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: (617) 295-2663
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Salvatore Schiavone
Two International Place
Boston, Massachusetts 02110
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(Name and Address of Agent for Service)
Date of fiscal year end: 12/31
Date of reporting period: 12/31/04
ITEM 1. REPORT TO STOCKHOLDERS
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| Annual Report to Shareholders | |
| December 31, 2004 | |
Contents |
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Click Here Performance Summary Click Here Information About Your Fund's Expenses 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 Click Here Report of Independent Registered Public Accounting Firm Click Here Tax Information Click Here Trustees and Officers Scudder EAFE® Equity Index Portfolio Click Here Investment Portfolio Click Here Financial Statements Click Here Financial Highlights Click Here Notes to Financial Statements Click Here Report of Independent Registered Public Accounting Firm Click Here Account Management Resources |
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. We advise you to consider the fund's objectives, risks, charges and expenses carefully before investing. The prospectus contains this and other important information about the fund. Please read the prospectus carefully before you invest.
Investments in mutual funds involve risk. Some funds have more risk than others. Investing in foreign securities presents certain unique risks not associated with domestic investments, such as currency fluctuation, political and economic changes and market risks. Additionally, the fund may not be able to mirror the MSCI EAFE® Index closely enough to track its performance for several reasons, including the fund's cost to buy and sell securities, the flow of money into and out of the fund and the potential underperformance of stocks selected. All of these factors may result in greater share price volatility. Please read this fund's prospectus for specific details regarding its investments and risk profile.
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.
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.
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All performance shown is historical, assumes reinvestment of all dividends and capital gains, and does not guarantee future results. Investment return and principal value fluctuate with changing market conditions so that, when redeemed, shares may be worth more or less than their original cost. Current performance may be lower or higher than the performance quoted. Please visit scudder.com for the product's most recent month-end performance.
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.
Performance figures do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.
The MSCI EAFE® Index is the exclusive property of Morgan Stanley Capital International, a service of Morgan Stanley, and has been licensed for use by the fund's investment advisor. There is no guarantee that the fund will be able to mirror the MSCI EAFE® Index closely to track its performance.
Average Annual Total Returns as of 12/31/04 | ||||
Scudder EAFE® Equity Index Fund | 1-Year | 3-Year | 5-Year | Life of Class* |
Institutional Class** | 19.42% | 10.75% | -2.06% | 4.74% |
MSCI EAFE® Index+ | 20.25% | 11.89% | -1.13% | 5.01% |
Sources: Lipper Inc. and Deutsche Asset Management, Inc.
* The Fund commenced operations on January 24, 1996. Index returns begin January 31, 1996.
** On August 13, 2004, Premier Class shares of the Fund were renamed to Institutional Class.
Net Asset Value and Distribution Information | |
| Institutional Class |
Net Asset Value: 12/31/04 | $ 11.89 |
12/31/03 | $ 10.35 |
Distribution Information: Twelve Months: Income Dividends as of 12/31/04 | $ .43 |
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Institutional Class Lipper Rankings — International Large-Cap Core Funds Category as of 12/31/04 | ||||
Period | Rank |
| Number of Funds Tracked | Percentile Ranking |
1-Year | 117 | of | 288 | 41 |
3-Year | 106 | of | 241 | 44 |
5-Year | 94 | of | 177 | 53 |
Source: Lipper Inc. Includes portfolios that invest assets in securities with primary trading markets outside of the United States. It is not possible to invest directly in a Lipper category. Rankings are historical and do not guarantee future results. Rankings are based on total return with distributions reinvested.
Growth of an Assumed $1,000,000 Investment |
[] Scudder EAFE® Equity Index Fund — Institutional Class [] MSCI EAFE® Index+ |
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Yearly periods ended December 31 |
Comparative Results as of 12/31/2004 | |||||
Scudder EAFE® Equity Index Fund | 1-Year | 3-Year | 5-Year | Life of Class* | |
Institutional Class** | Growth of $1,000,000 | $1,194,200 | $1,358,500 | $901,200 | $1,512,700 |
Average annual total return | 19.42% | 10.75% | -2.06% | 4.74% | |
MSCI EAFE® Index+ | Growth of $1,000,000 | $1,202,500 | $1,408,800 | $944,500 | $1,546,800 |
Average annual total return | 20.25% | 11.89% | -1.13% | 5.01% | |
The growth of $1,000,000 is cumulative.
The minimum investment for the Institutional Class is $1,000,000.
* The Fund commenced operations on January 24, 1996. Index returns begin January 31, 1996.
** On August 13, 2004, Premier Class shares of the Fund were renamed to Institutional Class.
+ 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.
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As an investor of the Fund, you incur two types of costs: ongoing expenses and transaction costs. Ongoing expenses include management fees, distribution and service (12b-1) fees and other Fund expenses. Examples of transaction costs include sales charges (loads), redemption fees and account maintenance fees, which are not shown in this section. The following tables are intended to help you understand your ongoing expenses (in dollars) of investing in the Fund and to help you compare these expenses with the ongoing expenses of investing in other mutual funds. In the most recent six-month period, the Fund limited these expenses; had it not done so, expenses would have been higher. The tables are based on an investment of $1,000 made at the beginning of the six-month period ended December 31, 2004.
The tables illustrate your Fund's expenses in two ways:
Actual Fund Return. This helps you estimate the actual dollar amount of ongoing expenses (but not transaction costs) paid on a $1,000 investment in the Fund using the Fund's actual return during the period. To estimate the expenses you paid over the period, simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the "Expenses Paid per $1,000" line under the share class you hold.
Hypothetical 5% Fund Return. This helps you to compare your Fund's ongoing expenses (but not transaction costs) with those of other mutual funds using the Fund's actual expense ratio and a hypothetical rate of return of 5% per year before expenses. Examples using a 5% hypothetical fund return may be found in the shareholder reports of other mutual funds. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period.
Please note that the expenses shown in these tables are meant to highlight your ongoing expenses only and do not reflect any transaction costs. The "Expenses Paid per $1,000" line of the tables is useful in comparing ongoing expenses only and will not help you determine the relative total expense of owning different funds. If these transaction costs had been included, your costs would have been higher.
* Expenses are equal to the Fund's annualized expense ratio for the share class, multiplied by the average account value over the period, multiplied by the number of days in the most recent six-month period, then divided by 365.
Annualized Expense Ratio | Institutional Class |
Scudder EAFE® Equity Index Fund | .40% |
For more information, please refer to the Fund's prospectus.
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Scudder EAFE® Equity Index Fund: A Team Approach to Investing
Deutsche Asset Management, Inc. ("DeAM, Inc." or the "Advisor"), which is part of Deutsche Asset Management, is the investment advisor for EAFE® Equity Index Portfolio, in which the fund invests all of its assets. DeAM, Inc. provides a full range of investment advisory services to institutional and retail clients. DeAM, Inc. is also responsible for selecting brokers and dealers and for negotiating brokerage commissions and dealer charges.
Deutsche Asset Management is a global asset management organization that offers a wide range of investing expertise and resources. This well-resourced global investment platform brings together a wide variety of experience and investment insight across industries, regions, asset classes and investing styles.
DeAM, Inc. is an indirect, wholly owned subsidiary of Deutsche Bank AG. Deutsche Bank AG is a major global banking institution that is engaged in a wide range of financial services, including investment management, mutual funds, retail, private and commercial banking, investment banking and insurance.
Northern Trust Investments, N.A. ("NTI"), an indirect subsidiary of Northern Trust Corporation, is the subadvisor for the portfolio. As of December 31, 2004, they had approximately $274 billion of assets under management.
A group of investment professionals is responsible for the day-to-day management of the portfolio.
In the following interview, the portfolio management team discusses Scudder EAFE® Equity Index Fund's market environment and performance during the 12-month period ended December 31, 2004.
Q: How did Scudder EAFE Equity Index Fund perform over the annual period?
A: For the 12-month period, Scudder EAFE Equity Index Fund's Institutional Class Shares produced a positive total return of 19.42%, as compared with a return of 20.25% for its benchmark, the Morgan Stanley Capital International (MSCI) Europe, Australasia and Far East (EAFE) Index.1 The broad-based MSCI EAFE Index is a group of international company stocks that is not available for direct investment. (Past performance is no guarantee of future results. Please see pages 3 through 4 for more complete performance information.)
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.
Q: What were the primary factors affecting the international equity markets during the past 12 months?
A: Despite periodic bouts of volatility, international equities delivered robust performance for 2004. The continued strength in corporate earnings and worldwide economic growth provided a positive underpinning for the global markets, outweighing factors such as rising oil prices, higher US interest rates and concerns related to the direction of growth in China. The MSCI EAFE Index returned 20.25% for the year, following on the heels of a return of almost 38.59% in 2003. The bulk of the gain came in the second half of the year, as the year-to-date return for the index was just 4.56% at the halfway point on June 30, 2004. Markets chopped sideways through much of the summer, then embarked on a powerful rally that persisted until year-end. The index produced a stellar return of 15.32% in the fourth quarter.
For US investors, the performance of international equities gained a substantial boost from the weakness of the US dollar and the corresponding strength in foreign currencies such as the euro and the yen. The rally in foreign currencies added 10.02% to the return of the MSCI EAFE Index, almost half of its total increase in 2004.
Q: How did the regions that the MSCI EAFE Index comprises perform?
A: For the year, in dollar terms, Austria (+71.50%) and Norway (+53.20%) were the top country performers. The worst-performing county was Finland, which was still up 6.10% in dollar terms. On a regional basis, Europe (+18.0%) performed the best as its markets neared a 2½-year high. While growth remains slow in the euro-block countries, the accommodative interest rate policy of the European Central Bank, in combination with the prospect of lower taxes across the region in 2005, served as a positive foundation for its stock markets. The Pacific region was close behind Europe with a gain of 17.0%. Notably, Japan's market completed its first consecutive yearly gain in almost a decade. Its economy expanded for a fourth consecutive year, the longest growth streak since 1997, as growth in the United States and China — the country's two largest export markets — helped sustain a recovery.
Q: Which sectors within the MSCI EAFE Index were the best and worst performers?
A: Turning to sector performance, energy and basic materials stocks produced very strong returns due to both rising demand and rising prices for oil and other commodities. Utilities also performed very well, reflecting investors' thirst for higher-yielding investments. Health care, which was hurt by weakness in large-cap pharmaceutical stocks, and technology, which declined on fears of slower sales industry wide, both underperformed by a substantial margin.
Q: Any final thoughts for investors?
A: Given the portfolio's strategy of seeking to provide returns that approximate those of the benchmark, portfolio activity during the year reflected the additions, deletions and adjustments made to the MSCI EAFE Index. Our goal is to maintain a fully invested posture, replicating the return and risk characteristics of the index. The index itself provides broad-based exposure to 21 of the largest developed markets outside the United States, across all sectors of the economy.
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.
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Geographic Diversification (Excludes Cash Equivalents) | 12/31/04 | 12/31/03 |
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United Kingdom | 25% | 27% |
Japan | 22% | 21% |
France | 9% | 9% |
Switzerland | 7% | 7% |
Germany | 7% | 7% |
Australia | 5% | 5% |
Netherlands | 5% | 5% |
Italy | 4% | 4% |
Spain | 4% | 4% |
Other | 12% | 11% |
| 100% | 100% |
Sector Diversification (Excludes Cash Equivalents) | 12/31/04 | 12/31/03 |
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Financials | 28% | 26% |
Consumer Discretionary | 13% | 13% |
Industrials | 9% | 9% |
Consumer Staples | 8% | 8% |
Energy | 8% | 8% |
Health Care | 8% | 9% |
Telecommunication Services | 8% | 8% |
Materials | 7% | 7% |
Information Technology | 6% | 6% |
Utilities | 5% | — |
Other | — | 6% |
| 100% | 100% |
Geographic diversification and sector diversification are subject to change.
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Ten Largest Equity Holdings at December 31, 2004 | Country | Percent |
1. BP PLC Exporter and producer of oil and natural gas | United Kingdom | 2.2% |
2. HSBC Holdings PLC Provider of international banking and financial services | United Kingdom | 2.0% |
3. Vodafone Group PLC Provider of mobile telecommunication services | United Kingdom | 1.9% |
4. GlaxoSmithKline PLC Developer of vaccines and health-related consumer products | United Kingdom | 1.5% |
5. Total SA Producer of oil and natural gas | France | 1.4% |
6. Novartis AG (Registered) Manufacturer of pharmaceutical and nutrition products | Switzerland | 1.3% |
7. Royal Dutch Petroleum Co. Exporter and producer of oil and natural gas | Netherlands | 1.3% |
8. Toyota Motor Corp. Manufacturer of diversified automotive products | Japan | 1.2% |
9. Nestle SA (Registered) Producer and seller of food products | Switzerland | 1.1% |
10. Royal Bank of Scotland Group PLC Provider of a wide range of financial services | United Kingdom | 1.1% |
Portfolio holdings are subject to change.
For more complete details about the Fund's investment portfolio, see page 28. A quarterly Fact Sheet is available upon request. Information concerning portfolio holdings of the Fund as of month end will be posted to scudder.com on the 15th of the following month. Please see the Account Management Resources section for contact information.
Following the Fund's fiscal first and third quarter-end, a complete portfolio holdings listing is filed with the SEC on Form N-Q. The form will be available on the SEC's Web site at www.sec.gov, and it also may be reviewed and copied at the SEC's Public Reference Room in Washington, D.C. Information on the operation of the SEC's Public Reference Room may be obtained by calling (800) SEC-0330.
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Statement of Assets and Liabilities as of December 31, 2004 | |
Assets | |
Investment in the EAFE® Equity Index Portfolio, at value | $ 284,968,639 |
Receivable for Fund shares sold | 279,069 |
Other assets | 7,009 |
Total assets | 285,254,717 |
Liabilities | |
Payable for Fund shares redeemed | 69,134 |
Other accrued expenses and payables | 98,712 |
Total liabilities | 167,846 |
Net assets, at value | $ 285,086,871 |
Net Assets | |
Net assets consist of: Accumulated distributions in excess of net investment income | (1,340,254) |
Net unrealized appreciation (depreciation) on investments | 66,838,526 |
Accumulated net realized gain (loss) | (46,931,518) |
Paid-in capital | 266,520,117 |
Net assets, at value | $ 285,086,871 |
Net Asset Value | |
Net Asset Value, offering and redemption price per share ($285,086,871 ÷ 23,968,389 shares of beneficial interest, $.001 par value, unlimited number of shares authorized) | $ 11.89 |
The accompanying notes are an integral part of the financial statements.
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Statement of Operations for the year ended December 31, 2004 | |
Investment Income | |
Net investment income allocated from the EAFE® Equity Index Portfolio: Dividends (net of foreign taxes withheld of $606,653) | $ 5,482,249 |
Dividends from Cash Management Fund Institutional | 169,995 |
Interest | 94,204 |
Expenses(a) | (844,935) |
Net investment income from the EAFE® Equity Index Portfolio | 4,901,513 |
Expenses: Administrator service fee | 361,783 |
Auditing fees | 23,268 |
Legal fees | 19,849 |
Trustees' fees and expenses | 7,847 |
Reports to shareholders | 18,785 |
Registration fees | 26,090 |
Other | 7,813 |
Total expenses, before expense reductions | 465,435 |
Expense reductions | (344,876) |
Total expenses, after expense reductions | 120,559 |
Net investment income (loss) | 4,780,954 |
Realized and Unrealized Gain (Loss) on Investment Transactions | |
Net realized gain (loss) from: Investments | (1,852,931) |
Futures | 2,625,866 |
Foreign currency related transactions | 2,801,302 |
| 3,574,237 |
Net unrealized appreciation (depreciation) during the period on: Investments | 38,746,510 |
Futures | 68,428 |
Foreign currency related transactions | (690,335) |
| 38,124,603 |
Net gain (loss) on investment transactions | 41,698,840 |
Net increase (decrease) in net assets resulting from operations | $ 46,479,794 |
a For the year ended December 31, 2004, the Advisor for the EAFE® Equity Index Portfolio waived fees in the amount of $89,156, all of which was allocated to the Fund.
