, 2010, the total return for the Fund was (5.59)%, while the total return for the Index was (5.48)%.
Average Annual Total Returns | Cumulative Total Returns | |||||||||||||||
Year Ended 2/28/10 | Inception to 2/28/10 | Inception to 2/28/10 | ||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||
32.10% | 36.43% | 32.93% | (5.79)% | (5.85)% | (5.53)% | (12.27)% | (12.38)% | (11.75)% |
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 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 performance shown in the table(s) above assumes reinvestment of all dividends and capital gain distributions and does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption or sale of fund shares. The investment return and principal value of shares of the Fund will vary with changes in market conditions. Shares of the Fund may be worth more or less than their original cost when they are redeemed or sold in the market. The Fund’s past performance is no guarantee of future results.
PORTFOLIO ALLOCATION As of 2/28/10 | |||
Sector | Percentage of Net Assets | ||
Industrial | 26.56 | % | |
Consumer Cyclical | 24.40 | ||
Financial | 17.98 | ||
Consumer Non-Cyclical | 13.45 | ||
Basic Materials | 10.04 | ||
Communications | 4.12 | ||
Technology | 2.28 | ||
Utilities | 0.75 | ||
Energy | 0.08 | ||
Short-Term and Other Net Assets | 0.34 | ||
TOTAL | 100.00 | % | |
TEN LARGEST FUND HOLDINGS As of 2/28/10 | |||
Security | Percentage of Net Assets | ||
Ebara Corp. | 0.58 | % | |
Sotetsu Holdings Inc. | 0.53 | ||
Fujikura Ltd. | 0.51 | ||
Miraca Holdings Inc. | 0.51 | ||
Hamamatsu Photonics K.K. | 0.47 | ||
Rengo Co. Ltd. | 0.46 | ||
Nippon Residential Investment Corp. | 0.46 | ||
Nippon Paint Co. Ltd. | 0.45 | ||
Yamatake Corp. | 0.45 | ||
Fuji Oil Co. Ltd. | 0.45 | ||
TOTAL | 4.87 | % | |
FUND PERFORMANCE OVERVIEWS | 3 |
Table of Contents
Fund Performance Overview
iSHARES® MSCI MALAYSIA INDEX FUND
Performance as of February 28, 2010
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, 2010, the total return for the Fund was 10.67%, while the total return for the Index was 11.04%.
Average Annual Total Returns | ||||||||||||||||
Year Ended 2/28/10 | Five Years Ended 2/28/10 | Ten Years Ended 2/28/10 | ||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||
56.48% | 56.86% | 57.37% | 12.10% | 11.80% | 12.68% | 6.23% | 6.53% | 7.01% | ||||||||
Cumulative Total Returns | ||||||||||||||||
Year Ended 2/28/10 | Five Years Ended 2/28/10 | Ten Years Ended 2/28/10 | ||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||
56.48% | 56.86% | 57.37% | 77.06% | 74.70% | 81.68% | 83.00% | 88.16% | 96.81% |
“Average Annual Total Returns” represent the average annual change in value of an investment over the period(s) indicated. “Cumulative Total Returns” represent the total change in value of an investment over the period(s) indicated.
Certain sectors and markets performed exceptionally well based on market conditions during the one-year period. Achieving such exceptional returns involves the risk of volatility and investors should not expect that such exceptional returns will be repeated.
The Fund’s per share net asset value or “NAV” is the value of one share of the Fund as calculated in accordance with the standard formula for valuing mutual fund shares. The NAV return is based on the NAV of the Fund and the market return is based on the market price per share of the Fund. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which 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 performance shown in the table(s) above assumes reinvestment of all dividends and capital gain distributions and does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption or sale of fund shares. The investment return and principal value of shares of the Fund will vary with changes in market conditions. Shares of the Fund may be worth more or less than their original cost when they are redeemed or sold in the market. The Fund’s past performance is no guarantee of future results.
PORTFOLIO ALLOCATION As of 2/28/10 | |||
Sector | Percentage of Net Assets | ||
Financial | 31.00 | % | |
Consumer Non-Cyclical | 16.54 | ||
Consumer Cyclical | 12.11 | ||
Communications | 11.08 | ||
Industrial | 10.10 | ||
Diversified | 8.58 | ||
Utilities | 8.39 | ||
Basic Materials | 0.97 | ||
Energy | 0.74 | ||
Short-Term and Other Net Assets | 0.49 | ||
TOTAL | 100.00 | % | |
TEN LARGEST FUND HOLDINGS As of 2/28/10 | |||
Security | Percentage of Net Assets | ||
CIMB Group Holdings Bhd | 8.68 | % | |
Sime Darby Bhd | 8.58 | ||
Malayan Banking Bhd | 8.35 | ||
IOI Corp. Bhd | 6.69 | ||
Tenaga Nasional Bhd | 5.25 | ||
Genting Bhd | 4.74 | ||
Public Bank Bhd Foreign | 3.99 | ||
MISC Bhd Foreign | 3.52 | ||
Maxis Communications Bhd | 3.50 | ||
AMMB Holdings Bhd | 3.25 | ||
TOTAL | 56.55 | % | |
4 | 2010 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Fund Performance Overview
iSHARES® MSCI PACIFIC EX-JAPAN INDEX FUND
Performance as of February 28, 2010
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, 2010, the total return for the Fund was 11.10%, while the total return for the Index was 11.43%.
Average Annual Total Returns | ||||||||||||||||
Year Ended 2/28/10 | Five Years Ended 2/28/10 | Inception to 2/28/10 | ||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||
91.55% | 94.49% | 92.63% | 9.26% | 9.20% | 9.16% | 14.71% | 14.67% | 14.63% | ||||||||
Cumulative Total Returns | ||||||||||||||||
Year Ended 2/28/10 | Five Years Ended 2/28/10 | Inception to 2/28/10 | ||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||
91.55% | 94.49% | 92.63% | 55.68% | 55.31% | 54.99% | 214.54% | 213.51% | 212.67% |
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.
Certain sectors and markets performed exceptionally well based on market conditions during the one-year period. Achieving such exceptional returns involves the risk of volatility and investors should not expect that such exceptional returns will be repeated.
The Fund’s per share net asset value or “NAV” is the value of one share of the Fund as calculated in accordance with the standard formula for valuing mutual fund shares. The NAV return is based on the NAV of the Fund and the market return is based on the market price per share of the Fund. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which shares of the Fund are listed for trading, as of the time that the Fund’s NAV is calculated. Since shares of the Fund did not trade in the secondary market until 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 performance shown in the table(s) above assumes reinvestment of all dividends and capital gain distributions and does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption or sale of fund shares. The investment return and principal value of shares of the Fund will vary with changes in market conditions. Shares of the Fund may be worth more or less than their original cost when they are redeemed or sold in the market. The Fund’s past performance is no guarantee of future results.
PORTFOLIO ALLOCATION As of 2/28/10 | |||
Sector | Percentage of Net Assets | ||
Financial | 46.76 | % | |
Basic Materials | 16.03 | ||
Consumer Non-Cyclical | 8.58 | ||
Industrial | 8.54 | ||
Consumer Cyclical | 4.54 | ||
Energy | 3.85 | ||
Communications | 3.67 | ||
Diversified | 3.67 | ||
Utilities | 3.19 | ||
Technology | 0.54 | ||
Short-Term and Other Net Assets | 0.63 | ||
TOTAL | 100.00 | % | |
TEN LARGEST FUND HOLDINGS As of 2/28/10 | |||
Security | Percentage of Net Assets | ||
BHP Billiton Ltd. (Australia) | 10.16 | % | |
Commonwealth Bank of Australia | 6.08 | ||
Westpac Banking Corp. (Australia) | 5.67 | ||
Australia and New Zealand Banking | 4.27 | ||
National Australia Bank Ltd. | 3.93 | ||
Woolworths Ltd. (Australia) | 2.45 | ||
Wesfarmers Ltd. (Australia) | 2.31 | ||
Rio Tinto Ltd. (Australia) | 2.26 | ||
Westfield Group (Australia) | 1.84 | ||
Woodside Petroleum Ltd. (Australia) | 1.73 | ||
TOTAL | 40.70 | % | |
FUND PERFORMANCE OVERVIEWS | 5 |
Table of Contents
Fund Performance Overview
iSHARES® MSCI SINGAPORE INDEX FUND
Performance as of February 28, 2010
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 Singapore 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, 2010, the total return for the Fund was 9.86%, while the total return for the Index was 10.01%.
Average Annual Total Returns | ||||||||||||||||
Year Ended 2/28/10 | Five Years Ended 2/28/10 | Ten Years Ended 2/28/10 | ||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||
95.62% | 97.47% | 96.43% | 12.66% | 12.54% | 12.76% | 7.40% | 7.58% | 6.94% | ||||||||
Cumulative Total Returns | ||||||||||||||||
Year Ended 2/28/10 | Five Years Ended 2/28/10 | Ten Years Ended 2/28/10 | ||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||
95.62% | 97.47% | 96.43% | 81.50% | 80.56% | 82.26% | 104.10% | 107.73% | 95.68% |
“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.
Certain sectors and markets performed exceptionally well based on market conditions during the one-year period. Achieving such exceptional returns involves the risk of volatility and investors should not expect that such exceptional returns will be repeated.
The Fund’s per share net asset value or “NAV” is the value of one share of the Fund as calculated in accordance with the standard formula for valuing mutual fund shares. The NAV return is based on the NAV of the Fund and the market return is based on the market price per share of the Fund. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which 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 performance shown in the table(s) above assumes reinvestment of all dividends and capital gain distributions and does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption or sale of fund shares. The investment return and principal value of shares of the Fund will vary with changes in market conditions. Shares of the Fund may be worth more or less than their original cost when they are redeemed or sold in the market. The Fund’s past performance is no guarantee of future results.
PORTFOLIO ALLOCATION As of 2/28/10 | |||
Sector | Percentage of Net Assets | ||
Financial | 52.08 | % | |
Communications | 15.59 | ||
Consumer Non-Cyclical | 9.52 | ||
Industrial | 9.40 | ||
Diversified | 7.76 | ||
Consumer Cyclical | 5.42 | ||
Short-Term and Other Net Assets | 0.23 | ||
TOTAL | 100.00 | % | |
TEN LARGEST FUND HOLDINGS As of 2/28/10 | |||
Security | Percentage of Net Assets | ||
United Overseas Bank Ltd. | 12.04 | % | |
Singapore Telecommunications Ltd. | 12.02 | ||
DBS Group Holdings Ltd. | 11.76 | ||
Oversea-Chinese Banking Corp. Ltd. | 10.97 | ||
Keppel Corp. Ltd. | 4.89 | ||
Wilmar International Ltd. | 4.20 | ||
CapitaLand Ltd. | 4.15 | ||
Singapore Airlines Ltd. | 3.85 | ||
Singapore Exchange Ltd. | 3.49 | ||
Singapore Press Holdings Ltd. | 2.88 | ||
TOTAL | 70.25 | % | |
6 | 2010 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Fund Performance Overview
iSHARES® MSCI SOUTH KOREA INDEX FUND
Performance as of February 28, 2010
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, 2010, the total return for the Fund was 8.63%, while the total return for the Index was 8.81%.
Average Annual Total Returns | ||||||||||||||||
Year Ended 2/28/10 | Five Years Ended 2/28/10 | Inception to 2/28/10 | ||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||
105.07% | 111.77% | 106.41% | 6.85% | 6.68% | 7.50% | 9.27% | 9.29% | 9.82% | ||||||||
Cumulative Total Returns | ||||||||||||||||
Year Ended 2/28/10 | Five Years Ended 2/28/10 | Inception to 2/28/10 | ||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||
105.07% | 111.77% | 106.41% | 39.27% | 38.16% | 43.55% | 138.71% | 138.98% | 150.67% |
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.
Certain sectors and markets performed exceptionally well based on market conditions during the one-year period. Achieving such exceptional returns involves the risk of volatility and investors should not expect that such exceptional returns will be repeated.
The Fund’s per share net asset value or “NAV” is the value of one share of the Fund as calculated in accordance with the standard formula for valuing mutual fund shares. The NAV return is based on the NAV of the Fund and the market return is based on the market price per share of the Fund. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which 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. 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 performance shown in the table(s) above assumes reinvestment of all dividends and capital gain distributions and does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption or sale of fund shares. The investment return and principal value of shares of the Fund will vary with changes in market conditions. Shares of the Fund may be worth more or less than their original cost when they are redeemed or sold in the market. The Fund’s past performance is no guarantee of future results.
PORTFOLIO ALLOCATION As of 2/28/10 | |||
Sector | Percentage of Net Assets | ||
Technology | 23.04 | % | |
Industrial | 16.33 | ||
Financial | 15.98 | ||
Consumer Cyclical | 14.77 | ||
Basic Materials | 12.98 | ||
Communications | 5.37 | ||
Consumer Non-Cyclical | 4.06 | ||
Energy | 2.41 | ||
Utilities | 2.37 | ||
Diversified | 1.69 | ||
Short-Term and Other Net Assets | 1.00 | ||
TOTAL | 100.00 | % | |
TEN LARGEST FUND HOLDINGS As of 2/28/10 | |||
Security | Percentage of Net Assets | ||
Samsung Electronics Co. Ltd. | 18.04 | % | |
POSCO | 7.63 | ||
Hyundai Motor Co. Ltd. | 3.90 | ||
Shinhan Financial Group Co. Ltd. | 3.68 | ||
KB Financial Group Inc. | 3.47 | ||
LG Electronics Inc. | 2.23 | ||
Samsung Electronics Co. Ltd. Preferred | 2.22 | ||
LG Chem Ltd. | 2.20 | ||
Hynix Semiconductor Inc. | 2.17 | ||
Korea Electric Power Corp. | 2.10 | ||
TOTAL | 47.64 | % | |
FUND PERFORMANCE OVERVIEWS | 7 |
Table of Contents
Fund Performance Overview
iSHARES® MSCI TAIWAN INDEX FUND
Performance as of February 28, 2010
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, 2010, the total return for the Fund was 9.30%, while the total return for the Index was 9.75%.
Average Annual Total Returns | ||||||||||||||||
Year Ended 2/28/10 | Five Years Ended 2/28/10 | Inception to 2/28/10 | ||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||
70.82% | 75.22% | 72.62% | 2.23% | 1.70% | 3.09% | (3.02)% | (3.02)% | (2.17)% | ||||||||
Cumulative Total Returns | ||||||||||||||||
Year Ended 2/28/10 | Five Years Ended 2/28/10 | Inception to 2/28/10 | ||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||
70.82% | 75.22% | 72.62% | 11.64% | 8.81% | 16.43% | (25.73)% | (25.72)% | (19.13)% |
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.
Certain sectors and markets performed exceptionally well based on market conditions during the one-year period. Achieving such exceptional returns involves the risk of volatility and investors should not expect that such exceptional returns will be repeated.
The Fund’s per share net asset value or “NAV” is the value of one share of the Fund as calculated in accordance with the standard formula for valuing mutual fund shares. The NAV return is based on the NAV of the Fund and the market return is based on the market price per share of the Fund. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which 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. 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 performance shown in the table(s) above assumes reinvestment of all dividends and capital gain distributions and does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption or sale of fund shares. The investment return and principal value of shares of the Fund will vary with changes in market conditions. Shares of the Fund may be worth more or less than their original cost when they are redeemed or sold in the market. The Fund’s past performance is no guarantee of future results.
PORTFOLIO ALLOCATION As of 2/28/10 | |||
Sector | Percentage of Net Assets | ||
Technology | 38.04 | % | |
Industrial | 24.53 | ||
Financial | 14.61 | ||
Basic Materials | 11.94 | ||
Communications | 4.55 | ||
Consumer Cyclical | 3.90 | ||
Energy | 1.30 | ||
Consumer Non-Cyclical | 1.09 | ||
Short-Term and Other Net Assets | 0.04 | ||
TOTAL | 100.00 | % | |
TEN LARGEST FUND HOLDINGS As of 2/28/10 | |||
Security | Percentage of Net Assets | ||
Taiwan Semiconductor Manufacturing Co. Ltd. | 13.49 | % | |
Hon Hai Precision Industry Co. Ltd. | 9.26 | ||
MediaTek Inc. | 4.34 | ||
Nan Ya Plastics Corp. | 3.03 | ||
China Steel Corp. | 2.94 | ||
Cathay Financial Holding Co. Ltd. | 2.81 | ||
Chunghwa Telecom Co. Ltd. | 2.68 | ||
Formosa Plastics Corp. | 2.57 | ||
AU Optronics Corp. | 2.28 | ||
Acer Inc. | 2.17 | ||
TOTAL | 45.57 | % | |
8 | 2010 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Fund Performance Overview
iSHARES® MSCI THAILAND INVESTABLE MARKET INDEX FUND
Performance as of February 28, 2010
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, 2010, the total return for the Fund was 14.36%, while the total return for the Index was 14.00%.
Average Annual Total Returns | Cumulative Total Returns | |||||||||||||||
Year Ended 2/28/10 | Inception to 2/28/10 | Inception to 2/28/10 | ||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||
97.21% | 98.18% | 97.26% | (6.14)% | (6.07)% | (6.11)% | (11.53)% | (11.39)% | (11.46)% |
Total returns for the period since inception are calculated from the inception date of the Fund (3/26/08). “Average Annual Total Returns” represent the average annual change in value of an investment over the period(s) indicated. “Cumulative Total Returns” represent the total change in value of an investment over the period(s) indicated.
Certain sectors and markets performed exceptionally well based on market conditions during the one-year period. Achieving such exceptional returns involves the risk of volatility and investors should not expect that such exceptional returns will be repeated.
The Fund’s per share net asset value or “NAV” is the value of one share of the Fund as calculated in accordance with the standard formula for valuing mutual fund shares. The NAV return is based on the NAV of the Fund and the market return is based on the market price per share of the Fund. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which shares of the Fund are listed for trading, as of the time that the Fund’s NAV is calculated. Since shares of the Fund did not trade in the secondary market until 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 performance shown in the table(s) above assumes reinvestment of all dividends and capital gain distributions and does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption or sale of fund shares. The investment return and principal value of shares of the Fund will vary with changes in market conditions. Shares of the Fund may be worth more or less than their original cost when they are redeemed or sold in the market. The Fund’s past performance is no guarantee of future results.
PORTFOLIO ALLOCATION As of 2/28/10 | |||
Sector | Percentage of Net Assets | ||
Financial | 35.12 | % | |
Energy | 27.77 | ||
Consumer Cyclical | 8.62 | ||
Communications | 7.75 | ||
Industrial | 7.33 | ||
Basic Materials | 5.74 | ||
Consumer Non-Cyclical | 5.15 | ||
Utilities | 1.86 | ||
Technology | 0.33 | ||
Short-Term and Other Net Assets | 0.33 | ||
TOTAL | 100.00 | % | |
TEN LARGEST FUND HOLDINGS As of 2/28/10 | |||
Security | Percentage of Net Assets | ||
PTT PCL NVDR | 11.29 | % | |
Bangkok Bank PCL NVDR | 9.31 | ||
PTT Exploration & Production PCL NVDR | 9.08 | ||
Kasikornbank PCL NVDR | 8.32 | ||
Siam Commercial Bank PCL NVDR | 7.43 | ||
Banpu PCL NVDR | 4.91 | ||
Advanced Info Service PCL NVDR | 4.46 | ||
Siam Cement PCL NVDR | 4.01 | ||
CP All PCL NVDR | 2.85 | ||
IRPC PCL NVDR | 2.47 | ||
TOTAL | 64.13 | % | |
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, 2009 to February 28, 2010.
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 (9/1/09) | Ending Account Value (2/28/10) | Annualized Expense Ratio | Expenses Paid During Perioda (9/1/09 to 2/28/10) | |||||
Australia | |||||||||
Actual | $1,000.00 | $1,122.40 | 0.54 | % | $2.84 | ||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,022.10 | 0.54 | 2.71 | |||||
Hong Kong | |||||||||
Actual | 1,000.00 | 1,085.40 | 0.54 | 2.79 | |||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,022.10 | 0.54 | 2.71 | |||||
Japan Small Cap | |||||||||
Actual | 1,000.00 | 944.10 | 0.54 | 2.60 | |||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,022.10 | 0.54 | 2.71 | |||||
Malaysia | |||||||||
Actual | 1,000.00 | 1,106.70 | 0.54 | 2.82 | |||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,022.10 | 0.54 | 2.71 |
10 | 2010 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Shareholder Expenses (Unaudited) (Continued)
iSHARES®, INC.
iShares MSCI Index Fund | Beginning Account Value (9/1/09) | Ending Account Value (2/28/10) | Annualized Expense Ratio | Expenses Paid During Perioda (9/1/09 to 2/28/10) | |||||
Pacific ex-Japan | |||||||||
Actual | $1,000.00 | $1,111.00 | 0.50 | % | $2.62 | ||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,022.30 | 0.50 | 2.51 | |||||
Singapore | |||||||||
Actual | 1,000.00 | 1,098.60 | 0.54 | 2.81 | |||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,022.10 | 0.54 | 2.71 | |||||
South Korea | |||||||||
Actual | 1,000.00 | 1,086.30 | 0.61 | 3.16 | |||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,021.80 | 0.61 | 3.06 | |||||
Taiwan | |||||||||
Actual | 1,000.00 | 1,093.00 | 0.63 | 3.27 | |||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,021.70 | 0.63 | 3.16 | |||||
Thailand Investable Market | |||||||||
Actual | 1,000.00 | 1,143.60 | 0.63 | 3.35 | |||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,021.70 | 0.63 | 3.16 |
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, 2010
Security | Shares | Value | |||
COMMON STOCKS – 99.21% | |||||
AIRLINES – 0.32% | |||||
Qantas Airways Ltd. | 3,010,566 | $ | 7,117,339 | ||
7,117,339 | |||||
APPAREL – 0.22% | |||||
Billabong International Ltd. | 550,602 | 5,014,462 | |||
5,014,462 | |||||
BANKS – 30.77% | |||||
Australia and New Zealand | 6,794,814 | 140,801,252 | |||
Bendigo and Adelaide | 953,160 | 8,211,197 | |||
Commonwealth Bank | 4,161,456 | 200,937,401 | |||
National Australia Bank Ltd. | 5,684,484 | 129,501,186 | |||
Suncorp-Metway Ltd. | 3,447,600 | 26,365,762 | |||
Westpac Banking Corp. | 7,981,194 | 186,755,271 | |||
692,572,069 | |||||
BEVERAGES – 1.80% | |||||
Coca-Cola Amatil Ltd. | 1,522,521 | 15,297,545 | |||
Foster’s Group Ltd. | 5,232,747 | 25,257,135 | |||
40,554,680 | |||||
BIOTECHNOLOGY – 0.54% | |||||
Sonic Healthcare Ltd. | 1,002,339 | 12,162,407 | |||
12,162,407 | |||||
BUILDING MATERIALS – 0.94% | |||||
Boral Ltd. | 1,607,697 | 7,731,150 | |||
CSR Ltd. | 3,907,295 | 5,668,352 | |||
James Hardie Industries SEa | 1,174,212 | 7,823,211 | |||
21,222,713 | |||||
CHEMICALS – 0.75% | |||||
Incitec Pivot Ltd. | 4,368,819 | 12,675,779 | |||
Nufarm Ltd.b | 471,360 | 4,107,061 | |||
16,782,840 | |||||
COMMERCIAL SERVICES – 1.99% | |||||
Brambles Ltd. | 3,829,878 | 23,801,811 | |||
Intoll Group | 6,125,574 | 6,171,133 | |||
Macquarie Atlas Roads Groupa | 1 | 1 | |||
Transurban Group | 3,145,428 | 14,759,669 | |||
44,732,614 |
Security | Shares | Value | |||
COMPUTERS – 0.56% | |||||
Computershare Ltd. | 1,205,646 | $ | 12,577,992 | ||
12,577,992 | |||||
DIVERSIFIED FINANCIAL SERVICES – 2.30% | |||||
ASX Ltd. | 466,947 | 15,245,787 | |||
Macquarie Group Ltd. | 901,953 | 36,556,453 | |||
51,802,240 | |||||
ELECTRIC – 0.70% | |||||
AGL Energy Ltd. | 1,220,349 | 15,703,860 | |||
15,703,860 | |||||
ELECTRIC – DISTRIBUTION – 0.13% | |||||
SP AusNet | 3,583,983 | 3,032,937 | |||
3,032,937 | |||||
ENGINEERING & CONSTRUCTION – 1.05% | |||||
Leighton Holdings Ltd.b | 403,572 | 13,624,732 | |||
WorleyParsons Ltd. | 449,709 | 9,898,720 | |||
23,523,452 | |||||
ENTERTAINMENT – 0.94% | |||||
Aristocrat Leisure Ltd. | 1,074,418 | 4,069,858 | |||
Tabcorp Holdings Ltd. | 1,649,778 | 10,001,837 | |||
Tatts Group Ltd. | 3,267,108 | 7,021,668 | |||
21,093,363 | |||||
FOOD – 4.15% | |||||
Goodman Fielder Ltd. | 3,557,619 | 4,794,701 | |||
Metcash Ltd. | 2,090,868 | 7,714,174 | |||
Woolworths Ltd. | 3,361,410 | 80,792,229 | |||
93,301,104 | |||||
HEALTH CARE – PRODUCTS – 0.38% | |||||
Cochlear Ltd. | 152,100 | 8,642,242 | |||
8,642,242 | |||||
INSURANCE – 5.28% | |||||
AMP Ltd. | 5,557,227 | 29,560,391 | |||
AXA Asia Pacific Holdings Ltd. | 2,804,217 | 16,197,087 | |||
Insurance Australia Group Ltd. | 5,634,798 | 19,931,548 | |||
QBE Insurance Group Ltd. | 2,778,360 | 53,243,657 | |||
118,932,683 | |||||
IRON & STEEL – 0.97% | |||||
BlueScope Steel Ltd. | 4,955,418 | 10,738,936 | |||
OneSteel Ltd. | 3,615,924 | 11,171,307 | |||
21,910,243 |
12 | 2010 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI AUSTRALIA INDEX FUND
February 28, 2010
Security | Shares | Value | |||
LODGING – 0.42% | |||||
Crown Ltd. | 1,329,354 | $ | 9,523,492 | ||
9,523,492 | |||||
MANUFACTURING – 4.86% | |||||
Orica Ltd. | 975,975 | 21,858,380 | |||
Wesfarmers Ltd. | 2,726,646 | 76,010,479 | |||
Wesfarmers Ltd. | 411,684 | 11,505,973 | |||
109,374,832 | |||||
MEDIA – 0.38% | |||||
Fairfax Media Ltd.b | 5,741,775 | 8,483,903 | |||
8,483,903 | |||||
METAL FABRICATE & HARDWARE – 0.34% | |||||
Sims Metal Management Ltd. | 438,048 | 7,621,845 | |||
7,621,845 | |||||
MINING – 21.59% | |||||
Alumina Ltd. | 6,632,067 | 8,938,219 | |||
BHP Billiton Ltd. | 9,103,692 | 335,061,839 | |||
Energy Resources of | 179,985 | 2,960,814 | |||
Fortescue Metals Group Ltd.a | 3,355,326 | 13,971,829 | |||
Newcrest Mining Ltd. | 1,310,472 | 36,778,357 | |||
OZ Minerals Ltd.a | 8,467,914 | 7,886,338 | |||
Paladin Energy Ltd.a | 1,750,164 | 5,657,851 | |||
Rio Tinto Ltd. | 1,181,817 | 74,611,357 | |||
485,866,604 | |||||
OIL & GAS – 5.67% | |||||
Arrow Energy Ltd.a,b | 1,580,319 | 4,698,383 | |||
Caltex Australia Ltd.a | 365,040 | 3,432,380 | |||
Origin Energy Ltd. | 2,385,435 | 35,908,800 | |||
Santos Ltd. | 2,257,671 | 26,201,807 | |||
Woodside Petroleum Ltd. | 1,475,877 | 57,319,867 | |||
127,561,237 | |||||
PACKAGING & CONTAINERS – 0.78% | |||||
Amcor Ltd. | 3,314,766 | 17,602,452 | |||
17,602,452 | |||||
PHARMACEUTICALS – 2.09% | |||||
CSL Ltd. | 1,528,605 | 47,075,294 | |||
47,075,294 |
Security | Shares | Value | |||
REAL ESTATE – 6.03% | |||||
BGP Holdings PLCc | 18,888,372 | $ | 2,578 | ||
Dexus Property Group | 12,925,458 | 9,549,167 | |||
Goodman Group | 16,471,416 | 8,850,092 | |||
GPT Group | 25,164,945 | 12,957,745 | |||
Lend Lease Group | 1,183,898 | 10,251,947 | |||
Mirvac Group | 7,312,968 | 10,019,607 | |||
Stockland Corp. Ltd. | 6,460,194 | 23,487,521 | |||
Westfield Group | 5,633,784 | 60,641,544 | |||
135,760,201 | |||||
REAL ESTATE INVESTMENT TRUSTS – 0.36% | |||||
CFS Retail Property Trustb | 4,721,691 | 8,033,721 | |||
8,033,721 | |||||
RETAIL – 0.22% | |||||
Harvey Norman Holdings Ltd. | 1,440,387 | 4,940,189 | |||
4,940,189 | |||||
TELECOMMUNICATIONS – 1.40% | |||||
Telstra Corp. Ltd. | 11,808,537 | 31,406,398 | |||
31,406,398 | |||||
TRANSPORTATION – 1.28% | |||||
Asciano Groupa | 7,538,076 | 12,150,625 | |||
MAp Group | 2,034,084 | 5,683,149 | |||
Toll Holdings Ltd. | 1,804,413 | 10,987,792 | |||
28,821,566 | |||||
TOTAL COMMON STOCKS | 2,232,750,974 |
SCHEDULESOF INVESTMENTS | 13 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI AUSTRALIA INDEX FUND
February 28, 2010
Security | Shares | Value | |||
SHORT-TERM INVESTMENTS – 0.76% | |||||
MONEY MARKET FUNDS – 0.76% | |||||
BlackRock Cash Funds: Institutional, | 14,529,549 | $ | 14,529,549 | ||
BlackRock Cash Funds: Prime, | 2,335,054 | 2,335,054 | |||
BlackRock Cash Funds: Treasury, | 237,918 | 237,918 | |||
17,102,521 | |||||
TOTAL SHORT-TERM INVESTMENTS | |||||
(Cost: $17,102,521) | 17,102,521 | ||||
TOTAL INVESTMENTS | |||||
(Cost: $2,141,845,919) | 2,249,853,495 | ||||
Other Assets, Less Liabilities – 0.03% | 646,181 | ||||
NET ASSETS – 100.00% | $ | 2,250,499,676 | |||
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 in accordance with management’s fair valuation policy. 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.
14 | 2010 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited)
iSHARES® MSCI HONG KONG INDEX FUND
February 28, 2010
Security | Shares | Value | |||
COMMON STOCKS – 99.85% | |||||
AIRLINES – 0.97% | |||||
Cathay Pacific Airways Ltd.a | 8,748,000 | $ | 16,248,934 | ||
16,248,934 | |||||
APPAREL – 0.90% | |||||
Yue Yuen Industrial | 5,103,000 | 15,216,942 | |||
15,216,942 | |||||
BANKS – 11.32% | |||||
Bank of East Asia Ltd.b | 10,497,710 | 38,335,265 | |||
BOC Hong Kong | 26,244,000 | 59,158,740 | |||
Hang Seng Bank Ltd. | 5,540,400 | 81,000,522 | |||
Wing Hang Bank Ltd. | 1,458,000 | 12,216,749 | |||
190,711,276 | |||||
DISTRIBUTION & WHOLESALE – 8.35% | |||||
Esprit Holdings Ltd.b | 8,310,632 | 59,251,931 | |||
Li & Fung Ltd.b | 17,497,000 | 81,362,002 | |||
140,613,933 | |||||
DIVERSIFIED FINANCIAL SERVICES – 7.24% | |||||
Hong Kong Exchanges and | 7,290,000 | 121,979,687 | |||
121,979,687 | |||||
ELECTRIC – 9.37% | |||||
CLP Holdings Ltd. | 14,580,200 | 100,759,045 | |||
Hongkong Electric | 10,206,000 | 57,121,050 | |||
157,880,095 | |||||
ENGINEERING & CONSTRUCTION – 1.10% | |||||
Cheung Kong Infrastructure | 2,916,000 | 10,967,842 | |||
Hong Kong Aircraft | 583,200 | 7,470,904 | |||
18,438,746 | |||||
GAS – 3.70% | |||||
Hong Kong and China Gas | 27,702,712 | 62,375,573 | |||
62,375,573 | |||||
HOLDING COMPANIES – DIVERSIFIED – 14.16% | |||||
Hutchison Whampoa Ltd. | 15,475,800 | 111,034,806 |
Security | Shares | Value | |||
NWS Holdings Ltd. | 5,832,000 | $ | 9,901,107 | ||
Swire Pacific Ltd. Class Ab | 5,832,000 | 65,093,394 | |||
Wharf (Holdings) Ltd. (The)b | 10,206,500 | 52,588,122 | |||
238,617,429 | |||||
LODGING – 2.09% | |||||
Sands China Ltd.a | 14,580,000 | 20,658,607 | |||
Shangri-La Asia Ltd. | 8,748,000 | 14,536,147 | |||
35,194,754 | |||||
MEDIA – 0.50% | |||||
Television Broadcasts Ltd. | 1,858,000 | 8,484,237 | |||
8,484,237 | |||||
MINING – 0.60% | |||||
Mongolia Energy Corp. Ltd.a | 21,870,000 | 10,169,669 | |||
10,169,669 | |||||
REAL ESTATE – 31.84% | |||||
Cheung Kong (Holdings) Ltd. | 10,206,000 | 124,496,281 | |||
Chinese Estates Holdings Ltd. | 5,832,000 | 9,360,227 | |||
Hang Lung Group Ltd. | 5,832,000 | 29,335,223 | |||
Hang Lung Properties Ltd. | 14,580,000 | 55,684,337 | |||
Henderson Land | 7,750,332 | 52,362,049 | |||
Hopewell Holdings Ltd. | 4,374,000 | 12,817,727 | |||
Hysan Development Co. Ltd. | 4,374,000 | 11,634,552 | |||
Kerry Properties Ltd. | 5,103,000 | 24,287,949 | |||
New World | 17,496,800 | 32,093,675 | |||
Sino Land Co. Ltd.b | 11,664,000 | 22,115,978 | |||
Sun Hung Kai Properties Ltd. | 10,206,000 | 141,718,047 | |||
Wheelock and Co. Ltd. | 7,290,000 | 20,423,850 | |||
536,329,895 | |||||
REAL ESTATE INVESTMENT TRUSTS – 2.39% | |||||
Link REIT (The)b | 16,038,000 | 40,325,602 | |||
40,325,602 | |||||
RETAIL – 0.43% | |||||
Lifestyle International | 4,374,000 | 7,223,000 | |||
7,223,000 | |||||
SEMICONDUCTORS – 0.82% | |||||
ASM Pacific Technology Ltd. | 1,458,000 | 13,756,754 | |||
13,756,754 |
SCHEDULESOF INVESTMENTS | 15 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI HONG KONG INDEX FUND
February 28, 2010
Security | Shares | Value | |||
TELECOMMUNICATIONS – 1.34% | |||||
Foxconn International | 14,580,000 | $ | 14,949,320 | ||
PCCW Ltd. | 27,702,000 | 7,671,856 | |||
22,621,176 | |||||
TRANSPORTATION – 2.73% | |||||
MTR Corp. Ltd. | 10,206,083 | 35,364,068 | |||
Orient Overseas | 1,458,200 | 10,659,425 | |||
46,023,493 | |||||
TOTAL COMMON STOCKS | 1,682,211,195 | ||||
SHORT-TERM INVESTMENTS – 3.26% | |||||
MONEY MARKET FUNDS – 3.26% | |||||
BlackRock Cash Funds: | 47,260,203 | 47,260,203 | |||
BlackRock Cash Funds: | 7,595,221 | 7,595,221 | |||
BlackRock Cash Funds: | 9,209 | 9,209 | |||
54,864,633 | |||||
TOTAL SHORT-TERM INVESTMENTS | |||||
(Cost: $54,864,633) | 54,864,633 | ||||
Value | |||||
TOTAL INVESTMENTS | |||||
(Cost: $2,012,671,667) | $ | 1,737,075,828 | |||
Other Assets, Less Liabilities – (3.11)% | (52,434,920) | ||||
NET ASSETS – 100.00% | $ | 1,684,640,908 | |||
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.
