UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D. C. 20549
FORM N-CSRS
Investment Company Act file number 811-07347
DWS Advisor Funds II
(Exact Name of Registrant as Specified in Charter)
One South Street
Baltimore, MD 21202
(Address of principal executive offices) (Zip code)
Registrant’s Telephone Number, including Area Code: (212) 454-7190
Paul Schubert
345 Park Avenue
New York, NY 10154
(Name and Address of Agent for Service)
Date of fiscal year end: | 12/31 |
Date of reporting period: | 06/30/06 |
ITEM 1. REPORT TO STOCKHOLDERS
JUNE 30, 2006
Semiannual Report
to Shareholders
DWS EAFE® Equity Index Fund
 |
Contents
Click Here Performance Summary
Click Here Information About Your Fund's Expenses
Click Here Portfolio Management Review
Click Here Portfolio Summary
Click Here Investment Portfolio
Click Here Financial Statements
Click Here Financial Highlights
Click Here Notes to Financial Statements
Click Here Other Information
Click Here Shareholder Meeting Results
Click Here Account Management Resources
Click Here Privacy Statement
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 replicate 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.
DWS Scudder is part of Deutsche Asset Management, which is the marketing name in the US for the asset management activities of Deutsche Bank AG, Deutsche Bank Trust Company Americas, Deutsche Asset Management, Inc., Deutsche Investment Management Americas Inc. and DWS Trust Company.
NOT FDIC/NCUA INSURED NO BANK GUARANTEE MAY LOSE VALUE NOT A DEPOSIT NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY
Performance Summary June 30, 2006
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 www.dws-scudder.com for the Fund's most recent month-end performance.
To discourage short-term trading, the Fund imposes a 2% redemption fee on shareholders redeeming shares held less than 30 days, which has the effect of lowering total return.
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 6/30/06 | |||||
DWS EAFE® Equity Index Fund | 6-Month* | 1-Year | 3-Year | 5-Year | 10-Year |
Institutional Class | 9.89% | 27.04% | 23.12% | 9.23% | 5.97% |
MSCI EAFE® Index+ | 10.16% | 26.56% | 23.94% | 10.02% | 6.39% |
Sources: Lipper Inc. and Deutsche Asset Management, Inc.
* Total returns shown for periods less than one year are not annualized.
Net Asset Value and Distribution Information | |
| Institutional Class |
Net Asset Value: 6/30/06 | $ 14.45 |
12/31/05 | $ 13.15 |
Institutional Class Lipper Rankings — International Multi-Cap Core Funds Category as of 6/30/06 | ||||
Period | Rank |
| Number of Funds Tracked | Percentile Ranking (%) |
1-Year | 117 | of | 307 | 38 |
3-Year | 104 | of | 231 | 45 |
5-Year | 93 | of | 192 | 48 |
10-Year | 48 | of | 67 | 71 |
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 |
[] DWS EAFE® Equity Index Fund — Institutional Class [] MSCI EAFE® Index+ |
 |
Yearly periods ended June 30 |
Comparative Results as of 6/30/06 | |||||
DWS EAFE® Equity Index Fund | 1-Year | 3-Year | 5-Year | 10-Year | |
Institutional Class | Growth of $1,000,000 | $1,270,400 | $1,866,200 | $1,554,800 | $1,786,000 |
Average annual total return | 27.04% | 23.12% | 9.23% | 5.97% | |
MSCI EAFE® Index+ | Growth of $1,000,000 | $1,265,600 | $1,903,900 | $1,611,800 | $1,858,600 |
Average annual total return | 26.56% | 23.94% | 10.02% | 6.39% | |
The growth of $1,000,000 is cumulative.
The minimum initial investment for Institutional Class shares is $1,000,000.
+ 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 translates into 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
As an investor of the Fund, you incur two types of costs: ongoing expenses and transaction costs. Ongoing expenses include management fees and other Fund expenses. Examples of transaction costs include 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 example in the table is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (January 1, 2006 to June 30, 2006).