The accompanying notes are an integral part of the financial statements.
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Statement of Changes in Net Assets | ||
Increase (Decrease) in Net Assets | Years Ended December 31, | |
2004 | 2003 | |
Operations: Net investment income (loss) | $ 4,780,954 | $ 3,406,296 |
Net realized gain (loss) on investment transactions | 3,574,237 | 951,679 |
Net unrealized appreciation (depreciation) on investment transactions during the period | 38,124,603 | 56,970,370 |
Net increase (decrease) in net assets resulting from operations | 46,479,794 | 61,328,345 |
Distributions to shareholders from: Net investment income | (10,001,126) | (4,691,014) |
Fund share transactions: Proceeds from shares sold | 69,455,677 | 299,950,673 |
Subscription in-kind | — | 11,066,674 |
Reinvestment of distributions | 9,084,704 | 4,500,342 |
Cost of shares redeemed | (60,738,784) | (278,001,936) |
Net increase (decrease) in net assets from Fund share transactions | 17,801,597 | 37,515,753 |
Increase (decrease) in net assets | 54,280,265 | 94,153,084 |
Net assets at beginning of period | 230,806,606 | 136,653,522 |
Net assets at end of period (including accumulated distributions in excess of net investment income and undistributed net investment income of $1,340,254 and $1,077,744, respectively) | $ 285,086,871 | $ 230,806,606 |
The accompanying notes are an integral part of the financial statements.
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Years Ended December 31, | 2004a | 2003 | 2002 | 2001 | 2000 |
Selected Per Share Data | |||||
Net asset value, beginning of period | $ 10.35 | $ 7.77 | $ 9.46 | $ 12.27 | $ 14.58 |
Income (loss) from investment operations: Net investment income (loss) | .33 | .17b | .16b | .19 | .25 |
Net realized and unrealized gain (loss) on investment transactions | 1.64 | 2.64 | (1.72) | (2.87) | (2.47) |
Total from investment operations | 1.97 | 2.81 | (1.56) | (2.68) | (2.22) |
Less distributions from: Net investment income | (.43) | (.23) | (.13) | (.13) | (.02) |
Net realized gains on investment transactions | — | — | — | — | (.07) |
Total distributions | (.43) | (.23) | (.13) | (.13) | (.09) |
Net asset value, end of period | $ 11.89 | $ 10.35 | $ 7.77 | $ 9.46 | $ 12.27 |
Total Return (%)c | 19.42 | 36.45 | (16.63) | (21.75) | (15.22) |
Ratios to Average Net Assets and Supplemental Data | |||||
Net assets, end of period ($ millions) | 285 | 231 | 137 | 140 | 171 |
Ratio of expenses before expense reductions, including expenses of the EAFE® Equity Index Portfolio (%) | .58 | .60 | .65 | .63 | .65 |
Ratio of expenses after expense reductions, including expenses of the EAFE® Equity Index Portfolio (%) | .40 | .40 | .40 | .40 | .40 |
Ratio of net investment income (loss) (%) | 1.98 | 1.99 | 1.83 | 1.68 | 1.59 |
a On August 13, 2004, the Fund's Premier Class shares were renamed to Institutional Class. b Based on average shares outstanding during the period. c Total return would have been lower had certain expenses not been reduced. | |||||
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A. Significant Accounting Policies
EAFE® Equity Index Fund — Institutional Class ("Scudder EAFE® Equity Index Fund" or the "Fund") is a diversified series of the Scudder Advisor Funds II (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 Statement of Additional Information.
On December 31, 2004, 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, 2004, the Fund had a net tax basis capital loss carryforward of approximately $42,600,000 which may be applied against any realized net taxable capital gains of each succeeding year until fully utilized or until December 31, 2008 ($13,400,000), December 31, 2009 ($14,100,000), December 31, 2010 ($14,900,000) and December 31, 2011 ($200,000), the respective expiration dates, whichever occurs first, which may be subject to certain limitations under Sections 382-383 of the Internal Revenue Code.
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. These differences primarily relate to passive foreign investment companies, foreign denominated investments, futures and certain securities sold at a loss. 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, 2004, the Fund's components of distributable earnings (accumulated losses) on a tax-basis were as follows:
Undistributed ordinary income* | $ 453,823 |
Capital loss carryforwards | $ 42,600,000 |
In addition, the tax character of distributions paid to shareholders by the Fund is summarized as follows:
| Years Ended December 31, | |
| 2004 | 2003 |
Distributions from ordinary income* | $ 10,001,126 | $ 4,691,014 |
* For tax purposes short-term capital gains and foreign currency distributions are considered ordinary income distributions.
Other. The Fund receives a daily allocation of the Portfolio's income, expenses 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, 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 indirect, 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 year ended December 31, 2004, 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 year ended December 31, 2004, the Administrator Service Fee was $361,783, of which $344,876 was waived.
Trustees' Fees and Expenses. As compensation for his or her services, each Independent Trustee receives an aggregate annual fee, plus a fee for each meeting attended (plus reimbursement for reasonable out-of-pocket expenses incurred in connection with his or her attendance at board and committee meetings) from each Fund in the Fund Complex for which he or she serves. In addition, the Chairman of the Fund Complex's Audit Committee receives an annual fee for his services. Payment of such fees and expenses is allocated among all such Funds described above in direct proportion to their relative net assets.
C. Share Transactions
The following table summarizes share and dollar activity in the Fund:
| Year Ended | Year Ended | ||
| Shares | Dollars | Shares | Dollars |
Shares sold | 6,470,054 | $ 69,455,677 | 35,434,212 | $ 299,950,673 |
Subscriptions in-kind | 1,534,906 | $ 11,066,674 | ||
Shares issued to shareholders in reinvestment of distributions | 787,494 | $ 9,084,704 | 497,201 | $ 4,500,342 |
Shares redeemed | (5,599,016) | $ (60,738,784) | (32,737,885) | $ (278,001,936) |
Net increase (decrease) | 1,658,532 | $ 17,801,597 | 4,728,434 | $ 37,515,753 |
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 December 31, 2004 there were two unaffiliated shareholders who held 37%,and 19%, respectively, and one affiliated shareholder who held 10% of the outstanding shares of the Fund.
E. Regulatory Matters and Litigation
Since at least July 2003, federal, state and industry regulators have been conducting ongoing inquiries and investigations ("inquiries") into the mutual fund industry, and have requested information from numerous mutual fund companies, including Scudder Investments. It is not possible to determine what the outcome of these inquiries will be or what the effect, if any, would be on the funds or their advisors. Publicity about mutual fund practices arising from these industry-wide inquiries serves as the general basis of a number of private lawsuits against the Scudder funds. These lawsuits, which previously have been reported in the press, involve purported class action and derivative lawsuits, making various allegations and naming as defendants various persons, including certain Scudder funds, the funds' investment advisors and their affiliates, certain individuals, including in some cases fund Trustees/Directors, officers, and other parties. Each Scudder fund's investment advisor has agreed to indemnify the applicable Scudder funds in connection with these lawsuits, or other lawsuits or regulatory actions that may be filed making allegations similar to these lawsuits regarding market timing, revenue sharing, fund valuation or other subjects arising from or related to the pending inquiries. Based on currently available information, the funds' investment advisors believe the likelihood that the pending lawsuits will have a material adverse financial impact on a Scudder fund is remote and such actions are not likely to materially affect their ability to perform under their investment management agreements with the Scudder funds.
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To the Trustees of Scudder Advisors Funds II and Shareholders of EAFE® Equity Index Fund — Institutional Class:
In our opinion, the accompanying statement of assets and liabilities and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of EAFE® Equity Index Fund — Institutional Class (the "Fund") at December 31, 2004, and the results of its operations, the changes in its net assets and the financial highlights for each of the periods indicated therein, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as "financial statements") are the responsibility of the Fund's management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.
Boston, Massachusetts | PricewaterhouseCoopers LLP |
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The Fund paid foreign taxes of $606,653 and earned $5,673,068 of foreign source income year during the year ended December 31, 2004. Pursuant to section 853 of the Internal Revenue Code, the Fund designates $.03 per share as foreign taxes paid and $.24 per share as income earned from foreign sources for the year ended December 31, 2004.
For federal income tax purposes, the Fund designates $6,300,000, or the maximum amount allowable under tax law, as qualified dividend income.
Please consult a tax advisor if you have questions about federal or state income tax laws, or on how to prepare your tax returns. If you have specific questions about your account, please call (800) 621-1048.
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The following individuals hold the same position with the fund and the Scudder Investment Portfolios.
Independent Trustees | ||
Name, Date of Birth, Position with the Fund and Length of Time Served1,2 | Business Experience and Directorships | Number of Funds in the Fund Complex Overseen |
Joseph R. Hardiman 5/27/37 Chairman since 2004 Trustee since 2002 | Private Equity Investor (January 1997 to present); Director, Corvis Corporation3 (optical networking equipment) (July 2000 to present), Brown Investment Advisory & Trust Company (investment advisor) (February 2001 to present), The Nevis Fund (registered investment company) (July 1999 to present), and ISI Family of Funds (registered investment companies) (March 1998 to present). Formerly, Director, Soundview Technology Group Inc. (investment banking) (July 1998-January 2004) and Director, Circon Corp.3 (medical instruments) (November 1998-January 1999); President and Chief Executive Officer, The National Association of Securities Dealers, Inc. and The NASDAQ Stock Market, Inc. (1987-1997); Chief Operating Officer of Alex. Brown & Sons Incorporated (now Deutsche Bank Securities Inc.) (1985-1987); General Partner, Alex. Brown & Sons Incorporated (now Deutsche Bank Securities Inc.) (1976-1985). | 54 |
Richard R. Burt 2/3/47 Trustee since 2002 | Chairman, Diligence LLC (international information collection and risk-management firm) (September 2002 to present); Chairman, IEP Advisors, Inc. (July 1998 to present); Member of the Board, Hollinger International, Inc.3 (publishing) (September 1995 to present), HCL Technologies Limited (information technology) (April 1999 to present), UBS Mutual Funds (formerly known as Brinson and Mitchell Hutchins families of funds) (registered investment companies) (September 1995 to present); and Member, Textron Inc.3 International Advisory Council (July 1996 to present). Formerly, Partner, McKinsey & Company (consulting) (1991-1994) and US Chief Negotiator in Strategic Arms Reduction Talks (START) with former Soviet Union and US Ambassador to the Federal Republic of Germany (1985-1991); Member of the Board, Homestake Mining3 (mining and exploration) (1998-February 2001), Archer Daniels Midland Company3 (agribusiness operations) (October 1996-June 2001) and Anchor Gaming (gaming software and equipment) (March 1999-December 2001), Chairman of the Board, Weirton Steel Corporation3 (April 1996-2004). | 56 |
S. Leland Dill 3/28/30 Trustee since 1986 for the fund and since 1993 for the Scudder Investment Portfolios | Trustee, Phoenix Euclid Market Neutral Funds (since May 1998), Phoenix Funds (24 portfolios) (since May 2004) (registered investment companies); Retired (since 1986). Formerly, Partner, KPMG Peat Marwick (June 1956-June 1986); Director, Vintners International Company Inc. (wine vintner) (June 1989-May 1992), Coutts (USA) International (January 1992-March 2000), Coutts Trust Holdings Ltd., Coutts Group (private bank) (March 1991-March 1999); General Partner, Pemco (investment company) (June 1979-June 1986); Trustee, Phoenix Zweig Series Trust (September 1989-May 2004). | 54 |
Martin J. Gruber 7/15/37 Trustee since 1992 for the fund and since 1999 for the Scudder Investment Portfolios | Nomura Professor of Finance, Leonard N. Stern School of Business, New York University (since September 1964); Trustee (since January 2000) and Chairman of the Board (since February 2004), CREF (pension fund); Trustee of the TIAA-CREF mutual funds (53 portfolios) (since February 2004); Director, Japan Equity Fund, Inc. (since January 1992), Thai Capital Fund, Inc. (since January 2000) and Singapore Fund, Inc. (since January 2000) (registered investment companies). Formerly, Trustee, TIAA (pension fund) (January 1996-January 2000); Director, S.G. Cowen Mutual Funds (January 1985-January 2001). | 54 |
Richard J. Herring 2/18/46 Trustee since 1995 for the fund and since 1999 for the Scudder Investment Portfolios | Jacob Safra Professor of International Banking and Professor, Finance Department, The Wharton School, University of Pennsylvania (since July 1972); Director, Lauder Institute of International Management Studies (since July 2000); Co-Director, Wharton Financial Institutions Center (since July 2000). Formerly, Vice Dean and Director, Wharton Undergraduate Division (July 1995-June 2000). | 54 |
Graham E. Jones 1/31/33 Trustee since 2002 | Senior Vice President, BGK Realty, Inc. (commercial real estate) (since 1995); Trustee, 8 open-end mutual funds managed by Weiss, Peck & Greer (since 1985) and Trustee of 18 open-end mutual funds managed by Sun Capital Advisers, Inc. (since 1998). | 54 |
Rebecca W. Rimel 4/10/51 Trustee since 2002 | President and Chief Executive Officer, The Pew Charitable Trusts (charitable foundation) (1994 to present); Executive Vice President, The Glenmede Trust Company (investment trust and wealth management) (1983 to present). | 54 |
Philip Saunders, Jr. 10/11/35 Trustee since 1986 for the fund and since 1993 for the Scudder Investment Portfolios | Principal, Philip Saunders Associates (economic and financial consulting) (since November 1988). Formerly, Director, Financial Industry Consulting, Wolf & Company (consulting) (1987-1988); President, John Hancock Home Mortgage Corporation (1984-1986); Senior Vice President of Treasury and Financial Services, John Hancock Mutual Life Insurance Company, Inc. (1982-1986). | 54 |
William N. Searcy 9/3/46 Trustee since 2002 | Private investor (since October 2003); Trustee of 18 open-end mutual funds managed by Sun Capital Advisers, Inc. (since October 1998). Formerly, Pension & Savings Trust Officer, Sprint Corporation3 (telecommunications) (November 1989-October 2003). | 54 |
Interested Trustee | ||
Name, Date of Birth, Position with the Fund and Length of Time Served1,2 | Business Experience and Directorships | Number of Funds in the Fund Complex Overseen |
William N. Shiebler4 2/6/42 Trustee, 2004-present | Chief Executive Officer in the Americas for Deutsche Asset Management ("DeAM") and a member of the DeAM Global Executive Committee (since 2002); Vice Chairman of Putnam Investments, Inc. (1999); Director and Senior Managing Director of Putnam Investments, Inc. and President, Chief Executive Officer, and Director of Putnam Mutual Funds Inc. (1990-1999). | 137 |
Officers | |
Name, Date of Birth, | Business Experience and Directorships |
Julian F. Sluyters5 7/14/60 President and Chief Executive Officer, 2004-present | Managing Director, Deutsche Asset Management (since May 2004); President and Chief Executive Officer of The Germany Fund, Inc., The New Germany Fund, Inc., The Central Europe and Russia Fund, Inc., The Brazil Fund, Inc., The Korea Fund, Inc., Scudder Global High Income Fund, Inc. and Scudder New Asia Fund, Inc. (since May 2004); President and Chief Executive Officer, UBS Fund Services (2001-2003); Chief Administrative Officer (1998-2001) and Senior Vice President and Director of Mutual Fund Operations (1991-1998) UBS Global Asset Management. |
Kenneth Murphy6 10/13/63 Vice President and Anti-Money Laundering Compliance Officer since 2002 | Vice President, Deutsche Asset Management (September 2000 to present). Formerly, Director, John Hancock Signature Services (1992-2000). |
Paul H. Schubert5 1/11/63 Chief Financial Officer, 2004-present | Managing Director, Deutsche Asset Management (since July 2004); formerly, Executive Director, Head of Mutual Fund Services and Treasurer for UBS Family of Funds at UBS Global Asset Management (1994-2004). |
Charles A. Rizzo6 8/5/57 Treasurer since 2002 | Managing Director, Deutsche Asset Management (since April 2004). Formerly, Director, Deutsche Asset Management (April 2000-March 2004); Vice President and Department Head, BT Alex. Brown Incorporated (now Deutsche Bank Securities Inc.) (1998-1999); Senior Manager, Coopers & Lybrand L.L.P. (now PricewaterhouseCoopers LLP) (1993-1998). |
John Millette6 8/23/62 Secretary since 2003 | Director, Deutsche Asset Management. |
Lisa Hertz5 8/21/70 Assistant Secretary since 2004 | Assistant Vice President, Deutsche Asset Management. |
Daniel O. Hirsch 3/27/54 Assistant Secretary since 2003 | Managing Director, Deutsche Asset Management (2002 to present) and Director, Deutsche Global Funds Ltd. (2002 to present). Formerly, Director, Deutsche Asset Management (1999-2002); Principal, BT Alex. Brown Incorporated (now Deutsche Bank Securities Inc.) (1998-1999); Assistant General Counsel, United States Securities and Exchange Commission (1993-1998). |
Caroline Pearson6 4/1/62 Assistant Secretary since 2002 | Managing Director, Deutsche Asset Management. |
Bruce A. Rosenblum 9/14/60 Vice President since 2003 Assistant Secretary since 2002 | Director, Deutsche Asset Management. |
Kevin M. Gay6 11/12/59 Assistant Treasurer since 2004 | Vice President, Deutsche Asset Management. |
Salvatore Schiavone6 11/3/65 Assistant Treasurer since 2003 | Director, Deutsche Asset Management. |
Kathleen Sullivan D'Eramo6 1/25/57 Assistant Treasurer since 2003 | Director, Deutsche Asset Management. |
Philip Gallo5 8/2/62 Chief Compliance Officer, 2004-present | Managing Director, Deutsche Asset Management (2003-present); formerly, Co-Head of Goldman Sachs Asset Management Legal (1994-2003) |
1 Unless otherwise indicated, the mailing address of each Trustee and Officer with respect to fund operations is One South Street, Baltimore, MD 21202.