16 | 2010 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited)
iSHARES® MSCI JAPAN SMALL CAP INDEX FUND
February 28, 2010
Security | Shares | Value | |||
COMMON STOCKS – 99.66% | |||||
ADVERTISING – 0.33% | |||||
Asatsu-DK Inc. | 2,800 | $ | 54,415 | ||
Moshi Moshi Hotline Inc. | 2,100 | 41,969 | |||
96,384 | |||||
AEROSPACE & DEFENSE – 0.17% | |||||
Japan Aviation Electronics | 7,000 | 49,311 | |||
49,311 | |||||
AGRICULTURE – 0.41% | |||||
Hokuto Corp. | 2,100 | 44,309 | |||
Sakata Seed Corp. | 5,600 | 75,557 | |||
119,866 | |||||
APPAREL – 1.27% | |||||
Descente Ltd. | 7,000 | 38,125 | |||
Gunze Ltd. | 14,000 | 50,256 | |||
Japan Wool Textile Co. Ltd. (The) | 7,000 | 46,081 | |||
Katakura Industries Co. Ltd. | 2,800 | 25,868 | |||
Onward Holdings Co. Ltd. | 7,000 | 47,657 | |||
Sanyo Shokai Ltd. | 7,000 | 26,231 | |||
Tokyo Style Co. Ltd. | 7,000 | 48,759 | |||
Wacoal Holdings Corp. | 7,000 | 85,703 | |||
368,680 | |||||
AUTO MANUFACTURERS – 0.45% | |||||
Kanto Auto Works Ltd. | 4,200 | 30,437 | |||
Nissan Shatai Co. Ltd. | 7,000 | 54,116 | |||
ShinMaywa Industries Ltd. | 14,000 | 46,475 | |||
131,028 | |||||
AUTO PARTS & EQUIPMENT – 3.67% | |||||
Aisan Industry Co. Ltd. | 2,100 | 17,298 | |||
Akebono Brake Industry Co. Ltd.a | 5,600 | 27,475 | |||
Calsonic Kansei Corp.a | 14,000 | 35,605 | |||
Exedy Corp. | 2,800 | 62,576 | |||
FCC Co. Ltd. | 3,500 | 69,909 | |||
Futaba Industrial Co. Ltd.a | 4,900 | 36,006 | |||
Kayaba Industry Co. Ltd.a | 14,000 | 46,160 | |||
Keihin Corp. | 3,500 | 61,166 | |||
Musashi Seimitsu Industry Co. Ltd. | 2,100 | 39,961 | |||
Nifco Inc. | 3,500 | 78,929 | |||
Nissin Kogyo Co. Ltd. | 3,500 | 52,580 | |||
Press Kogyo Co. Ltd. | 7,000 | 13,391 |
Security | Shares | Value | |||
Riken Corp. | 7,000 | $ | 24,183 | ||
Sanden Corp.a | 14,000 | 43,009 | |||
Showa Corp. | 4,900 | 29,610 | |||
T.RAD Co. Ltd. | 7,000 | 17,330 | |||
Takata Corp. | 2,800 | 62,481 | |||
Tokai Rika Co. Ltd. | 4,200 | 75,573 | |||
Topre Corp. | 4,900 | 38,267 | |||
Toyo Tire & Rubber Co. Ltd.a | 14,000 | 31,351 | |||
TS Tech Co. Ltd. | 4,200 | 71,461 | |||
Unipres Corp.b | 2,800 | 38,346 | |||
Yokohama Rubber Co. Ltd. (The) | 21,000 | 90,272 | |||
1,062,939 | |||||
BANKS – 9.64% | |||||
Aichi Bank Ltd. (The) | 700 | 51,595 | |||
Akita Bank Ltd. (The) | 21,000 | 83,891 | |||
Aomori Bank Ltd. (The) | 14,000 | 34,502 | |||
Awa Bank Ltd. (The) | 21,000 | 116,739 | |||
Bank of Iwate Ltd. (The) | 1,400 | 79,244 | |||
Bank of Nagoya Ltd. (The) | 14,000 | 53,407 | |||
Bank of Okinawa Ltd. (The) | 2,100 | 82,355 | |||
Bank of Saga Ltd. (The) | 14,000 | 39,071 | |||
Bank of the Ryukyus Ltd. | 3,500 | 39,071 | |||
Chiba Kogyo Bank Ltd. (The)a | 3,500 | 26,270 | |||
Chukyo Bank Ltd. (The) | 14,000 | 42,064 | |||
Daishi Bank Ltd. (The) | 28,000 | 95,156 | |||
Ehime Bank Ltd. (The) | 14,000 | 39,228 | |||
Eighteenth Bank Ltd. (The) | 14,000 | 41,276 | |||
FIDEA Holdings Co. Ltd.a | 8,400 | 13,706 | |||
Fukui Bank Ltd. (The) | 28,000 | 92,635 | |||
Higashi-Nippon Bank Ltd. (The) | 14,000 | 27,255 | |||
Higo Bank Ltd. (The) | 14,000 | 75,305 | |||
Hokkoku Bank Ltd. (The) | 21,000 | 75,857 | |||
Hokuetsu Bank Ltd. (The) | 21,000 | 34,738 | |||
Hyakugo Bank Ltd. (The) | 21,000 | 95,943 | |||
Hyakujushi Bank Ltd. (The) | 21,000 | 78,692 | |||
Juroku Bank Ltd. (The) | 28,000 | 111,540 | |||
Kagoshima Bank Ltd. (The) | 14,000 | 97,676 | |||
Kansai Urban Banking Corp. | 21,000 | 34,974 | |||
Kanto Tsukuba Bank Ltd. (The)a | 4,900 | 15,053 | |||
Keiyo Bank Ltd. (The) | 21,000 | 99,724 | |||
Kiyo Holdings Inc. | 56,000 | 72,469 | |||
Michinoku Bank Ltd. (The) | 14,000 | 28,043 |
SCHEDULESOF INVESTMENTS | 17 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI JAPAN SMALL CAP INDEX FUND
February 28, 2010
Security | Shares | Value | |||
Mie Bank Ltd. (The) | 14,000 | $ | 37,022 | ||
Minato Bank Ltd. (The)a | 14,000 | 18,432 | |||
Miyazaki Bank Ltd. (The) | 14,000 | 43,639 | |||
Musashino Bank Ltd. (The) | 2,800 | 79,086 | |||
Nanto Bank Ltd. (The) | 21,000 | 114,376 | |||
Ogaki Kyoritsu Bank Ltd. (The) | 21,000 | 73,494 | |||
Oita Bank Ltd. (The) | 14,000 | 50,729 | |||
San-in Godo Bank Ltd. (The) | 14,000 | 110,910 | |||
Shiga Bank Ltd. (The) | 21,000 | 128,791 | |||
Shikoku Bank Ltd. (The) | 14,000 | 45,057 | |||
Tochigi Bank Ltd. (The) | 7,000 | 29,382 | |||
Toho Bank Ltd. (The) | 21,000 | 69,476 | |||
Tokushima Bank Ltd. (The) | 7,000 | 23,553 | |||
Tokyo Tomin Bank Ltd. (The) | 2,800 | 35,762 | |||
Yachiyo Bank Ltd. (The) | 1,400 | 32,296 | |||
Yamagata Bank Ltd. (The) | 14,000 | 61,599 | |||
Yamanashi Chuo Bank Ltd. (The) | 14,000 | 59,236 | |||
2,790,319 | |||||
BEVERAGES – 0.66% | |||||
Kagome Co. Ltd.b | 6,300 | 113,005 | |||
Takara Holdings Inc. | 14,000 | 76,723 | |||
189,728 | |||||
BIOTECHNOLOGY – 0.18% | |||||
AnGes MG Inc.a | 14 | 22,261 | |||
OncoTherapy Science Inc.a | 7 | 14,423 | |||
Takara Bio Inc.a | 7 | 14,856 | |||
51,540 | |||||
BUILDING MATERIALS – 1.20% | |||||
Central Glass Co. Ltd. | 14,000 | 64,277 | |||
Chofu Seisakusho Co. Ltd. | 2,100 | 50,288 | |||
Nichias Corp.a | 7,000 | 30,327 | |||
Sanwa Holdings Corp. | 21,000 | 61,678 | |||
Sumitomo Osaka Cement Co. Ltd. | 35,000 | 59,472 | |||
Takara Standard Co. Ltd. | 14,000 | 81,764 | |||
347,806 | |||||
CHEMICALS – 6.24% | |||||
Adeka Corp. | 8,400 | 78,173 | |||
Aica Kogyo Co. Ltd. | 7,000 | 73,966 | |||
C. Uyemura & Co. Ltd. | 700 | 24,970 | |||
Chugoku Marine Paints Ltd. | 7,000 | 45,215 |
Security | Shares | Value | |||
Dainichiseika Color & Chemicals | 7,000 | $ | 25,443 | ||
DIC Corp. | 49,000 | 102,009 | |||
Earth Chemical Co. Ltd. | 1,400 | 41,386 | |||
Fujimi Inc. | 2,100 | 35,518 | |||
Ishihara Sangyo Kaisha Ltd.a | 35,000 | 27,964 | |||
Lintec Corp.b | 4,200 | 79,260 | |||
Nihon Nohyaku Co. Ltd. | 7,000 | 38,440 | |||
Nihon Parkerizing Co. Ltd. | 7,000 | 89,327 | |||
Nippon Carbon Co. Ltd. | 14,000 | 42,852 | |||
Nippon Kayaku Co. Ltd. | 14,000 | 115,163 | |||
Nippon Paint Co. Ltd. | 21,000 | 131,627 | |||
Nippon Shokubai Co. Ltd. | 7,000 | 60,654 | |||
Nippon Soda Co. Ltd. | 14,000 | 53,880 | |||
Nippon Synthetic Chemical | 7,000 | 45,215 | |||
NOF Corp. | 14,000 | 54,825 | |||
Sakai Chemical Industry Co. Ltd. | 7,000 | 30,563 | |||
Stella Chemifa Corp. | 700 | 28,791 | |||
Sumitomo Bakelite Co. Ltd. | 21,000 | 110,595 | |||
Taiyo Ink Manufacturing Co. Ltd. | 1,400 | 36,912 | |||
Takasago International Corp. | 7,000 | 36,077 | |||
Toagosei Co. Ltd. | 21,000 | 82,001 | |||
Tokai Carbon Co. Ltd. | 14,000 | 75,778 | |||
Tokyo Ohka Kogyo Co. Ltd. | 4,200 | 74,817 | |||
Toyo Ink Manufacturing Co. Ltd. | 21,000 | 90,508 | |||
Zeon Corp. | 14,000 | 73,257 | |||
1,805,186 | |||||
COMMERCIAL SERVICES – 1.80% | |||||
Aeon Delight Co. Ltd. | 1,400 | 19,157 | |||
Daiseki Co. Ltd. | 2,860 | 56,160 | |||
Meitec Corp. | 3,500 | 64,041 | |||
Nichii Gakkan Co. | 4,200 | 39,275 | |||
Nishio Rent All Co. Ltd. | 2,100 | 15,266 | |||
PARK24 Co. Ltd. | 9,100 | 94,620 | |||
Pasona Group Inc. | 28 | 19,787 | |||
Sohgo Security Services Co. Ltd. | 5,600 | 63,773 | |||
So-net M3 Inc. | 7 | 25,995 | |||
TKC Corp. | 2,100 | 38,803 | |||
Toppan Forms Co. Ltd. | 5,600 | 60,622 | |||
Zenrin Co. Ltd. | 2,100 | 24,600 | |||
522,099 |
18 | 2010 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI JAPAN SMALL CAP INDEX FUND
February 28, 2010
Security | Shares | Value | |||
COMPUTERS – 0.58% | |||||
CSK Holdings Corp.a | 6,300 | $ | 27,223 | ||
DTS Corp. | 2,800 | 27,790 | |||
Ines Corp. | 2,100 | 14,793 | |||
Net One Systems Co. Ltd. | 42 | 44,096 | |||
NS Solutions Corp. | 2,100 | 33,131 | |||
Vic Tokai Corp. | 2,100 | 22,024 | |||
169,057 | |||||
COSMETICS & PERSONAL CARE – 1.35% | |||||
Aderans Holdings Co. Ltd.a | 3,500 | 41,632 | |||
Fancl Corp. | 4,200 | 85,073 | |||
Kose Corp. | 2,800 | 60,811 | |||
Lion Corp. | 14,000 | 69,634 | |||
Mandom Corp.b | 2,800 | 78,456 | |||
Pigeon Corp. | 1,400 | 54,588 | |||
390,194 | |||||
DISTRIBUTION & WHOLESALE – 2.37% | |||||
Doshisha Co. Ltd. | 2,100 | 50,335 | |||
F&A Aqua Holdings Inc. | 2,800 | 28,673 | |||
Hanwa Co. Ltd. | 21,000 | 83,419 | |||
Inaba Denki Sangyo Co. Ltd. | 2,100 | 48,657 | |||
Itochu Enex Co. Ltd. | 8,400 | 41,024 | |||
Iwatani Corp. | 21,000 | 60,260 | |||
Japan Pulp & Paper Co. Ltd. | 14,000 | 49,468 | |||
Japan Wind Development Co. Ltd. | 7 | 17,503 | |||
JFE Shoji Holdings Inc. | 14,000 | 48,366 | |||
Kanematsu Corp.a | 42,000 | 32,611 | |||
Matsuda Sangyo Co. Ltd. | 1,460 | 25,137 | |||
Nagase & Co. Ltd. | 7,000 | 81,213 | |||
Nippon Gas Co. Ltd. | 4,200 | 56,006 | |||
Ship Healthcare Holdings Inc. | 28 | 15,849 | |||
Sumikin Bussan Corp. | 7,000 | 15,282 | |||
Trusco Nakayama Corp. | 2,100 | 31,595 | |||
685,398 | |||||
DIVERSIFIED FINANCIAL SERVICES – 2.84% | |||||
AIFUL Corp.b | 10,150 | 15,305 | |||
Cedyna Financial Corp.a | 10,500 | 18,905 | |||
Century Tokyo Leasing Corp. | 4,980 | 69,097 | |||
Fuyo General Lease Co. Ltd. | 1,400 | 38,976 | |||
GCA Savvian Group Corp.a | 7 | 6,262 | |||
Hitachi Capital Corp. | 3,500 | 48,169 | |||
IBJ Leasing Co. Ltd. | 2,100 | 37,976 |
Security | Shares | Value | |||
Ichiyoshi Securities Co. Ltd. | 4,200 | $ | 27,838 | ||
Jaccs Co. Ltd. | 14,000 | 30,406 | |||
Japan Securities Finance Co. Ltd. | 7,700 | 55,282 | |||
Kenedix Inc.a | 98 | 28,243 | |||
Marusan Securities Co. Ltd. | 6,300 | 36,369 | |||
Mizuho Investors Securities Co. Ltd.a | 28,000 | 28,988 | |||
Okasan Securities Group Inc. | 14,000 | 62,544 | |||
Orient Corp.a,b | 21,000 | 19,141 | |||
Osaka Securities Exchange Co. Ltd. | 21 | 114,021 | |||
Promise Co. Ltd.a | 5,950 | 45,597 | |||
Ricoh Leasing Co. Ltd. | 2,100 | 48,161 | |||
Takefuji Corp. | 5,670 | 25,139 | |||
Tokai Tokyo Financial Holdings Inc. | 14,000 | 53,879 | |||
Toyo Securities Co. Ltd.a | 7,000 | 12,840 | |||
823,138 | |||||
ELECTRIC – 0.27% | |||||
Okinawa Electric Power Co. Inc. (The) | 1,400 | 77,353 | |||
77,353 | |||||
ELECTRICAL COMPONENTS & EQUIPMENT – 1.61% | |||||
Fujikura Ltd. | 28,000 | 148,405 | |||
Funai Electric Co. Ltd. | 2,100 | 90,626 | |||
Hitachi Cable Ltd. | 14,000 | 35,920 | |||
Nippon Signal Co. Ltd. (The) | 3,500 | 30,957 | |||
NPC Inc. | 700 | 16,550 | |||
Sinfonia Technology Co. Ltd.b | 14,000 | 31,981 | |||
Takaoka Electric | 7,000 | 21,505 | |||
Tokyo Rope Manufacturing Co. Ltd. | 14,000 | 34,344 | |||
Toshiba Tec Corp.a | 14,000 | 54,352 | |||
464,640 | |||||
ELECTRONICS – 6.18% | |||||
Alps Electric Co. Ltd.a | 14,000 | 82,395 | |||
Anritsu Corp.a | 14,000 | 51,831 | |||
Chiyoda Integre Co. Ltd. | 2,100 | 26,633 | |||
CMK Corp.a | 4,200 | 29,114 | |||
Cosel Co. Ltd. | 3,500 | 47,499 | |||
Dainippon Screen | 21,000 | 96,180 | |||
Eizo Nanao Corp. | 2,100 | 51,256 | |||
Fujitsu General Ltd. | 7,000 | 28,830 | |||
Furuno Electric Co. Ltd. | 2,800 | 12,414 | |||
Futaba Corp. | 3,500 | 61,205 |
SCHEDULESOF INVESTMENTS | 19 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI JAPAN SMALL CAP INDEX FUND
February 28, 2010
Security | Shares | Value | |||
Hamamatsu Photonics K.K. | 5,600 | $ | 136,684 | ||
HORIBA Ltd. | 2,800 | 75,463 | |||
Hosiden Corp. | 5,600 | 67,554 | |||
JEOL Ltd. | 7,000 | 25,128 | |||
Kaga Electronics Co. Ltd.b | 3,500 | 35,486 | |||
Koa Corp. | 4,200 | 40,032 | |||
Kuroda Electric Co. Ltd. | 2,800 | 39,007 | |||
Macnica Inc. | 2,100 | 35,187 | |||
Meiko Electronics Co. Ltd. | 700 | 16,778 | |||
Micronics Japan Co. Ltd. | 1,400 | 24,608 | |||
Nichicon Corp. | 6,300 | 69,547 | |||
Nihon Dempa Kogyo Co. Ltd.b | 1,400 | 29,445 | |||
Nippon Chemi-Con Corp.a | 14,000 | 46,790 | |||
Nitto Kogyo Corp. | 2,800 | 26,436 | |||
Ryosan Co. Ltd. | 4,200 | 99,677 | |||
Sanshin Electronics Co. Ltd. | 2,800 | 21,741 | |||
Sanyo Denki Co. Ltd. | 7,000 | 23,553 | |||
Star Micronics Co. Ltd. | 4,200 | 41,497 | |||
Taiyo Yuden Co. Ltd. | 7,000 | 96,810 | |||
Tamura Corp.a | 7,000 | 20,717 | |||
Tokyo Seimitsu Co. Ltd.a | 3,500 | 49,468 | |||
Toyo Corp. | 3,500 | 28,121 | |||
ULVAC Inc.b | 2,800 | 68,216 | |||
Wacom Co. Ltd. | 35 | 54,076 | |||
Yamatake Corp. | 5,600 | 131,327 | |||
1,790,705 | |||||
ENGINEERING & CONSTRUCTION – 3.82% | |||||
Chudenko Corp. | 2,800 | 35,510 | |||
COMSYS Holdings Corp. | 11,900 | 114,226 | |||
Japan Airport Terminal Co. Ltd. | 3,500 | 52,855 | |||
Kandenko Co. Ltd. | 7,000 | 44,112 | |||
Kyowa Exeo Corp. | 7,000 | 59,393 | |||
Maeda Corp. | 14,000 | 43,797 | |||
Maeda Road Construction Co. Ltd. | 7,000 | 59,393 | |||
Nippo Corp. | 7,000 | 55,140 | |||
Nippon Road Co. Ltd. (The) | 7,000 | 16,069 | |||
Nishimatsu Construction Co. Ltd. | 28,000 | 34,029 | |||
Okumura Corp. | 14,000 | 50,571 | |||
Penta-Ocean Construction Co. Ltd.a | 24,500 | 29,500 | |||
Shinko Plantech Co. Ltd. | 3,500 | 34,581 | |||
SHO-BOND Holdings Co. Ltd. | 2,800 | 54,069 | |||
Taihei Kogyo Co. Ltd. | 7,000 | 33,399 |
Security | Shares | Value | |||
Taikisha Ltd. | 3,500 | $ | 59,000 | ||
Takasago Thermal | 7,000 | 53,171 | |||
Takuma Co. Ltd.a | 7,000 | 16,306 | |||
Toa Corp. | 14,000 | 15,597 | |||
Toda Corp. | 21,000 | 74,202 | |||
Tokyu Construction Co. Ltd.a | 8,820 | 24,614 | |||
Toshiba Plant Systems & | 7,000 | 82,710 | |||
Toyo Construction Co. Ltd. | 35,000 | 18,117 | |||
Toyo Engineering Corp. | 14,000 | 46,948 | |||
1,107,309 | |||||
ENTERTAINMENT – 0.77% | |||||
Avex Group Holdings Inc. | 3,500 | 32,336 | |||
Resorttrust Inc. | 3,500 | 48,720 | |||
Shochiku Co. Ltd. | 7,000 | 62,072 | |||
Toei Co. Ltd. | 7,000 | 35,683 | |||
Tokyotokeiba Co. Ltd. | 14,000 | 20,323 | |||
Yomiuri Land Co. Ltd. | 7,000 | 23,553 | |||
222,687 | |||||
ENVIRONMENTAL CONTROL – 0.11% | |||||
Asahi Holdings Inc. | 2,100 | 32,611 | |||
32,611 | |||||
FOOD – 4.21% | |||||
Ariake Japan Co. Ltd. | 2,100 | 32,470 | |||
Ezaki Glico Co. Ltd. | 7,000 | 81,528 | |||
Fuji Oil Co. Ltd. | 8,400 | 130,918 | |||
House Foods Corp. | 5,600 | 81,859 | |||
Itoham Foods Inc. | 14,000 | 52,462 | |||
J-Oil Mills Inc. | 7,000 | 21,977 | |||
Kato Sangyo Co. Ltd. | 2,100 | 34,502 | |||
Kewpie Corp. | 8,400 | 93,013 | |||
Maruha Nichiro Holdings Inc. | 35,000 | 49,626 | |||
MEGMILK SNOW BRAND Co. Ltd.a | 3,500 | 54,982 | |||
Mitsui Sugar Co. Ltd. | 7,000 | 26,231 | |||
Morinaga & Co. Ltd. | 28,000 | 64,907 | |||
Morinaga Milk Industry Co. Ltd. | 21,000 | 87,436 | |||
Nichirei Corp. | 28,000 | 107,759 | |||
Nippon Beet Sugar | 14,000 | 37,653 | |||
Nippon Flour Mills Co. Ltd. | 14,000 | 72,154 | |||
Nippon Suisan Kaisha Ltd. | 20,300 | 59,622 |
20 | 2010 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI JAPAN SMALL CAP INDEX FUND
February 28, 2010
Security | Shares | Value | |||
Nisshin OilliO Group Ltd. (The) | 14,000 | $ | 70,264 | ||
Prima Meat Packers Ltd. | 14,000 | 15,124 | |||
Unicharm Petcare Corp. | 1,400 | 45,057 | |||
1,219,544 | |||||
FOREST PRODUCTS & PAPER – 1.33% | |||||
Daio Paper Corp. | 7,000 | 56,006 | |||
Hokuetsu Kishu Paper Co. Ltd. | 10,500 | 51,280 | |||
Mitsubishi Paper Mills Ltd. | 35,000 | 40,567 | |||
Rengo Co. Ltd. | 21,000 | 133,281 | |||
Sumitomo Forestry Co. Ltd. | 13,300 | 103,119 | |||
384,253 | |||||
GAS – 0.48% | |||||
Saibu Gas Co. Ltd. | 42,000 | 117,684 | |||
Shizuoka Gas Co. Ltd. | 3,500 | 21,426 | |||
139,110 | |||||
HAND & MACHINE TOOLS – 1.61% | |||||
DISCO Corp. | 2,100 | 115,557 | |||
Hitachi Koki Co. Ltd. | 4,900 | 51,115 | |||
Meidensha Corp. | 21,000 | 92,871 | |||
Mori Seiki Co. Ltd. | 8,400 | 88,948 | |||
OSG Corp. | 7,700 | 77,290 | |||
Union Tool Co.b | 1,400 | 39,386 | |||
465,167 | |||||
HEALTH CARE – PRODUCTS – 1.35% | |||||
Hogy Medical Co. Ltd. | 1,400 | 71,367 | |||
Nakanishi Inc. | 700 | 66,168 | |||
Nihon Kohden Corp. | 3,500 | 60,575 | |||
Nipro Corp. | 6,300 | 123,852 | |||
Paramount Bed Co. Ltd. | 2,100 | 42,607 | |||
Topcon Corp.b | 5,600 | 26,656 | |||
391,225 | |||||
HEALTH CARE – SERVICES – 0.06% | |||||
Message Co. Ltd. | 7 | 16,542 | |||
16,542 | |||||
HOME BUILDERS – 0.55% | |||||
Haseko Corp.a | 94,500 | 92,517 | |||
PanaHome Corp. | 7,000 | 48,129 | |||
Token Corp. | 840 | 19,037 | |||
159,683 | |||||
HOME FURNISHINGS – 1.36% | |||||
Alpine Electronics Inc.a | 4,200 | 50,713 |
Security | Shares | Value | |||
Canon Electronics Inc. | 2,100 | $ | 44,285 | ||
Daiwa Industries Ltd. | 7,000 | 32,533 | |||
Foster Electric Co. Ltd.b | 2,100 | 52,934 | |||
France Bed Holdings Co. Ltd. | 14,000 | 20,323 | |||
Juki Corp.a | 14,000 | 19,063 | |||
JVC KENWOOD Holdings Inc.a | 60,200 | 26,420 | |||
Nidec Sankyo Corp. | 7,000 | 57,582 | |||
Noritz Corp. | 2,800 | 39,921 | |||
Pioneer Corp.a,b | 14,000 | 49,468 | |||
393,242 | |||||
HOUSEHOLD PRODUCTS & WARES – 0.09% | |||||
Pilot Corp. | 21 | 25,876 | |||
25,876 | |||||
HOUSEWARES – 0.41% | |||||
Noritake Co. Ltd. | 14,000 | 38,598 | |||
Sangetsu Co. Ltd. | 3,500 | 81,410 | |||
120,008 | |||||
INTERNET – 1.98% | |||||
Access Co. Ltd.a,b | 21 | 31,784 | |||
CyberAgent Inc. | 49 | 89,161 | |||
Digital Garage Inc. | 7 | 14,959 | |||
Dwango Co. Ltd. | 7 | 12,123 | |||
eAccess Ltd. | 119 | 96,148 | |||
En-Japan Inc. | 14 | 16,479 | |||
GMO Internet Inc. | 4,900 | 18,417 | |||
Gourmet Navigator Inc. | 14 | 28,704 | |||
Internet Initiative Japan Inc. | 14 | 27,727 | |||
kabu.com Securities Co. Ltd. | 35 | 35,093 | |||
Kakaku.com Inc. | 14 | 54,825 | |||
Mixi Inc.a | 7 | 45,057 | |||
Monex Group Inc. | 98 | 46,869 | |||
Opt Inc. | 7 | 9,531 | |||
So-net Entertainment Corp. | 14 | 36,550 | |||
VeriSign Japan K.K. | 28 | 10,681 | |||
574,108 | |||||
IRON & STEEL – 1.15% | |||||
Aichi Steel Corp. | 14,000 | 57,818 | |||
Godo Steel Ltd. | 14,000 | 30,406 | |||
Kyoei Steel Ltd. | 1,400 | 25,758 | |||
Mitsubishi Steel | 14,000 | 23,946 |
SCHEDULESOF INVESTMENTS | 21 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI JAPAN SMALL CAP INDEX FUND
February 28, 2010
Security | Shares | Value | |||
Nakayama Steel Works Ltd. | 14,000 | $ | 20,165 | ||
Nippon Metal Industry Co. Ltd. | 14,000 | 20,796 | |||
Nippon Yakin Kogyo Co. Ltd. | 10,500 | 31,193 | |||
Sanyo Special Steel Co. Ltd. | 7,000 | 27,964 | |||
TOPY Industries Ltd. | 21,000 | 38,046 | |||
Yodogawa Steel Works Ltd. | 14,000 | 57,818 | |||
333,910 | |||||
LEISURE TIME – 1.42% | |||||
Accordia Golf Co. Ltd. | 49 | 51,556 | |||
Daiichikosho Co. Ltd. | 4,200 | 56,668 | |||
Fields Corp. | 14 | 17,550 | |||
H.I.S. Co. Ltd. | 2,100 | 37,787 | |||
Heiwa Corp. | 4,900 | 51,501 | |||
Mars Engineering Corp. | 700 | 13,620 | |||
Mizuno Corp. | 7,000 | 32,139 | |||
Pacific Golf Group International | 49 | 36,006 | |||
Roland Corp. | 2,100 | 20,819 | |||
Round One Corp. | 4,200 | 27,034 | |||
Tokyo Dome Corp. | 14,000 | 38,913 | |||
Universal Entertainment Corp.a | 2,100 | 27,271 | |||
410,864 | |||||
LODGING – 0.10% | |||||
Fujita Kanko Inc. | 7,000 | 28,121 | |||
28,121 | |||||
MACHINERY – 4.16% | |||||
Aida Engineering Ltd. | 7,700 | 25,561 | |||
Chugai Ro Co. Ltd. | 7,000 | 19,141 | |||
CKD Corp. | 6,300 | 48,350 | |||
Daifuku Co. Ltd. | 7,000 | 51,831 | |||
Daihen Corp. | 14,000 | 60,496 | |||
Fuji Machine Manufacturing Co. Ltd. | 3,500 | 56,518 | |||
Furukawa Co. Ltd. | 28,000 | 31,193 | |||
Harmonic Drive Systems Inc. | 7 | 21,268 | |||
Iseki & Co. Ltd.a,b | 14,000 | 40,803 | |||
Komori Corp. | 5,600 | 62,639 | |||
Makino Milling Machine Co. Ltd.a | 7,000 | 35,998 | |||
Max Co. Ltd. | 7,000 | 73,178 | |||
Miura Co. Ltd. | 2,800 | 73,698 | |||
Modec Inc. | 2,100 | 37,432 | |||
Nabtesco Corp. | 7,000 | 87,987 | |||
Nippon Sharyo Ltd. | 7,000 | 43,167 |
Security | Shares | Value | |||
Nippon Thompson Co. Ltd. | 7,000 | $ | 44,900 | ||
Obara Corp. | 1,400 | 15,345 | |||
Okuma Corp. | 14,000 | 83,182 | |||
Shima Seiki Manufacturing Ltd. | 2,100 | 40,764 | |||
Sintokogio Ltd. | 5,600 | 40,331 | |||
Tadano Ltd. | 14,000 | 66,168 | |||
Toshiba Machine Co. Ltd.b | 14,000 | 56,400 | |||
Toyo Kanetsu K.K. | 14,000 | 27,412 | |||
Tsubakimoto Chain Co. | 14,000 | 59,709 | |||
1,203,471 | |||||
MACHINERY – DIVERSIFIED – 0.68% | |||||
Ebara Corp.a | 35,000 | 166,995 | |||
Torishima Pump | 1,400 | 30,374 | |||
197,369 | |||||
MANUFACTURING – 1.60% | |||||
Amano Corp. | 7,000 | 61,442 | |||
Glory Ltd. | 5,600 | 125,971 | |||
Kureha Corp. | 14,000 | 65,695 | |||
Nikkiso Co. Ltd. | 7,000 | 43,639 | |||
Nitta Corp. | 2,800 | 41,213 | |||
Tamron Co. Ltd. | 1,400 | 20,323 | |||
Tenma Corp. | 2,800 | 31,351 | |||
Tokai Rubber Industries Ltd. | 2,800 | 36,424 | |||
Toyo Tanso Co. Ltd. | 700 | 36,274 | |||
462,332 | |||||
MEDIA – 0.45% | |||||
Gakken Holdings Co. Ltd. | 7,000 | 17,172 | |||
Kadokawa Group Holdings Inc. | 2,100 | 50,051 | |||
SKY Perfect JSAT Holdings Inc. | 140 | 62,072 | |||
129,295 | |||||
METAL FABRICATE & HARDWARE – 1.63% | |||||
Kitz Corp. | 7,000 | 36,314 | |||
Misumi Group Inc. | 7,000 | 130,051 | |||
Nachi-Fujikoshi Corp. | 21,000 | 59,315 | |||
Neturen Co. Ltd. | 4,200 | 25,002 | |||
Oiles Corp. | 3,580 | 56,158 | |||
Onoken Co. Ltd. | 1,400 | 9,295 | |||
Ryobi Ltd.a | 14,000 | 43,954 | |||
Tocalo Co. Ltd. | 1,400 | 27,239 | |||
Toho Zinc Co. Ltd. | 14,000 | 61,442 |
22 | 2010 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI JAPAN SMALL CAP INDEX FUND
February 28, 2010
Security | Shares | Value | |||
Yamazen Corp. | 6,300 | $ | 23,679 | ||
472,449 | |||||
MINING – 1.32% | |||||
Nippon Coke & Engineering Co. Ltd. | 14,000 | 17,960 | |||
Nippon Denko Co. Ltd. | 7,000 | 43,088 | |||
Nippon Light Metal Co. Ltd.a | 56,000 | 64,277 | |||
Nittetsu Mining Co. Ltd. | 7,000 | 30,248 | |||
OSAKA Titanium technologies Co. Ltd. | 1,400 | 44,569 | |||
Pacific Metals Co. Ltd. | 14,000 | 102,403 | |||
Sumitomo Light Metal | 35,000 | 31,115 | |||
Toho Titanium Co. Ltd. | 2,800 | 49,563 | |||
383,223 | |||||
OFFICE & BUSINESS EQUIPMENT – 0.15% | |||||
Canon Finetech Inc. | 2,800 | 43,828 | |||
43,828 | |||||
OFFICE FURNISHINGS – 0.35% | |||||
Kokuyo Co. Ltd. | 8,400 | 63,710 | |||
Okamura Corp. | 7,000 | 37,180 | |||
100,890 | |||||
OIL & GAS – 0.08% | |||||
AOC Holdings Inc. | 4,200 | 22,781 | |||
22,781 | |||||
PACKAGING & CONTAINERS – 0.38% | |||||
FP Corp. | 1,400 | 65,774 | |||
Fuji Seal International Inc. | 2,100 | 43,174 | |||
108,948 | |||||
PHARMACEUTICALS – 3.34% | |||||
EPS Co. Ltd. | 7 | 28,476 | |||
Kaken Pharmaceutical Co. Ltd. | 7,000 | 62,072 | |||
Kobayashi Pharmaceutical Co. Ltd. | 2,800 | 114,218 | |||
KYORIN Co. Ltd. | 7,000 | 105,002 | |||
Miraca Holdings Inc. | 4,900 | 148,326 | |||
Mochida Pharmaceutical Co. Ltd. | 7,000 | 68,373 | |||
Nichi-Iko Pharmaceutical Co. Ltd.b | 2,100 | 61,938 | |||
Nippon Shinyaku Co. Ltd. | 7,000 | 78,692 | |||
Rohto Pharmaceutical Co. Ltd. | 7,000 | 81,292 | |||
Sawai Pharmaceutical Co. Ltd.b | 1,400 | 96,258 | |||
Seikagaku Corp. | 3,500 | 37,613 | |||
Toho Holdings Co. Ltd. | 3,500 | 47,341 |
Security | Shares | Value | |||
Towa Pharmaceutical Co. Ltd. | 700 | $ | 37,653 | ||
967,254 | |||||
REAL ESTATE – 1.30% | |||||
Arnest One Corp. | 3,500 | 33,872 | |||
Daibiru Corp. | 4,900 | 39,315 | |||
Daikyo Inc.a | 21,000 | 38,755 | |||
Goldcrest Co. Ltd. | 1,680 | 47,830 | |||
Heiwa Real Estate Co. Ltd. | 17,500 | 54,746 | |||
Leopalace21 Corp.a | 9,100 | 43,828 | |||
Sankei Building Co. Ltd. (The) | 2,800 | 18,149 | |||
Shoei Co. Ltd. | 2,800 | 22,371 | |||
Sumitomo Real Estate Sales Co. Ltd. | 700 | 30,366 | |||
TOC Co. Ltd. | 7,000 | 25,837 | |||
Tokyu Livable Inc. | 2,100 | 17,062 | |||
Touei Housing Corp. | 700 | 5,396 | |||
377,527 | |||||
REAL ESTATE INVESTMENT TRUSTS – 4.20% | |||||
DA Office Investment Corp. | 21 | 43,836 | |||
Frontier Real Estate Investment Corp. | 14 | 104,608 | |||
Fukuoka REIT Corp. | 7 | 38,677 | |||
Global One Real Estate | 7 | 51,753 | |||
Hankyu REIT Inc. | 7 | 27,373 | |||
Japan Excellent Inc. | 14 | 62,150 | |||
Japan Logistics Fund Inc. | 14 | 103,190 | |||
Kenedix Realty Investment Corp. | 21 | 57,306 | |||
MID REIT Inc. | 14 | 29,208 | |||
Mori Hills REIT Investment Corp. | 7 | 20,709 | |||
MORI TRUST Sogo REIT Inc. | 7 | 61,757 | |||
Nippon Accommodations Fund Inc. | 14 | 72,627 | |||
Nippon Commercial Investment Corp. | 21 | 26,491 | |||
Nippon Residential Investment Corp. | 56 | 131,705 | |||
Nomura Real Estate | 7 | 28,633 | |||
ORIX JREIT Inc. | 21 | 100,906 | |||
Premier Investment Corp. | 14 | 46,302 | |||
TOKYU REIT Inc. | 14 | 68,688 | |||
Top REIT Inc. | 14 | 63,962 | |||
United Urban Investment Corp. | 14 | 75,305 | |||
1,215,186 | |||||
RETAIL – 9.94% | |||||
Alpen Co. Ltd. | 1,400 | 21,993 |
SCHEDULESOF INVESTMENTS | 23 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI JAPAN SMALL CAP INDEX FUND
February 28, 2010
Security | Shares | Value | |||
Aoki Holdings Inc. | 2,800 | $ | 33,399 | ||
Aoyama Trading Co. Ltd. | 5,600 | 91,564 | |||
Arcs Co. Ltd. | 2,800 | 38,251 | |||
Askul Corp. | 2,100 | 38,377 | |||
Autobacs Seven Co. Ltd. | 2,800 | 82,962 | |||
Belluna Co. Ltd. | 2,450 | 10,311 | |||
Best Denki Co. Ltd.a | 7,000 | 16,699 | |||
BIC Camera Inc. | 63 | 21,587 | |||
Cawachi Ltd. | 1,400 | 28,169 | |||
Chiyoda Co. Ltd. | 2,800 | 34,218 | |||
Circle K Sunkus Co. Ltd. | 4,900 | 61,481 | |||
cocokara fine HOLDINGS Inc. | 700 | 11,887 | |||
Colowide Co. Ltd.b | 3,500 | 20,835 | |||
Culture Convenience Club Co. Ltd.b | 8,400 | 42,158 | |||
Daiei Inc. (The)a,b | 6,300 | 20,914 | |||
DCM Japan Holdings Co. Ltd. | 7,000 | 40,331 | |||
Don Quijote Co. Ltd. | 4,200 | 106,341 | |||
Doutor Nichires Holdings Co. Ltd. | 4,200 | 53,690 | |||
Duskin Co. Ltd. | 4,900 | 90,815 | |||
EDION Corp. | 7,000 | 73,809 | |||
Fuji Co. Ltd. | 1,400 | 26,924 | |||
GEO Corp. | 35 | 36,826 | |||
Gulliver International Co. Ltd. | 350 | 14,888 | |||
H2O Retailing Corp. | 14,000 | 92,950 | |||
Heiwado Co. Ltd. | 3,500 | 44,742 | |||
Honeys Co. Ltd. | 1,820 | 13,783 | |||
Izumi Co. Ltd. | 5,600 | 70,012 | |||
Izumiya Co. Ltd. | 7,000 | 31,902 | |||
Joshin Denki Co. Ltd.b | 7,000 | 62,544 | |||
Keiyo Co. Ltd.b | 3,500 | 17,448 | |||
Kisoji Co. Ltd. | 3,500 | 75,108 | |||
Kohnan Shoji Co. Ltd. | 2,100 | 23,797 | |||
Komeri Co. Ltd. | 2,800 | 75,809 | |||
K’s Holdings Corp. | 3,500 | 102,954 | |||
Maruetsu Inc. (The) | 7,000 | 29,460 | |||
Matsumotokiyoshi Co. Ltd. | 3,500 | 76,959 | |||
Matsuya Co. Ltd.a,b | 2,800 | 24,041 | |||
Megane Top Co. Ltd. | 1,400 | 10,177 | |||
MOS Food Services Inc. | 2,800 | 47,735 | |||
Nishimatsuya Chain Co. Ltd. | 4,900 | 46,042 | |||
Nissen Holdings Co. Ltd. | 4,900 | 20,016 | |||
Parco Co. Ltd. | 7,000 | 54,903 | |||
Paris Miki Holdings Inc. | 3,500 | 29,815 |
Security | Shares | Value | |||
Plenus Co. Ltd. | 2,800 | $ | 39,480 | ||
Point Inc. | 1,260 | 78,125 | |||
Right On Co. Ltd. | 2,100 | 15,786 | |||
Ryohin Keikaku Co. Ltd. | 2,100 | 87,909 | |||
Saint Marc Holdings Co. Ltd. | 700 | 23,434 | |||
Saizeriya Co. Ltd. | 2,800 | 51,327 | |||
San-A & Co. Ltd. | 700 | 25,679 | |||
Sankyo-Tateyama Holdings Inc.a | 35,000 | 44,506 | |||
Seiko Holdings Corp. | 7,000 | 13,943 | |||
Senshukai Co. Ltd. | 4,200 | 24,246 | |||
Shimachu Co. Ltd. | 4,200 | 88,712 | |||
Sugi Holdings Co. Ltd. | 2,800 | 67,775 | |||
Sundrug Co. Ltd. | 2,800 | 67,869 | |||
Toridoll Corp. | 7 | 12,737 | |||
Tsuruha Holdings Inc. | 1,400 | 54,195 | |||
Valor Co. Ltd. | 3,500 | 28,555 | |||
Watami Co. Ltd.b | 2,800 | 51,233 | |||
Xebio Co. Ltd. | 2,100 | 40,339 | |||
Yoshinoya Holdings Co. Ltd.b | 42 | 46,790 | |||
Zensho Co. Ltd.b | 6,300 | 47,074 | |||
2,878,340 | |||||
SEMICONDUCTORS – 0.43% | |||||
Megachips Corp. | 1,400 | 18,527 | |||
Mimasu Semiconductor | 2,100 | 25,427 | |||
NEC Electronics Corp.a,b | 3,500 | 34,069 | |||
Sanken Electric Co. Ltd. | 7,000 | 24,498 | |||
Shindengen Electric | 7,000 | 22,056 | |||
124,577 | |||||
SHIPBUILDING – 0.54% | |||||
Hitachi Zosen Corp.a | 73,500 | 103,387 | |||
Namura Shipbuilding Co. Ltd. | 4,200 | 23,301 | |||
Sasebo Heavy Industries Co. Ltd. | 14,000 | 30,406 | |||
157,094 | |||||
SOFTWARE – 1.12% | |||||
Capcom Co. Ltd. | 4,200 | 71,603 | |||
Fuji Soft Inc. | 2,800 | 47,042 | |||
Nihon Unisys Ltd. | 5,600 | 33,525 | |||
NSD Co. Ltd. | 3,500 | 39,425 | |||
Obic Business Consultants Co. Ltd. | 700 | 30,721 | |||
Sumisho Computer Systems Corp. | 2,100 | 28,381 |
24 | 2010 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI JAPAN SMALL CAP INDEX FUND
February 28, 2010
Security | Shares | Value | |||
Tecmo Koei Holdings Co. Ltd.a | 4,200 | $ | 27,601 | ||
Trans Cosmos Inc.a | 2,800 | 22,308 | |||
Works Applications Co. Ltd. | 35 | 23,001 | |||
323,607 | |||||
STORAGE & WAREHOUSING – 0.47% | |||||
Mitsui-Soko Co. Ltd. | 14,000 | 52,462 | |||
Shibusawa Warehouse Co. Ltd. (The) | 7,000 | 22,686 | |||
Sumitomo Warehouse Co. Ltd. (The) | 14,000 | 61,757 | |||
136,905 | |||||
TELECOMMUNICATIONS – 1.36% | |||||
Daimei Telecom Engineering Corp. | 2,800 | 20,039 | |||
Denki Kogyo Co. Ltd. | 7,000 | 35,447 | |||
Hikari Tsushin Inc. | 2,100 | 36,723 | |||
Hitachi Kokusai Electric Inc. | 7,000 | 64,907 | |||
IT Holdings Corp. | 7,048 | 78,756 | |||
Japan Radio Co. Ltd. | 7,000 | 13,312 | |||
MTI Ltd. | 7 | 13,966 | |||
Oki Electric Industry Co. Ltd.a | 70,000 | 53,564 | |||
Okinawa Cellular Telephone Co. | 14 | 25,916 | |||
Telepark Corp. | 21 | 31,737 | |||
Uniden Corp.a | 7,000 | 17,881 | |||
392,248 | |||||
TEXTILES – 0.96% | |||||
Daiwabo Holdings Co. Ltd. | 14,000 | 28,200 | |||
Kurabo Industries Ltd. | 21,000 | 37,574 | |||
Nitto Boseki Co. Ltd. | 28,000 | 54,510 | |||
Seiren Co. Ltd. | 5,600 | 35,353 | |||
Toyobo Co. Ltd. | 56,000 | 85,073 | |||
Unitika Ltd.a | 49,000 | 38,046 | |||
278,756 | |||||
TOYS, GAMES & HOBBIES – 0.31% | |||||
Sanrio Co. Ltd. | 4,200 | 35,589 | |||
Tomy Co. Ltd. | 7,000 | 54,352 | |||
89,941 | |||||
TRANSPORTATION – 2.87% | |||||
Daiichi Chuo Kisen Kaishaa,b | 7,000 | 18,590 | |||
Fukuyama Transporting Co. Ltd. | 14,000 | 68,373 | |||
Hitachi Transport System Ltd. | 4,200 | 57,944 | |||
Iino Kaiun Kaisha Ltd. | 8,400 | 46,128 | |||
Inui Steamship Co. Ltd. | 2,100 | 16,235 | |||
Kintetsu World Express Inc. | 1,400 | 36,250 |
Security | Shares | Value | |||
Nippon Konpo Unyu Soko Co. Ltd. | 7,000 | $ | 78,771 | ||
Nishi-Nippon Railroad Co. Ltd. | 28,000 | 112,485 | |||
Sankyu Inc. | 21,000 | 100,906 | |||
Seino Holdings Co. Ltd. | 14,000 | 98,779 | |||
Shinwa Kaiun Kaisha Ltd.a | 7,000 | 21,898 | |||
Sotetsu Holdings Inc. | 35,000 | 153,604 | |||
Yusen Air & Sea Service Co. Ltd. | 1,400 | 19,598 | |||
829,561 | |||||
TOTAL COMMON STOCKS | 28,855,213 | ||||
SHORT-TERM INVESTMENTS – 3.96% | |||||
MONEY MARKET FUNDS – 3.96% | |||||
BlackRock Cash Funds: | 982,139 | 982,139 | |||
BlackRock Cash Funds: | 157,840 | 157,840 | |||
BlackRock Cash Funds: | 6,584 | 6,584 | |||
1,146,563 | |||||
TOTAL SHORT-TERM INVESTMENTS | |||||
(Cost: $1,146,563) | 1,146,563 | ||||
TOTAL INVESTMENTS | |||||
(Cost: $32,602,054) | 30,001,776 | ||||
Other Assets, Less Liabilities – (3.62)% | (1,047,942) | ||||
NET ASSETS – 100.00% | $ | 28,953,834 | |||
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 MALAYSIA INDEX FUND
February 28, 2010
Security | Shares | Value | |||
COMMON STOCKS – 99.50% | |||||
AGRICULTURE – 11.87% | |||||
British American Tobacco | 923,000 | $ | 11,377,930 | ||
Genting Plantations Bhd | 1,491,000 | 2,710,113 | |||
IOI Corp. Bhd | 24,140,030 | 38,065,471 | |||
Kuala Lumpur Kepong Bhd | 3,124,000 | 15,356,265 | |||
67,509,779 | |||||
AIRLINES – 0.89% | |||||
AirAsia Bhda | 8,094,000 | 3,422,511 | |||
Malaysian Airline System Bhda | 2,698,000 | 1,647,876 | |||
5,070,387 | |||||
AUTO PARTS & EQUIPMENT – 1.19% | |||||
UMW Holdings Bhd | 3,692,000 | 6,797,486 | |||
6,797,486 | |||||
BANKS – 27.27% | |||||
Alliance Financial Group Bhd | 6,035,000 | 4,926,531 | |||
AMMB Holdings Bhd | 12,851,037 | 18,490,701 | |||
CIMB Group Holdings Bhd | 12,922,032 | 49,403,863 | |||
Hong Leong Bank Bhd | 3,124,000 | 7,705,653 | |||
Malayan Banking Bhd | 23,217,020 | 47,518,024 | |||
Public Bank Bhd Foreign | 6,958,000 | 22,720,000 | |||
RHB Capital Bhd | 2,840,000 | 4,403,230 | |||
155,168,002 | |||||
BUILDING MATERIALS – 0.72% | |||||
Lafarge Malayan Cement Bhd | 2,201,060 | 4,071,848 | |||
4,071,848 | |||||
COMMERCIAL SERVICES – 1.76% | |||||
PLUS Expressways Bhd | 9,869,000 | 9,997,959 | |||
9,997,959 | |||||
DIVERSIFIED FINANCIAL SERVICES – 1.53% | |||||
Bursa Malaysia Bhd | 2,272,000 | 4,856,896 | |||
Hong Leong Financial Group Bhd | 1,704,000 | 3,852,826 | |||
8,709,722 | |||||
ELECTRIC – 6.76% | |||||
Tenaga Nasional Bhd | 12,780,050 | 29,872,030 | |||
YTL Power International Bhd | 13,561,075 | 8,601,357 | |||
38,473,387 | |||||
ENGINEERING & CONSTRUCTION – 5.86% | |||||
Gamuda Bhd | 10,579,000 | 8,604,854 |
Security | Shares | Value | |||
IJM Corp. Bhd | 7,384,040 | $ | 9,605,432 | ||
MMC Corp. Bhd | 4,970,000 | 3,560,945 | |||
YTL Corp. Bhd | 5,467,021 | 11,590,630 | |||
33,361,861 | |||||
ENTERTAINMENT – 2.31% | |||||
Berjaya Sports Toto Bhd | 4,899,050 | 6,142,694 | |||
Tanjong PLC | 1,349,000 | 6,979,703 | |||
13,122,397 | |||||
FOOD – 2.91% | |||||
PPB Group Bhd | 3,479,066 | 16,549,954 | |||
16,549,954 | |||||
GAS – 1.63% | |||||
Petronas Gas Bhd | 3,266,000 | 9,254,706 | |||
9,254,706 | |||||
HOLDING COMPANIES – DIVERSIFIED – 8.58% | |||||
Sime Darby Bhd | 19,667,025 | 48,799,401 | |||
48,799,401 | |||||
IRON & STEEL – 0.97% | |||||
Parkson Holdings Bhd | 3,408,033 | 5,534,113 | |||
5,534,113 | |||||
LODGING – 7.71% | |||||
Genting Bhd | 14,555,000 | 26,968,742 | |||
Genting Malaysia Bhd | 21,158,000 | 16,899,063 | |||
43,867,805 | |||||
MEDIA – 0.56% | |||||
Astro All Asia Networks PLC | 3,195,000 | 3,180,458 | |||
3,180,458 | |||||
OIL & GAS – 0.74% | |||||
Petronas Dagangan Bhd | 1,633,000 | 4,190,991 | |||
4,190,991 | |||||
REAL ESTATE – 2.20% | |||||
IGB Corp. Bhda | 5,893,000 | 3,028,263 | |||
KLCC Property Holdings Bhd | 3,053,000 | 2,931,525 | |||
SP Setia Bhd | 5,325,000 | 6,536,045 | |||
12,495,833 | |||||
TELECOMMUNICATIONS – 10.52% | |||||
Axiata Group Bhda | 16,614,000 | 18,197,099 | |||
DiGi.Com Bhd | 2,272,000 | 15,024,355 | |||
Maxis Communications Bhd | 12,283,000 | 19,909,605 |
26 | 2010 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI MALAYSIA INDEX FUND
February 28, 2010
Security | Shares | Value | |||
Telekom Malaysia Bhd | 7,029,000 | $ | 6,728,686 | ||
59,859,745 | |||||
TRANSPORTATION – 3.52% | |||||
MISC Bhd Foreign | 8,793,920 | 20,012,591 | |||
20,012,591 | |||||
TOTAL COMMON STOCKS | 566,028,425 | ||||
RIGHTS – 0.01% | |||||
AIRLINES – 0.01% | |||||
Malaysian Airline System Bhda | 2,784,600 | 73,591 | |||
73,591 | |||||
TOTAL RIGHTS | 73,591 | ||||
SHORT-TERM INVESTMENTS – 0.01% | |||||
MONEY MARKET FUNDS – 0.01% | |||||
BlackRock Cash Funds: | 67,677 | 67,677 | |||
67,677 | |||||
TOTAL SHORT-TERM INVESTMENTS | 67,677 | ||||
TOTAL INVESTMENTS | 566,169,693 | ||||
Other Assets, Less Liabilities – 0.48% | 2,742,409 | ||||
NET ASSETS – 100.00% | $ | 568,912,102 | |||
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, 2010
Security | Shares | Value | |||
COMMON STOCKS – 99.37% | |||||
AUSTRALIA – 67.64% | |||||
AGL Energy Ltd. | 1,375,920 | $ | 17,705,799 | ||
Alumina Ltd. | 7,524,504 | 10,140,981 | |||
Amcor Ltd. | 3,759,288 | 19,963,003 | |||
AMP Ltd. | 6,298,656 | 33,504,252 | |||
Aristocrat Leisure Ltd. | 1,214,928 | 4,602,105 | |||
Arrow Energy Ltd.a,b | 1,818,648 | 5,406,950 | |||
Asciano Groupa | 8,668,608 | 13,972,929 | |||
ASX Ltd. | 536,952 | 17,531,445 | |||
Australia and New Zealand | 7,738,224 | 160,350,472 | |||
AXA Asia Pacific Holdings Ltd. | 3,162,432 | 18,266,128 | |||
Bendigo and Adelaide Bank Ltd. | 1,088,880 | 9,380,385 | |||
BGP Holdings PLCc | 27,004,595 | 3,685 | |||
BHP Billiton Ltd. | 10,370,568 | 381,689,274 | |||
Billabong International Ltd. | 625,267 | 5,694,454 | |||
BlueScope Steel Ltd. | 5,638,776 | 12,219,848 | |||
Boral Ltd. | 1,823,016 | 8,766,583 | |||
Brambles Ltd. | 4,319,016 | 26,841,691 | |||
Caltex Australia Ltd.a | 421,200 | 3,960,438 | |||
CFS Retail Property Trust | 5,375,448 | 9,146,056 | |||
Coca-Cola Amatil Ltd. | 1,747,200 | 17,555,010 | |||
Cochlear Ltd. | 175,032 | 9,945,226 | |||
Commonwealth Bank | 4,732,728 | 228,521,475 | |||
Computershare Ltd. | 1,366,248 | 14,253,485 | |||
Crown Ltd. | 1,498,848 | 10,737,747 | |||
CSL Ltd. | 1,744,704 | 53,730,332 | |||
CSR Ltd. | 4,397,328 | 6,379,248 | |||
Dexus Property Group | 14,550,432 | 10,749,677 | |||
Energy Resources of | 207,480 | 3,413,115 | |||
Fairfax Media Ltd.b | 6,447,168 | 9,526,174 | |||
Fortescue Metals Group Ltd.a,b | 3,814,824 | 15,885,213 | |||
Foster’s Group Ltd. | 5,945,472 | 28,697,277 | |||
Goodman Fielder Ltd. | 3,900,312 | 5,256,558 | |||
Goodman Group | 18,471,024 | 9,924,481 | |||
GPT Group | 28,506,816 | 14,678,516 | |||
Harvey Norman Holdings Ltd. | 1,619,592 | 5,554,820 | |||
Incitec Pivot Ltd. | 4,975,152 | 14,435,005 | |||
Insurance Australia Group Ltd. | 6,398,808 | 22,634,024 |
Security | Shares | Value | |||
Intoll Group | 7,102,992 | $ | 7,155,821 | ||
James Hardie Industries SEa | 1,326,000 | 8,834,501 | |||
Leighton Holdings Ltd. | 458,952 | 15,494,380 | |||
Lend Lease Group | 1,344,096 | 11,639,179 | |||
Macquarie Group Ltd. | 1,032,408 | 41,843,837 | |||
MAp Group | 2,281,032 | 6,373,112 | |||
Metcash Ltd. | 2,349,360 | 8,667,870 | |||
Mirvac Group | 8,322,600 | 11,402,919 | |||
National Australia Bank Ltd. | 6,484,296 | 147,722,119 | |||
Newcrest Mining Ltd. | 1,493,232 | 41,907,511 | |||
Nufarm Ltd.b | 538,512 | 4,692,171 | |||
OneSteel Ltd. | 4,099,368 | 12,664,895 | |||
Orica Ltd. | 1,112,592 | 24,918,117 | |||
Origin Energy Ltd. | 2,705,976 | 40,734,017 | |||
OZ Minerals Ltd.a | 9,688,536 | 9,023,127 | |||
Paladin Energy Ltd.a | 1,973,400 | 6,379,519 | |||
Qantas Airways Ltd. | 3,463,824 | 8,188,896 | |||
QBE Insurance Group Ltd. | 3,154,944 | 60,460,400 | |||
Rio Tinto Ltd. | 1,345,032 | 84,915,569 | |||
Santos Ltd. | 2,568,072 | 29,804,222 | |||
Sims Metal Management Ltd. | 498,576 | 8,675,005 | |||
Sonic Healthcare Ltd. | 1,126,632 | 13,670,581 | |||
SP AusNet | 4,281,264 | 3,623,009 | |||
Stockland Corp. Ltd. | 7,362,888 | 26,769,473 | |||
Suncorp-Metway Ltd. | 3,908,424 | 29,889,946 | |||
Tabcorp Holdings Ltd. | 1,873,560 | 11,358,523 | |||
Tatts Group Ltd. | 3,795,168 | 8,156,575 | |||
Telstra Corp. Ltd. | 13,452,504 | 35,778,750 | |||
Toll Holdings Ltd. | 2,040,480 | 12,425,299 | |||
Transurban Group | 3,588,000 | 16,836,403 | |||
Wesfarmers Ltd. | 3,108,144 | 86,645,466 | |||
Wesfarmers Ltd. | 472,368 | 13,202,003 | |||
Westfield Group | 6,418,464 | 69,087,769 | |||
Westpac Banking Corp. | 9,099,792 | 212,929,809 | |||
Woodside Petroleum Ltd. | 1,674,192 | 65,021,993 | |||
Woolworths Ltd. | 3,824,496 | 91,922,603 | |||
WorleyParsons Ltd. | 507,312 | 11,166,642 | |||
2,541,005,892 | |||||
HONG KONG – 19.04% | |||||
ASM Pacific Technology Ltd. | 624,000 | 5,887,665 | |||
Bank of East Asia Ltd.b | 4,555,320 | 16,634,999 |
28 | 2010 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI PACIFIC EX-JAPAN INDEX FUND
February 28, 2010
Security | Shares | Value | |||
BOC Hong Kong (Holdings) Ltd. | 11,388,000 | $ | 25,670,619 | ||
Cathay Pacific Airways Ltd.a | 3,744,000 | 6,954,276 | |||
Cheung Kong (Holdings) Ltd.b | 4,368,000 | 53,282,359 | |||
Cheung Kong Infrastructure | 1,560,000 | 5,867,570 | |||
Chinese Estates Holdings Ltd. | 2,184,000 | 3,505,270 | |||
CLP Holdings Ltd.b | 6,240,000 | 43,122,621 | |||
Esprit Holdings Ltd. | 3,525,611 | 25,136,387 | |||
Foxconn International | 6,552,000 | 6,717,966 | |||
Hang Lung Group Ltd.b | 2,496,000 | 12,554,992 | |||
Hang Lung Properties Ltd. | 6,240,736 | 23,834,791 | |||
Hang Seng Bank Ltd. | 2,371,200 | 34,666,890 | |||
Henderson Land | 3,120,056 | 21,079,423 | |||
Hong Kong Aircraft | 249,600 | 3,197,424 | |||
Hong Kong and China | 12,168,661 | 27,399,022 | |||
Hong Kong Exchanges and | 3,120,000 | 52,205,298 | |||
Hongkong Electric Holdings Ltd. | 4,212,000 | 23,573,767 | |||
Hopewell Holdings Ltd. | 1,716,000 | 5,028,628 | |||
Hutchison Whampoa Ltd. | 6,552,000 | 47,008,882 | |||
Hysan Development Co. Ltd.b | 1,872,000 | 4,979,397 | |||
Kerry Properties Ltd. | 2,184,000 | 10,394,843 | |||
Li & Fung Ltd. | 6,865,600 | 31,925,414 | |||
Lifestyle International | 1,872,000 | 3,091,325 | |||
Link REIT (The)b | 6,864,000 | 17,258,694 | |||
Mongolia Energy Corp. Ltd.a | 9,360,000 | 4,352,451 | |||
MTR Corp. Ltd. | 4,368,000 | 15,135,116 | |||
New World Development | 7,800,941 | 14,308,951 | |||
NWS Holdings Ltd.b | 2,496,000 | 4,237,511 | |||
Orient Overseas | 624,000 | 4,561,433 | |||
PCCW Ltd. | 11,544,000 | 3,197,022 | |||
Sands China Ltd.a | 6,364,800 | 9,018,375 | |||
Shangri-La Asia Ltd.b | 4,368,000 | 7,258,104 | |||
Sino Land Co. Ltd.b | 4,992,000 | 9,465,275 | |||
Sun Hung Kai Properties Ltd. | 4,368,000 | 60,652,991 |
Security | Shares | Value | |||
Swire Pacific Ltd. Class A | 2,340,000 | $ | 26,117,720 | ||
Television Broadcasts Ltd. | 936,000 | 4,274,083 | |||
Wharf (Holdings) Ltd. (The) | 4,368,000 | 22,505,748 | |||
Wheelock and Co. Ltd. | 2,808,000 | 7,866,965 | |||
Wing Hang Bank Ltd. | 624,000 | 5,228,568 | |||
Yue Yuen Industrial | 2,028,000 | 6,047,415 | |||
715,206,250 | |||||
NEW ZEALAND – 0.83% | |||||
Auckland International | 2,655,117 | 3,448,567 | |||
Contact Energy Ltd.a | 950,352 | 4,061,420 | |||
Fletcher Building Ltd. | 1,864,824 | 10,326,498 | |||
Sky City Entertainment | 1,713,909 | 3,829,832 | |||
Telecom Corp. of | 5,759,520 | 9,370,964 | |||
31,037,281 | |||||
SINGAPORE – 11.86% | |||||
Ascendas Real Estate | 4,368,813 | 5,998,299 | |||
CapitaLand Ltd. | 7,800,000 | 20,974,603 | |||
CapitaMall Trust | 6,864,781 | 8,643,852 | |||
CapitaMalls Asia Ltd.a | 4,368,000 | 7,084,755 | |||
City Developments Ltd.b | 1,560,000 | 11,408,408 | |||
ComfortDelGro Corp. Ltd. | 5,616,000 | 6,192,502 | |||
COSCO Corp. (Singapore) Ltd.b | 3,120,104 | 2,707,923 | |||
DBS Group Holdings Ltd. | 5,304,000 | 52,824,927 | |||
Fraser and Neave Ltd. | 2,808,150 | 8,510,151 | |||
Genting Singapore PLCa,b | 14,352,400 | 9,138,079 | |||
Golden Agri-Resources Ltd.a | 21,145,987 | 7,972,806 | |||
Jardine Cycle & Carriage Ltd. | 378,000 | 6,529,018 | |||
Keppel Corp. Ltd. | 4,056,000 | 24,266,173 | |||
Neptune Orient Lines Ltd.b | 2,808,750 | 3,556,644 | |||
Noble Group Ltd.b | 5,928,400 | 13,369,160 | |||
Olam International Ltd.b | 3,744,600 | 6,473,201 | |||
Oversea-Chinese Banking | 8,112,600 | 48,997,634 | |||
SembCorp Industries Ltd. | 2,808,240 | 7,531,525 | |||
SembCorp Marine Ltd. | 2,808,200 | 7,411,554 | |||
Singapore Airlines Ltd. | 1,560,800 | 16,521,807 |
SCHEDULESOF INVESTMENTS | 29 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI PACIFIC EX-JAPAN INDEX FUND
February 28, 2010
Security | Shares | Value | |||
Singapore Exchange Ltd. | 2,496,000 | $ | 13,690,090 | ||
Singapore Press Holdings Ltd.b | 4,851,517 | 12,804,388 | |||
Singapore Technologies | |||||
Engineering Ltd. | 4,368,000 | 9,726,001 | |||
Singapore | 24,648,328 | 53,480,402 | |||
StarHub Ltd. | 1,872,000 | 2,849,883 | |||
United Overseas Bank Ltd. | 3,744,000 | 49,646,553 | |||
UOL Group Ltd. | 1,560,000 | 4,416,874 | |||
Wilmar International Ltd. | 4,056,000 | 18,755,069 | |||
Yangzijiang Shipbuilding | 4,992,000 | 4,048,431 | |||
445,530,712 | |||||
TOTAL COMMON STOCKS | 3,732,780,135 | ||||
SHORT-TERM INVESTMENTS – 2.96% | |||||
MONEY MARKET FUNDS – 2.96% | |||||
BlackRock Cash Funds: | 95,515,543 | 95,515,543 | |||
BlackRock Cash Funds: | 15,350,370 | 15,350,370 | |||
BlackRock Cash Funds: | 309,232 | 309,232 | |||
111,175,145 | |||||
TOTAL SHORT-TERM INVESTMENTS | |||||
(Cost: $111,175,145) | 111,175,145 | ||||
Value | |||||
TOTAL INVESTMENTS | $ | 3,843,955,280 | |||
Other Assets, Less Liabilities – (2.33)% | (87,572,855) | ||||
NET ASSETS – 100.00% | $ | 3,756,382,425 | |||
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 in accordance with management’s fair valuation policy. 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.