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, 2006 | |
Actual Fund Return | Institutional Class |
Beginning Account Value 1/1/06 | $ 1,000.00 |
Ending Account Value 6/30/06 | $ 1,098.90 |
Expenses Paid per $1,000* | $ 2.08 |
Hypothetical 5% Fund Return | Institutional Class |
Beginning Account Value 1/1/06 | $ 1,000.00 |
Ending Account Value 6/30/06 | $ 1,022.81 |
Expenses Paid per $1,000* | $ 2.01 |
* Expenses are equal to the Fund's annualized expense ratio 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 Ratios | Institutional Class |
DWS EAFE® Equity Index Fund | .40% |
For more information, please refer to the Fund's prospectus.
In the following interview, the portfolio management team discusses the recent market environment and DWS EAFE® Equity Index Fund's performance during the semiannual period ended June 30, 2006.
Q: How did DWS EAFE® Equity Index Fund perform during the first half of 2006?
A: DWS EAFE® Equity Index Fund's Institutional Class shares produced a total return of 9.89% for the six months ended June 30, 2006, as compared with a return of 10.16% for its benchmark, the Morgan Stanley Capital International (MSCI) Europe, Australasia and Far East (EAFE®) Index.1 The net impact of transaction costs and fund expenses accounted for the difference in returns between the fund and the index. (Past performance is no guarantee of future results. Please see pages 4 through 5 for more complete performance information.)
Q: What were the primary factors affecting the international equity markets during the past six months?
A: International equities produced a modestly positive return in local currency terms in the first half of the year. However, US dollar investors — who gained an additional benefit from the rising value of foreign currencies vs. the dollar — enjoyed a double-digit return.2 International equities as an asset class comfortably outperformed the 2.71% return of US stocks, as measured by the Standard & Poor's 500 (S&P 500) Index.3
1 The Morgan Stanley Capital International (MSCI) Europe, Australasia and Far East (EAFE) Index is an unmanaged capitalization-weighted index that tracks international stock performance in the 21 developed markets of Europe , Australasia and the Far East. The index is calculated using closing local market prices and translates into 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
2 Since mutual funds generally purchase stock in local currencies, the appreciation of those currencies vs. the dollar raises the value of the equity investment.
3 The Standard & Poor's 500 (S&P 500) Index is an unmanaged capitalization-weighted index of 500 stocks. The index is designed to measure performance of the broad domestic economy through changes in the aggregate market value of 500 stocks representing all major industries. 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.
The positive returns of the global markets obscure the high level of uncertainty that developed as the period progressed. The bulk of the markets' return came in the first four-plus months of the year, when the same factors that supported stock prices in 2005 — namely, steady global growth and strong corporate earnings — continued to fuel positive investor sentiment. In mid-May, however, the backdrop became more challenging. The combination of rising inflation pressures, the possibility of slower global growth and the apparent likelihood that the US Federal Reserve Board (the Fed)would need to raise rates more than previously thought led to a rapid increase in investors' aversion to risk. The result was a rapid sell-off in the global markets that — in a little more than a month — eliminated virtually all of the gains achieved in the January-April period. During the latter half of June, however, the markets regained significant ground in a powerful rally that began with modest bargain hunting, but ended with a substantial upturn in the final days of the month after the Fed, in the statement that accompanied its June 29 interest-rate decision, hinted that it may be nearing the end of its long series of interest-rate increases. The end result was a positive return for the MSCI EAFE® Index in the first half of the period, but with a greater level of volatility than the markets had experienced in quite some time.
Q: Which sectors within the MSCI EAFE® Index were the best and worst performers?
