UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D. C. 20549
FORM N-CSR
Investment Company Act file number 811-7347
ADVISOR FUNDS II
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(Exact Name of Registrant as Specified in Charter)
One South Street, Baltimore, Maryland 21202
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(Address of Principal Executive Offices) (Zip Code)
Registrant's Telephone Number, including Area Code: (410) 895-5000
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Daniel O. Hirsch, Esq.
One South Street
Baltimore, Maryland 21202
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(Name and Address of Agent for Service)
Date of fiscal year end: 12/31
Date of reporting period: 6/30/03
ITEM 1. REPORT TO STOCKHOLDERS
[Scudder Investments logo]
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Semiannual Report to Shareholders | ||
June 30, 2003 | ||
Contents |
<Click Here> Performance Summary <Click Here> Portfolio Management Review <Click Here> Portfolio Summary Scudder EAFE® Equity Index Fund <Click Here> Financial Statements <Click Here> Financial Highlights <Click Here> Notes to Financial Statements EAFE® Equity Index Portfolio <Click Here> Investment Portfolio <Click Here> Financial Statements <Click Here> Financial Highlights <Click Here> Notes to Financial Statements <Click Here> Shareholder Meeting Results <Click Here> Account Management Resources <Click Here> Privacy Statement |
Scudder Investments is part of Deutsche Asset Management, which is the marketing name in the US for the asset management activities of Deutsche Bank AG, Deutsche Investment Management Americas Inc., Deutsche Asset Management Inc., Deutsche Asset Management Investment Services Ltd., Deutsche Bank Trust Company Americas and Scudder Trust Company.
This report must be preceded or accompanied by a prospectus. To obtain a prospectus for any of our funds, refer to the Account Management Resources information provided in the back of this booklet. The prospectus contains more complete information, including a description of the risks of investing in the fund, management fees and expenses. Please read it carefully before you invest or send money.
Fund shares are not FDIC-insured and are not deposits or other obligations of, or guaranteed by, any bank. Fund shares involve investment risk, including possible loss of principal.
Average Annual Total Returns* | |||||
Scudder EAFE® Equity Index Fund | 6-Month++ | 1-Year | 3-Year | 5-Year | Life of Class** |
| Premier Class | 8.97% | -7.19% | -14.24% | -4.47% | .16% |
| MSCI EAFE® Index+ | 9.47% | -6.46% | -13.52% | -4.00% | .22% |
Sources: Lipper Inc. and Deutsche Asset Management, Inc.
++ Total returns shown for less than one year are not annualized.Net Asset Value and Distribution Information | |
Premier Class | |
| Net Asset Value: 6/30/03 | $ 8.38 |
| 12/31/02 | $ 7.77 |
| Distribution Information: Six Months: Income Dividends | $ .08 |
Premier Class Lipper Rankings* - International Funds Category | ||||
Period | Rank | Number of Funds Tracked | Percentile Ranking | |
| 1-Year | 283 | of | 818 | 35 |
| 3-Year | 266 | of | 617 | 44 |
| 5-Year | 253 | of | 461 | 55 |
Rankings are historical and do not guarantee future results. Rankings are based on total return with distributions reinvested.
Source: Lipper Inc.
Growth of an Assumed $5,000,000 Investment* |
[] Scudder EAFE® Equity Index Fund - Premier Class [] MSCI EAFE® Index+ |
 |
Yearly periods ended June 30 |
Comparative Results* | |||||
Scudder EAFE® Equity Index Fund | 1-Year | 3-Year | 5-Year | Life of Class** | |
Premier Class | Growth of $5,000,000 | $4,640,500 | $3,154,000 | $3,977,500 | $5,058,000 |
| Average annual total return | -7.19% | -14.24% | -4.47% | .16% | |
| MSCI EAFE® Index+ | Growth of $5,000,000 | $4,677,000 | $3,234,000 | $4,077,000 | $5,080,500 |
| Average annual total return | -6.46% | -13.52% | -4.00% | .22% | |
The growth of $5,000,000 is cumulative.
The minimum investment for the Premier Class is $5,000,000.
Notes to Performance Summary |
* Returns and rankings during all periods shown reflect a fee waiver and/or expense reimbursement. Without this waiver/reimbursement, returns and rankings would have been lower.
** The Fund commenced operations on January 24, 1996. Index comparisons begin January 31, 1996.
+ The Morgan Stanley Capital International (MSCI) Europe, Australasia and Far East (EAFE) Index is an unmanaged capitalization-weighted index that tracks international stock performance in the 21 developed markets of Europe, Australasia and the Far East. Index returns assume reinvestment of dividends and, unlike Fund returns, do not reflect any fees or expenses. It is not possible to invest directly into an index.
All performance is historical, assumes reinvestment of all dividends and capital gains, and is not indicative of future results. Investment return and principal value will fluctuate, so an investor's shares, when redeemed, may be worth more or less than when purchased. Performance figures do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.
Investments in funds involve risk. Some funds have more risk than others. These include funds that allow exposure to or otherwise concentrate investments in certain sectors, geographic regions, security types, market capitalization or foreign securities (e.g., political or economic instability, which can be accentuated in emerging market countries). Please read this fund's prospectus for specific details regarding its investments and risk profile.
Please call (800) 621-1048 for the fund's most up-to-date performance.
In the following interview, on behalf of the team, Lead Portfolio Manager James Creighton discusses Scudder EAFE® Equity Index Fund's performance and the market environment during the six-month period ended June 30, 2003.
Q: How did Scudder EAFE® Equity Index Fund perform over the first half of 2003?
A: Scudder EAFE® Equity Index Fund slightly underperformed its benchmark, the MSCI EAFE® Index, for the six months ended June 30, 2003.1 The fund produced a return of 8.97% for the semiannual period, as compared with 9.47% for the benchmark. The fund slightly outperformed the Lipper International Equity Funds category average semiannual return of 8.60%.2
1 The Morgan Stanley Capital International (MSCI) Europe, Australasia and Far East (EAFE) Index is an unmanaged capitalization-weighted index that tracks international stock performance in the 21 developed markets of Europe, Australasia and the Far East. Index returns assume reinvestment of dividends and, unlike fund returns, do not reflect any fees or expenses. It is not possible to invest directly into an index.2 Lipper figures represent the average of the total returns reported by all of the mutual funds designated by Lipper Inc. as falling into the respective categories indicated.
Q: What were the primary factors affecting the international equity markets during the past six months?
A: International equities, like the broad US equity markets, experienced a welcome turnabout from the past three years, gaining ground for the six months ended June 30, 2003. Still, the MSCI EAFE® Index saw divergent performance within the semiannual period.
During the first quarter 2003, the MSCI EAFE® Index declined 8.21% as international equities reversed course from the rebound of the fourth quarter of 2002, due to diversity of geopolitical concerns, including the war in Iraq and continued weakness in the global economy. The economies of Europe were especially sluggish, even though the general expectation in Europe was for ongoing stimulative policies. After several years of declines in the international equity markets, the general view was that most of the excesses of the 1990s had been erased, although concerns about US corporate scandals continued to plague the larger international markets.
During the second quarter 2003, the MSCI EAFE® Index rose by an impressive 19.27%. Nearly 3.5% of the index's quarterly gains for US investors was attributable to currency, as the US dollar continued its decline. In local-currency terms, the index increased by 14.2%, still a significant advance by any measure. Indeed, with the exception of Hong Kong, which remained affected by the economic implications of the SARS virus, all major overseas equity markets generated double-digit returns for the quarter. All major market sectors also scored double-digit gains during the quarter, except for consumer nondurables, which still produced positive returns. The primary reason for the rally was the signs of improvement shown in the US economy. International economies embraced the signals and advanced sharply.
Q: Which countries within the MSCI EAFE® Index were the best and worst performers?
A: On a regional basis, the Pacific Basin excluding Japan gained 16.03% in US dollar terms, as measured by the MSCI Pacific ex-Japan Index, outperforming Europe's return of 10.77% in US dollar terms, as measured by the MSCI Europe Index, for the semiannual period.3 Japan, as measured by the MSCI Japan Index, produced a six-month return of 2.92% in US dollar terms.4
3 The MSCI Pacific ex-Japan Index is an unmanaged index that reflects the performance of securities listed on the stock exchanges of four countries in the Pacific region, excluding Japan. The MSCI Europe Index is an unmanaged index representing the 16 developed markets of Europe. Benchmark returns are US dollar denominated and do not reflect fees or expenses. The indices are not available for direct investment.4 The MSCI Japan Index is an unmanaged index of equity securities listed on the Tokyo Stock Exchange. Benchmark returns are US dollar denominated and do not reflect fees or expenses. The index is not available for direct investment.
Within the individual country markets, the best performance for the semiannual period came from New Zealand, Spain and Austria. The Netherlands, Japan and Hong Kong were the worst performers within the MSCI EAFE® Index. The UK remains the largest country in the MSCI EAFE® Index based on its 27.4% of the market capitalization of the index. The more defensive UK market within the MSCI Europe Index returned 8.25% in US dollar terms for the semiannual period.
Consumer nondurables was the best-performing sector within the MSCI EAFE® Index for the six-month period. Banks and technology were the worst-performing sectors in the index during the first half of the year.
Q: What were the major changes to the MSCI EAFE® Index during the semiannual period?
A: On May 30, 2003, the annual full-country review of the MSCI EAFE® Index became effective after the market close in each member country. This annual reconstitution was notable as the first full rebalance since MSCI completed its transition to free-float adjustment at the end of May 2002. Specifically, there were 69 additions, 51 deletions, and 252 free-float adjustments to the MSCI EAFE® Index, which measures 21 developed equity markets, excluding North America. These changes had several effects. Most notably, the Pacific Basin, including Japan, increased its MSCI EAFE® Index weight by 0.40%, with a corresponding drop in Europe. Within Europe, France experienced the greatest increase in index weight, while Switzerland experienced the largest decrease. On a sector level, financials grew in weight within the index after the changes, accounting for 24.2% of the index's market capitalization at June 30, 2003. Health care saw the greatest decrease in index weighting. On a security level, the top five index weight increases were Spain's Banco Popular Espanol, Japan's Toyota Motor and Honda Motor, France's Vivendi Environment and Italy's Banco Popolare di Verona e Novara. The top five weight index decreases were Switzerland's Novartis and UBS, Italy's Eni, the UK's British Petroleum and France's Sanofi-Synthelabo.
Q: What investment strategies do you intend to pursue in the fund?
A: As managers of an index fund designed to replicate as closely as possible, before expenses, the broad diversification and total return of the MSCI EAFE® Index, we neither evaluate short-term fluctuations in the fund's performance nor manage according to a given outlook for the equity markets or the economies in general. Still, we will continue monitoring economic conditions and how they affect the financial markets.
The views expressed in this report reflect those of the portfolio managers only through the end of the period of the report as stated on the cover. The management team's views are subject to change at any time based on market and other conditions and should not be construed as a recommendation.
Geographic Diversification (Excludes Cash Equivalents) | 6/30/03 | 12/31/02 |
| United Kingdom | 28% | 28% |
| Japan | 21% | 22% |
| France | 9% | 9% |
| Switzerland | 7% | 9% |
| Germany | 6% | 6% |
| Netherlands | 5% | 5% |
| Australia | 5% | 4% |
| Italy | 4% | 4% |
| Spain | 4% | 3% |
| Other | 11% | 10% |
| 100% | 100% | |
Sector Diversification (Excludes Cash Equivalents) | 6/30/03 | 12/31/02 |
| Financials | 25% | 24% |
| Consumer Discretionary | 13% | 13% |
| Health Care | 10% | 11% |
| Energy | 9% | 9% |
| Consumer Staples | 8% | 10% |
| Industrials | 8% | 8% |
| Telecommunication Services | 8% | 7% |
| Materials | 6% | 6% |
| Information Technology | 6% | 6% |
| Other | 7% | 6% |
| 100% | 100% | |
Geographic diversification and sector diversification are subject to change.
Ten Largest Equity Holdings at June 30, 2003 | Country | Percent |
| 1. BP PLC Exporter and producer of oil and natural gas | United Kingdom | 2.6% |
| 2. Vodafone Group PLC Provider of mobile telecommunication services | United Kingdom | 2.2% |
| 3. HSBC Holdings PLC Provider of international banking and financial services | United Kingdom | 2.1% |
| 4. GlaxoSmithKline PLC Developer of vaccines and health-related consumer products | United Kingdom | 2.0% |
| 5. Total SA Producer of oil and natural gas | France | 1.6% |
| 6. Royal Dutch Petroleum Co. Exporter and producer of oil and natural gas | Netherlands | 1.6% |
| 7. Novartis AG Manufacturer of pharmaceutical and nutrition products | Switzerland | 1.6% |
| 8. Nestle SA Producer and seller of food products | Switzerland | 1.4% |
| 9. Nokia Oyj Manufacturer of telecommunication systems and equipment | Finland | 1.3% |
| 10. Royal Bank of Scotland Group PLC Provider of a wide range of financial services | United Kingdom | 1.3% |
Portfolio holdings are subject to change.
For more complete details about the fund's investment portfolio, see page 20. A quarterly Fund Summary and Portfolio Holdings are available upon request.
Statement of Assets and Liabilities as of June 30, 2003 (Unaudited) | |
| Assets | |
| Investment in the EAFE® Equity Index Portfolio, at value | $ 166,077,768 |
| Receivable for Fund shares sold | 91,138 |
| Total assets | 166,168,906 |
| Liabilities | |
| Payable for Fund shares redeemed | 525,573 |
| Other accrued expenses and payables | 51,394 |
| Total liabilities | 576,967 |
| Net assets, at value | $ 165,591,939 |
| Net Assets | |
| Net assets consist of: Undistributed net investment income | 1,584,173 |
| Net unrealized appreciation (depreciation) on investment | (13,050,822) |
| Accumulated net realized gain (loss) | (48,203,545) |
| Paid-in capital | 225,262,133 |
| Net assets, at value | $ 165,591,939 |
| Net Asset Value | |
| Net Asset Value, offering and redemption price per share ($165,591,939 / 19,756,983 shares of capital stock, $.001 par value, unlimited number of shares authorized) | $ 8.38 |
The accompanying notes are an integral part of the financial statements.