30 | 2010 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited)
iSHARES® MSCI SINGAPORE INDEX FUND
February 28, 2010
Security | Shares | Value | |||
COMMON STOCKS – 99.77% | |||||
AGRICULTURE – 5.91% | |||||
Golden Agri-Resources Ltd.a | 66,000,628 | $ | 24,884,636 | ||
Wilmar International Ltd. | 13,200,000 | 61,037,206 | |||
85,921,842 | |||||
AIRLINES – 3.85% | |||||
Singapore Airlines Ltd.b | 5,280,467 | 55,896,243 | |||
55,896,243 | |||||
BANKS – 34.77% | |||||
DBS Group Holdings Ltd. | 17,160,500 | 170,909,156 | |||
Oversea-Chinese Banking | 26,400,000 | 159,447,962 | |||
United Overseas Bank Ltd. | 13,200,000 | 175,035,925 | |||
505,393,043 | |||||
BEVERAGES – 2.20% | |||||
Fraser and Neave Ltd. | 10,560,000 | 32,002,276 | |||
32,002,276 | |||||
DISTRIBUTION & WHOLESALE – 1.57% | |||||
Jardine Cycle & Carriage Ltd. | 1,320,000 | 22,799,744 | |||
22,799,744 | |||||
DIVERSIFIED FINANCIAL SERVICES – 3.49% | |||||
Singapore Exchange Ltd. | 9,240,000 | 50,679,661 | |||
50,679,661 | |||||
ENGINEERING & CONSTRUCTION – 4.17% | |||||
SembCorp Industries Ltd. | 10,560,000 | 28,321,263 | |||
Singapore Technologies | 14,520,000 | 32,330,938 | |||
60,652,201 | |||||
FOOD – 1.41% | |||||
Olam International Ltd.b | 11,880,000 | 20,536,672 | |||
20,536,672 | |||||
HOLDING COMPANIES – DIVERSIFIED – 7.76% | |||||
Keppel Corp. Ltd. | 11,880,000 | 71,075,479 | |||
Noble Group Ltd.b | 18,480,000 | 41,674,326 | |||
112,749,805 | |||||
MEDIA – 2.88% | |||||
Singapore Press Holdings Ltd.b | 15,840,000 | 41,805,791 | |||
41,805,791 | |||||
REAL ESTATE – 10.51% | |||||
CapitaLand Ltd. | 22,440,000 | 60,342,321 |
Security | Shares | Value | |||
CapitaMalls Asia Ltd.a | 5,280,000 | $ | 8,563,990 | ||
City Developments Ltd.b | 5,280,000 | 38,613,075 | |||
Genting Singapore PLCa,b | 47,520,400 | 30,255,928 | |||
UOL Group Ltd. | 5,280,000 | 14,949,420 | |||
152,724,734 | |||||
REAL ESTATE INVESTMENT TRUSTS – 3.31% | |||||
Ascendas Real Estate | 14,520,335 | 19,936,150 | |||
CapitaMall Trust | 22,440,800 | 28,256,538 | |||
48,192,688 | |||||
SHIPBUILDING – 2.39% | |||||
SembCorp Marine Ltd.b | 7,920,000 | 20,902,895 | |||
Yangzijiang Shipbuilding | 17,160,000 | 13,916,483 | |||
34,819,378 | |||||
TELECOMMUNICATIONS – 12.71% | |||||
Singapore | 80,520,568 | 174,708,496 | |||
StarHub Ltd. | 6,600,000 | 10,047,663 | |||
184,756,159 | |||||
TRANSPORTATION – 2.84% | |||||
ComfortDelGro Corp. Ltd. | 18,480,000 | 20,377,036 | |||
COSCO Corp. (Singapore) Ltd.b | 10,560,000 | 9,164,972 | |||
Neptune Orient Lines Ltd.b | 9,240,499 | 11,700,995 | |||
41,243,003 | |||||
TOTAL COMMON STOCKS | 1,450,173,240 |
SCHEDULESOF INVESTMENTS | 31 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI SINGAPORE INDEX FUND
February 28, 2010
Security | Shares | Value | ||||
SHORT-TERM INVESTMENTS – 9.70% |
| |||||
MONEY MARKET FUNDS – 9.70% |
| |||||
BlackRock Cash Funds: | 120,687,600 | $ | 120,687,600 | |||
BlackRock Cash Funds: | 19,395,789 | 19,395,789 | ||||
BlackRock Cash Funds: | 846,659 | 846,659 | ||||
140,930,048 | ||||||
TOTAL SHORT-TERM INVESTMENTS |
| |||||
(Cost: $140,930,048) | 140,930,048 | |||||
TOTAL INVESTMENTS | 1,591,103,288 | |||||
Other Assets, Less Liabilities – (9.47)% | (137,615,618 | ) | ||||
NET ASSETS – 100.00% | $ | 1,453,487,670 | ||||
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.
32 | 2010 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited)
iSHARES® MSCI SOUTH KOREA INDEX FUND
February 28, 2010
Security | Shares | Value | |||
COMMON STOCKS – 96.08% | |||||
AGRICULTURE – 1.58% | |||||
KT&G Corp. | 837,856 | $ | 46,374,994 | ||
46,374,994 | |||||
AIRLINES – 0.46% | |||||
Korean Air Lines Co. Ltd.a | 270,692 | 13,559,104 | |||
13,559,104 | |||||
AUTO MANUFACTURERS – 4.91% | |||||
Hyundai Motor Co. Ltd.b | 1,152,366 | 114,253,031 | |||
Kia Motors Corp.a | 1,585,470 | 29,730,125 | |||
143,983,156 | |||||
AUTO PARTS & EQUIPMENT – 2.47% | |||||
Hankook Tire Co. Ltd.b | 567,160 | 11,344,178 | |||
Hyundai Mobis Co. Ltd.a | 476,936 | 61,061,295 | |||
72,405,473 | |||||
BANKS – 1.99% | |||||
Busan Banka | 1,198,772 | 12,040,429 | |||
Daegu Bank | 889,410 | 11,348,623 | |||
Industrial Bank of Koreaa | 1,224,550 | 13,935,736 | |||
Korea Exchange Banka | 1,920,610 | 21,111,973 | |||
58,436,761 | |||||
BEVERAGES – 0.16% | |||||
Hite Brewery Co. Ltd.a,b | 38,670 | 4,734,149 | |||
4,734,149 | |||||
BIOTECHNOLOGY – 0.21% | |||||
Celltrion Inc.a,b | 406,035 | 6,266,080 | |||
6,266,080 | |||||
CHEMICALS – 4.10% | |||||
Hanwha Chemical Corp.a | 580,050 | 7,626,315 | |||
Honam Petrochemical Corp.a,b | 103,120 | 10,624,054 | |||
KCC Corp. | 38,670 | 11,752,026 | |||
Korea Zinc Co. Ltd.a,b | 64,450 | 10,168,420 | |||
LG Chem Ltd. | 348,035 | 64,512,048 | |||
OCI Co. Ltd.a,b | 103,120 | 15,691,594 | |||
120,374,457 | |||||
COMMERCIAL SERVICES – 0.17% | |||||
S1 Corp.b | 128,908 | 5,012,286 | |||
5,012,286 |
Security | Shares | Value | |||
COSMETICS & PERSONAL CARE – 0.59% | |||||
AmorePacific Corp.a | 25,780 | $ | 17,425,226 | ||
17,425,226 | |||||
DISTRIBUTION & WHOLESALE – 3.07% | |||||
Daewoo International Corp.a,b | 371,563 | 11,628,362 | |||
Hanwha Corp.a | 360,920 | 13,333,410 | |||
Hyosung Corp.a,b | 170,148 | 12,835,546 | |||
Samsung C&T Corp.b | 928,080 | 47,288,152 | |||
SK Networks Co. Ltd. | 554,270 | 4,993,639 | |||
90,079,109 | |||||
DIVERSIFIED FINANCIAL SERVICES – 12.18% | |||||
Daewoo Securities Co. Ltd.b | 928,080 | 15,482,669 | |||
Hana Financial Group Inc.a | 1,430,791 | 41,323,820 | |||
Hyundai Securities Co. Ltd. | 889,417 | 10,006,804 | |||
KB Financial Group Inc.a | 2,418,707 | 101,657,010 | |||
Korea Investment | 283,585 | 7,408,074 | |||
Mirae Asset Securities Co. Ltd. | 167,579 | 8,524,150 | |||
Samsung Card Co. Ltd. | 270,695 | 11,832,258 | |||
Samsung Securities Co. Ltd. | 373,810 | 19,948,995 | |||
Shinhan Financial | 3,016,267 | 107,788,833 | |||
Tong Yang Securities Inc. | 528,490 | 4,829,722 | |||
Woori Finance Holdings | 1,804,600 | 20,303,500 | |||
Woori Investment & | 644,500 | 8,251,423 | |||
357,357,258 | |||||
ELECTRIC – 2.10% | |||||
Korea Electric Power Corp.a | 1,920,610 | 61,431,702 | |||
61,431,702 | |||||
ELECTRICAL COMPONENTS & | |||||
LG Electronics Inc.b | 708,956 | 65,400,717 | |||
LS Corp.a | 128,900 | 10,424,019 | |||
LS Industrial Systems Co. Ltd.a | 121,166 | 8,513,690 | |||
84,338,426 | |||||
ELECTRONICS – 4.06% | |||||
LG Display Co. Ltd.b | 1,740,152 | 51,909,009 | |||
Samsung Electro-Mechanics | 445,994 | 38,451,074 | |||
Samsung SDI Co. Ltd. | 257,800 | 28,560,479 | |||
118,920,562 |
SCHEDULESOF INVESTMENTS | 33 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI SOUTH KOREA INDEX FUND
February 28, 2010
Security | Shares | Value | |||
ENGINEERING & CONSTRUCTION – 3.61% | |||||
Daelim Industrial Co. Ltd.a | 206,240 | $ | 12,677,741 | ||
Daewoo Engineering & | 837,854 | 8,198,675 | |||
Doosan Heavy Industries & | 235,887 | 17,754,061 | |||
GS Engineering & | 266,823 | 20,059,458 | |||
Hanjin Heavy Industries & | 232,024 | 4,360,827 | |||
Hyundai Engineering & | 373,818 | 19,304,852 | |||
Samsung Engineering Co. Ltd.b | 222,997 | 23,551,283 | |||
105,906,897 | |||||
ENVIRONMENTAL CONTROL – 0.38% | |||||
Woongjin Coway Co. Ltd.a,b | 373,810 | 11,199,153 | |||
11,199,153 | |||||
FOOD – 0.50% | |||||
CJ CheilJedang Corp.a | 58,005 | 10,476,806 | |||
Lotte Confectionery Co. Ltd.a | 4,000 | 4,221,054 | |||
14,697,860 | |||||
GAS – 0.27% | |||||
Korea Gas Corp.a | 180,460 | 7,841,352 | |||
7,841,352 | |||||
HOLDING COMPANIES – DIVERSIFIED – 1.69% | |||||
GS Holdings Corp.a | 373,810 | 12,311,011 | |||
LG Corp.a,b | 708,950 | 37,284,205 | |||
49,595,216 | |||||
HOME BUILDERS – 0.42% | |||||
Hyundai Development Co.a | 425,377 | 12,248,980 | |||
12,248,980 | |||||
HOUSEHOLD PRODUCTS & WARES – 0.53% | |||||
LG Household & Health Care Ltd.b | 64,450 | 15,419,325 | |||
15,419,325 | |||||
INSURANCE – 1.81% | |||||
Dongbu Insurance Co. Ltd. | 296,470 | 8,051,388 | |||
Samsung Fire & Marine | 283,585 | 45,108,572 | |||
53,159,960 |
Security | Shares | Value | |||
INTERNET – 2.20% | |||||
NCsoft Corp.a,b | 105,698 | $ | 12,119,867 | ||
NHN Corp.a,b | 305,493 | 47,671,552 | |||
SK Broadband Co. Ltd.a | 1,095,653 | 4,723,049 | |||
64,514,468 | |||||
IRON & STEEL – 8.88% | |||||
Dongkuk Steel Mill Co. Ltd.b | 270,691 | 5,320,937 | |||
Hyundai Steel Co.a | 409,902 | 31,381,410 | |||
POSCO | 489,820 | 223,816,364 | |||
260,518,711 | |||||
LODGING – 0.35% | |||||
Kangwon Land Inc.a | 721,842 | 10,268,465 | |||
10,268,465 | |||||
MACHINERY – 0.31% | |||||
Doosan Infracore Co. Ltd.a,b | 567,160 | 9,119,350 | |||
9,119,350 | |||||
MANUFACTURING – 0.87% | |||||
Cheil Industries Inc. | 357,053 | 18,162,020 | |||
Doosan Corp.b | 77,340 | 7,201,242 | |||
25,363,262 | |||||
METAL PROCESSORS & FABRICATORS – 0.13% | |||||
Taewoong Co. Ltd.a,b | 55,427 | 3,646,073 | |||
3,646,073 | |||||
OIL & GAS – 2.41% | |||||
SK Energy Co. Ltd.b | 451,152 | 41,618,471 | |||
SK Holdings Co. Ltd. | 180,464 | 13,442,615 | |||
S-Oil Corp. | 335,140 | 15,718,265 | |||
70,779,351 | |||||
PHARMACEUTICALS – 0.32% | |||||
Yuhan Corp.a | 67,661 | 9,508,357 | |||
9,508,357 | |||||
RETAIL – 2.55% | |||||
Hyundai Department | 116,010 | 9,951,716 | |||
Lotte Shopping Co. Ltd.a | 64,455 | 17,726,653 | |||
Shinsegae Co. Ltd. | 103,120 | 47,119,234 | |||
74,797,603 |
34 | 2010 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI SOUTH KOREA INDEX FUND
February 28, 2010
Security | Shares | Value | |||
SEMICONDUCTORS – 20.82% | |||||
Hynix Semiconductor Inc.a,b | 3,518,970 | $ | 63,710,984 | ||
Samsung Electronics Co. Ltd. | 824,960 | 529,157,893 | |||
Samsung Techwin Co. Ltd.b | 277,135 | 17,824,184 | |||
610,693,061 | |||||
SHIPBUILDING – 3.44% | |||||
Daewoo Shipbuilding & Marine | 721,840 | 12,539,940 | |||
Hyundai Heavy | 283,580 | 50,486,482 | |||
Hyundai Mipo | 77,340 | 8,668,161 | |||
Samsung Heavy | 1,211,660 | 25,749,995 | |||
STX Offshore & | 322,250 | 3,320,017 | |||
100,764,595 | |||||
TELECOMMUNICATIONS – 3.17% | |||||
KT Corp.a | 721,842 | 27,755,973 | |||
KT Corp. SP ADRa | 464,040 | 8,900,288 | |||
LG Telecom Ltd.a | 1,889,195 | 12,606,577 | |||
SKTelecom Co. Ltd. | 175,560 | 26,109,234 | |||
SKTelecom Co. Ltd. SP ADRb | 1,052,527 | 17,556,150 | |||
92,928,222 | |||||
TRANSPORTATION – 0.49% | |||||
GLOVIS Co. Ltd.a,b | 77,340 | 6,601,138 | |||
STX Pan Ocean Co. Ltd.a,b | 773,430 | 7,868,328 | |||
14,469,466 | |||||
TOTAL COMMON STOCKS | 2,818,138,470 | ||||
PREFERRED STOCKS – 2.92% | |||||
AUTO MANUFACTURERS – 0.54% | |||||
Hyundai Motor Co. Ltd.b | 167,570 | 5,728,210 | |||
Hyundai Motor Co. Ltd. Series 2 | 283,580 | 10,170,642 | |||
15,898,852 | |||||
ELECTRICAL COMPONENTS & | |||||
LG Electronics Inc. | 128,906 | 4,689,916 | |||
4,689,916 |
Security | Shares | Value | ||||
SEMICONDUCTORS – 2.22% |
| |||||
Samsung Electronics Co. Ltd. | 154,680 | $ | 65,011,207 | |||
65,011,207 | ||||||
TOTAL PREFERRED STOCKS |
| |||||
(Cost: $63,478,777) | 85,599,975 | |||||
SHORT-TERM INVESTMENTS – 8.82% |
| |||||
MONEY MARKET FUNDS – 8.82% |
| |||||
BlackRock Cash Funds: | 219,944,500 | 219,944,500 | ||||
BlackRock Cash Funds: | 35,347,435 | 35,347,435 | ||||
BlackRock Cash Funds: | 3,258,381 | 3,258,381 | ||||
258,550,316 | ||||||
TOTAL SHORT-TERM INVESTMENTS |
| |||||
(Cost: $258,550,316) | 258,550,316 | |||||
TOTAL INVESTMENTS |
| |||||
(Cost: $2,155,403,579) | 3,162,288,761 | |||||
Other Assets, Less Liabilities – (7.82)% | (229,220,262 | ) | ||||
NET ASSETS – 100.00% | $ | 2,933,068,499 | ||||
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 | 35 |
Table of Contents
Schedule of Investments (Unaudited)
iSHARES® MSCI TAIWAN INDEX FUND
February 28, 2010
Security | Shares | Value | |||
COMMON STOCKS – 99.96% | |||||
AIRLINES – 0.32% | |||||
China Airlines Ltd.a | 17,693,752 | $ | 5,737,471 | ||
EVA Airways Corp.a | 12,249,193 | 4,640,352 | |||
10,377,823 | |||||
APPAREL – 0.72% | |||||
Pou Chen Corp. | 21,776,023 | 16,057,462 | |||
Ruentex Industries Ltd.a | 4,083,000 | 6,963,601 | |||
23,021,063 | |||||
AUTO MANUFACTURERS – 0.24% | |||||
Yulon Motor Co. Ltd. | 8,166,362 | 7,791,431 | |||
7,791,431 | |||||
AUTO PARTS & EQUIPMENT – 0.49% | |||||
Cheng Shin Rubber Industry | 8,166,892 | 15,787,585 | |||
15,787,585 | |||||
BANKS – 6.19% | |||||
Chang Hwa Commercial | 46,274,446 | 20,415,727 | |||
Chinatrust Financial | 81,660,899 | 44,302,740 | |||
E.Sun Financial | 30,855,060 | 11,448,288 | |||
First Financial | 44,913,816 | 24,156,624 | |||
Hua Nan Financial | 32,664,428 | 20,369,119 | |||
Mega Financial | 73,494,136 | 40,674,126 | |||
Taishin Financial | 35,895,845 | 12,087,462 | |||
Taiwan Business Bank Ltd.a | 20,415,000 | 5,213,153 | |||
Taiwan Cooperative | 34,025,650 | 19,414,433 | |||
198,081,672 | |||||
BUILDING MATERIALS – 1.56% | |||||
Asia Cement Corp. | 16,332,236 | 14,971,322 | |||
Taiwan Cement Corp. | 28,581,558 | 26,378,178 | |||
Taiwan Glass Industrial Corp. | 9,527,791 | 8,525,921 | |||
49,875,421 |
Security | Shares | Value | |||
CHEMICALS – 8.53% | |||||
Eternal Chemical Co. Ltd. | 6,872,916 | $ | 6,664,516 | ||
Formosa Chemicals & | 27,220,204 | 61,531,368 | |||
Formosa Plastics Corp. | 38,108,768 | 82,223,922 | |||
Nan Ya Plastics Corp. | 48,996,860 | 97,008,359 | |||
Taiwan Fertilizer Co. Ltd. | 6,805,000 | 20,581,027 | |||
TSRC Corp. | 4,083,000 | 4,824,872 | |||
272,834,064 | |||||
COMPUTERS – 12.31% | |||||
Acer Inc. | 24,742,781 | 69,431,765 | |||
Advantech Co. Ltd. | 2,735,883 | 5,536,170 | |||
Chicony Electronics Co. Ltd. | 4,083,015 | 9,942,582 | |||
Clevo Co.a | 4,288,300 | 8,049,128 | |||
CMC Magnetics Corp.a | 24,498,400 | 6,347,547 | |||
Compal Electronics Inc. | 35,566,399 | 51,011,127 | |||
Foxconn Technology Co. Ltd. | 5,444,300 | 19,266,601 | |||
HTC Corp. | 6,805,077 | 68,745,653 | |||
Innolux Display Corp. | 20,415,189 | 29,025,883 | |||
Inotera Memories Inc.a | 16,908,024 | 11,624,349 | |||
Inventec Co. Ltd. | 14,971,717 | 8,192,490 | |||
Lite-On Technology Corp. | 20,415,772 | 26,289,543 | |||
MiTAC International Corp. | 9,527,585 | 4,099,483 | |||
Qisda Corp.a | 13,610,211 | 6,535,108 | |||
Quanta Computer Inc. | 20,415,240 | 41,692,984 | |||
Wistron Corp. | 16,332,755 | 28,008,466 | |||
393,798,879 | |||||
DIVERSIFIED FINANCIAL SERVICES – 4.07% | |||||
Capital Securities Corp.a | 9,527,000 | 4,604,209 | |||
Fubon Financial | 43,552,000 | 48,206,283 | |||
KGI Securities Co. Ltd. | 27,220,000 | 11,754,525 | |||
Polaris Securities Co. Ltd.a | 19,054,991 | 9,327,722 | |||
SinoPac Financial | 53,079,193 | 17,128,994 | |||
Yuanta Financial | 69,411,076 | 39,388,311 | |||
130,410,044 |
36 | 2010 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI TAIWAN INDEX FUND
February 28, 2010
Security | Shares | Value | |||
ELECTRICAL COMPONENTS & | |||||
Delta Electronics Inc. | 16,332,180 | $ | 47,612,716 | ||
Pacific Electric Wire & | 197 | – | |||
Simplo Technology Co. Ltd. | 1,498,300 | 7,871,652 | |||
Tatung Co. Ltd.a | 43,552,120 | 9,098,112 | |||
Walsin Lihwa Corp.a | 25,859,069 | 8,465,827 | |||
Young Fast | 700,000 | 6,318,497 | |||
79,366,804 | |||||
ELECTRONICS – 18.80% | |||||
ASUSTeK Computer Inc. | 36,747,803 | 64,850,749 | |||
AU Optronics Corp. | 70,772,830 | 72,819,500 | |||
Cheng Uei Precision | 4,083,871 | 7,448,950 | |||
Chi Mei Optoelectronics Corp.a | 43,552,629 | 29,874,747 | |||
Chunghwa Picture Tubes Ltd.a | 91,187,105 | 8,870,645 | |||
Coretronic Corp. | 5,444,000 | 7,443,118 | |||
HannStar Display Corp.a | 40,830,675 | 8,160,406 | |||
Hon Hai Precision | 74,855,827 | 296,412,504 | |||
Kinsus Interconnect | 2,722,043 | 6,238,060 | |||
Micro-Star | 8,166,855 | 4,889,036 | |||
Nan Ya Printed | 1,389,453 | 5,458,604 | |||
Phison Electronics Corp. | 1,361,968 | 8,747,850 | |||
Pixart Imaging Inc. | 1,374,682 | 7,479,367 | |||
Prime View | 4,095,000 | 8,056,575 | |||
Synnex Technology | 10,888,952 | 22,950,913 | |||
Tripod Technology Corp. | 4,124,488 | 13,760,082 | |||
Unimicron Technology Corp. | 12,249,794 | 13,692,575 | |||
Wintek Corp.a | 8,166,000 | 5,805,123 | |||
WPG Holdings Co. Ltd. | 5,444,000 | 8,775,580 | |||
Ya Hsin Industrial Co. Ltd.b | 6,845,461 | 21 | |||
601,734,405 | |||||
ENERGY – ALTERNATE SOURCES – 0.33% | |||||
Motech Industries Inc. | 2,722,403 | 10,610,348 | |||
10,610,348 |
Security | Shares | Value | |||
FOOD – 1.09% | |||||
Uni-President Enterprises Co. | 31,303,567 | $ | 34,746,496 | ||
34,746,496 | |||||
HOME FURNISHINGS – 0.19% | |||||
Teco Electric and | 14,971,092 | 5,974,900 | |||
5,974,900 | |||||
INSURANCE – 3.39% | |||||
Cathay Financial | 55,801,200 | 89,950,020 | |||
Shin Kong Financial | 51,718,343 | 18,383,011 | |||
108,333,031 | |||||
INTERNET – 0.11% | |||||
Chinese Gamer | 385,000 | 3,661,236 | |||
3,661,236 | |||||
INVESTMENT COMPANIES – 0.79% | |||||
China Development | 92,548,496 | 25,191,313 | |||
25,191,313 | |||||
IRON & STEEL – 3.41% | |||||
China Steel Corp. | 93,909,902 | 94,283,229 | |||
Feng Hsin Iron & Steel Co. Ltd. | 4,083,050 | 6,709,073 | |||
Tung Ho Steel Enterprise Corp. | 7,293,882 | 8,221,181 | |||
109,213,483 | |||||
LEISURE TIME – 0.24% | |||||
Giant Manufacturing Co. Ltd. | 2,722,800 | 7,547,180 | |||
7,547,180 | |||||
MANUFACTURING – 0.55% | |||||
Largan Precision Co. Ltd. | 1,361,794 | 17,557,154 | |||
17,557,154 | |||||
METAL FABRICATE & HARDWARE – 0.35% | |||||
Catcher Technology Co. Ltd. | 5,444,743 | 11,119,516 | |||
11,119,516 | |||||
OIL & GAS – 0.97% | |||||
Formosa Petrochemical Corp. | 12,249,950 | 31,013,982 | |||
31,013,982 |
SCHEDULESOF INVESTMENTS | 37 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI TAIWAN INDEX FUND
February 28, 2010
Security | Shares | Value | |||
REAL ESTATE – 0.17% | |||||
Farglory Land | 2,722,000 | $ | 5,516,564 | ||
5,516,564 | |||||
RETAIL – 0.59% | |||||
Far Eastern Department | 8,414,735 | 6,021,301 | |||
President Chain Store Corp. | 5,444,215 | 12,798,934 | |||
18,820,235 | |||||
SEMICONDUCTORS – 25.73% | |||||
Advanced Semiconductor | 42,191,372 | 33,545,249 | |||
Epistar Corp. | 5,444,047 | 14,614,777 | |||
Everlight Electronics Co. Ltd. | 2,962,784 | 8,581,889 | |||
Formosa Sumco | 1,429,000 | 3,680,268 | |||
Macronix International | 31,303,527 | 16,787,611 | |||
MediaTek Inc. | 8,815,319 | 138,802,279 | |||
Nanya Technology Corp.a | 8,447,587 | 6,268,690 | |||
Novatek Microelectronics | 4,083,544 | 11,497,202 | |||
Powerchip | 77,495,901 | 9,036,859 | |||
Powertech Technology Inc. | 5,444,760 | 18,504,290 | |||
Realtek Semiconductor Corp. | 4,125,150 | 10,804,041 | |||
Richtek Technology Corp. | 1,361,635 | 12,715,245 | |||
Siliconware Precision | 27,220,214 | 31,614,404 | |||
Taiwan Semiconductor | 235,453,882 | 431,668,506 | |||
Transcend Information Inc. | 2,858,905 | 9,671,563 | |||
United | 117,046,501 | 56,383,769 | |||
Vanguard International | 8,166,416 | 3,526,537 | |||
Winbond Electronics Corp.a | 24,498,000 | 5,530,143 | |||
823,233,322 | |||||
TELECOMMUNICATIONS – 4.44% | |||||
Chunghwa Telecom Co. Ltd. | 46,055,560 | 85,871,774 | |||
Compal Communications Inc. | 2,817,810 | 2,785,083 |
Security | Shares | Value | |||
Far EasTone | 14,971,259 | $ | 17,831,541 | ||
Taiwan Mobile Co. Ltd. | 19,054,677 | 35,706,169 | |||
142,194,567 | |||||
TEXTILES – 1.11% | |||||
Far Eastern New Century Corp. | 27,220,198 | 29,450,179 | |||
Formosa Taffeta Co. Ltd. | 8,166,515 | 6,072,847 | |||
35,523,026 | |||||
TRANSPORTATION – 0.79% | |||||
Evergreen International | 2,722,000 | 2,096,294 | |||
Evergreen Marine Corp. Ltd.a | 9,527,467 | 5,703,558 | |||
U-Ming Marine Transport Corp. | 4,083,800 | 7,754,413 | |||
Wan Hai Lines Ltd.a | 10,888,433 | 5,516,783 | |||
Yang Ming Marine | 12,249,305 | 4,315,758 | |||
25,386,806 | |||||
TOTAL COMMON STOCKS | |||||
(Cost: $2,563,051,919) | 3,198,722,350 | ||||
SHORT-TERM INVESTMENTS – 0.11% | |||||
MONEY MARKET FUNDS – 0.11% | |||||
BlackRock Cash Funds: | 3,548,160 | 3,548,160 | |||
3,548,160 | |||||
TOTAL SHORT-TERM INVESTMENTS | |||||
(Cost: $3,548,160) | 3,548,160 | ||||
TOTAL INVESTMENTS | |||||
(Cost: $2,566,600,079) | 3,202,270,510 | ||||
Other Assets, Less Liabilities – (0.07)% | (2,167,514) | ||||
NET ASSETS – 100.00% | $ | 3,200,102,996 | |||
a | Non-income earning security. |
b | Security valued using Level 3 inputs in accordance with management’s fair valuation policy. 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.
