UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D. C. 20549
FORM N-CSRS
Investment Company Act file number 811-07347
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: (212) 454-7190
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Paul Schubert
345 Park Avenue
New York, NY 10154
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(Name and Address of Agent for Service)
Date of fiscal year end: 12/31
Date of reporting period: 06/30/2005
ITEM 1. REPORT TO STOCKHOLDERS
Scudder
EAFE® Equity Index Fund
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| Semiannual Report to Shareholders |
| June 30, 2005 |
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.
Performance Summary June 30, 2005 |
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All performance shown is historical, assumes reinvestment of all dividend and capital gain distributions, 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 Fund's most recent month-end performance.
To discourage short-term trading, shareholders redeeming shares held less than 30 days will have a lower total return due to the effect of the 2% short-term redemption fee.
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 6/30/05 |
Scudder EAFE® Equity Index Fund | 6-Month* | 1-Year | 3-Year | 5-Year | Life of Class* |
Institutional Class | -1.77% | 12.50% | 10.88% | -1.51% | 4.29% |
MSCI EAFE® Index+ | -1.17% | 13.65% | 12.06% | -.55% | 4.61% |
Sources: Lipper Inc. and Deutsche Asset Management, Inc.
* Total returns shown for periods less than one year are not annualized.
* The Fund commenced operations on January 24, 1996. Index returns begin January 31, 1996.
Net Asset Value and Distribution Information |
| Institutional Class |
Net Asset Value: 6/30/05 | $ 11.67 |
12/31/04 | $ 11.89 |
Distribution Information: Six Months: Income Dividends as of 6/30/05 | $ .02 |
Institutional Class Lipper Rankings — International Multi-Cap Core Funds Category as of 6/30/05 |
Period | Rank | | Number of Funds Tracked | Percentile Ranking |
1-Year | 157 | of | 273 | 58 |
3-Year | 102 | of | 226 | 45 |
5-Year | 91 | of | 165 | 55 |
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 June 30 |
Comparative Results as of 6/30/2005 |
Scudder EAFE® Equity Index Fund | 1-Year | 3-Year | 5-Year | Life of Class* |
Institutional Class | Growth of $1,000,000 | $1,125,000 | $1,363,300 | $926,600 | $1,486,000 |
Average annual total return | 12.50% | 10.88% | -1.51% | 4.29% |
MSCI EAFE® Index+ | Growth of $1,000,000 | $1,136,500 | $1,407,200 | $973,000 | $1,528,700 |
Average annual total return | 13.65% | 12.06% | -.55% | 4.61% |
The growth of $1,000,000 is cumulative.
The minimum initial investment for the Institutional Class is $1,000,000.
* The Fund commenced operations on January 24, 1996. Index returns begin January 31, 1996.
+ The Morgan Stanley Capital International (MSCI) Europe, Australasia and Far East (EAFE) Index is an unmanaged capitalization-weighted index that tracks international stock performance in the 21 developed markets of Europe , Australasia and the Far East. The index is calculated using closing local market prices and converts to US dollars using the London close foreign exchange rates. 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.
Information About Your Fund's Expenses |
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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 June 30, 2005.
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 and Value of a $1,000 Investment
for the six months ended June 30, 2005 |
Actual Fund Return | Institutional Class |
Beginning Account Value 1/1/05 | $ 1,000.00 |
Ending Account Value 6/30/05 | $ 982.30 |
Expenses Paid per $1,000* | $ 1.97 |
Hypothetical 5% Fund Return | Institutional Class |
Beginning Account Value 1/1/05 | $ 1,000.00 |
Ending Account Value 6/30/05 | $ 1,022.81 |
Expenses Paid per $1,000* | $ 2.01 |
* 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.
Portfolio Management Review |
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In the following interview, Portfolio Manager Steven Wetter, of Northern Trust Investments, N.A. the fund's subadvisor, discusses the recent market environment as well as the performance of the Morgan Stanley Capital International (MSCI) Europe, Australasia and Far East (EAFE®) Index and Scudder EAFE® Equity Index Fund during the six-month period ended June 30, 2005.
Q: How did Scudder EAFE® Equity Index Fund perform over the semiannual period?
A: For the six-month period, Scudder EAFE® Equity Index Fund produced a total return of -1.77% (Institutional Class shares), as compared with a return of -1.17% for its benchmark, the MSCI EAFE Index. 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 and 4 for more complete performance information.)
Q: What were the primary factors affecting the international equity markets during the past six months?
A: The six-month period was a mixed bag for the global equity markets. On one hand, investors generally were encouraged by strong corporate earnings results, as companies continued to boost profits through cost-cutting and restructuring initiatives. In addition, economic growth outside of Continental Europe remained on a steady upward track. Despite these positives, the index finished the period in the red as investors looked ahead to the second half of the year and beyond. Although the current environment is positive, investors are concerned about the potential effect of rising oil prices on global growth, the possibility of the US Federal Reserve increasing short-term rates more than had been expected, and the chances that earnings growth — while still strong — has peaked and is poised to weaken. Behind this broad backdrop, there was a wide divergence in sector performance, which likely reflected investors' desire to adjust to the shifting market environment by rotating among the various industries rather than exiting the market altogether.
Q: Which sectors within the MSCI EAFE Index were the best and worst performers?
A: The top sector performer, hands down, was energy. Energy stocks, which made up 8.6% of the benchmark at period-end, produced a total return of nearly 13% for the semiannual period, well above the market as a whole. The sector was fueled by the rising price of crude oil, which hit more than $60 during the final days of the reporting period. The result has been higher profits for energy companies, and this has translated into strong gains in stock prices. Virtually all of the energy stocks in the MSCI EAFE Index produced a gain, many in the double digits.
Health care, utilities and industrials, which made up 8.1%, 5.3% and 9.8% of the benchmark, respectively, all outperformed the broader market. In a period of uncertainty regarding the direction of the global economy, investors gravitated to "defensive" sectors that tend to outperform when growth slows. Health care stocks gained the additional benefit of being more attractively valued following a long period of underperformance in 2003 and 2004, prompting investors to prospect for opportunities in the sector. Utilities, meanwhile, were boosted by the continued popularity of higher-yielding investments.
Financial stocks, the largest weighting within the benchmark at 27.4%, underperformed. Financials typically weaken when global yield curves are "flattening" — i.e., when the yield spread between longer-term bonds and short-term bonds is declining — because this reduced spread can cut into profit margins. While the sector is broad and contained more than its share of winners, several of its largest banking stocks — such as HSBC Holdings PLC (UK), Royal Bank of Scotland Group PLC (UK), UBS AG (Switzerland) and Barclays PLC (UK), to name just a few — registered declines during the period.
The consumer discretionary and information technology sectors, at 12.3% and 6.0% of the benchmark, respectively, produced negative returns. Consumer discretionary stocks weakened as investors grew nervous that companies would be unable to pass along rising input costs to consumers. Additionally, media companies — a segment within the sector — were hurt by falling demand for advertising worldwide. Tech stocks were hit by concerns about slower global growth, since a cooler economy reduces demand for technology products. The sector was weak across the board, with the worst performance coming from semiconductor and hardware/equipment stocks.
The worst performer on a sector basis was tele- communications services, which makes up 7.1% of the benchmark. European fixed-line telecoms such as Deutsche Telekom AG, Telecom Italia SpA., France Telecom SA and Portugal Telecom SGPS SA were among the individual stocks that weighed on the sector's performance.
Q: Which countries and regions outperformed and underperformed during the period?
A: Europe and Asia ex-Japan outperformed, while Japan lagged. The European markets, as a whole, outperformed as investors rotated into the region to take advantage of the attractive valuations that characterized many individual companies. Northern European countries such as Norway, Denmark and Finland performed particularly well, while the UK — which makes up almost a quarter of the benchmark — finished the period narrowly positive. However, Germany, which remains mired in an economic slump amid a lack of meaningful structural economic reform, underperformed.
The non-Japan Asian countries that make up the benchmark — Hong Kong, Singapore, New Zealand and Australia — all produced positive returns. Hong Kong and Singapore both benefited from the continued rapid growth of the broader Asian economy (China in particular), while Australia and New Zealand were both buoyed by the continued strength in commodity prices. Unfortunately, Japan — which is the second-largest benchmark component at 20.6% — underperformed. The country's economy has yet to fully recover, as evidenced by the mixed nature of the data released during the period. While the consumer sector finally appears to be improving, industrial production remains subdued. Additionally, rising oil prices have taken a toll on Japan, since the country relies on imports to fulfill its energy needs.
Q: Have you made any changes to your investment approach?
A: We have made no changes in our strategy. 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 22 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.
Portfolio Summary June 30, 2005 |
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Geographic Diversification (Excludes Cash Equivalents) | 6/30/05 | 12/31/04 |
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United Kingdom | 25% | 25% |
Japan | 22% | 22% |
France | 9% | 9% |
Switzerland | 7% | 7% |
Germany | 7% | 7% |
Australia | 5% | 5% |
Netherlands | 5% | 5% |
Spain | 4% | 4% |
Italy | 4% | 4% |
Other | 12% | 12% |
| 100% | 100% |
Sector Diversification (Excludes Cash Equivalents) | 6/30/05 | 12/31/04 |
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Financials | 28% | 28% |
Consumer Discretionary | 12% | 13% |
Industrials | 10% | 9% |
Energy | 9% | 8% |
Health Care | 8% | 8% |
Consumer Staples | 8% | 8% |
Materials | 7% | 7% |
Telecommunication Services | 7% | 8% |
Information Technology | 6% | 6% |
Utilities | 5% | 5% |
| 100% | 100% |
Geographic diversification and sector diversification are subject to change.
Ten Largest Equity Holdings at June 30, 2005
(14.7% of Net Assets) | Country | Percent |
1. BP PLC Exporter and producer of oil and natural gas | United Kingdom | 2.4% |
2. HSBC Holdings PLC Provider of international banking and financial services | United Kingdom | 1.9% |
3. Vodafone Group PLC Provider of mobile telecommunication services | United Kingdom | 1.7% |
4. GlaxoSmithKline PLC Developer of vaccines and health-related consumer products | United Kingdom | 1.5% |
5. Royal Dutch Petroleum Co. Explores, produces, refines and markets petroleum products | Netherlands | 1.4% |
6. Total SA Producer of oil and natural gas | France | 1.4% |
7. Novartis AG (Registered) Manufacturer of pharmaceutical and nutrition products | Switzerland | 1.2% |
8. Toyota Motor Corp. Manufacturer of diversified automotive products | Japan | 1.1% |
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 | 1.0% |
Portfolio holdings are subject to change.
For more complete details about the Fund's investment portfolio, see page 22. 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.
Statement of Assets and Liabilities as of June 30, 2005 (Unaudited) |
Assets |
Investment in the EAFE® Equity Index Portfolio, at value | $ 287,177,030 |
Receivable for Fund shares sold | 467,139 |
Due from Advisor | 14,906 |
Other assets | 17,809 |
Total assets | 287,676,884 |
Liabilities |
Payable for Fund shares redeemed | 45,272 |
Other accrued expenses and payables | 72,818 |
Total liabilities | 118,090 |
Net assets, at value | $ 287,558,794 |
Net Assets |
Net assets consist of: Undistributed net investment income | 2,952,823 |
Net unrealized appreciation (depreciation) on investments | 59,149,483 |
Accumulated net realized gain (loss) | (48,988,295) |
Paid-in capital | 274,444,783 |
Net assets, at value | $ 287,558,794 |
Net Asset Value |
Net Asset Value, offering and redemption price(a) per share ($287,558,794 ÷ 24,633,535 shares of beneficial interest, $.001 par value, unlimited number of shares authorized) | $ 11.67 |
(a) Redemption price per share for shares held less than 30 days is equal to net asset value less a 2% redemption fee.
The accompanying notes are an integral part of the financial statements.
Statement of Operations for the six months ended June 30, 2005 (Unaudited) |
Investment Income |
Net investment income allocated from the EAFE® Equity Index Portfolio: Dividends (net of foreign taxes withheld of $696,297) | $ 5,237,363 |
Interest — Scudder Cash Management QP Trust | 82,760 |
Interest — Cash Management Fund Institutional | 65,139 |
Interest | 16,749 |
Expenses(a) | (513,673) |
Net investment income from the EAFE® Equity Index Portfolio | 4,888,338 |
Expenses: Administrator service fee | 220,973 |
Auditing fees | 15,935 |
Legal fees | 18,394 |
Trustees' fees and expenses | 3,658 |
Reports to shareholders | 37,526 |
Registration fees | 14,750 |
Other | 1,245 |
Total expenses, before expense reductions | 312,481 |
Expense reductions | (235,879) |
Total expenses, after expense reductions | 76,602 |
Net investment income (loss) | 4,811,736 |
Realized and Unrealized Gain (Loss) on Investment Transactions |
Net realized gain (loss) from: Investments | (2,527,920) |
Futures | 732,649 |
Foreign currency related transactions | (261,506) |
| (2,056,777) |
Net unrealized appreciation (depreciation) during the period on: Investments | (6,648,592) |
Futures | (393,482) |
Foreign currency related transactions | (646,969) |
| (7,689,043) |
Net gain (loss) on investment transactions | (9,745,820) |
Net increase (decrease) in net assets resulting from operations | $ (4,934,084) |
(a) For the six months ended June 30, 2005, the Advisor for the EAFE® Equity Index Portfolio waived fees in the amount of $54,637, all of which was allocated to the Fund.