Statement of Operations for the six months ended June 30, 2003 (Unaudited) | |
| Investment Income | |
| Net investment income allocated from the EAFE® Equity Index Portfolio: Dividends (net of foreign taxes withheld of $362,473) | $ 2,501,761 |
| Dividends from Cash Management Fund Institutional | 32,321 |
| Interest | 41,104 |
| Securities lending income | 51,832 |
| Expenses(a) | (254,872) |
| Total Income | 2,372,146 |
| Expenses: Administrator service fee | 109,927 |
| Auditing fees | 22,942 |
| Legal fees | 26,006 |
| Trustees' fees and expenses | 2,103 |
| Reports to shareholders | 26,289 |
| Registration fees | 10,882 |
| Other | 7,589 |
| Total expenses, before expense reductions | 205,738 |
| Expense reductions | (169,659) |
| Total expenses, after expense reductions | 36,079 |
| Net investment income (loss) | 2,336,067 |
| Realized and Unrealized Gain (Loss) on Investment Transactions | |
| Net realized gain (loss) from: Investments | (3,699,701) |
| Futures | 1,330,683 |
| Foreign currency related transactions | 1,097,245 |
| (1,271,773) | |
| Net unrealized appreciation (depreciation) during the period on investments | 15,205,625 |
| Net gain (loss) on investment transactions | 13,933,852 |
| Net increase (decrease) in net assets resulting from operations | $ 16,269,919 |
a For the six months ended June 30, 2003, the Advisor for the EAFE® Equity Index Portfolio waived fees in the amount of $43,892, all of which was allocated to the Fund.
The accompanying notes are an integral part of the financial statements.
Statement of Changes in Net Assets | ||
| Increase (Decrease) in Net Assets | Six Months Ended June 30, 2003 | Year Ended December 31, 2002 |
| Operations: Net investment income (loss) | $ 2,336,067 | $ 2,499,067 |
| Net realized gain (loss) on investment transactions | (1,271,773) | (6,482,098) |
| Net unrealized appreciation (depreciation) on investment transactions during the period | 15,205,625 | (19,466,386) |
| Net increase (decrease) in net assets resulting from operations | 16,269,919 | (23,449,417) |
| Distributions to shareholders from: Net investment income | (1,390,868) | (2,225,697) |
| Fund share transactions: Proceeds from shares sold | 120,715,082 | 104,603,124 |
| Subscription in-kind | 11,066,674 | - |
| Reinvestment of distributions | 1,337,051 | 2,138,675 |
| Cost of shares redeemed | (119,059,441) | (84,777,796) |
| Net increase (decrease) in net assets from Fund share transactions | 14,059,366 | 21,964,003 |
| Increase (decrease) in net assets | 28,938,417 | (3,711,111) |
| Net assets at beginning of period | 136,653,522 | 140,364,633 |
| Net assets at end of period (includes undistributed net investment income and accumulated distributions in excess of net investment income of $1,584,173 and $638,974, respectively) | $ 165,591,939 | $ 136,653,522 |
The accompanying notes are an integral part of the financial statements.
Years Ended December 31, | 2003a | 2002 | 2001 | 2000b | 1999 | 1998c |
| Selected Per Share Data | ||||||
| Net asset value, beginning of period | $ 7.77 | $ 9.46 | $ 12.27 | $ 14.58 | $ 11.59 | $ 9.98 |
| Income (loss) from investment operations: Net investment income (loss) | .12d | .16d | .19 | .25 | .08 | .16 |
| Net realized and unrealized gain (loss) on investment transactions | .57 | (1.72) | (2.87) | (2.47) | 3.15 | 1.81 |
Total from investment operations | .69 | (1.56) | (2.68) | (2.22) | 3.23 | 1.97 |
| Less distributions from: Net investment income | (.08) | (.13) | (.13) | (.02) | (.08) | (.16) |
| In excess of net investment income | - | - | - | - | (.03) | (.09) |
| Net realized gains on investment transactions | - | - | - | (.07) | (.13) | (.01) |
| In excess of net realized gain | - | - | - | - | - | (.10) |
Total distributions | (.08) | (.13) | (.13) | (.09) | (.24) | (.36) |
| Net asset value, end of period | $ 8.38 | $ 7.77 | $ 9.46 | $ 12.27 | $ 14.58 | $ 11.59 |
| Total Return (%)e | 8.97** | (16.63) | (21.75) | (15.22) | 27.95 | 19.81 |
| Ratios to Average Net Assets and Supplemental Data | ||||||
| Net assets, end of period ($ millions) | 166 | 137 | 140 | 171 | 120 | 42 |
| Ratio of expenses before expense reductions, including expenses of the EAFE® Equity Index Portfolio (%) | .69* | .65 | .63 | .65 | .71 | .83 |
| Ratio of expenses after expense reductions, including expenses of the EAFE® Equity Index Portfolio (%) | .40* | .40 | .40 | .40 | .40 | .40 |
| Ratio of net investment income (loss) (%) | 1.58f** | 1.83 | 1.68 | 1.59 | 1.56 | 1.50 |
| a For the six months ended June 30, 2003 (Unaudited). b On April 30, 2000, the Institutional Class was renamed the Premier Class. c Advisor Class shares were converted to Institutional Class shares on July 10, 1998. d Based on average shares outstanding during the period. e Total return would have been lower had certain expenses not been reduced. f The ratio for the six months ended June 30, 2003 has not been annualized since the Fund believes it would not be appropriate because the Fund's income is not earned ratable throughout the fiscal year. * Annualized ** Not annualized | ||||||
A. Significant Accounting Policies
EAFE® Equity Index Fund - Premier Class ("Scudder EAFE® Equity Index Fund" or the "Fund") is a diversified series of the Scudder Advisor Funds II (formerly BT Advisor Funds) (the "Trust") which is registered under the Investment Company Act of 1940, as amended (the "1940 Act"), as an open-end management investment company organized as a Massachusetts business trust.
The Fund seeks to achieve its investment objective by investing substantially all of its assets in the EAFE® Equity Index Portfolio (the "Portfolio"), a diversified, open-end management investment company advised by Deutsche Asset Management, Inc. ("DeAM, Inc."). Details concerning the Portfolio's investment objective and policies and the risk factors associated with the Portfolio's investments are described in the Prospectus and Statements of Additional Information.
On June 30, 2003, the Fund owned approximately 100% of the Portfolio. The financial statements of the Portfolio, including the Investment Portfolio, are contained elsewhere in this report and should be read in conjunction with the Fund's financial statements.
The Fund's financial statements are prepared in accordance with accounting principles generally accepted in the United States of America which require the use of management estimates. Actual results could differ from those estimates. The policies described below are followed consistently by the Fund in the preparation of its financial statements.
Security Valuation. The Fund determines the valuation of its investment in the Portfolio by multiplying its proportionate ownership of the Portfolio by the total value of the Portfolio's net assets.
The Portfolio's policies for determining the value of its net assets are discussed in the Portfolio's financial statements which accompany this report.
Federal Income Taxes. The Fund's policy is to comply with the requirements of the Internal Revenue Code, as amended, which are applicable to regulated investment companies, and to distribute all of its taxable income to its shareholders. Accordingly, the Fund paid no federal income taxes and no federal income tax provision was required.
At December 31, 2002, the Fund had a net tax basis capital loss carryforward of approximately $42,812,000 which may be applied against any realized net taxable capital gains of each succeeding year until fully utilized or until December 31, 2008 ($13,832,000), December 31, 2009 ($14,051,000) and December 31, 2010 ($14,930,000), the respective expiration dates, whichever occurs first.
In addition, from November 1, 2002 through December 31, 2002, the Fund incurred approximately $334,000 of net realized capital losses. As permitted by tax regulations, the Fund intends to elect to defer these losses and treat them as arising in the fiscal year ended December 31, 2003.
Distribution of Income and Gains. Distributions of net investment income, if any, are made annually. Net realized gains from investment transactions, in excess of available capital loss carryforwards, would be taxable to the Fund if not distributed, and, therefore, will be distributed to shareholders at least annually.
The timing and characterization of certain income and capital gains distributions are determined annually in accordance with federal tax regulations which may differ from accounting principles generally accepted in the United States of America. As a result, net investment income (loss) and net realized gain (loss) on investment transactions for a reporting period may differ significantly from distributions during such period. Accordingly, the Fund may periodically make reclassifications among certain of its capital accounts without impacting the net asset value of the Fund.
The net unrealized appreciation/depreciation of the Fund's investment in the Portfolio consists of an allocated portion of the Portfolio's appreciation/depreciation. Please refer to the Portfolio's financial statements for a breakdown of the appreciation/depreciation from investments.
At December 31, 2002, the Fund's components of distributable earnings (accumulated losses) on a tax-basis were as follows:
| Undistributed ordinary income* | $ 1,094,207 |
| Undistributed net long-term capital gains | $ - |
| Capital loss carryforwards | $ (42,812,000) |
In addition, during the years ended December 31, 2002 and December 31, 2001 the tax character of distributions paid to shareholders by the Fund is summarized as follows:
2002 | 2001 | |
| Distributions from ordinary income* | $ (2,225,697) | $ (1,894,656) |
* For tax purposes short-term capital gains distributions are considered ordinary income distributions.
The tax character of current year distributions will be determined at the end of the current fiscal year.
Other. The Fund receives a daily allocation of the Portfolio's net investment income and net realized and unrealized gains and losses in proportion to its investment in the Portfolio. Expenses directly attributed to a fund are charged to that fund, while expenses which are attributable to the Trust are allocated among the funds in the Trust on the basis of relative net assets.
B. Related Parties
Scudder Investments is part of Deutsche Asset Management Inc., which is the marketing name in the US for the asset management activities of Deutsche Bank AG. Deutsche Asset Management, Inc. ("DeAM, Inc." or the "Advisor") is the Advisor for the Portfolio and Investment Company Capital Corp. ("ICCC" or the "Administrator") is the Administrator for the Fund, both wholly owned subsidiaries of Deutsche Bank AG.
Administrator Service Fee. For its services as Administrator, ICCC receives a fee (the "Administrator Service Fee") of 0.15% of the Fund's average daily net assets, computed and accrued daily and payable monthly.
For the six months ended June 30, 2003, the Advisor and Administrator contractually agreed to waive their fees and reimburse expenses of the Fund to the extent necessary to maintain the annualized expenses at 0.40%, including expenses allocated from the Portfolio. Accordingly, for the six months ended June 30, 2003, the Administrator Service Fee was $109,927, of which all was waived. In addition, under this arrangement the Advisor and Administrator reimbursed the Fund in the amount of $59,732.
Trustees' Fees and Expenses. The Fund pays each Trustee not affiliated with the Advisor retainer fees plus specified amounts for attended board and committee meetings.
C. Share Transactions
The following table summarizes share and dollar activity in the Fund:
Six Months Ended | Year Ended | |||
Shares | Dollars | Shares | Dollars | |
| Shares sold | ||||
| Premier Class | 15,516,305 | $ 120,715,082 | 12,125,045 | $ 104,603,124 |
| Subscriptions in-kind | ||||
| Premier Class | 1,534,906 | $ 11,066,674 | - | - |
| Shares issued to shareholders in reinvestment of distributions | ||||
| Premier Class | 184,931 | $ 1,337,051 | 275,958 | $ 2,138,675 |
| Shares redeemed | ||||
| Premier Class | (15,060,582) | $ (119,059,441) | (9,654,892) | $ (84,777,796) |
| Net increase (decrease) | ||||
| Premier Class | 2,175,560 | $ 14,059,366 | 2,746,111 | $ 21,964,003 |
D. Concentration of Ownership
From time to time the Fund may have a concentration of several shareholders holding a significant percentage of shares outstanding. Investment activities of these shareholders could have a material impact on the Fund.
At June 30, 2003 there were two shareholders who held 37% and 29% of the outstanding shares of the Fund.
(The following financial statements of the EAFE® Equity Index Portfolio should be read in conjunction with the Fund's financial statements.)