38 | 2010 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited)
iSHARES® MSCI THAILAND INVESTABLE MARKET INDEX FUND
February 28, 2010
Security | Shares | Value | |||
COMMON STOCKS – 99.64% | |||||
AGRICULTURE – 1.99% | |||||
Charoen Pokphand Foods | 11,127,600 | $ | 4,139,407 | ||
4,139,407 | |||||
AIRLINES – 0.69% | |||||
Thai Airways International | 2,088,900 | 1,440,403 | |||
1,440,403 | |||||
AUTO PARTS & EQUIPMENT – 0.10% | |||||
Thai Stanley Electric PCL NVDR | 59,400 | 207,491 | |||
207,491 | |||||
BANKS – 30.92% | |||||
Bangkok Bank PCL Foreign | 118,800 | 425,761 | |||
Bangkok Bank PCL NVDR | 5,494,500 | 19,359,118 | |||
Bank of Ayudhya PCL NVDR | 7,553,700 | 4,683,225 | |||
Kasikornbank PCL NVDR | 6,613,200 | 17,300,523 | |||
Kiatnakin Bank PCL NVDR | 1,029,600 | 778,466 | |||
Krung Thai Bank PCL NVDR | 11,800,800 | 3,568,970 | |||
Siam Commercial Bank | 6,078,600 | 15,442,383 | |||
TMB Bank PCL NVDRa | 69,151,500 | 2,739,708 | |||
64,298,154 | |||||
BUILDING MATERIALS – 4.50% | |||||
Dynasty Ceramic PCL NVDR | 564,300 | 571,724 | |||
Siam Cement PCL NVDR | 1,237,500 | 8,346,061 | |||
TPI Polene PCL NVDRa | 1,861,200 | 436,241 | |||
9,354,026 | |||||
CHEMICALS – 4.55% | |||||
IRPC PCL NVDR | 38,590,200 | 5,135,245 | |||
PTT Chemical PCL NVDR | 1,504,800 | 3,629,451 | |||
Siamgas and Petrochemicals | 247,500 | 58,759 | |||
Thai Plastic & Chemical | 1,138,500 | 630,109 | |||
9,453,564 | |||||
COAL – 4.91% | |||||
Banpu PCL NVDR | 613,800 | 10,209,890 | |||
10,209,890 |
Security | Shares | Value | |||
COMMERCIAL SERVICES – 0.53% | |||||
Bangkok Expressway PCL NVDR | 1,762,200 | $ | 1,108,537 | ||
1,108,537 | |||||
COMPUTERS – 0.33% | |||||
Cal-Comp Electronics (Thailand) | 7,702,200 | 698,823 | |||
698,823 | |||||
DIVERSIFIED FINANCIAL SERVICES – 1.76% | |||||
ACL Bank PCL NVDRa | 960,300 | 328,184 | |||
Kim Eng Securities (Thailand) | 1,306,800 | 422,887 | |||
Phatra Securities PCL NVDR | 504,900 | 261,116 | |||
Thanachart Capital PCL NVDR | 2,851,200 | 1,733,226 | |||
TISCO Financial Group PCL NVDR | 1,277,100 | 915,387 | |||
3,660,800 | |||||
ELECTRIC – 1.52% | |||||
Electricity Generating PCL NVDR | 356,400 | 875,775 | |||
Glow Energy PCL NVDR | 2,277,000 | 2,289,740 | |||
3,165,515 | |||||
ELECTRONICS – 1.20% | |||||
Delta Electronics (Thailand) | 1,841,400 | 1,041,409 | |||
Hana Microelectronics PCL NVDR | 2,227,500 | 1,448,397 | |||
2,489,806 | |||||
ENGINEERING & CONSTRUCTION – 0.51% | |||||
CH. Karnchang PCL NVDR | 1,465,200 | 237,073 | |||
Italian-Thai Development | 5,772,800 | 464,408 | |||
Sino-Thai Engineering & | 2,197,800 | 365,580 | |||
1,067,061 | |||||
ENTERTAINMENT – 0.24% | |||||
Major Cineplex Group PCL NVDR | 1,851,300 | 503,907 | |||
503,907 | |||||
FOOD – 1.52% | |||||
Khon Kaen Sugar Industry | 2,197,800 | 903,979 | |||
Thai Union Frozen Products | 1,613,700 | 1,683,734 | |||
Thai Vegetable Oil PCL NVDR | 1,074,880 | 568,892 | |||
3,156,605 |
SCHEDULESOF INVESTMENTS | 39 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI THAILAND INVESTABLE MARKET INDEX FUND
February 28, 2010
Security | Shares | Value | |||
HEALTH CARE – SERVICES – 1.11% | |||||
Bangkok Chain Hospital | 2,247,300 | $ | 367,017 | ||
Bangkok Dusit Medical Services | 1,128,600 | 839,666 | |||
Bumrungrad Hospital PCL NVDR | 1,168,200 | 1,095,243 | |||
2,301,926 | |||||
HOME BUILDERS – 1.12% | |||||
Asian Property Development | 2,712,600 | 406,910 | |||
Land and Houses PCL NVDR | 10,701,900 | 1,925,792 | |||
2,332,702 | |||||
IRON & STEEL – 1.16% | |||||
G J Steel PCL NVDRa | 81,318,600 | 418,091 | |||
G Steel PCL NVDRa | 22,215,600 | 228,438 | |||
Sahaviriya Steel Industries | 23,354,100 | 819,318 | |||
Tata Steel (Thailand) PCL NVDRa | 9,117,900 | 482,574 | |||
Thainox Stainless PCL NVDRa | 9,315,900 | 462,062 | |||
2,410,483 | |||||
LODGING – 0.75% | |||||
Central Plaza Hotel PCL NVDR | 950,400 | 114,974 | |||
Minor International PCL NVDR | 4,484,700 | 1,437,708 | |||
1,552,682 | |||||
MEDIA – 1.40% | |||||
BEC World PCL NVDR | 3,801,600 | 2,644,391 | |||
MCOT PCL NVDR | 366,300 | 261,445 | |||
2,905,836 | |||||
OIL & GAS – 22.86% | |||||
Esso (Thailand) PCL NVDR | 4,573,800 | 892,213 | |||
PTT Exploration & Production | 4,623,300 | 18,876,319 | |||
PTT PCL NVDR | 3,346,200 | 23,478,554 | |||
Thai Oil PCL NVDR | 3,286,800 | 4,299,232 | |||
47,546,318 | |||||
REAL ESTATE – 2.44% | |||||
Amata Corp. PCL NVDR | 2,079,000 | 471,571 | |||
Bangkok Land PCL NVDRa | 22,086,900 | 354,032 | |||
Hemaraj Land and | 18,641,700 | 445,394 | |||
LPN Development PCL NVDR | 2,207,700 | 474,056 |
Security | Shares | Value | |||
Preuksa Real Estate PCL NVDR | 2,207,700 | $ | 1,121,711 | ||
Quality Houses PCL NVDR | 13,810,500 | 927,244 | |||
Rojana Industrial Park PCL NVDR | 1,306,800 | 371,508 | |||
Sansiri PCL NVDR | 1,207,800 | 178,987 | |||
Supalai PCL NVDR | 1,920,600 | 371,748 | |||
Ticon Industrial Connection | 1,237,500 | 355,550 | |||
5,071,801 | |||||
RETAIL – 5.72% | |||||
CP All PCL NVDR | 8,306,100 | 5,928,443 | |||
Home Product Center PCL NVDR | 4,742,100 | 674,062 | |||
PTT Aromatics & Refining | 4,375,800 | 3,540,077 | |||
Robinson Department Store | 1,485,000 | 467,080 | |||
Siam Makro PCL NVDR | 475,200 | 1,279,081 | |||
11,888,743 | |||||
TELECOMMUNICATIONS – 6.35% | |||||
Advanced Info Service PCL NVDR | 3,484,800 | 9,274,532 | |||
Samart Corp. PCL NVDR | 1,811,700 | 312,315 | |||
Thaicom PCL NVDRa | 1,702,800 | 311,566 | |||
Total Access Communication | 1,970,100 | 2,070,497 | |||
True Corp. PCL NVDRa | 13,978,800 | 1,234,480 | |||
13,203,390 | |||||
TRANSPORTATION – 1.12% | |||||
Bangkok Metro PCL NVDRa | 10,563,300 | 233,214 | |||
Precious Shipping PCL NVDR | 1,623,600 | 898,590 | |||
Regional Container Lines | 702,900 | 206,204 | |||
Thoresen Thai Agencies | 1,356,330 | 988,585 | |||
2,326,593 | |||||
WATER – 0.34% | |||||
Thai Tap Water Supply PCL NVDR | 5,504,400 | 709,171 | |||
709,171 | |||||
TOTAL COMMON STOCKS | 207,203,634 |
40 | 2010 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI THAILAND INVESTABLE MARKET INDEX FUND
February 28, 2010
Security | Shares | Value | |||
RIGHTS – 0.03% | |||||
IRON & STEEL – 0.03% | |||||
G J Steel PCL NVDRa,b | 12,827,908 | $ | 54,314 | ||
54,314 | |||||
TOTAL RIGHTS | 54,314 | ||||
WARRANTS – 0.00% | |||||
REAL ESTATE – 0.00% | |||||
Bangkok Land PCL NVDR | 1,083,411 | 3,277 | |||
Ticon Industrial Connection | 79,167 | – | |||
Ticon Industrial Connection | 52,083 | 2,363 | |||
5,640 | |||||
TOTAL WARRANTS | 5,640 | ||||
SHORT-TERM INVESTMENTS – 0.13% | |||||
MONEY MARKET FUNDS – 0.13% | |||||
BlackRock Cash Funds: Treasury, | 268,335 | 268,335 | |||
268,335 | |||||
TOTAL SHORT-TERM INVESTMENTS | 268,335 | ||||
TOTAL INVESTMENTS | 207,531,923 | ||||
Other Assets, Less Liabilities – 0.20% | 407,579 | ||||
NET ASSETS – 100.00% | $ | 207,939,502 | |||
NVDR – Non-Voting Depositary Receipts
a | Non-income earning security. |
b | Security valued using Level 3 inputs in accordance with management’s fair valuation policy. 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 | 41 |
Table of Contents
Statements of Assets and Liabilities (Unaudited)
iSHARES®, INC.
February 28, 2010
iShares MSCI | ||||||||||||||||
Australia Index Fund | Hong Kong Index Fund | Japan Small Cap Index Fund | Malaysia Index Fund | |||||||||||||
ASSETS | ||||||||||||||||
Investments, at cost: | ||||||||||||||||
Unaffiliated issuers | $ | 2,124,743,398 | $ | 1,957,807,034 | �� | $ | 31,455,491 | $ | 326,072,183 | |||||||
Affiliated issuers (Note 2) | 17,102,521 | 54,864,633 | 1,146,563 | 67,677 | ||||||||||||
Total cost of investments | $ | 2,141,845,919 | $ | 2,012,671,667 | $ | 32,602,054 | $ | 326,139,860 | ||||||||
Investments in securities, at fair value | ||||||||||||||||
(including securities on loana) (Note 1): | ||||||||||||||||
Unaffiliated issuers | $ | 2,232,750,974 | $ | 1,682,211,195 | $ | 28,855,213 | $ | 566,102,016 | ||||||||
Affiliated issuers (Note 2) | 17,102,521 | 54,864,633 | 1,146,563 | 67,677 | ||||||||||||
Total fair value of investments | 2,249,853,495 | 1,737,075,828 | 30,001,776 | 566,169,693 | ||||||||||||
Foreign currencies, at valueb | 3,030,878 | 2,089,854 | 4,338 | 2,152,849 | ||||||||||||
Receivables: | ||||||||||||||||
Investment securities sold | 5,822,349 | – | 33,078 | 785,557 | ||||||||||||
Due from custodian (Note 4) | 1,467,810 | – | – | – | ||||||||||||
Dividends and interest | 15,264,258 | 1,098,107 | 66,330 | 786,015 | ||||||||||||
Total Assets | 2,275,438,790 | 1,740,263,789 | 30,105,522 | 569,894,114 | ||||||||||||
LIABILITIES | ||||||||||||||||
Payables: | ||||||||||||||||
Investment securities purchased | 7,134,889 | – | – | 748,939 | ||||||||||||
Collateral for securities on loan (Note 5) | 16,864,603 | 54,855,424 | 1,139,979 | – | ||||||||||||
Capital shares redeemed | 34,835 | 75,842 | – | – | ||||||||||||
Investment advisory fees (Note 2) | 904,787 | 691,615 | 11,709 | 233,073 | ||||||||||||
Total Liabilities | 24,939,114 | 55,622,881 | 1,151,688 | 982,012 | ||||||||||||
NET ASSETS | $ | 2,250,499,676 | $ | 1,684,640,908 | $ | 28,953,834 | $ | 568,912,102 | ||||||||
Net assets consist of: | ||||||||||||||||
Paid-in capital | $ | 2,244,926,795 | $ | 2,103,656,227 | $ | 31,627,998 | $ | 432,266,283 | ||||||||
Distributions in excess of net investment income | (22,355,526 | ) | (4,663,401 | ) | (165,088 | ) | (368,621 | ) | ||||||||
Undistributed net realized gain (accumulated net realized loss) | (80,189,744 | ) | (138,757,904 | ) | 89,897 | (103,019,384 | ) | |||||||||
Net unrealized appreciation (depreciation) on investments and translation of assets and liabilities in foreign currencies | 108,118,151 | (275,594,014 | ) | (2,598,973 | ) | 240,033,824 | ||||||||||
NET ASSETS | $ | 2,250,499,676 | $ | 1,684,640,908 | $ | 28,953,834 | $ | 568,912,102 | ||||||||
Shares outstandingc | 101,400,000 | 109,350,000 | 700,000 | 53,250,000 | ||||||||||||
Net asset value per share | $ | 22.19 | $ | 15.41 | $ | 41.36 | $ | 10.68 | ||||||||
a | Securities on loan with values of $15,964,421, $51,640,643, $1,082,582 and $–, respectively. See Note 5. |
b | Cost of foreign currencies: $3,005,136, $2,088,467, $4,338 and $2,147,804, respectively. |
c | $0.001 par value, number of shares authorized: 627.8 million, 250 million, 500 million and 300 million, respectively. |
See notes to financial statements.
42 | 2010 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Statements of Assets and Liabilities (Unaudited) (Continued)
iSHARES®, INC.
February 28, 2010
iShares MSCI | ||||||||||||||||
Pacific ex-Japan Index Fund | Singapore Index Fund | South Korea Index Fund | Taiwan Index Fund | |||||||||||||
ASSETS | ||||||||||||||||
Investments, at cost: | ||||||||||||||||
Unaffiliated issuers | $ | 3,218,828,765 | $ | 1,443,829,653 | $ | 1,896,853,263 | $ | 2,563,051,919 | ||||||||
Affiliated issuers (Note 2) | 111,175,145 | 140,930,048 | 258,550,316 | 3,548,160 | ||||||||||||
Total cost of investments | $ | 3,330,003,910 | $ | 1,584,759,701 | $ | 2,155,403,579 | $ | 2,566,600,079 | ||||||||
Investments in securities, at fair value | ||||||||||||||||
(including securities on loana) (Note 1): | ||||||||||||||||
Unaffiliated issuers | $ | 3,732,780,135 | $ | 1,450,173,240 | $ | 2,903,738,445 | $ | 3,198,722,350 | ||||||||
Affiliated issuers (Note 2) | 111,175,145 | 140,930,048 | 258,550,316 | 3,548,160 | ||||||||||||
Total fair value of investments | 3,843,955,280 | 1,591,103,288 | 3,162,288,761 | 3,202,270,510 | ||||||||||||
Foreign currencies, at valueb | 6,381,793 | 1,999,308 | – | – | ||||||||||||
Receivables: | ||||||||||||||||
Investment securities sold | 6,876,877 | 11,101,141 | 2,628,273 | 13,892,308 | ||||||||||||
Dividends and interest | 18,161,666 | 1,026,396 | 27,272,683 | 294 | ||||||||||||
Total Assets | 3,875,375,616 | 1,605,230,133 | 3,192,189,717 | 3,216,163,112 | ||||||||||||
LIABILITIES | ||||||||||||||||
Payables: | ||||||||||||||||
Investment securities purchased | 6,713,525 | 11,065,895 | 2,446,327 | – | ||||||||||||
Collateral for securities on loan (Note 5) | 110,865,913 | 140,083,389 | 255,291,935 | – | ||||||||||||
Capital shares redeemed | – | – | – | 14,090,869 | ||||||||||||
Foreign taxes (Note 1) | – | – | – | 442,717 | ||||||||||||
Investment advisory fees (Note 2) | 1,413,753 | 593,179 | 1,382,956 | 1,526,530 | ||||||||||||
Total Liabilities | 118,993,191 | 151,742,463 | 259,121,218 | 16,060,116 | ||||||||||||
NET ASSETS | $ | 3,756,382,425 | $ | 1,453,487,670 | $ | 2,933,068,499 | $ | 3,200,102,996 | ||||||||
Net assets consist of: | ||||||||||||||||
Paid-in capital | $ | 3,511,598,962 | $ | 1,678,482,972 | $ | 2,962,676,876 | $ | 3,657,607,120 | ||||||||
Undistributed (distributions in excess of) net investment income (accumulated net investment loss) | (20,901,391 | ) | (10,023,152 | ) | 11,346,012 | (10,496,061 | ) | |||||||||
Accumulated net realized loss | (248,392,689 | ) | (221,307,685 | ) | (1,048,095,071 | ) | (1,082,678,494 | ) | ||||||||
Net unrealized appreciation on investments and translation of assets and liabilities in foreign currencies | 514,077,543 | 6,335,535 | 1,007,140,682 | 635,670,431 | ||||||||||||
NET ASSETS | $ | 3,756,382,425 | $ | 1,453,487,670 | $ | 2,933,068,499 | $ | 3,200,102,996 | ||||||||
Shares outstandingc | 93,600,000 | 132,000,000 | 64,450,000 | 272,200,000 | ||||||||||||
Net asset value per share | $ | 40.13 | $ | 11.01 | $ | 45.51 | $ | 11.76 | ||||||||
a | Securities on loan with values of $104,661,901, $130,970,948, $242,537,505 and $–, respectively. See Note 5. |
b | Cost of foreign currencies: $6,351,500, $2,006,162, $– and $–, respectively. |
c | $0.001 par value, number of shares authorized: 1 billion, 300 million, 200 million and 900 million, respectively. |
See notes to financial statements.
FINANCIAL STATEMENTS | 43 |
Table of Contents
Statements of Assets and Liabilities (Unaudited) (Continued)
iSHARES®, INC.
February 28, 2010
iShares MSCI | ||||
Thailand Investable Market Index Fund | ||||
ASSETS | ||||
Investments, at cost: | ||||
Unaffiliated issuers | $ | 215,278,580 | ||
Affiliated issuers (Note 2) | 268,335 | |||
Total cost of investments | $ | 215,546,915 | ||
Investments in securities, at fair value (Note 1): | ||||
Unaffiliated issuers | $ | 207,263,588 | ||
Affiliated issuers (Note 2) | 268,335 | |||
Total fair value of investments | 207,531,923 | |||
Foreign currency, at valuea | 65,682 | |||
Receivables: | ||||
Investment securities sold | 2,341,674 | |||
Dividends and interest | 302,710 | |||
Total Assets | 210,241,989 | |||
LIABILITIES | ||||
Payables: | ||||
Investment securities purchased | 2,186,690 | |||
Capital shares redeemed | 12,058 | |||
Investment advisory fees (Note 2) | 103,739 | |||
Total Liabilities | 2,302,487 | |||
NET ASSETS | $ | 207,939,502 | ||
Net assets consist of: | ||||
Paid-in capital | $ | 206,230,388 | ||
Undistributed net investment income | 52,437 | |||
Undistributed net realized gain | 9,670,655 | |||
Net unrealized depreciation on investments and translation of assets and liabilities in foreign currencies | (8,013,978 | ) | ||
NET ASSETS | $ | 207,939,502 | ||
Shares outstandingb | 4,950,000 | |||
Net asset value per share | $ | 42.01 | ||
a | Cost of foreign currency: $65,657. |
b | $0.001 par value, number of shares authorized: 200 million. |
See notes to financial statements.
44 | 2010 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Statements of Operations (Unaudited)
iSHARES®, INC.
Six months ended February 28, 2010
iShares MSCI | ||||||||||||||||
Australia Index Fund | Hong Kong Index Fund | Japan Small Cap Index Fund | Malaysia Index Fund | |||||||||||||
NET INVESTMENT INCOME | ||||||||||||||||
Dividends from unaffiliated issuersa | $ | 35,254,778 | $ | 21,083,176 | $ | 241,931 | $ | 6,454,684 | ||||||||
Interest from affiliated issuers (Note 2) | 671 | 296 | 4 | 42 | ||||||||||||
Securities lending income from affiliated issuers (Note 2) | 38,361 | 74,733 | 10,875 | – | ||||||||||||
Total investment income | 35,293,810 | 21,158,205 | 252,810 | 6,454,726 | ||||||||||||
EXPENSES | ||||||||||||||||
Investment advisory fees (Note 2) | 5,899,478 | 5,052,064 | 78,392 | 1,464,398 | ||||||||||||
Total expenses | 5,899,478 | 5,052,064 | 78,392 | 1,464,398 | ||||||||||||
Net investment income | 29,394,332 | 16,106,141 | 174,418 | 4,990,328 | ||||||||||||
NET REALIZED AND UNREALIZED GAIN (LOSS) | ||||||||||||||||
Net realized gain (loss) from: | ||||||||||||||||
Investments in unaffiliated issuers | (33,871,486 | ) | (19,980,043 | ) | (216,504 | ) | 1,311,743 | |||||||||
In-kind redemptions | 82,031,342 | 78,835,018 | 954,731 | – | ||||||||||||
Foreign currency transactions | 611,127 | (10,514 | ) | 5,011 | (43,759 | ) | ||||||||||
Net realized gain | 48,770,983 | 58,844,461 | 743,238 | 1,267,984 | ||||||||||||
Net change in unrealized appreciation (depreciation) on: | ||||||||||||||||
Investments | 99,297,730 | 84,477,063 | (2,792,030 | ) | 44,642,000 | |||||||||||
Translation of assets and liabilities in foreign currencies | (59,538 | ) | 1,619 | (762 | ) | (1,202 | ) | |||||||||
Net change in unrealized appreciation (depreciation) | 99,238,192 | 84,478,682 | (2,792,792 | ) | 44,640,798 | |||||||||||
Net realized and unrealized gain (loss) | 148,009,175 | 143,323,143 | (2,049,554 | ) | 45,908,782 | |||||||||||
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS | $ | 177,403,507 | $ | 159,429,284 | $ | (1,875,136 | ) | $ | 50,899,110 | |||||||
a | Net of foreign withholding tax of $583,820, $–, $18,135 and $33,969, respectively. |
See notes to financial statements.
FINANCIAL STATEMENTS | 45 |
Table of Contents
Statements of Operations (Unaudited) (Continued)
iSHARES®, INC.
Six months ended February 28, 2010
iShares MSCI | ||||||||||||||||
Pacific ex-Japan Index Fund | Singapore Index Fund | South Korea Index Fund | Taiwan Index Fund | |||||||||||||
NET INVESTMENT INCOME | ||||||||||||||||
Dividends from unaffiliated issuersa | $ | 54,778,413 | $ | 11,710,063 | $ | 26,945,657 | $ | 2,215,258 | ||||||||
Interest from unaffiliated issuers | – | – | 4,127 | 114 | ||||||||||||
Interest from affiliated issuers (Note 2) | 609 | 419 | 1,071 | 2,240 | ||||||||||||
Securities lending income from affiliated issuers (Note 2) | 407,971 | 1,046,980 | 1,377,497 | – | ||||||||||||
Total investment income | 55,186,993 | 12,757,462 | 28,328,352 | 2,217,612 | ||||||||||||
EXPENSES | ||||||||||||||||
Investment advisory fees (Note 2) | 9,672,202 | 3,807,853 | 8,721,987 | 10,221,767 | ||||||||||||
Foreign taxes (Note 1) | – | – | 56 | 310,506 | ||||||||||||
Total expenses | 9,672,202 | 3,807,853 | 8,722,043 | 10,532,273 | ||||||||||||
Net investment income (loss) | 45,514,791 | 8,949,609 | 19,606,309 | (8,314,661 | ) | |||||||||||
NET REALIZED AND UNREALIZED GAIN (LOSS) | ||||||||||||||||
Net realized gain (loss) from: | ||||||||||||||||
Investments in unaffiliated issuers | (35,626,929 | ) | (27,390,114 | ) | (21,162,035 | ) | (23,117,923 | ) | ||||||||
In-kind redemptions | 135,277,041 | 15,163,938 | – | – | ||||||||||||
Foreign currency transactions | 1,218,797 | 293,897 | (13,093 | ) | 26,604 | |||||||||||
Net realized gain (loss) | 100,868,909 | (11,932,279 | ) | (21,175,128 | ) | (23,091,319 | ) | |||||||||
Net change in unrealized appreciation (depreciation) on: | ||||||||||||||||
Investments | 218,292,312 | 128,899,703 | 198,348,625 | 314,529,103 | ||||||||||||
Translation of assets and liabilities in foreign currencies | (157,442 | ) | (41,807 | ) | 255,636 | 53,888 | ||||||||||
Net change in unrealized appreciation (depreciation) | 218,134,870 | 128,857,896 | 198,604,261 | 314,582,991 | ||||||||||||
Net realized and unrealized gain | 319,003,779 | 116,925,617 | 177,429,133 | 291,491,672 | ||||||||||||
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS | $ | 364,518,570 | $ | 125,875,226 | $ | 197,035,442 | $ | 283,177,011 | ||||||||
a | Net of foreign withholding tax of $794,215, $150,077, $5,162,388 and $467,935, respectively. |
See notes to financial statements.
46 | 2010 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Statements of Operations (Unaudited) (Continued)
iSHARES®, INC.
Six months ended February 28, 2010
iShares MSCI | ||||
Thailand Investable Market Index Fund | ||||
NET INVESTMENT INCOME | ||||
Dividends from unaffiliated issuersa | $ | 993,870 | ||
Interest from affiliated issuers (Note 2) | 95 | |||
Total investment income | 993,965 | |||
EXPENSES | ||||
Investment advisory fees (Note 2) | 619,303 | |||
Foreign taxes (Note 1) | 25,260 | |||
Total expenses | 644,563 | |||
Net investment income | 349,402 | |||
NET REALIZED AND UNREALIZED GAIN (LOSS) | ||||
Net realized gain (loss) from: | ||||
Investments in unaffiliated issuers | (1,790,602 | ) | ||
In-kind redemptions | 17,179,869 | |||
Foreign currency transactions | 6,485 | |||
Net realized gain | 15,395,752 | |||
Net change in unrealized appreciation (depreciation) on: | ||||
Investments | (7,774,371 | ) | ||
Translation of assets and liabilities in foreign currencies | 626 | |||
Net change in unrealized appreciation (depreciation) | (7,773,745 | ) | ||
Net realized and unrealized gain | 7,622,007 | |||
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS | $ | 7,971,409 | ||
a | Net of foreign withholding tax of $106,560. |
See notes to financial statements.
FINANCIAL STATEMENTS | 47 |
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, 2010 (Unaudited) | Year ended August 31, 2009 | Six months ended February 28, 2010 (Unaudited) | Year ended August 31, 2009 | |||||||||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||||||||||
OPERATIONS: | ||||||||||||||||
Net investment income | $ | 29,394,332 | $ | 38,798,339 | $ | 16,106,141 | $ | 60,124,298 | ||||||||
Net realized gain (loss) | 48,770,983 | (202,818,285 | ) | 58,844,461 | (134,562,987 | ) | ||||||||||
Net change in unrealized appreciation (depreciation) | 99,238,192 | 205,661,326 | 84,478,682 | (10,347,626 | ) | |||||||||||
Net increase (decrease) in net assets resulting from operations | 177,403,507 | 41,641,380 | 159,429,284 | (84,786,315 | ) | |||||||||||
DISTRIBUTIONS TO SHAREHOLDERS: | ||||||||||||||||
From net investment income | (64,490,252 | ) | (36,574,071 | ) | (25,045,284 | ) | (63,227,759 | ) | ||||||||
Total distributions to shareholders | (64,490,252 | ) | (36,574,071 | ) | (25,045,284 | ) | (63,227,759 | ) | ||||||||
CAPITAL SHARE TRANSACTIONS: | ||||||||||||||||
Proceeds from shares sold | 747,513,689 | 845,682,054 | 64,051,603 | 788,711,422 | ||||||||||||
Cost of shares redeemed | (203,603,665 | ) | (316,165,212 | ) | (465,571,560 | ) | (364,104,881 | ) | ||||||||
Net increase (decrease) in net assets from capital share transactions | 543,910,024 | 529,516,842 | (401,519,957 | ) | 424,606,541 | |||||||||||
INCREASE (DECREASE) IN NET ASSETS | 656,823,279 | 534,584,151 | (267,135,957 | ) | 276,592,467 | |||||||||||
NET ASSETS | ||||||||||||||||
Beginning of period | 1,593,676,397 | 1,059,092,246 | 1,951,776,865 | 1,675,184,398 | ||||||||||||
End of period | $ | 2,250,499,676 | $ | 1,593,676,397 | $ | 1,684,640,908 | $ | 1,951,776,865 | ||||||||
Undistributed (distributions in excess of) net investment income included in net assets at end of period | $ | (22,355,526 | ) | $ | 12,740,394 | $ | (4,663,401 | ) | $ | 4,275,742 | ||||||
SHARES ISSUED AND REDEEMED | ||||||||||||||||
Shares sold | 32,400,000 | 53,800,000 | 4,050,000 | 61,575,000 | ||||||||||||
Shares redeemed | (9,400,000 | ) | (19,600,000 | ) | (30,375,000 | ) | (31,425,000 | ) | ||||||||
Net increase (decrease) in shares outstanding | 23,000,000 | 34,200,000 | (26,325,000 | ) | 30,150,000 | |||||||||||
See notes to financial statements.
48 | 2010 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
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, 2010 | Year ended August 31, 2009 | Six months ended February 28, 2010 (Unaudited) | Year ended August 31, 2009 | |||||||||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||||||||||
OPERATIONS: | ||||||||||||||||
Net investment income | $ | 174,418 | $ | 433,446 | $ | 4,990,328 | $ | 12,513,392 | ||||||||
Net realized gain (loss) | 743,238 | (1,735,854 | ) | 1,267,984 | (15,953,708 | ) | ||||||||||
Net change in unrealized appreciation (depreciation) | (2,792,792 | ) | 2,190,301 | 44,640,798 | 36,885,986 | |||||||||||
Net increase (decrease) in net assets resulting from operations | (1,875,136 | ) | 887,893 | 50,899,110 | 33,445,670 | |||||||||||
DISTRIBUTIONS TO SHAREHOLDERS: | ||||||||||||||||
From net investment income | (412,764 | ) | (458,327 | ) | (7,264,953 | ) | (12,659,798 | ) | ||||||||
Total distributions to shareholders | (412,764 | ) | (458,327 | ) | (7,264,953 | ) | (12,659,798 | ) | ||||||||
CAPITAL SHARE TRANSACTIONS: | ||||||||||||||||
Proceeds from shares sold | – | 14,997,836 | 54,725,696 | 162,777,082 | ||||||||||||
Cost of shares redeemed | (4,314,452 | ) | (14,465,148 | ) | (42,447,400 | ) | (143,654,071 | ) | ||||||||
Net increase (decrease) in net assets from capital share transactions | (4,314,452 | ) | 532,688 | 12,278,296 | 19,123,011 | |||||||||||
INCREASE (DECREASE) IN NET ASSETS | (6,602,352 | ) | 962,254 | 55,912,453 | 39,908,883 | |||||||||||
NET ASSETS | ||||||||||||||||
Beginning of period | 35,556,186 | 34,593,932 | 512,999,649 | 473,090,766 | ||||||||||||
End of period | $ | 28,953,834 | $ | 35,556,186 | $ | 568,912,102 | $ | 512,999,649 | ||||||||
Undistributed (distributions in excess of) net investment income included in net assets at end of period | $ | (165,088 | ) | $ | 73,258 | $ | (368,621 | ) | $ | 1,906,004 | ||||||
SHARES ISSUED AND REDEEMED | ||||||||||||||||
Shares sold | – | 400,000 | 4,950,000 | 19,725,000 | ||||||||||||
Shares redeemed | (100,000 | ) | (400,000 | ) | (4,125,000 | ) | (17,700,000 | ) | ||||||||
Net increase (decrease) in shares outstanding | (100,000 | ) | – | 825,000 | 2,025,000 | |||||||||||
See notes to financial statements.
FINANCIAL STATEMENTS | 49 |
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, 2010 (Unaudited) | Year ended August 31, 2009 | Six months ended February 28, 2010 (Unaudited) | Year ended August 31, 2009 | |||||||||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||||||||||
OPERATIONS: | ||||||||||||||||
Net investment income | $ | 45,514,791 | $ | 110,427,766 | $ | 8,949,609 | $ | 36,445,821 | ||||||||
Net realized gain (loss) | 100,868,909 | (219,258,973 | ) | (11,932,279 | ) | (278,459,331 | ) | |||||||||
Net change in unrealized appreciation (depreciation) | 218,134,870 | (61,255,012 | ) | 128,857,896 | 61,395,602 | |||||||||||
Net increase (decrease) in net assets resulting from operations | 364,518,570 | (170,086,219 | ) | 125,875,226 | (180,617,908 | ) | ||||||||||
DISTRIBUTIONS TO SHAREHOLDERS: | ||||||||||||||||
From net investment income | (78,637,231 | ) | (89,338,841 | ) | (33,618,478 | ) | (40,706,510 | ) | ||||||||
Total distributions to shareholders | (78,637,231 | ) | (89,338,841 | ) | (33,618,478 | ) | (40,706,510 | ) | ||||||||
CAPITAL SHARE TRANSACTIONS: | ||||||||||||||||
Proceeds from shares sold | 357,007,662 | 606,264,055 | 124,159,403 | 368,595,441 | ||||||||||||
Cost of shares redeemed | (269,060,195 | ) | (228,256,529 | ) | (56,967,053 | ) | (330,200,942 | ) | ||||||||
Net increase in net assets from capital share transactions | 87,947,467 | 378,007,526 | 67,192,350 | 38,394,499 | ||||||||||||
INCREASE (DECREASE) IN NET ASSETS | 373,828,806 | 118,582,466 | 159,449,098 | (182,929,919 | ) | |||||||||||
NET ASSETS | ||||||||||||||||
Beginning of period | 3,382,553,619 | 3,263,971,153 | 1,294,038,572 | 1,476,968,491 | ||||||||||||
End of period | $ | 3,756,382,425 | $ | 3,382,553,619 | $ | 1,453,487,670 | $ | 1,294,038,572 | ||||||||
Undistributed (distributions in excess of) net investment income included in net assets at end of period | $ | (20,901,391 | ) | $ | 12,221,049 | $ | (10,023,152 | ) | $ | 14,645,717 | ||||||
SHARES ISSUED AND REDEEMED | ||||||||||||||||
Shares sold | 8,700,000 | 20,400,000 | 11,000,000 | 41,900,000 | ||||||||||||
Shares redeemed | (6,900,000 | ) | (7,500,000 | ) | (5,300,000 | ) | (44,700,000 | ) | ||||||||
Net increase (decrease) in shares outstanding | 1,800,000 | 12,900,000 | 5,700,000 | (2,800,000 | ) | |||||||||||
See notes to financial statements.
50 | 2010 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Statements of Changes in Net Assets (Continued)
iSHARES®, INC.
iShares MSCI South Korea Index Fund | iShares MSCI Taiwan Index Fund | |||||||||||||||
Six months ended February 28, 2010 (Unaudited) | Year ended August 31, 2009 | Six months ended February 28, 2010 (Unaudited) | Year ended August 31, 2009 | |||||||||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||||||||||
OPERATIONS: | ||||||||||||||||
Net investment income (loss) | $ | 19,606,309 | $ | 14,014,065 | $ | (8,314,661 | ) | $ | 62,277,852 | |||||||
Net realized loss | (21,175,128 | ) | (687,272,279 | ) | (23,091,319 | ) | (681,314,758 | ) | ||||||||
Net change in unrealized appreciation (depreciation) | 198,604,261 | 558,333,098 | 314,582,991 | 179,235,336 | ||||||||||||
Net increase (decrease) in net assets resulting from operations | 197,035,442 | (114,925,116 | ) | 283,177,011 | (439,801,570 | ) | ||||||||||
DISTRIBUTIONS TO SHAREHOLDERS: | ||||||||||||||||
From net investment income | (7,232,196 | ) | (19,134,761 | ) | (57,723,897 | ) | (105,890,576 | ) | ||||||||
Total distributions to shareholders | (7,232,196 | ) | (19,134,761 | ) | (57,723,897 | ) | (105,890,576 | ) | ||||||||
CAPITAL SHARE TRANSACTIONS: | ||||||||||||||||
Proceeds from shares sold | 481,968,082 | 1,407,195,537 | 100,564,877 | 1,421,796,026 | ||||||||||||
Cost of shares redeemed | (137,252,840 | ) | (860,348,791 | ) | (161,246,311 | ) | (758,780,360 | ) | ||||||||
Net increase (decrease) in net assets from capital share transactions | 344,715,242 | 546,846,746 | (60,681,434 | ) | 663,015,666 | |||||||||||
INCREASE IN NET ASSETS | 534,518,488 | 412,786,869 | 164,771,680 | 117,323,520 | ||||||||||||
NET ASSETS | ||||||||||||||||
Beginning of period | 2,398,550,011 | 1,985,763,142 | 3,035,331,316 | 2,918,007,796 | ||||||||||||
End of period | $ | 2,933,068,499 | $ | 2,398,550,011 | $ | 3,200,102,996 | $ | 3,035,331,316 | ||||||||
Undistributed (distributions in excess of) net investment income (accumulated net investment loss) included in net assets at end of period | $ | 11,346,012 | $ | (1,028,101 | ) | $ | (10,496,061 | ) | $ | 55,542,497 | ||||||
SHARES ISSUED AND REDEEMED | ||||||||||||||||
Shares sold | 10,350,000 | 43,400,000 | 8,200,000 | 140,800,000 | ||||||||||||
Shares redeemed | (3,000,000 | ) | (31,900,000 | ) | (13,400,000 | ) | (85,600,000 | ) | ||||||||
Net increase (decrease) in shares outstanding | 7,350,000 | 11,500,000 | (5,200,000 | ) | 55,200,000 | |||||||||||
See notes to financial statements.
FINANCIAL STATEMENTS | 51 |
Table of Contents
Statements of Changes in Net Assets (Continued)
iSHARES®, INC.
iShares MSCI Thailand Investable Market Index Fund | ||||||||
Six months ended February 28, 2010 (Unaudited) | Year ended August 31, 2009 | |||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||
OPERATIONS: | ||||||||
Net investment income | $ | 349,402 | $ | 1,585,596 | ||||
Net realized gain (loss) | 15,395,752 | (18,721,813 | ) | |||||
Net change in unrealized appreciation (depreciation) | (7,773,745 | ) | 20,815,615 | |||||
Net increase in net assets resulting from operations | 7,971,409 | 3,679,398 | ||||||
DISTRIBUTIONS TO SHAREHOLDERS: | ||||||||
From net investment income | (839,325 | ) | (1,466,522 | ) | ||||
Total distributions to shareholders | (839,325 | ) | (1,466,522 | ) | ||||
CAPITAL SHARE TRANSACTIONS: | ||||||||
Proceeds from shares sold | 205,840,136 | 57,023,862 | ||||||
Cost of shares redeemed | (99,053,594 | ) | (23,464,139 | ) | ||||
Net increase in net assets from capital share transactions | 106,786,542 | 33,559,723 | ||||||
INCREASE IN NET ASSETS | 113,918,626 | 35,772,599 | ||||||
NET ASSETS | ||||||||
Beginning of period | 94,020,876 | 58,248,277 | ||||||
End of period | $ | 207,939,502 | $ | 94,020,876 | ||||
Undistributed net investment income included in net assets at end of period | $ | 52,437 | $ | 542,360 | ||||
SHARES ISSUED AND REDEEMED | ||||||||
Shares sold | 4,900,000 | 1,900,000 | ||||||
Shares redeemed | (2,500,000 | ) | (850,000 | ) | ||||
Net increase in shares outstanding | 2,400,000 | 1,050,000 | ||||||
See notes to financial statements.
52 | 2010 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
iSHARES®, INC.
(For a share outstanding throughout each period)
iShares MSCI Australia Index Fund | ||||||||||||||||||||||||
Six months ended Feb. 28, 2010 | Year ended Aug. 31, 2009 | Year ended Aug. 31, 2008 | Year ended Aug. 31, 2007 | Year ended Aug. 31, 2006 | Year ended Aug. 31, 2005 | |||||||||||||||||||
Net asset value, beginning of period | $ | 20.33 | $ | 23.96 | $ | 27.62 | $ | 21.59 | $ | 18.28 | $ | 13.56 | ||||||||||||
Income from investment operations: | ||||||||||||||||||||||||
Net investment incomea | 0.30 | 0.78 | 0.96 | 0.89 | 0.75 | 0.70 | ||||||||||||||||||
Net realized and unrealized gain (loss) | 2.18 | (3.47 | ) | (3.34 | ) | 6.24 | 3.23 | 4.60 | ||||||||||||||||
Total from investment operations | 2.48 | (2.69 | ) | (2.38 | ) | 7.13 | 3.98 | 5.30 | ||||||||||||||||
Less distributions from: | ||||||||||||||||||||||||
Net investment income | (0.62 | ) | (0.94 | ) | (1.28 | ) | (1.10 | ) | (0.67 | ) | (0.58 | ) | ||||||||||||
Total distributions | (0.62 | ) | (0.94 | ) | (1.28 | ) | (1.10 | ) | (0.67 | ) | (0.58 | ) | ||||||||||||
Net asset value, end of period | $ | 22.19 | $ | 20.33 | $ | 23.96 | $ | 27.62 | $ | 21.59 | $ | 18.28 | ||||||||||||
Total return | 12.24 | %b | (8.91 | )% | (9.25 | )% | 33.97 | % | 22.35 | % | 39.58 | % | ||||||||||||
Ratios/Supplemental data: | ||||||||||||||||||||||||
Net assets, end of period (000s) | $ | 2,250,500 | $ | 1,593,676 | $ | 1,059,092 | $ | 1,464,112 | $ | 686,407 | $ | 369,355 | ||||||||||||
Ratio of expenses to average net assetsc | 0.54 | % | 0.55 | % | 0.52 | % | 0.51 | % | 0.54 | % | 0.57 | % | ||||||||||||
Ratio of net investment income to average net assetsc | 2.67 | % | 4.92 | % | 3.38 | % | 3.46 | % | 3.75 | % | 4.13 | % | ||||||||||||
Portfolio turnover rated | 3 | % | 14 | % | 10 | % | 10 | % | 7 | % | 17 | % |
a | Based on average shares outstanding throughout each period. |
b | Not annualized. |
c | Annualized for periods of less than one year. |
d | Portfolio turnover rates exclude portfolio securities received or delivered as a result of processing capital share transactions in Creation Units. |
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 Hong Kong Index Fund | ||||||||||||||||||||||||
Six months ended Feb. 28, 2010 | Year ended Aug. 31, 2009 | Year ended Aug. 31, 2008 | Year ended Aug. 31, 2007 | Year ended Aug. 31, 2006 | Year ended Aug. 31, 2005 | |||||||||||||||||||
Net asset value, beginning of period | $ | 14.39 | $ | 15.87 | $ | 18.30 | $ | 14.20 | $ | 13.01 | $ | 10.91 | ||||||||||||
Income from investment operations: | ||||||||||||||||||||||||
Net investment incomea | 0.13 | 0.52 | 0.45 | 0.47 | 0.38 | 0.33 | ||||||||||||||||||
Net realized and unrealized gain (loss) | 1.10 | (1.46 | ) | (2.25 | ) | 3.94 | 1.17 | 2.04 | ||||||||||||||||
Total from investment operations | 1.23 | (0.94 | ) | (1.80 | ) | 4.41 | 1.55 | 2.37 | ||||||||||||||||
Less distributions from: | ||||||||||||||||||||||||
Net investment income | (0.21 | ) | (0.54 | ) | (0.63 | ) | (0.31 | ) | (0.36 | ) | (0.27 | ) | ||||||||||||
Total distributions | (0.21 | ) | (0.54 | ) | (0.63 | ) | (0.31 | ) | (0.36 | ) | (0.27 | ) | ||||||||||||
Net asset value, end of period | $ | 15.41 | $ | 14.39 | $ | 15.87 | $ | 18.30 | $ | 14.20 | $ | 13.01 | ||||||||||||
Total return | 8.54 | %b | (4.77 | )% | (10.54 | )% | 31.44 | % | 12.20 | % | 21.96 | % | ||||||||||||
Ratios/Supplemental data: | ||||||||||||||||||||||||
Net assets, end of period (000s) | $ | 1,684,641 | $ | 1,951,777 | $ | 1,675,184 | $ | 1,445,309 | $ | 882,712 | $ | 637,985 | ||||||||||||
Ratio of expenses to average net assetsc | 0.54 | % | 0.55 | % | 0.52 | % | 0.52 | % | 0.54 | % | 0.57 | % | ||||||||||||
Ratio of net investment income to average net assetsc | 1.71 | % | 4.29 | % | 2.34 | % | 2.92 | % | 2.87 | % | 2.75 | % | ||||||||||||
Portfolio turnover rated | 2 | % | 9 | % | 17 | % | 9 | % | 10 | % | 6 | % |
a | Based on average shares outstanding throughout each period. |
b | Not annualized. |
c | Annualized for periods of less than one year. |
d | Portfolio turnover rates exclude portfolio securities received or delivered as a result of processing capital share transactions in Creation Units. |
See notes to financial statements.
54 | 2010 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
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, 2010 | Year ended Aug. 31, 2009 | Period from to Aug. 31, 2008 | ||||||||||
Net asset value, beginning of period | $ | 44.45 | $ | 43.24 | $ | 48.85 | ||||||
Income from investment operations: | ||||||||||||
Net investment incomeb | 0.25 | 0.60 | 0.29 | |||||||||
Net realized and unrealized gain (loss) | (2.75 | ) | 1.29 | (5.74 | ) | |||||||
Total from investment operations | (2.50 | ) | 1.89 | (5.45 | ) | |||||||
Less distributions from: | ||||||||||||
Net investment income | (0.59 | ) | (0.68 | ) | (0.16 | ) | ||||||
Total distributions | (0.59 | ) | (0.68 | ) | (0.16 | ) | ||||||
Net asset value, end of period | $ | 41.36 | $ | 44.45 | $ | 43.24 | ||||||
Total return | (5.59 | )%c | 4.62 | % | (11.19 | )%c | ||||||
Ratios/Supplemental data: | ||||||||||||
Net assets, end of period (000s) | $ | 28,954 | $ | 35,556 | $ | 34,594 | ||||||
Ratio of expenses to average net assetsd | 0.54 | % | 0.56 | % | 0.53 | % | ||||||
Ratio of net investment income to average net assetsd | 1.19 | % | 1.59 | % | 0.93 | % | ||||||
Portfolio turnover ratee | 5 | % | 7 | % | 7 | % |
a | Commencement of operations. |
b | Based on average shares outstanding throughout each period. |
c | Not annualized. |
d | Annualized for periods of less than one year. |
e | Portfolio turnover rates exclude portfolio securities received or delivered as a result of processing capital share transactions in Creation Units. |
See notes to financial statements.
FINANCIAL HIGHLIGHTS | 55 |
Table of Contents
Financial Highlights (Continued)
iSHARES®, INC.