The accompanying notes are an integral part of the financial statements.
Statement of Changes in Net Assets |
Increase (Decrease) in Net Assets | Six Months Ended June 30, 2005 (Unaudited) | Year Ended December 31, 2004 |
Operations: Net investment income (loss) | $ 4,811,736 | $ 4,780,954 |
Net realized gain (loss) on investment transactions | (2,056,777) | 3,574,237 |
Net unrealized appreciation (depreciation) during the period on investment transactions | (7,689,043) | 38,124,603 |
Net increase (decrease) in net assets resulting from operations | (4,934,084) | 46,479,794 |
Distributions to shareholders from: Net investment income | (518,659) | (10,001,126) |
Fund share transactions: Proceeds from shares sold | 49,054,409 | 69,455,677 |
Reinvestment of distributions | 451,421 | 9,084,704 |
Cost of shares redeemed | (41,581,322) | (60,738,784) |
Redemption fees | 158 | — |
Net increase (decrease) in net assets from Fund share transactions | 7,924,666 | 17,801,597 |
Increase (decrease) in net assets | 2,471,923 | 54,280,265 |
Net assets at beginning of period | 285,086,871 | 230,806,606 |
Net assets at end of period (including undistributed net investment income and accumulated distributions in excess of net investment income of $2,952,823 and $1,340,254, respectively) | $ 287,558,794 | $ 285,086,871 |
The accompanying notes are an integral part of the financial statements.
Years Ended December 31, | 2005a | 2004b | 2003 | 2002 | 2001 | 2000 |
Selected Per Share Data |
Net asset value, beginning of period | $ 11.89 | $ 10.35 | $ 7.77 | $ 9.46 | $ 12.27 | $ 14.58 |
Income (loss) from investment operations: Net investment income (loss) | .19c | .33 | .17c | .16c | .19 | .25 |
Net realized and unrealized gain (loss) on investment transactions | (.39) | 1.64 | 2.64 | (1.72) | (2.87) | (2.47) |
Total from investment operations | (.20) | 1.97 | 2.81 | (1.56) | (2.68) | (2.22) |
Less distributions from: Net investment income | (.02) | (.43) | (.23) | (.13) | (.13) | (.02) |
Net realized gains on investment transactions | — | — | — | — | — | (.07) |
Total distributions | (.02) | (.43) | (.23) | (.13) | (.13) | (.09) |
Redemption fees | .00*** | — | — | — | — | — |
Net asset value, end of period | $ 11.67 | $ 11.89 | $ 10.35 | $ 7.77 | $ 9.46 | $ 12.27 |
Total Return (%)d | (1.77)** | 19.42 | 36.45 | (16.63) | (21.75) | (15.22) |
Ratios to Average Net Assets and Supplemental Data |
Net assets, end of period ($ millions) | 288 | 285 | 231 | 137 | 140 | 171 |
Ratio of expenses before expense reductions, including expenses of the EAFE® Equity Index Portfolio (%) | .60* | .58 | .60 | .65 | .63 | .65 |
Ratio of expenses after expense reductions, including expenses of the EAFE® Equity Index Portfolio (%) | .40* | .40 | .40 | .40 | .40 | .40 |
Ratio of net investment income (loss) (%) | 3.27* | 1.98 | 1.99 | 1.83 | 1.68 | 1.59 |
a For the six months ended June 30, 2005 (Unaudited). b On August 13, 2004, the Fund's Premier Class shares were renamed to Institutional Class shares. c Based on average shares outstanding during the period. d Total return would have been lower had certain expenses not been reduced. * Annualized ** Not annualized *** Amount is less than $.005. |
Notes to Financial Statements (Unaudited) |
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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." or the "Advisor"). 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 June 30, 2005, 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.
The tax character of current year distributions will be determined at the end of the current fiscal year.
Redemption Fees. Effective February 1, 2005, the Fund imposes a redemption fee of 2% of the total redemption amount on all Fund shares redeemed or exchanged within 30 days of buying them, either by purchase or exchange. This fee is assessed and retained by the Fund for the benefit of the remaining shareholders. The redemption fee is accounted for as an addition to paid-in capital.
Contingencies. In the normal course of business, the Fund may enter into contracts with service providers that contain general indemnification clauses. The Fund's maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet been made. However, based on experience, the Fund expects the risk of loss to be remote.
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. DeAM, Inc. 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 six months ended June 30, 2005, the Advisor and Administrator have contractually agreed to waive a portion of their fees and reimburse expenses of the Fund to the extent necessary to maintain the annualized expenses at 0.40%, including expenses allocated from the Portfolio.
Accordingly, for the six months ended June 30, 2005, the Administrator Service Fee was $220,973, all of which was waived. In addition, under this arrangement the Advisor and Administrator reimbursed the Fund in the amount of $14,906.
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.
Typesetting and Filing Service Fees. Under an agreement with Deutsche Investment Management Americas Inc. ("DeIM"), an indirect, wholly owned subsidiary of Deutsche Bank AG, DeIM is compensated for providing typesetting and regulatory filing services to the Fund. For the six months ended June 30, 2005, the amount charged to the Fund by DeIM included in the reports to shareholders aggregated $19,160, of which $8,400 is unpaid at June 30, 2005.
C. Share Transactions
The following table summarizes share and dollar activity in the Fund:
| Six Months Ended
June 30, 2005 | Year Ended
December 31, 2004 |
| Shares | Dollars | Shares | Dollars |
Shares sold | 4,164,006 | $ 49,054,409 | 6,470,054 | $ 69,455,677 |
Shares issued to shareholders in reinvestment of distributions | 38,159 | $ 451,421 | 787,494 | $ 9,084,704 |
Shares redeemed | (3,537,019) | $ (41,581,322) | (5,599,016) | $ (60,738,784) |
Redemption Fees | | $ 158 | | $ — |
Net increase (decrease) | 665,146 | $ 7,924,666 | 1,658,532 | $ 17,801,597 |
D. Concentration of Ownership
From time to time the Fund may have a concentration of several shareholders holding a significant percentage of shares outstanding. Investment activities of these shareholders could have a material impact on the Fund.
At June 30, 2005 there were two unaffiliated shareholders who held 38%,and 17%, respectively, and one affiliated shareholder who held 11% 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.
(The following financial statements of the EAFE® Equity Index Portfolio should be read in conjunction with the Fund's financial statements.)
Investment Portfolio as of June 30, 2005 (Unaudited) |
|
|
Shares
| Value ($) |
| |
Common Stocks 95.7% |
Australia 5.2% |
Alinta Ltd. | 3,780 | 27,981 |
Alumina Ltd. | 39,127 | 164,922 |
Amcor Ltd. | 30,791 | 156,218 |
AMP Ltd. | 63,045 | 308,740 |
Ansell Ltd. | 2,546 | 19,344 |
Aristocrat Leisure Ltd. | 11,798 | 103,530 |
Australia & New Zealand Banking Group Ltd. | 56,284 | 928,234 |
Australian Gas & Light Co., Ltd. | 16,260 | 175,641 |
Australian Stock Exchange Ltd. | 5,159 | 90,514 |
AXA Asia Pacific Holdings Ltd. | 18,956 | 62,948 |
BHP Billiton Ltd. | 110,495 | 1,510,953 |
BlueScope Steel Ltd. | 27,562 | 170,781 |
Boral Ltd. | 13,615 | 66,868 |
Brambles Industries Ltd. | 29,868 | 185,045 |
Caltex Australia Ltd. | 1,505 | 18,129 |
Centro Properties Group | 31,415 | 140,670 |
CFS Gandel Retail Trust (e) | 44,066 | 56,108 |
CFS Gandel Retail Trust* (e) | 1,461 | 1,863 |
Coca-Cola Amatil Ltd. | 18,969 | 113,744 |
Cochlear Ltd. | 1,114 | 33,102 |
Coles Myer Ltd. | 34,095 | 239,032 |
Commonwealth Bank of Australia | 39,319 | 1,132,791 |
Commonwealth Property Office Fund | 22,142 | 21,263 |
Computershare Ltd. | 10,718 | 47,477 |
CSL Ltd. | 7,236 | 184,687 |
CSR Ltd. | 25,654 | 52,072 |
DB RREEF Trust* | 49,351 | 51,173 |
Foster's Group Ltd. | 66,505 | 268,702 |
Futuris Corp., Ltd. | 10,768 | 14,876 |
General Property Trust | 69,712 | 193,162 |
Harvey Norman Holdings Ltd. | 9,201 | 17,446 |
Iluka Resources Ltd. | 2,479 | 14,163 |
ING Industrial Fund | 10,187 | 16,169 |
Insurance Australia Group Ltd. | 49,201 | 224,138 |
Investa Property Group | 30,734 | 45,298 |
James Hardie Industries NV | 10,043 | 57,739 |
John Fairfax Holdings Ltd. | 38,931 | 126,899 |
Leighton Holdings | 4,873 | 42,433 |
Lend Lease Corp., Ltd. | 14,197 | 139,740 |
Lion Nathan Ltd. | 5,624 | 32,334 |
Macquarie Airports | 8,778 | 23,856 |
Macquarie Bank Ltd. | 7,008 | 316,901 |
Macquarie Communications Infrastructure Group | 8,274 | 39,572 |
Macquarie Goodman Group* | 41,556 | 128,858 |
Macquarie Infrastructure Group | 71,385 | 225,261 |
Mayne Group Ltd. | 22,896 | 82,268 |
Mirvac Group | 33,586 | 91,093 |
Multiplex Group | 8,300 | 18,317 |
National Australia Bank Ltd. | 48,079 | 1,122,805 |
Newcrest Mining Ltd. | 13,102 | 172,875 |
Onesteel Ltd. | 8,598 | 17,236 |
Orica Ltd. | 7,714 | 104,172 |
Origin Energy Ltd. | 26,752 | 154,929 |
Pacific Brands Ltd. | 8,016 | 13,771 |