Shares | Value ($) | |
Common Stocks 91.7% | ||
| Australia 4.7% | ||
| Alumina Ltd. | 32,621 | 89,040 |
| Amcor Ltd. | 24,159 | 131,562 |
| AMP Diversified Property Trust | 6,756 | 13,819 |
| AMP Ltd. | 34,800 | 115,993 |
| Aristocrat Leisure Ltd. | 9,508 | 8,481 |
| Australia & New Zealand Banking Group Ltd.* | 39,737 | 495,949 |
| Australian Gas & Light Co., Ltd. | 13,042 | 95,775 |
| Australian Stock Exchange Ltd. | 1,531 | 12,855 |
| BHP Billiton Ltd. | 99,556 | 576,869 |
| BHP Steel Ltd. | 18,166 | 45,321 |
| Boral Ltd. | 13,615 | 46,202 |
| Brambles Industries Ltd. | 28,346 | 86,877 |
| Centro Properties Group | 9,369 | 25,070 |
| CFS Gandel Retail Trust | 40,976 | 36,549 |
| Coca-Cola Amatil Ltd. | 12,036 | 46,091 |
| Cochlear Ltd. | 1,114 | 24,131 |
| Coles Myer Ltd. | 29,901 | 140,372 |
| Commonwealth Bank of Australia | 32,934 | 652,676 |
| Commonwealth Property Office Fund | 22,142 | 17,819 |
| Computershare Ltd. | 10,718 | 13,442 |
| CSL Ltd. | 4,662 | 37,363 |
| CSR Ltd. | 25,654 | 33,377 |
| Deutsche Office Trust | 19,869 | 14,924 |
| Foster's Group Ltd. | 58,031 | 163,847 |
| Futuris Corp, Ltd. | 10,267 | 11,568 |
| General Property Trust | 55,720 | 109,116 |
| Harvey Norman Holdings Ltd. | 9,201 | 15,488 |
| Insurance Australia Group Ltd. | 48,102 | 109,683 |
| Investa Property Group | 17,615 | 23,391 |
| James Hardie Industries NV | 10,043 | 47,417 |
| John Fairfax Holdings Ltd. | 18,251 | 35,251 |
| Leighton Holdings | 4,873 | 32,681 |
| Lend Lease Corp, Ltd. | 10,876 | 60,905 |
| Lion Nathan Ltd. | 5,624 | 20,217 |
| Macquarie Bank Ltd. | 5,570 | 107,583 |
| Macquarie Goodman Industrial Trust | 18,512 | 18,871 |
| Macquarie Infrastructure Group | 51,290 | 123,488 |
| Mayne Group Ltd. | 22,896 | 42,073 |
| Mirvac Group | 18,279 | 54,429 |
| National Australia Bank Ltd. | 40,875 | 918,329 |
| Newcrest Mining Ltd. | 6,439 | 33,035 |
| Onesteel Ltd. | 8,598 | 11,071 |
| Orica Ltd. | 7,714 | 56,028 |
| Origin Energy Ltd. | 16,065 | 43,635 |
| Pacific Dunlop Ltd.* | 2,546 | 9,989 |
| Paperlinx Ltd. | 6,188 | 19,007 |
| Patrick Corp, Ltd.* | 3,376 | 28,415 |
| Principal Office Fund | 15,280 | 15,781 |
| Publishing & Broadcasting Ltd. | 1,801 | 11,933 |
| QBE Insurance Group Ltd. | 16,746 | 104,670 |
| Rinker Group Ltd. | 25,654 | 90,153 |
| Rio Tinto Ltd.* | 8,712 | 170,665 |
| Santos Ltd. | 15,472 | 61,220 |
| Sonic Healthcare Ltd. | 3,189 | 14,009 |
| Southcorp Ltd. | 16,569 | 31,336 |
| Stockland (REIT) | 24,074 | 80,888 |
| Suncorp Metway Ltd. | 14,784 | 115,013 |
| TAB Ltd. | 8,356 | 18,213 |
| Tabcorp Holding Ltd. | 10,270 | 74,179 |
| Telstra Corp, Ltd. | 61,735 | 182,171 |
| The News Corp, Ltd. | 53,399 | 329,113 |
| The News Corp, Ltd. | 39,568 | 297,206 |
| Toll Holdings Ltd. | 3,949 | 18,751 |
| Transurban Group | 9,690 | 30,998 |
| Wesfarmers Ltd. | 10,560 | 179,176 |
| Westfield Holding Ltd. | 11,840 | 115,931 |
| Westfield Trust (REIT)* | 56,962 | 131,795 |
| Westfield Trust | 1,936 | 4,479 |
| Westpac Banking Corp, Ltd. | 46,851 | 510,585 |
| Westralian Sands Ltd. | 2,479 | 6,733 |
| WMC Resources Ltd.* | 32,696 | 76,966 |
| Woodside Petroleum Ltd. | 13,110 | 108,848 |
| Woolworths Ltd. | 27,556 | 231,375 |
7,868,261 | ||
| Austria 0.2% | ||
| Boehler-Uddeholm AG | 260 | 14,370 |
| Erste Bank der Oesterreichischen Sparkassen AG | 660 | 58,321 |
| Flughafen Wien AG | 250 | 9,086 |
| Immofinanz Immobilien Anlagen AG | 3,785 | 27,256 |
| Mayr Melnhof Karton AG* | 150 | 12,490 |
| OMV AG | 330 | 39,646 |
| RHI AG | 250 | 2,971 |
| Telekom Austria AG | 5,577 | 63,275 |
| VA Technologie AG* | 260 | 6,870 |
| Verbund* | 110 | 10,135 |
| Voest-Alpine Stahl AG | 320 | 12,637 |
| Wienerberger AG | 820 | 14,407 |
271,464 | ||
| Belgium 1.0% | ||
| Agfa Gevaert NV | 3,209 | 68,137 |
| Barco NV | 214 | 12,803 |
| Bekaert NV | 369 | 17,246 |
| Cofinimmo | 119 | 14,349 |
| Colruyt NV* | 399 | 27,583 |
| Compagnie Maritime Belge SA* | 166 | 6,577 |
| D'ieteren NV | 90 | 12,898 |
| Delhaize Group | 2,081 | 63,327 |
| Dexia | 17,075 | 215,885 |
| Electrabel NPV* | 790 | 201,307 |
| Fortis, Strip VVPR* | 2,223 | 51 |
| Fortis* | 27,160 | 471,580 |
| Groupe Bruxelles Lambert SA | 1,839 | 83,206 |
| Interbrew | 4,075 | 90,549 |
| KBC Bankverzekeringsholding | 2,402 | 94,307 |
| Mobistar SA | 545 | 22,399 |
| Omega Pharma SA | 424 | 12,903 |
| Solvay SA | 1,652 | 113,824 |
| UCB SA* | 2,390 | 65,485 |
| Umicore | 395 | 20,471 |
1,614,887 | ||
| Denmark 0.7% | ||
| A P Moller - Maersk AS "B" | 29 | 156,875 |
| Bang & Olufsen AS | 261 | 7,100 |
| Carlsberg AS | 600 | 21,468 |
| Coloplast AS | 406 | 31,375 |
| Danisco AS | 1,398 | 54,774 |
| Danske Bank AS | 13,462 | 262,162 |
| De Sammensluttede Vognmaend af 13-7-1976 AS | 462 | 11,889 |
| FLS Industries AS | 744 | 6,209 |
| GN Store Nord AS | 5,156 | 21,197 |
| Group 4 Falck AS | 1,922 | 31,934 |
| H. Lundbeck AS | 2,105 | 42,620 |
| ISS AS | 1,269 | 45,307 |
| Kobenhavns Lufthavne AS* | 143 | 11,603 |
| NEG Micon AS | 427 | 4,356 |
| NKT Holding AS | 557 | 7,705 |
| Novo Nordisk AS "B" | 6,721 | 235,283 |
| Novozymes AS | 1,619 | 45,041 |
| Ostasiatiske Kompagni | 461 | 12,611 |
| Tele Danmark AS* | 3,412 | 102,042 |
| Topdanmark AS | 740 | 27,049 |
| Vestas Wind Systems AS | 3,061 | 35,009 |
| William Demant Holding AS | 765 | 17,499 |
1,191,108 | ||
| Finland 1.7% | ||
| Amer Group Ltd.* | 700 | 21,398 |
| Elisa Communications Oyj* | 3,200 | 27,487 |
| Fortum Oyj* | 9,500 | 76,147 |
| Instrumentarium Corp. | 1,200 | 45,612 |
| Kesko Oyj | 1,900 | 22,299 |
| Kone Corp. | 1,000 | 41,915 |
| Nokia Oyj | 126,000 | 2,074,884 |
| Nokian Renkaat Oyj | 200 | 10,289 |
| Orion-yhtyma Oy "B"* | 700 | 11,616 |
| Outokumpu Oyj "A"* | 2,400 | 21,084 |
| Pohjola Group PLC | 500 | 8,561 |
| Rautaruukki Oyj | 200 | 861 |
| Sampo Insurance Co., Ltd. "A"* (b) | 7,700 | 56,502 |
| Stora Enso Oyj "R" | 17,300 | 193,301 |
| Tietoenator Oyj "B" | 2,000 | 33,670 |
| UPM-Kymmene Oyj | 13,400 | 195,580 |
| Uponor Oyj | 900 | 20,877 |
| Valmet-Rauma Oyj* | 2,800 | 24,919 |
| Wartsila Oyj | 1,200 | 14,910 |
2,901,912 | ||
| France 8.7% | ||
| Accor SA* | 5,130 | 185,568 |
| Alcatel SA* | 32,837 | 296,011 |
| Alstom* | 5,460 | 18,810 |
| Atos Origin SA | 377 | 13,040 |
| Autoroutes du Sud de la France* | 1,962 | 57,340 |
| Aventis SA | 17,880 | 983,712 |
| Axa | 37,752 | 585,692 |
| BNP Paribas SA | 21,457 | 1,090,326 |
| Bouygues SA* | 5,196 | 143,442 |
| Business Objects SA* | 1,276 | 28,456 |
| Carrefour SA* | 15,282 | 748,995 |
| CNP Assurances | 777 | 32,835 |
| Compagnie de Saint-Gobain | 8,074 | 317,744 |
| Compagnie Generale d'Industrie et de Participations | 2,626 | 93,241 |
| Compagnie Generale des Etablissements Michelin "B" | 3,483 | 135,990 |
| Credit Agricole SA | 8,454 | 160,670 |
| Dassault Systemes SA | 1,177 | 38,656 |
| Essilor International SA | 2,438 | 98,213 |
| Etablissements Economiques du Casino Guichard-Perrachon SA | 913 | 71,294 |
| European Aeronautic & Space Co.* | 6,807 | 83,484 |
| France Telecom SA | 20,879 | 512,136 |
| Gecina SA | 344 | 39,898 |
| Groupe Air France | 1,503 | 19,434 |
| Groupe Danone | 3,351 | 463,698 |
| Hermes International | 203 | 28,603 |
| Imetal SA* | 288 | 41,936 |
| Klepierre* | 476 | 23,504 |
| L' Oreal SA | 9,020 | 635,988 |
| L' Air Liquide SA | 2,740 | 406,210 |
| Lafarge SA* | 3,377 | 197,777 |
| Lafarge SA* | 3,377 | 9,113 |
| Lagardere SCA | 3,303 | 143,565 |
| LVMH Moet-Hennessy Louis Vuitton SA | 5,842 | 289,747 |
| Pechiney SA* | 1,563 | 56,108 |
| Pernod Ricard | 1,326 | 118,315 |
| Pinault-Printemps-Redoute SA | 1,681 | 126,633 |
| PSA Peugeot Citroen | 4,894 | 237,727 |
| Publicis Groupe | 2,549 | 68,407 |
| Renault SA | 3,972 | 210,000 |
| Sagem SA | 432 | 34,726 |
| Sanofi-Synthelabo SA | 9,787 | 573,184 |
| Schneider Electric SA | 5,610 | 263,745 |
| Societe BIC SA* | 1,073 | 41,771 |
| Societe Generale "A" | 8,373 | 530,755 |
| Sodexho Alliance SA | 2,348 | 63,364 |
| Suez SA | 21,337 | 339,602 |
| Technip SA | 420 | 36,752 |
| Television Francaise* | 3,076 | 94,666 |
| Thales SA | 1,826 | 54,205 |
| Thomson SA* | 4,396 | 67,797 |
| Total Fina Elf SA* | 972 | 11 |
| Total SA | 17,221 | 2,602,486 |
| Unibail | 1,083 | 80,216 |
| Valeo SA | 1,746 | 60,552 |
| Vinci SA | 1,726 | 116,446 |
| Vivendi Environment | 6,114 | 125,676 |
| Vivendi Universal SA | 23,916 | 435,303 |
| Wanadoo | 10,309 | 69,018 |
| Zodiac SA | 882 | 21,513 |
14,424,106 | ||
| Germany 5.8% | ||
| Adidas-Salomon AG | 1,115 | 95,352 |
| Allianz AG (Registered) | 7,264 | 603,766 |
| Altana AG | 1,800 | 113,563 |
| BASF AG | 14,470 | 618,138 |
| Bayer AG | 17,645 | 408,900 |
| Bayerische Hypo-und Vereinsbank AG | 2,230 | 36,620 |
| Bayerische Hypo-und Vereinsbank AG | 6,483 | 107,130 |
| Beiersdorf AG | 650 | 86,884 |
| Celesio AG | 766 | 30,101 |
| Commerzbank AG | 10,950 | 153,157 |
| Continental AG | 2,950 | 61,926 |
| DaimlerChrysler AG | 22,860 | 798,039 |
| Deutsche Bank AG (Registered)* (b) (c) | 13,905 | 901,861 |
| Deutsche Boerse AG | 2,400 | 127,136 |
| Deutsche Lufthansa AG* | 4,625 | 54,173 |
| Deutsche Post AG | 10,150 | 149,077 |
| Deutsche Telekom AG (Registered) | 55,655 | 849,382 |
| Douglas Holding AG | 650 | 14,033 |
| E.ON AG | 15,568 | 800,376 |
| Epcos AG* | 1,350 | 17,394 |
| Fresenius Medical Care AG | 500 | 18,087 |
| Fresenius Medical Care AG | 900 | 44,544 |
| HeidelbergCement AG | 104 | 2,327 |
| HeidelbergCement AG VVPR* | 104 | 0 |
| HeidelbergCement AG (b) | 731 | 16,134 |
| Infineon Technologies AG* | 10,800 | 104,426 |
| KarstadtQuelle AG | 1,100 | 23,546 |
| Linde AG | 1,966 | 72,787 |
| MAN AG | 2,450 | 41,414 |
| Merck KGaA* | 1,340 | 38,931 |
| Metro AG | 3,742 | 120,964 |
| MLP AG | 1,150 | 17,168 |
| Muenchener Rueckversicherungs-Gesellschaft AG (Registered) | 2,986 | 304,424 |
| ProSiebenSat.1Media AG* | 2,489 | 16,578 |
| RWE AG | 1,035 | 27,859 |
| RWE AG* | 9,700 | 292,844 |
| SAP AG | 5,455 | 643,338 |
| Schering AG (b) | 4,565 | 223,214 |
| Siemens AG* | 21,152 | 1,037,664 |
| Suedzucker AG | 1,150 | 19,756 |
| Thyssen Krupp AG* | 8,500 | 98,000 |
| TUI AG* | 3,161 | 47,008 |
| Volkswagen AG | 2,550 | 76,458 |