(For a share outstanding throughout each period)
iShares MSCI Malaysia Index Fund | ||||||||||||||||||||||||
Six months ended Feb. 28, 2010 | Year ended Aug. 31, 2009 | Year ended Aug. 31, 2008 | Year ended Aug. 31, 2007 | Year ended Aug. 31, 2006 | Year ended Aug. 31, 2005 | |||||||||||||||||||
Net asset value, beginning of period | $ | 9.79 | $ | 9.39 | $ | 10.97 | $ | 7.75 | $ | 7.19 | $ | 6.54 | ||||||||||||
Income from investment operations: | ||||||||||||||||||||||||
Net investment incomea | 0.10 | 0.28 | 0.34 | 0.34 | 0.26 | 0.20 | ||||||||||||||||||
Net realized and unrealized gain (loss) | 0.93 | 0.40 | (1.31 | ) | 3.08 | 0.59 | 0.61 | |||||||||||||||||
Total from investment operations | 1.03 | 0.68 | (0.97 | ) | 3.42 | 0.85 | 0.81 | |||||||||||||||||
Less distributions from: | ||||||||||||||||||||||||
Net investment income | (0.14 | ) | (0.28 | ) | (0.61 | ) | (0.20 | ) | (0.29 | ) | (0.16 | ) | ||||||||||||
Total distributions | (0.14 | ) | (0.28 | ) | (0.61 | ) | (0.20 | ) | (0.29 | ) | (0.16 | ) | ||||||||||||
Net asset value, end of period | $ | 10.68 | $ | 9.79 | $ | 9.39 | $ | 10.97 | $ | 7.75 | $ | 7.19 | ||||||||||||
Total return | 10.67 | %b | 8.00 | % | (9.86 | )% | 44.64 | % | 12.35 | % | 12.39 | % | ||||||||||||
Ratios/Supplemental data: | ||||||||||||||||||||||||
Net assets, end of period (000s) | $ | 568,912 | $ | 513,000 | $ | 473,091 | $ | 741,440 | $ | 374,334 | $ | 387,575 | ||||||||||||
Ratio of expenses to average net assetsc | 0.54 | % | 0.56 | % | 0.52 | % | 0.51 | % | 0.54 | % | 0.57 | % | ||||||||||||
Ratio of net investment income to average net assetsc | 1.83 | % | 3.45 | % | 2.84 | % | 3.21 | % | 3.46 | % | 2.85 | % | ||||||||||||
Portfolio turnover rated | 14 | % | 52 | % | 92 | % | 87 | % | 60 | % | 15 | % |
a | Based on average shares outstanding throughout each period. |
b | Not annualized. |
c | Annualized for periods of less than one year. |
d | Portfolio turnover rates include portfolio transactions that are executed as a result of the Fund processing capital share transactions in Creation Units solely for cash in U.S. dollars. Excluding such transactions, the portfolio turnover rate for the six months ended February 28, 2010 and the years ended August 31, 2009, August 31, 2008, August 31, 2007, August 31, 2006 and August 31, 2005 would have been 5%, 12%, 16%, 3%, 9% and 9%, respectively. See Note 4. |
See notes to financial statements.
56 | 2010 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Financial Highlights (Continued)
iSHARES®, INC.
(For a share outstanding throughout each period)
iShares MSCI Pacific ex-Japan Index Fund | ||||||||||||||||||||||||
Six months ended Feb. 28, 2010 | Year ended Aug. 31, 2009 | Year ended Aug. 31, 2008a | Year ended Aug. 31, 2007a | Year ended Aug. 31, 2006a | Year ended Aug. 31, 2005a | |||||||||||||||||||
Net asset value, beginning of period | $ | 36.85 | $ | 41.37 | $ | 48.31 | $ | 37.34 | $ | 32.52 | $ | 25.24 | ||||||||||||
Income from investment operations: | ||||||||||||||||||||||||
Net investment incomeb | 0.47 | 1.38 | 1.64 | 1.52 | 1.28 | 1.23 | ||||||||||||||||||
Net realized and unrealized gain (loss) | 3.61 | (4.79 | ) | (6.01 | ) | 11.18 | 4.77 | 7.05 | ||||||||||||||||
Total from investment operations | 4.08 | (3.41 | ) | (4.37 | ) | 12.70 | 6.05 | 8.28 | ||||||||||||||||
Less distributions from: | ||||||||||||||||||||||||
Net investment income | (0.80 | ) | (1.11 | ) | (2.51 | ) | (1.73 | ) | (1.23 | ) | (1.00 | ) | ||||||||||||
Net realized gain | – | – | (0.06 | ) | – | – | – | |||||||||||||||||
Total distributions | (0.80 | ) | (1.11 | ) | (2.57 | ) | (1.73 | ) | (1.23 | ) | (1.00 | ) | ||||||||||||
Net asset value, end of period | $ | 40.13 | $ | 36.85 | $ | 41.37 | $ | 48.31 | $ | 37.34 | $ | 32.52 | ||||||||||||
Total return | 11.10 | %c | (7.23 | )% | (9.87 | )% | 34.86 | % | 19.17 | % | 33.27 | % | ||||||||||||
Ratios/Supplemental data: | ||||||||||||||||||||||||
Net assets, end of period (000s) | $ | 3,756,382 | $ | 3,382,554 | $ | 3,263,971 | $ | 3,536,295 | $ | 2,094,931 | $ | 1,522,107 | ||||||||||||
Ratio of expenses to average net assetsd | 0.50 | % | 0.50 | % | 0.50 | % | 0.50 | % | 0.50 | % | 0.50 | % | ||||||||||||
Ratio of net investment income to average net assetsd | 2.35 | % | 4.83 | % | 3.35 | % | 3.43 | % | 3.67 | % | 4.09 | % | ||||||||||||
Portfolio turnover ratee | 3 | % | 10 | % | 14 | % | 11 | % | 8 | % | 16 | % |
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 | 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 Singapore Index Fund | ||||||||||||||||||||||||
Six months Feb. 28, 2010 | Year ended Aug. 31, 2009 | Year ended Aug. 31, 2008 | Year ended Aug. 31, 2007 | Year ended Aug. 31, 2006 | Year ended Aug. 31, 2005 | |||||||||||||||||||
Net asset value, beginning of period | $ | 10.25 | $ | 11.44 | $ | 13.28 | $ | 9.11 | $ | 7.77 | $ | 6.52 | ||||||||||||
Income from investment operations: | ||||||||||||||||||||||||
Net investment incomea | 0.07 | 0.32 | 0.47 | 0.47 | 0.40 | 0.38 | ||||||||||||||||||
Net realized and unrealized gain (loss) | 0.95 | (1.16 | ) | (1.67 | ) | 4.01 | 1.23 | 1.15 | ||||||||||||||||
Total from investment operations | 1.02 | (0.84 | ) | (1.20 | ) | 4.48 | 1.63 | 1.53 | ||||||||||||||||
Less distributions from: | ||||||||||||||||||||||||
Net investment income | (0.26 | ) | (0.35 | ) | (0.64 | ) | (0.31 | ) | (0.29 | ) | (0.28 | ) | ||||||||||||
Total distributions | (0.26 | ) | (0.35 | ) | (0.64 | ) | (0.31 | ) | (0.29 | ) | (0.28 | ) | ||||||||||||
Net asset value, end of period | $ | 11.01 | $ | 10.25 | $ | 11.44 | $ | 13.28 | $ | 9.11 | $ | 7.77 | ||||||||||||
Total return | 9.86 | %b | (5.87 | )% | (9.55 | )% | 49.92 | % | 21.61 | % | 24.06 | % | ||||||||||||
Ratios/Supplemental data: | ||||||||||||||||||||||||
Net assets, end of period (000s) | $ | 1,453,488 | $ | 1,294,039 | $ | 1,476,968 | $ | 1,669,210 | $ | 574,620 | $ | 341,137 | ||||||||||||
Ratio of expenses to average net assetsc | 0.54 | % | 0.55 | % | 0.52 | % | 0.51 | % | 0.54 | % | 0.57 | % | ||||||||||||
Ratio of net investment income to average net assetsc | 1.26 | % | 3.97 | % | 3.56 | % | 3.80 | % | 4.74 | % | 5.19 | % | ||||||||||||
Portfolio turnover rated | 4 | % | 15 | % | 16 | % | 8 | % | 6 | % | 8 | % |
a | Based on average shares outstanding throughout each period. |
b | Not annualized. |
c | Annualized for periods of less than one year. |
d | Portfolio turnover rates exclude portfolio securities received or delivered as a result of processing capital share transactions in Creation Units. |
See notes to financial statements.
58 | 2010 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Financial Highlights (Continued)
iSHARES®, INC.
(For a share outstanding throughout each period)
iShares MSCI South Korea Index Fund | ||||||||||||||||||||||||
Six months ended Feb. 28, 2010 | Year ended Aug. 31, 2009 | Year ended Aug. 31, 2008 | Year ended Aug. 31, 2007 | Year ended Aug. 31, 2006 | Year ended Aug. 31, 2005 | |||||||||||||||||||
Net asset value, beginning of period | $ | 42.01 | $ | 43.55 | $ | 63.60 | $ | 46.00 | $ | 34.75 | $ | 24.17 | ||||||||||||
Income from investment operations: | ||||||||||||||||||||||||
Net investment incomea | 0.31 | 0.30 | 0.80 | 0.51 | 0.31 | 0.46 | ||||||||||||||||||
Net realized and unrealized gain (loss) | 3.30 | (1.45 | ) | (19.87 | ) | 17.42 | 11.20 | 10.22 | ||||||||||||||||
Total from investment operations | 3.61 | (1.15 | ) | (19.07 | ) | 17.93 | 11.51 | 10.68 | ||||||||||||||||
Less distributions from: | ||||||||||||||||||||||||
Net investment income | (0.11 | ) | (0.39 | ) | (0.98 | ) | (0.33 | ) | (0.26 | ) | (0.10 | ) | ||||||||||||
Total distributions | (0.11 | ) | (0.39 | ) | (0.98 | ) | (0.33 | ) | (0.26 | ) | (0.10 | ) | ||||||||||||
Net asset value, end of period | $ | 45.51 | $ | 42.01 | $ | 43.55 | $ | 63.60 | $ | 46.00 | $ | 34.75 | ||||||||||||
Total return | 8.63 | %b | (2.31 | )% | (30.35 | )% | 39.18 | % | 33.16 | % | 44.29 | % | ||||||||||||
Ratios/Supplemental data: | ||||||||||||||||||||||||
Net assets, end of period (000s) | $ | 2,933,068 | $ | 2,398,550 | $ | 1,985,763 | $ | 2,429,453 | $ | 1,621,334 | $ | 698,455 | ||||||||||||
Ratio of expenses to average net assetsc | 0.61 | % | 0.65 | % | 0.63 | % | 0.68 | % | 0.70 | % | 0.74 | % | ||||||||||||
Ratio of expenses to average net assets exclusive of foreign taxesc | 0.61 | % | 0.65 | % | 0.63 | % | 0.68 | % | 0.70 | % | 0.74 | % | ||||||||||||
Ratio of net investment income to average net assetsc | 1.37 | % | 0.91 | % | 1.35 | % | 0.96 | % | 0.71 | % | 1.49 | % | ||||||||||||
Portfolio turnover rated | 6 | % | 62 | % | 42 | % | 20 | % | 47 | % | 30 | % |
a | Based on average shares outstanding throughout each period. |
b | Not annualized. |
c | Annualized for periods of less than one year. |
d | Portfolio turnover rates include portfolio transactions that are executed as a result of the Fund processing capital share transactions in Creation Units solely for cash in U.S. dollars. Excluding such transactions, the portfolio turnover rate for the six months ended February 28, 2010 and the years ended August 31, 2009, August 31, 2008, August 31, 2007, August 31, 2006 and August 31, 2005 would have been 1%, 8%, 15%, 6%, 14% and 9%, respectively. See Note 4. |
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 Taiwan Index Fund | ||||||||||||||||||||||||
Six months ended Feb. 28, 2010 | Year ended Aug. 31, 2009 | Year ended Aug. 31, 2008 | Year ended Aug. 31, 2007 | Year ended Aug. 31, 2006 | Year ended Aug. 31, 2005 | |||||||||||||||||||
Net asset value, beginning of period | $ | 10.94 | $ | 13.13 | $ | 15.99 | $ | 12.57 | $ | 11.57 | $ | 10.66 | ||||||||||||
Income from investment operations: | ||||||||||||||||||||||||
Net investment income (loss)a | (0.03 | ) | 0.30 | 0.54 | 0.38 | 0.34 | 0.27 | |||||||||||||||||
Net realized and unrealized gain (loss) | 1.06 | (1.89 | ) | (3.01 | ) | 3.34 | 0.80 | 0.72 | ||||||||||||||||
Total from investment operations | 1.03 | (1.59 | ) | (2.47 | ) | 3.72 | 1.14 | 0.99 | ||||||||||||||||
Less distributions from: | ||||||||||||||||||||||||
Net investment income | (0.21 | ) | (0.60 | ) | (0.39 | ) | (0.30 | ) | (0.14 | ) | (0.08 | ) | ||||||||||||
Total distributions | (0.21 | ) | (0.60 | ) | (0.39 | ) | (0.30 | ) | (0.14 | ) | (0.08 | ) | ||||||||||||
Net asset value, end of period | $ | 11.76 | $ | 10.94 | $ | 13.13 | $ | 15.99 | $ | 12.57 | $ | 11.57 | ||||||||||||
Total return | 9.30 | %b | (9.67 | )% | (15.69 | )% | 29.91 | % | 9.84 | % | 9.28 | % | ||||||||||||
Ratios/Supplemental data: | ||||||||||||||||||||||||
Net assets, end of period (000s) | $ | 3,200,103 | $ | 3,035,331 | $ | 2,918,008 | $ | 2,769,764 | $ | 1,893,751 | $ | 752,640 | ||||||||||||
Ratio of expenses to average net assetsc | 0.63 | % | 0.82 | % | 0.73 | % | 0.77 | % | 0.85 | % | 1.03 | % | ||||||||||||
Ratio of expenses to average net assets exclusive of foreign taxesc | 0.61 | % | 0.65 | % | 0.63 | % | 0.68 | % | 0.70 | % | 0.74 | % | ||||||||||||
Ratio of net investment income (loss) to average net assetsc | (0.49 | )% | 3.18 | % | 3.54 | % | 2.61 | % | 2.74 | % | 2.34 | % | ||||||||||||
Portfolio turnover rated | 4 | % | 52 | % | 33 | % | 35 | % | 29 | % | 20 | % |
a | Based on average shares outstanding throughout each period. |
b | Not annualized. |
c | Annualized for periods of less than one year. |
d | Portfolio turnover rates include portfolio transactions that are executed as a result of the Fund processing capital share transactions in Creation Units solely for cash in U.S. dollars. Excluding such transactions, the portfolio turnover rate for the six months ended February 28, 2010 and the years ended August 31, 2009, August 31, 2008, August 31, 2007, August 31, 2006 and August 31, 2005 would have been 1%, 14%, 11%, 12%, 10% and 10%, respectively. See Note 4. |
See notes to financial statements.
60 | 2010 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
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, 2010 | Year ended Aug. 31, 2009 | Period from to Aug. 31, 2008 | ||||||||||
Net asset value, beginning of period | $ | 36.87 | $ | 38.83 | $ | 50.03 | ||||||
Income from investment operations: | ||||||||||||
Net investment incomeb | 0.07 | 1.17 | 0.32 | |||||||||
Net realized and unrealized gain (loss) | 5.23 | (1.88 | ) | (11.52 | ) | |||||||
Total from investment operations | 5.30 | (0.71 | ) | (11.20 | ) | |||||||
Less distributions from: | ||||||||||||
Net investment income | (0.16 | ) | (1.25 | ) | – | |||||||
Total distributions | (0.16 | ) | (1.25 | ) | – | |||||||
Net asset value, end of period | $ | 42.01 | $ | 36.87 | $ | 38.83 | ||||||
Total return | 14.36 | %c | (0.33 | )% | (22.39 | )%c | ||||||
Ratios/Supplemental data: | ||||||||||||
Net assets, end of period (000s) | $ | 207,940 | $ | 94,021 | $ | 58,248 | ||||||
Ratio of expenses to average net assetsd | 0.63 | % | 0.65 | % | 0.63 | % | ||||||
Ratio of expenses to average net assets exclusive of foreign taxesd | 0.61 | % | n/a | n/a | ||||||||
Ratio of net investment income to average net assetsd | 0.34 | % | 4.00 | % | 1.68 | % | ||||||
Portfolio turnover ratee | 8 | % | 15 | % | 19 | % |
a | Commencement of operations. |
b | Based on average shares outstanding throughout each period. |
c | Not annualized. |
d | Annualized for periods of less than one year. |
e | Portfolio turnover rates exclude portfolio securities received or delivered as a result of processing capital share transactions in Creation Units. |
See notes to financial statements.
FINANCIAL HIGHLIGHTS | 61 |
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. 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 non-U.S. issuers that may trade in non-U.S. markets. This 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 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”) using a fair value hierarchy that prioritize 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 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 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”); |
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iSHARES®, INC.
• | 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”). |
The availability of observable inputs can vary from security to security and is affected by a wide variety of factors, including, for example, the type of security, whether the security is new and not yet established in the marketplace, the liquidity of markets, and other characteristics particular to the security. Inputs may include price information, volatility statistics, specific and broad credit data, liquidity statistics, and other factors. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3 of the fair value hierarchy.
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. 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. 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 inputs such as quoted market prices, dealer quotations or valuations provided by alternative pricing sources supported by observable inputs are classified within Level 2. These generally include 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 Level 2 investments 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.
NOTESTO FINANCIAL STATEMENTS | 63 |
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Notes to Financial Statements (Unaudited) (Continued)
iSHARES®, INC.
The inputs used by the Funds in estimating the value of Level 3 Prices may include the original transaction price, recent transactions in the same or similar instruments, 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 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.
As of February 28, 2010, the values of each Fund’s investments were classified as Level 1 Prices. The breakdown of each Fund’s investments into major categories is disclosed in its respective Schedule of Investments.
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. Non-cash dividends received in the form of stock in an elective dividend, if any, are recorded as dividend income at fair value. Distributions received by the Funds may include a return of capital that is estimated by management. Such amounts are recorded as a reduction of the cost of investments or reclassified to capital gains. 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. 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, 2010, if any, are reflected in the Funds’ Statements of Assets and Liabilities.
DISTRIBUTIONS TO SHAREHOLDERS
Distributions to shareholders from net investment income, if any, 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.
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Notes to Financial Statements (Unaudited) (Continued)
iSHARES®, INC.
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, 2010.
The Funds had tax basis net capital loss carryforwards as of August 31, 2009, 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 | Expiring 2017 | Total | ||||||||||||||||||
Australia | $ | 3,625,203 | $ | 650,082 | $ | 596,240 | $ | 384,424 | $ | – | $ | 7,066 | $ | 529,868 | $ | 24,006,125 | $ | 29,799,008 | |||||||||
Hong Kong | 4,971,970 | 2,870,602 | 2,330,414 | 468,716 | 425,440 | 2,899,247 | 3,185,408 | 29,235,556 | 46,387,353 | ||||||||||||||||||
Japan Small Cap | – | – | – | – | – | – | – | 131,718 | 131,718 | ||||||||||||||||||
Malaysia | 9,819,029 | 2,898,105 | 775,477 | 6,820,474 | 1,543,708 | 3,357,786 | 1,127,892 | 40,223,530 | 66,566,001 | ||||||||||||||||||
Pacific ex-Japan | – | – | – | – | – | – | – | 66,207,828 | 66,207,828 | ||||||||||||||||||
Singapore | 1,934,119 | 4,428,316 | 4,256,421 | 2,558,348 | – | – | 807,115 | 15,680,510 | 29,664,829 | ||||||||||||||||||
South Korea | 666,642 | 504,041 | 3,363,449 | 11,590,303 | 3,172,573 | 38,097,223 | – | 178,889,302 | 236,283,533 | ||||||||||||||||||
Taiwan | 12,532,361 | 8,689,663 | 9,129,874 | 12,022,719 | 14,435,986 | 64,999,586 | 16,734,578 | 343,375,145 | 481,919,912 | ||||||||||||||||||
Thailand Investable Market | – | – | – | – | – | – | – | 555,444 | 555,444 |
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.
NOTESTO FINANCIAL STATEMENTS | 65 |
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Notes to Financial Statements (Unaudited) (Continued)
iSHARES®, INC.
As of February 28, 2010, gross unrealized appreciation and gross unrealized depreciation based on cost for federal income tax purposes were as follows:
iShares MSCI Index Fund | Tax Cost | Gross Unrealized Appreciation | Gross Unrealized Depreciation | Net Unrealized Appreciation (Depreciation) | ||||||||||
Australia | $ | 2,261,714,990 | $ | 79,604,199 | $ | (91,465,694 | ) | $ | (11,861,495 | ) | ||||
Hong Kong | 2,051,869,477 | – | (314,793,649 | ) | (314,793,649 | ) | ||||||||
Japan Small Cap | 32,753,324 | 1,638,192 | (4,389,740 | ) | (2,751,548 | ) | ||||||||
Malaysia | 356,887,855 | 209,910,445 | (628,607 | ) | 209,281,838 | |||||||||
Pacific ex-Japan | 3,537,186,836 | 496,234,564 | (189,466,120 | ) | 306,768,444 | |||||||||
Singapore | 1,652,965,113 | – | (61,861,825 | ) | (61,861,825 | ) | ||||||||
South Korea | 2,731,866,610 | 448,077,541 | (17,655,390 | ) | 430,422,151 | |||||||||
Taiwan | 2,790,017,452 | 492,166,578 | (79,913,520 | ) | 412,253,058 | |||||||||
Thailand Investable Market | 216,949,889 | 5,206,312 | (14,624,278 | ) | (9,417,966 | ) |
Management has reviewed the tax positions as of February 28, 2010, 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. INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES
On December 1, 2009, Barclays PLC (“Barclays”) completed the sale of its interest in BlackRock Institutional Trust Company, N.A. (“BTC”), formerly known as Barclays Global Investors, N.A., and certain affiliated companies to BlackRock, Inc. (“BlackRock”, and such sale, the “Transaction”). BTC is a wholly-owned subsidiary of BlackRock.
The PNC Financial Services Group, Inc. (“PNC”), Bank of America Corporation (“BAC”) and Barclays are the largest stockholders of BlackRock. Due to the ownership structure, PNC is an affiliate for 1940 Act purposes, but BAC and Barclays are not.
Under the 1940 Act, upon completion of the Transaction on December 1, 2009, each Fund’s investment advisory agreement with BlackRock Fund Advisors (“BFA”), formerly known as Barclays Global Fund Advisors, was automatically terminated. The Board and shareholders of the Funds approved a new investment advisory agreement with BFA. The investment advisory fee rates and expense arrangements for the Funds remained the same after the Transaction.
Pursuant to an Investment Advisory Agreement with the Company, BFA manages the investment of each Fund’s assets. BFA is a California corporation indirectly owned by BlackRock. Under the Investment Advisory Agreement, BFA 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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Notes to Financial Statements (Unaudited) (Continued)
iSHARES®, INC.
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, BFA 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, BFA 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, BFA is entitled to an annual investment advisory fee of 0.50% of the average daily net assets of the Fund.
The U.S. Securities and Exchange Commission has issued an exemptive order which permits BTC to serve as securities lending agent for the Funds, subject to applicable conditions. BTC is an affiliate of BFA, the Funds’ investment adviser. As securities lending agent, BTC 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, 2010, BTC earned securities lending agent fees as follows:
iShares MSCI Index Fund | Securities Lending Agent Fees | iShares MSCI Index Fund | Securities Lending Agent Fees | |||||
Australia | $27,477 | Pacific ex-Japan | $277,389 | |||||
Hong Kong | 48,315 | Singapore | 723,588 | |||||
Japan Small Cap | 6,938 | South Korea | 958,098 |
Cross trades for the six months ended February 28, 2010, 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 BFA (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.
NOTESTO FINANCIAL STATEMENTS | 67 |
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Notes to Financial Statements (Unaudited) (Continued)
iSHARES®, INC.
Each Fund may invest its positive cash balances in certain money market funds managed by BFA or an affiliate. The income earned on these temporary cash investments is included in interest from affiliated issuers in the Statements of Operations.
Certain directors and officers of the Company are also officers of BTC and/or BFA.
3. INVESTMENT PORTFOLIO TRANSACTIONS
Purchases and sales of investments (excluding in-kind transactions and short-term investments) for the six months ended February 28, 2010 were as follows:
iShares MSCI Index Fund | Purchases | Sales | ||||
Australia | $ | 72,051,997 | $ | 101,773,507 | ||
Hong Kong | 33,868,575 | 42,348,311 | ||||
Japan Small Cap | 1,440,505 | 1,708,804 | ||||
Malaysia | 83,231,357 | 74,713,125 | ||||
Pacific ex-Japan | 125,025,283 | 145,840,906 | ||||
Singapore | 62,533,280 | 77,796,900 | ||||
South Korea | 501,288,150 | 171,464,344 | ||||
Taiwan | 144,128,789 | 245,270,114 | ||||
Thailand Investable Market | 15,249,069 | 15,450,209 |
In-kind transactions (see Note 4) for the six months ended February 28, 2010 were as follows:
iShares MSCI Index Fund | In-kind Purchases | In-kind Sales | ||||
Australia | $ | 741,012,594 | $ | 202,890,792 | ||
Hong Kong | 63,406,059 | 461,095,500 | ||||
Japan Small Cap | – | 4,304,845 | ||||
Pacific ex-Japan | 353,206,584 | 267,475,035 | ||||
Singapore | 121,175,616 | 56,391,714 | ||||
Thailand Investable Market | 205,250,588 | 98,866,726 |
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 an optimized 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 Bank and Trust Company, 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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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 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 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 BFA; such reinvestments are subject to investment risk.
As of February 28, 2010, certain Funds had loaned securities which were collateralized by cash. The cash collateral received was invested in money market funds managed by BFA. The market value of the securities on loan as of February 28, 2010 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 BTC as securities lending agent.
6. SUBSEQUENT EVENTS
Management has evaluated the impact of all subsequent events on the Funds through the date the financial statements were available to be issued and has determined that there were no subsequent events requiring adjustment or disclosure in the financial statements.
NOTESTO FINANCIAL STATEMENTS | 69 |
Table of Contents
Shareholder Meeting Results (Unaudited)
iSHARES®, INC.
Two separate special meetings of shareholders of iShares, Inc. were held on November 4, 2009. The shareholder meetings for all the Funds except for the iShares MSCI Australia, iShares MSCI Japan Small Cap and iShares MSCI Thailand Investable Market Index Funds, were adjourned until November 19, 2009. The shareholder meetings for the iShares MSCI Pacific ex-Japan and iShares MSCI South Korea Index Funds were further adjourned until November 30, 2009, at which time the shareholders approved the new advisory agreement. The proposals acted upon by shareholders at the special meetings and the results of the shareholder vote were as follows:
First Meeting
Shareholders of the Funds approved Proposals 1 and 2.
Proposal 1
To approve a new investment advisory agreement between the Company and Barclays Global Fund Advisors (“BGFA”), on behalf of each Fund, which took effect upon the consummation of the Barclays PLC binding agreement to sell its interest in BGFA and certain affiliated companies to BlackRock, Inc. (the “Transaction”).
iShares MSCI Index Fund | Votes For | Votes Against | Votes Abstaining | Broker Votes* | ||||
Australia | 32,767,194 | 750,970 | 1,433,200 | 4,493,342 | ||||
Hong Kong | 64,067,601 | 747,119 | 613,136 | 3,937,283 | ||||
Japan Small Cap | 399,953 | 34,462 | 1,138 | – | ||||
Malaysia | 22,880,513 | 488,528 | 1,012,641 | 2,355,775 | ||||
Pacific ex-Japan | 42,898,251 | 632,446 | 456,308 | 2,735,283 | ||||
Singapore | 59,522,740 | 2,602,832 | 1,257,920 | 5,408,148 | ||||
South Korea | 27,678,404 | 402,147 | 360,225 | 1,462,810 | ||||
Taiwan | 132,831,296 | 639,322 | 811,459 | 5,770,002 | ||||
Thailand Investable Market | 1,342,645 | 13,321 | 13,384 | – |
Proposal 2
To approve a change in the classification of certain Funds’ investment objective from a fundamental investment policy to a non-fundamental investment policy.
iShares MSCI Index Fund | Votes For | Votes Against | Votes Abstaining | Broker Non- Votes* | ||||
Australia | 30,808,518 | 1,833,250 | 2,309,596 | 4,493,342 | ||||
Hong Kong | 61,212,227 | 2,117,753 | 2,097,876 | 3,937,283 | ||||
Malaysia | 22,476,761 | 803,733 | 1,101,188 | 2,355,775 | ||||
Pacific ex-Japan | 39,117,399 | 4,271,572 | 598,034 | 2,735,283 | ||||
Singapore | 56,913,788 | 3,748,662 | 2,721,042 | 5,408,148 | ||||
South Korea | 27,102,604 | 704,061 | 634,111 | 1,462,810 | ||||
Taiwan | 126,783,493 | 6,060,007 | 1,438,577 | 5,770,002 |
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Shareholder Meeting Results (Unaudited) (Continued)
iSHARES®, INC.
Second Meeting
This proposal was approved by the shareholders of the Company on November 4, 2009. All nominees who previously served as Directors of the Company were re-elected and the term of their election commenced immediately. Robert S. Kapito was newly elected as a Director to the Company and the term of his election took effect upon the consummation of the Transaction.
Proposal 1**
To elect a Board of Directors of the Company.
Independent Director | Votes For | Votes Withheld | ||
George G.C. Parker | 1,597,646,058 | 46,083,560 | ||
J. Darrell Duffie | 1,517,311,684 | 126,417,934 | ||
Cecilia H. Herbert | 1,599,757,544 | 43,972,074 | ||
Charles A. Hurty | 1,599,463,459 | 44,266,159 | ||
John E. Kerrigan | 1,599,938,757 | 43,790,861 | ||
John E. Martinez | 1,599,890,206 | 43,839,412 | ||
Robert H. Silver | 1,601,631,280 | 42,098,338 | ||
Interested Director | Votes For | Votes Withheld | ||
Robert S. Kapito | 1,600,119,598 | 43,610,020 | ||
Lee T. Kranefuss | 1,117,041,744 | 526,687,874 |
* | Broker non-votes are proxies received by the Fund from brokers or nominees who did not receive instructions from the beneficial owner or other persons entitled to vote and who have no discretionary power to vote on a particular matter. Broker non-votes have the effect of a vote against the proposal. |
** | Denotes Company-wide proposal and voting results. |
SHAREHOLDER MEETING RESULTS | 71 |
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 Russell Domestic Index Funds | Trading Symbol | |
iShares Russell 3000 | IWV | |
iShares Russell 3000 Growth | IWZ | |
iShares Russell 3000 Value | IWW | |
iShares Russell Top 200 | IWL | |
iShares Russell Top 200 Growth | IWY | |
iShares Russell Top 200 Value | IWX | |
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 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 Morningstar Domestic 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 Dow Jones Domestic Index Funds | ||
iShares Dow Jones U.S. | IYY | |
iShares KLD Socially Responsible Index Funds | ||
iShares FTSE KLD 400 Social | DSI | |
iShares FTSE KLD Select Social | KLD | |
iShares NYSE Domestic Index Funds | ||
iShares NYSE Composite | NYC | |
iShares NYSE 100 | NY | |
iShares Domestic Specialty Index Funds | ||
iShares S&P U.S. Preferred Stock | PFF | |
iShares Dow Jones Select Dividend | DVY |
iShares North American Sector/Subsector Index Funds | Trading Symbol | |
iShares S&P North American Technology Sector | IGM | |
iShares S&P North American Technology-Multimedia | IGN | |
iShares S&P North American Technology- | IGW | |
iShares S&P North American Technology-Software | IGV | |
iShares S&P North American Natural Resources Sector | IGE | |
iShares Domestic Sector Index Funds | ||
iShares Dow Jones U.S. Basic Materials Sector | IYM | |
iShares Dow Jones U.S. Consumer Goods Sector | IYK | |
iShares Dow Jones U.S. Consumer Services Sector | IYC | |
iShares Dow Jones U.S. Energy Sector | IYE | |
iShares Dow Jones U.S. Financial Sector | IYF | |
iShares Dow Jones U.S. Healthcare Sector | IYH | |
iShares Dow Jones U.S. Industrial Sector | IYJ | |
iShares Dow Jones U.S. Technology Sector | IYW | |
iShares Dow Jones U.S. Telecommunications Sector | IYZ | |
iShares Dow Jones U.S. Utilities Sector | IDU | |
iShares Domestic Subsector Index Funds | ||
iShares Dow Jones Transportation Average | IYT | |
iShares Dow Jones U.S. Aerospace & Defense | ITA | |
iShares Dow Jones U.S. Broker-Dealers | IAI | |
iShares Dow Jones U.S. Financial Services | IYG | |
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 & | 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 Nasdaq Biotechnology | IBB | |
iShares Domestic Real Estate Index Funds | ||
iShares Cohen & Steers Realty Majors | ICF | |
iShares Dow Jones U.S. Real Estate | IYR | |
iShares FTSE NAREIT Real Estate 50 | FTY | |
iShares FTSE NAREIT Industrial/Office Capped | FIO | |
iShares FTSE NAREIT Mortgage Plus Capped | REM | |
iShares FTSE NAREIT Residential Plus Capped | REZ | |
iShares FTSE NAREIT Retail Capped | RTL | |
iShares Target Risk Index Funds | ||
iShares S&P Conservative Allocation | AOK | |
iShares S&P Moderate Allocation | AOM | |
iShares S&P Growth Allocation | AOR | |
iShares S&P Aggressive Allocation | AOA |
72 | 2010 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
The iShares® Family of Funds (Continued)
iShares International Country Index Funds | Trading Symbol | |
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 S&P/TOPIX 150 | ITF | |
iShares MSCI Malaysia | EWM | |
iShares MSCI Mexico Investable Market | EWW | |
iShares MSCI Netherlands Investable Market | EWN | |
iShares MSCI All Peru Capped | EPU | |
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 India Nifty 50 | INDY | |
iShares International Index Funds | ||
iShares MSCI ACWI ex US | ACWX | |
iShares MSCI EAFE | EFA | |
iShares MSCI EAFE Growth | EFG | |
iShares MSCI EAFE Value | EFV | |
iShares MSCI EAFE Small Cap | SCZ | |
iShares FTSE Developed Small Cap ex-North America | IFSM | |
iShares MSCI Emerging Markets | EEM | |
iShares MSCI Emerging Markets Eastern Europe | ESR | |
iShares MSCI BRIC | BKF | |
iShares MSCI EMU | EZU | |
iShares MSCI All Country Asia ex Japan | AAXJ | |
iShares MSCI Pacific ex-Japan | EPP | |
iShares S&P Asia 50 | AIA | |
iShares S&P Europe 350 | IEV | |
iShares S&P Latin America 40 | ILF | |
iShares International/Global Real Estate Index Funds | ||
iShares S&P Developed ex-U.S. Property | WPS | |
iShares FTSE EPRA/NAREIT Developed | IFGL | |
iShares FTSE EPRA/NAREIT Developed Asia | IFAS | |
iShares FTSE EPRA/NAREIT Developed Europe | IFEU | |
iShares FTSE EPRA/NAREIT North America | IFNA |
iShares Target Date Index Funds | Trading Symbol | |
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 Global Index Funds | ||
iShares MSCI ACWI | ACWI | |
iShares S&P Global 100 | IOO | |
iShares MSCI Kokusai | TOK | |
iShares International/Global Sector Index Funds | ||
iShares MSCI ACWI ex US Financials Sector | AXFN | |
iShares MSCI Emerging Markets Financials Sector | EMFN | |
iShares MSCI Emerging Markets Materials Sector | EMMT | |
iShares MSCI Europe Financials Sector | EUFN | |
iShares MSCI Far East Financials Sector | FEFN | |
iShares S&P Global Consumer Discretionary Sector | RXI | |
iShares S&P Global Consumer Staples Sector | KXI | |
iShares S&P Global Energy Sector | IXC | |
iShares S&P Global Financials Sector | IXG | |
iShares S&P Global Healthcare Sector | IXJ | |
iShares S&P Global Industrials Sector | EXI | |
iShares S&P Global Materials Sector | MXI | |
iShares S&P Global Technology Sector | IXN | |
iShares S&P Global Telecommunications Sector | IXP | |
iShares S&P Global Utilities Sector | JXI | |
iShares International/Global Theme Based and Specialty Index Funds | ||
iShares S&P Global Clean Energy | ICLN | |
iShares S&P Global Infrastructure | IGF | |
iShares S&P Emerging Markets Infrastructure | EMIF | |
iShares S&P Global Nuclear Energy | NUCL | |
iShares S&P Global Timber & Forestry | WOOD | |
iShares Dow Jones International Select Dividend | IDV | |
iShares U.S. Multisector Bond Funds | ||
iShares Barclays Aggregate | AGG | |
iShares Barclays Government/Credit | GBF | |
iShares Barclays Intermediate Government/Credit | GVI | |
iShares 10+ Year Government/Credit | GLJ | |
iShares U.S. Government Bond Funds | ||
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 U.S. Credit Bond Funds | ||
iShares Barclays Credit | CFT | |
iShares Barclays 1-3 Year Credit | CSJ | |
iShares Barclays Intermediate Credit | CIU | |
iShares iBoxx $ Investment Grade Corporate | LQD | |
iShares 10+ Year Credit | CLY | |
iShares iBoxx $ High Yield Corporate | HYG |
iSHARES FAMILYOF FUNDS | 73 |
Table of Contents
The iShares® Family of Funds (Continued)
iShares AMT-Free Municipal Bond Funds | Trading Symbol | |
iShares S&P National AMT-Free Municipal | MUB | |
iShares S&P Short Term National AMT-Free Municipal | SUB | |
iShares S&P California AMT-Free Municipal | CMF | |
iShares S&P New York AMT-Free Municipal | NYF | |
iShares 2012 S&P AMT-Free Municipal Series | MUAA | |
iShares 2013 S&P AMT-Free Municipal Series | MUAB | |
iShares 2014 S&P AMT-Free Municipal Series | MUAC | |
iShares 2015 S&P AMT-Free Municipal Series | MUAD | |
iShares 2016 S&P AMT-Free Municipal Series | MUAE | |
iShares 2017 S&P AMT-Free Municipal Series | MUAF |
iShares U.S. Securitized Bond Funds | Trading Symbol | |
iShares Barclays MBS | MBB | |
iShares International Bond Funds | ||
iShares JPMorgan USD Emerging Markets | EMB | |
iShares S&P/Citigroup International Treasury | IGOV | |
iShares S&P/Citigroup 1-3 Year International Treasury | ISHG |
The iShares Funds (“Funds”) are distributed by SEI Investments Distribution Co. (“SEI”). iShares® is a registered trademark of BlackRock Institutional Trust Company, N.A. The 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., MSCI Inc., Morningstar Inc., The NASDAQ OMX Group, 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, endorsed or issued by Barclays Capital. None of these companies make any representation regarding the advisability of investing in the iShares Funds. Neither SEI, nor BlackRock Institutional Trust Company, N.A., nor any of their affiliates, are affiliated with the companies listed above. FXI does not make any warranty regarding the FTSE/Xinhua Index. All rights in the FTSE/Xinhua Index vest in FXI. Neither FTSE nor NAREIT makes any warranty regarding the FTSE NAREIT Real Estate 50/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.
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 2010 Semi-Annual Report.
iS-2350-0310
74 | 2010 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Dear iShares Shareholder:
Electronic delivery is the easiest, most convenient way to receive reporting on your iShares holdings. In addition, it’s a way we can all care for our environment. To that end, we are pleased to offer shareholder reports and prospectuses online.
Once you have enrolled, you will no longer receive shareholder reports and prospectuses 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 and is available to be viewed or downloaded.
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 notifications sent.
Your information and e-mail 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.
Table of Contents
For more information:
WWW.iSHARES.COM
1-800-iShares (1-800-474-2737)
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.
Investing involves risk, including possible loss of principal.
The iShares Funds are distributed by SEI Investments Distribution Co. (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 BlackRock Institutional Trust Company, N.A., nor any of their affiliates, are affiliated with the company listed above.
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 ending 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 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.
©2010 BlackRock Institutional Trust Company, N.A. All rights reserved. iShares® is a registered trademark of BlackRock Institutional Trust Company, N.A. All other trademarks, servicemarks, or registered trademarks are the property of their respective owners.
iShares®
BLACKROCK
iS-5ar-83-0210
Table of Contents
2010 SEMI-ANNUAL REPORT TO SHAREHOLDERS
iSHARES® MSCI SERIES
FEBRUARY 28, 2010
Would you prefer to receive materials like this electronically?
See inside back cover for details.
iShares MSCI Japan Index Fund | EWJ | NYSE Arca
Table of Contents
1 | ||
2 | ||
3 | ||
10 | ||
13 | ||
14 | ||
20 | ||
24 |
Table of Contents
iSHARES® MSCI JAPAN INDEX FUND
Performance as of February 28, 2010
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 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, 2010, the total return for the Fund was (1.86)%, while the total return for the Index was (1.53)%.
Average Annual Total Returns | ||||||||||||||||
Year Ended 2/28/10 | Five Years Ended 2/28/10 | Ten Years Ended 2/28/10 | ||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||
33.12% | 36.76% | 34.07% | (0.65)% | (0.67)% | (0.14)% | (3.21)% | (3.30)% | (2.71)% | ||||||||
Cumulative Total Returns | ||||||||||||||||
Year Ended 2/28/10 | Five Years Ended 2/28/10 | Ten Years Ended 2/28/10 | ||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||
33.12% | 36.76% | 34.07% | (3.23)% | (3.33)% | (0.71)% | (27.86)% | (28.52)% | (24.03)% |
“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 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 performance shown in the table(s) above assumes reinvestment of all dividends and capital gain distributions and does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption or sale of fund shares. The investment return and principal value of shares of the Fund will vary with changes in market conditions. Shares of the Fund may be worth more or less than their original cost when they are redeemed or sold in the market. The Fund’s past performance is no guarantee of future results.
PORTFOLIO ALLOCATION As of 2/28/10 | |||
Sector | Percentage of Net Assets | ||
Consumer Cyclical | 26.15 | % | |
Industrial | 21.96 | ||
Financial | 16.66 | ||
Consumer Non-Cyclical | 10.77 | ||
Basic Materials | 6.99 | ||
Utilities | 6.00 | ||
Communications | 5.25 | ||
Technology | 4.94 | ||
Energy | 1.19 | ||
Short-Term and Other Net Assets | 0.09 | ||
TOTAL | 100.00 | % | |
TEN LARGEST FUND HOLDINGS As of 2/28/10 | |||
Security | Percentage of Net Assets | ||
Toyota Motor Corp. | 5.02 | % | |
Mitsubishi UFJ Financial Group Inc. | 2.92 | ||
Honda Motor Co. Ltd. | 2.61 | ||
Canon Inc. | 2.02 | ||
Sumitomo Mitsui Financial Group Inc. | 1.88 | ||
Takeda Pharmaceutical Co. Ltd. | 1.59 | ||
Tokyo Electric Power Co. Inc. (The) | 1.56 | ||
Sony Corp. | 1.55 | ||
Mitsubishi Corp. | 1.46 | ||
Nintendo Co. Ltd. | 1.37 | ||
TOTAL | 21.98 | % | |
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, 2009 to February 28, 2010.