2 Length of time served represents the date that each Trustee or Officer first began serving in that position with Scudder Advisor Funds II of which this fund is a series and Scudder Investment Portfolios.
3 A publicly held company with securities registered pursuant to Section 12 of the Securities Exchange Act of 1934.
4 Mr. Shiebler is a Trustee who is an "interested person" within the meaning of Section 2(a)(19) of the 1940 Act. Mr. Shiebler is a Managing Director of Deutsche Asset Management, the US asset management unit of Deutsche Bank AG and its affiliates. Mr. Shiebler's business address is 280 Park Avenue, New York, New York.
5 Address: 345 Park Avenue, New York, New York.
6 Address: Two International Place, Boston, Massachusetts.
The fund's Statement of Additional Information includes additional information about the fund's Trustees. To receive your free copy of the Statement of Additional Information, call toll-free: 1-800-621-1048.
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(The following financial statements of the EAFE® Equity Index Portfolio should be read in conjunction with the Fund's financial statements.)
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| Value ($) |
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Common Stocks 94.0% | ||
Australia 4.8% | ||
Alumina Ltd. | 32,621 | 151,895 |
Amcor Ltd. | 30,791 | 177,407 |
AMP Ltd. | 60,708 | 345,496 |
Ansell Ltd. | 2,546 | 17,823 |
Aristocrat Leisure Ltd. | 9,700 | 75,658 |
Australia & New Zealand Banking Group Ltd. | 56,364 | 909,743 |
Australian Gas & Light Co., Ltd. | 16,260 | 174,623 |
Australian Stock Exchange Ltd. | 1,531 | 24,483 |
AXA Asia Pacific Holdings Ltd. | 14,672 | 47,156 |
BHP Billition Ltd. | 115,367 | 1,387,291 |
BlueScope Steel Ltd. | 21,560 | 139,432 |
Boral Ltd. | 13,615 | 73,322 |
Brambles Industries Ltd. | 33,919 | 184,794 |
Centro Properties Group | 24,948 | 113,038 |
CFS Gandel Retail Trust | 44,066 | 55,269 |
Coca-Cola Amatil Ltd. | 12,287 | 78,306 |
Cochlear Ltd. | 1,114 | 22,050 |
Coles Myer Ltd. | 31,688 | 244,925 |
Commonwealth Bank of Australia | 36,514 | 918,809 |
Commonwealth Property Office Fund | 22,142 | 21,696 |
Computershare Ltd. | 10,718 | 47,638 |
CSL Ltd. | 6,037 | 138,423 |
CSR Ltd. | 25,654 | 53,493 |
DB RREEF Trust | 47,424 | 49,072 |
Foster's Group Ltd. | 66,505 | 301,852 |
Futuris Corp., Ltd. | 10,768 | 18,233 |
General Property Trust | 69,712 | 204,381 |
Harvey Norman Holdings Ltd. | 9,201 | 22,720 |
Iluka Resources Ltd. | 2,479 | 12,223 |
ING Industrial Fund | 9,833 | 16,649 |
Insurance Australia Group Ltd. | 48,929 | 246,626 |
Investa Property Group | 30,734 | 54,449 |
James Hardie Industries NV | 10,043 | 52,747 |
John Fairfax Holdings Ltd. | 24,824 | 88,541 |
Leighton Holdings | 4,873 | 47,100 |
Lend Lease Corp., Ltd. | 10,876 | 112,966 |
Lion Nathan Ltd. | 5,624 | 37,914 |
Macquarie Bank Ltd. | 5,968 | 217,542 |
Macquarie Goodman Industrial Trust | 32,462 | 60,309 |
Macquarie Infrastructure Group | 67,215 | 179,145 |
Mayne Group Ltd. | 22,896 | 76,459 |
Mirvac Group | 19,688 | 75,624 |
National Australia Bank Ltd. | 46,000 | 1,039,232 |
Newcrest Mining Ltd. | 9,231 | 126,271 |
Onesteel Ltd. | 8,598 | 17,322 |
Orica Ltd. | 7,714 | 123,178 |
Origin Energy Ltd. | 16,447 | 88,831 |
Pacific Brands Ltd. | 8,016 | 20,045 |
Paperlinx Ltd. | 8,341 | 30,862 |
Patrick Corp., Ltd. | 10,128 | 52,241 |
Perpetual Trustees Australia Ltd. | 713 | 35,156 |
Publishing & Broadcasting Ltd. | 2,483 | 34,062 |
Qantas Airways Ltd. | 17,730 | 51,564 |
QBE Insurance Group Ltd. | 21,944 | 264,049 |
Rinker Group Ltd. | 31,915 | 266,444 |
Rio Tinto Ltd. | 10,238 | 313,960 |
Santos Ltd. | 15,472 | 102,850 |
Sonic Healthcare Ltd. | 4,459 | 42,574 |
Southcorp Ltd.* | 16,569 | 55,720 |
Stockland | 42,542 | 199,759 |
Stockland Trust Group* | 1,268 | 5,889 |
Suncorp Metway Ltd. | 18,132 | 247,034 |
TABCORP Holding Ltd. | 17,199 | 233,112 |
Telstra Corp., Ltd. | 71,587 | 275,535 |
Toll Holdings Ltd. | 4,071 | 40,816 |
Transurban Group | 21,302 | 111,881 |
Wesfarmers Ltd. | 11,991 | 374,110 |
Westfield Group* | 45,188 | 581,998 |
Westpac Banking Corp., Ltd. | 55,280 | 844,579 |
WMC Resources Ltd. | 33,087 | 187,264 |
Woodside Petroleum Ltd. | 15,662 | 246,777 |
Woolworths Ltd. | 33,547 | 394,725 |
(Cost $8,087,723) | 13,685,162 | |
Austria 0.3% | ||
Bank Austria Creditanstalt | 990 | 89,486 |
Boehler-Uddeholm AG | 260 | 32,860 |
Erste Bank der Oesterreichischen Sparkassen AG | 3,980 | 212,606 |
Flughafen Wien AG | 250 | 18,928 |
Immofinanz Immobilien Anlagen AG* | 8,137 | 77,864 |
Mayr Melnhof Karton AG | 150 | 25,547 |
Oesterreichische Elektrizititaetswirtschafts AG "A" | 110 | 24,506 |
OMV AG | 400 | 120,533 |
RHI AG* | 250 | 7,578 |
Telekom Austria AG | 8,527 | 161,685 |
VA Technologie AG* | 260 | 20,674 |
Voestalpine AG | 670 | 52,046 |
Wienerberger AG | 1,860 | 88,866 |
(Cost $459,699) | 933,179 | |
Belgium 1.2% | ||
Agfa Gevaert NV | 2,975 | 100,933 |
Barco NV | 214 | 19,794 |
Bekaert NV | 369 | 29,467 |
Belgacom SA* | 4,600 | 198,831 |
Cofinimmo | 119 | 19,475 |
Colruyt NV | 515 | 83,722 |
Compagnie Maritime Belge SA | 830 | 23,184 |
Delhaize Group | 1,934 | 147,081 |
Dexia | 18,882 | 434,262 |
Electrabel SA | 830 | 370,042 |
Euronav SA | 830 | 21,548 |
Fortis | 35,211 | 973,962 |
Groupe Bruxelles Lambert SA | 2,067 | 168,293 |
Interbrew | 5,245 | 203,469 |
KBC Bankverzekeringsholding | 3,275 | 251,512 |
Mobistar SA* | 744 | 69,728 |
Omega Pharma SA | 424 | 20,315 |
SA D'Ieteren NV | 90 | 16,699 |
Solvay SA | 1,927 | 212,161 |
UCB SA | 2,390 | 121,498 |
Umicore | 632 | 59,489 |
(Cost $2,263,019) | 3,545,465 | |
Denmark 0.7% | ||
A P Moller — Maersk AS "B" | 33 | 272,560 |
Bang & Olufsen AS "B" | 261 | 19,506 |
Carlsberg AS "B" | 750 | 37,962 |
Coloplast AS "B" | 812 | 44,587 |
Danisco AS | 1,398 | 85,323 |
Danske Bank AS | 13,180 | 404,006 |
De Sammensluttede Vognmaend AS | 462 | 31,320 |
FLS Industries AS "B"* | 744 | 14,003 |
GN Store Nord AS | 6,554 | 70,659 |
H. Lundbeck AS | 2,105 | 46,927 |
ISS AS | 1,269 | 70,841 |
Kobenhavns Lufthavne AS | 143 | 30,390 |
NKT Holding AS | 557 | 16,234 |
Novo Nordisk AS "B" | 7,715 | 421,519 |
Novozymes AS "B" | 1,619 | 82,244 |
Ostasiatiske Kompagni | 461 | 24,219 |
TDC AS | 5,564 | 235,623 |
Topdanmark AS* | 740 | 58,280 |
Vestas Wind Systems AS* | 4,479 | 55,654 |
William Demant Holding AS* | 765 | 35,926 |
(Cost $1,075,312) | 2,057,783 | |
Finland 1.3% | ||
Amer Group Ltd. | 2,100 | 36,679 |
Elisa Communications Oyj* | 4,300 | 69,319 |
Fortum Oyj | 10,500 | 194,386 |
Kesko Oyj | 1,900 | 46,357 |
Kone Corp. "B" | 1,200 | 93,120 |
Metso Oyj | 2,800 | 44,377 |
Nokia Oyj | 140,500 | 2,219,125 |
Nokian Renkaat Oyj | 200 | 30,393 |
Orion-yhtyma Oy "B" | 1,400 | 22,664 |
Outokumpu Oyj | 2,400 | 42,898 |
Pohjola Group PLC | 1,500 | 17,310 |
Rautaruukki Oyj | 200 | 2,376 |
Sampo Oyj "A" | 10,400 | 143,624 |
Stora Enso Oyj "R" | 19,100 | 292,588 |
TietoEnator Oyj | 2,400 | 76,335 |
UPM-Kymmene Oyj | 15,900 | 353,574 |
Uponor Oyj | 1,800 | 33,666 |
Wartsila Oyj | 1,800 | 38,363 |
(Cost $3,196,632) | 3,757,154 | |
France 8.6% | ||
Accor SA | 5,984 | 261,988 |
Air France | 2,837 | 54,064 |
Alcatel SA* | 36,197 | 563,349 |
Alstom* | 114,339 | 87,033 |
Atos Origin SA* | 958 | 65,069 |
Autoroutes du Sud de la France | 1,962 | 98,673 |
Axa | 43,162 | 1,066,583 |
BNP Paribas SA | 24,119 | 1,747,373 |
Bouygues SA | 6,003 | 277,426 |
Business Objects SA* | 1,527 | 38,564 |
Cap Gemini SA* | 4,140 | 132,579 |
Carrefour SA | 17,488 | 832,920 |
Casino Guichard-Perrachon SA | 913 | 72,970 |
CNP Assurances | 777 | 55,658 |
Compagnie de Saint-Gobain | 9,556 | 575,672 |
Compagnie Generale des Etablissements Michelin "B" | 4,169 | 267,412 |
Credit Agricole SA | 19,521 | 589,053 |
Dassault Systemes SA | 1,686 | 85,022 |
Essilor International SA | 2,772 | 217,216 |
France Telecom SA* | 44,107 | 1,460,441 |
Gecina SA | 688 | 68,173 |
Groupe Danone | 7,393 | 682,825 |
Hermes International | 203 | 40,506 |
Imerys SA | 1,152 | 96,692 |
Klepierre | 490 | 43,392 |
L' Air Liquide SA | 3,353 | 619,829 |
L'Oreal SA | 9,317 | 707,292 |
Lafarge SA | 5,134 | 495,466 |
Lagardere S.C.A. | 3,966 | 286,251 |
LVMH Moet- Hennessy Louis Vuitton SA | 7,533 | 576,980 |
Pernod Ricard | 1,509 | 231,160 |
Pinault-Printemps-Redoute SA | 2,145 | 214,733 |
PSA Peugeot Citroen | 5,315 | 337,380 |
Publicis Groupe | 3,446 | 111,713 |
Renault SA | 5,717 | 478,295 |
Sagem SA* | 2,520 | 53,709 |
Sanofi-Aventis | 29,665 | 2,370,942 |
Schneider Electric SA | 6,836 | 475,742 |
Societe BIC SA | 1,073 | 53,964 |
Societe Generale | 10,151 | 1,027,242 |
Societe Television Francaise 1 | 3,076 | 100,136 |
Sodexho Alliance SA | 2,348 | 71,043 |
Suez SA | 23,651 | 630,736 |
Technip SA | 503 | 92,984 |
Thales SA | 1,826 | 87,664 |
Thomson SA | 6,647 | 175,729 |
Total SA | 17,716 | 3,869,731 |
Total SA VVPR Strip* | 972 | 13 |
Unibail | 1,339 | 210,760 |
Valeo SA | 1,746 | 73,096 |
Veolia Environnement | 7,917 | 286,570 |
Vinci SA | 2,300 | 308,876 |
Vivendi Universal SA* | 31,045 | 991,229 |
Zodiac SA | 882 | 41,061 |
(Cost $17,633,207) | 24,460,979 | |
Germany 6.3% | ||
Adidas-Salomon AG | 1,369 | 220,972 |
Allianz AG (Registered) | 9,328 | 1,237,478 |
Altana AG | 1,800 | 113,794 |
BASF AG | 15,829 | 1,140,325 |
Bayer AG | 20,046 | 679,553 |
Bayerische Hypo-und Vereinsbank AG* | 16,106 | 365,598 |
Bayerische Hypo-und Vereinsbank AG* | 3,122 | 71,207 |
Beiersdorf AG | 650 | 75,629 |
Celesio AG | 1,138 | 92,562 |
Commerzbank AG* | 13,926 | 286,962 |
Continental AG | 3,792 | 240,859 |
DaimlerChrysler AG | 26,087 | 1,250,275 |
Deutsche Bank AG (Registered) (d) | 14,824 | 1,316,167 |
Deutsche Boerse AG | 3,041 | 183,030 |
Deutsche Lufthansa AG* | 5,550 | 79,587 |
Deutsche Post AG | 13,810 | 317,234 |
Deutsche Telekom AG (Registered)* | 82,469 | 1,866,398 |
Douglas Holdings AG | 650 | 22,971 |
E.ON AG | 18,801 | 1,713,735 |
Epcos AG* | 1,350 | 20,185 |
Fresenius Medical Care AG | 900 | 72,433 |
HeidelbergCement AG | 1,474 | 88,757 |
HeidelbergCement AG* | 104 | 0 |
Hypo Real Estate Holdings AG* | 3,574 | 148,168 |
Infineon Technologies AG* | 18,993 | 206,014 |
KarstadtQuelle AG | 2,059 | 21,242 |
Linde AG | 2,166 | 135,607 |
MAN AG | 2,650 | 102,081 |
Merck KGaA | 1,340 | 92,199 |
Metro AG | 4,558 | 250,854 |
MLP AG | 1,150 | 22,806 |
Muenchener Rueckversicherungs-Gesellschaft AG (Registered) | 5,523 | 679,020 |
Puma AG | 455 | 125,114 |