A: For the semiannual period, energy and materials stocks continued to deliver outperformance, while the technology, health care and consumer sectors lagged. In energy, companies' share prices continued to gain ground as crude oil, which began the year at about $60 a barrel, rose to nearly $75 at midyear due to the ongoing fears that geopolitical tensions would lead to supply disruptions. The result was a sharp increase in energy companies' profits. This was a positive for the index, in which the oil stocks BP PLC, Royal Dutch Shell PLC and Total SA are the first-, second- and sixth-largest holdings, respectively. Materials stocks, despite underperforming in the May-June correction, also delivered a solid return on the continued strength in global demand.
On the other side of the ledger, sectors sensitive to spending by both corporations and consumers exhibited weakness. Technology, which was hurt by the fact that the anticipated surge in corporate demand failed to materialize, had a difficult first half. Semiconductor stocks, in particular, were a drag on the performance of the broader sector. The consumer sector, meanwhile, was weighed down by continued sluggishness in personal spending habits. Health care, despite underperforming for the full period, provided support to index returns in the second quarter, when the increasingly challenging environment led market participants to seek more defensive investments.
Q: Which countries and regions outperformed and underperformed during the period?
A: The European markets delivered the best returns for US dollar investors. Not only did the region outperform relative to the global markets as a whole, but also the euro was one of the strongest-performing currencies vs. the US dollar. Norway, which has the added benefit of being an oil exporter, was the top performer within Europe. Strong returns also were generated by the French and German stock markets, both of which were helped by the improving outlook for the Continental economy. UK equities, which had lagged in 2005, also outperformed the global markets on the hopes that interest rates will soon begin to fall.
Asian stocks generally trailed their global counterparts. New Zealand, despite its role as a commodities exporter, was the worst performer among the 22 countries in the MSCI EAFE® Index. The only country to post a loss in US dollar terms, New Zealand underperformed due to the apparent likelihood that its central bank will have to sharply increase interest rates. Additionally, the New Zealand dollar lost value in relation to the US dollar, further weakening performance for US-based investors. Japan, where a small gain in the currency failed to make up for weak equity market performance, also was a notable laggard. Coming on the heels of a strong 2005, Japanese stocks paused as investors grew more cautious amid the growing likelihood that the Bank of Japan — which has long kept interest rates near zero to spur the domestic economy — would soon begin to enact rate increases.
Q: Have you made any changes to your investment approach?
A: We have made no changes in our strategy. Our goal for the fundis to maintain a fully invested posture, replicating the return and risk characteristics of the MSCI EAFE Index®. To this end, all changes made to the index were incorporated in the fund in order to maintain proper tracking. The index itself provides broad-based exposure to 22 of the largest developed markets outside the United States, across all sectors of the economy. We will continue to follow a passive strategy designed to provide returns that replicate those of the benchmark index.
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. Past performance is no guarantee of future results.
Geographic Diversification (Excludes Cash Equivalents) | 6/30/06 | 12/31/05 |
|
|
|
Japan | 24% | 26% |
United Kingdom | 22% | 22% |
France | 9% | 9% |
Switzerland | 7% | 7% |
Germany | 7% | 7% |
Netherlands | 6% | 6% |
Australia | 5% | 5% |
Spain | 4% | 4% |
Italy | 4% | 4% |
Other | 12% | 10% |
| 100% | 100% |
Sector Diversification (Excludes Cash Equivalents) | 6/30/06 | 12/31/05 |
|
|
|
Financials | 29% | 29% |
Consumer Discretionary | 12% | 12% |
Industrials | 11% | 11% |
Materials | 8% | 8% |
Energy | 8% | 8% |
Health Care | 8% | 8% |
Consumer Staples | 8% | 7% |
Information Technology | 6% | 6% |
Telecommunication Services | 5% | 6% |
Utilities | 5% | 5% |
| 100% | 100% |
Geographic diversification and sector diversification are subject to change.