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 (9/1/09) | Ending Account Value (2/28/10) | Annualized Expense Ratio | Expenses Paid During Perioda (9/1/09 to 2/28/10) | ||||||
Actual | $1,000.00 | $ 981.40 | 0.54 | % | $2.65 | ||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,022.10 | 0.54 | 2.71 |
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 | 2010 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited)
iSHARES® MSCI JAPAN INDEX FUND
February 28, 2010
Security | Shares | Value | |||
COMMON STOCKS – 99.91% | |||||
ADVERTISING – 0.22% | |||||
Dentsu Inc. | 356,800 | $ | 8,471,817 | ||
Hakuhodo DY Holdings Inc. | 62,440 | 3,056,479 | |||
11,528,296 | |||||
AGRICULTURE – 0.73% | |||||
Japan Tobacco Inc. | 10,704 | 38,845,889 | |||
38,845,889 | |||||
AIRLINES – 0.10% | |||||
All Nippon Airways Co. Ltd. | 1,786,000 | 5,406,336 | |||
5,406,336 | |||||
APPAREL – 0.16% | |||||
ASICS Corp. | 892,000 | 8,371,440 | |||
8,371,440 | |||||
AUTO MANUFACTURERS – 9.64% | |||||
Fuji Heavy Industries Ltd.a | 1,784,000 | 8,130,535 | |||
Hino Motors Ltd.a | 892,000 | 3,322,478 | |||
Honda Motor Co. Ltd. | 4,014,000 | 139,122,489 | |||
Isuzu Motors Ltd.a | 2,676,000 | 6,715,220 | |||
Mazda Motor Corp.a | 3,568,000 | 9,395,285 | |||
Mitsubishi Motors Corp.a,b | 8,920,000 | 12,747,876 | |||
Nissan Motor Co. Ltd.a | 6,065,600 | 48,120,722 | |||
Suzuki Motor Corp. | 892,000 | 18,961,211 | |||
Toyota Motor Corp. | 7,136,000 | 267,404,265 | |||
513,920,081 | |||||
AUTO PARTS & EQUIPMENT – 2.07% | |||||
Aisin Seiki Co. Ltd. | 446,200 | 11,709,204 | |||
Bridgestone Corp. | 1,427,200 | 25,021,973 | |||
Denso Corp. | 1,159,600 | 31,422,009 | |||
JTEKT Corp. | 446,000 | 4,687,605 | |||
NGK Spark Plug Co. Ltd. | 428,000 | 5,047,476 | |||
NHK Spring Co. Ltd. | 892,000 | 7,367,670 | |||
NOK Corp. | 267,600 | 3,731,012 | |||
Sumitomo Rubber Industries Inc. | 446,000 | 3,633,646 | |||
Toyoda Gosei Co. Ltd. | 178,400 | 4,625,371 | |||
Toyota Boshoku Corp. | 89,200 | 1,539,783 | |||
Toyota Industries Corp. | 446,000 | 11,719,012 | |||
110,504,761 |
Security | Shares | Value | |||
BANKS – 9.34% | |||||
Aozora Bank Ltd.a | 1,784,000 | $ | 2,288,595 | ||
Bank of Kyoto Ltd. (The) | 892,000 | 7,729,027 | |||
Bank of Yokohama Ltd. (The) | 3,568,000 | 17,867,102 | |||
Chiba Bank Ltd. (The) | 1,784,000 | 10,860,789 | |||
Chuo Mitsui Trust Holdings Inc. | 2,676,000 | 9,636,190 | |||
Fukuoka Financial Group Inc. | 1,790,000 | 6,586,733 | |||
Gunma Bank Ltd. (The) | 892,000 | 4,968,660 | |||
Hachijuni Bank Ltd. (The) | 892,000 | 4,958,623 | |||
Hiroshima Bank Ltd. (The) | 892,000 | 3,693,873 | |||
Hokuhoku Financial Group Inc. | 3,573,000 | 7,518,719 | |||
Iyo Bank Ltd. (The) | 892,000 | 7,939,819 | |||
Joyo Bank Ltd. (The) | 1,784,000 | 7,166,916 | |||
Mitsubishi UFJ Financial | 30,774,080 | 155,489,359 | |||
Mizuho Financial Group Inc. | 33,806,800 | 65,433,743 | |||
Mizuho Trust & Banking | 4,460,000 | 4,316,210 | |||
Nishi-Nippon City | 1,784,000 | 4,818,095 | |||
Resona Holdings Inc. | 1,159,600 | 14,014,633 | |||
Sapporo Hokuyo Holdings Inc. | 895,000 | 3,927,868 | |||
Senshu Ikeda Holdings Inc.a,b | 1,159,600 | 2,831,635 | |||
Seven Bank Ltd. | 1,784 | 3,705,918 | |||
77 Bank Ltd. (The) | 892,000 | 4,858,247 | |||
Shinsei Bank Ltd.a,b | 2,676,000 | 3,011,309 | |||
Shizuoka Bank Ltd. (The) | 1,784,000 | 15,799,336 | |||
Sumitomo Mitsui Financial | 3,122,000 | 100,336,826 | |||
Sumitomo Trust and Banking | 3,568,000 | 20,155,697 | |||
Suruga Bank Ltd. | 892,000 | 8,180,723 | |||
498,094,645 | |||||
BEVERAGES – 0.98% | |||||
Asahi Breweries Ltd. | 892,000 | 17,104,237 | |||
Coca-Cola West Co. Ltd. | 178,400 | 2,918,963 | |||
ITO EN Ltd. | 178,400 | 2,736,276 | |||
Kirin Holdings Co. Ltd. | 1,784,000 | 24,612,435 | |||
Sapporo Holdings Ltd. | 892,000 | 4,607,303 | |||
51,979,214 |
SCHEDULEOF INVESTMENTS | 3 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI JAPAN INDEX FUND
February 28, 2010
Security | Shares | Value | |||
BUILDING MATERIALS – 1.53% | |||||
Asahi Glass Co. Ltd. | 2,676,000 | $ | 26,710,314 | ||
Daikin Industries Ltd. | 535,200 | 20,597,356 | |||
JS Group Corp. | 624,400 | 12,303,206 | |||
Nippon Sheet Glass Co. Ltd. | 1,784,000 | 4,777,944 | |||
Panasonic Electric Works | 892,000 | 10,399,055 | |||
Rinnai Corp. | 89,200 | 4,707,680 | |||
Taiheiyo Cement Corp.a | 1,784,000 | 2,328,746 | |||
81,824,301 | |||||
CHEMICALS – 3.40% | |||||
Asahi Kasei Corp. | 2,676,000 | 13,942,362 | |||
Daicel Chemical Industries Ltd. | 892,000 | 5,972,430 | |||
Denki Kagaku Kogyo K.K. | 892,000 | 3,603,533 | |||
Hitachi Chemical Co. Ltd. | 267,600 | 5,480,583 | |||
JSR Corp. | 446,000 | 8,732,797 | |||
Kaneka Corp. | 892,000 | 5,319,980 | |||
Mitsubishi Chemical | 3,122,000 | 14,158,173 | |||
Mitsubishi Gas Chemical | 892,000 | 4,818,095 | |||
Mitsui Chemicals Inc. | 1,784,000 | 4,898,397 | |||
Nitto Denko Corp. | 446,000 | 16,436,730 | |||
Shin-Etsu Chemical Co. Ltd. | 981,200 | 52,778,214 | |||
Showa Denko K.K. | 3,568,000 | 7,227,142 | |||
Sumitomo Chemical Co. Ltd. | 3,568,000 | 15,819,412 | |||
Taiyo Nippon Sanso Corp. | 892,000 | 8,110,460 | |||
Tokuyama Corp. | 892,000 | 4,757,869 | |||
Tosoh Corp. | 892,000 | 2,138,030 | |||
Ube Industries Ltd. | 2,676,000 | 6,956,125 | |||
181,150,332 | |||||
COMMERCIAL SERVICES – 1.07% | |||||
Benesse Holdings Inc. | 178,400 | 8,010,083 | |||
Dai Nippon Printing Co. Ltd. | 1,784,000 | 23,588,589 | |||
Kamigumi Co. Ltd. | 892,000 | 6,956,125 | |||
Nissha Printing Co. Ltd. | 89,200 | 3,156,856 | |||
Toppan Printing Co. Ltd. | 1,786,000 | 15,515,580 | |||
57,227,233 | |||||
COMPUTERS – 0.94% | |||||
Fujitsu Ltd. | 4,460,000 | 28,958,757 | |||
Itochu Techno-Solutions Corp. | 89,200 | 2,840,668 |
Security | Shares | Value | |||
OBIC Co. Ltd. | 8,920 | $ | 1,561,866 | ||
TDK Corp. | 267,600 | 16,501,975 | |||
49,863,266 | |||||
COSMETICS & PERSONAL CARE – 1.17% | |||||
Kao Corp. | 1,338,000 | 34,208,473 | |||
Shiseido Co. Ltd. | 892,000 | 19,764,226 | |||
Unicharm Corp. | 89,200 | 8,552,118 | |||
62,524,817 | |||||
DISTRIBUTION & WHOLESALE – 4.59% | |||||
Canon Marketing Japan Inc. | 89,200 | 1,183,444 | |||
Hitachi High-Technologies Corp. | 89,200 | 1,825,857 | |||
ITOCHU Corp. | 3,568,000 | 28,747,966 | |||
Marubeni Corp. | 4,460,000 | 26,650,087 | |||
Mitsubishi Corp. | 3,122,000 | 77,992,911 | |||
Mitsui & Co. Ltd. | 4,192,400 | 65,057,330 | |||
Sojitz Corp. | 2,943,600 | 5,233,656 | |||
Sumitomo Corp. | 2,765,200 | 30,121,123 | |||
Toyota Tsusho Corp. | 535,300 | 7,686,297 | |||
244,498,671 | |||||
DIVERSIFIED FINANCIAL SERVICES – 2.21% | |||||
Acom Co. Ltd.b | 107,048 | 1,539,496 | |||
AEON Credit Service Co. Ltd. | 178,470 | 1,827,578 | |||
Daiwa Securities Group Inc. | 4,460,000 | 22,032,746 | |||
Mitsubishi UFJ Lease & | 142,720 | 4,930,517 | |||
Mizuho Securities Co. Ltd. | 892,000 | 2,639,914 | |||
Nomura Holdings Inc. | 8,830,800 | 65,188,823 | |||
ORIX Corp. | 258,680 | 19,852,558 | |||
118,011,632 | |||||
ELECTRIC – 5.10% | |||||
Chubu Electric Power Co. Inc. | 1,605,600 | 42,549,800 | |||
Chugoku Electric Power | 624,500 | 13,036,038 | |||
Electric Power Development | 356,800 | 11,944,860 | |||
Hokkaido Electric Power Co. Inc. | 446,000 | 8,828,155 | |||
Hokuriku Electric Power Co. | 446,000 | 10,067,811 | |||
Kansai Electric Power | 1,873,200 | 44,350,563 | |||
Kyushu Electric Power Co. Inc. | 981,200 | 22,038,769 | |||
Shikoku Electric Power Co. Inc. | 446,000 | 12,798,065 |
4 | 2010 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI JAPAN INDEX FUND
February 28, 2010
Security | Shares | Value | |||
Tohoku Electric Power Co. Inc. | 1,070,400 | $ | 23,283,443 | ||
Tokyo Electric Power | 3,032,800 | 83,238,611 | |||
272,136,115 | |||||
ELECTRICAL COMPONENTS & | |||||
Brother Industries Ltd. | 535,200 | 6,094,890 | |||
Casio Computer Co. Ltd. | 535,200 | 4,011,064 | |||
Furukawa Electric Co. Ltd. | 1,784,000 | 8,632,420 | |||
GS Yuasa Corp.b | 892,000 | 6,243,448 | |||
Hitachi Ltd.a | 10,704,000 | 35,292,545 | |||
Mitsubishi Electric Corp.a | 4,460,000 | 36,587,408 | |||
SANYO Electric Co. Ltd.a,b | 4,396,000 | 7,420,244 | |||
Sharp Corp. | 2,676,000 | 31,016,485 | |||
Stanley Electric Co. Ltd. | 358,000 | 6,574,647 | |||
Sumitomo Electric | 1,605,600 | 19,296,470 | |||
Toshiba Corp.a | 9,812,000 | 49,134,530 | |||
Ushio Inc. | 267,600 | 4,333,274 | |||
214,637,425 | |||||
ELECTRONICS – 5.31% | |||||
Advantest Corp. | 356,800 | 8,475,832 | |||
Fanuc Ltd. | 446,000 | 43,563,608 | |||
Hirose Electric Co. Ltd. | 89,200 | 9,485,625 | |||
Hoya Corp. | 981,200 | 24,578,307 | |||
IBIDEN Co. Ltd. | 267,600 | 9,012,849 | |||
Keyence Corp. | 89,251 | 19,594,745 | |||
Kyocera Corp. | 356,800 | 31,759,275 | |||
Mabuchi Motor Co. Ltd. | 89,200 | 4,868,283 | |||
Minebea Co. Ltd. | 892,000 | 4,868,283 | |||
Mitsumi Electric Co. Ltd. | 178,400 | 3,400,772 | |||
Murata Manufacturing Co. Ltd. | 535,200 | 28,366,534 | |||
NEC Corp.a | 6,244,000 | 17,355,179 | |||
NGK Insulators Ltd. | 892,000 | 19,242,266 | |||
Nippon Electric Glass Co. Ltd. | 892,500 | 11,589,996 | |||
Omron Corp. | 535,200 | 11,659,790 | |||
Secom Co. Ltd. | 535,200 | 24,572,284 | |||
Yaskawa Electric Corp. | 892,000 | 7,046,464 | |||
Yokogawa Electric Corp. | 446,000 | 3,668,778 | |||
283,108,870 | |||||
ENGINEERING & CONSTRUCTION – 0.76% | |||||
JGC Corp. | 892,000 | 16,762,955 | |||
Kajima Corp. | 1,784,000 | 4,175,682 |
Security | Shares | Value | |||
Obayashi Corp. | 1,784,000 | $ | 6,905,936 | ||
Shimizu Corp. | 1,784,000 | 6,905,936 | |||
Taisei Corp. | 2,676,000 | 5,540,809 | |||
40,291,318 | |||||
ENTERTAINMENT – 0.32% | |||||
Oriental Land Co. Ltd. | 178,400 | 12,767,951 | |||
Toho Co. Ltd. | 267,600 | 4,375,432 | |||
17,143,383 | |||||
ENVIRONMENTAL CONTROL – 0.14% | |||||
Kurita Water Industries Ltd. | 267,600 | 7,371,685 | |||
7,371,685 | |||||
FOOD – 1.21% | |||||
Ajinomoto Co. Inc. | 1,784,000 | 18,168,233 | |||
Kikkoman Corp. | 892,000 | 10,589,771 | |||
Meiji Holdings Co. Ltd.a | 178,428 | 7,168,041 | |||
Nippon Meat Packers Inc. | 892,000 | 10,910,977 | |||
Nisshin Seifun Group Inc. | 448,000 | 5,913,509 | |||
Nissin Foods Holdings Co. Ltd. | 178,400 | 6,173,184 | |||
Yakult Honsha Co. Ltd. | 178,400 | 5,424,372 | |||
64,348,087 | |||||
FOREST PRODUCTS & PAPER – 0.27% | |||||
Nippon Paper Group Inc. | 268,500 | 6,855,640 | |||
Oji Paper Co. Ltd. | 1,784,000 | 7,628,650 | |||
14,484,290 | |||||
GAS – 0.90% | |||||
Osaka Gas Co. Ltd. | 4,460,000 | 16,160,693 | |||
Toho Gas Co. Ltd. | 892,000 | 4,878,321 | |||
Tokyo Gas Co. Ltd. | 6,244,000 | 27,192,123 | |||
48,231,137 | |||||
HAND & MACHINE TOOLS – 1.20% | |||||
Fuji Electric Holdings Co. Ltd.a | 892,000 | 2,087,841 | |||
Makita Corp. | 267,600 | 8,567,175 | |||
Nidec Corp. | 267,600 | 25,987,599 | |||
SMC Corp. | 178,400 | 22,263,613 | |||
THK Co. Ltd. | 268,200 | 5,194,083 | |||
64,100,311 | |||||
HEALTH CARE – PRODUCTS – 0.55% | |||||
Sysmex Corp. | 89,200 | 5,299,904 | |||
Terumo Corp. | 446,000 | 24,190,851 | |||
29,490,755 |
SCHEDULEOF INVESTMENTS | 5 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI JAPAN INDEX FUND
February 28, 2010
Security | Shares | Value | |||
HOME BUILDERS – 0.45% | |||||
Daiwa House Industry Co. Ltd. | 892,000 | $ | 9,555,888 | ||
Sekisui Chemical Co. Ltd. | 892,000 | 5,902,166 | |||
Sekisui House Ltd. | 892,000 | 8,712,722 | |||
24,170,776 | |||||
HOME FURNISHINGS – 2.86% | |||||
Panasonic Corp. | 4,727,615 | 65,701,958 | |||
Sony Corp. | 2,408,400 | 82,660,440 | |||
Yamaha Corp. | 356,800 | 4,223,863 | |||
152,586,261 | |||||
HOUSEWARES – 0.11% | |||||
TOTO Ltd. | 892,000 | 5,932,279 | |||
5,932,279 | |||||
INSURANCE – 2.33% | |||||
Aioi Insurance Co. Ltd. | 892,000 | 4,366,398 | |||
Mitsui Sumitomo Insurance | 1,070,400 | 27,451,095 | |||
Nipponkoa Insurance Co. Ltd. | 1,784,000 | 10,941,090 | |||
Sompo Japan Insurance Inc. | 1,784,000 | 12,346,368 | |||
Sony Financial Holdings Inc. | 1,784 | 5,195,512 | |||
T&D Holdings Inc. | 624,400 | 13,483,639 | |||
Tokio Marine Holdings Inc. | 1,784,000 | 50,288,865 | |||
124,072,967 | |||||
INTERNET – 1.91% | |||||
Dena Co. Ltd. | 892 | 6,926,011 | |||
Matsui Securities Co. Ltd.b | 356,800 | 2,392,987 | |||
Rakuten Inc. | 17,840 | 13,751,646 | |||
SBI Holdings Inc. | 41,924 | 7,482,301 | |||
SoftBank Corp. | 1,873,200 | 49,051,217 | |||
Trend Micro Inc. | 267,600 | 9,229,663 | |||
Yahoo! Japan Corp. | 34,788 | 13,016,384 | |||
101,850,209 | |||||
IRON & STEEL – 2.61% | |||||
Daido Steel Co. Ltd. | 892,000 | 3,513,194 | |||
JFE Holdings Inc. | 1,248,850 | 46,446,287 | |||
Kobe Steel Ltd.a | 6,244,000 | 11,382,749 | |||
Nippon Steel Corp. | 12,488,000 | 46,655,219 | |||
Nisshin Steel Co. Ltd. | 1,784,000 | 3,292,365 | |||
Sumitomo Metal Industries Ltd. | 8,028,000 | 22,133,123 | |||
Tokyo Steel Manufacturing | 268,200 | 2,966,754 |
Security | Shares | Value | |||
Yamato Kogyo Co. Ltd. | 89,200 | $ | 2,817,582 | ||
139,207,273 | |||||
LEISURE TIME – 0.62% | |||||
Namco Bandai Holdings Inc. | 446,098 | 4,136,440 | |||
Sankyo Co. Ltd. | 178,400 | 8,612,344 | |||
Sega Sammy Holdings Inc. | 446,000 | 5,505,677 | |||
Shimano Inc. | 178,400 | 7,769,178 | |||
Yamaha Motor Co. Ltd.a | 535,200 | 7,112,713 | |||
33,136,352 | |||||
MACHINERY – 0.30% | |||||
Hitachi Construction | 270,600 | 5,538,979 | |||
Japan Steel Works Ltd. (The) | 892,000 | 10,208,339 | |||
15,747,318 | |||||
MACHINERY – CONSTRUCTION & MINING – 0.87% | |||||
Komatsu Ltd. | 2,319,200 | 46,558,857 | |||
46,558,857 | |||||
MACHINERY – DIVERSIFIED – 0.74% | |||||
Amada Co. Ltd. | 892,000 | 6,685,106 | |||
Kubota Corp. | 2,676,000 | 23,548,438 | |||
Sumitomo Heavy Industries Ltd.a | 1,784,000 | 9,234,682 | |||
39,468,226 | |||||
MANUFACTURING – 2.35% | |||||
FUJIFILM Holdings Corp. | 1,159,600 | 36,876,494 | |||
IHI Corp.a | 2,676,000 | 4,787,982 | |||
Kawasaki Heavy Industries Ltd. | 3,568,000 | 9,234,682 | |||
Konica Minolta Holdings Inc. | 1,338,000 | 13,836,966 | |||
Mitsubishi Heavy Industries Ltd. | 7,136,000 | 26,499,522 | |||
Nikon Corp. | 802,800 | 17,661,329 | |||
Olympus Corp. | 535,200 | 16,526,065 | |||
125,423,040 | |||||
MEDIA – 0.14% | |||||
Fuji Media Holdings Inc. | 853 | 1,183,536 | |||
Jupiter Telecommunications | 5,352 | 6,275,568 | |||
7,459,104 | |||||
METAL FABRICATE & HARDWARE – 0.22% | |||||
Maruichi Steel Tube Ltd. | 89,200 | 1,767,639 | |||
NSK Ltd. | 892,000 | 6,283,599 | |||
NTN Corp. | 892,000 | 3,703,911 | |||
11,755,149 |
6 | 2010 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI JAPAN INDEX FUND
February 28, 2010
Security | Shares | Value | |||
MINING – 0.71% | |||||
Dowa Holdings Co. Ltd. | 924,200 | $ | 5,220,823 | ||
Mitsubishi Materials Corp.a | 2,676,000 | 6,926,011 | |||
Mitsui Mining & Smelting | 1,784,000 | 4,898,397 | |||
Sumitomo Metal Mining Co. Ltd. | 1,466,000 | 20,819,130 | |||
37,864,361 | |||||
OFFICE & BUSINESS EQUIPMENT – 2.60% | |||||
Canon Inc. | 2,586,850 | 107,561,028 | |||
Ricoh Co. Ltd. | 1,784,000 | 24,752,963 | |||
Seiko Epson Corp. | 356,800 | 6,038,679 | |||
138,352,670 | |||||
OIL & GAS – 1.19% | |||||
Cosmo Oil Co. Ltd. | 1,784,000 | 4,235,908 | |||
Idemitsu Kosan Co. Ltd. | 89,200 | 6,544,579 | |||
INPEX Corp. | 1,784 | 13,049,007 | |||
Japan Petroleum Exploration | 89,200 | 4,266,022 | |||
Nippon Mining Holdings Inc. | 2,230,000 | 11,116,750 | |||
Nippon Oil Corp. | 2,676,500 | 14,336,510 | |||
Showa Shell Sekiyu K.K. | 356,800 | 2,525,485 | |||
TonenGeneral Sekiyu K.K. | 892,000 | 7,277,331 | |||
63,351,592 | |||||
PACKAGING & CONTAINERS – 0.11% | |||||
Toyo Seikan Kaisha Ltd. | 356,800 | 5,829,895 | |||
5,829,895 | |||||
PHARMACEUTICALS – 5.06% | |||||
Alfresa Holdings Corp. | 89,200 | 3,688,854 | |||
Astellas Pharma Inc. | 1,159,630 | 43,650,057 | |||
Chugai Pharmaceutical Co. Ltd. | 535,200 | 10,328,791 | |||
Daiichi Sankyo Co. Ltd. | 1,605,669 | 32,487,401 | |||
Dainippon Sumitomo Pharma | 356,800 | 3,493,119 | |||
Eisai Co. Ltd. | 624,400 | 24,346,435 | |||
Hisamitsu Pharmaceutical | 89,200 | 3,257,233 | |||
Kyowa Hakko Kirin Co. Ltd. | 892,000 | 9,244,720 | |||
Medipal Holdings Corp. | 356,800 | 4,219,848 | |||
Mitsubishi Tanabe Pharma Corp. | 892,000 | 13,159,421 | |||
Ono Pharmaceutical Co. Ltd. | 178,400 | 8,230,912 | |||
Santen Pharmaceutical Co. Ltd. | 178,400 | 5,731,525 |
Security | Shares | Value | |||
Shionogi & Co. Ltd. | 713,600 | $ | 14,574,737 | ||
Suzuken Co. Ltd. | 178,400 | 5,902,166 | |||
Takeda Pharmaceutical Co. Ltd. | 1,873,200 | 84,843,639 | |||
Tsumura & Co. | 90,000 | 2,763,855 | |||
269,922,713 | |||||
REAL ESTATE – 2.20% | |||||
AEON Mall Co. Ltd. | 267,600 | 4,878,321 | |||
Daito Trust Construction | 178,400 | 8,722,759 | |||
Mitsubishi Estate Co. Ltd. | 2,676,000 | 42,007,765 | |||
Mitsui Fudosan Co. Ltd. | 1,890,000 | 31,902,324 | |||
Nomura Real Estate | 267,600 | 3,999,019 | |||
NTT Urban Development Corp. | 4,460 | 3,553,345 | |||
Sumitomo Realty & | 892,000 | 15,839,487 | |||
Tokyo Tatemono Co. Ltd. | 892,000 | 3,141,799 | |||
Tokyu Land Corp. | 892,000 | 3,222,101 | |||
117,266,920 | |||||
REAL ESTATE INVESTMENT TRUSTS – 0.54% | |||||
Japan Prime Realty | 1,784 | 3,930,762 | |||
Japan Real Estate | 892 | 7,698,914 | |||
Japan Retail Fund | 3,568 | 4,231,893 | |||
Nippon Building Fund Inc. | 892 | 7,899,668 | |||
Nomura Real Estate Office | 892 | 5,229,641 | |||
28,990,878 | |||||
RETAIL – 2.99% | |||||
ABC-Mart Inc. | 89,200 | 2,946,064 | |||
AEON Co. Ltd. | 1,516,400 | 15,596,574 | |||
Citizen Holdings Co. Ltd. | 624,400 | 3,983,962 | |||
FamilyMart Co. Ltd. | 178,400 | 5,715,465 | |||
Fast Retailing Co. Ltd. | 89,200 | 15,056,547 | |||
Isetan Mitsukoshi | 892,060 | 9,405,955 | |||
J. Front Retailing Co. Ltd. | 892,000 | 4,958,623 | |||
Lawson Inc. | 178,400 | 7,799,291 | |||
Marui Group Co. Ltd. | 535,200 | 3,637,662 |
SCHEDULEOF INVESTMENTS | 7 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI JAPAN INDEX FUND
February 28, 2010
Security | Shares | Value | |||
McDonald’s Holdings Co. | 178,400 | $ | 3,619,594 | ||
Nitori Co. Ltd. | 89,200 | 7,146,841 | |||
Seven & I Holdings Co. Ltd. | 1,873,280 | 42,244,451 | |||
Shimamura Co. Ltd. | 89,200 | 7,769,178 | |||
Takashimaya Co. Ltd. | 892,000 | 6,885,860 | |||
UNY Co. Ltd. | 446,000 | 3,498,138 | |||
USS Co. Ltd. | 62,440 | 4,047,200 | |||
Yamada Denki Co. Ltd. | 214,080 | 14,936,094 | |||
159,247,499 | |||||
SEMICONDUCTORS – 1.15% | |||||
Elpida Memory Inc.a | 446,000 | 7,974,951 | |||
Rohm Co. Ltd. | 268,000 | 18,305,970 | |||
Shinko Electric Industries | 178,400 | 2,585,711 | |||
Sumco Corp.a | 267,600 | 4,851,219 | |||
Tokyo Electron Ltd. | 446,052 | 27,556,692 | |||
61,274,543 | |||||
SHIPBUILDING – 0.08% | |||||
Mitsui Engineering & Shipbuilding Co. Ltd. | 1,784,000 | 4,215,833 | |||
4,215,833 | |||||
SOFTWARE – 0.25% | |||||
Konami Corp. | 178,400 | 3,344,561 | |||
Nomura Research Institute Ltd. | 178,400 | 3,912,695 | |||
Oracle Corp. (Japan) | 89,200 | 4,130,513 | |||
Square Enix Holdings Co. Ltd. | 89,200 | 1,791,729 | |||
13,179,498 | |||||
STORAGE & WAREHOUSING – 0.07% | |||||
Mitsubishi Logistics Corp. | 319,000 | 3,693,816 | |||
3,693,816 | |||||
TELECOMMUNICATIONS – 2.98% | |||||
KDDI Corp. | 7,136 | 38,062,949 | |||
Nippon Telegraph and | 1,248,800 | 54,384,246 | |||
NTT Data Corp. | 2,676 | 8,308,202 | |||
NTT DoCoMo Inc. | 37,464 | 57,925,545 | |||
158,680,942 |
Security | Shares | Value | |||
TEXTILES – 0.80% | |||||
Kuraray Co. Ltd. | 892,000 | $ | 11,442,976 | ||
Mitsubishi Rayon Co. Ltd. | 892,000 | 3,784,212 | |||
Teijin Ltd. | 2,676,000 | 7,859,517 | |||
Toray Industries Inc. | 3,568,000 | 19,673,888 | |||
42,760,593 | |||||
TOYS, GAMES & HOBBIES – 1.37% | |||||
Nintendo Co. Ltd. | 267,600 | 72,783,346 | |||
72,783,346 | |||||
TRANSPORTATION – 4.32% | |||||
Central Japan Railway Co. | 3,568 | 27,021,482 | |||
East Japan Railway Co. | 802,800 | 55,287,639 | |||
Hankyu Hanshin Holdings Inc. | 2,681,800 | 12,886,160 | |||
Kawasaki Kisen Kaisha Ltd.a,b | 1,784,000 | 6,464,277 | |||
Keihin Electric Express Railway | 896,000 | 7,340,212 | |||
Keio Corp. | 1,784,000 | 11,924,785 | |||
Kintetsu Corp.b | 4,464,000 | 14,115,614 | |||
Mitsui O.S.K. Lines Ltd. | 2,676,000 | 17,254,802 | |||
Nippon Express Co. Ltd. | 1,784,000 | 7,347,595 | |||
Nippon Yusen K.K. | 3,568,000 | 12,928,555 | |||
Odakyu Electric Railway Co. Ltd. | 892,000 | 7,578,462 | |||
Tobu Railway Co. Ltd. | 1,784,000 | 9,796,793 | |||
Tokyu Corp. | 2,676,000 | 11,352,636 | |||
West Japan Railway Co. | 4,460 | 15,683,902 | |||
Yamato Holdings Co. Ltd. | 981,200 | 13,073,097 | |||
230,056,011 | |||||
VENTURE CAPITAL – 0.04% | |||||
JAFCO Co. Ltd. | 89,200 | 2,097,879 | |||
2,097,879 | |||||
TOTAL COMMON STOCKS | 5,326,031,090 |
8 | 2010 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI JAPAN INDEX FUND
February 28, 2010
Security | Shares | Value | ||||
SHORT-TERM INVESTMENTS – 0.78% |
| |||||
MONEY MARKET FUNDS – 0.78% | ||||||
BlackRock Cash Funds: | 34,583,270 | $ | 34,583,270 | |||
BlackRock Cash Funds: | 5,557,902 | 5,557,902 | ||||
BlackRock Cash Funds: | 1,250,242 | 1,250,242 | ||||
41,391,414 | ||||||
TOTAL SHORT-TERM INVESTMENTS |
| |||||
(Cost: $41,391,414) | 41,391,414 | |||||
TOTAL INVESTMENTS IN |
| |||||
(Cost: $6,753,002,153) | 5,367,422,504 | |||||
Other Assets, Less Liabilities – (0.69)% | (36,557,341 | ) | ||||
NET ASSETS – 100.00% | $ | 5,330,865,163 | ||||
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.
SCHEDULEOF INVESTMENTS | 9 |
Table of Contents
Statement of Assets and Liabilities (Unaudited)
iSHARES®, INC.
February 28, 2010
iShares MSCI Japan Index Fund | ||||
ASSETS | ||||
Investments, at cost: | ||||
Unaffiliated issuers | $ | 6,711,610,739 | ||
Affiliated issuers (Note 2) | 41,391,414 | |||
Total cost of investments | $ | 6,753,002,153 | ||
Investments in securities, at fair value (including securities on loana) (Note 1): | ||||
Unaffiliated issuers | $ | 5,326,031,090 | ||
Affiliated issuers (Note 2) | 41,391,414 | |||
Total fair value of investments | 5,367,422,504 | |||
Foreign currency, at valueb | 777,792 | |||
Receivables: | ||||
Dividends and interest | 5,006,993 | |||
Total Assets | 5,373,207,289 | |||
LIABILITIES | ||||
Payables: | ||||
Collateral for securities on loan (Note 5) | 40,141,172 | |||
Capital shares redeemed | 59,582 | |||
Investment advisory fees (Note 2) | 2,141,372 | |||
Total Liabilities | 42,342,126 | |||
NET ASSETS | $ | 5,330,865,163 | ||
Net assets consist of: | ||||
Paid-in capital | $ | 7,257,902,587 | ||
Distributions in excess of net investment income | (6,283,592 | ) | ||
Accumulated net realized loss | (535,309,226 | ) | ||
Net unrealized depreciation on investments and translation of assets and liabilities in foreign currencies | (1,385,444,606 | ) | ||
NET ASSETS | $ | 5,330,865,163 | ||
Shares outstandingc | 535,200,000 | |||
Net asset value per share | $ | 9.96 | ||
a | Securities on loan with a value of $37,959,298. See Note 5. |
b | Cost of foreign currency: $774,962. |
c | $0.001 par value, number of shares authorized: 2,124,600,000. |
See notes to financial statements.
10 | 2010 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
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Statement of Operations (Unaudited)
iSHARES®, INC.
Six months ended February 28, 2010
iShares MSCI Japan Index Fund | ||||
NET INVESTMENT INCOME | ||||
Dividends from unaffiliated issuersa | $ | 38,459,970 | ||
Interest from affiliated issuers (Note 2) | 688 | |||
Securities lending income from affiliated issuers (Note 2) | 364,045 | |||
Total investment income | 38,824,703 | |||
EXPENSES | ||||
Investment advisory fees (Note 2) | 13,740,755 | |||
Total expenses | 13,740,755 | |||
Net investment income | 25,083,948 | |||
NET REALIZED AND UNREALIZED GAIN (LOSS) | ||||
Net realized gain (loss) from: | ||||
Investments in unaffiliated issuers | (130,940,250 | ) | ||
In-kind redemptions | 180,435,765 | |||
Foreign currency transactions | 1,032,302 | |||
Net realized gain | 50,527,817 | |||
Net change in unrealized appreciation (depreciation) on: | ||||
Investments | (195,559,577 | ) | ||
Translation of assets and liabilities in foreign currencies | (28,073 | ) | ||
Net change in unrealized appreciation (depreciation) | (195,587,650 | ) | ||
Net realized and unrealized loss | (145,059,833 | ) | ||
NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS | $ | (119,975,885 | ) | |
a | Net of foreign withholding tax of $2,892,615. |
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, 2010 (Unaudited) | Year ended August 31, 2009 | |||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||
OPERATIONS: | ||||||||
Net investment income | $ | 25,083,948 | $ | 78,031,066 | ||||
Net realized gain (loss) | 50,527,817 | (471,304,985 | ) | |||||
Net change in unrealized appreciation (depreciation) | (195,587,650 | ) | (579,533,927 | ) | ||||
Net decrease in net assets resulting from operations | (119,975,885 | ) | (972,807,846 | ) | ||||
DISTRIBUTIONS TO SHAREHOLDERS: | ||||||||
From net investment income | (42,652,704 | ) | (73,264,843 | ) | ||||
Total distributions to shareholders | (42,652,704 | ) | (73,264,843 | ) | ||||
CAPITAL SHARE TRANSACTIONS: | ||||||||
Proceeds from shares sold | 1,116,677,510 | 2,197,765,511 | ||||||
Cost of shares redeemed | (1,787,353,999 | ) | (2,487,058,899 | ) | ||||
Net decrease in net assets from capital share transactions | (670,676,489 | ) | (289,293,388 | ) | ||||
DECREASE IN NET ASSETS | (833,305,078 | ) | (1,335,366,077 | ) | ||||
NET ASSETS | ||||||||
Beginning of period | 6,164,170,241 | 7,499,536,318 | ||||||
End of period | $ | 5,330,865,163 | $ | 6,164,170,241 | ||||
Undistributed (distributions in excess of) net investment income included in net assets at end of period | $ | (6,283,592 | ) | $ | 11,285,164 | |||
SHARES ISSUED AND REDEEMED | ||||||||
Shares sold | 111,600,000 | 239,400,000 | ||||||
Shares redeemed | (178,200,000 | ) | (283,200,000 | ) | ||||
Net decrease in shares outstanding | (66,600,000 | ) | (43,800,000 | ) | ||||
See notes to financial statements.
12 | 2010 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
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iSHARES®, INC.
(For a share outstanding throughout each period)
iShares MSCI Japan Index Fund | ||||||||||||||||||||||||
Six months Feb. 28, 2010 | Year ended Aug. 31, 2009 | Year ended Aug. 31, 2008 | Year ended Aug. 31, 2007 | Year ended Aug. 31, 2006 | Year ended Aug. 31, 2005 | |||||||||||||||||||
Net asset value, beginning of period | $ | 10.24 | $ | 11.62 | $ | 14.07 | $ | 13.80 | $ | 10.99 | $ | 9.89 | ||||||||||||
Income from investment operations: | ||||||||||||||||||||||||
Net investment incomea | 0.05 | �� | 0.13 | 0.14 | 0.10 | 0.06 | 0.06 | |||||||||||||||||
Net realized and unrealized | (0.24 | ) | (1.39 | ) | (2.39 | ) | 0.27 | 2.81 | 1.08 | |||||||||||||||
Total from investment operations | (0.19 | ) | (1.26 | ) | (2.25 | ) | 0.37 | 2.87 | 1.14 | |||||||||||||||
Less distributions from: | ||||||||||||||||||||||||
Net investment income | (0.09 | ) | (0.12 | ) | (0.20 | ) | (0.10 | ) | (0.06 | ) | (0.04 | ) | ||||||||||||
Total distributions | (0.09 | ) | (0.12 | ) | (0.20 | ) | (0.10 | ) | (0.06 | ) | (0.04 | ) | ||||||||||||
Net asset value, end of period | $ | 9.96 | $ | 10.24 | $ | 11.62 | $ | 14.07 | $ | 13.80 | $ | 10.99 | ||||||||||||
Total return | (1.86 | )%b | (10.68 | )% | (16.13 | )% | 2.68 | % | 26.10 | % | 11.58 | % | ||||||||||||
Ratios/Supplemental data: | ||||||||||||||||||||||||
Net assets, end of period (000s) | $ | 5,330,865 | $ | 6,164,170 | $ | 7,499,536 | $ | 11,780,006 | $ | 13,724,590 | $ | 7,248,107 | ||||||||||||
Ratio of expenses to average | 0.54 | % | 0.56 | % | 0.52 | % | 0.52 | % | 0.54 | % | 0.57 | % | ||||||||||||
Ratio of net investment income to average net assetsc | 0.98 | % | 1.46 | % | 1.11 | % | 0.68 | % | 0.48 | % | 0.59 | % | ||||||||||||
Portfolio turnover rated | 3 | % | 4 | % | 4 | % | 3 | % | 8 | % | 6 | % |
a | Based on average shares outstanding throughout each period. |
b | Not annualized. |
c | Annualized for periods of less than one year. |
d | Portfolio turnover rates exclude portfolio securities received or delivered as a result of processing capital share transactions in Creation Units. |
See notes to financial statements.
FINANCIAL HIGHLIGHTS | 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. 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 non-U.S. issuers of a single country. This 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”) using 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 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 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”); |
14 | 2010 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
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Notes to Financial Statements (Unaudited) (Continued)
iSHARES®, INC.
• | 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”). |
The availability of observable inputs can vary from security to security and is affected by a wide variety of factors, including, for example, the type of security, whether the security is new and not yet established in the marketplace, the liquidity of markets, and other characteristics particular to the security. Inputs may include price information, volatility statistics, specific and broad credit data, liquidity statistics, and other factors. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3 of the fair value hierarchy.
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. 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. 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 inputs such as quoted market prices, dealer quotations or valuations provided by alternative pricing sources supported by observable inputs are classified within Level 2. These generally include 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 Level 2 investments 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, recent transactions in the same or similar instruments, 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 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.
NOTESTO FINANCIAL STATEMENTS | 15 |
Table of Contents
Notes to Financial Statements (Unaudited) (Continued)
iSHARES®, INC.
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, 2010, the value of each of the Fund’s investments was classified as a Level 1 Price. The breakdown of the Fund’s investments into major categories is disclosed in the Schedule of Investments.
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. Non-cash dividends received in the form of stock in an elective dividend, if any, are recorded as dividend income at fair value. Distributions received by the Fund may include a return of capital that is estimated by management. Such amounts are recorded as a reduction of the cost of investments or reclassified to capital gains. 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. 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, 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, 2010.
16 | 2010 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Notes to Financial Statements (Unaudited) (Continued)
iSHARES®, INC.
As of August 31, 2009, the tax year-end of the Fund, the Fund had tax basis net capital loss carryforwards of $62,572,173, $3,621,148, $5,594,562, $8,733,802, $68,122,871, $27,817,841, $44,443,527 and $116,295,478 expiring in 2010, 2011, 2012, 2013, 2014, 2015, 2016 and 2017, 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, 2010, the cost of investments for federal income tax purposes was $6,830,414,820. Net unrealized depreciation was $1,462,992,316, of which $47,843,115 represented gross unrealized appreciation on securities and $1,510,835,431 represented gross unrealized depreciation on securities.
Management has reviewed the tax positions as of February 28, 2010, 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. INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES
On December 1, 2009, Barclays PLC (“Barclays”) completed the sale of its interest in BlackRock Institutional Trust Company, N.A. (“BTC”), formerly known as Barclays Global Investors, N.A., and certain affiliated companies to BlackRock, Inc. (“BlackRock”, and such sale, the “Transaction”). BTC is a wholly-owned subsidiary of BlackRock.
The PNC Financial Services Group, Inc. (“PNC”), Bank of America Corporation (“BAC”) and Barclays are the largest stockholders of BlackRock. Due to the ownership structure, PNC is an affiliate for 1940 Act purposes, but BAC and Barclays are not.
Under the 1940 Act, upon completion of the Transaction on December 1, 2009, the Fund’s investment advisory agreement with BlackRock Fund Advisors (“BFA”), formerly known as Barclays Global Fund Advisors, was automatically terminated. The Board and shareholders of the Fund approved a new investment advisory agreement with BFA. The investment advisory fee rates and expense arrangements for the Fund remained the same after the Transaction.
Pursuant to an Investment Advisory Agreement with the Company, BFA manages the investment of the Fund’s assets. BFA is a California corporation indirectly owned by BlackRock. Under the Investment Advisory Agreement, BFA is responsible for all expenses (“Covered Expenses”) of the Company, including the cost of transfer agency, custody, fund administration, legal, audit and other services, except interest, taxes, brokerage commissions and other expenses connected with the execution of portfolio transactions, distribution fees and extraordinary expenses.
NOTESTO FINANCIAL STATEMENTS | 17 |
Table of Contents
Notes to Financial Statements (Unaudited) (Continued)
iSHARES®, INC.
For its investment advisory services to the Fund, BFA 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 |
The U.S. Securities and Exchange Commission has issued an exemptive order which permits BTC to serve as securities lending agent for the Fund, subject to applicable conditions. BTC is an affiliate of BFA, the Fund’s investment adviser. As securities lending agent, BTC 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, 2010, BTC earned securities lending agent fees of $267,314.
The Fund may invest its positive cash balances in certain money market funds managed by BFA or an affiliate. The income earned on these temporary cash investments is included in interest from affiliated issuers in the Statement of Operations.
Certain directors and officers of the Company are also officers of BTC and/or BFA.
3. INVESTMENT PORTFOLIO TRANSACTIONS
Purchases and sales of investments (excluding in-kind transactions and short-term investments) for the six months ended February 28, 2010 aggregated $149,289,658 and $171,957,454, respectively.
In-kind purchases and sales (see Note 4) for the six months ended February 28, 2010 aggregated $1,105,611,385 and $1,767,688,077, 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 an optimized representation of the securities involved in the Fund’s underlying 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 Bank and Trust Company, 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
18 | 2010 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Notes to Financial Statements (Unaudited) (Continued)
iSHARES®, INC.
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 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 BFA; such reinvestments are subject to investment risk.
As of February 28, 2010, the Fund had loaned securities which were collateralized by cash. The cash collateral received was invested in money market funds managed by BFA. The market value of the securities on loan as of February 28, 2010 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 BTC as securities lending agent.
6. SUBSEQUENT EVENTS
Management has evaluated the impact of all subsequent events on the Fund through the date the financial statements were available to be issued and has determined that there were no subsequent events requiring adjustment or disclosure in the financial statements.
NOTESTO FINANCIAL STATEMENTS | 19 |
Table of Contents
Shareholder Meeting Results (Unaudited)
iSHARES®, INC.
Two separate special meetings of shareholders of iShares, Inc. were held on November 4, 2009. The proposals acted upon by shareholders at the special meetings and the results of the shareholder vote were as follows:
First Meeting
Shareholders of the Fund approved Proposals 1 and 2.
Proposal 1
To approve a new investment advisory agreement between the Company and Barclays Global Fund Advisors (“BGFA”), on behalf of the Fund, which took effect upon the consummation of the Barclays PLC binding agreement to sell its interest in BGFA and certain affiliated companies to BlackRock, Inc. (the “Transaction”).
Votes For | Votes Against | Votes Abstaining | ||
291,146,005 | 3,042,230 | 6,219,659 |
Proposal 2
To approve a change in the classification of the Fund’s investment objective from a fundamental investment policy to a non-fundamental investment policy.
Votes For | Votes Against | Votes Abstaining | ||
286,979,917 | 6,149,939 | 7,278,038 |
Second Meeting
This proposal was approved by the shareholders of the Company on November 4, 2009. All nominees who previously served as Directors of the Company were re-elected and the term of their election commenced immediately. Robert S. Kapito was newly elected as a Director to the Company and the term of his election took effect upon the consummation of the Transaction.
Proposal 1*
To elect a Board of Directors of the Company.