Paperlinx Ltd. | 8,341 | 19,032 |
Patrick Corp., Ltd. | 27,766 | 117,612 |
Perpetual Trustees Australia Ltd. | 1,300 | 56,580 |
Publishing & Broadcasting Ltd. | 2,483 | 27,983 |
Qantas Airways Ltd. | 18,234 | 46,626 |
QBE Insurance Group Ltd. | 26,822 | 326,346 |
Rinker Group Ltd. | 31,915 | 336,921 |
Rio Tinto Ltd. | 8,766 | 297,304 |
Santos Ltd. | 22,774 | 195,703 |
Sonic Healthcare Ltd. | 10,322 | 98,124 |
Stockland* (e) | 43,810 | 183,831 |
Stockland* (e) | 1,481 | 6,223 |
Suncorp Metway Ltd. | 18,132 | 276,821 |
TABCORP Holding Ltd. | 17,199 | 214,268 |
Telstra Corp., Ltd. | 65,275 | 251,107 |
Toll Holdings Ltd. | 4,105 | 40,659 |
Transurban Group | 29,381 | 166,066 |
Wesfarmers Ltd. | 11,614 | 352,132 |
Westfield Group* | 44,380 | 597,678 |
Westpac Banking Corp., Ltd. | 55,436 | 839,069 |
Woodside Petroleum Ltd. | 15,662 | 347,533 |
Woolworths Ltd. | 35,275 | 441,422 |
(Cost $9,034,298) | 15,007,883 |
Austria 0.4% |
Bank Austria Creditanstalt | 1,220 | 126,935 |
Boehler-Uddeholm AG | 260 | 34,341 |
Erste Bank der Oesterreichischen Sparkassen AG | 4,380 | 219,079 |
Flughafen Wien AG | 250 | 16,216 |
Immofinanz Immobilien Anlagen AG* | 10,849 | 99,386 |
Mayr Melnhof Karton AG | 150 | 20,773 |
Meinl European Land Ltd. | 1,730 | 29,984 |
Oesterreichische Elektrizititaetswirtschafts AG "A" | 280 | 77,248 |
OMV AG | 510 | 221,833 |
RHI AG* | 250 | 6,806 |
Telekom Austria AG | 11,507 | 223,672 |
Voestalpine AG | 670 | 46,868 |
Wienerberger AG | 2,310 | 107,159 |
(Cost $692,333) | 1,230,300 |
Belgium 1.3% |
Agfa Gevaert NV | 2,975 | 82,159 |
Barco NV | 214 | 15,257 |
Bekaert NV | 369 | 27,726 |
Belgacom SA* | 5,418 | 184,670 |
Cofinimmo | 119 | 18,665 |
Colruyt NV | 515 | 70,099 |
Compagnie Maritime Belge SA | 830 | 25,815 |
Delhaize Group | 2,152 | 129,034 |
Dexia | 18,295 | 401,317 |
Electrabel SA | 847 | 369,851 |
Euronav SA | 830 | 24,357 |
Fortis | 36,135 | 999,781 |
Groupe Bruxelles Lambert SA | 2,277 | 196,770 |
Interbrew | 5,637 | 190,654 |
KBC Bankverzekeringsholding | 5,656 | 445,732 |
Mobistar SA* | 744 | 62,178 |
Omega Pharma SA | 424 | 21,913 |
SA D'Ieteren NV | 90 | 18,590 |
Solvay SA | 1,959 | 201,121 |
UCB SA | 2,752 | 133,821 |
Umicore | 632 | 50,428 |
(Cost $2,587,360) | 3,669,938 |
Denmark 0.8% |
A P Moller — Maersk AS | 37 | 351,457 |
Bang & Olufsen AS "B" | 261 | 18,276 |
Carlsberg AS "B" | 1,050 | 53,809 |
Coloplast AS "B" | 812 | 47,056 |
Dampskibsselskabet Torm AS | 435 | 23,407 |
Danisco AS | 1,650 | 106,979 |
Danske Bank AS | 13,484 | 404,696 |
De Sammensluttede Vognmaend AS | 648 | 54,891 |
FLS Industries AS "B"* | 744 | 15,047 |
GN Store Nord AS | 6,554 | 74,061 |
H. Lundbeck AS | 2,105 | 53,018 |
Kobenhavns Lufthavne AS | 143 | 33,894 |
NKT Holding AS | 557 | 20,841 |
Novo Nordisk AS "B" | 7,429 | 378,138 |
Novozymes AS "B" | 1,619 | 80,097 |
Ostasiatiske Kompagni | 461 | 32,546 |
TDC AS | 6,249 | 267,495 |
Topdanmark AS* | 740 | 53,805 |
Vestas Wind Systems AS* | 5,562 | 91,809 |
William Demant Holding AS* | 765 | 38,019 |
(Cost $1,146,022) | 2,199,341 |
Finland 1.5% |
Amer Group Ltd. | 2,100 | 39,851 |
Cargotec Corp. "B"* | 1,200 | 33,502 |
Elisa Communications Oyj* | 4,300 | 67,168 |
Fortum Oyj | 11,500 | 184,414 |
Kesko Oyj | 1,900 | 47,673 |
Kone Oyj "B"* | 1,200 | 71,883 |
Metso Oyj | 3,600 | 78,254 |
Neste Oil Oyj* | 4,275 | 110,711 |
Nokia Oyj | 144,050 | 2,397,252 |
Nokian Renkaat Oyj | 3,100 | 56,532 |
Orion-yhtyma Oy "B" | 2,200 | 42,423 |
Outokumpu Oyj | 3,200 | 41,206 |
Pohjola Group PLC | 1,500 | 21,771 |
Rautaruukki Oyj | 1,400 | 20,906 |
Sampo Oyj "A" | 12,700 | 197,898 |
Stora Enso Oyj "R" | 20,200 | 257,684 |
TietoEnator Oyj | 2,860 | 86,671 |
UPM-Kymmene Oyj | 16,900 | 323,986 |
Uponor Oyj | 1,800 | 35,034 |
Wartsila Oyj | 1,800 | 51,861 |
YIT-Yhtyma Oyj | 2,100 | 70,097 |
(Cost $3,447,145) | 4,236,777 |
France 8.8% |
Accor SA | 6,355 | 296,835 |
Air France | 3,869 | 58,485 |
Alcatel SA* | 38,242 | 416,954 |
Alstom* | 127,912 | 126,697 |
Atos Origin SA* | 1,610 | 101,808 |
Autoroutes du Sud de la France | 2,210 | 125,947 |
Axa | 44,638 | 1,110,122 |
BNP Paribas SA | 24,585 | 1,680,852 |
Bouygues SA | 6,568 | 271,132 |
Business Objects SA* | 1,527 | 40,316 |
Cap Gemini SA* | 4,140 | 131,043 |
Carrefour SA | 17,402 | 839,749 |
Casino Guichard-Perrachon SA | 913 | 63,951 |
CNP Assurances | 777 | 49,605 |
Compagnie de Saint-Gobain | 9,876 | 545,770 |
Compagnie Generale des Etablissements Michelin "B" | 4,577 | 277,827 |
Credit Agricole SA | 20,462 | 517,006 |
Dassault Systemes SA | 1,982 | 95,696 |
Essilor International SA | 3,219 | 219,276 |
France Telecom SA | 45,679 | 1,327,058 |
Groupe Danone | 7,589 | 665,387 |
Hermes International | 203 | 40,901 |
Imerys SA | 1,152 | 79,270 |
Klepierre | 490 | 46,683 |
L' Air Liquide SA | 3,369 | 572,710 |
L'Oreal SA | 9,388 | 673,387 |
Lafarge SA | 5,274 | 478,594 |
Lagardere S.C.A. | 3,858 | 284,555 |
LVMH Moet—Hennessy Louis Vuitton SA | 7,649 | 588,937 |
Neopost SA | 859 | 75,575 |
PagesJaunes SA | 3,445 | 80,358 |
Pernod Ricard | 1,522 | 242,803 |
Pinault-Printemps-Redoute SA | 2,272 | 233,449 |
PSA Peugeot Citroen | 5,271 | 311,228 |
Publicis Groupe | 3,900 | 114,745 |
Renault SA | 5,867 | 515,589 |
Sagem SA | 5,904 | 121,772 |
Sanofi-Aventis | 32,665 | 2,674,238 |
Schneider Electric SA | 6,980 | 524,633 |
SCOR | 15,577 | 31,229 |
Societe BIC SA | 1,073 | 63,986 |
Societe des Autoroutes du Nord et de l'Est de la France* | 451 | 24,184 |
Societe des Autoroutes Paris-Rhin-Rhone | 839 | 49,705 |
Societe Generale | 10,287 | 1,042,004 |
Societe Television Francaise 1 | 3,454 | 91,483 |
Sodexho Alliance SA | 2,348 | 72,391 |
Suez SA | 25,665 | 694,146 |
Technip SA | 2,450 | 113,916 |
Thales SA | 2,114 | 85,668 |
Thomson SA | 7,747 | 184,397 |
Total SA | 17,636 | 4,130,032 |
Total SA VVPR Strip* | 972 | 12 |
Unibail | 1,467 | 187,881 |
Valeo SA | 2,050 | 91,753 |
Veolia Environnement | 9,406 | 352,125 |
Vinci SA | 4,625 | 384,738 |
Vivendi Universal SA* | 33,091 | 1,036,283 |
Zodiac SA | 882 | 47,353 |
(Cost $18,680,196) | 25,304,229 |
Germany 6.2% |
Adidas-Salomon AG | 1,450 | 241,889 |
Allianz AG (Registered) | 10,685 | 1,223,081 |
Altana AG | 2,010 | 114,847 |
BASF AG | 16,791 | 1,112,907 |
Bayer AG | 20,283 | 674,592 |
Bayerische Hypo-und Vereinsbank AG* (e) | 14,540 | 378,153 |
Bayerische Hypo-und Vereinsbank AG* (e) | 3,122 | 81,231 |
Beiersdorf AG | 650 | 72,919 |
Celesio AG | 1,138 | 89,493 |
Commerzbank AG | 14,753 | 318,962 |
Continental AG | 4,260 | 306,246 |
DaimlerChrysler AG | 26,797 | 1,085,369 |
Deutsche Bank AG (Registered) (d) | 15,123 | 1,179,145 |
Deutsche Boerse AG | 3,232 | 252,406 |
Deutsche Lufthansa AG* | 6,416 | 78,584 |
Deutsche Post AG | 15,453 | 360,819 |
Deutsche Telekom AG (Registered)* | 84,493 | 1,561,486 |
Douglas Holdings AG | 650 | 23,503 |
E.ON AG | 19,326 | 1,715,764 |
Epcos AG* | 1,350 | 16,860 |
Fresenius Medical Care AG | 1,066 | 91,000 |
HeidelbergCement AG* | 2,127 | 152,983 |
HeidelbergCement AG VVPR Strip* | 104 | 0 |
Heidelberger Druckmaschinen AG* | 1,322 | 38,647 |
Hochtief AG | 1,606 | 56,190 |
Hypo Real Estate Holding AG* | 3,920 | 148,818 |
Infineon Technologies AG* | 20,584 | 191,111 |
IVG Immobilien AG | 1,687 | 31,326 |
KarstadtQuelle AG | 2,059 | 27,412 |
Linde AG | 2,435 | 163,922 |
MAN AG | 4,638 | 191,937 |
Merck KGaA | 1,544 | 122,672 |
Metro AG | 4,838 | 239,481 |
MLP AG | 1,150 | 21,475 |
Muenchener Rueckversicherungs — Gesellschaft AG (Registered) | 5,753 | 612,702 |
Premiere AG* | 1,166 | 40,308 |
Puma AG | 455 | 112,407 |
RWE AG | 13,067 | 839,845 |
SAP AG | 6,870 | 1,193,310 |
Schering AG | 5,094 | 311,966 |
Siemens AG | 24,747 | 1,799,048 |
Suedzucker AG | 1,150 | 23,025 |
ThyssenKrupp AG | 10,961 | 189,984 |
TUI AG | 4,407 | 108,764 |
Volkswagen AG | 6,919 | 315,648 |
Wincor Nixdorf AG | 421 | 34,431 |
(Cost $14,444,674) | 17,946,668 |
Greece 0.6% |
Alpha Bank AE | 8,914 | 236,871 |
Coca-Cola Hellenic Bottling Co. SA | 3,920 | 106,716 |
Cosmote Mobile Telelcommunications SA | 3,670 | 66,279 |
EFG Eurobank Ergasias | 6,600 | 202,201 |
Emporiki Bank of Greece | 1,550 | 45,806 |
Germanos SA | 630 | 21,116 |
Greek Organization of Football Prognostics | 6,071 | 174,448 |
Hellenic Petroleum SA | 2,970 | 31,906 |
Hellenic Technodomiki SA | 2,280 | 11,244 |
Hellenic Telecommunications Organization SA | 8,800 | 169,774 |
Intracom SA | 2,190 | 10,953 |
National Bank of Greece SA | 8,181 | 279,058 |
Piraeus Bank SA | 4,650 | 86,810 |
Public Power Corp. (PPC) | 3,486 | 87,236 |
Titan Cement Co. | 2,230 | 68,620 |
Viohalco, Hellenic Copper and Aluminum Industry SA | 3,290 | 21,186 |
(Cost $1,138,846) | 1,620,224 |
Hong Kong 1.7% |
ASM Pacific Technology Ltd. | 5,000 | 23,366 |
Bank of East Asia Ltd. | 42,971 | 126,644 |
BOC Hong Kong Holdings Ltd. | 123,000 | 232,016 |
Cathay Pacific Airways Ltd. | 35,000 | 63,641 |
Cheung Kong (Holdings) Ltd. | 46,000 | 444,717 |
Cheung Kong Infrastrucure Holdings Ltd. | 10,000 | 29,516 |
CLP Holdings Ltd. | 55,600 | 319,150 |