Ten Largest Equity Holdings at June 30, 2006 (14.3% of Net Assets) | Country | Percent |
1. BP PLC Exporter and producer of oil and natural gas | United Kingdom | 2.1% |
2. Royal Dutch Shell PLC Explores, produces and refines petroleum | Netherlands | 2.0% |
3. HSBC Holdings PLC Provider of international banking and financial services | United Kingdom | 1.8% |
4. GlaxoSmithKline PLC Develops, manufactures and markets vaccines and medicines | United Kingdom | 1.4% |
5. Toyota Motor Corp. Manufacturer of diversified automotive products | Japan | 1.3% |
6. Total SA Producer of oil and natural gas | France | 1.3% |
7. Vodafone Group PLC Provider of mobile telecommunication services | United Kingdom | 1.1% |
8. Nestle SA Producer and seller of food products | Switzerland | 1.1% |
9. Novartis AG Manufacturer of pharmaceutical and nutrition products | Switzerland | 1.1% |
10. Mitsubishi UFJ Financial Group, Inc. Owns, operates & develops electricity and gas networks | Japan | 1.1% |
Portfolio holdings are subject to change.
For more complete details about the Fund's investment portfolio, see page 14. A quarterly Fact Sheet is available upon request. Information concerning portfolio holdings of the Fund as of month end will be posted to www.dws-scudder.com on or after the last day 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.
Investment Portfolio as of June 30, 2006 (Unaudited)
| Shares | Value ($) |
|
| |
Common Stocks 98.0% | ||
Australia 5.2% | ||
Alinta Ltd. | 5,376 | 41,667 |
Alumina Ltd. | 39,127 | 196,258 |
Amcor Ltd. | 28,386 | 140,905 |
AMP Ltd. | 57,096 | 387,368 |
Ansell Ltd. | 2,546 | 18,295 |
APN News & Media Ltd. | 3,685 | 13,911 |
Aristocrat Leisure Ltd. | 11,798 | 112,920 |
Australia & New Zealand Banking Group Ltd. | 54,178 | 1,070,505 |
Australian Gas & Light Co., Ltd. | 13,159 | 171,221 |
Australian Stock Exchange Ltd. | 3,732 | 90,352 |
AXA Asia Pacific Holdings Ltd. | 21,871 | 101,902 |
Babcock & Brown Ltd. | 3,185 | 51,335 |
BHP Billiton Ltd. | 102,747 | 2,214,187 |
Billabong International Ltd. | 2,438 | 27,809 |
BlueScope Steel Ltd. | 24,736 | 146,132 |
Boral Ltd. | 16,908 | 102,274 |
Brambles Industries Ltd. | 30,619 | 250,283 |
Caltex Australia Ltd. | 2,739 | 48,034 |
Centro Properties Group | 27,686 | 137,636 |
CFS Gandel Retail Trust | 46,953 | 64,897 |
CFS Retail Trust (Units)* | 1,329 | 1,837 |
Coca-Cola Amatil Ltd. | 19,460 | 102,527 |
Cochlear Ltd. | 1,549 | 62,883 |
Coles Myer Ltd. | 35,152 | 296,740 |
Commonwealth Bank of Australia | 37,116 | 1,224,868 |