| Volkswagen AG | 5,830 | 246,438 |
9,560,917 | ||
| Greece 0.3% | ||
| Alpha Credit Bank AE | 4,000 | 69,728 |
| Bank of Piraeus | 1,190 | 9,046 |
| Coca-Cola Hellenic Bottling Co. SA | 2,520 | 41,613 |
| Commercial Bank of Greece | 1,550 | 27,091 |
| EFG Eurobank Ergasias | 4,160 | 62,676 |
| Greek Organization of Football Prognostics | 2,681 | 27,339 |
| Hellenic Petroleum SA | 2,540 | 17,151 |
| Hellenic Technodomiki SA | 1,900 | 10,648 |
| Hellenic Telecommunication Organization SA | 6,620 | 78,149 |
| Intracom SA | 2,190 | 14,536 |
| National Bank of Greece SA | 5,632 | 95,202 |
| Panafon Hellenic Telecom SA | 5,190 | 34,568 |
| Public Power Corp. | 1,840 | 33,216 |
| Titan Cement Co. SA | 810 | 29,300 |
| Viohalco., Hellenic Copper and Aluminum Industry SA | 3,290 | 16,397 |
566,660 | ||
| Hong Kong 1.4% | ||
| Amoy Properties Ltd. | 26,000 | 23,339 |
| ASM Pacific Technology Ltd. | 5,000 | 14,555 |
| Bank of East Asia Ltd. | 37,971 | 74,256 |
| BOC Hong Kong (Holdings) Ltd.* | 72,000 | 72,479 |
| Cathay Pacific Airways Ltd. | 25,000 | 33,662 |
| Cheung Kong Holdings Ltd. | 41,000 | 246,058 |
| Cheung Kong Infrastructure Holdings | 10,000 | 19,171 |
| CLP Holdings Ltd. | 48,600 | 211,273 |
| Esprit Holdings Ltd. | 14,815 | 36,286 |
| Giordano International Ltd. | 26,000 | 8,085 |
| Hang Seng Bank Ltd. | 20,700 | 218,331 |
| Henderson Land Development Co., Ltd. | 14,000 | 40,035 |
| Hong Kong & China Gas Co., Ltd. | 100,887 | 127,432 |
| Hong Kong Electric Holdings Ltd. | 38,000 | 148,625 |
| Hong Kong Exchanges & Clearing Ltd. | 24,000 | 34,777 |
| Hopewell Holdings Ltd.* | 14,000 | 14,901 |
| Hutchison Whampoa Ltd.* | 56,100 | 341,716 |
| Hysan Development Co. | 13,590 | 11,153 |
| Johnson Electric Holdings Ltd. | 36,000 | 44,780 |
| Li & Fung Ltd. | 39,000 | 50,262 |
| MTR Corp, Ltd. | 29,301 | 33,629 |
| New World Development Co., Ltd. | 36,107 | 13,775 |
| PCCW Ltd. | 43,030 | 26,624 |
| Shangri-La Asia Ltd. | 26,000 | 16,671 |
| Sino Land Co., Ltd. | 52,000 | 16,171 |
| South China Morning Post Co., Ltd. | 27,200 | 10,638 |
| Sun Hung Kai Properties Ltd. | 35,297 | 177,885 |
| Swire Pacific Ltd. "A" | 25,500 | 111,180 |
| Techtronic Industries | 11,000 | 18,408 |
| Television Broadcasts Ltd. | 9,000 | 32,142 |
| Wharf Holdings Ltd. | 29,102 | 56,165 |
| Yue Yuen Industrial Ltd. | 12,000 | 30,700 |
2,315,164 | ||
| Ireland 0.7% | ||
| Allied Irish Bank PLC | 23,570 | 357,820 |
| Bank of Ireland | 26,266 | 318,215 |
| CRH PLC | 13,772 | 215,085 |
| DCC PLC | 2,107 | 28,309 |
| Elan Corp. PLC | 9,966 | 51,500 |
| Fyffes PLC | 7,415 | 11,666 |
| Grafton Group PLC* | 4,415 | 19,519 |
| Greencore Group PLC | 4,282 | 14,260 |
| Independent News & Media PLC | 12,037 | 21,425 |
| Irish Life & Permanent PLC | 7,324 | 79,648 |
| Kerry Group PLC "A" | 3,594 | 55,552 |
| Ryanair Holding PLC | 5,147 | 37,059 |
| Waterford Wedgewood PLC | 18,343 | 5,055 |
1,215,113 | ||
| Italy 3.6% | ||
| Alleanza Assicurazioni SpA (b) | 12,399 | 117,894 |
| Assicurazioni Generali SpA | 25,136 | 582,494 |
| Autogrill SpA* | 3,093 | 33,743 |
| Banca Fideuram SpA* | 7,987 | 43,566 |
| Banca Intesa SpA* | 24,962 | 57,330 |
| Banca Intesa SpA | 94,859 | 303,374 |
| Banca Monte dei Paschi di Siena SpA | 19,728 | 53,805 |
| Banca Nazionale del Lavoro* | 42,366 | 71,030 |
| Banca Popolare di Milano Scrl | 6,790 | 29,708 |
| Banco Popolare di Verona e Novara | 10,072 | 137,638 |
| Benetton Group SpA | 1,610 | 16,695 |
| Bulgari SpA | 3,349 | 18,652 |
| Capitalia SpA | 30,799 | 54,290 |
| Enel SpA | 56,438 | 351,921 |
| Eni SpA (b) | 68,635 | 1,038,020 |
| Fiat SpA* | 6,006 | 43,727 |
| FinecoGroup SpA* | 33,271 | 17,881 |
| Finmeccanica SpA | 144,866 | 92,827 |
| Gruppo Editoriale L' Espresso | 2,322 | 9,199 |
| Italcementi SpA | 2,001 | 22,795 |
| Luxottica Group SpA | 3,975 | 54,274 |
| Mediaset SpA* | 16,253 | 137,555 |
| Mediobanca SpA | 12,764 | 127,374 |
| Mediolanum SpA* | 4,902 | 27,358 |
| Mondadori Editore SpA | 3,666 | 26,606 |
| Parmalat Finanziaria SpA | 10,889 | 34,262 |
| Pirella SpA | 25,561 | 25,889 |
| Riunione Adriatica di Sicurta SpA | 8,549 | 129,686 |
| San Paolo IMI SpA | 26,956 | 250,425 |
| Seat Pagine Gialle SpA (b) | 133,669 | 92,867 |
| Snam Rete Gas SpA | 21,155 | 83,083 |
| Snia SpA | 8,286 | 16,223 |
| Snia SpA | 1,009 | 1,976 |
| Telecom Italia Mobile SpA | 99,709 | 491,208 |
| Telecom Italia SpA (b) | 62,744 | 567,770 |
| Telecom Italia SpA RNC (b) | 54,157 | 296,652 |
| Tiscali SpA | 2,936 | 15,003 |
| UniCredito Italiano SpA | 99,982 | 476,479 |
5,951,279 | ||
| Japan 18.7% | ||
| ACOM Co., Ltd. | 1,800 | 65,059 |
| Aderans Co., Ltd.* | 500 | 8,869 |
| Advantest Corp. | 1,800 | 79,750 |
| Aeon Co., Ltd. * | 6,000 | 137,414 |
| AEON Credit Services Co., Ltd. | 330 | 10,443 |
| Aiful Corp. | 900 | 38,376 |
| Ajinomoto Co., Inc. | 15,000 | 143,660 |
| All Nippon Airways Co., Ltd.* | 9,000 | 17,239 |
| Alps Electric Co., Ltd. | 3,000 | 38,426 |
| Amada Co., Ltd. | 8,000 | 25,717 |
| Aoyama Trading Co., Ltd. | 100 | 1,333 |
| Asahi Breweries, Ltd. | 10,000 | 60,379 |
| Asahi Chemical Industry Co., Ltd. | 37,000 | 105,692 |
| Asahi Glass Co., Ltd. | 21,000 | 130,294 |
| Asatsu, Inc. | 1,100 | 19,696 |
| Ashikaga Financial Group, Inc. | 12,000 | 17,789 |
| Autobacs Seven Co., Ltd. | 1,100 | 20,566 |
| Bandai Co., Ltd. | 700 | 26,700 |
| Bank of Yokohama Ltd. | 29,000 | 94,674 |
| Bellsystem 24, Inc. | 50 | 8,016 |
| Benesse Corp. | 1,900 | 32,755 |
| Bridgestone Corp. | 17,000 | 230,772 |
| Canon, Inc. | 22,000 | 1,009,536 |
| Capcom Co., Ltd. | 600 | 6,186 |
| Casio Computer Co., Ltd. | 6,000 | 38,326 |
| Central Glass Co., Ltd. | 3,000 | 17,639 |
| Central Japan Railway Co. | 26 | 186,217 |
| Chubu Electric Power Co., Inc. | 16,400 | 299,113 |
| Chugai Pharmaceutical Co., Ltd. | 7,000 | 79,517 |
| Citizen Watch Co., Ltd. | 8,000 | 42,973 |
| Credit Saison Co., Ltd.* | 3,500 | 57,393 |
| CSK Corp.* | 2,000 | 54,466 |
| Dai Nippon Printing Co., Ltd. | 16,000 | 169,228 |
| Daicel Chemical Industries Ltd. | 6,000 | 19,038 |
| Daiichi Pharmaceutical Co., Ltd. | 7,000 | 91,176 |
| DAIKIN INDUSTRIES, Ltd. | 5,000 | 91,818 |
| Daimaru, Inc. | 3,000 | 12,042 |
| Dainippon Ink and Chemicals, Inc.* | 21,000 | 42,498 |
| Daito Trust Construction Co., Ltd. | 2,000 | 42,057 |
| Daiwa House Industry Co., Ltd. | 11,000 | 75,669 |
| Daiwa Securities Group, Inc. | 33,000 | 189,631 |
| Denki Kagaku Kogyo Kabushiki Kaisha | 11,000 | 30,506 |
| Denso Corp. | 13,400 | 212,369 |
| DENTSU, Inc. | 4 | 12,459 |
| Dowa Mining Co., Ltd. | 4,000 | 15,357 |
| East Japan Railway Co. | 88 | 391,355 |
| Ebara Corp. | 8,000 | 28,116 |
| Eisai Co., Ltd. | 6,000 | 123,423 |
| FamilyMart Co., Ltd.* | 1,000 | 17,864 |
| FANUC Ltd. | 3,000 | 148,657 |
| Fast Retailing Co., Ltd. | 1,300 | 40,167 |
| Fuji Electric Co., Inc | 7,000 | 15,332 |
| Fuji Photo Film Co., Ltd. | 12,000 | 346,783 |
| Fuji Television Network, Inc. | 6 | 21,187 |
| Fujikura Ltd. | 11,000 | 36,277 |
| Fujisawa Pharmaceutical Co., Ltd. | 7,000 | 131,168 |
| Fujitsu Ltd. | 40,000 | 163,898 |
| Hankyu Department Stores, Inc. | 2,000 | 11,643 |
| Hino Motors Ltd. | 3,000 | 14,166 |
| Hirose Electric Co., Ltd. | 800 | 66,159 |
| Hitachi Chemical Co., Ltd. | 1,800 | 18,423 |
| Hitachi Ltd. | 75,000 | 317,926 |
| Hitachi Software Engineering Co., Ltd. | 300 | 6,221 |
| Honda Motor Co., Ltd. | 20,900 | 791,963 |
| House Foods Corp. | 3,000 | 27,483 |
| Hoya Corp. | 2,900 | 199,734 |
| Isetan Co., Ltd. | 4,000 | 26,950 |
| Ishikawajima-Harima Heavy Industries Co., Ltd.* | 35,000 | 39,350 |
| ITO EN, Ltd. | 500 | 16,781 |
| Ito-Yokado Co., Ltd. | 10,000 | 239,434 |
| Itochu Corp. | 38,000 | 95,574 |
| Itochu Techno-Science Corp. | 600 | 13,941 |
| JAFCO Co., Ltd. | 500 | 28,316 |
| Japan Airlines System Corp.* | 19,000 | 41,457 |
| Japan TobacCo., Inc. | 20 | 108,099 |
| JFE Holdings, Inc.* | 13,225 | 198,251 |
| JGC Corp. | 4,000 | 26,917 |
| JSR Corp. | 4,000 | 48,603 |
| Kajima Corp. | 20,000 | 47,470 |
| Kamigumi Co., Ltd.* | 4,000 | 20,021 |
| Kanebo Ltd.* | 8,000 | 9,461 |
| Kaneka Corp. | 8,000 | 49,303 |
| Kansai Electric Power Co., Inc. | 18,200 | 287,077 |
| Kao Corp. | 15,000 | 279,201 |
| Katokichi Co., Ltd. | 1,100 | 18,734 |
| Kawasaki Heavy Industries Ltd.* | 40,000 | 40,974 |
| Kawasaki Kisen Kaisha Ltd. | 8,000 | 19,321 |
| Keihin Electric Express Railway Co., Ltd. | 12,000 | 58,663 |
| Keio Electric Railway Co., Ltd. | 13,000 | 59,330 |
| Keyence Corp. | 870 | 159,400 |
| Kikkoman Corp. | 3,000 | 19,813 |
| Kinden Corp.* | 6,000 | 20,137 |
| Kinki Nippon Railway Co., Ltd. | 40,900 | 106,274 |
| Kirin Brewery Co., Ltd. | 19,000 | 133,550 |
| Kokuyo Corp. | 3,000 | 28,582 |
| Komatsu Ltd. | 29,000 | 111,097 |
| Komori Corp. | 2,000 | 20,837 |
| Konami Co., Ltd. | 2,200 | 39,392 |
| Konica Corp. | 6,000 | 68,307 |
| Kubota Corp. | 22,000 | 59,729 |
| Kuraray Co., Ltd. | 10,000 | 65,626 |
| Kurita Water Industries | 3,000 | 33,204 |
| Kyocera Corp. | 4,500 | 257,464 |
| Kyowa Hakko Kogyo Co., Ltd. | 8,000 | 43,173 |
| Kyushu Electric Power Co. | 9,900 | 154,096 |
| Lawson, Inc.* | 1,400 | 38,476 |
| Mabuchi Motor Co., Ltd. | 700 | 53,517 |
| Makita Corp.* | 2,000 | 16,240 |
| Marubeni Corp.* | 40,000 | 51,968 |
| Marui Co., Ltd. | 11,000 | 97,747 |
| Matsushita Electric Industrial Co., Ltd. | 54,614 | 540,796 |
| Matsushita Electric Works Ltd. | 10,000 | 59,213 |
| Meiji Dairies Corp. | 3,000 | 11,118 |
| Meiji Seika Kaisha Ltd. | 9,000 | 29,457 |
| Meitec Corp. | 1,100 | 33,437 |
| Millea Holdings, Inc. | 38 | 290,518 |
| Minebea Co., Ltd. | 8,000 | 31,714 |
| Mitsubishi Chemical Corp. | 52,000 | 106,100 |
| Mitsubishi Corp. | 27,000 | 187,308 |
| Mitsubishi Electric Corp. | 46,000 | 149,407 |
| Mitsubishi Estate Co., Ltd. | 26,000 | 176,040 |
| Mitsubishi Gas Chemical Co. | 7,000 | 14,807 |
| Mitsubishi Heavy Industries Ltd. | 79,000 | 204,614 |
| Mitsubishi Logistics Corp. | 3,000 | 18,139 |
| Mitsubishi Materials Corp. | 23,000 | 29,498 |
| Mitsubishi Rayon Co., Ltd. | 17,000 | 45,305 |
| Mitsubishi Tokyo Financial Group, Inc. | 110 | 497,439 |
| Mitsui & Co. | 33,000 | 165,447 |