RWE AG | 11,972 | 662,309 |
SAP AG | 6,226 | 1,111,997 |
Schering AG | 5,089 | 380,516 |
Siemens AG | 24,226 | 2,054,122 |
Suedzucker AG | 1,150 | 23,916 |
ThyssenKrupp AG | 8,500 | 187,169 |
TUI AG | 3,161 | 74,847 |
Volkswagen AG | 6,937 | 314,461 |
(Cost $13,502,658) | 18,048,153 | |
Greece 0.5% | ||
Alpha Bank AE | 6,274 | 218,827 |
Coca-Cola Hellenic Bottling Co. SA | 2,520 | 61,655 |
Cosmote Mobile Telelcommunications SA | 2,220 | 44,418 |
EFG Eurobank Ergasias | 5,790 | 198,798 |
Emporiki Bank of Greece SA | 1,550 | 49,216 |
Germanos SA | 630 | 18,668 |
Greek Organization of Football Prognostics | 4,851 | 134,116 |
Hellenic Petroleum SA | 2,970 | 32,296 |
Hellenic Technodomiki SA | 2,280 | 10,289 |
Hellenic Telecommunications Organization SA | 8,800 | 158,130 |
Intracom SA | 2,190 | 11,847 |
National Bank of Greece SA | 8,871 | 292,766 |
Piraeus Bank SA | 2,850 | 49,818 |
Public Power Corp. | 3,486 | 97,515 |
Titan Cement Co. | 2,230 | 66,078 |
Viohalco, Hellenic Copper and Aluminum Industry SA | 3,290 | 29,962 |
(Cost $967,975) | 1,474,399 | |
Hong Kong 1.6% | ||
ASM Pacific Technology Ltd. | 5,000 | 17,980 |
Bank of East Asia Ltd. | 37,971 | 117,977 |
BOC Hong Kong Holdings Ltd. | 115,000 | 219,711 |
Cathay Pacific Airways Ltd. | 35,000 | 66,193 |
Cheung Kong (Holdings) Ltd. | 46,000 | 460,136 |
Cheung Kong Infrastrucure Holdings Ltd. | 10,000 | 28,947 |
CLP Holdings Ltd. | 55,600 | 319,035 |
Esprit Holdings Ltd. | 28,815 | 174,239 |
Giordano International Ltd. | 26,000 | 16,391 |
Hang Lung Properties Ltd. | 26,000 | 40,141 |
Hang Seng Bank Ltd. | 23,600 | 327,917 |
Henderson Land Development Co., Ltd. | 21,000 | 109,421 |
Hong Kong & China Gas Co., Ltd. | 114,887 | 237,971 |
Hong Kong Electric Holdings Ltd. | 42,000 | 191,825 |
Hong Kong Exchange & Clearing Ltd. | 36,000 | 96,569 |
Hopewell Holdings Ltd. | 14,000 | 35,933 |
Hutchison Telecommunications International Ltd.* | 30,000 | 27,211 |
Hutchison Whampoa Ltd. | 65,100 | 609,315 |
Hysan Development Co. | 13,590 | 28,499 |
Johnson Electric Holdings Ltd. | 36,000 | 34,969 |
Kerry Properties Ltd. | 11,156 | 23,826 |
Kingboard Chemical Holdings Ltd. | 8,900 | 18,893 |
Li & Fung Ltd. | 45,000 | 75,842 |
MTR Corp., Ltd. | 39,301 | 62,951 |
New World Development Co., Ltd. | 50,549 | 56,580 |
Orient Overseas International Ltd. | 4,000 | 15,207 |
PCCW Ltd. | 119,443 | 75,682 |
SCMP Group Ltd. | 27,200 | 11,286 |
Shangri-La Asia Ltd. | 26,499 | 38,865 |
Sino Land Co., Ltd. | 32,301 | 31,999 |
Sun Hung Kai Properties Ltd. (REIT) | 40,297 | 403,089 |
Swire Pacific Ltd. "A" | 29,000 | 242,515 |
Techtronic Industries Co., Ltd. | 30,000 | 65,614 |
Television Broadcasts Ltd. | 9,000 | 41,684 |
Wharf Holdings Ltd. | 39,102 | 136,835 |
Yue Yuen Industrial (Holdings) Ltd. | 12,000 | 32,962 |
(Cost $3,565,939) | 4,494,210 | |
Ireland 0.9% | ||
Allied Irish Banks PLC | 25,931 | 541,037 |
Bank of Ireland PLC | 25,404 | 420,235 |
Bank of Ireland PLC | 3,791 | 63,123 |
CRH PLC | 16,015 | 428,837 |
DCC PLC | 2,107 | 47,255 |
Depfa Bank PLC | 10,028 | 168,337 |
Eircom Group PLC* | 12,232 | 28,764 |
Elan Corp. PLC* | 11,819 | 314,874 |
Fyffes PLC | 7,415 | 19,452 |
Grafton Group PLC* | 5,343 | 58,100 |
Greencore Group PLC | 4,282 | 17,577 |
Independent News & Media PLC | 14,376 | 45,334 |
Irish Life & Permanent PLC | 8,231 | 154,394 |
Kerry Group PLC | 3,594 | 86,223 |
Kingspan Group PLC | 2,310 | 22,136 |
Ryanair Holdings PLC* | 5,147 | 36,729 |
Waterford Wedgwood PLC "Unit"* | 23,345 | 1,967 |
(Cost $1,855,369) | 2,454,374 | |
Italy 4.1% | ||
Alleanza Assicurazioni SpA | 14,871 | 207,592 |
Assicurazioni Generali SpA | 29,127 | 988,584 |
Autogrill SpA* | 3,093 | 51,669 |
Autostrade SpA | 8,189 | 219,279 |
Banca Antonventeta SpA* | 6,183 | 163,042 |
Banca Fideuram SpA | 8,881 | 45,992 |
Banca Intesa SpA | 100,239 | 482,324 |
Banca Intesa SpA | 24,962 | 107,218 |
Banca Monte dei Paschi di Siena SpA | 34,695 | 123,793 |
Banca Nazionale del Lavoro SpA* | 48,520 | 144,762 |
Banca Popolare di Milano | 10,530 | 93,320 |
Banche Popolari Unite* | 9,865 | 200,599 |
Banco Popolari di Verona e Novara | 11,702 | 237,953 |
Benetton Group SpA | 1,610 | 21,293 |
Bulgari SpA | 3,349 | 41,379 |
Capitalia SpA | 40,469 | 185,375 |
Edison SpA* | 13,644 | 29,024 |
Enel SpA | 111,203 | 1,092,834 |
Eni SpA | 78,686 | 1,970,091 |
Fiat SpA* | 16,336 | 131,008 |
FinecoGroup SpA* | 2,988 | 23,069 |
Finmeccanica SpA | 190,273 | 172,505 |
Gruppo Editoriale L'Espresso SpA | 2,322 | 14,013 |
Italcementi SpA | 2,001 | 32,230 |
Luxottica Group SpA | 3,975 | 80,937 |
Mediaset SpA | 18,639 | 236,376 |
Mediobanca SpA | 14,771 | 239,123 |
Mediolanum SpA | 6,085 | 43,588 |
Mondadori (Arnoldo) Editore SpA | 3,666 | 42,306 |
Pirelli & C. Accomandita per Azioni | 46,546 | 62,761 |
Riunione Adriatica di Sicurta SpA | 8,549 | 193,360 |
San Paolo IMI SpA | 29,776 | 429,020 |
SeatPagine Gialle SpA | 90,262 | 41,591 |
Snam Rete Gas SpA | 26,458 | 153,922 |
Telecom Italia Media SpA* | 43,490 | 19,685 |
Telecom Italia Mobile SpA | 115,787 | 865,609 |
Telecom Italia SpA | 250,816 | 1,026,174 |
Telecom Italia SpA | 170,368 | 553,459 |
Terna SpA | 25,231 | 72,363 |
Tiscali SpA* | 2,936 | 10,895 |
UniCredito Italiano SpA | 134,472 | 773,164 |
(Cost $7,635,343) | 11,623,281 | |
Japan 20.6% | ||
ACOM Co., Ltd. | 2,300 | 172,158 |
Aderans Co., Ltd. | 500 | 11,564 |
Advantest Corp. | 2,300 | 197,297 |
Aeon Co., Ltd. | 18,200 | 303,718 |
AEON Credit Services Co., Ltd. | 330 | 24,572 |
Aiful Corp. | 1,400 | 153,977 |
Aisin Seiki Co., Ltd. | 5,000 | 126,622 |
Ajinomoto Co., Inc. | 19,000 | 226,213 |
All Nippon Airways Co., Ltd. | 9,000 | 31,356 |
Alps Electric Co., Ltd. | 4,000 | 59,608 |
Amada Co., Ltd. | 8,000 | 44,189 |
Aoyama Trading Co., Ltd. | 900 | 24,505 |
Asahi Breweries, Ltd. | 13,000 | 160,993 |
Asahi Glass Co., Ltd. | 24,000 | 264,663 |
Asahi Kasei Corp. | 37,000 | 185,235 |
Asatsu, Inc. | 1,100 | 30,970 |
Autobacs Seven Co., Ltd. | 1,100 | 32,151 |
Bandai Co., Ltd. | 1,400 | 31,834 |
Bank of Yokohama Ltd. | 38,000 | 239,563 |
Benesse Corp. | 1,900 | 66,566 |
Bridgestone Corp. | 20,000 | 398,165 |
Canon, Inc. | 25,600 | 1,381,556 |
Capcom Co., Ltd. | 600 | 5,703 |
Casio Computer Co., Ltd. | 6,000 | 92,573 |
Central Glass Co., Ltd. | 3,000 | 21,255 |
Central Japan Railway Co. | 32 | 261,384 |
Chubu Electric Power Co., Inc. | 20,400 | 489,743 |
Chugai Pharmaceutical Co., Ltd. | 8,000 | 132,253 |
Citizen Watch Co., Ltd. | 8,000 | 76,901 |
COMSYS Holdings Corp. | 3,000 | 27,784 |
Credit Saison Co., Ltd. | 3,500 | 127,403 |
CSK Corp. | 2,000 | 90,563 |
Dai Nippon Printing Co., Ltd. | 20,000 | 320,874 |
Daicel Chemical Industries Ltd. | 6,000 | 33,961 |
Daiichi Pharmaceutical Co., Ltd. | 8,000 | 172,929 |
Daikin Industries, Ltd. | 6,000 | 173,319 |
Daimaru, Inc. | 8,000 | 65,502 |
Dainippon Ink & Chemical, Inc. | 21,000 | 48,365 |
Daito Trust Construction Co., Ltd. | 2,900 | 137,826 |
Daiwa House Industry Co., Ltd. | 16,000 | 181,907 |
Daiwa Securities Group, Inc. | 36,000 | 259,979 |
Denki Kagaku Kogyo Kabushiki Kaisha | 11,000 | 36,606 |
Denso Corp. | 16,400 | 439,329 |
DENTSU, Inc. | 49 | 131,980 |
Dowa Mining Co., Ltd. | 10,000 | 65,092 |
East Japan Railway Co. | 104 | 578,511 |
Ebara Corp. | 8,000 | 36,928 |
Eisai Co., Ltd. | 8,000 | 263,101 |
Electric Power Development Co., Ltd.* | 4,600 | 128,838 |
FamilyMart Co., Ltd. | 2,300 | 67,000 |
FANUC Ltd. | 4,300 | 281,155 |
Fast Retailing Co., Ltd. | 1,600 | 121,792 |
Fuji Electric Holdings Co., Ltd. | 9,000 | 24,241 |
Fuji Photo Film Co., Ltd. | 14,000 | 510,979 |
Fuji Television Network, Inc. | 12 | 25,998 |
Fujikura Ltd. | 11,000 | 50,668 |
Fujisawa Pharmaceutical Co., Ltd. | 9,000 | 246,365 |
Fujitsu Ltd. | 55,000 | 358,007 |
Hankyu Department Stores, Inc. | 2,000 | 14,502 |
Hino Motors Ltd. | 4,000 | 29,706 |
Hirose Electric Co., Ltd. | 1,000 | 116,912 |
Hitachi Chemical Co., Ltd. | 2,900 | 51,904 |
Hitachi Ltd. | 98,000 | 679,028 |
Hitachi Software Engineering Co., Ltd. | 300 | 6,851 |
Hokkaido Electric Power Co., Inc. | 4,000 | 78,657 |
Hokugin Financial Group, Inc. | 25,000 | 68,313 |
Honda Motor Co., Ltd. | 22,800 | 1,181,497 |
House Food Corp. | 3,000 | 43,330 |
Hoya Corp. | 3,200 | 361,316 |
Isetan Co., Ltd. | 6,000 | 69,972 |
Ishikawajima — Harima Heavy Industries Co., Ltd.* | 35,000 | 48,160 |
ITO EN, Ltd. | 500 | 25,959 |
Ito-Yokado Co., Ltd. | 10,000 | 419,635 |
Itochu Corp.* | 43,000 | 198,907 |
Itochu Techno-Science Corp. | 600 | 24,007 |
JAFCO Co., Ltd. | 600 | 40,753 |
Japan Airlines Systems Corp.* | 19,000 | 55,070 |
Japan Real Estate Investment Corp. (REIT) | 5 | 42,159 |
Japan Retail Fund Investment Corp. (REIT) | 3 | 25,324 |
Japan Tobacco, Inc. | 28 | 319,703 |
JFE Holdings, Inc. | 16,225 | 463,142 |
JGC Corp. | 4,000 | 36,577 |
JSR Corp. | 6,000 | 131,453 |
Kajima Corp. | 30,000 | 129,111 |
Kamigumi Co., Ltd. | 6,000 | 47,897 |
Kanebo Ltd.* | 800 | 11,633 |
Kaneka Corp. | 8,000 | 90,563 |
Kansai Electric Power Co., Inc. | 22,300 | 452,659 |
Kansai Paint Co., Ltd. | 3,000 | 18,210 |
Kao Corp. | 16,000 | 409,095 |
Katokichi Co., Ltd. | 1,100 | 22,006 |
Kawasaki Heavy Industries Ltd. | 40,000 | 65,580 |
Kawasaki Kisen Kaisha Ltd. | 13,000 | 83,605 |
Keihin Electric Express Railway Co., Ltd. | 12,000 | 73,895 |
Keio Electric Railway Co., Ltd. | 13,000 | 76,247 |
Keyence Corp. | 970 | 217,344 |
Kikkoman Corp. | 3,000 | 28,603 |
Kinden Corp. | 6,000 | 44,852 |
Kintetsu Corp. | 40,900 | 141,296 |
Kirin Brewery Co., Ltd. | 22,000 | 216,629 |
Kobe Steel Ltd. | 80,000 | 122,572 |
Kokuyo Corp. | 3,000 | 36,215 |
Komatsu Ltd. | 28,000 | 195,921 |
Komori Corp. | 2,000 | 29,199 |
Konami Co., Ltd. | 2,200 | 50,991 |
Konica Minolta Holdings, Inc. | 13,500 | 179,174 |
KOYO SEIKO Co., Ltd. | 2,000 | 28,145 |
Kubota Corp. | 34,000 | 168,557 |
Kuraray Co., Ltd. | 14,000 | 125,559 |
Kuraya Sanseido, Inc.* | 1,400 | 15,753 |
Kurita Water Industries | 3,000 | 43,154 |
Kyocera Corp. | 5,100 | 392,691 |
Kyowa Hakko Kogyo Co., Ltd. | 8,000 | 60,115 |
Kyushu Electric Power Co. | 11,600 | 234,332 |
Lawson, Inc. | 1,400 | 51,644 |
Leopalace21 Corp. | 4,000 | 70,421 |
Mabuchi Motor Co., Ltd. | 700 | 50,483 |
Makita Corp. | 3,000 | 52,464 |
Marubeni Corp. | 40,000 | 110,862 |
Marui Co., Ltd. | 10,000 | 133,893 |
Matsushita Electric Industrial Co., Ltd. | 67,614 | 1,072,903 |
Matsushita Electric Works Ltd. | 10,000 | 87,147 |
Meiji Dairies Corp. | 8,000 | 47,468 |
Meiji Seika Kaisha Ltd. | 9,000 | 41,544 |