Commonwealth Property Office Fund | 53,396 | 55,153 |
Computershare Ltd. | 14,173 | 82,676 |
CSL Ltd. | 5,494 | 219,439 |
CSR Ltd. | 31,897 | 79,404 |
DB RREEF Trust | 53,353 | 58,082 |
Downer EDI Ltd. | 5,815 | 32,149 |
Foster's Group Ltd. | 60,727 | 246,840 |
Futuris Corp., Ltd. | 19,011 | 29,667 |
General Property Trust | 51,669 | 166,635 |
Harvey Norman Holdings Ltd. | 13,166 | 38,548 |
Iluka Resources Ltd. | 2,479 | 12,066 |
ING Industrial Fund | 10,910 | 18,079 |
Insurance Australia Group Ltd. | 49,962 | 198,628 |
Investa Property Group | 30,734 | 50,016 |
John Fairfax Holdings Ltd. | 35,401 | 98,649 |
Leighton Holdings | 4,873 | 62,827 |
Lend Lease Corp., Ltd. | 12,613 | 131,124 |
Lion Nathan Ltd. | 8,315 | 48,195 |
Macquarie Airports | 23,000 | 52,470 |
Macquarie Bank Ltd. | 7,136 | 365,891 |
Macquarie Communications Infrastructure Group | 8,274 | 36,337 |
Macquarie Goodman Group | 41,218 | 183,775 |
Macquarie Infrastructure Group | 73,485 | 183,479 |
Macquarie Office Trust | 38,339 | 39,316 |
Mayne Pharma Ltd.* | 22,896 | 44,236 |
Mirvac Group | 30,859 | 99,751 |
Multiplex Group | 8,300 | 20,168 |
National Australia Bank Ltd. | 46,634 | 1,218,425 |
Newcrest Mining Ltd. | 10,678 | 167,266 |
Onesteel Ltd. | 8,598 | 26,004 |
Orica Ltd. | 8,679 | 154,075 |
Origin Energy Ltd. | 26,752 | 146,312 |
Pacific Brands Ltd. | 8,016 | 12,807 |
Paperlinx Ltd. | 8,341 | 19,338 |
Perpetual Trustees Australia Ltd. | 1,300 | 70,665 |
Publishing & Broadcasting Ltd. | 2,483 | 33,600 |
Qantas Airways Ltd. | 19,357 | 42,577 |
QBE Insurance Group Ltd. | 23,281 | 354,652 |
Rinker Group Ltd. | 27,945 | 340,354 |
Rio Tinto Ltd. | 8,629 | 498,870 |
Santos Ltd. | 20,039 | 180,181 |
SFE Corp., LTD | 3,949 | 48,419 |
Sonic Healthcare Ltd. | 9,366 | 98,830 |
Stockland (a) | 36,487 | 190,337 |
Stockland (a) | 1,230 | 6,416 |
Suncorp Metway Ltd. | 16,609 | 238,821 |
Symbion Health Ltd. | 22,896 | 52,063 |
TABCORP Holding Ltd. | 16,774 | 189,464 |
Telstra Corp., Ltd. | 67,988 | 185,921 |
Toll Holdings Ltd. | 15,427 | 161,069 |
Transurban Group | 26,626 | 137,511 |
UNiTAB Ltd. | 2,899 | 31,797 |
Wesfarmers Ltd. | 10,714 | 281,282 |
Westfield Group | 43,419 | 559,147 |
Westpac Banking Corp., Ltd. | 54,381 | 940,757 |
Woodside Petroleum Ltd. | 14,131 | 462,033 |
Woolworths Ltd. | 34,881 | 522,289 |
WorleyParsons Ltd. | 3,068 | 45,825 |
Zinifex Ltd. | 12,118 | 90,229 |
(Cost $9,036,213) | 17,237,682 | |
Austria 0.5% | ||
Andritz AG | 230 | 38,020 |
BETandWIN.com Interactive Entertainment AG | 560 | 44,409 |
Boehler-Uddeholm AG | 1,040 | 56,866 |