| Mitsui Chemicals, Inc. | 13,000 | 60,087 |
| Mitsui Engineering & Shipbuilding Co., Ltd. | 14,000 | 17,606 |
| Mitsui Fudosan Co., Ltd. | 20,000 | 127,753 |
| Mitsui Mining & Smelting Co., Ltd. | 11,000 | 32,521 |
| Mitsui O.S.K. Lines, Ltd. | 17,000 | 51,676 |
| Mitsui Sumitomo Insurance Co., Ltd. | 34,260 | 158,924 |
| Mitsui Trust Holdings, Inc. | 14,100 | 31,001 |
| Mitsukoshi Ltd. | 15,000 | 39,475 |
| Mitsumi Electric Co., Ltd. | 900 | 9,302 |
| Mizuho Financial Group, Inc. | 159 | 125,664 |
| Murata Manufacturing Co., Ltd. | 6,300 | 247,645 |
| Namco Ltd. | 1,100 | 17,552 |
| NEC Corp. | 36,000 | 179,888 |
| NGK Insulators Ltd. | 7,000 | 38,826 |
| NGK Spark Plug Co., Ltd. | 4,000 | 28,049 |
| Nichirei Corp. | 9,000 | 31,405 |
| Nidec Corp. | 1,100 | 72,646 |
| Nikko Cordial Corp. | 34,000 | 136,481 |
| Nikon Corp. | 7,000 | 57,656 |
| Nintendo Co., Ltd. | 2,800 | 203,573 |
| Nippon Comsys Corp. | 3,000 | 15,290 |
| Nippon Express Co., Ltd. | 21,000 | 81,499 |
| Nippon Meat Packers, Inc. | 5,000 | 47,220 |
| Nippon Mining Holdings, Inc.* | 10,000 | 21,653 |
| Nippon Oil Co., Ltd. (b) | 37,000 | 160,541 |
| Nippon Sheet Glass Co., Ltd.* | 10,000 | 29,981 |
| Nippon Steel Corp. | 146,000 | 200,625 |
| Nippon Telegraph & Telephone Corp. | 140 | 549,157 |
| Nippon Unipac Holdings | 25 | 97,647 |
| Nippon Yusen Kabushiki Kaisha | 28,000 | 109,132 |
| Nishimatsu Construction Co., Ltd. | 5,000 | 16,989 |
| Nissan Motor Co., Ltd. | 67,000 | 640,566 |
| Nisshin Seifun Group, Inc. | 4,000 | 28,416 |
| Nisshinbo Industries | 2,000 | 9,161 |
| Nissin Food Products Co., Ltd. | 2,800 | 58,413 |
| Nitto Denko Corp. | 3,900 | 127,645 |
| Nomura Holdings, Inc. | 48,000 | 609,219 |
| NSK Ltd. | 13,000 | 41,357 |
| NTN Corp. | 8,000 | 29,582 |
| NTT Data Corp. | 40 | 123,256 |
| NTT DoCoMo, Inc. | 464 | 1,004,705 |
| Obayashi Corp. | 16,000 | 49,036 |
| Obic Co., Ltd. | 200 | 35,744 |
| OJI PAPER Co., Ltd. | 23,000 | 100,562 |
| Oki Electric Industry Co.* | 10,000 | 28,649 |
| Okumura Corp. | 1,000 | 3,265 |
| Olympus Optical Co., Ltd. | 5,000 | 103,477 |
| Omron Corp. | 6,000 | 101,187 |
| Onward Kashiyama Co. | 4,000 | 32,313 |
| Oracle Corp. Japan* | 1,100 | 39,575 |
| Oriental Land Co., Ltd. | 1,300 | 56,948 |
| ORIX Corp. | 2,200 | 121,657 |
| Osaka Gas Co. | 58,000 | 143,460 |
| Pioneer Electronics Corp. | 3,600 | 80,949 |
| Promise Co., Ltd. | 2,200 | 82,265 |
| Q.P. Corp. | 2,000 | 15,790 |
| Resona Holdings, Inc. | 104,000 | 71,888 |
| Ricoh Co., Ltd. | 17,000 | 277,776 |
| ROHM Co., Ltd. | 2,900 | 317,352 |
| Sankyo Co., Ltd. | 900 | 22,448 |
| Sankyo Co., Ltd. | 10,000 | 119,425 |
| Sanyo Electric Co., Ltd. | 38,000 | 130,069 |
| Sapporo Holdings Ltd. | 5,000 | 12,326 |
| Secom Co., Ltd. | 5,400 | 158,301 |
| Sega Corp.* | 2,300 | 16,339 |
| Seino Transportation Co. | 2,000 | 11,443 |
| Sekisui Chemical Co., Ltd. | 14,000 | 47,337 |
| Sekisui House Ltd. (b) | 13,000 | 98,522 |
| Seven-Eleven Japan Co., Ltd. | 11,000 | 273,912 |
| Sharp Corp. | 24,000 | 308,008 |
| Shimachu Co., Ltd. | 700 | 11,018 |
| Shimamura Co., Ltd. | 600 | 33,129 |
| Shimano, Inc. | 3,100 | 48,252 |
| SHIMIZU Corp. | 13,000 | 36,052 |
| Shin-Etsu Chemical Co., Ltd. | 9,700 | 331,210 |
| Shionogi & Co., Ltd. | 8,000 | 108,399 |
| Shiseido Co., Ltd. | 9,000 | 87,470 |
| Showa Denko KK | 19,000 | 33,071 |
| Showa Shell Sekiyu KK | 5,000 | 35,894 |
| SKYLARK Co., Ltd. | 2,000 | 23,735 |
| SMC Corp. | 1,500 | 126,296 |
| Snow Brand Milk Products Co., Ltd. | 1,500 | 3,760 |
| Softbank Corp.* | 5,300 | 100,416 |
| Sompo Japan Insurance, Inc. | 18,000 | 98,189 |
| Sony Corp. | 23,600 | 664,318 |
| Stanley Electric Co., Ltd. | 3,000 | 42,748 |
| Sumitomo Bakelite Co., Ltd. | 2,000 | 8,345 |
| Sumitomo Chemical Co., Ltd. | 32,000 | 100,471 |
| Sumitomo Corp. | 16,000 | 73,821 |
| Sumitomo Electric Industries Ltd. | 17,000 | 124,164 |
| Sumitomo Heavy Industries Ltd. | 18,000 | 26,683 |
| Sumitomo Metal Industries Ltd.* | 62,000 | 42,857 |
| Sumitomo Metal Mining Co., Ltd. | 11,000 | 42,140 |
| Sumitomo Mitsui Financial Group, Inc.* | 107 | 233,471 |
| Sumitomo Osaka Cement Co., Ltd. | 12,000 | 23,585 |
| Sumitomo Realty & Development Co., Ltd. | 7,000 | 31,131 |
| Suzuken Co., Ltd. | 800 | 18,988 |
| Taiheiyo Cement Corp. | 29,000 | 49,752 |
| Taisei Corp. | 25,000 | 49,136 |
| Taisho Pharmaceutical Co., Ltd. | 5,000 | 72,205 |
| Taiyo Yuden Co., Ltd. | 2,000 | 19,488 |
| Takara Holdings, Inc. | 4,000 | 21,587 |
| Takashimaya Co., Ltd. | 9,000 | 44,747 |
| Takeda Chemical Industries, Ltd. | 22,000 | 811,659 |
| Takefuji Corp. | 1,870 | 97,024 |
| TDK Corp. | 3,400 | 167,912 |
| Teijin Ltd. | 23,000 | 57,464 |
| Teikoku Oil Co., Ltd. | 4,000 | 13,059 |
| Terumo Corp. | 5,300 | 88,057 |
| The 77 Bank Ltd. | 8,000 | 36,311 |
| The Bank of Fukuoka Ltd. | 13,000 | 49,910 |
| The Chiba Bank, Ltd. | 14,000 | 49,669 |
| The Furukawa Electric Co., Ltd. | 13,000 | 42,440 |
| The Gunma Bank Ltd. | 10,000 | 45,472 |
| The Hokuriku Bank Ltd.* | 14,000 | 21,453 |
| The Joyo Bank Ltd. | 16,000 | 44,639 |
| The Shizuoka Bank Ltd. | 17,000 | 113,970 |
| The Sumitomo Trust & Banking Co., Ltd. | 22,000 | 76,036 |
| The Suruga Bank Ltd. | 3,000 | 17,264 |
| THK Co., Ltd. | 1,800 | 24,225 |
| TIS, Inc. | 100 | 1,915 |
| Tobu Railway Co., Ltd. | 20,000 | 56,798 |
| Toda Corp.* | 6,000 | 12,892 |
| Toho Co., Ltd.* | 4,300 | 37,745 |
| Tohoku Electric Power Co., Inc. | 11,200 | 165,656 |
| Tokyo Broadcasting System, Inc. | 1,000 | 12,184 |
| Tokyo Electric Power Co. | 30,200 | 577,214 |
| Tokyo Electron Ltd. | 4,000 | 189,548 |
| Tokyo Gas Co., Ltd. | 67,000 | 192,505 |
| Tokyo Style Co., Ltd. | 2,000 | 16,306 |
| Tokyu Corp. (b) | 23,000 | 74,129 |
| TonenGeneral Sekiyu K.K. | 7,000 | 49,203 |
| Toppan Printing Co., Ltd. | 14,000 | 100,271 |
| Toray Industries, Inc. | 33,000 | 76,677 |
| Toshiba Corp.* | 76,000 | 261,403 |
| Tosoh Corp. | 15,000 | 33,479 |
| Tostem Inax Holding Corp. | 7,848 | 113,071 |
| Toto Ltd. | 10,000 | 59,380 |
| Toyo Seikan Kaisha Ltd. | 4,000 | 37,410 |
| Toyo Suisan Kaisha Ltd. | 1,000 | 10,152 |
| Toyobo Co., Ltd. | 20,000 | 34,812 |
| Toyoda Gosei Co., Ltd.* | 700 | 13,787 |
| Toyota Industries Corp. | 3,300 | 53,701 |
| Toyota Motor Corp. | 71,000 | 1,838,934 |
| Trend Micro, Inc.* | 2,500 | 38,830 |
| Ube Industries Ltd. | 13,000 | 19,163 |
| UFJ Holdings, Inc.* | 85 | 124,589 |
| Uni-Charm Co. | 1,400 | 60,512 |
| UNY Co., Ltd. | 4,000 | 34,445 |
| Ushio, Inc. | 2,000 | 23,152 |
| USS Co., Ltd. | 300 | 15,191 |
| Wacoal Corp. | 4,000 | 31,147 |
| West Japan Railway Corp. | 29 | 109,890 |
| World Co., Ltd. | 1,300 | 24,630 |
| Yakult Honsha Co., Ltd. | 4,000 | 53,633 |
| Yamada Denki Co., Ltd. | 1,300 | 28,690 |
| Yamaha Corp. | 3,000 | 41,124 |
| Yamaha Motor Co., Ltd. (b) | 2,000 | 16,873 |
| Yamaichi Securities Co., Ltd.* | 14,000 | 0 |
| Yamanouchi Pharmaceutical Co., Ltd. | 8,300 | 216,356 |
| Yamato Transport Co., Ltd. | 11,000 | 121,749 |
| Yamazaki Baking Co., Ltd. | 5,000 | 31,855 |
| Yokogawa Electric Corp. | 4,000 | 30,881 |
31,063,773 | ||
| Luxembourg 0.1% | ||
| Arcelor | 8,563 | 99,710 |
| Netherlands 5.0% | ||
| ABN AMRO Holding NV* | 40,015 | 765,088 |
| Aegon NV | 36,134 | 361,832 |
| Akzo Nobel NV | 7,351 | 194,830 |
| ASML Holding NV* | 12,282 | 116,640 |
| Corio NV | 1,313 | 42,248 |
| DSM NV | 1,953 | 82,353 |
| Euronext NV | 2,162 | 53,602 |
| Fortis Bank Nederland NV* | 50 | 0 |
| Hagemeyer NV | 2,586 | 9,948 |
| Heineken NV | 5,210 | 184,872 |
| IHC Caland NV | 572 | 29,204 |
| ING Groep NV* | 44,849 | 779,230 |
| Koninklijke | 34,878 | 663,263 |
| Koninklijke Ahold NV | 17,746 | 147,337 |
| Koninklijke KPN NV* | 46,590 | 330,105 |
| Koninklijke Numico | 3,186 | 49,026 |
| Oce NV | 1,190 | 12,285 |
| Qiagen NV | 3,029 | 25,566 |
| Reed Elsevier NV | 17,309 | 204,135 |
| Rodamco Europe NV | 1,277 | 66,826 |
| Royal Dutch Petroleum Co. | 55,269 | 2,565,382 |
| STMicroelectronics NV | 15,848 | 332,315 |
| TPG NV | 9,305 | 161,563 |
| Unilever NV | 15,106 | 810,450 |
| Vedior NV | 2,619 | 23,729 |
| Vendex NV | 1,497 | 17,328 |
| VNU NV | 5,687 | 175,218 |
| Wereldhave NV | 229 | 14,398 |
| Wolters Kluwer NV* | 6,608 | 79,677 |
8,298,450 | ||
| New Zealand 0.2% | ||
| Auckland International Airport Ltd. | 5,780 | 20,743 |
| Carter Holt Harvey Ltd. | 23,574 | 24,705 |
| Contact Energy Ltd. | 7,349 | 21,727 |
| Fisher & Paykel Appliances Holdings Ltd. | 1,120 | 8,950 |
| Fisher & Paykel Corp, Ltd. | 2,321 | 16,782 |
| Fletcher Building Ltd. | 13,125 | 28,200 |
| Fletcher Challenge Forests* | 382 | 257 |
| Fletcher Challenge Forests Ltd.* | 764 | 519 |
| Independent Newspapers Ltd. | 3,432 | 8,600 |
| NGC Holdings Ltd. | 5,435 | 4,996 |
| Sky City Entertainment Group Ltd. | 4,766 | 26,312 |
| Sky Network Television Ltd. | 2,305 | 5,870 |
| Telecom Corp. of New Zealand Ltd. | 50,402 | 154,621 |
| The Warehouse Group Ltd. | 3,494 | 10,596 |
| Tower Ltd.* | 2,638 | 2,301 |
335,179 | ||
| Norway 0.4% | ||
| Aker Kvaerner ASA* | 1,102 | 14,541 |
| Den Norske Bank* | 10,150 | 50,058 |
| Frontline Ltd.* | 1,300 | 18,550 |
| Gjensidige NOR ASA | 1,500 | 52,470 |
| Norsk Hydro ASA* | 3,950 | 194,261 |
| Norske Skogindustrier ASA | 3,150 | 47,130 |
| Orkla ASA | 5,314 | 92,022 |
| Schibsted ASA | 1,200 | 16,624 |
| Smedvig ASA | 900 | 5,723 |
| Statoil ASA | 11,950 | 101,813 |
| Storebrand ASA | 3,850 | 15,467 |
| Tandberg ASA | 3,600 | 18,652 |
| Telenor ASA | 11,950 | 49,665 |
| Tomra Systems ASA | 5,300 | 22,761 |
699,737 | ||
| Portugal 0.3% | ||
| Banco BPI SA* | 9,159 | 25,874 |
| Banco Comercial Portugues SA | 51,674 | 90,790 |
| Banco Espirito Santo e Comercial de Lisboa SA | 3,035 | 44,960 |
| Brisa-Auto Estradas de Portugal SA | 7,187 | 40,441 |
| CIMPOR-Cimentos de Portugal | 4,045 | 15,375 |
| Electricidade de Portugal* | 47,548 | 101,559 |
| Jeronimo Martins SA* | 1,209 | 9,566 |
| Portugal Telecom SGPS SA (Registered) | 24,786 | 177,609 |
| PT Multimedia Servicos* | 861 | 15,078 |
| Sonae SGPS SA | 24,104 | 13,563 |
534,815 | ||
| Singapore 0.8% | ||
| Capitaland Ltd.* | 27,750 | 19,540 |