Independent Director | Votes For | Votes Withheld | ||
George G.C. Parker | 1,597,646,058 | 46,083,560 | ||
J. Darrell Duffie | 1,517,311,684 | 126,417,934 | ||
Cecilia H. Herbert | 1,599,757,544 | 43,972,074 | ||
Charles A. Hurty | 1,599,463,459 | 44,266,159 | ||
John E. Kerrigan | 1,599,938,757 | 43,790,861 | ||
John E. Martinez | 1,599,890,206 | 43,839,412 | ||
Robert H. Silver | 1,601,631,280 | 42,098,338 | ||
Interested Director | Votes For | Votes Withheld | ||
Robert S. Kapito | 1,600,119,598 | 43,610,020 | ||
Lee T. Kranefuss | 1,117,041,744 | 526,687,874 |
* | Denotes Company-wide proposal and voting results. |
20 | 2010 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
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Notes:
NOTES | 21 |
Table of Contents
Notes:
22 | 2010 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
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Notes:
NOTES | 23 |
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 Russell Domestic Index Funds | Trading Symbol | |
iShares Russell 3000 | IWV | |
iShares Russell 3000 Growth | IWZ | |
iShares Russell 3000 Value | IWW | |
iShares Russell Top 200 | IWL | |
iShares Russell Top 200 Growth | IWY | |
iShares Russell Top 200 Value | IWX | |
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 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 Morningstar Domestic 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 Dow Jones Domestic Index Funds | ||
iShares Dow Jones U.S. | IYY | |
iShares KLD Socially Responsible Index Funds | ||
iShares FTSE KLD 400 Social | DSI | |
iShares FTSE KLD Select Social | KLD | |
iShares NYSE Domestic Index Funds | ||
iShares NYSE Composite | NYC | |
iShares NYSE 100 | NY |
iShares Domestic Specialty Index Funds | Trading Symbol | |
iShares S&P U.S. Preferred Stock | PFF | |
iShares Dow Jones Select Dividend | DVY | |
iShares North American Sector/Subsector Index Funds | ||
iShares S&P North American Technology Sector | IGM | |
iShares S&P North American | IGN | |
iShares S&P North American Technology-Semiconductors | IGW | |
iShares S&P North American Technology-Software | IGV | |
iShares S&P North American Natural Resources Sector | IGE | |
iShares Domestic Sector Index Funds | ||
iShares Dow Jones U.S. Basic Materials Sector | IYM | |
iShares Dow Jones U.S. Consumer Goods Sector | IYK | |
iShares Dow Jones U.S. Consumer Services Sector | IYC | |
iShares Dow Jones U.S. Energy Sector | IYE | |
iShares Dow Jones U.S. Financial Sector | IYF | |
iShares Dow Jones U.S. Healthcare Sector | IYH | |
iShares Dow Jones U.S. Industrial Sector | IYJ | |
iShares Dow Jones U.S. Technology Sector | IYW | |
iShares Dow Jones U.S. Telecommunications Sector | IYZ | |
iShares Dow Jones U.S. Utilities Sector | IDU | |
iShares Domestic Subsector Index Funds | ||
iShares Dow Jones Transportation Average | IYT | |
iShares Dow Jones U.S. Aerospace & Defense | ITA | |
iShares Dow Jones U.S. Broker-Dealers | IAI | |
iShares Dow Jones U.S. Financial Services | IYG | |
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 Nasdaq Biotechnology | IBB | |
iShares Domestic Real Estate Index Funds | ||
iShares Cohen & Steers Realty Majors | ICF | |
iShares Dow Jones U.S. Real Estate | IYR | |
iShares FTSE NAREIT Real Estate 50 | FTY | |
iShares FTSE NAREIT Industrial/Office Capped | FIO | |
iShares FTSE NAREIT Mortgage Plus Capped | REM | |
iShares FTSE NAREIT Residential Plus Capped | REZ | |
iShares FTSE NAREIT Retail Capped | RTL | |
iShares Target Risk Index Funds | ||
iShares S&P Conservative Allocation | AOK | |
iShares S&P Moderate Allocation | AOM | |
iShares S&P Growth Allocation | AOR | |
iShares S&P Aggressive Allocation | AOA |
24 | 2010 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
The iShares® Family of Funds (Continued)
iShares International Country Index Funds | Trading Symbol | |
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 S&P/TOPIX 150 | ITF | |
iShares MSCI Malaysia | EWM | |
iShares MSCI Mexico Investable Market | EWW | |
iShares MSCI Netherlands Investable Market | EWN | |
iShares MSCI All Peru Capped | EPU | |
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 India Nifty 50 | INDY | |
iShares International Index Funds | ||
iShares MSCI ACWI ex US | ACWX | |
iShares MSCI EAFE | EFA | |
iShares MSCI EAFE Growth | EFG | |
iShares MSCI EAFE Value | EFV | |
iShares MSCI EAFE Small Cap | SCZ | |
iShares FTSE Developed Small Cap ex-North America | IFSM | |
iShares MSCI Emerging Markets | EEM | |
iShares MSCI Emerging Markets Eastern Europe | ESR | |
iShares MSCI BRIC | BKF | |
iShares MSCI EMU | EZU | |
iShares MSCI All Country Asia ex Japan | AAXJ | |
iShares MSCI Pacific ex-Japan | EPP | |
iShares S&P Asia 50 | AIA | |
iShares S&P Europe 350 | IEV | |
iShares S&P Latin America 40 | ILF | |
iShares International/Global Real Estate Index Funds | ||
iShares S&P Developed ex-U.S. Property | WPS | |
iShares FTSE EPRA/NAREIT Developed Real Estate ex-U.S. | IFGL | |
iShares FTSE EPRA/NAREIT Developed Asia | IFAS | |
iShares FTSE EPRA/NAREIT Developed Europe | IFEU | |
iShares FTSE EPRA/NAREIT North America | IFNA |
iShares Target Date Index Funds | Trading Symbol | |
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 Global Index Funds | ||
iShares MSCI ACWI | ACWI | |
iShares S&P Global 100 | IOO | |
iShares MSCI Kokusai | TOK | |
iShares International/Global Sector Index Funds | ||
iShares MSCI ACWI ex US Financials Sector | AXFN | |
iShares MSCI Emerging Markets Financials Sector | EMFN | |
iShares MSCI Emerging Markets Materials Sector | EMMT | |
iShares MSCI Europe Financials Sector | EUFN | |
iShares MSCI Far East Financials Sector | FEFN | |
iShares S&P Global Consumer Discretionary Sector | RXI | |
iShares S&P Global Consumer Staples Sector | KXI | |
iShares S&P Global Energy Sector | IXC | |
iShares S&P Global Financials Sector | IXG | |
iShares S&P Global Healthcare Sector | IXJ | |
iShares S&P Global Industrials Sector | EXI | |
iShares S&P Global Materials Sector | MXI | |
iShares S&P Global Technology Sector | IXN | |
iShares S&P Global Telecommunications Sector | IXP | |
iShares S&P Global Utilities Sector | JXI | |
iShares International/Global Theme Based and Specialty Index Funds | ||
iShares S&P Global Clean Energy | ICLN | |
iShares S&P Global Infrastructure | IGF | |
iShares S&P Emerging Markets Infrastructure | EMIF | |
iShares S&P Global Nuclear Energy | NUCL | |
iShares S&P Global Timber & Forestry | WOOD | |
iShares Dow Jones International Select Dividend | IDV | |
iShares U.S. Multisector Bond Funds | ||
iShares Barclays Aggregate | AGG | |
iShares Barclays Government/Credit | GBF | |
iShares Barclays Intermediate Government/Credit | GVI | |
iShares 10+ Year Government/Credit | GLJ | |
iShares U.S. Government Bond Funds | ||
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 U.S. Credit Bond Funds | ||
iShares Barclays Credit | CFT | |
iShares Barclays 1-3 Year Credit | CSJ | |
iShares Barclays Intermediate Credit | CIU | |
iShares iBoxx $ Investment Grade Corporate | LQD | |
iShares 10+ Year Credit | CLY | |
iShares iBoxx $ High Yield Corporate | HYG |
iSHARES FAMILYOF FUNDS | 25 |
Table of Contents
The iShares® Family of Funds (Continued)
iShares AMT-Free Municipal Bond Funds | Trading Symbol | |
iShares S&P National AMT-Free Municipal | MUB | |
iShares S&P Short Term National AMT-Free Municipal | SUB | |
iShares S&P California AMT-Free Municipal | CMF | |
iShares S&P New York AMT-Free Municipal | NYF | |
iShares 2012 S&P AMT-Free Municipal Series | MUAA | |
iShares 2013 S&P AMT-Free Municipal Series | MUAB | |
iShares 2014 S&P AMT-Free Municipal Series | MUAC | |
iShares 2015 S&P AMT-Free Municipal Series | MUAD | |
iShares 2016 S&P AMT-Free Municipal Series | MUAE | |
iShares 2017 S&P AMT-Free Municipal Series | MUAF |
iShares U.S. Securitized Bond Funds | Trading Symbol | |
iShares Barclays MBS | MBB | |
iShares International Bond Funds | ||
iShares JPMorgan USD Emerging Markets | EMB | |
iShares S&P/Citigroup International Treasury | IGOV | |
iShares S&P/Citigroup 1-3 Year International Treasury | ISHG |
The iShares Funds (“Funds”) are distributed by SEI Investments Distribution Co. (“SEI”). iShares® is a registered trademark of BlackRock Institutional Trust Company, N.A. The 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., MSCI Inc., Morningstar Inc., The NASDAQ OMX Group, 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, endorsed or issued by Barclays Capital. None of these companies make any representation regarding the advisability of investing in the iShares Funds. Neither SEI, nor BlackRock Institutional Trust Company, N.A., nor any of their affiliates, are affiliated with the companies listed above. FXI does not make any warranty regarding the FTSE/Xinhua Index. All rights in the FTSE/Xinhua Index vest in FXI. Neither FTSE nor NAREIT makes any warranty regarding the FTSE NAREIT Real Estate 50/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.
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 2010 Semi-Annual Report.
iS-2350-0310
26 | 2010 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Dear iShares Shareholder:
Electronic delivery is the easiest, most convenient way to receive reporting on your iShares holdings. In addition, it’s a way we can all care for our environment. To that end, we are pleased to offer shareholder reports and prospectuses online.
Once you have enrolled, you will no longer receive shareholder reports and prospectuses 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 and is available to be viewed or downloaded.
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 notifications sent.
Your information and e-mail 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.
Table of Contents
For more information:
WWW.iSHARES.COM
1-800-iShares (1-800-474-2737)
IS-SAR-81-0210
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.
Investing involves risk, including possible loss of principal.
The iShares Funds are distributed by SEI Investments Distribution Co. (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 BlackRock Institutional Trust Company, N.A., nor any of their affiliates, are affiliated with the company listed above.
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 ending 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 on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330. The Fund also discloses its complete schedule of portfolio holdings on a monthly basis on the Fund’s website.
©2010 BlackRock Institutional Trust Company, N.A. All rights reserved. iShares® is a registered trademark of BlackRock Institutional Trust Company, N.A. All other trademarks, servicemarks, or registered trademarks are the property of their respective owners.
Table of Contents
2010 SEMI-ANNUAL REPORT TO SHAREHOLDERS
iSHARES ® MSCI SERIES
FEBRUARY 28, 2010
Would you prefer to receive materials like this electronically
See inside back cover for details.
iShares MSCI Emerging Markets Index Fund | EEM | NYSE Arca
Table of Contents
1 | ||
3 | ||
4 | ||
14 | ||
17 | ||
18 | ||
25 | ||
28 |
Table of Contents
iSHARES® MSCI EMERGING MARKETS INDEX FUND
Performance as of February 28, 2010
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, 2010, the total return for the Fund was 10.78%, while the total return for the Index was 12.19%.
Average Annual Total Returns | ||||||||||||||||
Year Ended 2/28/10 | Five Years Ended 2/28/10 | Inception to 2/28/10 | ||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||
85.15% | 86.22% | 91.63% | 11.53% | 11.49% | 12.32% | 21.43% | 21.41% | 21.53% | ||||||||
Cumulative Total Returns | ||||||||||||||||
Year Ended 2/28/10 | Five Years Ended 2/28/10 | Inception to 2/28/10 | ||||||||||||||
NAV | MARKET | INDEX | NAV | MARKET | INDEX | NAV | MARKET | INDEX | ||||||||
85.15% | 86.22% | 91.63% | 72.54% | 72.29% | 78.77% | 281.69% | 281.24% | 283.80% |
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.
Certain sectors and markets performed exceptionally well based on market conditions during the one-year period. Achieving such exceptional returns involves the risk of volatility and investors should not expect that such exceptional returns will be repeated.
The Fund’s per share net asset value or “NAV” is the value of one share of the Fund as calculated in accordance with the standard formula for valuing mutual fund shares. The NAV return is based on the NAV of the Fund and the market return is based on the market price per share of the Fund. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which shares of the Fund are listed for trading, as of the time that the Fund’s NAV is calculated. Since shares of the Fund did not trade in the secondary market until 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 performance shown in the table(s) above assumes reinvestment of all dividends and capital gain distributions and does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption or sale of fund shares. The investment return and principal value of shares of the Fund will vary with changes in market conditions. Shares of the Fund may be worth more or less than their original cost when they are redeemed or sold in the market. The Fund’s past performance is no guarantee of future results.
FUND PERFORMANCE OVERVIEW | 1 |
Table of Contents
Fund Performance Overview (Continued)
iSHARES® MSCI EMERGING MARKETS INDEX FUND
PORTFOLIO ALLOCATION As of 2/28/10 | |||
Sector/Investment Type | Percentage of Net Assets | ||
Financial | 24.10 | % | |
Energy | 14.65 | ||
Basic Materials | 13.72 | ||
Communications | 11.48 | ||
Technology | 11.02 | ||
Industrial | 7.14 | ||
Consumer Non-Cyclical | 6.20 | ||
Consumer Cyclical | 5.09 | ||
Utilities | 3.76 | ||
Diversified | 2.19 | ||
Exchange-Traded Funds | 0.48 | ||
Short-Term and Other Net Assets | 0.17 | ||
TOTAL | 100.00 | % | |
TEN LARGEST FUND HOLDINGS As of 2/28/10 | |||
Security | Percentage of Net Assets | ||
Samsung Electronics Co. Ltd. SP GDR (South Korea) | 3.16 | % | |
Taiwan Semiconductor Manufacturing Co. Ltd. SP ADR (Taiwan) | 2.42 | ||
Petroleo Brasileiro SA Preferred SP ADR (Brazil) | 2.42 | ||
Itau Unibanco Holding SA SP ADR (Brazil) | 2.17 | ||
Petroleo Brasileiro SA SP ADR (Brazil) | 2.02 | ||
POSCO SP ADR (South Korea) | 1.88 | ||
China Mobile Ltd. (China) | 1.86 | ||
Vale SA Class A Preferred SP ADR (Brazil) | 1.75 | ||
OAO Gazprom SP ADR (Russia) | 1.60 | ||
Banco Bradesco SA Preferred SP ADR (Brazil) | 1.58 | ||
TOTAL | 20.86 | % | |
2 | 2010 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
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, 2009 to February 28, 2010.
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 (9/1/09) | Ending Account Value (2/28/10) | Annualized Expense Ratio | Expenses Paid During Period a (9/1/09 to 2/28/10) | |||||||||
Actual | $ | 1,000.00 | $ | 1,107.80 | 0.68 | % | $ | 3.55 | ||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,021.40 | 0.68 | 3.41 |
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). |
SHAREHOLDER EXPENSES | 3 |
Table of Contents
Schedule of Investments (Unaudited)
iSHARES® MSCI EMERGING MARKETS INDEX FUND
February 28, 2010
Security | Shares | Value | |||
COMMON STOCKS – 91.00% | |||||
BRAZIL – 7.76% | |||||
Banco do Brasil SA | 2,328,500 | $ | 38,319,207 | ||
Banco Santander (Brasil) SA SP ADR | 5,667,019 | 67,777,547 | |||
BM&F Bovespa SA | 6,276,700 | 41,081,331 | |||
Brasil Telecom SA SP ADRa | 859,628 | 9,163,634 | |||
BRF - Brasil Foods SA SP ADRb | 432,405 | 21,321,891 | |||
Centrais Eletricas Brasileiras SA SP ADR | 1,130,393 | 14,695,109 | |||
Companhia de Saneamento Basico do Estado de Sao Paulo SP ADRb | 703,903 | 23,996,053 | |||
Companhia Siderurgica Nacional SA SP ADR | 4,894,615 | 160,004,964 | |||
CPFL Energia SA SP ADRb | 357,465 | 22,323,689 | |||
Empresa Brasileira de Aeronautica SA SP ADRb | 4,383,659 | 96,265,152 | |||
Fibria Celulose SA SP ADRa,b | 4,194,232 | 76,964,157 | |||
Gafisa SA SP ADRb | 1,132,476 | 34,778,338 | |||
Itau Unibanco Holding SA SP ADR | 36,084,098 | 720,238,596 | |||
OGX Petroleo e Gas Participacoes SAa | 6,312,000 | 54,955,224 | |||
PDG Realty SA Empreendimentos e Participacoes | 309,200 | 2,763,828 | |||
Petroleo Brasileiro SA SP ADR | 15,717,777 | 670,363,189 | |||
TAM SA SP ADR | 1,138,085 | 20,952,145 | |||
TIM Participacoes SA SP ADR | 264,884 | 7,520,057 | |||
Vale SA SP ADR | 16,753,102 | 466,741,422 | |||
Vivo Participacoes SA SP ADR | 893,402 | 24,175,458 | |||
2,574,400,991 | |||||
CHILE – 2.31% | |||||
Banco Santander Chile SA SP ADR | 3,267,339 | 209,338,410 | |||
Empresa Nacional de Electricidad SA SP ADR | 13,244 | 660,478 | |||
Enersis SA SP ADR | 9,123,301 | 197,154,535 | |||
LAN Airlines SA SP ADR | 4,415,831 | 78,557,633 |
Security | Shares | Value | |||
Sociedad Quimica y Minera de Chile SA Series B SP ADR | 7,652,732 | $ | 279,707,355 | ||
765,418,411 | |||||
CHINA – 17.58% | |||||
Agile Property Holdings Ltd.b | 41,064,000 | 52,471,534 | |||
Air China Ltd. Class Ha | 46,406,000 | 40,468,177 | |||
Alibaba.com Ltd. | 900,000 | 1,970,799 | |||
Aluminum Corp. of China Ltd. Class Ha,b | 42,850,000 | 41,451,628 | |||
Angang New Steel Co. Ltd. Class Hb | 26,445,320 | 48,711,971 | |||
Anhui Conch Cement Co. Ltd. Class Hb | 3,816,000 | 22,610,857 | |||
Anta Sports Products Ltd.b | 10,476,402 | 15,060,077 | |||
Bank of China Ltd. Class H | 527,344,000 | 256,086,209 | |||
Bank of Communications Co. Ltd. Class Hb | 84,126,000 | 92,542,014 | |||
BBMG Corp. Class Ha | 9,451,000 | 9,252,140 | |||
Beijing Capital International Airport Co. Ltd. Class Ha,b | 28,630,000 | 15,673,324 | |||
Beijing Enterprises Holdings Ltd.b | 7,290,000 | 45,824,547 | |||
Belle International Holdings Ltd. | 28,537,000 | 31,796,203 | |||
BYD Co. Ltd. Class Ha,b | 2,142,000 | 16,582,300 | |||
Chaoda Modern Agriculture (Holdings) Ltd. | 11,383,942 | 12,317,506 | |||
China Agri-Industries Holdings Ltd.b | 26,446,000 | 37,948,623 | |||
China CITIC Bank Class H | 24,981,000 | 16,700,444 | |||
China Coal Energy Co. Class H | 41,152,000 | 65,623,959 | |||
China Communications Construction Co. Ltd. Class Hb | 50,044,000 | 46,799,312 | |||
China Construction Bank Corp. Class H | 452,868,000 | 342,421,139 | |||
China COSCO Holdings Co. Ltd. Class Hb | 41,121,000 | 51,220,165 | |||
China Everbright Ltd.b | 39,522,000 | 95,911,492 |
4 | 2010 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI EMERGING MARKETS INDEX FUND
February 28, 2010
Security | Shares | Value | |||
China High Speed Transmission Equipment Group Co. Ltd. | 11,353,000 | $ | 21,789,524 | ||
China Life Insurance Co. Ltd. Class H | 88,924,000 | 394,601,789 | |||
China Mengniu Dairy Co. Ltd.a | 14,979,000 | 44,666,780 | |||
China Merchants Bank Co. Ltd. Class Hb | 37,222,400 | 91,673,348 | |||
China Merchants Holdings (International) Co. Ltd.b | 14,402,000 | 51,850,799 | |||
China Mobile Ltd. | 62,436,000 | 616,048,175 | |||
China National Building Material Co. Ltd. Class Hb | 22,708,000 | 39,078,346 | |||
China Overseas Land & Investment Ltd. | 52,066,960 | 105,564,473 | |||
China Petroleum & Chemical Corp. Class H | 221,702,000 | 173,915,278 | |||
China Railway Construction Corp. Ltd. Class H | 17,026,500 | 22,414,400 | |||
China Railway Group Ltd. Class Ha | 35,831,000 | 26,815,500 | |||
China Resources Enterprise Ltd.b | 25,228,000 | 89,039,809 | |||
China Resources Land Ltd.b | 49,192,000 | 102,396,868 | |||
China Resources Power Holdings Co. Ltd. | 19,806,999 | 39,341,769 | |||
China Shenhua Energy Co. Ltd. Class H | 27,290,500 | 117,411,002 | |||
China Shipping Container Lines Co. Ltd. Class Ha,b | 91,426,000 | 36,507,513 | |||
China Shipping Development Co. Ltd. Class Hb | 32,200,000 | 54,832,514 | |||
China Taiping Insurance Holdings Co. Ltd.a | 412,000 | 1,278,984 | |||
China Telecom Corp. Ltd. Class H | 49,962,000 | 21,945,477 | |||
China Travel International Investment Hong Kong Ltd.b | 160,928,951 | 42,287,809 | |||
China Unicom (Hong Kong) Ltd. | 42,850,000 | 51,386,772 |
Security | Shares | Value | |||
China Yurun Food Group Ltd.b | 4,478,000 | $ | 13,324,377 | ||
CITIC Pacific Ltd.b | 24,981,000 | 55,732,502 | |||
CNOOC Ltd. | 205,549,000 | 324,076,560 | |||
COSCO Pacific Ltd.b | 10,846,000 | 16,904,635 | |||
Datang International Power Generation Co. Ltd. Class Hb | 28,642,000 | 13,023,535 | |||
Denway Motors Ltd. | 71,662,000 | 40,061,710 | |||
Dongfang Electric Corp. Ltd. Class H | 7,290,000 | 36,622,077 | |||
Dongfeng Motor Group Co. Ltd. Class H | 37,656,000 | 54,616,443 | |||
Fosun International Ltd.b | 11,266,000 | 8,474,877 | |||
Fushan International Energy Group Ltd. | 3,784,000 | 3,372,936 | |||
Geely Automobile Holdings Ltd.b | 14,930,000 | 7,500,242 | |||
Golden Eagle Retail Group Ltd.b | 7,597,000 | 13,895,728 | |||
GOME Electrical Appliances Holdings Ltd.a,b | 81,028,200 | 25,466,945 | |||
Greentown China Holdings Ltd. | 8,516,500 | 11,299,239 | |||
Guangdong Investment Ltd.b | 25,074,110 | 12,725,433 | |||
Guangzhou R&F Properties Co. Ltd. Class Hb | 18,578,400 | 27,568,404 | |||
Harbin Power Equipment Co. Ltd. Class Hb | 11,402,000 | 9,179,349 | |||
Hengan International Group Co. Ltd. | 3,796,000 | 26,086,239 | |||
Hidili Industry International Development Ltd.a | 1,236,000 | 1,324,624 | |||
Huaneng Power International Inc. Class Hb | 39,454,000 | 23,733,334 | |||
Industrial and Commercial Bank of China Ltd. Class H | 455,972,000 | 322,449,236 | |||
Jiangsu Expressway Co. Ltd. Class H | 10,852,000 | 10,078,500 | |||
Jiangxi Copper Co. Ltd. Class Hb | 39,042,000 | 79,357,849 |
SCHEDULEOF INVESTMENTS | 5 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI EMERGING MARKETS INDEX FUND
February 28, 2010
Security | Shares | Value | |||
Kingboard Chemical | |||||
Holdings Co. Ltd. | 546,000 | $ | 2,447,500 | ||
Lenovo Group Ltd.b | 89,420,000 | 58,167,029 | |||
Li Ning Co. Ltd.b | 7,590,000 | 23,708,515 | |||
Maanshan Iron & Steel Co. Ltd. Class Ha,b | 56,238,000 | 33,757,215 | |||
Nine Dragons Paper (Holdings) Ltd.b | 18,912,000 | 27,527,498 | |||
Parkson Retail Group Ltd.b | 4,489,500 | 7,436,863 | |||
PetroChina Co. Ltd. Class H | 196,748,000 | 219,725,396 | |||
PICC Property and Casualty Co. Ltd. Class Ha,b | 25,070,000 | 22,669,518 | |||
Ping An Insurance (Group) Co. of China Ltd. Class H | 19,990,500 | 152,439,037 | |||
Poly (Hong Kong) Investments Ltd.b | 20,972,458 | 25,258,746 | |||
Renhe Commercial Holdings Co. Ltd. | 22,378,000 | 5,130,883 | |||
Shanghai Industrial Holdings Ltd. | 7,591,000 | 32,609,614 | |||
Shimao Property Holdings Ltd. | 28,054,000 | 46,760,581 | |||
Shui On Land Ltd. | 58,488,450 | 28,402,874 | |||
Sinofert Holdings Ltd.b | 58,744,000 | 32,915,739 | |||
Sino-Ocean Land Holdings Ltd.b | 57,856,000 | 51,123,827 | |||
Sinopec Shanghai Petrochemical Co. Ltd. Class Ha,b | 42,874,000 | 15,297,646 | |||
Sinopharm Group Co. Ltd. Class Ha | 412,000 | 1,854,792 | |||
Tencent Holdings Ltd. | 9,354,300 | 183,390,477 | |||
Tingyi (Cayman Islands) Holding Corp. | 5,192,000 | 12,051,478 | |||
XinAo Gas Holdings Ltd. | 7,592,000 | 18,228,584 | |||
Yanzhou Coal Mining Co. Ltd. Class Hb | 39,294,800 | 83,111,108 | |||
Zhejiang Expressway Co. Ltd. Class H | 39,294,000 | 35,531,553 | |||
Zijin Mining Group Co. Ltd. Class H | 83,872,000 | 71,735,794 | |||
5,832,448,390 |
Security | Shares | Value | |||
COLOMBIA – 0.44% | |||||
Bancolombia SA SP ADR | 3,171,217 | $ | 147,081,044 | ||
147,081,044 | |||||
CZECH REPUBLIC – 1.12% | |||||
CEZ AS | 6,037,368 | 276,333,513 | |||
Komercni Banka AS | 491,348 | 96,925,311 | |||
373,258,824 | |||||
EGYPT – 0.50% | |||||
Orascom Construction Industries Co. SP GDRb | 2,535,612 | 108,143,852 | |||
Orascom Telecom Holding SAE SP GDRb,c | 11,147,206 | 59,303,136 | |||
167,446,988 | |||||
HUNGARY – 1.16% | |||||
Magyar Telekom Telecommunications PLC | 4,355,695 | 15,790,961 | |||
MOL Hungarian Oil and Gas Nyrta,b | 997,927 | 89,940,820 | |||
OTP Bank Nyrta,b | 4,539,574 | 125,270,748 | |||
Richter Gedeon Nyrtb | 732,309 | 152,729,957 | |||
383,732,486 | |||||
INDIA – 6.41% | |||||
Axis Bank Ltd. SP GDRc | 331,250 | 8,215,000 | |||
Dr. Reddy’s Laboratories Ltd. SP ADRb | 132,676 | 3,265,156 | |||
HDFC Bank Ltd. SP ADRb | 4,189,965 | 509,876,841 | |||
ICICI Bank Ltd. SP ADRb | 9,553,760 | 365,431,320 | |||
Infosys Technologies Ltd. SP ADR | 8,670,100 | 493,328,690 | |||
Larsen & Toubro Ltd. GDRc | 613,900 | 20,995,380 | |||
Mahanagar Telephone Nigam Ltd. SP ADRb | 1,535,183 | 4,743,715 | |||
Reliance Industries Ltd. SP GDRb,d | 9,202,798 | 390,198,635 | |||
Satyam Computer Services Ltd. SP ADRa | 474,773 | 2,516,297 | |||
Sterlite Industries (India) Ltd. SP ADR | 848,015 | 14,322,973 | |||
Tata Communications Ltd. SP ADRb | 6,131,870 | 76,035,188 |
6 | 2010 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI EMERGING MARKETS INDEX FUND
February 28, 2010
Security | Shares | Value | |||
Tata Motors Ltd. SP ADRb | 397,436 | $ | 6,430,514 | ||
Wipro Ltd. SP ADRb | 10,798,370 | 233,460,759 | |||
2,128,820,468 | |||||
INDONESIA – 2.35% | |||||
PT Adaro Energy Tbk | 100,463,000 | 19,694,407 | |||
PT Aneka Tambang Tbk | 225,126,000 | 50,041,399 | |||
PT Astra Agro Lestari Tbk | 4,489,500 | 11,638,554 | |||
PT Astra International Tbk | 28,598,500 | 111,054,700 | |||
PT Bank Central Asia Tbk | 160,860,500 | 84,005,885 | |||
PT Bank Danamon Indonesia Tbk | 36,673,487 | 19,544,788 | |||
PT Bank Mandiri Tbk | 97,440,500 | 46,710,898 | |||
PT Bank Negara Indonesia (Persero) Tbk | 42,211,000 | 8,636,637 | |||
PT Bank Rakyat Indonesia Tbk | 82,289,061 | 63,028,043 | |||
PT Bumi Resources Tbk | 329,151,500 | 79,334,856 | |||
PT Indo Tambangraya Megah Tbk | 3,798,500 | 12,858,340 | |||
PT Indofood Sukses Makmur Tbk | 50,076,000 | 20,384,446 | |||
PT Indosat Tbk | 1,892,560 | 1,033,964 | |||
PT International Nickel Indonesia Tbk | 13,379,500 | 5,410,564 | |||
PT Perusahaan Gas Negara Tbk | 169,759,500 | 65,921,605 | |||
PT Semen Gresik (Persero) Tbk | 12,490,500 | 10,169,020 | |||
PT Telekomunikasi Indonesia Tbk | 110,783,000 | 98,500,150 | |||
PT Unilever Indonesia Tbk | 933,500 | 1,150,000 | |||
PT United Tractors Tbk | 38,622,150 | 70,955,530 | |||
780,073,786 | |||||
ISRAEL – 3.34% | |||||
Bank Hapoalim Ltd.a | 15,921,131 | 66,111,564 | |||
Bank Leumi le-Israela | 20,592,665 | 87,090,323 | |||
Check Point Software Technologies Ltd.a | 1,609,974 | 52,485,152 | |||
Discount Investment Corp. Ltd.b | 105,476 | 2,665,862 | |||
Elbit Systems Ltd.b | 1,183,776 | 72,683,878 | |||
Israel Chemicals Ltd. | 8,736,165 | 106,332,203 | |||
Israel Corp. Ltd. (The)a | 30,315 | 23,010,036 |
Security | Shares | Value | |||
Israel Discount Bank Ltd. Class Aa,b | 26,691,169 | $ | 58,277,661 | ||
Makhteshim-Agan Industries Ltd.b | 5,224,607 | 26,631,185 | |||
Mizrahi Tefahot Bank Ltd.a | 8,787,596 | 77,026,645 | |||
NICE Systems Ltd.a | 276,970 | 8,495,653 | |||
Teva Pharmaceutical Industries Ltd. | 8,693,228 | 519,269,964 | |||
Teva Pharmaceutical Industries Ltd. SP ADR | 122,457 | 7,348,645 | |||
1,107,428,771 | |||||
MALAYSIA – 1.25% | |||||
AirAsia Bhda | 16,100,600 | 6,808,065 | |||
Alliance Financial Group Bhd | 1,690,100 | 1,379,673 | |||
AMMB Holdings Bhd | 22,516,675 | 32,398,093 | |||
Astro All Asia Networks PLC | 2,486,000 | 2,474,685 | |||
Axiata Group Bhda | 9,430,200 | 10,328,776 | |||
Berjaya Sports Toto Bhd | 5,089,400 | 6,381,365 | |||
British American Tobacco (Malaysia) Bhd | 413,600 | 5,098,496 | |||
Bursa Malaysia Bhd | 5,336,500 | 11,407,934 | |||
CIMB Group Holdings Bhd | 7,530,800 | 28,791,959 | |||
DiGi.Com Bhd | 54,000 | 357,093 | |||
Gamuda Bhd | 30,355,700 | 24,691,026 | |||
Genting Bhd | 21,333,800 | 39,529,079 | |||
Genting Malaysia Bhd | 45,127,700 | 36,043,854 | |||
Genting Plantations Bhd | 1,696,400 | 3,083,458 | |||
Hong Leong Bank Bhd | 150,000 | 369,990 | |||
Hong Leong Financial Group Bhd | 445,600 | 1,007,523 | |||
IGB Corp. Bhda | 9,471,200 | 4,867,009 | |||
IJM Corp. Bhd | 12,785,420 | 16,631,746 | |||
IOI Corp. Bhd | 18,987,120 | 29,940,048 | |||
KLCC Property Holdings Bhd | 2,204,900 | 2,117,170 | |||
Kuala Lumpur Kepong Bhd | 1,349,600 | 6,634,064 | |||
Lafarge Malayan Cement Bhd | 558,400 | 1,033,011 | |||
Malayan Banking Bhd | 3,734,000 | 7,642,337 | |||
Malaysian Airline System Bhda | 2,266,200 | 1,384,142 | |||
MISC Bhd Foreign | 1,015,600 | 2,311,232 | |||
MMC Corp. Bhd | 8,577,200 | 6,145,461 | |||
Parkson Holdings Bhd | 4,205,159 | 6,828,521 | |||
Petronas Dagangan Bhd | 339,600 | 871,562 |
SCHEDULEOF INVESTMENTS | 7 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI EMERGING MARKETS INDEX FUND
February 28, 2010
Security | Shares | Value | |||
PLUS Expressways Bhd | 4,630,100 | $ | 4,690,602 | ||
PPB Group Bhd | 989,600 | 4,707,538 | |||
RHB Capital Bhd | 1,312,800 | 2,035,409 | |||
Sime Darby Bhd | 19,084,273 | 47,353,430 | |||
SP Setia Bhd | 8,339,100 | 10,235,630 | |||
Tanjong PLC | 689,500 | 3,567,461 | |||
Telekom Malaysia Bhd | 2,249,800 | 2,153,677 | |||
Tenaga Nasional Bhd | 10,392,100 | 24,290,447 | |||
UMW Holdings Bhd | 2,527,600 | 4,653,664 | |||
YTL Corp. Bhd | 5,215,308 | 11,056,974 | |||
YTL Power International Bhd | 7,984,960 | 5,064,605 | |||
416,366,809 | |||||
MEXICO – 4.87% | |||||
Alfa SAB de CV Series A | 7,363,700 | 49,709,118 | |||
America Movil SAB de CV Series L | 162,712,000 | 362,905,559 | |||
Cemex SAB de CV CPOa | 87,957,771 | 84,489,039 | |||
Desarrolladora Homex SAB de CVa,b | 1,823,500 | 8,319,685 | |||
Fomento Economico Mexicano SAB de CV BD Units | 32,351,600 | 138,941,875 | |||
Grupo Bimbo SAB de CV Series A | 542,300 | 3,958,434 | |||
Grupo Carso SAB de CV Series A1 | 1,610,741 | 5,733,664 | |||
Grupo Financiero Banorte SAB de CV Series O | 18,949,656 | 70,880,874 | |||
Grupo Mexico SAB de CV Series B | 56,002,663 | 133,761,914 | |||
Grupo Modelo SAB de CV Series Ca | 21,978,798 | 122,215,796 | |||
Grupo Televisa SA CPO | 34,839,300 | 128,979,391 | |||
Industrias Penoles SAB de CV | 1,786,988 | 35,789,423 | |||
Kimberly-Clark de Mexico SAB de CV Series A | 12,695,600 | 67,335,505 | |||
Telefonos de Mexico SAB de CV Series L | 76,649,800 | 60,005,715 | |||
Telmex Internacional SAB de CV Series L | 81,858,600 | 74,657,222 |
Security | Shares | Value | |||
Urbi Desarrollos Urbanos | |||||
SAB de CVa,b | 6,116,600 | $ | 13,776,266 | ||
Wal-Mart de Mexico SAB de CV Series V | 51,083,400 | 254,702,162 | |||
1,616,161,642 | |||||
PERU – 0.71% | |||||
Compania de Minas | |||||
Buenaventura SA SP ADR | 4,797,221 | 161,234,598 | |||
Southern Copper Corp. | 2,518,252 | 73,935,879 | |||
235,170,477 | |||||
PHILIPPINE ISLANDS – 1.23% | |||||
Ayala Corp. | 7,735,273 | 49,052,951 | |||
Ayala Land Inc. | 61,127,800 | 14,909,220 | |||
Bank of the Philippine Islands | 49,380,640 | 50,317,400 | |||
Globe Telecom Inc. | 822,420 | 17,295,337 | |||
Jollibee Foods Corp.e | 64,514,400 | 80,424,455 | |||
Manila Electric Co. | 16,157,682 | 63,054,369 | |||
Metropolitan Bank & Trust Co. | 897,940 | 866,305 | |||
Philippine Long Distance | |||||
Telephone Co. | 984,330 | 55,485,268 | |||
SM Investments Corp. | 3,431,991 | 26,972,287 | |||
SM Prime Holdings Inc. | 247,111,820 | 50,895,659 | |||
409,273,251 | |||||
POLAND – 0.22% | |||||
Bank Pekao SAa | 147,576 | 8,044,628 | |||
Cyfrowy Polsat SA | 507,520 | 2,531,053 | |||
KGHM Polska Miedz SA | 64,328 | 2,147,646 | |||
PBG SAa | 38,014 | 2,581,705 | |||
Polski Koncern Naftowy ORLEN SAa | 2,398,421 | 27,195,035 | |||
Polskie Gornictwo Naftowe i Gazownictwo SA | 9,852,133 | 12,112,789 | |||
Powszechna Kasa Oszczednosci Bank Polski SA | 1,453,056 | 18,498,793 | |||
73,111,649 | |||||
RUSSIA – 6.27% | |||||
JSC MMC Norilsk Nickel | |||||
SP ADRa | 7,601,967 | 114,713,682 | |||
LUKOIL SP ADR | 5,160,259 | 270,913,597 | |||
Mechel OAO SP ADR | 3,557,379 | 81,819,717 | |||
Mobile TeleSystems SP ADR | 2,031,659 | 106,357,349 |
��
8 | 2010 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI EMERGING MARKETS INDEX FUND
February 28, 2010
Security | Shares | Value | |||
Novolipetsk Steel SP GDRa,c | 1,957,732 | $ | 60,493,919 | ||
OAO Gazprom SP ADR | 23,916,297 | 531,898,445 | |||
OAO NovaTek SP GDRc | 1,195,313 | 76,260,969 | |||
OAO Tatneft SP ADR | 4,032,118 | 122,737,672 | |||
OAO TMK SP GDRa,c | 54,868 | 976,650 | |||
OJSC Comstar United Telesystems SP GDR | 1,639,408 | 9,508,566 | |||
OJSC Rosneft Oil Co. SP GDR | 13,463,176 | 103,935,719 | |||
Polyus Gold SP ADR | 2,146,713 | 58,304,725 | |||
Rushydro SP ADRa | 5,163,148 | 22,356,431 | |||
Sberbank GDRc | 700,538 | 190,248,818 | |||
Sistema JSFC SP GDRa,c | 111,088 | 2,832,744 | |||
Surgutneftegaz SP ADR | 6,084,062 | 49,706,787 | |||
Uralkali SP GDRa,c | 2,391,116 | 50,093,880 | |||
Vimpel-Communications SP ADR | 6,359,539 | 117,969,448 | |||
VTB Bank OJSC SP GDRb,c | 15,090,426 | 72,735,853 | |||
Wimm-Bill-Dann Foods OJSC SP ADRa | 1,810,328 | 37,075,517 | |||
2,080,940,488 | |||||
SOUTH AFRICA – 7.98% | |||||
Absa Group Ltd.b | 586,173 | 10,156,406 | |||
African Bank Investments Ltd. | 18,473,550 | 74,646,206 | |||
African Rainbow Minerals Ltd. | 444,929 | 10,681,315 | |||
Anglo Platinum Ltd.a,b | 618,449 | 57,653,051 | |||
AngloGold Ashanti Ltd. | 2,209,789 | 79,860,324 | |||
ArcelorMittal South Africa Ltd. | 4,894,172 | 74,499,713 | |||
Aveng Ltd. | 2,680,280 | 13,078,801 | |||
Bidvest Group Ltd. | 4,002,808 | 68,937,394 | |||
Exxaro Resources Ltd. | 2,597,991 | 38,980,881 | |||
FirstRand Ltd. | 46,526,385 | 110,420,112 | |||
Foschini Ltd. | 8,720,822 | 68,838,115 | |||
Gold Fields Ltd. | 6,816,728 | 79,022,282 | |||
Harmony Gold Mining Co. Ltd. | 4,032,829 | 36,332,030 | |||
Impala Platinum Holdings Ltd. | 5,910,616 | 144,863,881 | |||
Imperial Holdings Ltd. | 4,951,503 | 60,565,387 | |||
Investec Ltd. | 6,066,658 | 43,098,640 | |||
Kumba Iron Ore Ltd. | 664,749 | 31,830,241 | |||
Liberty Holdings Ltd. | 1,278,716 | 11,721,911 | |||
Massmart Holdings Ltd. | 755,869 | 9,044,392 | |||
MTN Group Ltd. | 14,543,804 | 212,336,313 | |||
Murray & Roberts Holdings Ltd. | 3,373,449 | 16,989,384 |
Security | Shares | Value | |||
Naspers Ltd. Class N | 5,733,067 | $ | 215,424,789 | ||
Nedbank Group Ltd.b | 5,087,925 | 79,659,600 | |||
Netcare Ltd.a,b | 28,275,942 | 47,369,443 | |||
Northam Platinum Ltd.b | 457,713 | 2,659,865 | |||
Pick’n Pay Stores Ltd. | 8,089,334 | 42,639,323 | |||
Pretoria Portland Cement Co. Ltd. | 6,018,457 | 25,520,237 | |||
Remgro Ltd. | 1,461,805 | 17,165,171 | |||
Reunert Ltd. | 2,523,622 | 18,171,922 | |||
Sanlam Ltd. | 28,533,593 | 90,948,617 | |||
Sappi Ltd.a | 1,623,295 | 6,250,041 | |||
Sasol Ltd. | 7,161,740 | 263,455,228 | |||
Shoprite Holdings Ltd. | 17,143,128 | 167,528,252 | |||
Standard Bank Group Ltd. | 13,478,608 | 188,976,608 | |||
Steinhoff International Holdings Ltd.a | 3,123,699 | 7,792,436 | |||
Tiger Brands Ltd. | 3,041,113 | 69,833,112 | |||
Truworths International Ltd. | 14,825,064 | 95,629,351 | |||
Woolworths Holdings Ltd. | 20,126,980 | 54,121,868 | |||
2,646,702,642 | |||||
SOUTH KOREA – 12.33% | |||||
Celltrion Inc.a,b | 293,035 | 4,522,223 | |||
Daewoo International Corp.b | 64,086 | 2,005,623 | |||
Daewoo Shipbuilding & Marine Engineering Co. Ltd.b | 884,390 | 15,363,789 | |||
Dongkuk Steel Mill Co. Ltd. | 223,860 | 4,400,386 | |||
Doosan Corp. | 304,560 | 28,358,031 | |||
Doosan Heavy Industries & Construction Co. Ltd.b | 231,790 | 17,445,700 | |||
GS Engineering & Construction Corp. | 171,871 | 12,921,072 | |||
Hana Financial Group Inc.a | 391,510 | 11,307,514 | |||
Hanjin Heavy Industries & Construction Co. Ltd.b | 856,070 | 16,089,599 | |||
Hankook Tire Co. Ltd. | 233,390 | 4,668,202 | |||
Hynix Semiconductor Inc.a | 2,073,960 | 37,549,065 | |||
Hyosung Corp. | 146,651 | 11,062,990 | |||
Hyundai Engineering & Construction Co. Inc. | 325,410 | 16,804,948 | |||
Hyundai Heavy Industries Co. Ltd.b | 375,500 | 66,851,237 | |||
Hyundai Mipo Dockyard Co. Ltd. | 132,220 | 14,819,036 |
SCHEDULEOF INVESTMENTS | 9 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI EMERGING MARKETS INDEX FUND
February 28, 2010
Security | Shares | Value | |||
Hyundai Mobis Co. Ltd. | 188,498 | $ | 24,133,074 | ||
Hyundai Motor Co. Ltd.b | 1,173,919 | 116,389,934 | |||
Hyundai Steel Co. | 216,240 | 16,554,972 | |||
KB Financial Group Inc. SP ADRa | 10,926,456 | 457,490,713 | |||
Kia Motors Corp. | 1,289,370 | 24,177,772 | |||
Korea Electric Power Corp. SP ADRa,b | 22,621,645 | 364,887,134 | |||
Korea Zinc Co. Ltd. | 32,940 | 5,197,017 | |||
Korean Air Lines Co. Ltd.a | 52,698 | 2,639,671 | |||
KT Corp. SP ADRa | 13,330,545 | 255,679,853 | |||
KT&G Corp. | 240,937 | 13,335,766 | |||
LG Chem Ltd. | 198,014 | 36,704,035 | |||
LG Corp. | 405,173 | 21,308,348 | |||
LG Display Co. Ltd. SP ADRa,b | 11,297,432 | 169,913,377 | |||
LG Electronics Inc. | 418,380 | 38,595,275 | |||
Mirae Asset Securities Co. Ltd. | 111,240 | 5,658,384 | |||
NCsoft Corp.b | 301,635 | 34,586,995 | |||
NHN Corp.a | 190,583 | 29,740,084 | |||
OCI Co. Ltd.b | 112,850 | 17,172,192 | |||
POSCO SP ADR | 5,415,797 | 625,307,922 | |||
Samsung C&T Corp. | 722,515 | 36,814,067 | |||
Samsung Electro-Mechanics Co. Ltd. | 125,742 | 10,840,762 | |||
Samsung Electronics Co. Ltd. SP GDRb,c | 3,281,823 | 1,048,542,449 | |||
Samsung Engineering Co. Ltd. | 187,990 | 19,854,104 | |||
Samsung Fire & Marine Insurance Co. Ltd. | 15,050 | 2,393,935 | |||
Samsung Heavy Industries Co. Ltd.b | 2,036,070 | 43,270,218 | |||
Samsung Techwin Co. Ltd. | 565,987 | 36,401,957 | |||
Shinhan Financial Group Co. Ltd. | 1,184,580 | 42,331,961 | |||
Shinhan Financial Group Co. Ltd. SP ADR | 643,204 | 46,760,931 | |||
Shinsegae Co. Ltd. | 15,050 | 6,876,886 | |||
SK Energy Co. Ltd. | 202,980 | 18,724,769 | |||
SK Holdings Co. Ltd. | 75,650 | 5,635,106 | |||
SKTelecom Co. Ltd. SP ADR | 12,147,754 | 202,624,537 | |||
STX Offshore & Shipbuilding Co. Ltd.a,b | 1,695,930 | 17,472,509 |
Security | Shares | Value | |||
STX Pan Ocean Co. Ltd.b | 2,279,800 | $ | 23,193,068 | ||
Taewoong Co. Ltd.b | 44,501 | 2,927,344 | |||
Tong Yang Securities Inc. | 243,630 | 2,226,466 | |||
Woongjin Coway Co. Ltd. | 22,560 | 675,886 | |||
4,091,208,888 | |||||
TAIWAN – 10.51% | |||||
Acer Inc. | 5,788,000 | 16,241,952 | |||
Asia Cement Corp. | 4,817,081 | 4,415,689 | |||
ASUSTeK Computer Inc. | 6,370,000 | 11,241,469 | |||
AU Optronics Corp. SP ADRb | 24,557,517 | 254,661,451 | |||
Capital Securities Corp.a | 19,999,000 | 9,665,118 | |||
Catcher Technology Co. Ltd. | 3,873,210 | 7,910,055 | |||
Cathay Financial Holding Co. Ltd.a | 19,197,000 | 30,945,043 | |||
Cheng Shin Rubber Industry Co. Ltd. | 11,779,515 | 22,771,219 | |||
Chi Mei Optoelectronics Corp.a | 9,992,000 | 6,853,971 | |||
China Airlines Ltd.a | 5,997,000 | 1,944,619 | |||
China Steel Corp. | 46,779,000 | 46,964,964 | |||
Chinatrust Financial Holding Co. Ltd. | 57,855,000 | 31,387,544 | |||
Chinese Gamer International Corp. | 913,000 | 8,682,360 | |||
Chunghwa Telecom Co. Ltd. SP ADR | 26,831,031 | 501,203,659 | |||
Clevo Co.a | 5,930,000 | 11,130,595 | |||
CMC Magnetics Corp.a | 8,136,000 | 2,108,042 | |||
Compal Communications Inc. | 7,538,750 | 7,451,193 | |||
Compal Electronics Inc. | 9,989,000 | 14,326,729 | |||
Delta Electronics Inc. | 1,747,000 | 5,092,977 | |||
Epistar Corp. | 4,388,345 | 11,780,700 | |||
Eternal Chemical Co. Ltd. | 105,000 | 101,816 | |||
EVA Airways Corp.a | 2,585,000 | 979,274 | |||
Evergreen International Storage & Transport Corp.a | 7,904,000 | 6,087,109 | |||
Evergreen Marine Corp. Ltd.a | 15,981,000 | 9,566,925 | |||
Far Eastern Department Stores Co. Ltd. | 7,455,000 | 5,334,547 | |||
Far Eastern New Century Corp. | 26,170,434 | 28,314,415 |