Erste Bank der Oesterreichischen Sparkassen AG | 5,604 | 315,383 |
Flughafen Wien AG | 250 | 19,096 |
IMMOEAST Immobilien Anlagen AG* | 6,200 | 66,534 |
Immofinanz Immobilien Anlagen AG* | 14,825 | 164,589 |
Mayr Melnhof Karton AG | 150 | 24,157 |
Meinl European Land Ltd.* | 4,623 | 94,195 |
Oesterreichische Elektrizititaetswirtschafts AG "A" | 2,500 | 120,231 |
OMV AG | 4,980 | 296,508 |
Raiffeisen International Bank-Holding AG | 940 | 81,637 |
RHI AG* | 250 | 8,090 |
Telekom Austria AG | 10,697 | 238,204 |
Voestalpine AG | 670 | 101,807 |
Wiener Staedtische Allgemeine Versicherung AG | 660 | 38,832 |
Wienerberger AG | 2,310 | 109,764 |
(Cost $1,082,311) | 1,818,322 | |
Belgium 1.1% | ||
Agfa Gevaert NV | 2,975 | 72,070 |
Barco NV | 214 | 19,776 |
Bekaert NV | 369 | 35,445 |
Belgacom SA | 4,634 | 153,690 |
Cofinimmo | 119 | 20,578 |
Colruyt NV | 515 | 80,429 |
Compagnie Maritime Belge SA | 830 | 24,109 |
Delhaize Group | 2,288 | 158,615 |
Dexia | 16,226 | 390,173 |
Euronav SA | 830 | 25,542 |
Fortis | 34,091 | 1,160,741 |
Groupe Bruxelles Lambert SA | 2,328 | 243,868 |
InBev NV | 5,787 | 283,861 |
KBC Bankverzekeringsholding | 5,422 | 581,847 |
Mobistar SA | 744 | 59,048 |
Omega Pharma SA | 424 | 29,611 |
SA D'Ieteren NV | 90 | 29,066 |
Solvay SA | 1,774 | 204,100 |
UCB SA | 2,466 | 133,420 |
Umicore | 632 | 84,393 |
(Cost $2,258,082) | 3,790,382 | |
Bermuda 0.0% | ||
Frontline Ltd. | 1,700 | 63,495 |
SeaDrill Ltd.* | 6,500 | 85,624 |
Ship Finance International Ltd. | 85 | 1,471 |
(Cost $126,380) | 150,590 | |
Denmark 0.7% | ||
A P Moller-Maersk AS | 33 | 256,900 |
Bang & Olufsen AS "B" | 261 | 28,866 |
Carlsberg AS "B" | 850 | 62,163 |
Codan AS | 220 | 15,901 |
Coloplast AS "B" | 812 | 60,289 |
Dampskibsselskabet Torm AS | 435 | 20,736 |
Danisco AS | 1,589 | 115,799 |
Danske Bank AS | 12,510 | 476,216 |
DSV AS | 648 | 108,336 |
FLSmidth & Co. AS "B" | 1,144 | 43,156 |
GN Store Nord AS | 6,554 | 75,297 |
H. Lundbeck AS | 1,617 | 36,877 |
Jyske Bank AS (Registered)* | 1,569 | 90,935 |
NKT Holding AS | 557 | 34,813 |
Novo Nordisk AS "B" | 7,378 | 469,993 |
Novozymes AS "B" | 1,551 | 104,786 |
Ostasiatiske Kompagni | 461 | 17,410 |
Sydbank AS | 1,508 | 50,035 |
Topdanmark AS* | 546 | 76,116 |
Trygvesta AS | 753 | 46,999 |
Vestas Wind Systems AS* | 5,330 | 145,775 |
William Demant Holding AS* | 765 | 57,193 |
(Cost $1,086,924) | 2,394,591 | |
Finland 1.5% | ||
Amer Group Ltd. | 2,100 | 43,863 |
Cargotec Corp. "B" | 1,200 | 52,569 |
Elisa Oyj "A" | 4,300 | 81,894 |
Fortum Oyj | 13,700 | 350,460 |
Kesko Oyj "B" | 1,900 | 72,857 |