| Chartered Semiconductor Manufacturing Ltd.* | 26,400 | 13,642 |
| City Developments Ltd. | 13,000 | 32,777 |
| ComfortDelGro Corp, Ltd. | 40,000 | 18,285 |
| Creative Technologies Ltd. | 1,000 | 8,007 |
| Cycle & Carriage Ltd. | 1,293 | 3,627 |
| Datacraft Asia Ltd.* | 4,000 | 4,000 |
| DBS Group Holdings Ltd. | 30,513 | 178,469 |
| Fraser & Neave Ltd. | 5,400 | 26,371 |
| Haw Par Corp, Ltd. | 4,245 | 10,462 |
| Keppel Corp. | 13,750 | 38,260 |
| Keppel Land Ltd. | 1,000 | 727 |
| Neptune Orient Lines Ltd. | 26,000 | 21,851 |
| Oversea-Chinese Banking Corp, Ltd. | 26,337 | 149,557 |
| Overseas Union Enterprise | 3,000 | 11,925 |
| Parkway Holdings Ltd. | 9,000 | 3,986 |
| SembCorp Industries Ltd. | 31,329 | 22,772 |
| SembCorp Logistics Ltd. | 5,000 | 5,338 |
| SembCorp. Marine Ltd. | 10,000 | 5,565 |
| Singapore Airlines Ltd. | 15,000 | 88,586 |
| Singapore Exchange Ltd. | 13,000 | 10,114 |
| Singapore Press Holdings Ltd. | 10,296 | 106,994 |
| Singapore Technologies Engineering Ltd.* | 33,000 | 32,606 |
| Singapore TeleCommunications Ltd. | 174,000 | 149,199 |
| ST Assembly Test Services Ltd.* | 5,000 | 4,855 |
| United Overseas Bank Ltd. | 32,448 | 228,481 |
| United Overseas Land Co.* | 13,000 | 15,503 |
| Venture Corp, Ltd. | 5,000 | 45,713 |
| Wing Tai Holdings Ltd. | 14,000 | 5,883 |
1,263,095 | ||
| Spain 3.5% | ||
| Acciona SA* | 627 | 29,881 |
| Acerinox SA | 1,147 | 43,835 |
| Actividades de Construccion y Servicios SA | 1,104 | 47,098 |
| Altadis SA "A" | 7,888 | 202,179 |
| Amadeus Global Travel Distribution SA "A" | 6,395 | 36,645 |
| Autopistas Concesionaria Espanol SA | 3,646 | 50,954 |
| Banco Bilbao Vizcaya Argentaria SA | 80,216 | 842,861 |
| Banco Popular Espanol SA | 3,930 | 198,573 |
| Banco Santander Central Hispano SA | 113,309 | 992,803 |
| Corp. Financiera Reunida SA* | 1,973 | 20,754 |
| Corp. Mapfre SA | 2,476 | 26,443 |
| Endesa SA | 23,643 | 395,853 |
| Fomento de Construcciones y Contratas SA* | 1,152 | 32,186 |
| Gas Natural SDG SA* | 5,308 | 106,670 |
| Grupo Dragados SA | 3,352 | 67,478 |
| Grupo Ferrovial | 1,654 | 44,920 |
| Iberdrola SA | 20,132 | 348,628 |
| Iberia Lineas Aereas de Espana SA | 6,671 | 12,946 |
| Indra Sistemas SA | 2,180 | 22,155 |
| Industria de Diseno Textil SA | 5,994 | 150,742 |
| Repsol SA* | 24,623 | 399,254 |
| Sacyr Vallehermoso SA | 2,869 | 31,826 |
| Sociedad General de Aguas de Barcelona SA | 1,641 | 22,425 |
| Telefonica Publicidad e Informacion SA* | 1,980 | 9,572 |
| Telefonica SA* | 126,618 | 1,470,013 |
| Terra Networks SA* | 11,210 | 67,841 |
| Union Fenosa SA | 5,422 | 91,839 |
| Zeltia SA | 3,485 | 23,532 |
5,789,906 | ||
| Sweden 2.0% | ||
| ABB Ltd. | 4,472 | 14,804 |
| Alfa Laval AB | 900 | 8,601 |
| Assa Abloy AB "B" | 8,300 | 80,357 |
| Atlas Copco AB "A" | 2,971 | 75,157 |
| Atlas Copco AB "B" | 2,142 | 50,306 |
| Axfood AB | 500 | 9,088 |
| Billerud | 1,000 | 11,680 |
| Castellum AB | 700 | 12,024 |
| Drott AB "B"* | 2,500 | 31,543 |
| Electrolux AB "B" | 7,900 | 155,929 |
| Eniro AB | 4,700 | 40,219 |
| Gambro AB "B" | 2,500 | 16,552 |
| Gambro AB | 5,000 | 33,105 |
| Getinge AB | 700 | 18,582 |
| Grupo Prisa SA* | 2,251 | 20,447 |
| Hennes & Mauritz AB "B" | 12,600 | 289,621 |
| Hoganas AB | 600 | 12,217 |
| Holmen AB "B" | 1,400 | 38,214 |
| Modern Times Group AB* | 1,200 | 18,439 |
| Nordea AB* | 62,414 | 300,961 |
| OM Gruppen AB | 1,800 | 12,817 |
| Perbio Science AB | 600 | 11,168 |
| Sandvik AB | 6,000 | 157,028 |
| Sapa AB | 500 | 10,056 |
| SAS AB | 1,500 | 8,245 |
| Securitas AB "B" | 8,000 | 81,949 |
| Skandia Forsakrings AB | 22,400 | 59,603 |
| Skandinaviska Enskilda Banken "A" | 12,960 | 131,948 |
| Skanska AB "B" | 11,400 | 65,082 |
| SKF AB "B" | 2,200 | 63,486 |
| SSAB Svenskt Stal AB | 100 | 1,274 |
| SSAB Svenskt Stal AB "A" | 1,800 | 24,060 |
| Svenska Cellulosa AB "B" | 5,166 | 176,503 |
| Svenska Handelsbanken AB "B" | 800 | 12,592 |
| Svenska Handelsbanken AB "A" | 14,700 | 240,564 |
| Swedish Match AB | 9,865 | 74,558 |
| Tele2 AB "B" | 2,500 | 92,911 |
| Telefonaktiebolaget LM Ericsson "B"* | 382,700 | 411,148 |
| TeliaSonera AB* | 1,600 | 6,578 |
| TeliaSonera AB* | 41,951 | 173,989 |
| Trelleborg AB | 2,300 | 24,566 |
| Volvo AB "B"* | 6,080 | 133,677 |
| Volvo AB "A" | 2,810 | 58,974 |
| WM-Data AB "B" | 7,800 | 11,888 |
3,282,510 | ||
| Switzerland 6.9% | ||
| ABB Ltd.* | 23,260 | 76,414 |
| Adecco SA | 3,400 | 140,061 |
| Centerpulse AG | 260 | 69,964 |
| Ciba Specialty Chemicals AG (Registered) | 1,700 | 102,912 |
| Clariant AG* | 4,500 | 41,194 |
| Compagnie Financiere Richemont AG | 13,700 | 221,498 |
| Credit Suisse Group | 31,240 | 822,196 |
| Geberit AG | 50 | 15,393 |
| Givaudan | 222 | 93,418 |
| Holcim Ltd. (HOLCIM Ltd.-REG) | 3,625 | 133,942 |
| Kudelski SA | 1,000 | 18,124 |
| Kuoni Reisen AG (Registered) | 10 | 2,569 |
| Logitech International SA | 1,100 | 41,254 |
| Lonza Group AG | 1,150 | 52,637 |
| Nestle SA (Registered) | 10,600 | 2,187,221 |
| Nobel Biocare Holding AG* | 100 | 6,621 |
| Nobel Biocare Holding AG* | 500 | 33,387 |
| Novartis AG (Registered) | 63,040 | 2,494,514 |
| Oerlikon-Buehrle Holding AG* | 276 | 22,464 |
| Roche Holding AG | 18,400 | 1,443,284 |
| Roche Holding AG* (b) | 900 | 110,627 |
| Schindler Holding AG | 30 | 4,828 |
| Serono SA "B" | 200 | 117,530 |
| SGS Holdings SA | 125 | 48,817 |
| Sulzer AG (Registered)* (b) | 105 | 14,670 |
| Swatch Group AG | 1,800 | 32,756 |
| Swatch Group AG | 850 | 77,027 |
| Swiss Re (Registered) | 8,500 | 470,950 |
| Swisscom AG | 690 | 196,117 |
| Syngenta AG | 2,774 | 139,053 |
| Synthes-Stratec, Inc. | 110 | 79,015 |
| UBS AG (Registered)* | 31,348 | 1,743,806 |
| Valora Holding AG | 90 | 18,405 |
| Zurich Financial Services AG* | 3,756 | 447,820 |
11,520,488 | ||
| United Kingdom 25.0% | ||
| 3i Group PLC | 16,664 | 155,379 |
| Aegis Group PLC | 17,284 | 22,603 |
| Alliance Unichem PLC | 4,827 | 39,448 |
| AMEC PLC | 7,045 | 30,226 |
| Amersham PLC | 20,645 | 154,921 |
| Amvescap PLC | 17,009 | 117,322 |
| Argyll Group PLC | 25,832 | 109,764 |
| ARM Holdings PLC* | 25,576 | 28,277 |
| Associated British Ports Holdings PLC | 7,056 | 46,224 |
| AstraZeneca Group PLC | 6,372 | 258,304 |
| AstraZeneca PLC | 39,081 | 1,567,094 |
| Aviva PLC | 60,673 | 421,253 |
| BAA PLC | 28,957 | 234,377 |
| BAE Systems PLC | 82,676 | 194,409 |
| Balfour Beatty PLC | 4,146 | 13,204 |
| Bank of New York Co., Inc. | 13,986 | 135,935 |
| Barclays PLC | 172,106 | 1,278,002 |
| Barratt Developments PLC | 8,077 | 57,578 |
| BBA Group PLC | 16,408 | 56,317 |
| Berkeley Group PLC | 5,398 | 66,495 |
| BG Group PLC | 92,655 | 410,522 |
| BHP Billiton PLC | 65,436 | 344,453 |
| BOC Group PLC | 13,813 | 177,220 |
| Boots Group PLC | 24,205 | 259,023 |
| BP PLC | 587,236 | 4,072,335 |
| BPB PLC | 9,855 | 49,925 |
| Brambles Industries PLC | 19,281 | 52,179 |
| British Airways PLC* | 19,365 | 48,412 |
| British American Tobacco PLC | 42,998 | 487,803 |
| British Land PLC | 14,835 | 117,687 |
| British Sky Broadcasting Group PLC* | 34,507 | 382,363 |
| BT Group PLC | 231,749 | 779,181 |
| Bunzl PLC | 14,569 | 102,114 |
| Cable and Wireless PLC | 54,686 | 101,971 |
| Cadbury Schweppes PLC | 54,044 | 319,267 |
| Canary Wharf Group PLC (REIT) | 14,669 | 61,967 |
| Capita Group PLC | 19,439 | 72,495 |
| Carlton Communications PLC | 15,577 | 38,942 |
| Carnival PLC | 5,128 | 155,795 |
| Cattles PLC | 6,367 | 34,094 |
| Celltech Group PLC* | 6,093 | 34,486 |
| Centrica PLC | 111,719 | 324,000 |
| Chubb PLC | 24,469 | 30,485 |
| Close Brothers Group PLC | 2,533 | 27,064 |
| Cobham PLC | 1,928 | 36,759 |
| Compass Group PLC | 62,470 | 336,830 |
| Daily Mail & General Trust | 7,052 | 66,330 |
| De La Rue PLC | 2,911 | 11,360 |
| Diageo PLC | 83,311 | 889,467 |
| Electrocomponents PLC | 11,845 | 63,427 |
| EMAP PLC | 5,822 | 82,189 |
| EMI Group PLC | 18,815 | 37,878 |
| Enterprise Inns PLC | 3,439 | 45,881 |
| Exel PLC | 7,787 | 79,925 |
| Firstgroup PLC | 7,297 | 32,511 |
| FKI PLC | 16,691 | 21,965 |
| Friends Provident PLC | 35,935 | 67,303 |
| George Wimpey PLC | 7,301 | 35,541 |
| GKN PLC | 17,946 | 65,890 |
| GlaxoSmithKline PLC | 158,132 | 3,191,312 |
| Granada Compass PLC | 65,325 | 98,094 |
| Great Portland Estates PLC | 307 | 1,168 |
| GUS PLC | 26,497 | 296,886 |
| Hammerson PLC | 5,426 | 44,366 |
| Hanson PLC | 19,402 | 108,135 |
| Hays PLC | 56,416 | 89,371 |
| HBOS PLC | 99,474 | 1,287,732 |
| Hilton Group PLC | 39,581 | 120,179 |
| HSBC Holdings PLC | 282,394 | 3,336,503 |
| IMI PLC | 10,076 | 49,881 |
| Imperial Chemical Industries PLC | 28,808 | 58,352 |
| Imperial Tobacco Group PLC | 20,297 | 362,730 |
| Intercontinental Hotels Group PLC | 20,436 | 145,004 |
| Invensys PLC | 94,327 | 31,909 |
| J Sainsbury PLC | 35,479 | 148,706 |
| Johnson Mathey PLC | 5,236 | 76,293 |
| Kelda Group PLC | 8,259 | 58,262 |
| Kidde PLC | 13,274 | 18,618 |
| Kingfisher PLC | 74,650 | 341,527 |
| Land Securities Group PLC | 12,123 | 156,337 |
| Legal & General Group PLC | 184,225 | 255,359 |
| Liberty International PLC | 5,389 | 55,090 |
| Lloyds TSB Group PLC | 146,182 | 1,037,858 |
| LogicaCMG PLC | 16,095 | 38,046 |
| Man Group PLC | 7,221 | 142,512 |
| Marks & Spencer Group PLC | 64,133 | 334,155 |
| MFI Furniture Group PLC | 10,649 | 29,434 |
| Misys PLC | 14,256 | 60,458 |
| Mitchells & Butlers PLC | 20,436 | 78,825 |
| National Grid Transco PLC | 82,150 | 557,150 |
| National Power PLC* | 29,638 | 63,212 |
| New Dixons Group PLC | 48,793 | 106,281 |
| Next PLC* | 7,148 | 121,078 |
| Novar PLC | 3,491 | 7,057 |
| Pearson PLC | 23,085 | 215,610 |
| Persimmon PLC | 5,281 | 41,568 |
| Pilkington PLC | 24,287 | 26,551 |
| Provident Financial PLC | 5,748 | 60,467 |
| Prudential Corp. PLC | 55,352 | 335,214 |
| Rank Group PLC | 12,851 | 52,803 |
| Reckitt Benkiser PLC | 15,303 | 280,805 |
| Reed Elsevier PLC | 35,626 | 296,439 |
| Rentokil Initial PLC | 53,025 | 165,592 |
| Reuters Group PLC | 35,903 | 104,124 |
| Rexam PLC | 11,500 | 72,301 |
| Rio Tinto PLC | 29,098 | 547,383 |
| RMC Group PLC | 5,987 | 45,618 |
| Rolls-Royce PLC | 43,647 | 92,371 |
| Royal & Sun Alliance Insurance Group PLC | 31,805 | 72,820 |