10 | 2010 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI EMERGING MARKETS INDEX FUND
February 28, 2010
Security | Shares | Value | |||
Farglory Land Development Co. Ltd. | 15,066,000 | $ | 30,533,635 | ||
Feng Hsin Iron & Steel Co. Ltd. | 5,448,000 | 8,951,893 | |||
Formosa Chemicals & Fibre Corp. | 6,723,000 | 15,197,365 | |||
Formosa International Hotels Corp. | 93,000 | 985,891 | |||
Formosa Plastics Corp. | 11,375,000 | 24,542,833 | |||
Formosa Taffeta Co. Ltd. | 1,284,000 | 954,818 | |||
Foxconn Technology Co. Ltd. | 165,272 | 584,874 | |||
Fubon Financial Holding Co. Ltd.a | 5,107,000 | 5,652,771 | |||
Giant Manufacturing Co. Ltd. | 738,000 | 2,045,622 | |||
HannStar Display Corp.a | 11,767,963 | 2,351,941 | |||
Hon Hai Precision Industry Co. Ltd. | 74,893,762 | 296,562,718 | |||
HTC Corp. | 9,607,990 | 97,060,995 | |||
Innolux Display Corp. | 5,795,000 | 8,239,208 | |||
KGI Securities Co. Ltd. | 51,309,000 | 22,156,977 | |||
Largan Precision Co. Ltd. | 554,000 | 7,142,536 | |||
Lite-On Technology Corp. | 1,829,000 | 2,355,217 | |||
Macronix International Co. Ltd. | 23,056,275 | 12,364,734 | |||
MediaTek Inc. | 5,772,802 | 90,896,095 | |||
MiTAC International Corp. | 7,403,728 | 3,185,640 | |||
Motech Industries Inc. | 3,913,000 | 15,250,604 | |||
Nan Ya Plastics Corp. | 12,931,000 | 25,601,949 | |||
Phison Electronics Corp. | 1,183,000 | 7,598,348 | |||
Polaris Securities Co. Ltd.a | 39,894,000 | 19,528,749 | |||
Pou Chen Corp. | 7,985,000 | 5,888,074 | |||
Prime View International Co. Ltd.a | 8,656,000 | 17,029,966 | |||
Quanta Computer Inc. | 2,519,000 | 5,144,423 | |||
Ruentex Industries Ltd.a | 9,281,000 | 15,828,847 | |||
Shin Kong Financial Holding Co. Ltd.a | 16,067,345 | 5,711,053 | |||
Siliconware Precision Industries Co. Ltd. SP ADR | 41,380,699 | 241,663,282 | |||
Synnex Technology International Corp. | 4,922,280 | 10,374,811 | |||
Taiwan Cement Corp. | 28,999,190 | 26,763,614 | |||
Taiwan Fertilizer Co. Ltd. | 6,481,000 | 19,601,122 |
Security | Shares | Value | |||
Taiwan Glass Industrial Corp. | 2,902,000 | $ | 2,596,848 | ||
Taiwan Mobile Co. Ltd. | 1,025,000 | 1,920,726 | |||
Taiwan Semiconductor Manufacturing Co. Ltd. SP ADR | 82,469,666 | 804,079,244 | |||
Tatung Co. Ltd.a | 61,681,000 | 12,885,266 | |||
Teco Electric and Machinery Co. Ltd. | 15,718,000 | 6,272,988 | |||
TSRC Corp. | 3,052,000 | 3,606,541 | |||
Tung Ho Steel Enterprise Corp. | 10,688,000 | 12,046,806 | |||
U-Ming Marine Transport Corp. | 4,010,000 | 7,614,280 | |||
Uni-President Enterprises Co. | 15,057,012 | 16,713,060 | |||
United Microelectronics Corp. SP ADRa,b | 123,032,768 | 422,002,394 | |||
Walsin Lihwa Corp.a | 17,202,000 | 5,631,647 | |||
Wintek Corp.a | 4,148,000 | 2,948,769 | |||
Wistron Corp. | 4,236,000 | 7,264,167 | |||
WPG Holdings Co. Ltd. | 1,647,000 | 2,654,919 | |||
Yang Ming Marine Transport Corp. | 30,031,978 | 10,581,070 | |||
Young Fast Optoelectronics Co. Ltd. | 1,224,000 | 11,048,344 | |||
Yuanta Financial Holding Co. Ltd. | 38,829,000 | 22,034,073 | |||
Yulon Motor Co. Ltd. | 32,452,000 | 30,962,076 | |||
3,487,777,258 | |||||
THAILAND – 1.37% | |||||
Bangkok Bank PCL Foreign | 7,972,800 | 28,573,319 | |||
Banpu PCL Foreign | 2,511,000 | 41,615,848 | |||
IRPC PCL Foreign | 129,371,400 | 17,215,610 | |||
Kasikornbank PCL Foreign | 16,172,200 | 44,019,295 | |||
Krung Thai Bank PCL Foreign | 62,367,800 | 18,862,181 | |||
PTT Aromatics & Refining PCL Foreign | 36,820,986 | 29,788,640 | |||
PTT Chemical PCL Foreign | 11,332,268 | 27,332,478 | |||
PTT Exploration and Production PCL Foreign | 27,398,500 | 111,864,434 | |||
PTT PCL Foreign | 15,917,300 | 111,683,460 | |||
Siam Cement PCL Foreign | 2,544,600 | 17,623,269 | |||
Thai Oil PCL NVDR | 3,250,900 | 4,252,273 | |||
TMB Bank PCL NVDRa | 24,660,400 | 977,019 | |||
453,807,826 |
SCHEDULEOF INVESTMENTS | 11 |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI EMERGING MARKETS INDEX FUND
February 28, 2010
Security | Shares | Value | |||
TURKEY – 1.29% | |||||
Akbank TASb | 7,883,890 | $ | 39,896,417 | ||
Anadolu Efes Biracilik ve Malt Sanayii AS | 375,768 | 3,803,147 | |||
Asya Katilim Bankasi ASa | 19,215,749 | 45,379,263 | |||
BIM Birlesik Magazalar AS | 139,395 | 6,194,931 | |||
Enka Insaat ve Sanayi AS | 265,901 | 1,043,694 | |||
Eregli Demir ve Celik Fabrikalari TASa,b | 9,502,089 | 26,015,385 | |||
Migros TASa | 1 | 8 | |||
Turk Sise ve Cam Fabrikalari ASa | 24,369,298 | 28,458,648 | |||
Turkcell Iletisim Hizmetleri ASb | 4,513,250 | 26,499,440 | |||
Turkiye Garanti Bankasi ASb | 25,178,225 | 93,110,509 | |||
Turkiye Halk Bankasi AS | 912,390 | 5,771,436 | |||
Turkiye Is Bankasi ASb | 7,642,391 | 21,221,289 | |||
Turkiye Is Bankasi AS Newa | 3,543,645 | 9,380,135 | |||
Turkiye Petrol Rafinerileri AS | 1,321,015 | 23,997,418 | |||
Turkiye Vakiflar Bankasi TAOa,b | 26,268,383 | 59,989,430 | |||
Yapi ve Kredi Bankasi ASa,b | 17,154,413 | 36,949,850 | |||
427,711,000 | |||||
TOTAL COMMON STOCKS | 30,198,342,089 | ||||
PREFERRED STOCKS – 8.35% | |||||
BRAZIL – 8.35% | |||||
Banco Bradesco SA SP ADR | 30,206,660 | 522,877,285 | |||
Brasil Telecom SA SP ADRa | 1,499,540 | 30,800,551 | |||
Centrais Eletricas Brasileiras SA Class B SP ADR | 281,598 | 4,547,808 | |||
Companhia Brasileira de Distribuicao Grupo Pao de Acucar Class A SP ADRb | 1,924,031 | 131,719,162 | |||
Companhia de Bebidas das Americas SP ADR | 3,042,303 | 294,951,276 | |||
Companhia Energetica de Minas Gerais SP ADR | 3,380,645 | 55,341,159 | |||
Companhia Paranaense de Energia Class B SP ADR | 536,016 | 10,982,968 | |||
Gerdau SA SP ADR | 9,105,177 | 134,301,361 |
Security | Shares | Value | |||
Gol Linhas Aereas Inteligentes SA SP ADRb | 1,774,940 | $ | 24,316,678 | ||
Itausa - Investimentos Itau SA | 14,101,600 | 90,113,044 | |||
Net Servicos de Comunicacao SA SP ADR | 2,867,109 | 35,294,112 | |||
Petroleo Brasileiro SA SP ADR | 20,876,885 | 801,672,384 | |||
Tele Norte Leste Participacoes SA SP ADR | 3,178,679 | 55,213,654 | |||
Vale SA Class A SP ADR | 23,564,216 | 579,679,713 | |||
2,771,811,155 | |||||
TOTAL PREFERRED STOCKS | 2,771,811,155 | ||||
EXCHANGE-TRADED FUNDS – 0.48% | |||||
iShares MSCI Malaysia Index Funde | 1,224,068 | 13,085,287 | |||
iShares MSCI South Korea Index Fundb,e | 1,511,004 | 68,841,342 | |||
iShares MSCI Taiwan Index Funde | 6,584,400 | 77,498,388 | |||
TOTAL EXCHANGE-TRADED FUNDS | 159,425,017 | ||||
SHORT-TERM INVESTMENTS – 3.27% | |||||
MONEY MARKET FUNDS – 3.27% | |||||
BlackRock Cash Funds: Institutional, SL Agency Shares | 904,404,227 | 904,404,227 | |||
BlackRock Cash Funds: Prime, SL Agency Shares | 145,347,439 | 145,347,439 | |||
BlackRock Cash Funds: Treasury, SL Agency Shares | 33,740,980 | 33,740,980 | |||
1,083,492,646 | |||||
TOTAL SHORT-TERM INVESTMENTS | 1,083,492,646 | ||||
12 | 2010 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Schedule of Investments (Unaudited) (Continued)
iSHARES® MSCI EMERGING MARKETS INDEX FUND
February 28, 2010
Value | |||
TOTAL INVESTMENTS IN | |||
(Cost: $35,213,111,284) | $ | 34,213,070,907 | |
Other Assets, Less Liabilities – (3.10)% | (1,027,820,651) | ||
NET ASSETS – 100.00% | $ | 33,185,250,256 | |
GDR – Global Depositary Receipts
NVDR – Non-Voting 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 | 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.
SCHEDULEOF INVESTMENTS | 13 |
Table of Contents
Statement of Assets and Liabilities (Unaudited)
iSHARES®, INC.
February 28, 2010
iShares MSCI Emerging Markets Index Fund | ||||
ASSETS | ||||
Investments, at cost: | ||||
Unaffiliated issuers | $ | 33,890,502,758 | ||
Affiliated issuers (Note 2) | 1,322,608,526 | |||
Total cost of investments | $ | 35,213,111,284 | ||
Investments in securities, at fair value (including securities on loana) (Note 1): | ||||
Unaffiliated issuers | $ | 32,889,728,789 | ||
Affiliated issuers (Note 2) | 1,323,342,118 | |||
Total fair value of investments | 34,213,070,907 | |||
Foreign currencies, at valueb | 53,338,338 | |||
Receivables: | ||||
Investment securities sold | 343,481,675 | |||
Dividends and interest | 45,008,338 | |||
Total Assets | 34,654,899,258 | |||
LIABILITIES | ||||
Payables: | ||||
Investment securities purchased | 389,236,553 | |||
Securities related to in-kind transactions (Note 4) | 415,080 | |||
Collateral for securities on loan (Note 5) | 1,049,751,666 | |||
Capital shares redeemed | 11,722,382 | |||
Foreign taxes (Note 1) | 729,813 | |||
Investment advisory fees (Note 2) | 17,793,508 | |||
Total Liabilities | 1,469,649,002 | |||
NET ASSETS | $ | 33,185,250,256 | ||
Net assets consist of: | ||||
Paid-in capital | $ | 34,603,870,413 | ||
Distributions in excess of net investment income | (20,928,186 | ) | ||
Accumulated net realized loss | (397,283,958 | ) | ||
Net unrealized depreciation on investments and translation of assets and liabilities in foreign currencies | (1,000,408,013 | ) | ||
NET ASSETS | $ | 33,185,250,256 | ||
Shares outstandingc | 851,400,000 | |||
Net asset value per share | $ | 38.98 | ||
a | Securities on loan with a value of $1,002,121,089. See Note 5. |
b | Cost of foreign currencies: $53,281,359. |
c | $0.001 par value, number of shares authorized: 2,000,000,000. |
See notes to financial statements.
14 | 2010 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
Statement of Operations (Unaudited)
iSHARES®, INC.
Six months ended February 28, 2010
iShares MSCI Emerging Markets Index Fund | ||||
NET INVESTMENT INCOME | ||||
Dividends from unaffiliated issuersa | $ | 207,690,803 | ||
Dividends from affiliated issuers (Note 2)b | 2,615,250 | |||
Interest from unaffiliated issuers | 187 | |||
Interest from affiliated issuers (Note 2) | 21,256 | |||
Securities lending income from affiliated issuers (Note 2) | 5,813,659 | |||
Total investment income | 216,141,155 | |||
EXPENSES | ||||
Investment advisory fees (Note 2) | 122,805,967 | |||
Foreign taxes (Note 1) | 22,892 | |||
Total expenses | 122,828,859 | |||
Less investment advisory fees waived (Note 2) | (579,799 | ) | ||
Net expenses | 122,249,060 | |||
Net investment income | 93,892,095 | |||
NET REALIZED AND UNREALIZED GAIN (LOSS) | ||||
Net realized gain (loss) from: | ||||
Investments in unaffiliated issuers | (521,177,339 | ) | ||
Investments in affiliated issuers (Note 2) | 8,594,519 | |||
In-kind redemptions | 1,876,029,989 | |||
Foreign currency transactions | (3,410,527 | ) | ||
Net realized gain | 1,360,036,642 | |||
Net change in unrealized appreciation (depreciation) on: | ||||
Investments | 1,523,918,812 | |||
Translation of assets and liabilities in foreign currencies | (593,436 | ) | ||
Net change in unrealized appreciation (depreciation) | 1,523,325,376 | |||
Net realized and unrealized gain | 2,883,362,018 | |||
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS | $ | 2,977,254,113 | ||
a | Net of foreign withholding tax of $28,497,546. |
b | Net of foreign withholding tax of $181,044. |
See notes to financial statements.
FINANCIAL STATEMENTS | 15 |
Table of Contents
Statements of Changes in Net Assets
iSHARES®, INC.
iShares MSCI Emerging Markets Index Fund | ||||||||
Six months ended February 28, 2010 (Unaudited) | Year ended August 31, 2009 | |||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||
OPERATIONS: | ||||||||
Net investment income | $ | 93,892,095 | $ | 516,988,234 | ||||
Net realized gain (loss) | 1,360,036,642 | (496,335,831 | ) | |||||
Net change in unrealized appreciation (depreciation) | 1,523,325,376 | 807,907,449 | ||||||
Net increase in net assets resulting from operations | 2,977,254,113 | 828,559,852 | ||||||
DISTRIBUTIONS TO SHAREHOLDERS: | ||||||||
From net investment income | (314,072,033 | ) | (487,478,088 | ) | ||||
Total distributions to shareholders | (314,072,033 | ) | (487,478,088 | ) | ||||
CAPITAL SHARE TRANSACTIONS: | ||||||||
Proceeds from shares sold | 6,335,176,119 | 18,716,077,957 | ||||||
Cost of shares redeemed | (6,081,229,351 | ) | (9,091,794,756 | ) | ||||
Net increase in net assets from capital share transactions | 253,946,768 | 9,624,283,201 | ||||||
INCREASE IN NET ASSETS | 2,917,128,848 | 9,965,364,965 | ||||||
NET ASSETS | ||||||||
Beginning of period | 30,268,121,408 | 20,302,756,443 | ||||||
End of period | $ | 33,185,250,256 | $ | 30,268,121,408 | ||||
Undistributed (distributions in excess of) net investment income included in net assets at end of period | $ | (20,928,186 | ) | $ | 199,251,752 | |||
SHARES ISSUED AND REDEEMED | ||||||||
Shares sold | 156,600,000 | 691,200,000 | ||||||
Shares redeemed | (158,400,000 | ) | (344,700,000 | ) | ||||
Net increase (decrease) in shares outstanding | (1,800,000 | ) | 346,500,000 | |||||
See notes to financial statements.
16 | 2010 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Table of Contents
iSHARES®, INC.
(For a share outstanding throughout each period)
iShares MSCI Emerging Markets Index Fund | ||||||||||||||||||||||||
Six months Feb. 28, 2010 | Year ended Aug. 31, 2009 | Year ended Aug. 31, 2008a | Year ended Aug. 31, 2007a | Year ended Aug. 31, 2006a | Year ended Aug. 31, 2005a | |||||||||||||||||||
Net asset value, beginning of period | $ | 35.48 | $ | 40.07 | $ | 44.78 | $ | 32.48 | $ | 25.97 | $ | 17.99 | ||||||||||||
Income from investment operations: | ||||||||||||||||||||||||
Net investment incomeb | 0.10 | 0.66 | 1.10 | 0.63 | 0.55 | 0.55 | ||||||||||||||||||
Net realized and unrealized gain (loss) | 3.73 | (4.66 | ) | (4.64 | ) | 12.19 | 6.29 | 8.23 | ||||||||||||||||
Total from investment operations | 3.83 | (4.00 | ) | (3.54 | ) | 12.82 | 6.84 | 8.78 | ||||||||||||||||
Less distributions from: | ||||||||||||||||||||||||
Net investment income | (0.33 | ) | (0.59 | ) | (1.17 | ) | (0.52 | ) | (0.33 | ) | (0.80 | ) | ||||||||||||
Total distributions | (0.33 | ) | (0.59 | ) | (1.17 | ) | (0.52 | ) | (0.33 | ) | (0.80 | ) | ||||||||||||
Net asset value, end of period | $ | 38.98 | $ | 35.48 | $ | 40.07 | $ | 44.78 | $ | 32.48 | $ | 25.97 | ||||||||||||
Total return | 10.78 | %c | (9.47 | )% | (8.36 | )% | 39.86 | % | 26.44 | % | 46.17 | % | ||||||||||||
Ratios/Supplemental data: | ||||||||||||||||||||||||
Net assets, end of period (000s) | $ | 33,185,250 | $ | 30,268,121 | $ | 20,302,756 | $ | 18,198,371 | $ | 11,969,380 | $ | 7,000,858 | ||||||||||||
Ratio of expenses to average net assets prior to waived feesd | 0.69 | % | 0.72 | % | 0.72 | % | 0.74 | % | 0.77 | % | 0.78 | % | ||||||||||||
Ratio of expenses to average net assets after waived feesd | 0.68 | % | 0.72 | % | 0.72 | % | 0.74 | % | 0.77 | % | 0.77 | % | ||||||||||||
Ratio of expenses to average net assets after waived fees and exclusive of foreign taxesd | 0.68 | % | 0.72 | % | 0.72 | % | 0.74 | % | 0.75 | % | 0.74 | % | ||||||||||||
Ratio of net investment income to average net assetsd | 0.53 | % | 2.32 | % | 2.32 | % | 1.63 | % | 1.77 | % | 2.40 | % | ||||||||||||
Portfolio turnover ratee | 5 | % | 5 | % | 11 | % | 5 | % | 12 | % | 9 | % |
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 | 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 | 17 |
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. 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 non-U.S. issuers that may trade in non-U.S. markets. This 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”) using 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 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 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”); |
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Notes to Financial Statements (Unaudited) (Continued)
iSHARES®, INC.
• | 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”). |
The availability of observable inputs can vary from security to security and is affected by a wide variety of factors, including, for example, the type of security, whether the security is new and not yet established in the marketplace, the liquidity of markets, and other characteristics particular to the security. Inputs may include price information, volatility statistics, specific and broad credit data, liquidity statistics, and other factors. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3 of the fair value hierarchy.
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. 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. 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 inputs such as quoted market prices, dealer quotations or valuations provided by alternative pricing sources supported by observable inputs are classified within Level 2. These generally include 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 Level 2 investments 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, recent transactions in the same or similar instruments, 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 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.
NOTESTO FINANCIAL STATEMENTS | 19 |
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Notes to Financial Statements (Unaudited) (Continued)
iSHARES®, INC.
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, 2010, the value of each of the Fund’s investments was classified as a Level 1 Price. The breakdown of the Fund’s investments into major categories is disclosed in the Schedule of Investments.
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. Non-cash dividends received in the form of stock in an elective dividend, if any, are recorded as dividend income at fair value. Distributions received by the Fund may include a return of capital that is estimated by management. Such amounts are recorded as a reduction of the cost of the investments or reclassified to capital gains. 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. Purchases and sales of securities, income receipts and expense payments are translated into U.S. dollars on the respective dates of such transactions.
The Fund does not isolate the effect of fluctuations in foreign exchange rates from the effect of fluctuations in the market prices of securities. Such fluctuations are reflected by the Fund as a component of realized and unrealized gains and losses from investments for financial reporting purposes.
FOREIGN TAXES
The Fund may be subject to foreign taxes (a portion of which may be reclaimable) on income, corporate events, capital gains on investments or currency repatriation. All foreign taxes are recorded in accordance with the applicable foreign tax regulations and rates that exist in the foreign markets in which the Fund invests. These foreign taxes, if any, are paid by the Fund and are disclosed in the Statement of Operations. Foreign taxes payable as of February 28, 2010, 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, 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.
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Notes to Financial Statements (Unaudited) (Continued)
iSHARES®, INC.
FEDERAL INCOME TAXES
The Fund is treated as an entity separate from the Company’s other funds for federal income tax purposes. It is the policy of the Fund to qualify as a regulated investment company by complying with the provisions applicable to regulated investment companies, as defined under Subchapter M of the Internal Revenue Code of 1986, as amended, and to annually distribute substantially all of its 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, 2010.
As of August 31, 2009, 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, $13,844,901 and $228,196,854 expiring in 2012, 2013, 2014, 2015, 2016 and 2017, 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, 2010, the cost of investments for federal income tax purposes was $35,524,684,922. Net unrealized depreciation was $1,311,614,015, of which $2,351,890,733 represented gross unrealized appreciation on securities and $3,663,504,748 represented gross unrealized depreciation on securities.
Management has reviewed the tax positions as of February 28, 2010, 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. INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES
On December 1, 2009, Barclays PLC (“Barclays”) completed the sale of its interest in BlackRock Institutional Trust Company, N.A. (“BTC”), formerly known as Barclays Global Investors, N.A., and certain affiliated companies to BlackRock, Inc. (“BlackRock”, and such sale, the “Transaction”). BTC is a wholly-owned subsidiary of BlackRock.
The PNC Financial Services Group, Inc. (“PNC”), Bank of America Corporation (“BAC”) and Barclays are the largest stockholders of BlackRock. Due to the ownership structure, PNC is an affiliate for 1940 Act purposes, but BAC and Barclays are not.
Under the 1940 Act, upon completion of the Transaction on December 1, 2009, the Fund’s investment advisory agreement with BlackRock Fund Advisors (“BFA”), formerly known as Barclays Global Fund Advisors, was automatically terminated. The Board and shareholders of the Fund approved a new investment advisory agreement with BFA. The investment advisory fee rates and expense arrangements for the Fund remained the same after the Transaction.
NOTESTO FINANCIAL STATEMENTS | 21 |
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Notes to Financial Statements (Unaudited) (Continued)
iSHARES®, INC.
Pursuant to an Investment Advisory Agreement with the Company, BFA manages the investment of the Fund’s assets. BFA is a California corporation indirectly owned by BlackRock. Under the Investment Advisory Agreement, BFA 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, BFA 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 |
BFA has contractually agreed to waive a portion of its investment advisory fees for the Fund through June 30, 2011 in an amount equal to the investment advisory fees payable on the amount of the Fund’s investment in other iShares Funds.
The U.S. Securities and Exchange Commission has issued an exemptive order which permits BTC to serve as securities lending agent for the Fund, subject to applicable conditions. BTC is an affiliate of BFA, the Fund’s investment adviser. As securities lending agent, BTC 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, 2010, BTC earned securities lending agent fees of $4,016,844.
The Fund may invest its positive cash balance in certain money market funds managed by BFA or an affiliate. The income earned on these temporary cash investments is included in interest from affiliated issuers in the Statement of Operations.
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, 2010, the Fund held shares of the iShares MSCI Malaysia, iShares MSCI South Korea and iShares MSCI Taiwan Index Funds.
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Notes to Financial Statements (Unaudited) (Continued)
iSHARES®, INC.
Investments in issuers considered to be an affiliate of the Fund (excluding short-term investments) during the six months ended February 28, 2010, for purposes of Section 2(a)(3) of the 1940 Act, were as follows:
Name of Affiliated Issuer | Number of Shares Held Beginning of Period (in 000s) | Gross Additions (in 000s) | Gross Reductions (in 000s) | Number of Shares Held End of Period (in 000s) | Value at End of Period | Dividend Income | Net Realized Gain | ||||||||||
iShares MSCI Malaysia | |||||||||||||||||
Index Fund | 1,159 | 287 | 222 | 1,224 | $ | 13,085,287 | $ | 191,755 | $ | 950,557 | |||||||
iShares MSCI South Korea | |||||||||||||||||
Index Fund | 1,318 | 461 | 268 | 1,511 | 68,841,342 | 190,142 | 3,182,526 | ||||||||||
iShares MSCI Taiwan | |||||||||||||||||
Index Fund | 6,426 | 1,366 | 1,208 | 6,584 | 77,498,388 | 1,509,178 | 2,021,588 | ||||||||||
Jollibee Foods Corp. | 68,446 | 8,176 | 12,108 | 64,514 | 80,424,455 | 724,175 | 2,439,848 | ||||||||||
$ | 239,849,472 | $ | 2,615,250 | $ | 8,594,519 | ||||||||||||
Certain directors and officers of the Company are also officers of BTC and/or BFA.
3. INVESTMENT PORTFOLIO TRANSACTIONS
Purchases and sales of investments (excluding in-kind transactions and short-term investments) for the six months ended February 28, 2010, aggregated $3,376,304,228 and $1,617,802,369, respectively.
In-kind purchases and sales (see Note 4) for the six months ended February 28, 2010, aggregated $3,934,337,874 and $5,592,448,522, 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 an optimized representation of the securities involved in the Fund’s underlying 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 Bank and Trust Company, the administrator, to offset transfer and other transaction costs associated with the issuance and redemption of Creation Units.
From time to time, settlement of securities related to in-kind contributions or in-kind redemptions may be delayed. In such cases, securities related to in-kind contributions are reflected as “Due from custodian” and securities related to in-kind redemptions are reflected as “Securities related to in-kind transactions” in the Statement of Assets and Liabilities.
NOTESTO FINANCIAL STATEMENTS | 23 |
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Notes to Financial Statements (Unaudited) (Continued)
iSHARES®, INC.
5. LOANS OF PORTFOLIO SECURITIES
The Fund may lend its investment securities to approved borrowers, such as brokers, dealers and other financial institutions. The borrower pledges and maintains with the Fund collateral consisting of cash, an irrevocable letter of credit issued by a bank, or securities issued or guaranteed by the U.S. government. The initial collateral received by the Fund is required to have a value of at least 102% of the market value of the loaned securities for securities traded on U.S. exchanges and a value of at least 105% for all other securities. The collateral is maintained thereafter, at a value equal to at least 100% of the current market value of the securities on loan. The risks 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 BFA; such reinvestments are subject to investment risk.
As of February 28, 2010, the Fund had loaned securities which were collateralized by cash. The cash collateral received was invested in money market funds managed by BFA. The market value of the securities on loan as of February 28, 2010 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 BTC as securities lending agent.
6. SUBSEQUENT EVENTS
Management has evaluated the impact of all subsequent events on the Fund through the date the financial statements were available to be issued and has determined that there were no subsequent events requiring adjustment or disclosure in the financial statements.
24 | 2010 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
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Shareholder Meeting Results (Unaudited)
iSHARES®, INC.
Two separate special meetings of shareholders of iShares, Inc. were held on November 4, 2009. The proposals acted upon by shareholders at the special meetings and the results of the shareholder vote were as follows:
First Meeting
Shareholders of the Fund approved Proposal 1. Proposal 2 did not apply to the Fund.
Proposal 1
To approve a new investment advisory agreement between the Company and Barclays Global Fund Advisors (“BGFA”), on behalf of the Fund, which took effect upon the consummation of the Barclays PLC binding agreement to sell its interest in BGFA and certain affiliated companies to BlackRock, Inc. (the “Transaction”).
Votes For | Votes Against | Votes Abstaining | Broker Non-Votes* | |||
395,609,086 | 5,528,382 | 4,968,602 | 25,241,371 |
Proposal 2
To approve a change in the classification of certain funds’ investment objective from a fundamental investment policy to a non-fundamental investment policy.
SHAREHOLDER MEETING RESULTS | 25 |
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Shareholder Meeting Results (Unaudited) (Continued)
iSHARES®, INC.
Second Meeting
This proposal was approved by the shareholders of the Company on November 4, 2009. All nominees who previously served as Directors of the Company were re-elected and the term of their election commenced immediately. Robert S. Kapito was newly elected as a Director to the Company and the term of his election took effect upon the consummation of the Transaction.
Proposal 1**
To elect a Board of Directors of the Company.
Independent Director | Votes For | Votes Withheld | ||
George G.C. Parker | 1,597,646,058 | 46,083,560 | ||
J. Darrell Duffie | 1,517,311,684 | 126,417,934 | ||
Cecilia H. Herbert | 1,599,757,544 | 43,972,074 | ||
Charles A. Hurty | 1,599,463,459 | 44,266,159 | ||
John E. Kerrigan | 1,599,938,757 | 43,790,861 | ||
John E. Martinez | 1,599,890,206 | 43,839,412 | ||
Robert H. Silver | 1,601,631,280 | 42,098,338 | ||
Interested Director | Votes For | Votes Withheld | ||
Robert S. Kapito | 1,600,119,598 | 43,610,020 | ||
Lee T. Kranefuss | 1,117,041,744 | 526,687,874 |
* | Broker non-votes are proxies received by the Fund from brokers or nominees who did not receive instructions from the beneficial owner or other persons entitled to vote and who have no discretionary power to vote on a particular matter. Broker non-votes have the effect of a vote against the proposal. |
** | Denotes Company-wide proposal and voting results. |
26 | 2010 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
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Notes:
NOTES | 27 |
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 Russell Domestic Index Funds | Trading Symbol | |
iShares Russell 3000 | IWV | |
iShares Russell 3000 Growth | IWZ | |
iShares Russell 3000 Value | IWW | |
iShares Russell Top 200 | IWL | |
iShares Russell Top 200 Growth | IWY | |
iShares Russell Top 200 Value | IWX | |
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 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 Morningstar Domestic 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 Dow Jones Domestic Index Funds | ||
iShares Dow Jones U.S. | IYY | |
iShares KLD Socially Responsible Index Funds | ||
iShares FTSE KLD 400 Social | DSI | |
iShares FTSE KLD Select Social | KLD | |
iShares NYSE Domestic Index Funds | ||
iShares NYSE Composite | NYC | |
iShares NYSE 100 | NY |
iShares Domestic Specialty Index Funds | Trading Symbol | |
iShares S&P U.S. Preferred Stock | PFF | |
iShares Dow Jones Select Dividend | DVY | |
iShares North American Sector/Subsector Index Funds | ||
iShares S&P North American Technology Sector | IGM | |
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 Natural Resources Sector | IGE | |
iShares Domestic Sector Index Funds | ||
iShares Dow Jones U.S. Basic Materials Sector | IYM | |
iShares Dow Jones U.S. Consumer Goods Sector | IYK | |
iShares Dow Jones U.S. Consumer Services Sector | IYC | |
iShares Dow Jones U.S. Energy Sector | IYE | |
iShares Dow Jones U.S. Financial Sector | IYF | |
iShares Dow Jones U.S. Healthcare Sector | IYH | |
iShares Dow Jones U.S. Industrial Sector | IYJ | |
iShares Dow Jones U.S. Technology Sector | IYW | |
iShares Dow Jones U.S. Telecommunications Sector | IYZ | |
iShares Dow Jones U.S. Utilities Sector | IDU | |
iShares Domestic Subsector Index Funds | ||
iShares Dow Jones Transportation Average | IYT | |
iShares Dow Jones U.S. Aerospace & Defense | ITA | |
iShares Dow Jones U.S. Broker-Dealers | IAI | |
iShares Dow Jones U.S. Financial Services | IYG | |
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 Nasdaq Biotechnology | IBB | |
iShares Domestic Real Estate Index Funds | ||
iShares Cohen & Steers Realty Majors | ICF | |
iShares Dow Jones U.S. Real Estate | IYR | |
iShares FTSE NAREIT Real Estate 50 | FTY | |
iShares FTSE NAREIT Industrial/Office Capped | FIO | |
iShares FTSE NAREIT Mortgage Plus Capped | REM | |
iShares FTSE NAREIT Residential Plus Capped | REZ | |
iShares FTSE NAREIT Retail Capped | RTL | |
iShares Target Risk Index Funds | ||
iShares S&P Conservative Allocation | AOK | |
iShares S&P Moderate Allocation | AOM | |
iShares S&P Growth Allocation | AOR | |
iShares S&P Aggressive Allocation | AOA |
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The iShares® Family of Funds (Continued)
iShares International Country Index Funds | Trading Symbol | |
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 S&P/TOPIX 150 | ITF | |
iShares MSCI Malaysia | EWM | |
iShares MSCI Mexico Investable Market | EWW | |
iShares MSCI Netherlands Investable Market | EWN | |
iShares MSCI All Peru Capped | EPU | |
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 India Nifty 50 | INDY | |
iShares International Index Funds | ||
iShares MSCI ACWI ex US | ACWX | |
iShares MSCI EAFE | EFA | |
iShares MSCI EAFE Growth | EFG | |
iShares MSCI EAFE Value | EFV | |
iShares MSCI EAFE Small Cap | SCZ | |
iShares FTSE Developed Small Cap ex-North America | IFSM | |
iShares MSCI Emerging Markets | EEM | |
iShares MSCI Emerging Markets Eastern Europe | ESR | |
iShares MSCI BRIC | BKF | |
iShares MSCI EMU | EZU | |
iShares MSCI All Country Asia ex Japan | AAXJ | |
iShares MSCI Pacific ex-Japan | EPP | |
iShares S&P Asia 50 | AIA | |
iShares S&P Europe 350 | IEV | |
iShares S&P Latin America 40 | ILF | |
iShares International/Global Real Estate Index Funds | ||
iShares S&P Developed ex-U.S. Property | WPS | |
iShares FTSE EPRA/NAREIT Developed Real Estate ex-U.S. | IFGL | |
iShares FTSE EPRA/NAREIT Developed Asia | IFAS | |
iShares FTSE EPRA/NAREIT Developed Europe | IFEU | |
iShares FTSE EPRA/NAREIT North America | IFNA |
iShares Target Date Index Funds | Trading Symbol | |
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 Global Index Funds | ||
iShares MSCI ACWI | ACWI | |
iShares S&P Global 100 | IOO | |
iShares MSCI Kokusai | TOK | |
iShares International/Global Sector Index Funds | ||
iShares MSCI ACWI ex US Financials Sector | AXFN | |
iShares MSCI Emerging Markets Financials Sector | EMFN | |
iShares MSCI Emerging Markets Materials Sector | EMMT | |
iShares MSCI Europe Financials Sector | EUFN | |
iShares MSCI Far East Financials Sector | FEFN | |
iShares S&P Global Consumer Discretionary Sector | RXI | |
iShares S&P Global Consumer Staples Sector | KXI | |
iShares S&P Global Energy Sector | IXC | |
iShares S&P Global Financials Sector | IXG | |
iShares S&P Global Healthcare Sector | IXJ | |
iShares S&P Global Industrials Sector | EXI | |
iShares S&P Global Materials Sector | MXI | |
iShares S&P Global Technology Sector | IXN | |
iShares S&P Global Telecommunications Sector | IXP | |
iShares S&P Global Utilities Sector | JXI | |
iShares International/Global Theme Based and Specialty Index Funds | ||
iShares S&P Global Clean Energy | ICLN | |
iShares S&P Global Infrastructure | IGF | |
iShares S&P Emerging Markets Infrastructure | EMIF | |
iShares S&P Global Nuclear Energy | NUCL | |
iShares S&P Global Timber & Forestry | WOOD | |
iShares Dow Jones International Select Dividend | IDV | |
iShares U.S. Multisector Bond Funds | ||
iShares Barclays Aggregate | AGG | |
iShares Barclays Government/Credit | GBF | |
iShares Barclays Intermediate Government/Credit | GVI | |
iShares 10+ Year Government/Credit | GLJ | |
iShares U.S. Government Bond Funds | ||
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 U.S. Credit Bond Funds | ||
iShares Barclays Credit | CFT | |
iShares Barclays 1-3 Year Credit | CSJ | |
iShares Barclays Intermediate Credit | CIU | |
iShares iBoxx $ Investment Grade Corporate | LQD | |
iShares 10+ Year Credit | CLY | |
iShares iBoxx $ High Yield Corporate | HYG |
iSHARES FAMILYOF FUNDS | 29 |
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The iShares® Family of Funds (Continued)
iShares AMT-Free Municipal Bond Funds | Trading Symbol | |
iShares S&P National AMT-Free Municipal | MUB | |
iShares S&P Short Term National AMT-Free Municipal | SUB | |
iShares S&P California AMT-Free Municipal | CMF | |
iShares S&P New York AMT-Free Municipal | NYF | |
iShares 2012 S&P AMT-Free Municipal Series | MUAA | |
iShares 2013 S&P AMT-Free Municipal Series | MUAB | |
iShares 2014 S&P AMT-Free Municipal Series | MUAC | |
iShares 2015 S&P AMT-Free Municipal Series | MUAD | |
iShares 2016 S&P AMT-Free Municipal Series | MUAE | |
iShares 2017 S&P AMT-Free Municipal Series | MUAF |
iShares U.S. Securitized Bond Funds | Trading Symbol | |
iShares Barclays MBS | MBB | |
iShares International Bond Funds | ||
iShares JPMorgan USD Emerging Markets | EMB | |
iShares S&P/Citigroup International Treasury | IGOV | |
iShares S&P/Citigroup 1-3 Year International Treasury | ISHG |
The iShares Funds (“Funds”) are distributed by SEI Investments Distribution Co. (“SEI”). iShares® is a registered trademark of BlackRock Institutional Trust Company, N.A. The 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., MSCI Inc., MorningstarInc., The NASDAQ OMX Group, 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, endorsed or issued by Barclays Capital. None of these companies make any representation regarding the advisability of investing in the iShares Funds. Neither SEI, nor BlackRock Institutional Trust Company, N.A., nor any of their affiliates, are affiliated with the companies listed above. FXI does not make any warranty regarding the FTSE/Xinhua Index. All rights in the FTSE/Xinhua Index vest in FXI. Neither FTSE nor NAREIT makes any warranty regarding the FTSE NAREIT Real Estate 50/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.
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 2010 Semi-Annual Report.
iS-2350-0310
30 | 2010 iSHARES SEMI-ANNUAL REPORTTO SHAREHOLDERS |
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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.
Once you have enrolled, you will no longer receive shareholder reports and prospectuses 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 and is available to be viewed or downloaded.
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 notifications sent.
Your information and e-mail 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.
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For more information:
WWW.iSHARES.COM
1-800-iShares (1-800-474-2737)
This report is by intended for the Fund’s shareholders. It may not be distributed to prospective investors unless it is preceded or accompanied by the current prospectus
Investing involves risk, including possible loss of principal.
The iShares Funds are distributed by SEI Investments Distribution Co. (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 BlackRock Institutional Trust Company, N.A., nor any of their affiliates, are affiliated with the company listed above.
A description of the policies that the Funds use 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 ending 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.
©2010 BlackRock Institutional Trust Company, N.A. All rights reserved. iShares® is a registered trademark of BlackRock Institutional Trust Company, N.A. All other trademarks, servicemarks, or registered trademarks are the property of their respective owners.
iS-SAR-85-0210
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Item 2. | Code of Ethics. |
Not applicable to this semi-annual filing.
Item 3. | Audit Committee Financial Expert. |
Not applicable to this semi-annual filing.
Item 4. | Principal Accountant Fees and Services. |
Not applicable to this semi-annual filing.
Item 5. | Audit Committee of Listed Registrants. |
Not applicable to this semi-annual filing.
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Item 6. | 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 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 23, 2010 |
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 23, 2010 | ||
By: | /s/ Jack Gee | |
Jack Gee, Treasurer and Chief Financial Officer (Principal Financial Officer) | ||
Date: April 23, 2010 |