Esprit Holdings Ltd. | 30,815 | 221,768 |
Giordano International Ltd. | 26,000 | 17,692 |
Hang Lung Properties Ltd. | 63,000 | 92,561 |
Hang Seng Bank Ltd. | 23,600 | 321,364 |
Henderson Land Development Co., Ltd. | 25,000 | 119,447 |
Hong Kong & China Gas Co., Ltd. | 121,887 | 248,034 |
Hong Kong Electric Holdings Ltd. | 48,000 | 218,857 |
Hong Kong Exchange & Clearing Ltd. | 36,000 | 93,251 |
Hopewell Holdings Ltd. | 21,000 | 53,837 |
Hutchison Telecommunications International Ltd.* | 30,000 | 29,772 |
Hutchison Whampoa Ltd. | 67,100 | 603,072 |
Hysan Development Co. | 13,590 | 28,194 |
Johnson Electric Holdings Ltd. | 36,000 | 32,978 |
Kerry Properties Ltd. | 11,156 | 24,891 |
Kingboard Chemical Holdings Ltd. | 8,900 | 28,214 |
Li & Fung Ltd. | 55,000 | 113,803 |
MTR Corp., Ltd. | 48,801 | 93,823 |
New World Development Co., Ltd. | 65,350 | 79,946 |
Orient Overseas International Ltd. | 4,400 | 19,231 |
PCCW Ltd. | 119,443 | 74,584 |
SCMP Group Ltd. | 27,200 | 11,895 |
Shangri-La Asia Ltd. | 36,499 | 56,383 |
Sino Land Co., Ltd. | 32,301 | 34,300 |
Sun Hung Kai Properties Ltd. (REIT) | 41,297 | 406,218 |
Swire Pacific Ltd. "A" | 31,000 | 273,027 |
Techtronic Industries Co., Ltd. | 30,000 | 75,578 |
Television Broadcasts Ltd. | 9,000 | 51,056 |
Wharf Holdings Ltd. | 39,102 | 136,512 |
Wing Hang Bank Ltd. | 4,000 | 25,966 |
Yue Yuen Industrial (Holdings) Ltd. | 18,000 | 54,979 |
(Cost $3,879,582) | 4,880,283 |
Ireland 0.8% |
Allied Irish Banks PLC | 26,797 | 573,007 |
Bank of Ireland PLC (e) | 25,404 | 408,419 |
Bank of Ireland PLC (e) | 4,416 | 71,563 |
CRH PLC | 16,387 | 434,895 |
DCC PLC | 2,107 | 42,054 |
Depfa Bank PLC | 10,713 | 171,372 |
Eircom Group PLC | 12,232 | 27,210 |
Elan Corp. PLC* | 12,546 | 85,660 |
Fyffes PLC | 7,415 | 22,129 |
Grafton Group PLC* | 6,932 | 80,299 |
Greencore Group PLC | 4,282 | 18,650 |
IAWS Group PLC | 3,475 | 48,599 |
Independent News & Media PLC | 19,065 | 58,818 |
Irish Life & Permanent PLC | 8,993 | 157,350 |
Kerry Group PLC | 4,249 | 104,898 |
Kingspan Group PLC | 2,310 | 27,276 |
Paddy Power PLC | 1,301 | 22,227 |
Ryanair Holdings PLC* | 5,147 | 39,751 |
Waterford Wedgwood PLC "Unit"* | 5,002 | 354 |
(Cost $2,048,968) | 2,394,531 |
Italy 3.8% |
Alleanza Assicurazioni SpA | 13,544 | 146,816 |
Assicurazioni Generali SpA | 29,531 | 919,409 |
Autogrill SpA* | 3,093 | 40,662 |
Autostrade SpA | 9,463 | 250,288 |
Banca Antonventeta SpA* | 7,227 | 233,432 |
Banca Fideuram SpA | 8,881 | 41,945 |
Banca Intesa SpA (e) | 100,402 | 458,008 |
Banca Intesa SpA (e) | 28,797 | 122,783 |
Banca Monte dei Paschi di Siena SpA | 34,695 | 122,113 |
Banca Nazionale del Lavoro SpA* | 43,246 | 149,017 |
Banca Popolare di Milano | 10,530 | 103,585 |
Banche Popolari Unite* | 11,005 | 218,069 |
Banco Popolari di Verona e Novara | 11,702 | 199,223 |
Benetton Group SpA | 1,610 | 14,840 |
Bulgari SpA | 3,349 | 37,409 |
Capitalia SpA | 44,339 | 246,914 |
Edison SpA* | 20,735 | 46,119 |
Enel SpA | 114,220 | 992,751 |
Eni SpA | 80,320 | 2,062,111 |
Fiat SpA* | 16,330 | 118,410 |
FinecoGroup SpA* | 2,988 | 26,677 |
Finmeccanica SpA | 206,493 | 192,194 |
Gruppo Editoriale L'Espresso SpA | 2,322 | 12,649 |
Italcementi SpA | 2,001 | 31,141 |
Lottomatica SpA | 657 | 21,373 |
Luxottica Group SpA | 4,644 | 96,037 |
Mediaset SpA | 26,474 | 311,550 |
Mediobanca SpA | 15,211 | 284,127 |
Mediolanum SpA | 6,085 | 37,872 |
Mondadori (Arnoldo) Editore SpA | 3,666 | 34,810 |
Pirelli & C. Accomandita per Azioni | 84,527 | 87,804 |
Riunione Adriatica di Sicurta SpA | 9,613 | 186,573 |
San Paolo IMI SpA | 34,140 | 466,912 |
SeatPagine Gialle SpA | 129,754 | 53,929 |
Snam Rete Gas SpA | 29,235 | 156,042 |
Telecom Italia Media SpA* | 43,490 | 20,880 |
Telecom Italia SpA | 328,255 | 1,019,882 |
Telecom Italia SpA (Savings Shares) | 178,852 | 462,931 |
Terna SpA | 33,898 | 87,647 |
Tiscali SpA* | 2,936 | 8,324 |
UniCredito Italiano SpA | 136,409 | 717,690 |
(Cost $7,751,485) | 10,840,948 |
Japan 20.9% |
ACOM Co., Ltd. | 2,300 | 146,872 |
Aderans Co., Ltd. | 500 | 11,851 |
Advantest Corp. | 2,600 | 190,573 |
Aeon Co., Ltd. | 21,200 | 322,759 |
AEON Credit Services Co., Ltd. | 1,130 | 70,472 |
Aiful Corp. | 2,100 | 155,936 |
Aisin Seiki Co., Ltd. | 6,000 | 129,640 |
Ajinomoto Co., Inc. | 19,000 | 210,608 |
All Nippon Airways Co., Ltd. | 13,000 | 39,536 |
Alps Electric Co., Ltd. | 6,000 | 91,395 |
Amada Co., Ltd. | 12,000 | 81,167 |
Aoyama Trading Co., Ltd. | 2,200 | 55,100 |
Asahi Breweries, Ltd. | 13,000 | 155,001 |
Asahi Glass Co., Ltd. | 31,000 | 324,782 |
Asahi Kasei Corp. | 39,000 | 184,749 |
Asatsu, Inc. | 1,100 | 30,465 |
Astellas Pharma, Inc. | 16,400 | 559,672 |
Autobacs Seven Co., Ltd. | 1,100 | 36,825 |
Bandai Co., Ltd. | 2,100 | 42,273 |
Bank of Yokohama Ltd. | 37,000 | 212,567 |
Benesse Corp. | 1,900 | 60,614 |
Bridgestone Corp. | 21,000 | 401,779 |
Canon Sales Co., Inc. | 2,000 | 33,607 |
Canon, Inc. | 23,300 | 1,220,437 |
Casio Computer Co., Ltd. | 8,000 | 104,168 |
Central Glass Co., Ltd. | 3,000 | 18,693 |
Central Japan Railway Co. | 30 | 231,233 |
Chiyoda Corp. | 4,000 | 49,107 |
Chubu Electric Power Co., Inc. | 18,200 | 435,896 |
Chugai Pharmaceutical Co., Ltd. | 8,000 | 123,426 |
Citizen Watch Co., Ltd. | 8,000 | 72,114 |
COMSYS Holdings Corp. | 3,000 | 27,518 |
Credit Saison Co., Ltd. | 5,400 | 178,941 |
CSK Corp. | 2,400 | 93,821 |
Dai Nippon Printing Co., Ltd. | 20,000 | 321,371 |
Daicel Chemical Industries Ltd. | 6,000 | 31,414 |
Daido Steel Co., Ltd. | 8,000 | 35,870 |
Daiichi Pharmaceutical Co., Ltd. | 8,000 | 176,437 |
Daikin Industries Ltd. | 8,000 | 199,164 |
Daimaru, Inc. | 8,000 | 70,645 |
Dainippon Ink & Chemical, Inc. | 21,000 | 66,868 |
Dainippon Screen Manufacturing Co., Ltd. | 5,000 | 33,545 |
Daito Trust Construction Co., Ltd. | 2,900 | 108,271 |
Daiwa House Industry Co., Ltd. | 16,000 | 182,429 |
Daiwa Securities Group, Inc. | 41,000 | 252,150 |
Denki Kagaku Kogyo Kabushiki Kaisha | 17,000 | 60,833 |
Denso Corp. | 17,400 | 395,583 |
DENTSU, Inc. | 63 | 155,016 |
Dowa Mining Co., Ltd. | 10,000 | 66,120 |
East Japan Railway Co. | 105 | 538,282 |
Ebara Corp. | 8,000 | 30,645 |
Eisai Co., Ltd. | 8,000 | 267,941 |
Electric Power Development Co., Ltd.* | 4,600 | 132,479 |
FamilyMart Co., Ltd. | 2,300 | 65,831 |
FANUC Ltd. | 5,500 | 348,545 |
Fast Retailing Co., Ltd. | 1,800 | 93,323 |
Fuji Electric Holdings Co., Ltd. | 9,000 | 27,311 |
Fuji Photo Film Co., Ltd. | 15,000 | 487,992 |
Fuji Television Network, Inc. | 12 | 23,200 |
Fujikura Ltd. | 11,000 | 53,531 |
Fujitsu Ltd. | 58,000 | 301,834 |
Hankyu Department Stores, Inc. | 2,000 | 12,608 |
Hikari Tsushin, Inc. | 500 | 35,747 |
Hino Motors Ltd. | 6,000 | 34,582 |
Hirose Electric Co., Ltd. | 1,000 | 109,632 |
Hitachi Chemical Co., Ltd. | 3,900 | 71,174 |
Hitachi Construction Machinery Co., Ltd. | 2,000 | 23,659 |
Hitachi Ltd. | 99,000 | 599,472 |
Hitachi Software Engineering Co., Ltd. | 300 | 5,086 |
Hokkaido Electric Power Co., Inc. | 4,800 | 98,084 |
Hokugin Financial Group, Inc. | 31,000 | 94,924 |
Honda Motor Co., Ltd. | 24,500 | 1,205,208 |
House Food Corp. | 3,000 | 44,309 |
Hoya Corp. | 3,400 | 390,587 |
IBIDEN Co., Ltd. | 3,000 | 78,469 |
Inpex Corp.* | 10 | 56,196 |
Isetan Co., Ltd. | 6,000 | 74,986 |
Ishikawajima - Harima Heavy Industries Co., Ltd.* | 35,000 | 50,560 |
ITO EN, Ltd. | 1,100 | 56,396 |
Ito-Yokado Co., Ltd. | 11,000 | 362,785 |
Itochu Corp.* | 51,000 | 256,088 |
Itochu Techno-Science Corp. | 600 | 20,902 |
JAFCO Co., Ltd. | 600 | 31,726 |
Japan Airlines Systems Corp.* | 19,000 | 51,096 |
Japan Real Estate Investment Corp. (REIT) | 11 | 93,371 |
Japan Retail Fund Investment Corp. (REIT) | 9 | 77,137 |
Japan Tobacco, Inc. | 28 | 373,166 |
JFE Holdings, Inc. | 17,225 | 423,323 |
JGC Corp. | 8,000 | 98,001 |
JSR Corp. | 6,000 | 125,770 |
Kajima Corp. | 30,000 | 110,309 |
Kamigumi Co., Ltd. | 6,000 | 46,114 |
Kaneka Corp. | 10,000 | 111,693 |
Kansai Electric Power Co., Inc. | 23,700 | 476,030 |
Kansai Paint Co., Ltd. | 3,000 | 19,246 |
Kao Corp. | 17,000 | 400,534 |
Katokichi Co., Ltd. | 3,300 | 22,424 |
Kawasaki Heavy Industries Ltd. | 48,000 | 91,708 |
Kawasaki Kisen Kaisha Ltd. | 13,000 | 76,580 |
KDDI Corp. | 79 | 364,498 |
Keihin Electric Express Railway Co., Ltd. | 12,000 | 73,346 |
Keio Electric Railway Co., Ltd. | 16,000 | 86,240 |
Keyence Corp. | 1,070 | 238,203 |
Kikkoman Corp. | 6,000 | 52,862 |
Kinden Corp. | 6,000 | 44,269 |
Kinki Nippon Railway Co., Ltd. | 50,900 | 155,271 |
Kirin Brewery Co., Ltd. | 25,000 | 241,902 |
Kobe Steel Ltd. | 93,000 | 174,737 |
Kokuyo Corp. | 3,000 | 40,405 |
Komatsu Ltd. | 30,000 | 231,613 |
Komori Corp. | 2,000 | 30,292 |
Konami Co., Ltd. | 3,200 | 67,177 |
Konica Minolta Holdings, Inc. | 15,000 | 139,283 |
Koyo Seiko Co., Ltd. | 4,000 | 53,373 |
Kubota Corp. | 37,000 | 201,958 |
Kuraray Co., Ltd. | 12,000 | 113,305 |
Kuraya Sanseido, Inc.* | 3,700 | 49,273 |
Kurita Water Industries | 3,000 | 46,151 |
Kyocera Corp. | 5,000 | 380,978 |