| Royal Bank of Scotland Group PLC | 72,405 | 2,031,143 |
| SABMiller PLC | 19,783 | 132,457 |
| Schroders PLC | 5,472 | 56,864 |
| Scottish & Newcastle PLC | 18,329 | 110,850 |
| Scottish & Southern Energy PLC | 24,539 | 252,676 |
| Scottish Power PLC | 52,882 | 317,638 |
| Serco Group PLC | 13,638 | 36,008 |
| Severn Trent PLC | 8,356 | 94,314 |
| Shell Transport & Trading Co., PLC | 254,184 | 1,677,766 |
| Signet Group PLC | 36,130 | 53,807 |
| Slough Estates PLC | 12,154 | 68,541 |
| Smith & Nephew PLC | 25,569 | 146,936 |
| SmithKline Industries PLC | 16,326 | 189,391 |
| SSL International PLC | 3,036 | 14,729 |
| Stagecoach Group PLC | 25,112 | 25,692 |
| Tate & Lyle PLC | 9,166 | 51,804 |
| Taylor Woodrow PLC | 12,869 | 42,684 |
| Tesco PLC | 195,737 | 708,167 |
| The Peninsular and Oriental Steam Navigation Co. | 14,898 | 57,772 |
| The Sage Group PLC | 29,135 | 77,885 |
| TI Group PLC* | 11,991 | 0 |
| Tomkins PLC | 17,191 | 64,395 |
| Unilever PLC | 75,104 | 597,976 |
| United Business Media PLC | 6,159 | 30,795 |
| Vodafone Group PLC | 1,800,961 | 3,521,646 |
| Whitbread PLC | 6,365 | 71,212 |
| Wolseley PLC* | 16,886 | 186,761 |
| WPP Group PLC | 32,984 | 258,535 |
41,540,161 | ||
| Total Common Stocks (Cost $165,476,886) | 152,308,695 | |
Preferred Stocks 0.1% | ||
| Germany | ||
| Henkel KGaA | 1,600 | 99,052 |
| Porsche AG | 200 | 84,105 |
| Total Preferred Stocks (Cost $198,864) | 183,157 | |
Principal Amount ($) | Value ($) | |
US Treasury Obligations 1.3% | ||
| US Treasury Bill,1.13%**, 7/24/2003 (Cost $2,188,434) | 2,190,000 | 2,188,839 |
Shares | Value ($) | |
Cash Equivalents 3.7% | ||
| Cash Management Fund Institutional, 1.0% (d) | 3,358,152 | 3,358,152 |
| Daily Assets Fund Institutional, 1.08% (d) (e) | 2,828,374 | 2,828,374 |
| Total Cash Equivalents (Cost $6,186,526) | 6,186,526 | |
% of Net Assets | Value ($) | |
| Total Portfolio - (Cost $174,050,710) (a) | 96.8 | 160,867,217 |
| Other Assets and Liabilities, Net | 3.2 | 5,210,551 |
| Net Assets | 100.0 | 166,077,768 |
* Non-income producing security.
** Annualized yield at time of purchase; not a coupon rate.
(a) The cost for federal income tax purposes was $177,396,984. At June 30, 2003, net unrealized depreciation for all securities based on tax cost was $16,529,767. This consisted of aggregate gross unrealized appreciation for all securities in which there was an excess of value over tax cost of $14,677,454 and aggregate gross unrealized depreciation for all securities in which there was an excess of tax cost over value of $31,207,221.
(b) All or a portion of this security was on loan (see Note E). The value of all securities loaned at June 30, 2003, amounted to $2,697,080.
(c) Affiliated issuer (see Notes to Financial Statements).
(d) Cash Management Fund Institutional and Daily Assets Fund Institutional are affiliated funds and are also managed by Deutsche Asset Management, Inc. The rates are the annualized seven-day yields.
(e) Represents collateral held in connection with securities lending.
At June 30, 2003, open futures contracts purchased were as follows:
Futures | Expiration Date | Contracts | Aggregate Face Value ($) | Market Value ($) | Unrealized Appreciation (Depreciation) ($) |
| DAX Index | 9/19/2003 | 5 | $ 455,917 | $ 463,431 | $ 7,514 |
| Hang Seng Index | 7/30/2003 | 10 | 612,902 | 614,505 | 1,603 |
| IBEX 35 Index | 7/18/2003 | 2 | 159,569 | 155,785 | (3,784) |
| MIB 30 Index | 9/19/2003 | 2 | 288,302 | 288,833 | 531 |
| Nikkei 225 | 9/11/2003 | 37 | 1,635,520 | 1,682,575 | 47,055 |
| DJ Euro Stoxx 50 Index | 9/19/2003 | 171 | 4,744,596 | 4,765,846 | 21,250 |
| SPI 200 Index | 9/18/2003 | 20 | 1,033,391 | 1,012,011 | (21,380) |
| FTSE 100 Index | 9/19/2003 | 63 | 4,249,058 | 4,172,929 | (76,129) |
| TOPIX Index | 9/11/2003 | 19 | 1,356,904 | 1,429,648 | 72,744 |
| Total Net Unrealized Appreciation | 49,404 | ||||
The accompanying notes are an integral part of the financial statements.
Statement of Assets and Liabilities as of June 30, 2003 (Unaudited) | |
| Assets | |
| Investments in securities, at value: | |
Unaffiliated issuers (cost $167,065,458) | $ 153,778,830 |
Affiliated issuers (cost $6,985,252)a | 7,088,387 |
| Total investments in securities, at value (cost $174,050,710) | $ 160,867,217 |
| Cash* | 371,931 |
| Foreign currency, at value (cost $5,436,432) | 5,588,750 |
| Collateral on futures held at broker (cost $1,841,231) | 1,897,005 |
| Receivable for investments sold | 5,575 |
| Dividends receivable | 249,338 |
| Receivable for shares of beneficial interest subscribed | 28,890 |
| Foreign taxes recoverable | 147,266 |
| Receivable for securities lending income | 8,485 |
| Other assets | 959 |
| Total assets | 169,165,416 |
| Liabilities | |
| Payable upon return of securities loaned | 2,828,374 |
| Payable for daily variation margin on open futures contracts | 31,632 |
| Unrealized depreciation on forward currency exchange contracts | 133,489 |
| Accrued advisory fee | 76,695 |
| Other accrued expenses and payables | 17,458 |
| Total liabilities | 3,087,648 |
| Net assets, at value | $ 166,077,768 |
* Includes segregated cash of $356,909 to cover margin requirements on foreign future contracts.
a Includes collateral on securities loaned, at value and cost of $2,828,374.
The accompanying notes are an integral part of the financial statements.
Statement of Operations for the six months ended June 30, 2003 (Unaudited) | |
| Investment Income | |
| Dividends (net of foreign taxes withheld of $362,473) | $ 2,501,761 |
| Dividends from Cash Management Fund Institutional | 32,321 |
| Interest | 41,104 |
| Securities lending income | 51,832 |
| Total income | 2,627,018 |
| Expenses: Advisory fee | 178,494 |
| Administrator service fees | 73,289 |
| Auditing | 17,833 |
| Legal | 2,965 |
| Trustees' fees and expenses | 4,008 |
| Other | 22,175 |
| Total expenses, before expense reductions | 298,764 |
| Expense reductions | (43,892) |
| Total expenses, after expense reductions | 254,872 |
| Net investment income (loss) | 2,372,146 |
| Realized and Unrealized Gain (Loss) on Investment Transactions | |
| Net realized gain (loss) from: Investments | (3,699,701) |
| Futures | 1,330,683 |
| Foreign currency related transactions | 1,097,245 |
| (1,271,773) | |
| Net unrealized appreciation (depreciation) during the period on: Investments | 15,179,378 |
| Futures | 273,613 |
| Foreign currency related transactions | (247,366) |
| 15,205,625 | |
| Net gain (loss) on investment transactions | 13,933,852 |
| Net increase (decrease) in net assets resulting from operations | $ 16,305,998 |
The accompanying notes are an integral part of the financial statements.
Statement of Changes in Net Assets | ||
| Increase (Decrease) in Net Assets | Six Months Ended June 30, 2003 | Years Ended December 31, 2002 |
| Operations: Net investment income | $ 2,372,146 | $ 2,564,987 |
| Net realized gain (loss) on investment transactions | (1,271,773) | (6,482,098) |
| Net unrealized appreciation (depreciation) on investment transactions during the period | 15,205,625 | (19,466,388) |
| Net increase (decrease) in net assets resulting from operations | 16,305,998 | (23,383,499) |
| Capital transactions in shares of beneficial interest: Proceeds from capital invested | 109,282,348 | 77,845,963 |
| Subscriptions in-kind | 11,066,674 | - |
| Value of capital withdrawn | (107,247,017) | (58,436,177) |
| Net increase (decrease) in net assets from capital transactions in shares of beneficial interest | 13,102,005 | 19,409,786 |
| Increase (decrease) in net assets | 29,408,003 | (3,973,713) |
| Net assets at beginning of period | 136,669,765 | 140,643,478 |
| Net assets at end of period | $ 166,077,768 | $ 136,669,765 |
The accompanying notes are an integral part of the financial statements.
Years Ended December 31, | 2003a | 2002 | 2001 | 2000 | 1999 | 1998 |
| Ratios to Average Net Assets and Supplemental Data | ||||||
| Net assets, end of period ($ millions) | 166 | 137 | 141 | 172 | 120 | 42 |
| Ratio of expenses before expense reductions (%) | .41* | .44 | .42 | .46 | .40 | .41 |
| Ratio of expenses after expense reductions (%) | .35* | .35 | .35 | .35 | .35 | .35 |
| Ratio of net investment income (loss) (%) | 1.61c** | 1.88 | 1.73 | 1.64 | 1.61 | 1.60 |
| Portfolio turnover rate (%) | 11* | 10 | 26 | 52 | 4 | 12 |
| Total Investment Return (%)b | 9.00** | (16.58) | - | - | - | - |
| a For the six months ended June 30, 2003 (Unaudited). b Total return would have been lower had certain expenses not been reduced. c The ratio for the six months ended June 30, 2003 has not been annualized since the Portfolio believes it would not be appropriate because the Portfolio's income is not earned ratable throughout the fiscal year. * Annualized ** Not annualized | ||||||
A. Significant Accounting Policies
The EAFE® Equity Index Portfolio (the "Portfolio"), a series of the Scudder Investment Portfolios (formerly BT Investment Portfolios) (the "Trust"), is registered under the Investment Company Act of 1940, as amended (the "1940 Act"), as a diversified open-end management investment company organized as a New York business trust.
The Portfolio's financial statements are prepared in accordance with accounting principles generally accepted in the United States of America which require the use of management estimates. Actual results could differ from those estimates. The policies described below are followed consistently by the Portfolio in the preparation of its financial statements.
Security Valuation. Investments are stated at value determined as of the close of regular trading on the New York Stock Exchange on each day the exchange is open for trading. Equity securities are valued at the most recent sale price reported on the exchange (US or foreign) or over-the-counter market on which the security is traded most extensively. Securities for which no sales are reported are valued at the calculated mean between the most recent bid and asked quotations on the relevant market or, if a mean cannot be determined, at the most recent bid quotation.