Meitec Corp. | 1,100 | 41,007 |
Millea Holdings, Inc. | 44 | 652,679 |
Minebea Co., Ltd. | 8,000 | 34,898 |
Mitsubishi Chemical Corp. | 52,000 | 158,329 |
Mitsubishi Corp. | 33,000 | 426,388 |
Mitsubishi Electric Corp. | 54,000 | 264,546 |
Mitsubishi Estate Co., Ltd. (REIT) | 29,000 | 339,612 |
Mitsubishi Gas & Chemical Co. | 7,000 | 32,995 |
Mitsubishi Heavy Industries Ltd. | 90,000 | 255,587 |
Mitsubishi Logistics Corp. | 3,000 | 29,570 |
Mitsubishi Materials Corp. | 23,000 | 48,258 |
Mitsubishi Rayon Co., Ltd. | 17,000 | 61,882 |
Mitsubishi Tokyo Financial Group, Inc. | 138 | 1,400,605 |
Mitsui & Co. | 39,000 | 349,771 |
Mitsui Chemicals, Inc. | 20,000 | 108,910 |
Mitsui Engineering & Shipbuilding Co., Ltd. | 14,000 | 23,909 |
Mitsui Fudosan Co., Ltd. | 22,000 | 267,298 |
Mitsui Mining & Smelting Co., Ltd. | 19,000 | 83,810 |
Mitsui O.S.K. Lines, Ltd. | 29,000 | 174,051 |
Mitsui Sumitomo Insurance Co., Ltd. | 40,260 | 349,677 |
Mitsui Trust Holdings, Inc. | 14,100 | 140,904 |
Mitsukoshi Ltd.* | 15,000 | 72,899 |
Mitsumi Electric Co., Ltd. | 900 | 10,294 |
Mizuho Financial Group, Inc. | 236 | 1,188,406 |
Murata Manufacturing Co., Ltd. | 6,900 | 385,840 |
Namco Ltd. | 2,200 | 28,877 |
NEC Corp. | 51,000 | 317,039 |
NEC Electronics Corp. | 1,000 | 48,795 |
Net One Systems Co., Ltd. | 18 | 75,007 |
NGK Insulators Ltd. | 9,000 | 86,074 |
NGK Spark Plug Co., Ltd. | 4,000 | 41,417 |
Nichii Gakkan Co. | 300 | 9,720 |
Nichirei Corp. | 9,000 | 35,835 |
Nidec Corp. | 1,500 | 182,834 |
Nikko Cordial Corp. | 49,000 | 259,656 |
Nikon Corp. | 7,000 | 86,484 |
Nintendo Co., Ltd. | 3,000 | 376,793 |
Nippon Building Fund, Inc. | 10 | 85,293 |
Nippon Express Co., Ltd. | 26,000 | 128,135 |
Nippon Meat Packers, Inc. | 5,000 | 67,776 |
Nippon Mining Holdings, Inc. | 23,000 | 108,188 |
Nippon Oil Co., Ltd. | 40,000 | 256,465 |
Nippon Sheet Glass Co., Ltd. | 10,000 | 41,378 |
Nippon Steel Corp. | 189,000 | 462,955 |
Nippon Telegraph & Telephone Corp. | 156 | 700,303 |
Nippon Unipac Holdings | 29 | 130,184 |
Nippon Yusen Kabushiki Kaisha | 28,000 | 150,834 |
Nishimatsu Construction Co., Ltd. | 5,000 | 17,420 |
Nissan Chemical Industries, Ltd. | 3,000 | 23,626 |
Nissan Motor Co., Ltd. | 76,000 | 826,232 |
Nisshin Seifun Group, Inc. | 6,000 | 66,517 |
Nisshin Steel Co., Ltd. | 13,000 | 29,940 |
Nisshinbo Industries | 2,000 | 14,970 |
Nissin Food Products Co., Ltd. | 2,800 | 70,225 |
Nitto Denko Corp. | 5,200 | 285,196 |
NOK Corp. | 3,300 | 103,377 |
Nomura Holdings, Inc. | 57,000 | 831,053 |
Nomura Research Institute, Ltd. | 800 | 74,949 |
NSK Ltd. | 13,000 | 65,336 |
NTN Corp. | 15,000 | 86,074 |
NTT Data Corp. | 42 | 135,669 |
NTT DoCoMo, Inc. | 610 | 1,125,110 |
Obayashi Corp. | 19,000 | 119,781 |
Obic Co., Ltd. | 200 | 39,719 |
Odakyu Electric Railway Co., Ltd. | 20,000 | 115,936 |
Oji Paper Co., Ltd. | 26,000 | 149,195 |
Oki Electric Industry Co.* | 10,000 | 43,037 |
Okumura Corp. | 1,000 | 6,324 |
Olympus Corp. | 7,000 | 149,263 |
Omron Corp. | 6,900 | 164,638 |
Onward Kashiyama Co. | 4,000 | 58,202 |
Oracle Corp. | 1,100 | 57,002 |
Oriental Land Co., Ltd. | 1,600 | 111,174 |
ORIX Corp. | 2,400 | 326,027 |
Osaka Gas Co. | 64,000 | 199,863 |
Pioneer Corp. | 5,400 | 105,397 |
Promise Co., Ltd. | 2,800 | 200,020 |
Q.P. Corp. | 2,000 | 17,390 |
Rakuten, Inc. | 16 | 18,269 |
Rakuten, Inc.* | 144 | 129,286 |
Resona Holding, Inc.* | 143,000 | 290,270 |
Ricoh Co., Ltd. | 21,000 | 405,162 |
ROHM Co., Ltd. | 3,300 | 341,368 |
Sanken Electric Co., Ltd. | 2,000 | 26,174 |
Sankyo Co., Ltd. | 12,000 | 271,104 |
Sankyo Co., Ltd. | 900 | 45,496 |
Sanyo Electric Co., Ltd. | 49,000 | 169,279 |
Sapporo Holdings Ltd. | 5,000 | 23,665 |
Secom Co., Ltd. | 6,400 | 256,075 |
Sega Sammy Holdings, Inc.* | 2,244 | 123,292 |
Seiko Epson Corp. | 2,700 | 120,152 |
Seino Transportation Co. | 2,000 | 18,737 |
Sekisui Chemical Co., Ltd. | 14,000 | 102,332 |
Sekisui House Ltd. | 15,000 | 174,783 |
Seven-Eleven Japan Co., Ltd. | 12,000 | 378,257 |
Sharp Corp. | 29,000 | 473,475 |
Shimachu Co., Ltd. | 700 | 17,317 |
Shimamura Co., Ltd. | 600 | 43,798 |
Shimano, Inc. | 3,100 | 88,489 |
Shimizu Corp. | 18,000 | 90,290 |
Shin-Etsu Chemical Co., Ltd. | 11,100 | 454,962 |
Shinsei Bank, Ltd. | 13,000 | 88,553 |
Shionogi & Co., Ltd. | 8,000 | 110,628 |
Shiseido Co., Ltd. | 11,000 | 159,305 |
Showa Denko KK | 34,000 | 87,596 |
Showa Shell Sekiyu KK | 5,000 | 45,526 |
Skylark Co., Ltd. | 2,000 | 34,391 |
SMC Corp. | 1,700 | 194,603 |
Snow Brand Milk Products Co., Ltd.* | 1,500 | 4,611 |
Softbank Corp. | 6,900 | 336,011 |
Sompo Japan Insurance, Inc. | 21,000 | 213,955 |
Sony Corp. | 28,200 | 1,089,802 |
Stanley Electric Co., Ltd. | 3,300 | 56,551 |
Sumitomo Bakelite Co., Ltd. | 2,000 | 12,628 |
Sumitomo Chemical Co., Ltd. | 41,000 | 200,859 |
Sumitomo Corp. | 29,000 | 250,181 |
Sumitomo Electric Indstries Ltd. | 22,000 | 239,387 |
Sumitomo Heavy Industries Ltd.* | 18,000 | 66,927 |
Sumitomo Metal Industries Ltd. | 120,000 | 162,779 |
Sumitomo Metal Mining Co., Ltd. | 17,000 | 121,440 |
Sumitomo Mitsui Finance Group, Inc. | 124 | 901,532 |
Sumitomo Osaka Cement Co., Ltd. | 12,000 | 29,394 |
Sumitomo Realty & Development Co., Ltd. | 13,000 | 169,494 |
Suzuken Co., Ltd. | 1,900 | 50,991 |
T&D Holdings, Inc.* | 5,450 | 260,613 |
Taiheiyo Cement Corp. | 29,000 | 72,167 |
Taisei Corp. | 25,000 | 97,346 |
Taisho Pharmaceutical Co., Ltd. | 5,000 | 108,812 |
Taiyo Nippon Sanso Corp. | 6,000 | 35,191 |
Taiyo Yuden Co., Ltd. | 2,000 | 23,265 |
Takara Holdings, Inc. | 4,000 | 26,037 |
Takashimaya Co., Ltd. | 9,000 | 86,601 |
Takeda Chemical Industries, Ltd. | 27,000 | 1,359,617 |
Takefuji Corp. | 1,870 | 126,467 |
TDK Corp. | 3,800 | 281,468 |
Teijin Ltd. | 27,000 | 117,254 |
Teikoku Oil Co., Ltd. | 4,000 | 22,250 |
Terumo Corp. | 5,300 | 142,754 |
The 77 Bank, Ltd. | 8,000 | 56,290 |
The Bank of Fukuoka, Ltd. | 13,000 | 85,635 |
The Chiba Bank, Ltd. | 22,000 | 147,067 |
The Furukawa Electric Co., Ltd.* | 19,000 | 105,319 |
The Gunma Bank Ltd. | 10,000 | 58,066 |
The Joyo Bank Ltd. | 16,000 | 78,072 |
The Shizuoka Bank Ltd. | 19,000 | 180,043 |
The Sumitomo Trust & Banking Co., Ltd. | 38,000 | 274,793 |
The Suruga Bank, Ltd. | 4,000 | 31,931 |
THK Co., Ltd. | 1,800 | 35,659 |
TIS, Inc. | 600 | 26,291 |
Tobu Railway Co., Ltd. | 20,000 | 76,120 |
Toda Corp. | 6,000 | 29,277 |
Toho Co., Ltd. | 4,300 | 67,939 |
Tohoku Electric Power Co., Inc. | 12,200 | 219,069 |
Tokyo Broadcasting System, Inc. | 1,000 | 16,307 |
Tokyo Electric Power Co. | 35,100 | 861,486 |
Tokyo Electron Ltd. | 5,400 | 332,527 |
Tokyo Gas Co., Ltd. | 70,000 | 286,913 |
Tokyo Style Co., Ltd. | 2,000 | 23,480 |
Tokyu Corp. | 32,000 | 173,007 |
TonenGeneral Sekiyu K.K. | 10,000 | 91,051 |
Toppan Printing Co., Ltd. | 17,000 | 188,631 |
Toray Industries, Inc. | 38,000 | 178,003 |
Toshiba Corp. | 87,000 | 373,573 |
Tosoh Corp. | 15,000 | 67,483 |
Tostem Inax Holding Corp. | 7,848 | 142,531 |
TOTO Ltd. | 10,000 | 95,443 |
Toyo Seikan Kaisha Ltd. | 5,000 | 92,222 |
Toyo Suisan Kaisha Ltd. | 1,000 | 14,736 |
Toyobo Co., Ltd. | 20,000 | 48,209 |
Toyoda Gosei Co., Ltd. | 900 | 18,313 |
Toyota Industries Corp. | 6,400 | 159,891 |
Toyota Motor Corp. | 87,100 | 3,544,520 |
Trend Micro, Inc. | 3,000 | 161,901 |
Ube Industries Ltd.* | 13,000 | 21,948 |
UFJ Holdings, Inc.* | 117 | 709,056 |
Uni-Charm Co. | 1,400 | 67,083 |
UNY Co., Ltd. | 6,000 | 68,566 |
Ushio, Inc. | 3,000 | 56,065 |
USS Co., Ltd. | 800 | 67,142 |
Wacoal Corp. | 4,000 | 47,975 |
West Japan Railway Corp. | 54 | 218,171 |
World Co., Ltd. | 1,300 | 45,672 |
Yahoo Japan Corp.* | 59 | 283,283 |
Yakult Honsha Co., Ltd. | 4,000 | 71,201 |
Yamada Denki Co., Ltd. | 3,000 | 128,525 |
Yamaha Corp. | 4,000 | 61,052 |
Yamaha Motor Co., Ltd. | 4,000 | 60,037 |
Yamaichi Securities Co., Ltd.* | 14,000 | 0 |
Yamanouchi Pharmaceutical Co., Ltd. | 9,300 | 362,126 |
Yamato Transport Co., Ltd. | 13,000 | 192,837 |
Yamazaki Baking Co., Ltd. | 5,000 | 46,550 |
Yokogawa Electric Corp. | 5,000 | 66,849 |
(Cost $50,853,807) | 58,883,341 | |
Luxembourg 0.1% | ||
Arcelor (Cost $200,269) | 13,842 | 319,286 |
Netherlands 4.7% | ||
ABN AMRO Holding NV | 47,512 | 1,258,677 |
Aegon NV | 42,385 | 577,846 |
Akzo Nobel NV | 8,471 | 361,316 |
ASML Holding NV* | 13,644 | 219,024 |
Corio NV | 1,313 | 76,920 |
DSM NV | 1,953 | 126,413 |
Euronext NV | 2,162 | 66,033 |
European Aeronautic Defence & Space Co. | 7,243 | 210,586 |
Fortis Bank Nederland NV* | 50 | 0 |
Getronics NV* | 10,114 | 23,096 |
Hagemeyer NV* | 2,586 | 5,976 |
Heineken NV | 6,983 | 232,830 |
IHC Caland NV | 572 | 36,340 |
ING Groep NV | 55,992 | 1,694,144 |
Koninklijke (Royal) KPN NV | 61,354 | 582,934 |
Koninklijke (Royal) Philips Electronics NV | 40,052 | 1,062,137 |
Koninklijke Ahold NV (ADR)* | 11,830 | 91,919 |
Koninklijke Ahold NV* | 36,598 | 283,551 |
Oce NV | 1,190 | 18,213 |
QIAGEN NV* | 3,029 | 33,143 |
Randstad Holdings NV | 1,070 | 42,105 |
Reed Elsevier NV | 22,034 | 300,396 |
Rodamco Europe NV | 1,277 | 101,368 |
Royal Dutch Petroleum Co. | 62,867 | 3,618,890 |
Royal Numico NV* | 4,324 | 155,927 |
STMicroelectronics NV | 18,274 | 356,439 |
TPG NV | 11,852 | 321,874 |
Unilever NV | 17,383 | 1,165,561 |
Vedior NV | 5,000 | 81,487 |
VNU NV | 6,968 | 205,810 |
Wereldhave NV | 498 | 54,153 |
Wolters Kluwer NV | 7,862 | 157,838 |
(Cost $11,661,488) | 13,522,946 | |
New Zealand 0.2% | ||
Auckland International Airport Ltd. | 5,780 | 33,316 |
Carter Holt Harvey Ltd. | 17,681 | 26,435 |
Contact Energy Ltd. | 7,349 | 33,972 |
Fisher & Paykel Appliances Holdings Ltd. | 4,480 | 13,914 |
Fisher & Paykel Corp., Ltd. | 11,605 | 27,159 |
Fletcher Building Ltd. | 13,125 | 62,759 |
Independent Newspapers Ltd. | 2,860 | 11,878 |
NGC Holdings Ltd. | 3,106 | 6,955 |
Sky City Entertainment Group Ltd. | 11,722 | 45,551 |
Sky Network Telelevision Ltd.* | 2,305 | 10,239 |
Telecom Corp. of New Zealand Ltd. | 58,935 | 261,798 |
Tenon Ltd.* | 191 | 304 |
The Warehouse Group Ltd. | 3,494 | 9,161 |
Tower Ltd.* | 6,155 | 9,514 |
(Cost $295,544) | 552,955 | |
Norway 0.6% | ||
DNB NOR ASA | 19,450 | 191,878 |
Frontline Ltd. | 1,300 | 57,845 |
Golden Ocean Group Ltd.* | 3,900 | 2,447 |
Norsk Hydro ASA | 4,380 | 344,953 |
Norske Skogindustrier ASA | 2,800 | 60,561 |
Orkla ASA | 5,614 | 184,456 |
Petroleum Geo-Services ASA* | 400 | 24,997 |
Schibsted ASA | 1,200 | 34,078 |
Ship Finance International Ltd. | 173 | 3,557 |
Smedvig ASA | 900 | 15,120 |