Kyowa Hakko Kogyo Co., Ltd. | 10,000 | 64,511 |
Kyushu Electric Power Co. | 11,700 | 253,793 |
Lawson, Inc. | 1,900 | 66,209 |
Leopalace21 Corp. | 4,000 | 66,216 |
Mabuchi Motor Co., Ltd. | 700 | 40,264 |
Makita Corp. | 3,000 | 58,627 |
Marubeni Corp. | 45,000 | 153,541 |
Marui Co., Ltd. | 11,000 | 147,311 |
Matsumotokiyoshi Co., Ltd. | 500 | 13,620 |
Matsushita Electric Industrial Co., Ltd. | 64,614 | 980,416 |
Matsushita Electric Works Ltd. | 12,000 | 99,613 |
Meiji Dairies Corp. | 8,000 | 45,513 |
Meiji Seika Kaisha Ltd. | 12,000 | 58,935 |
Meitec Corp. | 1,100 | 33,755 |
Millea Holdings, Inc. | 48 | 646,435 |
Minebea Co., Ltd. | 8,000 | 32,165 |
Mitsubishi Chemical Corp. | 58,000 | 168,868 |
Mitsubishi Corp. | 36,000 | 486,971 |
Mitsubishi Electric Corp. | 60,000 | 316,378 |
Mitsubishi Estate Co., Ltd. | 36,000 | 393,947 |
Mitsubishi Gas & Chemical Co. | 10,000 | 51,011 |
Mitsubishi Heavy Industries Ltd. | 102,000 | 266,034 |
Mitsubishi Logistics Corp. | 3,000 | 30,469 |
Mitsubishi Materials Corp. | 34,000 | 79,847 |
Mitsubishi Rayon Co., Ltd. | 17,000 | 70,294 |
Mitsubishi Securities Co., Ltd. | 5,000 | 44,012 |
Mitsubishi Tokyo Financial Group, Inc. | 151 | 1,274,642 |
Mitsui & Co., Ltd. | 44,000 | 414,475 |
Mitsui Chemicals, Inc. | 20,000 | 116,895 |
Mitsui Engineering & Shipbuilding Co., Ltd. | 14,000 | 27,379 |
Mitsui Fudosan Co., Ltd. | 26,000 | 291,096 |
Mitsui Mining & Smelting Co., Ltd. | 19,000 | 88,770 |
Mitsui O.S.K. Lines Ltd. | 33,000 | 202,128 |
Mitsui Sumitomo Insurance Co., Ltd. | 38,260 | 342,964 |
Mitsui Trust Holdings, Inc. | 17,100 | 174,454 |
Mitsukoshi Ltd.* | 15,000 | 67,233 |
Mitsumi Electric Co., Ltd. | 900 | 9,230 |
Mizuho Financial Group, Inc. | 259 | 1,166,379 |
Murata Manufacturing Co., Ltd. | 6,500 | 328,570 |
Namco Ltd. | 2,200 | 29,163 |
NEC Corp. | 58,000 | 311,692 |
NEC Electronics Corp. | 1,000 | 44,848 |
Net One Systems Co., Ltd. | 18 | 46,192 |
NGK Insulators Ltd. | 9,000 | 87,311 |
NGK Spark Plug Co., Ltd. | 4,000 | 45,894 |
Nichii Gakkan Co. | 300 | 7,287 |
Nichirei Corp. | 9,000 | 34,916 |
Nidec Corp. | 1,800 | 189,545 |
Nikko Cordial Corp. | 52,000 | 227,266 |
Nikon Corp. | 9,000 | 101,384 |
Nintendo Co., Ltd. | 3,200 | 333,342 |
Nippon Building Fund, Inc. | 10 | 90,113 |
Nippon Electric Glass Co., Ltd. | 6,000 | 89,889 |
Nippon Express Co., Ltd. | 29,000 | 125,396 |
Nippon Meat Packers, Inc. | 5,000 | 57,949 |
Nippon Mining Holdings, Inc. | 26,000 | 146,963 |
Nippon Oil Co., Ltd. | 43,000 | 291,177 |
Nippon Sheet Glass Co., Ltd. | 10,000 | 38,986 |
Nippon Steel Corp. | 189,000 | 437,105 |
Nippon Telegraph & Telephone Corp. | 160 | 685,769 |
Nippon Unipac Holdings | 32 | 117,315 |
Nippon Yusen Kabushiki Kaisha | 36,000 | 205,639 |
Nishi-Nippon City Bank Ltd. | 12,000 | 52,027 |
Nishimatsu Construction Co., Ltd. | 5,000 | 17,977 |
Nissan Chemical Industries, Ltd. | 3,000 | 32,109 |
Nissan Motor Co., Ltd. | 71,000 | 698,945 |
Nisshin Seifun Group, Inc. | 6,000 | 61,985 |
Nisshin Steel Co., Ltd. | 29,000 | 72,389 |
Nisshinbo Industries | 2,000 | 16,306 |
Nissin Food Products Co., Ltd. | 2,800 | 71,692 |
Nitto Denko Corp. | 5,100 | 290,088 |
NOK Corp. | 3,300 | 91,660 |
Nomura Holdings, Inc. | 54,600 | 648,297 |
Nomura Research Institute Ltd. | 800 | 79,176 |
NSK Ltd. | 16,000 | 81,852 |
NTN Corp. | 15,000 | 80,265 |
NTT Data Corp. | 42 | 142,537 |
NTT DoCoMo, Inc. | 542 | 796,763 |
Obayashi Corp. | 19,000 | 101,423 |
Obic Co., Ltd. | 200 | 33,842 |
Odakyu Electric Railway Co., Ltd. | 23,000 | 121,607 |
Oji Paper Co., Ltd. | 29,000 | 150,819 |
Oki Electric Industry Co.* | 15,000 | 52,574 |
Okumura Corp. | 1,000 | 5,641 |
Olympus Corp. | 7,000 | 133,666 |
Omron Corp. | 7,600 | 167,438 |
Onward Kashiyama Co. | 4,000 | 50,535 |
Oracle Corp. | 1,100 | 41,499 |
Oriental Land Co., Ltd. | 1,900 | 112,488 |
ORIX Corp. | 2,600 | 388,772 |
Osaka Gas Co. | 64,000 | 201,688 |
Pioneer Corp. | 5,400 | 81,180 |
Promise Co., Ltd. | 3,100 | 197,851 |
Q.P. Corp. | 2,000 | 16,731 |
Rakuten, Inc. | 160 | 127,524 |
Resona Holding, Inc.* | 151,000 | 280,463 |
Ricoh Co., Ltd. | 21,000 | 326,313 |
ROHM Co., Ltd. | 3,400 | 326,197 |
Ryohin Keikaku Co., Ltd. | 400 | 19,709 |
Sanken Electric Co., Ltd. | 2,000 | 25,946 |
Sankyo Co., Ltd. (e) | 13,000 | 248,799 |
Sankyo Co., Ltd. (e) | 1,300 | 60,223 |
Santen Pharmaceutical Co., Ltd. | 2,000 | 45,389 |
Sanyo Electric Co., Ltd. | 55,000 | 139,919 |
Sapporo Holdings Ltd. | 5,000 | 24,029 |
SBI Holdings, Inc. | 26,000 | 261,220 |
Secom Co., Ltd. | 6,400 | 274,161 |
Sega Sammy Holdings, Inc.* | 2,200 | 134,353 |
Seiko Epson Corp. | 3,300 | 109,654 |
Seino Transportation Co. | 4,000 | 36,148 |
Sekisui Chemical Co., Ltd. | 14,000 | 96,029 |
Sekisui House Ltd. | 17,000 | 171,067 |
Seven-Eleven Japan Co., Ltd. | 12,000 | 331,936 |
SFCG Co., Ltd. | 130 | 30,324 |
Sharp Corp. | 29,000 | 451,415 |
Shimachu Co., Ltd. | 700 | 17,537 |
Shimamura Co., Ltd. | 800 | 67,270 |
Shimano, Inc. | 2,500 | 70,925 |
Shimizu Corp. | 18,000 | 83,380 |
Shin-Etsu Chemical Co., Ltd. | 11,200 | 423,272 |
Shinko Securities Co., Ltd. | 12,000 | 37,778 |
Shinsei Bank Ltd. | 34,000 | 182,459 |
Shionogi & Co., Ltd. | 11,000 | 141,191 |
Shiseido Co., Ltd. | 13,000 | 163,846 |
Showa Denko KK | 34,000 | 80,267 |
Showa Shell Sekiyu KK | 5,000 | 49,943 |
Skylark Co., Ltd. | 2,000 | 30,400 |
SMC Corp. | 1,900 | 206,066 |
Softbank Corp. | 8,200 | 319,746 |
Softbank Investment Corp. | 179 | 59,926 |
Sony Corp. | 28,600 | 984,897 |
Stanley Electric Co., Ltd. | 4,700 | 75,924 |
Sumitomo Bakelite Co., Ltd. | 2,000 | 12,888 |
Sumitomo Chemical Co., Ltd. | 50,000 | 228,884 |
Sumitomo Corp. | 34,000 | 270,840 |
Sumitomo Electric Industries Ltd. | 24,000 | 243,724 |
Sumitomo Heavy Industries Ltd.* | 18,000 | 85,934 |
Sumitomo Metal Industries Ltd. | 138,000 | 233,752 |
Sumitomo Metal Mining Co., Ltd. | 17,000 | 115,929 |
Sumitomo Mitsui Finance Group, Inc. | 125 | 842,156 |
Sumitomo Osaka Cement Co., Ltd. | 12,000 | 31,742 |
Sumitomo Realty & Development Co., Ltd. | 13,000 | 144,826 |
Sumitomo Rubber Industries Ltd. | 4,000 | 40,666 |
Suzuken Co., Ltd. | 1,900 | 47,840 |
T&D Holdings, Inc.* | 7,050 | 329,772 |
Taiheiyo Cement Corp. | 29,000 | 77,342 |
Taisei Corp. | 33,000 | 110,994 |
Taisho Pharmaceutical Co., Ltd. | 5,000 | 96,989 |
Taiyo Nippon Sanso Corp. | 6,000 | 30,444 |
Taiyo Yuden Co., Ltd. | 2,000 | 21,987 |
Takara Holdings, Inc. | 4,000 | 24,819 |
Takashimaya Co., Ltd. | 9,000 | 80,221 |
Takeda Chemical Industries Ltd. | 27,400 | 1,354,710 |
Takefuji Corp. | 3,650 | 246,417 |
Tanabe Seiyaku Co., Ltd. | 6,000 | 57,854 |
TDK Corp. | 4,000 | 271,430 |
Teijin Ltd. | 27,000 | 125,057 |
Teikoku Oil Co., Ltd. | 4,000 | 29,655 |
Terumo Corp. | 6,000 | 172,345 |
The 77 Bank Ltd. | 8,000 | 49,039 |
The Bank of Fukuoka Ltd. | 17,000 | 100,357 |
The Bank of Kyoto Ltd. | 7,000 | 59,292 |
The Chiba Bank Ltd. | 23,000 | 150,870 |
The Furukawa Electric Co., Ltd.* | 19,000 | 73,217 |
The Gunma Bank Ltd. | 10,000 | 60,117 |
The Joyo Bank Ltd. | 19,000 | 92,889 |
The Shizuoka Bank Ltd. | 19,000 | 162,581 |
The Sumitomo Trust & Banking Co., Ltd. | 41,000 | 248,462 |
The Suruga Bank Ltd. | 6,000 | 48,856 |
THK Co., Ltd. | 3,700 | 76,125 |
TIS, Inc. | 1,000 | 34,002 |
Tobu Railway Co., Ltd. | 26,000 | 94,096 |
Toda Corp. | 6,000 | 25,588 |
Toho Co., Ltd. | 4,300 | 61,760 |
Tohoku Electric Power Co., Inc. | 13,800 | 294,454 |
Tokuyama Corp. | 5,000 | 35,508 |
Tokyo Broadcasting System, Inc. | 1,000 | 16,479 |
Tokyo Electric Power Co. | 35,500 | 847,377 |
Tokyo Electron Ltd. | 5,400 | 283,123 |
Tokyo Gas Co., Ltd. | 74,000 | 276,291 |
Tokyo Steel Manufacturing Co., Ltd. | 2,600 | 32,740 |
Tokyo Style Co., Ltd. | 2,000 | 19,906 |
Tokyo Tatemono Co., Ltd. | 5,000 | 33,412 |
Tokyu Corp. | 32,000 | 143,037 |
Tokyu Land Corp. | 7,000 | 32,771 |
TonenGeneral Sekiyu K.K. | 10,000 | 108,093 |
Toppan Printing Co., Ltd. | 19,000 | 200,893 |
Toray Industries, Inc. | 42,000 | 198,421 |
Toshiba Corp. | 89,000 | 352,677 |
Tosoh Corp. | 15,000 | 61,880 |
Tostem Inax Holding Corp. | 7,848 | 132,862 |
TOTO Ltd. | 10,000 | 78,794 |
Toyo Seikan Kaisha Ltd. | 6,000 | 94,459 |
Toyo Suisan Kaisha Ltd. | 1,000 | 15,625 |
Toyobo Co., Ltd. | 20,000 | 46,481 |
Toyoda Gosei Co., Ltd. | 900 | 14,442 |
Toyota Industries Corp. | 6,400 | 173,728 |
Toyota Motor Corp. | 89,100 | 3,185,540 |
Toyota Tsusho Corp. | 5,000 | 81,154 |
Trend Micro, Inc. | 3,500 | 123,703 |
Ube Industries Ltd.* | 34,000 | 68,797 |
UFJ Holdings, Inc.* | 119 | 616,971 |
Uni-Charm Co. | 1,400 | 56,235 |
UNY Co., Ltd. | 6,000 | 67,900 |
Ushio, Inc. | 4,000 | 70,874 |
USS Co., Ltd. | 800 | 51,133 |
Wacoal Corp. | 4,000 | 50,743 |
West Japan Railway Corp. | 59 | 202,415 |
World Co., Ltd. | 1,300 | 45,289 |
Yahoo Japan Corp.* | 126 | 263,184 |
Yakult Honsha Co., Ltd. | 4,000 | 71,934 |
Yamada Denki Co., Ltd. | 2,600 | 148,769 |
Yamaha Corp. | 5,000 | 77,698 |
Yamaha Motor Co., Ltd. | 6,000 | 109,213 |
Yamato Transport Co., Ltd. | 13,000 | 179,696 |