Kone Oyj "B" | 2,100 | 87,295 |
Metso Oyj | 3,900 | 141,518 |
Neste Oil Oyj | 3,475 | 122,407 |
Nokia Oyj | 122,400 | 2,498,630 |
Nokian Renkaat Oyj | 3,100 | 40,761 |
Oko Bank "A" | 2,300 | 33,831 |
Orion Oyj "B" | 2,200 | 43,700 |
Outokumpu Oyj | 3,200 | 74,901 |
Rautaruukki Oyj | 2,400 | 72,507 |
Sampo Oyj "A" | 12,700 | 242,360 |
SanomaWSOY Oyj | 800 | 19,257 |
Stora Enso Oyj "R" | 16,400 | 229,063 |
TietoEnator Oyj | 2,240 | 64,693 |
UPM-Kymmene Oyj | 16,200 | 349,142 |
Uponor Oyj | 1,800 | 48,693 |
Wartsila Oyj "B" | 1,800 | 75,976 |
YIT Oyj | 3,400 | 83,366 |
(Cost $2,991,296) | 4,829,743 | |
France 9.1% | ||
Accor SA | 5,829 | 354,811 |
Air France | 3,869 | 90,956 |
Alcatel SA* | 38,263 | 485,488 |
Alstom* | 2,982 | 272,519 |
Atos Origin SA* | 1,845 | 120,706 |
Axa | 47,727 | 1,566,421 |
BNP Paribas SA | 23,964 | 2,294,240 |
Bouygues SA | 5,808 | 298,635 |
Business Objects SA* | 2,194 | 59,857 |
Cap Gemini SA | 3,386 | 193,286 |
Carrefour SA | 17,460 | 1,023,709 |
Casino Guichard-Perrachon SA | 945 | 71,857 |
CNP Assurances | 1,218 | 115,829 |
Compagnie de Saint-Gobain | 9,044 | 646,636 |
Compagnie Generale des Etablissements Michelin "B" | 4,281 | 257,354 |
Credit Agricole SA | 16,627 | 632,686 |
Dassault Systemes SA | 1,772 | 94,965 |
Essilor International SA | 2,932 | 295,139 |
France Telecom SA | 47,753 | 1,026,730 |
Gaz De France | 4,892 | 164,249 |
Gecina SA | 171 | 22,397 |
Groupe Danone | 6,620 | 841,228 |
Hermes International | 1,650 | 145,936 |
Imerys SA | 1,022 | 81,699 |
Klepierre | 490 | 56,751 |
L' Air Liquide SA | 3,487 | 679,265 |
L'Oreal SA | 8,591 | 811,488 |
Lafarge SA | 4,420 | 554,882 |
Lagardere S.C.A. | 3,665 | 270,481 |
LVMH Moet- Hennessy Louis Vuitton SA | 7,110 | 705,698 |
Neopost SA | 859 | 97,895 |
PagesJaunes SA | 3,445 | 108,175 |
Pernod Ricard SA | 2,127 | 421,684 |
Pinault-Printemps-Redoute SA | 2,002 | 255,298 |
PSA Peugeot Citroen | 4,287 | 266,762 |
Publicis Groupe | 4,274 | 165,093 |
Renault SA | 5,387 | 578,781 |
Safran SA | 5,325 | 115,922 |
Sanofi-Aventis | 29,298 | 2,859,237 |
Schneider Electric SA | 6,565 | 684,353 |
SCOR | 15,577 | 34,070 |
Societe BIC SA | 1,073 | 69,445 |
Societe des Autoroutes Paris-Rhin-Rhone | 559 | 38,323 |
Societe Generale | 10,110 | 1,487,088 |
Societe Television Francaise 1 | 3,454 | 112,655 |
Sodexho Alliance SA | 2,348 | 112,831 |
Suez SA | 29,574 | 1,229,366 |
Suez SA VVPR Strip* | 3,124 | 40 |
Technip SA | 2,450 | 135,688 |
Thales SA | 2,114 | 82,577 |
Thomson* | 7,043 | 116,478 |
Total SA | 63,629 | 4,187,243 |
Total SA VVPR Strip* | 3,888 | 0 |