Statoil ASA | 16,550 | 259,591 |
Storebrand ASA | 6,450 | 62,299 |
Tandberg ASA | 3,600 | 44,728 |
Telenor ASA | 22,350 | 202,959 |
Tomra Systems ASA | 5,300 | 29,140 |
Yara International ASA* | 5,550 | 73,079 |
(Cost $825,064) | 1,591,688 | |
Portugal 0.3% | ||
Banco BPI SA | 9,159 | 37,099 |
Banco Comercial Portugues SA | 51,674 | 132,750 |
Banco Espirito Santo e Comercial de Lisboa SA | 3,035 | 54,867 |
Brisa-Auto Estrada de Portugal SA | 9,964 | 91,419 |
CIMPOR-Cimentos de Portugal | 4,045 | 22,817 |
Electricidade de Portugal | 55,883 | 169,388 |
Jeronimo Martins, SGPS SA* | 1,588 | 20,937 |
Portugal Telecom SGPS SA (Registered) | 24,112 | 298,246 |
PT Multimedia Servicos | 861 | 21,639 |
Sonae SGPS SA | 24,104 | 35,057 |
(Cost $653,601) | 884,219 | |
Singapore 0.8% | ||
Capitaland Ltd. | 27,750 | 36,209 |
CapitaMall Trust | 30,300 | 32,669 |
Chartered Semiconductors Manufacturing Ltd.* | 26,400 | 15,849 |
City Developments Ltd. | 17,000 | 73,940 |
ComfortDelGro Corp., Ltd. | 40,000 | 37,981 |
Creative Technologies Ltd. | 1,000 | 14,947 |
Datacraft Asia Ltd.* | 4,000 | 4,320 |
DBS Group Holdings Ltd. | 34,513 | 340,394 |
Fraser And Neave Ltd. | 6,860 | 68,499 |
Haw Par Corp., Ltd. | 4,245 | 13,392 |
Jardine Cycle & Carriage Ltd. | 1,759 | 11,422 |
Keppel Corp. | 18,750 | 98,781 |
Keppel Land Ltd | 1,000 | 1,378 |
Neptune Orient Lines Ltd. | 26,000 | 47,782 |
Oversea-Chinese Banking Corp., Ltd. (Foreign Registered) | 33,337 | 275,698 |
Overseas Union Enterprises | 3,000 | 14,335 |
Parkway Holdings Ltd. | 9,000 | 8,270 |
SembCorp Industries Ltd. | 31,329 | 31,091 |
SembCorp Logistics Ltd. | 5,000 | 5,299 |
SembCorp Marine Ltd. | 10,000 | 8,331 |
Singapore Airlines Ltd. | 18,000 | 125,705 |
Singapore Exchange Ltd. | 13,000 | 14,255 |
Singapore Post Ltd. | 28,000 | 15,266 |
Singapore Press Holdings Ltd. | 50,758 | 143,033 |
Singapore Technologies Engineering Ltd. | 33,000 | 47,102 |
Singapore Telecommunications Ltd. | 207,580 | 302,647 |
ST Assembly Test Services Ltd.* | 15,000 | 9,281 |
United OverSeas Bank Ltd. | 34,448 | 291,217 |
United Overseas Land Ltd. | 13,000 | 16,087 |
Venture Corp., Ltd. | 8,000 | 77,922 |
Wing Tai Holdings Ltd. | 16,333 | 10,006 |
(Cost $1,753,777) | 2,193,108 | |
Spain 3.9% | ||
Abertis Infraestructuras SA | 8,246 | 181,567 |
Acciona SA | 871 | 77,072 |
Acerinox SA | 5,836 | 93,684 |
ACS, Actividades de Construccion y Servicios SA | 8,190 | 187,022 |
Altadis SA | 8,351 | 382,532 |
Amadeus Global Travel Distribution SA "A" | 9,365 | 96,361 |
Antena 3 Television SA* | 418 | 30,198 |
Banco Bilbao Vizcaya Argentaria SA | 97,494 | 1,729,369 |
Banco Popular Espanol SA | 4,616 | 304,303 |
Banco Santander Central Hispano SA | 179,430 | 2,226,717 |
Cintra Concesiones de Infraestructuras de Transporte SA* | 4,867 | 53,453 |
Corporacion Mapfre SA | 3,256 | 47,975 |
Endesa SA | 29,125 | 684,479 |
Fomento de Construcciones y Contratas SA | 1,152 | 55,478 |
Gamesa Corporacion Tecnologica SA | 1,941 | 27,175 |
Gas Natural SDG SA | 4,539 | 140,421 |
Grupo Ferrovial SA | 2,067 | 110,472 |
Iberdrola SA | 23,485 | 596,941 |
Iberia Lineas Aereas de Espana SA | 6,671 | 23,122 |
Indra Sistemas SA | 2,647 | 45,226 |
Industria de Diseno Textil SA | 6,929 | 204,376 |
Metrovacesa SA | 764 | 35,516 |
NH Hoteles SA | 1,973 | 26,174 |
Promotora de Informaciones SA (Prisa) | 2,251 | 47,792 |
Repsol YPF SA | 27,970 | 728,429 |
Sacyr Vallehermoso SA | 2,940 | 48,554 |
Sociedad General de Aguas de Barcelona SA "A" | 1,673 | 34,975 |
Sogecable SA* | 1,182 | 52,473 |
Telefonica Publicidad e Informacion SA | 1,980 | 18,355 |
Telefonica SA | 134,718 | 2,537,979 |
Union Fenosa SA | 6,155 | 161,886 |
Zeltia SA* | 3,485 | 24,395 |
(Cost $6,937,269) | 11,014,471 | |
Sweden 2.4% | ||
Alfa Laval AB | 900 | 14,559 |
Assa Abloy AB "B" | 8,300 | 141,760 |
Atlas Copco AB "A" | 3,671 | 165,724 |
Atlas Copco AB "B" | 1,942 | 81,094 |
Axfood AB | 500 | 16,929 |
Billerud | 1,000 | 17,832 |
Capio AB* | 2,100 | 24,965 |
Castellum AB | 700 | 25,070 |
Drott AB* | 1,900 | 30,307 |
Electrolux AB | 9,185 | 210,088 |
Eniro AB | 4,700 | 48,093 |
Gambro AB "A" | 6,300 | 89,825 |
Gambro AB "B" | 2,500 | 35,081 |
Getinge AB "B" | 4,700 | 58,525 |
Hennes & Mauritz AB "B" | 14,700 | 512,091 |
Hoganas AB "B" | 600 | 16,116 |
Holmen AB "B" | 1,400 | 48,455 |
Lundin Petroleum AB* | 3,500 | 20,067 |
Modern Times Group AB "B"* | 1,200 | 32,684 |
Nordea Bank AB | 67,414 | 679,679 |
OM Hex AB* | 1,800 | 23,023 |
Sandvik AB | 7,100 | 286,333 |
SAS AB* | 1,500 | 13,543 |
Scania AB "B" | 2,500 | 98,941 |
Securitas AB "B" | 9,700 | 166,401 |
Skandia Forsakrings AB | 34,000 | 169,350 |
Skandinaviska Enskilda Banken AB | 14,660 | 283,476 |
Skanska AB "B" | 10,400 | 124,808 |
SKF AB "B" | 3,100 | 138,081 |
SSAB Svenskt Stal AB "B" | 100 | 2,355 |
SSAB Svenskt Stal AB "A" | 1,800 | 43,338 |
Svenska Cellulosa AB "B" | 6,166 | 263,048 |
Svenska Handelsbanken AB "A" | 15,300 | 398,306 |
Swedish Match AB | 11,165 | 129,368 |
Tele2 AB "B" | 2,500 | 98,188 |
Telefonaktiebolaget LM Ericsson "B"* | 438,500 | 1,398,893 |
TeliSonera AB | 56,851 | 340,486 |
TeliSonera AB | 1,600 | 9,526 |
Trelleborg AB "B" | 2,300 | 39,110 |
Volvo AB "A" | 3,310 | 126,265 |
Volvo AB "B" | 7,180 | 284,698 |
WM-Data AB "B" | 7,800 | 16,902 |
(Cost $3,799,621) | 6,723,383 | |
Switzerland 6.5% | ||
ABB Ltd. (Registered)* | 51,396 | 287,015 |
ABB Ltd.* | 7,601 | 42,664 |
Adecco SA (Registered) | 4,281 | 215,537 |
Ciba Specialty Chemicals AG (Registered)* | 2,000 | 152,141 |
Clariant AG (Registered) | 6,750 | 108,928 |
Compagnie Financiere Richemont AG "A" (Bearer) | 15,746 | 524,128 |
Credit Suisse Group (Registered) | 34,191 | 1,437,279 |
Geberit AG (Registered) | 83 | 60,730 |
Givaudan SA | 222 | 146,230 |
Holcim Ltd. (Registered) | 5,150 | 310,241 |
Kudelski SA (Bearer)* | 1,000 | 36,760 |
Kuoni Reisen AG (Registered) "B" | 10 | 4,397 |
Logitech International SA (Registered)* | 1,100 | 67,232 |
Lonza Group AG (Registered) | 1,150 | 64,726 |
Micronas Semiconductor Holdings AG (Foreign Registered)* | 690 | 33,830 |
Nestle SA (Registered) | 12,203 | 3,192,677 |
Nobel Biocare Holding AG (Bearer) | 600 | 108,698 |
Nobel Biocare Holding AG | 100 | 18,313 |
Novartis AG (Registered) | 71,968 | 3,626,564 |
Phonak Holding AG (Registered) | 709 | 23,382 |
Rieter Holding AG | 73 | 21,186 |
Roche Holding AG | 21,091 | 2,427,941 |
Schindler Holding AG | 104 | 41,249 |
Serono SA (Bearer) | 200 | 131,739 |
SGS Holdings SA (Registered) | 125 | 87,558 |
Straumann SA (Registered) | 150 | 31,132 |
Sulzer AG (Registered) | 105 | 41,761 |
Swatch Group AG (Bearer) | 850 | 124,760 |
Swatch Group AG (Registered) | 1,800 | 53,505 |
Swiss Re (Registered) | 9,684 | 690,680 |
Swisscom AG (Registered) | 842 | 331,735 |
Syngenta AG (Registered)* | 3,241 | 344,308 |
Synthes, Inc.* | 1,526 | 171,106 |
UBS AG (Registered) | 32,368 | 2,714,175 |
Unaxis Holding AG (Registered) | 276 | 27,428 |
Valora Holding AG (Registered) | 90 | 22,162 |
Zurich Financial Services AG* | 4,444 | 740,992 |
(Cost $12,659,660) | 18,464,889 | |
United Kingdom 23.6% | ||
3i Group PLC | 19,523 | 249,632 |
Aegis Group PLC | 20,907 | 43,351 |
Alliance Unichem PLC | 7,063 | 102,312 |
AMEC PLC | 7,045 | 40,273 |
Amvescap PLC | 23,728 | 146,119 |
Anglo American PLC | 43,218 | 1,022,244 |
ARM Holdings PLC | 25,576 | 54,259 |
Arriva PLC | 4,406 | 45,679 |
Associated British Ports Holdings PLC | 7,056 | 64,347 |
AstraZeneca Group PLC | 6,372 | 231,564 |
AstraZeneca PLC | 43,531 | 1,578,736 |
Aviva PLC | 69,203 | 834,379 |
BAA PLC | 33,393 | 374,410 |
BAE Systems PLC | 94,895 | 419,946 |
Balfour Beatty PLC | 14,325 | 86,702 |
Barclays PLC | 192,840 | 2,169,570 |
Barratt Developments PLC | 8,077 | 92,189 |
BBA Group PLC | 16,408 | 90,016 |
Bellway PLC | 2,380 | 37,240 |
Berkeley Group Holdings PLC | 4,489 | 69,723 |
BG Group PLC | 104,340 | 709,142 |
BHP Billiton PLC | 75,396 | 883,717 |
BOC Group PLC | 15,268 | 291,225 |
Boots Group PLC | 23,185 | 291,782 |
BP PLC | 654,211 | 6,380,586 |
BPB PLC | 16,497 | 149,891 |
Brambles Industries PLC | 24,199 | 120,911 |
British Airways PLC* | 19,365 | 87,370 |
British America Tobacco PLC | 49,426 | 851,665 |
British Land PLC | 16,448 | 282,944 |
British Sky Broadcasting Group PLC | 39,136 | 422,271 |
BT Group PLC | 259,002 | 1,009,435 |
Bunzl PLC | 14,569 | 121,534 |
Cable and Wireless PLC* | 65,846 | 150,753 |
Cadbury Schweppes PLC | 60,770 | 565,861 |
Capita Group PLC | 23,012 | 161,591 |
Carnival PLC | 5,128 | 312,882 |
Cattles PLC | 6,367 | 44,862 |
Centrica PLC | 117,813 | 534,372 |
Close Brothers Group PLC | 2,533 | 35,720 |
Cobham PLC | 2,846 | 67,590 |
Compass Group PLC | 67,645 | 319,809 |
Cookson Group PLC* | 36,677 | 24,998 |
Corus Group PLC* | 108,255 | 104,959 |
Daily Mail & General Trust "A" | 8,137 | 115,917 |
Davis Service Group PLC | 4,322 | 34,021 |
De La Rue PLC | 2,911 | 19,393 |
Diageo PLC | 92,766 | 1,323,295 |
Dixons Group PLC | 64,513 | 188,265 |
DX Services PLC* | 1 | 6 |
Electrocomponents PLC | 16,012 | 87,536 |
EMAP PLC | 8,525 | 133,474 |
EMI Group PLC | 18,815 | 95,726 |
Enterprise Inns PLC | 9,423 | 143,825 |
Exel PLC | 9,917 | 137,657 |
FirstGroup PLC | 8,522 | 57,060 |
FKI PLC | 16,691 | 37,333 |
Friends Provident PLC | 55,115 | 162,956 |
George Wimpey PLC | 9,766 | 75,843 |
GKN PLC | 17,946 | 81,485 |
GlaxoSmithKline PLC | 177,727 | 4,169,688 |
Great Portland Estates PLC | 245 | 1,548 |
Group 4 Securicor PLC | 30,768 | 82,700 |
GUS PLC | 31,226 | 562,639 |
Hammerson PLC | 9,213 | 153,621 |
Hanson PLC | 19,402 | 166,600 |
Hays PLC | 56,416 | 134,579 |
HBOS PLC | 116,097 | 1,890,148 |
Hilton Group PLC | 49,173 | 268,589 |
HMV Group PLC | 8,717 | 43,513 |
HSBC Holdings PLC | 333,954 | 5,635,786 |
ICAP PLC | 9,419 | 49,142 |
IMI PLC | 10,076 | 76,171 |
Imperial Chemical Industries PLC | 38,797 | 179,512 |
Imperial Tobacco Group PLC | 22,446 | 614,953 |
Inchcape PLC | 1,492 | 56,001 |
InterContinental Hotels Group PLC | 19,877 | 247,098 |
Intertek Group PLC | 3,659 | 49,526 |
Invensys PLC* | 153,281 | 45,614 |
ITV PLC | 126,128 | 254,866 |
J Sainsbury PLC | 38,317 | 198,993 |
Johnson Mathey PLC | 5,236 | 99,320 |
Kelda Group PLC | 10,023 | 121,713 |
Kesa Electricals PLC | 14,930 | 80,976 |
Kidde PLC | 29,591 | 94,592 |
Kingfisher PLC | 72,583 | 431,644 |
Land Securities Group PLC | 14,097 | 378,908 |
Legal & General Group PLC | 202,031 | 426,668 |
Liberty International PLC | 7,409 | 138,049 |