Yamazaki Baking Co., Ltd. | 5,000 | 43,028 |
Yokogawa Electric Corp. | 8,000 | 98,480 |
ZEON Corp. | 4,000 | 34,521 |
(Cost $55,459,879) | 60,057,821 |
Luxembourg 0.1% |
Arcelor | 15,648 | 305,393 |
Stolt-Nielsen SA | 1,200 | 40,306 |
(Cost $278,534) | 345,699 |
Netherlands 4.9% |
ABN AMRO Holding NV | 53,878 | 1,322,963 |
Aegon NV | 44,605 | 575,031 |
Akzo Nobel NV | 9,000 | 353,215 |
ASML Holding NV* | 15,710 | 245,582 |
Buhrmann NV* | 2,219 | 21,897 |
Corio NV | 1,590 | 88,486 |
DSM NV | 2,342 | 159,926 |
Euronext NV | 2,583 | 87,166 |
European Aeronautic Defence & Space Co. | 8,069 | 256,046 |
Fortis Bank Nederland (Holding) NV VVPR Strip* | 50 | 0 |
Getronics NV | 1,445 | 17,020 |
Hagemeyer NV* | 10,177 | 23,991 |
Heineken NV | 7,425 | 228,747 |
IHC Caland NV | 806 | 55,174 |
ING Groep NV | 57,828 | 1,626,905 |
Koninklijke (Royal) KPN NV | 66,314 | 555,433 |
Koninklijke (Royal) Philips Electronics NV | 41,117 | 1,033,939 |
Koninklijke Ahold NV (ADR)* | 11,830 | 96,770 |
Koninklijke Ahold NV* | 39,343 | 322,365 |
Oce NV | 1,190 | 17,491 |
QIAGEN NV* | 3,029 | 35,339 |
Randstad Holdings NV | 1,070 | 36,822 |
Reed Elsevier NV | 21,694 | 301,482 |
Rodamco Europe NV | 1,277 | 104,542 |
Royal Dutch Petroleum Co. | 63,912 | 4,159,574 |
Royal Numico NV* | 4,324 | 172,446 |
STMicroelectronics NV | 19,551 | 311,170 |
TNT NV | 12,291 | 311,219 |
Unilever NV | 17,682 | 1,144,670 |
Vedior NV | 6,228 | 87,574 |
VNU NV | 7,792 | 216,666 |
Wereldhave NV | 498 | 53,094 |
Wolters Kluwer NV | 7,862 | 149,949 |
(Cost $12,255,449) | 14,172,694 |
New Zealand 0.2% |
Auckland International Airport Ltd. | 33,452 | 55,561 |
Carter Holt Harvey Ltd. | 17,680 | 27,991 |
Contact Energy Ltd. | 7,349 | 39,351 |
Fisher & Paykel Appliances Holdings Ltd. | 4,480 | 10,406 |
Fisher & Paykel Corp., Ltd. | 11,605 | 26,226 |
Fletcher Building Ltd. | 15,863 | 76,025 |
Independent Newspapers Ltd. | 2,860 | 12,936 |
Kiwi Income Property Trust | 23,532 | 18,003 |
NGC Holdings Ltd. | 3,106 | 8,203 |
Sky City Entertainment Group Ltd. | 11,722 | 36,418 |
Sky Network Television Ltd.* | 2,305 | 9,142 |
Telecom Corp. of New Zealand Ltd. | 62,517 | 261,166 |
The Warehouse Group Ltd. | 3,494 | 9,712 |
Tower Ltd.* | 5,324 | 7,936 |
(Cost $357,473) | 599,076 |
Norway 0.7% |
DNB NOR ASA | 21,250 | 220,477 |
Frontline Ltd. | 1,700 | 67,156 |
Norsk Hydro ASA | 4,400 | 402,201 |
Norske Skogindustrier ASA | 3,550 | 58,174 |
Orkla ASA | 6,114 | 224,457 |
Petroleum Geo-Services ASA* | 1,800 | 42,854 |
Prosafe ASA | 900 | 26,824 |
Schibsted ASA | 1,200 | 32,953 |
Smedvig ASA | 900 | 18,126 |
Statoil ASA | 20,350 | 413,594 |
Storebrand ASA | 7,950 | 74,388 |
Tandberg ASA | 3,600 | 38,451 |
Tandberg Television ASA* | 1,650 | 20,212 |
Telenor ASA | 26,050 | 206,824 |
Tomra Systems ASA | 5,300 | 21,705 |
Yara International ASA* | 6,650 | 105,177 |
(Cost $1,080,423) | 1,973,573 |
Portugal 0.3% |
Banco BPI SA | 9,159 | 34,862 |
Banco Comercial Portugues SA | 60,624 | 155,106 |
Banco Espirito Santo e Comercial de Lisboa SA | 3,035 | 47,274 |
Brisa-Auto Estrada de Portugal SA | 11,589 | 90,943 |
CIMPOR-Cimentos de Portugal | 4,045 | 22,708 |
Electricidade de Portugal | 58,749 | 147,769 |
Jeronimo Martins, SGPS SA* | 1,588 | 22,764 |
Portugal Telecom SGPS SA (Registered) | 24,060 | 229,226 |
PT Multimedia-Servicos de Telecomunicacoes e Multimedia, SGPS SA | 2,832 | 29,743 |
Sonae SGPS SA | 24,104 | 33,205 |
(Cost $704,746) | 813,600 |
Singapore 0.8% |
Ascendas Real Estate Investment Trust (REIT) | 35,000 | 45,826 |
Capitaland Ltd. | 39,750 | 56,022 |
CapitaMall Trust | 30,300 | 42,731 |
Chartered Semiconductors Manufacturing Ltd.* | 26,400 | 20,658 |
City Developments Ltd. | 17,000 | 75,330 |
ComfortDelGro Corp., Ltd. | 64,000 | 63,941 |
Creative Technologies Ltd. | 1,000 | 6,575 |
Datacraft Asia Ltd.* | 4,000 | 4,407 |
DBS Group Holdings Ltd. | 35,513 | 300,498 |
Fraser And Neave Ltd. | 6,860 | 63,708 |
Haw Par Corp., Ltd. | 4,245 | 12,953 |
Jardine Cycle & Carriage Ltd. | 5,759 | 45,334 |
Keppel Corp. | 18,750 | 138,705 |
Keppel Land Ltd. | 1,000 | 1,485 |
Neptune Orient Lines Ltd. | 26,000 | 58,157 |
Oversea-Chinese Banking Corp., Ltd. | 33,337 | 229,194 |
Overseas Union Enterprises | 3,000 | 16,168 |
Parkway Holdings Ltd. | 9,000 | 10,014 |
SembCorp Industries Ltd. | 29,450 | 46,544 |
SembCorp Logistics Ltd. | 4,196 | 4,277 |
SembCorp Marine Ltd. | 10,000 | 15,540 |
Singapore Airlines Ltd. | 20,000 | 132,708 |
Singapore Exchange Ltd. | 25,000 | 31,223 |
Singapore Post Ltd. | 28,000 | 16,503 |
Singapore Press Holdings Ltd. | 56,758 | 144,692 |
Singapore Technologies Engineering Ltd. | 44,000 | 63,091 |
Singapore Telecommunications Ltd. | 205,580 | 338,008 |
ST Assembly Test Services Ltd.* | 36,000 | 25,726 |
Suntec Real Estate Investment Trust (REIT)* | 22,000 | 15,872 |
United OverSeas Bank Ltd. | 35,448 | 298,244 |
United Overseas Land Ltd. | 16,545 | 22,357 |
Venture Corp., Ltd. | 8,000 | 75,750 |
Wing Tai Holdings Ltd. | 16,333 | 9,622 |
(Cost $1,945,189) | 2,431,863 |
Spain 3.8% |
Abertis Infraestructuras SA | 7,073 | 179,680 |
Acciona SA | 871 | 86,124 |
Acerinox SA | 5,836 | 79,271 |
ACS, Actividades de Construccion y Servicios SA | 8,301 | 231,516 |
Altadis SA | 8,303 | 347,057 |
Amadeus Global Travel Distribution SA "A" | 11,168 | 97,716 |
Antena 3 de Television SA* | 2,684 | 53,610 |
Banco Bilbao Vizcaya Argentaria SA | 104,636 | 1,609,979 |
Banco Popular Espanol SA | 27,090 | 326,694 |
Banco Santander Central Hispano SA | 183,427 | 2,117,990 |
Cintra Concesiones de Infraestructuras de Transporte SA* | 6,186 | 72,417 |
Corporacion Mapfre SA | 3,256 | 48,542 |
Ebro Puleva SA | 2,061 | 36,566 |
Endesa SA | 29,777 | 696,912 |
Fomento de Construcciones y Contratas SA | 1,152 | 64,696 |
Gamesa Corporacion Tecnologica SA | 1,941 | 26,236 |
Gas Natural SDG SA | 5,315 | 156,200 |
Grupo Ferrovial SA | 2,067 | 132,780 |
Iberdrola SA | 25,038 | 658,363 |
Iberia Lineas Aereas de Espana SA | 11,243 | 32,115 |
Indra Sistemas SA | 3,458 | 68,294 |
Industria de Diseno Textil SA | 7,576 | 194,566 |
Inmobiliaria Colonial SA | 768 | 40,806 |
Metrovacesa SA | 1,123 | 66,145 |
Metrovacesa SA* | 56 | 3,302 |
NH Hoteles SA | 1,973 | 27,002 |
Promotora de Informaciones SA (Prisa) | 2,251 | 43,502 |
Repsolf YPF SA | 28,691 | 730,306 |
Sacyr Vallehermoso SA | 2,940 | 69,273 |
Sociedad General de Aguas de Barcelona SA "A" | 1,673 | 36,065 |
Sogecable SA* | 1,251 | 44,361 |
Telefonica Publicidad e Informacion SA | 3,881 | 33,817 |
Telefonica SA | 143,520 | 2,343,357 |
Union Fenosa SA | 6,944 | 211,028 |
Zeltia SA* | 3,485 | 23,547 |
(Cost $7,514,882) | 10,989,835 |
Sweden 2.3% |
Alfa Laval AB | 900 | 12,990 |
Assa Abloy AB "B" | 10,000 | 128,288 |
Atlas Copco AB "A" | 11,913 | 188,352 |
Atlas Copco AB "B" | 7,926 | 113,730 |
Axfood AB | 500 | 12,520 |
Billerud AB | 1,000 | 11,954 |
Capio AB* | 2,100 | 30,848 |
Castellum AB | 700 | 28,481 |
Electrolux AB | 9,985 | 212,257 |
Eniro AB | 6,200 | 70,380 |
Gambro AB "A" | 6,300 | 84,074 |
Gambro AB "B" | 3,600 | 48,051 |
Getinge AB "B" | 6,000 | 81,677 |
Hennes & Mauritz AB "B" | 14,650 | 514,442 |
Hoganas AB "B" | 600 | 16,062 |
Holmen AB "B" | 1,900 | 51,228 |
Lundin Petroleum AB* | 3,500 | 29,938 |
Modern Times Group AB "B"* | 1,200 | 36,657 |
Nordea Bank AB | 65,914 | 597,430 |
OM Hex AB* | 3,100 | 35,210 |
Sandvik AB | 6,500 | 240,454 |
SAS AB* | 1,500 | 12,863 |
Scania AB "B" | 3,000 | 110,305 |
Securitas AB "B" | 10,700 | 178,107 |
Skandia Forsakrings AB | 34,000 | 186,533 |
Skandinaviska Enskilda Banken AB "A" | 15,860 | 263,018 |
Skanska AB "B" | 11,800 | 145,421 |
SKF AB "B" | 12,400 | 126,412 |
SSAB Svenskt Stal AB "B" | 90 | 1,979 |
SSAB Svenskt Stal AB "A" | 2,250 | 51,724 |
Svenska Cellulosa AB "B" | 5,966 | 190,635 |
Svenska Handelsbanken AB "A" | 16,000 | 326,044 |
Swedish Match AB | 11,165 | 126,521 |
Tele2 AB "B" | 9,900 | 92,744 |
Telefonaktiebolaget LM Ericsson "B"* | 457,400 | 1,461,252 |
TeliSonera AB | 56,251 | 268,361 |
TeliSonera AB | 1,600 | 7,605 |
Trelleborg AB "B" | 2,300 | 34,050 |
Volvo AB "A" | 3,310 | 130,070 |
Volvo AB "B" | 6,980 | 283,249 |
Wihlborgs Fastigheter AB* | 2,895 | 62,929 |
Wihlborgs Fastigheter AB | 579 | 14,083 |
WM-Data AB "B" | 7,800 | 19,555 |
(Cost $4,099,111) | 6,638,483 |
Switzerland 6.5% |
ABB Ltd. (Registered)* | 55,306 | 360,375 |
ABB Ltd.* | 7,601 | 49,147 |
Adecco SA (Registered) | 4,281 | 194,342 |
Ciba Specialty Chemicals AG (Registered)* | 2,453 | 142,436 |
Clariant AG (Registered) | 6,750 | 89,330 |
Compagnie Financiere Richemont AG "A" (Bearer) | 15,333 | 513,954 |
Credit Suisse Group | 37,459 | 1,469,629 |
Geberit AG (Registered) | 156 | 99,679 |
Givaudan SA | 222 | 128,940 |
Holcim Ltd. (Registered) | 5,790 | 351,265 |
Kudelski SA (Bearer)* | 1,000 | 36,432 |
Kuoni Reisen AG (Registered) "B" | 46 | 18,674 |
Logitech International SA (Registered)* | 2,200 | 70,730 |
Lonza Group AG (Registered) | 1,150 | 63,497 |
Micronas Semiconductor Holdings AG (Foreign Registered)* | 690 | 26,001 |