Money market instruments purchased with an original or remaining maturity of sixty days or less, maturing at par, are valued at amortized cost. Investments in open-end investment companies as well as Cash Management Fund Institutional and Daily Assets Fund Institutional are valued at their net asset value each business day.
Securities and other assets for which market quotations are not readily available or for which the above valuation procedures are deemed not to reflect fair value are valued in a manner that is intended to reflect their fair value as determined in accordance with procedures approved by the Trustees.
Foreign Currency Translations. The books and records of the Portfolio are maintained in US dollars. Investment securities and other assets and liabilities denominated in a foreign currency are translated into US dollars at the prevailing exchange rates at period end. Purchases and sales of investment securities, income and expenses are translated into US dollars at the prevailing exchange rates on the respective dates of the transactions.
Net realized and unrealized gains and losses on foreign currency transactions represent net gains and losses between trade and settlement dates on securities transactions, the disposition of forward foreign currency exchange contracts and foreign currencies, and the difference between the amount of net investment income accrued and the US dollar amount actually received. That portion of both realized and unrealized gains and losses on investments that results from fluctuations in foreign currency exchange rates is not separately disclosed but is included with net realized and unrealized gains and losses on investment securities.
Futures Contracts. A futures contract is an agreement between a buyer or seller and an established futures exchange or its clearinghouse in which the buyer or seller agrees to take or make a delivery of a specific amount of a financial instrument at a specified price on a specific date (settlement date). The Portfolio may enter into futures contracts as a hedge against anticipated interest rate, currency or equity market changes, and for duration management, risk management and return enhancement purposes.
Upon entering into a futures contract, the Portfolio is required to deposit with a financial intermediary an amount ("initial margin") equal to a certain percentage of the face value indicated in the futures contract. Subsequent payments ("variation margin") are made or received by the Portfolio dependent upon the daily fluctuations in the value of the underlying security and are recorded for financial reporting purposes as unrealized gains or losses by the Portfolio. When entering into a closing transaction, the Portfolio will realize a gain or loss equal to the difference between the value of the futures contract to sell and the futures contract to buy. Futures contracts are valued at the most recent settlement price.
Certain risks may arise upon entering into futures contracts, including the risk that an illiquid secondary market will limit the Portfolio's ability to close out a futures contract prior to the settlement date and that a change in the value of a futures contract may not correlate exactly with the changes in the value of the securities or currencies hedged. When utilizing futures contracts to hedge, the Portfolio gives up the opportunity to profit from favorable price movements in the hedged positions during the term of the contract.
Forward Foreign Currency Exchange Contracts. A forward foreign currency exchange contract ("forward currency contract") is a commitment to purchase or sell a foreign currency at the settlement date at a negotiated rate. The Portfolio may enter into forward currency contracts in order to hedge its exposure to changes in foreign currency exchange rates on its foreign currency denominated portfolio holdings and to facilitate transactions in foreign currency denominated securities.
Forward currency contracts are valued at the prevailing forward exchange rate of the underlying currencies and unrealized gain (loss) is recorded daily. Sales and purchases of forward currency contracts having the same settlement date and broker are offset and any gain (loss) is realized on the date of offset; otherwise, gain (loss) is realized on settlement date. Realized and unrealized gains and losses which represent the difference between the value of a forward currency contract to buy and a forward currency contract to sell are included in net realized and unrealized gain (loss) from foreign currency related transactions.
Certain risks may arise upon entering into forward currency contracts from the potential inability of counterparties to meet the terms of their contracts. Additionally, when utilizing forward currency contracts to hedge, the Portfolio gives up the opportunity to profit from favorable exchange rate movements during the term of the contract.
Federal Income Taxes. The Portfolio is considered a partnership under the Internal Revenue Code. Therefore, no federal income tax provision is necessary.
Other. Investment transactions are accounted for on the trade date. Interest income is recorded on the accrual basis. Dividend income is recorded on the ex-dividend date net of foreign withholding taxes. Certain dividends from foreign securities may be recorded subsequent to the ex-dividend date as soon as the Portfolio is informed of such dividends. Realized gains and losses from investment transactions are recorded on an identified cost basis.
The Portfolio makes a daily allocation of its net investment income and realized and unrealized gains and losses from securities and foreign currency transactions to its investors in proportion to their investment in the Portfolio.
B. Purchases and Sales of Securities
During the six months ended June 30, 2003, purchases and sales of investment securities (excluding short-term investments) aggregated $16,898,459 and $7,527,760, respectively.
C. Related Parties
Scudder Investments is part of Deutsche Asset Management, which is the marketing name in the US for the asset management activities of Deutsche Bank AG. Deutsche Asset Management, Inc. ("DeAM, Inc." or the "Advisor") is the Advisor for the Portfolio and Investment Company Capital Corp. ("ICCC" or the "Administrator") is the Administrator for the Portfolio, both wholly owned subsidiaries of Deutsche Bank AG.
Investment Advisory Agreement. Under the Investment Advisory Agreement, the Advisor directs the investments of the Portfolio in accordance with its investment objectives, policies and restrictions. The advisory fee payable under the Investment Advisory Agreement is equal to an annual rate of 0.25% of the Portfolio's average daily net assets, computed and accrued daily and payable monthly. Effective April 25, 2003, Northern Trust Investments, N.A. (formerly Northern Trust Investments, Inc.) ("NTI") serves as sub-advisor to the Portfolio and is paid by the Advisor for its services. NTI is responsible for the day to day management of the Fund. The Portfolio waives a portion of its advisory fees equivalent to the advisory fees charged on assets invested in the affiliated money market fund, Cash Management Fund Institutional.
In addition, for the six months ended June 30, 2003, the Advisor and Administrator maintained the annualized expenses of the Portfolio at not more than 0.35% of the Portfolio's average daily net assets. The amount of the waiver and whether the Advisor and Administrator waive their fees may vary at anytime without notice to the shareholders.
Accordingly, for the six months ended June 30, 2003, the Advisor did not impose a portion of its advisory fee aggregating $43,892 and the amount imposed aggregated $134,602, which was equivalent to an annualized effective rate of 0.18% of the Portfolio's average net assets.
Administrator Service Fee. For its services as Administrator, ICCC receives a fee (the "Administrator Service Fee") of 0.10% of the Portfolio's average daily net assets, computed and accrued daily and payable monthly. For the six months ended June 30, 2003, the Administrator Service Fee was $73,289, of which $14,287 is unpaid.
Deutsche Bank Trust Company Americas ("DBT Co."), an affiliate of the Portfolio's Advisor and Administrator, serves as the Portfolio's custodian.
Trustees' Fees and Expenses. The Portfolio pays each Trustee not affiliated with the Advisor retainer fees plus specific amounts for attended board and committee meetings.
Other. The Portfolio may invest in Cash Management Fund Institutional, an open-end management investment company managed by DeAM, Inc.
D. Forward Foreign Currency Commitments
As of June 30, 2003, the Portfolio had the following open forward foreign currency exchange contracts:
Contracts to Deliver | In Exchange For | Settlement Date | Net Unrealized (Depreciation) | ||
| USD | 4,684,000 | EUR | 4,000,000 | 7/10/2003 | $ (91,770) |
| USD | 2,990,700 | GBP | 1,800,000 | 7/10/2003 | (22,238) |
| USD | 1,685,630 | JPY | 200,000,000 | 7/10/2003 | (19,481) |
| Total unrealized appreciation (depreciation) | $ (133,489) | ||||
Currency Abbreviations | ||||
| GBP | British Pound | EUR | Euro | |
| USD | US Dollar | JPY | Japanese Yen | |
E. Securities Lending
The Portfolio may lend securities to financial institutions. The Portfolio retains beneficial ownership of the securities it has loaned and continues to receive interest and dividends paid by the securities and to participate in any changes in their market value. The Portfolio requires the borrowers of the securities to maintain collateral with the Portfolio in the form of cash and/or government securities equal to 102% of the value of domestic securities and 105% of the value of international securities. The Portfolio may invest the cash collateral in an affiliated money market fund. The Portfolio receives compensation for lending its securities either in the form of fees or by earning interest on invested cash collateral. The fees earned for lending securities may be shared with an affiliate regardless of whether or not the cash collateral is invested in an affiliated money market fund. Either the Portfolio or the borrower may terminate the loan. The Portfolio is subject to all investment risks associated with the value of any cash collateral received, including, but not limited to, interest rate, market, credit and liquidity risk associated with such investments.
F. Line of Credit
Prior to April 11, 2003, the Portfolio and several other affiliated funds (the "Participants") shared in a $200 million revolving credit facility administered by a syndicate of banks for temporary or emergency purposes, including the meeting of redemption requests that otherwise might require the untimely disposition of securities. The Participants were charged an annual commitment fee which was allocated pro rata based upon net assets among each of the Participants. Interest was calculated at the Federal Funds Rate plus 0.625 percent.
Effective April 11, 2003, the Portfolio entered into a new revolving credit facility administered by J.P. Morgan Chase Bank that provides $1.25 billion of credit coverage. The new revolving credit facility covers the funds and portfolios advised or administered by DeAM, Inc. or its affiliates. Interest is calculated at the Federal Funds Rate plus 0.5 percent. The Portfolio may borrow up to a maximum of 33 percent of its net assets under the agreement. During the period the Portfolio had no borrowings on the line of credit.
G. Other Information
On January 31, 2003, Deutsche Bank AG completed the sale of its Global Securities Service business to State Street Bank, Inc. The sale included US custody, securities lending and other processing services located in Europe, Asia and the Americas. The Board of Directors of the Fund approved changing the Fund's custodian to State Street Bank and Trust Company ("State Street") at Board meetings held on February 24, 2003 and March 27, 2003. Deutsche Bank and Trust Companies Americas (formerly, Bankers Trust Company), an affiliate of the Fund's Advisor, currently serves as the custodian to the Fund. Effective July 18, 2003, State Street is the Fund's custodian.
In connection with the transaction, on January 13, 2003 the Board approved on interim outsourcing arrangement that allows a State Street subsidiary to perform certain aspects if securities lending services for the Fund, subject to oversight from Deutsche. At a later date, Deutsche Asset Management will make recommendations to the Fund's Board regarding its security lending program, but Deutsche will remain as securities lending agent until such time as the Board approves a new securities lending agent for the Fund.
A Special Meeting of Shareholders of EAFE® Equity Index Portfolio (the "Portfolio"), a series of BT Investment Portfolios (the "Trust"), was held on March 31, 2003. At the meeting, the following matters were voted upon by the shareholders (the resulting votes are presented below):
1. To approve a new investment advisory agreement between the Portfolio and Deutsche Asset Management, Inc. ("DeAM, Inc.").
Affirmative | Against | Abstain |
15,442,082 | 16,405 | 1,442,575 |
2. To approve a new investment sub-advisory agreement for the Portfolio between DeAM, Inc. and Northern Trust Investments, Inc.
Affirmative | Against | Abstain |
15,435,608 | 22,880 | 1,442,574 |
Automated Information Lines | ScudderACCESS (800) 972-3060 Personalized account information, information on other Scudder funds and services via touchtone telephone and for Classes A, B, and C only, the ability to exchange or redeem shares. |
Web Site | scudder.com View your account transactions and balances, trade shares, monitor your asset allocation, and change your address, 24 hours a day.Obtain prospectuses and applications, blank forms, interactive worksheets, news about Scudder funds, subscription to fund updates by e-mail, retirement planning information, and more. |
For more information | (800) 621-1048 To speak with a Scudder service representative. |
Written correspondence | Scudder Investments PO Box 219356Kansas City, MO 64121-9356 |
Principal Underwriter | If you have questions, comments or complaints, contact: Scudder Distributors, Inc. 222 South Riverside PlazaChicago, IL 60606 (800) 621-1148 |
Nasdaq Symbol | BTAEX |
CUSIP Number | 81111W 105 |
Fund Number | 558 |
This privacy statement is issued by Scudder Distributors, Inc., Scudder Financial Services, Inc., Scudder Investor Services, Inc., Scudder Trust Company and the Scudder Funds.
We consider privacy fundamental to our client relationships and adhere to the policies and practices described below to protect current and former clients' information.
We never sell customer lists or individual client information. Internal policies are in place to protect confidentiality, while allowing client needs to be served. Only individuals who need to do so in carrying out their job responsibilities may access client information. We maintain physical, electronic and procedural safeguards that comply with federal standards to protect confidentiality. These safeguards extend to all forms of interaction with us, including the Internet.
In the normal course of business, clients give us nonpublic personal information on applications and other forms, on our Web sites, and through transactions with us or our affiliates. To be able to serve our clients, information is shared with affiliates and other companies. Specifically, we disclose client information to parties that perform various services for us, such as transfer agents, custodians, and broker-dealers. Limited information also may be shared with affiliates, with companies with which we have joint marketing agreements, or with other parties as required by law. Any organization receiving client information may only use it for the purpose designated by the entities listed above.
Questions on this policy may be sent to:
Scudder Investments
Attention: Correspondence - Chicago
P.O. Box 219415
Kansas City, MO 64121-9415
July 2002
ITEM 2. CODE OF ETHICS.
Not currently applicable.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
Not currently applicable.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Not currently applicable.
ITEM 5. [RESERVED]
ITEM 6. [RESERVED]
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR
CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
ITEM 8. [RESERVED]
ITEM 9. CONTROLS AND PROCEDURES.
(a) The Chief Executive and Financial Officers concluded that the
Registrant's Disclosure Controls and Procedures are effective based on the
evaluation of the Disclosure Controls and Procedures as of a date within 90 days
of the filing date of this report.
(b) During the six month period ended June 30, 2003, management identified
an issue related to a different registrant within the Scudder fund complex.
Management discussed the issue with the Registrant's Audit Committee and
auditors and instituted additional procedures to enhance its internal controls
over financial reporting.
Form N-CSR Item F
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.
Registrant: Scudder EAFE Equity Index Fund
By: /s/Richard T. Hale
-------------------------------------
Richard T. Hale
Chief Executive Officer
Date: August 19, 2003
-------------------------------------
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.
Registrant: Scudder EAFE Equity Index Fund
By: /s/Richard T. Hale
-------------------------------------
Richard T. Hale
Chief Executive Officer
Date: August 19, 2003
-------------------------------------
By: /s/Charles A. Rizzo
-------------------------------------
Charles A. Rizzo
Chief Financial Officer
Date: August 19, 2003
----------------------------------