Lloyds TSB Group PLC | 169,093 | 1,535,556 |
LogicaCMG PLC | 17,235 | 63,780 |
London Stock Exchange PLC | 5,049 | 56,417 |
Man Group PLC | 8,874 | 250,788 |
Marconi Corp. PLC* | 4,779 | 51,611 |
Marks & Spencer Group PLC | 51,486 | 339,049 |
Meggitt PLC | 10,072 | 50,615 |
MFI Furniture Group PLC | 10,649 | 25,352 |
Misys PLC | 15,595 | 62,651 |
Mitchells & Butlers PLC | 14,424 | 94,155 |
National Express Group PLC | 2,508 | 39,749 |
National Grid Transco PLC | 94,301 | 898,001 |
National Power PLC* | 39,862 | 118,241 |
Next PLC | 8,318 | 263,501 |
Novar PLC | 8,574 | 30,988 |
Pearson PLC | 25,233 | 304,476 |
Persimmon PLC | 9,124 | 121,044 |
Pilkington PLC | 24,287 | 51,292 |
Premier Farnell PLC | 7,443 | 24,436 |
Provident Financial PLC | 7,272 | 93,821 |
Prudential PLC | 71,796 | 624,421 |
Punch Taverns PLC | 6,342 | 84,075 |
Rank Group PLC | 16,572 | 83,996 |
Reckitt Benkiser PLC | 18,037 | 545,065 |
Reed Elsevier PLC | 39,664 | 365,905 |
Rentokil Initial PLC | 61,917 | 175,637 |
Reuters Group PLC | 43,825 | 317,627 |
Rexam PLC | 16,582 | 146,286 |
Rio Tinto PLC | 32,552 | 958,073 |
RMC Group PLC | 5,987 | 97,588 |
Rolls-Royce Group PLC | 48,703 | 230,956 |
Royal & Sun Alliance Insurance Group PLC | 69,098 | 102,813 |
Royal Bank of Scotland Group PLC | 94,768 | 3,187,681 |
SABMiller PLC | 24,867 | 412,493 |
Schroders PLC | 5,472 | 78,898 |
Scottish & Newcastle PLC | 22,567 | 188,795 |
Scottish & Southern Energy PLC | 26,633 | 446,133 |
Scottish Power PLC | 57,691 | 446,644 |
Serco Group PLC | 13,638 | 62,841 |
Severn Trent PLC | 10,627 | 197,295 |
Shell Transport & Trading Co., PLC | 290,303 | 2,474,648 |
Signet Group PLC | 38,960 | 82,279 |
Slough Estates PLC | 12,154 | 128,340 |
Smith & Nephew PLC | 29,445 | 301,313 |
Smiths Group PLC | 17,422 | 274,947 |
SSL International PLC | 3,036 | 18,361 |
Stagecoach Group PLC | 19,880 | 43,416 |
Tate & Lyle PLC | 10,914 | 99,059 |
Taylor Woodrow PLC | 12,869 | 67,204 |
Tesco PLC | 236,714 | 1,462,250 |
The Peninsular and Oriental Steam Navigation Co. | 22,358 | 127,702 |
The Sage Group PLC | 41,331 | 160,488 |
TI Automotive Ltd. "A"* | 11,991 | 0 |
Tomkins PLC | 25,788 | 125,880 |
Trinity Mirror PLC | 6,568 | 80,199 |
Unilever PLC | 82,457 | 809,752 |
United Business Media PLC | 8,681 | 80,000 |
United Utilities PLC | 15,492 | 187,382 |
United Utilities PLC | 7,770 | 66,756 |
Vodafone Group PLC | 1,993,736 | 5,406,735 |
Whitbread PLC | 9,817 | 159,546 |
William Hill PLC | 9,896 | 107,156 |
Wolseley PLC | 17,746 | 331,677 |
WPP Group PLC | 35,149 | 386,675 |
Yell Group PLC | 17,708 | 149,590 |
(Cost $52,579,025) | 67,385,610 | |
Total Common Stocks (Cost $202,462,001) | 268,070,035 | |
Preferred Stocks 0.2% | ||
Belgium 0.0% | ||
Fortis (Cost $2) | 2,223 | 30 |
Germany 0.2% | ||
Fresenius Medical Care AG | 500 | 28,986 |
Henkel KGaA | 1,626 | 141,449 |
Porsche AG | 223 | 142,311 |
ProSiebensat. 1 Media AG | 2,800 | 51,380 |
RWE AG | 1,035 | 48,127 |
Volkswagen AG | 2,700 | 89,584 |
(Cost $421,056) | 501,837 | |
New Zealand 0.0% | ||
Tenon Ltd. (Cost $2,652) | 3,571 | 5,623 |
Total Preferred Stocks (Cost $423,710) | 507,490 | |
| ||
Rights 0.0% | ||
Germany 0.0% | ||
HeidelbergCement AG* (Cost $0) | 4 | 0 |
Ireland 0.0% | ||
Waterford Wedgwood PLC* (Cost $3,986) | 38,908 | 106 |
Total Rights (Cost $3,986) | 106 | |
| ||
Exchange Traded Funds 0.0% | ||
IShares MSCI EAFE Index Fund (Cost $39,689) | 280 | 44,870 |
|
| Value ($) |
|
| |
US Government Backed 0.9% | ||
US Treasury Bill, 2.182%**, 3/24/2005 (c) (Cost $2,357,180) | 2,370,000 | 2,358,624 |
|
| Value ($) |
|
| |
Cash Equivalents 1.8% | ||
Cash Management Fund Institutional, 1.99% (b) (Cost $5,182,107) | 5,182,107 | 5,182,107 |
| % of Net Assets | Value ($) |
|
| |
Total Investment Portfolio (Cost $210,468,673) (a) | 96.9 | 276,163,232 |
Other Assets and Liabilities, Net | 3.1 | 8,805,422 |
Net Assets | 100.0 | 284,968,654 |
* Non-income producing security.
** Annualized yield at time of purchase; not a coupon rate.
(a) The cost for federal income tax purposes was $216,098,473. At December 31, 2004, net unrealized appreciation for all securities based on tax cost was $60,064,759. This consisted of aggregate gross unrealized appreciation for all securities in which there was an excess of value over tax cost of $70,242,807 and aggregate gross unrealized depreciation for all securities in which there was an excess of tax cost over value of $10,178,048.
(b) Cash Management Fund Institutional is an affiliated fund and is managed by Deutsche Asset Management, Inc. The rate is the annualized seven-day yield.
(c) At December 31, 2004, these securities have been segregated, in whole or in part, to cover initial margin requirements for open futures contracts.
(d) Affiliated Issuer. This security is owned in proportion with its representation in the index.
At December 31, 2004, open futures contracts purchased were as follows:
Futures | Expiration Date | Contracts | Aggregate Face Value ($) | Value ($) | Unrealized Appreciation (Depreciation) ($) |
Hang Seng Index | 1/28/2005 | 5 | 454,893 | 457,434 | 2,540 |
Nikkei 225 | 3/10/2005 | 8 | 441,998 | 460,400 | 18,402 |
DJ Euro Stoxx 50 Index | 3/18/2005 | 161 | 6,442,784 | 6,451,380 | 8,596 |
SPI 200 Index | 3/17/2005 | 9 | 697,606 | 715,387 | 17,781 |
FTSE 100 Index | 3/18/2005 | 36 | 3,261,519 | 3,315,862 | 54,343 |
TOPIX Index | 3/10/2005 | 21 | 2,236,947 | 2,351,664 | 114,717 |
Total Net Unrealized Appreciation | 216,379 | ||||
REIT: Real Estate Investment Trust
ADR: American Depositary Receipts
The accompanying notes are an integral part of the financial statements.
|
Statement of Assets and Liabilities as of December 31, 2004 | |
Assets | |
Investments: Investments in securities, at value (cost $205,286,566) | $ 270,981,125 |
Investment in Cash Management Fund Institutional (cost $5,182,107) | 5,182,107 |
Total investments in securities, at value (cost $210,468,673) | 276,163,232 |
Foreign currency, at value, (cost $4,806,144)* | 4,827,723 |
Receivable for investments sold | 2,370,000 |
Dividends receivable | 360,489 |
Interest receivable | 23,564 |
Receivable for variation margin on open futures contracts | 718,774 |
Foreign taxes recoverable | 156,505 |
Unrealized appreciation on forward foreign currency exchange contracts | 295,514 |
Net receivable on closed forward foreign currency exchange contracts | 198,799 |
Other assets | 1,270 |
Total assets | 285,115,870 |
Liabilities | |
Payable for investments purchased | 35,142 |
Accrued management fee | 35,606 |
Other accrued expense and payables | 76,468 |
Total liabilities | 147,216 |
Net assets, at value | $ 284,968,654 |
* Includes foreign currency of $3,671,418 to cover margin requirements on foreign futures contracts.
The accompanying notes are an integral part of the financial statements.
|
|
Statement of Operations for the year ended December 31, 2004 | |
Investment Income | |
Dividends (net of foreign taxes withheld of $606,653) | $ 5,482,249 |
Dividends from Cash Management Fund Institutional | 169,995 |
Interest | 94,204 |
Total income | 5,746,448 |
Expenses: Management fee | 584,737 |
Administrator service fee | 241,556 |
Auditing | 60,223 |
Legal | 18,885 |
Trustees' fees and expenses | 15,242 |
Other | 17,237 |
Total expenses, before expense reductions | 937,880 |
Expense reductions | (92,945) |
Total expenses, after expense reductions | 844,935 |
Net investment income (loss) | 4,901,513 |
Realized and Unrealized Gain (Loss) on Investment Transactions | |
Net realized gain (loss) from: Investments | (1,852,931) |
Futures | 2,625,866 |
Foreign currency related transactions | 2,801,302 |
| 3,574,237 |
Net unrealized appreciation (depreciation) during the period on: Investments | 38,746,510 |
Futures | 68,428 |
Foreign currency related transactions | (690,335) |
| 38,124,603 |
Net gain (loss) on investment transactions | 41,698,840 |
Net increase (decrease) in net assets resulting from operations | $ 46,600,353 |
The accompanying notes are an integral part of the financial statements.
|
|
Statement of Changes in Net Assets | ||
Increase (Decrease) in Net Assets | Years Ended December 31, | |
2004 | 2003 | |
Operations: Net investment income | $ 4,901,513 | $ 3,491,452 |
Net realized gain (loss) on investment transactions | 3,574,237 | 951,679 |
Net unrealized appreciation (depreciation) on investment transactions during the period | 38,124,603 | 56,970,370 |
Net increase (decrease) in net assets resulting from operations | 46,600,353 | 61,413,501 |
Capital transactions in shares of beneficial interest: Proceeds from capital invested | 69,541,220 | 268,471,061 |
Subscriptions in-kind | — | 11,066,674 |
Value of capital withdrawn | (61,957,229) | (246,836,691) |
Net increase (decrease) in net assets from capital transactions in shares of beneficial interest | 7,583,991 | 32,701,044 |
Increase (decrease) in net assets | 54,184,344 | 94,114,545 |
Net assets at beginning of period | 230,784,310 | 136,669,765 |
Net assets at end of period | $ 284,968,654 | $ 230,784,310 |
The accompanying notes are an integral part of the financial statements.
|
Years Ended December 31, | 2004 | 2003 | 2002 | 2001 | 2000 |
Ratios to Average Net Assets and Supplemental Data | |||||
Net assets, end of period ($ millions) | 285 | 231 | 137 | 141 | 172 |
Ratio of expenses before expense reductions (%) | .39 | .40 | .44 | .42 | .46 |
Ratio of expenses after expense reductions (%) | .35 | .35 | .35 | .35 | .35 |
Ratio of net investment income (loss) (%) | 2.03 | 2.04 | 1.88 | 1.73 | 1.64 |
Portfolio turnover rate (%) | 12 | 6 | 10 | 26 | 52 |
Total Investment Return (%)a,b | 19.47 | 36.50 | (16.58) | — | — |
a Total return would have been lower had certain expenses not been reduced. b Total investment return for the Portfolio is derived from the performance of the Institutional Class of the Scudder EAFE® Equity Index Fund. | |||||
|
A. Significant Accounting Policies
The EAFE® Equity Index Portfolio (the "Portfolio"), a series of the Scudder 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 or official closing 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 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. The Portfolio may use a fair valuation model to value international equity securities in order to adjust for events which may occur between the close of the foreign exchange and the close of the New York Stock exchange.