Nestle SA (Registered) | 12,452 | 3,182,255 |
Nobel Biocare Holding AG (Bearer) | 700 | 141,669 |
Nobel Biocare Holding AG | 100 | 20,124 |
Novartis AG (Registered) | 72,845 | 3,459,915 |
Phonak Holding AG (Registered) | 709 | 26,510 |
PSP Swiss Property AG* | 770 | 33,397 |
Rieter Holdings AG | 73 | 20,183 |
Roche Holding AG | 21,680 | 2,734,053 |
Schindler Holding AG | 104 | 37,486 |
Serono SA (Bearer) | 200 | 127,818 |
SGS Holdings SA (Registered) | 125 | 85,584 |
SIG Holding AG (Registered) | 110 | 24,849 |
Straumann SA (Registered) | 150 | 31,207 |
Sulzer AG (Registered) | 105 | 43,221 |
Swatch Group AG (Bearer) | 1,144 | 160,296 |
Swatch Group AG (Registered) | 1,800 | 51,337 |
Swiss Re (Registered) | 10,280 | 630,055 |
Swisscom AG (Registered) | 797 | 259,533 |
Syngenta AG (Registered)* | 3,300 | 338,007 |
Synthes, Inc.* | 1,526 | 167,226 |
UBS AG (Registered) | 32,991 | 2,567,472 |
Unaxis Holding AG (Registered) | 276 | 37,878 |
Valora Holding AG (Registered) | 90 | 20,367 |
Zurich Financial Services AG* | 4,444 | 763,222 |
(Cost $13,257,028) | 18,578,095 |
United Kingdom 24.0% |
3i Group PLC | 18,964 | 229,706 |
Aegis Group PLC | 28,210 | 50,049 |
Alliance Unichem PLC | 8,689 | 131,961 |
AMEC PLC | 7,045 | 41,502 |
Amvescap PLC | 26,246 | 155,684 |
Anglo American Capital PLC | 43,791 | 1,027,762 |
ARM Holdings PLC | 38,181 | 77,152 |
Arriva PLC | 5,966 | 58,123 |
Associated British Ports Holdings PLC | 11,865 | 104,244 |
AstraZeneca Group PLC | 6,372 | 264,096 |
AstraZeneca PLC | 44,027 | 1,819,337 |
Aviva PLC | 73,053 | 811,054 |
BAA PLC | 33,050 | 366,470 |
BAE Systems PLC | 99,058 | 507,086 |
Balfour Beatty PLC | 14,325 | 84,709 |
Barclays PLC | 199,157 | 1,976,110 |
Barratt Developments PLC | 8,077 | 103,480 |
BBA Group PLC | 16,408 | 90,561 |
Bellway PLC | 2,380 | 36,695 |
Berkeley Group Holdings PLC | 4,489 | 73,355 |
BG Group PLC | 109,113 | 894,207 |
BHP Billiton PLC | 76,163 | 976,893 |
BOC Group PLC | 16,150 | 289,463 |
Boots Group PLC | 23,046 | 250,822 |
Bovis Homes Group PLC | 2,635 | 33,487 |
BP PLC | 660,815 | 6,871,626 |
BPB PLC | 16,497 | 155,788 |
Brambles Industries PLC | 24,199 | 132,044 |
Britannic Group PLC | 4,709 | 47,670 |
British Airways PLC* | 19,365 | 91,039 |
British America Tobacco PLC | 49,523 | 956,578 |
British Land PLC | 17,366 | 272,118 |
British Sky Broadcasting Group PLC | 39,348 | 370,821 |
Brixton PLC | 6,007 | 38,243 |
BT Group PLC | 264,689 | 1,086,122 |
Bunzl PLC | 11,331 | 105,816 |
Cable and Wireless PLC | 65,846 | 175,119 |
Cadbury Schweppes PLC | 64,555 | 614,524 |
Capita Group PLC | 20,424 | 134,168 |
Carnival PLC | 5,508 | 312,823 |
Cattles PLC | 8,499 | 46,794 |
Centrica PLC | 115,319 | 478,041 |
Close Brothers Group PLC | 2,533 | 33,371 |
Cobham PLC* | 3,977 | 100,796 |
Compass Group PLC | 71,857 | 301,449 |
Cookson Group PLC* | 3,668 | 19,968 |
Corus Group PLC* | 108,255 | 80,698 |
Daily Mail & General Trust "A" | 8,137 | 95,585 |
Davis Service Group PLC | 4,322 | 35,084 |
De La Rue PLC | 2,911 | 21,100 |
Diageo PLC | 92,759 | 1,363,032 |
Dixons Group PLC | 64,513 | 180,912 |
Electrocomponents PLC | 16,012 | 68,697 |
EMAP PLC | 8,525 | 118,486 |
EMI Group PLC | 27,224 | 123,323 |
Enterprise Inns PLC | 12,554 | 187,001 |
Exel PLC | 9,917 | 150,141 |
Filtrona PLC* | 1 | 2 |
First Choice Holidays PLC | 9,855 | 33,640 |
FirstGroup PLC | 10,787 | 63,434 |
FKI PLC | 16,691 | 28,975 |
Friends Provident PLC | 55,115 | 179,304 |
Gallaher Group PLC | 19,973 | 296,354 |
George Wimpey PLC | 9,766 | 76,602 |
GKN PLC | 24,082 | 110,830 |
GlaxoSmithKline PLC | 180,936 | 4,365,559 |
Great Portland Estates PLC | 245 | 1,530 |
Group 4 Securicor PLC | 38,300 | 100,411 |
GUS PLC | 30,969 | 486,858 |
Hammerson PLC | 9,213 | 146,291 |
Hanson PLC | 21,281 | 203,886 |
Hays PLC | 56,416 | 130,366 |
HBOS PLC | 121,143 | 1,864,283 |
Hilton Group PLC | 48,951 | 250,052 |
HMV Group PLC | 8,717 | 36,790 |
HSBC Holdings PLC | 345,243 | 5,502,495 |
ICAP PLC | 12,399 | 65,814 |
IMI PLC | 13,516 | 100,635 |
Imperial Chemical Industries PLC | 38,797 | 175,987 |
Imperial Tobacco Group PLC | 22,473 | 603,539 |
Inchcape PLC | 1,957 | 71,912 |
InterContinental Hotels Group PLC | 14,085 | 177,187 |
Intertek Group PLC | 5,316 | 66,603 |
Invensys PLC* | 153,281 | 28,609 |
iSOFT Group PLC | 4,900 | 36,728 |
ITV PLC | 124,062 | 272,961 |
J Sainsbury PLC | 42,471 | 216,405 |
Johnson Mathey PLC | 6,101 | 116,395 |
Kelda Group PLC | 10,023 | 125,168 |
Kesa Electricals PLC | 14,930 | 74,445 |
Kingfisher PLC | 75,367 | 330,371 |
Land Securities Group PLC | 14,663 | 364,302 |
Legal & General Group PLC | 207,563 | 426,390 |
Liberty International PLC | 8,450 | 146,460 |
Lloyds TSB Group PLC | 172,678 | 1,459,601 |
LogicaCMG PLC | 21,951 | 68,086 |
London Stock Exchange PLC | 6,643 | 58,438 |
Man Group PLC | 9,682 | 250,183 |
Marconi Corp. PLC* | 6,676 | 36,059 |
Marks & Spencer Group PLC | 54,595 | 351,544 |
Meggitt PLC | 10,072 | 50,907 |
MFI Furniture Group PLC | 10,649 | 21,040 |
Misys PLC | 15,595 | 66,148 |
Mitchells & Butlers PLC | 14,424 | 85,976 |
National Express Group PLC | 3,467 | 56,263 |
National Grid Transco PLC | 96,571 | 933,841 |
National Power PLC* | 44,214 | 163,096 |
Next PLC | 8,563 | 230,626 |
Pearson PLC | 25,056 | 293,935 |
Persimmon PLC | 9,124 | 127,453 |
Pilkington PLC | 24,287 | 51,930 |
Premier Farnell PLC | 7,443 | 21,451 |
Provident Financial PLC | 8,907 | 114,576 |
Prudential PLC | 74,563 | 659,356 |
Punch Taverns PLC | 6,342 | 82,977 |
Rank Group PLC | 16,572 | 79,533 |
Reckitt Benkiser PLC | 18,986 | 557,844 |
Reed Elsevier PLC | 42,120 | 402,136 |
Rentokil Initial PLC | 61,917 | 176,293 |
Reuters Group PLC | 44,285 | 312,169 |
Rexam PLC | 19,072 | 164,085 |
Rio Tinto PLC | 32,952 | 1,003,265 |
Rolls-Royce Group PLC* | 51,802 | 265,589 |
Rolls-Royce Group PLC "B" | 2,590,100 | 4,641 |
Royal & Sun Alliance Insurance Group PLC | 80,679 | 120,737 |
Royal Bank of Scotland Group PLC | 97,901 | 2,948,185 |
SABMiller PLC | 26,458 | 411,676 |
Schroders PLC | 5,472 | 74,002 |
Scottish & Newcastle PLC | 24,766 | 204,994 |
Scottish & Southern Energy PLC | 26,501 | 479,174 |
Scottish Power PLC | 57,541 | 509,771 |
Serco Group PLC | 18,723 | 85,243 |
Severn Trent PLC | 10,627 | 193,111 |
Shell Transport & Trading Co., PLC | 296,563 | 2,872,877 |
Signet Group PLC | 55,336 | 107,447 |
Slough Estates PLC | 12,154 | 113,130 |
Smith & Nephew PLC | 31,272 | 307,800 |
Smiths Group PLC | 17,555 | 288,696 |
SSL International PLC | 3,036 | 15,352 |
Stagecoach Group PLC | 19,880 | 41,895 |
Stolt Offshore SA* | 5,800 | 52,496 |
Tate & Lyle PLC | 13,864 | 118,192 |
Taylor Woodrow PLC | 19,387 | 116,930 |
Tesco PLC | 239,297 | 1,363,021 |
The Peninsular and Oriental Steam Navigation Co. | 25,245 | 143,150 |
The Sage Group PLC | 41,331 | 164,994 |
TI Automotive Ltd. "A"* | 11,991 | 0 |
Tomkins PLC | 25,788 | 120,213 |
Travis Perkins PLC | 3,190 | 99,106 |
Trinity Mirror PLC | 10,839 | 119,513 |
Unilever PLC | 85,350 | 820,317 |
United Business Media PLC | 7,149 | 63,291 |
United Utilities PLC (e) | 18,354 | 216,465 |
United Utilities PLC (e) | 15,540 | 91,925 |
Vodafone Group PLC | 2,001,182 | 4,862,677 |
Whitbread PLC | 8,414 | 143,197 |
William Hill PLC | 11,248 | 108,231 |
Wolseley PLC | 18,184 | 380,877 |
WPP Group PLC | 36,565 | 375,099 |
Yell Group PLC | 21,420 | 162,862 |
(Cost $54,172,949) | 68,946,245 |
Total Common Stocks (Cost $215,976,572) | 274,878,106 |
|
Preferred Stocks 0.2% |
Belgium 0.0% |
Fortis VVPR Strip* (Cost $2) | 2,223 | 54 |
Germany 0.2% |
Fresenius Medical Care AG | 500 | 34,829 |
Henkel KGaA | 1,836 | 164,171 |
Porsche AG | 245 | 183,665 |
ProSiebensat. 1 Media AG | 2,800 | 48,067 |
RWE AG | 1,035 | 59,284 |
Volkswagen AG | 3,083 | 109,159 |
(Cost $468,877) | 599,175 |
Total Preferred Stocks (Cost $468,879) | 599,229 |
|
Rights 0.0% |
Belgium 0.0% |
HeidelbergCement AG* (Cost $0) | 4 | 0 |
Ireland 0.0% |
Waterford Wedgwood PLC* (Cost $28) | 3,183 | 4 |
Singapore 0.0% |
Oversea-Chinese Banking Corp., Ltd.* (Cost $21,640) | 6,667 | 25,509 |
Spain 0.0% |
Metrovacesa SA* | 1,179 | 6,392 |
Sacyr Vallehermoso SA* | 2,940 | 2,170 |
(Cost $4,098) | 8,562 |
Sweden 0.0% |
TeliaSonera AB* (Cost $361) | 14,100 | 1,408 |
Total Rights (Cost $26,127) | 35,483 |
| Principal Amount ($) | Value ($) |
| |
US Government Backed 0.3% |
United States |
US Treasury Bills 2.815%**, 7/14/2005 (c) | 420,000 | 419,575 |
2.71%**, 7/14/2005 | 300,000 | 299,692 |
Total US Government Backed (Cost $718,859) | 719,267 |
|
Shares
| Value ($) |
| |
Exchange Traded Funds 0.0% |
IShares MSCI EAFE® Index Fund (Cost $39,689) | 840 | 44,009 |
|
Cash Equivalents 1.2% |
Scudder Cash Management QP Trust, 3.14% (b) (Cost $3,339,967) | 3,339,967 | 3,339,967 |
| % of Net Assets | Value ($) |
| |
Total Investment Portfolio (Cost $220,570,093) (a) | 97.4 | 279,616,061 |
Other Assets and Liabilities, Net | 2.6 | 7,560,985 |
Net Assets | 100.0 | 287,177,046 |
* Non-income producing security.
** Annualized yield at time of purchase; not a coupon rate.
(a) The cost for federal income tax purposes was $226,115,304. At June 30, 2005, net unrealized appreciation for all securities based on tax cost was $53,500,757. This consisted of aggregate gross unrealized appreciation for all securities in which there was an excess of value over tax cost of $65,471,801 and aggregate gross unrealized depreciation for all securities in which there was an excess of tax cost over value of $11,971,044.
(b) Scudder Cash Management QP Trust, an affiliated fund, is managed by Deutsche Investment Management Americas Inc. The rate shown is the annualized seven-day yield at period end.
(c) At June 30, 2005, these securities have been segregated, in whole or in part, to cover initial margin requirements for open futures contracts.
(d) Affiliated Issuer. This security is owned in proportion with its representation in the index.
(e) Securities with the same description are the same corporate entity but trade on different stock exchanges.
At June 30, 2005, open futures contracts purchased were as follows:
Futures | Expiration Date | Contracts | Aggregate Face Value ($) | Value ($) | Unrealized Appreciation (Depreciation) ($) |
Hang Seng Index | 7/28/2005 | 3 | 276,779 | 274,250 | (2,529) |
Nikkei 225 Index | 9/8/2005 | 3 | 173,943 | 172,875 | (1,068) |
DJ Euro Stoxx 50 Index | 9/16/2005 | 138 | 5,264,841 | 5,340,682 | 75,841 |
SPI 200 Index | 9/15/2005 | 9 | 721,745 | 731,837 | 10,092 |
FTSE 100 Index | 9/16/2005 | 34 | 3,078,849 | 3,119,906 | 41,057 |
TOPIX Index | 9/8/2005 | 23 | 2,366,043 | 2,435,623 | 69,580 |
Total unrealized appreciation | 192,973 |
REIT: Real Estate Investment Trust
ADR: American Depositary Receipt
The accompanying notes are an integral part of the financial statements.
Statement of Assets and Liabilities as of June 30, 2005 (Unaudited) |
Assets |
Investments: Investments in securities, at value (cost $217,230,126) | $ 276,276,094 |
Investment in Scudder Cash Management QP Trust (cost $3,339,967) | 3,339,967 |
Total investments in securities, at value (cost $220,570,093) | 279,616,061 |
Foreign currency, at value, (cost $6,377,935)* | 6,352,125 |
Receivable for investments sold | 14,075 |
Unrealized appreciation on forward foreign currency exchange contracts | 32,869 |
Dividends receivable | 608,053 |
Interest receivable | 12,740 |
Receivable for variation margin on open futures contracts | 574,033 |
Foreign taxes recoverable | 238,265 |
Other assets | 3,456 |
Total assets | 287,451,677 |
Liabilities |
Payable for investments purchased | 63,942 |
Accrued management fee | 54,125 |
Unrealized depreciation on forward foreign currency exchange contracts | 98,693 |
Other accrued expense and payables | 57,871 |
Total liabilities | 274,631 |
Net assets, at value | $ 287,177,046 |
* Includes foreign currency of $4,201,047 to cover margin requirements on foreign futures contracts.
The accompanying notes are an integral part of the financial statements.
Statement of Operations for the six months ended June 30, 2005 (Unaudited) |
Investment Income |
Dividends (net of foreign taxes withheld of $696,297) | $ 5,237,363 |
Interest — Scudder Cash Management QP Trust | 82,760 |
Interest — Cash Management Fund Institutional | 65,139 |
Interest | 16,749 |
Total income | 5,402,011 |
Expenses: Management fee | 363,981 |
Administrative fee | 147,416 |
Auditing | 27,376 |
Legal | 19,318 |
Trustees' fees and expenses | 6,697 |
Other | 5,817 |
Total expenses, before expense reductions | 570,605 |
Expense reductions | (56,932) |
Total expenses, after expense reductions | 513,673 |
Net investment income (loss) | 4,888,338 |
Realized and Unrealized Gain (Loss) on Investment Transactions |
Net realized gain (loss) from: Investments | (2,527,920) |
Futures | 732,649 |
Foreign currency related transactions | (261,506) |
| (2,056,777) |
Net unrealized appreciation (depreciation) during the period on: Investments | (6,648,592) |
Futures | (393,482) |
Foreign currency related transactions | (646,939) |
| (7,689,013) |
Net gain (loss) on investment transactions | (9,745,790) |
Net increase (decrease) in net assets resulting from operations | $ (4,857,452) |
The accompanying notes are an integral part of the financial statements.
Statement of Changes in Net Assets |
Increase (Decrease) in Net Assets | Six Months Ended June 30, 2005 (Unaudited) | Year Ended December 31, 2004 |
Operations: Net investment income | $ 4,888,338 | $ 4,901,513 |
Net realized gain (loss) on investment transactions | (2,056,777) | 3,574,237 |
Net unrealized appreciation (depreciation) during the period on investment transactions | (7,689,013) | 38,124,603 |
Net increase (decrease) in net assets resulting from operations | (4,857,452) | 46,600,353 |
Capital transactions in shares of beneficial interest: Proceeds from capital invested | 23,594,688 | 69,541,220 |
Value of capital withdrawn | (16,529,002) | (61,957,229) |
Redemption fees | 158 | — |
Net increase (decrease) in net assets from capital transactions in shares of beneficial interest | 7,065,844 | 7,583,991 |
Increase (decrease) in net assets | 2,208,392 | 54,184,344 |
Net assets at beginning of period | 284,968,654 | 230,784,310 |
Net assets at end of period | $ 287,177,046 | $ 284,968,654 |
The accompanying notes are an integral part of the financial statements.
Years Ended December 31, | 2005a | 2004 | 2003 | 2002 | 2001 | 2000 |
Ratios to Average Net Assets and Supplemental Data |
Net assets, end of period ($ millions) | 287 | 285 | 231 | 137 | 141 | 172 |
Ratio of expenses before expense reductions (%) | .39* | .39 | .40 | .44 | .42 | .46 |
Ratio of expenses after expense reductions (%) | .35* | .35 | .35 | .35 | .35 | .35 |
Ratio of net investment income (loss) (%) | 3.32* | 2.03 | 2.04 | 1.88 | 1.73 | 1.64 |
Portfolio turnover rate (%) | 15* | 12 | 6 | 10 | 26 | 52 |
Total Investment Return (%)b,c | (1.74)** | 19.47 | 36.50 | (16.58) | — | — |
a For the six months ended June 30, 2005 (Unaudited). b Total return would have been lower had certain expenses not been reduced. c Total investment return for the Portfolio is derived from the performance of the Institutional Class of the Scudder EAFE® Equity Index Fund. * Annualized ** Not annualized |
Notes to Financial Statements (Unaudited) |
|
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.
Contingencies. In the normal course of business, the Portfolio may enter into contracts with service providers that contain general indemnification clauses. The Portfolio's maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Portfolio that have not yet been made. However, based on experience, the Portfolio expects the risk of loss to be remote.
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 six months ended June 30, 2005, purchases and sales of investment securities (excluding short-term investments) aggregated $34,678,567 and $20,678,588, 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 annualized rate of 0.25% of the Portfolio's average daily net 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 six months ended June 30, 2005, the Advisor and Administrator maintained the annualized expenses of the Portfolio at not more than 0.35% of the Portfolio's average daily net assets. The amount of the waiver and whether the Advisor and Administrator waive their fees may vary at anytime without notice to the shareholders.
Accordingly, for the six months ended June 30, 2005, the Advisor waived a portion of its advisory fee aggregating $54,637 and the amount charged aggregated $309,344, which was equivalent to an annualized effective rate of 0.21% of the Portfolio's average daily net assets.
Administrator Service Fee. For its services as Administrator, ICCC receives a fee (the "Administrator Service Fee") of 0.10% of the Portfolio's average daily net assets, computed and accrued daily and payable monthly. For six months ended June 30, 2005, the Administrator Service Fee was $147,352, of which $22,912 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.
Scudder Cash Management QP Trust. Pursuant to an Exemptive Order issued by the SEC, the Fund may invest in the Scudder Cash Management QP Trust (the "QP Trust") and other affiliated funds managed by the Advisor. The QP Trust seeks to provide as high a level of income as is consistent with the preservation of capital and the maintenance of liquidity. The QP Trust does not pay the Advisor a management fee for the affiliated funds' investments in the QP Trust.
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 six months ended June 30, 2005, the Advisor agreed to reimburse the Portfolio $2,231, 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 Portfolio 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 Portfolio's custodian expenses. During the six months ended June 30, 2005, the Administrator Service Fee was reduced by $64 for custodian credits earned.
E. Forward Foreign Currency Exchange Contracts
As of June 30, 2005, the Fund had the following open forward foreign currency exchange contracts:
Contracts to Deliver | | In Exchange For | | Settlement Date | | Unrealized Appreciation (US$) |
AUD | 569,373 | | USD | 440,000 | | 7/20/05 | | 6,593 |
GBP | 451,582 | | USD | 820,000 | | 7/20/05 | | 10,901 |
JPY | 75,931,800 | | USD | 700,000 | | 7/20/05 | | 15,375 |
Total unrealized appreciation | | | | | $ 32,869 |
Contracts to Deliver | | In Exchange For | | Settlement Date | | Unrealized Depreciation (US$) |
USD | 2,240,000 | | JPY | 244,056,960 | | 7/20/05 | | (39,504) |
USD | 400,000 | | AUD | 520,569 | | 7/20/05 | | (3,743) |
USD | 4,100,000 | | EUR | 3,379,632 | | 7/20/05 | | (10,140) |
USD | 2,500,000 | | GBP | 1,373,023 | | 7/20/05 | | (39,954) |
EUR | 1,103,460 | | USD | 1,330,000 | | 7/20/05 | | (5,352) |
Total unrealized depreciation | | | | | $ (98,693) |
Currency Abbreviations:
AUD | Australian Dollar |
EUR | Euro |
GBP | British Pound |
JPY | Japanese Yen |
USD | United States Dollar |
F. Line of Credit
The Portfolio and several other affiliated funds (the "Participants") share in a $1.1 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 industrywide 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.
Account Management Resources |
|
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
Kansas City, MO 64121-9356 |
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
Chicago, IL 60606-5808 (800) 621-1148 |
| Institutional Class |
Nasdaq Symbol | BTAEX |
CUSIP Number | 81111W 105 |
Fund Number | 558 |
This privacy statement is issued by Deutsche Investment Management Americas Inc., Deutsche Asset Management, Inc., Scudder Distributors, Inc., Scudder Investor Services, Inc., Scudder Trust Company and the Scudder Funds.
We never sell customer lists or individual client information. We consider privacy fundamental to our client relationships and adhere to the policies and practices described below to protect current and former clients' information. Internal policies are in place to protect confidentiality, while allowing client needs to be served. Only individuals who need to do so in carrying out their job responsibilities may access client information. We maintain physical, electronic and procedural safeguards that comply with federal and state standards to protect confidentiality. These safeguards extend to all forms of interaction with us, including the Internet.
In the normal course of business, clients give us nonpublic personal information on applications and other forms, on our websites, and through transactions with us or our affiliates. Examples of the nonpublic personal information collected are name, address, Social Security number and transaction and balance information. To be able to serve our clients, certain of this client information is shared with affiliated and nonaffiliated third party service providers such as transfer agents, custodians, and broker-dealers to assist us in processing transactions and servicing your account with us. In addition, we may disclose all of the information we collect to companies that perform marketing services on our behalf or to other financial institutions with which we have joint marketing agreements. The organizations described above that receive client information may only use it for the purpose designated by the Scudder Companies listed above.
We may also disclose nonpublic personal information about you to other parties as required or permitted by law. For example, we are required or we may provide information to government entities or regulatory bodies in response to requests for information or subpoenas, to private litigants in certain circumstances, to law enforcement authorities, or any time we believe it necessary to protect the firm.
Questions on this policy may be sent to:
Scudder Investments
Attention: Correspondence — Chicago
P.O. Box 219415
Kansas City, MO 64121-9415
September 2004
ITEM 2. CODE OF ETHICS.
Not applicable.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
Not applicable.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Not applicable.
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. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT
INVESTMENT COMPANY AND AFFILIATED PURCHASERS
Not Applicable.
ITEM 10. 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 11. 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 12. EXHIBITS.
(a)(1) 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: EAFE Equity Index Fund, a series of Scudder
Advisor Funds II
By: /s/Julian Sluyters
----------------------------
Julian Sluyters
Chief Executive Officer
Date: August 26, 2005
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: EAFE Equity Index Fund, a series of Scudder
Advisor Funds II
By: /s/Julian Sluyters
----------------------------
Julian Sluyters
Chief Executive Officer
Date: August 26, 2005
By: /s/ Paul Schubert
---------------------------
Paul Schubert
Chief Financial Officer
Date: August 26, 2005