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.
Certain risks may arise upon entering into when-issued or delayed delivery securities form the potential inability of counterparties to meet the terms of their contracts or if the issuer does not issue the securities due to political, economic, or other factors. Additionally, losses may arise due to changes in the value of the underlying securities.
Taxes. The Portfolio is considered a partnership under the Internal Revenue Code. Therefore, no federal income tax provision is necessary. Additionally, based on the Portfolio's understanding of the tax rules and rates related to income, gains and transactions for the foreign jurisdictions in which it invests, the Portfolio will provide for foreign taxes, and where appropriate, deferred foreign taxes.
Other. Investment transactions are accounted for on a trade date plus one basis for daily net asset value calculations. However, for financial reporting purposes, investment transactions are reported on 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 year ended December 31, 2004, purchases and sales of investment securities (excluding short-term investments) aggregated $61,274,853 and $27,195,486, 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 Corporation ("ICCC" or the "Administrator") is the Administrator for the Portfolio, both indirect, 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 Advisor determines the securities, instruments and other contracts relating to investments to be purchased, sold or entered into by the Portfolio. The advisory fee payable under the Investment Advisory Agreement is equal to an annual rate of 0.25% of the Portfolio's average daily assets, computed and accrued daily and payable monthly.
Northern Trust Investments, N.A. ("NTI"), an indirect subsidiary of Northern Trust Corporation, serves as sub-advisor to the Fund and is paid by the Advisor for its services. The Advisor 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 year ended December 31, 2004, 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 year ended December 31, 2004, the Advisor waived a portion of its advisory fee aggregating $89,156 and the amount charged aggregated $495,581, which was equivalent to an annual effective rate of 0.21% of the Portfolio's average daily net assets.
The Portfolio paid insurance premiums to an unaffiliated insurance broker in 2002 and 2003. This broker in turn paid a portion of its commissions to an affiliate of the Advisor, which performed certain insurance brokerage services for the broker. The Advisor has agreed to reimburse the Portfolio in 2005 for the portion of commissions (plus interest) paid to the affiliate of the Advisor attributable to the premiums paid by the Portfolio. The amounts for 2002 and 2003 were $67 and $28, respectively.
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 year ended December 31, 2004, the Administrator Service Fee was $241,301, of which $22,664 is unpaid.
Trustees' Fees and Expenses. As compensation for his or her services, each Independent Trustee receives an aggregate annual fee, plus a fee for each meeting attended (plus reimbursement for reasonable out-of-pocket expenses incurred in connection with his or her attendance at board and committee meetings) from each Fund in the Fund Complex for which he or she serves. In addition, the Chairman of the Fund Complex's Audit Committee receives an annual fee for his services. Payment of such fees and expenses is allocated among all such Funds described above in direct proportion to their relative net assets.
Other. The Portfolio may invest in Cash Management Fund Institutional, an open-end management investment company managed by DeAM, Inc.
D. Expense Reductions
For the year ended December 31, 2004, the Advisor agreed to reimburse the Portfolio $3,534, which represents a portion of the fee savings expected to be realized by the Advisor related to the outsourcing by the Advisor of certain administrative services to an unaffiliated service provider.
In addition, the Fund has entered into an agreement with its custodian whereby credits realized as a result of uninvested cash balances are used to reduce a portion of the Fund's custodian expenses. During the year ended December 31, 2004, the Administrator Service Fee was reduced by $255 for custodian credits earned.
E. Forward Foreign Currency Commitments
As of December 31, 2004, the Portfolio had the following open forward foreign currency exchange contracts:
Contracts to Deliver | In Exchange For | Settlement Date | Unrealized Appreciation | ||
USD | 4,008,696 | EUR | 3,075,000 | 1/19/2005 | $ 171,531 |
USD | 418,653 | EUR | 320,000 | 1/19/2005 | 16,362 |
USD | 1,735,864 | GBP | 938,000 | 1/19/2005 | 62,597 |
USD | 596,332 | GBP | 320,000 | 1/19/2005 | 17,215 |
USD | 1,720,377 | JPY | 178,440,000 | 1/19/2005 | 23,340 |
USD | 630,711 | JPY | 65,000,000 | 1/19/2005 | 4,469 |
Total unrealized appreciation | $ 295,514 | ||||
Currency Abbreviations |
|
| ||
USD | United States Dollar |
| EUR | Euro |
JPY | Japanese Yen |
| GBP | British Pounds |
F. Line of Credit
The Portfolio and several other affiliated funds (the "Participants") share in a $1.25 billion revolving credit facility administered by JP Morgan Chase Bank for temporary or emergency purposes, including the meeting of redemption requests that otherwise might require the untimely disposition of securities. The Participants are charged an annual commitment fee which is allocated, based upon net assets, among each of the Participants. 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.
G. Regulatory Matters and Litigation
Since at least July 2003, federal, state and industry regulators have been conducting ongoing inquiries and investigations ("inquiries") into the mutual fund industry, and have requested information from numerous mutual fund companies, including Scudder Investments. It is not possible to determine what the outcome of these inquiries will be or what the effect, if any, would be on the funds or their advisors. Publicity about mutual fund practices arising from these industry-wide inquiries serves as the general basis of a number of private lawsuits against the Scudder funds. These lawsuits, which previously have been reported in the press, involve purported class action and derivative lawsuits, making various allegations and naming as defendants various persons, including certain Scudder funds, the funds' investment advisors and their affiliates, certain individuals, including in some cases fund Trustees/Directors, officers, and other parties. Each Scudder fund's investment advisor has agreed to indemnify the applicable Scudder funds in connection with these lawsuits, or other lawsuits or regulatory actions that may be filed making allegations similar to these lawsuits regarding market timing, revenue sharing, fund valuation or other subjects arising from or related to the pending inquiries. Based on currently available information, the funds' investment advisors believe the likelihood that the pending lawsuits will have a material adverse financial impact on a Scudder fund is remote and such actions are not likely to materially affect their ability to perform under their investment management agreements with the Scudder funds.
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To the Trustees of Scudder Investment Portfolios and Holders of Beneficial Interest of EAFE® Equity Index Portfolio:
In our opinion, the accompanying statement of assets and liabilities, including the investment portfolio, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of EAFE® Equity Index Portfolio (the "Portfolio") at December 31, 2004, and the results of its operations, the changes in its net assets and the financial highlights for each of the periods indicated therein, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as "financial statements") are the responsibility of the Portfolio's management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at December 31, 2004 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.
Boston, Massachusetts | PricewaterhouseCoopers LLP |
|
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 219356 |
Proxy Voting | A description of the fund's policies and procedures for voting proxies for portfolio securities and information about how the fund voted proxies related to its portfolio securities during the 12-month period ended June 30 is available on our Web site — scudder.com (type "proxy voting" in the search field) — or on the SEC's Web site — www.sec.gov. To obtain a written copy of the fund's policies and procedures without charge, upon request, call us toll free at (800) 621-1048. |
Principal Underwriter | If you have questions, comments or complaints, contact: Scudder Distributors, Inc. 222 South Riverside Plaza (800) 621-1148 |
| Institutional Class |
Nasdaq Symbol | BTAEX |
CUSIP Number | 81111W 105 |
Fund Number | 558 |
Notes |
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Notes |
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ITEM 2. CODE OF ETHICS.
As of the end of the period, December 31, 2004, Scudder Advisor Funds II has
adopted a code of ethics, as defined in Item 2 of Form N-CSR, that applies to
its Principal Executive Officer and Principal Financial Officer.
There have been no amendments to, or waivers from, a provision of the code of
ethics during the period covered by this report that would require disclosure
under Item 2.
A copy of the code of ethics is filed as an exhibit to this Form N-CSR.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
The Fund's Board of Directors/Trustees has determined that the Fund has at least
one "audit committee financial expert" serving on its audit committee: Mr. S.
Leland Dill. This audit committee member is "independent," meaning that he is
not an "interested person" of the Fund (as that term is defined in Section
2(a)(19) of the Investment Company Act of 1940) and he does not accept any
consulting, advisory, or other compensatory fee from the Fund (except in the
capacity as a Board or committee member).
An "audit committee financial expert" is not an "expert" for any purpose,
including for purposes of Section 11 of the Securities Act of 1933, as a result
of being designated as an "audit committee financial expert." Further, the
designation of a person as an "audit committee financial expert" does not mean
that the person has any greater duties, obligations, or liability than those
imposed on the person without the "audit committee financial expert"
designation. Similarly, the designation of a person as an "audit committee
financial expert" does not affect the duties, obligations, or liability of any
other member of the audit committee or board of directors.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
EAFE EQUITY INDEX FUND
FORM N-CSR DISCLOSURE RE: AUDIT FEES
The following table shows the amount of fees that PricewaterhouseCoopers, LLP
("PWC"), the Fund's auditor, billed to the Fund during the Fund's last two
fiscal years. For engagements with PWC entered into on or after May 6, 2003, the
Audit Committee approved in advance all audit services and non-audit services
that PWC provided to the Fund.
The Audit Committee has delegated certain pre-approval responsibilities to its
Chairman (or, in his absence, any other member of the Audit Committee).
Services that the Fund's Auditor Billed to the Fund
- --------------------------------------------------------------------------------
Fiscal Year Audit Fees Audit-Related Tax Fees All Other
Ended Billed Fees Billed Billed to Fees Billed
December 31, to Fund to Fund Fund to Fund
- --------------------------------------------------------------------------------
2004 $15,300 $185 $8,735 $0
- --------------------------------------------------------------------------------
2003 $13,300 $1,237 $8,320 $0
- --------------------------------------------------------------------------------
The above "Tax Fees" were billed for professional services rendered for tax
compliance and tax return preparation.
Services that the Fund's Auditor Billed to the Adviser and
Affiliated Fund Service Providers
The following table shows the amount of fees billed by PWC to Deutsche Asset
Management, Inc. ("DeAM" or the "Adviser"), and any entity controlling,
controlled by or under common control with DeAM ("Control Affiliate") that
provides ongoing services to the Fund ("Affiliated Fund Service Provider"), for
engagements directly related to the Fund's operations and financial reporting,
during the Fund's last two fiscal years.
- --------------------------------------------------------------------------------
Audit-Related Tax Fees All Other
Fees Billed Billed to Fees Billed
to Adviser Adviser and to Adviser and
Fiscal and Affiliated Affiliated Affiliated
Year Ended Fund Service Fund Service Fund Service
December 31, Providers Providers Providers
- --------------------------------------------------------------------------------
2004 $431,907 $0 $0
- --------------------------------------------------------------------------------
2003 $538,457 $0 $0
- --------------------------------------------------------------------------------
The "Audit-Related Fees" were billed for services in connection with the
assessment of internal controls, agreed-upon procedures and additional related
procedures.
Non-Audit Services
The following table shows the amount of fees that PWC billed during the Fund's
last two fiscal years for non-audit services. For engagements entered into on or
after May 6, 2003, the Audit Committee pre-approved all non-audit services that
PWC provided to the Adviser and any Affiliated Fund Service Provider that
related directly to the Fund's operations and financial reporting. The Audit
Committee requested and received information from PWC about any non-audit
services that PWC rendered during the Fund's last fiscal year to the Adviser and
any Affiliated Fund Service Provider. The Committee considered this information
in evaluating PWC's independence.
- --------------------------------------------------------------------------------
Total
Non-Audit
Fees billed to
Adviser and
Affiliated Fund Total
Service Providers Non-Audit
(engagements Fees billed
related to Adviser and
directly to the Affiliated Fund
Total operations and Service
Non-Audit financial Providers
Fees Billed reporting (all other Total of
Fiscal to Fund of the Fund) engagements) (A), (B
Year Ended
December 31, (A) (B) (C) and (C)
- --------------------------------------------------------------------------------
2004 $8,735 $0 $253,272 $262,007
- --------------------------------------------------------------------------------
2003 $8,320 $0 $3,967,000 $3,975,320
- -------------------=------------------------------------------------------------
All other engagement fees were billed for services in connection with risk
management, tax services and process improvement/integration initiatives for
DeAM and other related entities that provide support for the operations of the
fund.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS
Not Applicable
ITEM 6. SCHEDULE OF INVESTMENTS
Not Applicable
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR
CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not Applicable
ITEM 8. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT
INVESTMENT COMPANY AND AFFILIATED PURCHASERS
Not Applicable.
ITEM 9. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
The Nominating and Governance Committee evaluates and nominates Board member
candidates. Fund shareholders may also submit nominees that will be considered
by the Committee when a Board vacancy occurs. Submissions should be mailed to
the attention of the Secretary of the Fund, One South Street, Baltimore, MD
21202.
ITEM 10. 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) There have been no changes in the registrant's internal control over
financial reporting that occurred during the registrant's last half-year (the
registrant's second fiscal half-year in the case of the annual report) that has
materially affected, or is reasonably likely to materially affect, the
registrant's internal controls over financial reporting.
ITEM 11. EXHIBITS.
(a)(1) Code of Ethics pursuant to Item 2 of Form N-CSR is filed and attached
hereto as EX-99.CODE ETH.
(a)(2) Certification pursuant to Rule 30a-2(a) under the Investment Company
Act of 1940 (17 CFR 270.30a-2(a)) is filed and attached hereto as
Exhibit 99.CERT.
(b) Certification pursuant to Rule 30a-2(b) under the Investment Company
Act of 1940 (17 CFR 270.30a-2(b)) is furnished and attached hereto as
Exhibit 99.906CERT.
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/Julian Sluyters
---------------------------
Julian Sluyters
Chief Executive Officer
Date: August 23, 2004
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/Julian Sluyters
---------------------------
Julian Sluyters
Chief Executive Officer
Date: August 23, 2004
By: /s/Paul Schubert
---------------------------
Paul Schubert
Chief Financial Officer
Date: August 23, 2004