Unibail | 1,386 | 241,628 |
Valeo SA | 2,050 | 72,998 |
Vallourec SA | 198 | 238,057 |
Veolia Environnement | 8,460 | 437,267 |
Vinci SA | 5,898 | 607,656 |
Vivendi Universal SA | 33,523 | 1,174,846 |
Zodiac SA | 882 | 49,604 |
(Cost $18,122,768) | 30,216,958 | |
Germany 6.5% | ||
Adidas-Salomon AG | 5,920 | 283,041 |
Allianz AG (Registered) | 11,771 | 1,859,680 |
Altana AG | 2,010 | 111,988 |
BASF AG | 14,931 | 1,198,941 |
Bayer AG | 20,249 | 930,828 |
Beiersdorf AG | 553 | 83,329 |
Bilfinger Berger AG | 854 | 46,434 |
Celesio AG | 1,138 | 103,447 |
Commerzbank AG | 18,287 | 665,211 |
Continental AG | 3,828 | 391,305 |
DaimlerChrysler AG (Registered) | 26,479 | 1,308,320 |
Deutsche Bank AG (Registered) (b) | 14,923 | 1,679,680 |
Deutsche Boerse AG | 3,140 | 427,727 |
Deutsche Lufthansa AG (Registered) | 6,416 | 118,172 |
Deutsche Post AG (Registered) | 20,692 | 554,730 |
Deutsche Postbank AG | 1,395 | 100,383 |
Deutsche Telekom AG (Registered) | 79,324 | 1,276,359 |
Douglas Holdings AG | 650 | 30,030 |
E.ON AG | 17,999 | 2,072,407 |
Fresenius Medical Care AG & Co. | 1,857 | 213,483 |
Heidelberger Druckmaschinen AG | 1,322 | 60,112 |
Hochtief AG | 1,416 | 78,766 |
Hypo Real Estate Holding AG | 3,828 | 232,521 |
Infineon Technologies AG* | 21,395 | 238,352 |
IVG Immobilien AG | 2,110 | 63,746 |
KarstadtQuelle AG* | 2,059 | 54,646 |
Linde AG | 2,269 | 174,855 |
MAN AG | 3,829 | 277,296 |
Merck KGaA | 1,318 | 119,860 |
Metro AG | 3,925 | 222,498 |
MLP AG | 1,150 | 23,696 |
Muenchener Rueckversicherungs-Gesellschaft AG (Registered) | 5,554 | 758,762 |
Premiere AG* | 1,539 | 14,921 |
Puma AG | 346 | 134,505 |
Rheinmetall AG | 874 | 60,936 |
RWE AG | 12,956 | 1,077,968 |
Salzgitter AG | 1,026 | 87,098 |
SAP AG | 6,432 | 1,357,431 |
Siemens AG (Registered) | 24,520 | 2,133,578 |
Solarworld AG | 868 | 54,478 |
Suedzucker AG | 1,245 | 27,612 |
ThyssenKrupp AG | 10,722 | 367,123 |
TUI AG | 6,169 | 122,223 |
Volkswagen AG | 5,105 | 358,015 |
Wincor Nixdorf AG | 421 | 53,821 |
(Cost $13,854,912) | 21,610,314 | |
Greece 0.6% | ||
Alpha Bank AE | 11,023 | 274,648 |
Coca-Cola Hellenic Bottling Co. SA | 3,530 | 105,201 |
Cosmote Mobile Telelcommunications SA | 3,400 | 76,538 |
EFG Eurobank Ergasias | 7,176 | 198,989 |
Emporiki Bank of Greece SA* | 2,325 | 80,530 |
Germanos SA | 1,260 | 30,137 |
Hellenic Exchanges Holdings SA | 790 | 12,712 |
Hellenic Petroleum SA | 3,920 | 52,144 |
Hellenic Technodomiki SA | 3,910 | 37,608 |
Hellenic Telecommunications Organization SA* | 8,810 | 194,043 |
Intracom SA | 2,190 | 14,566 |
Motor Oil (Hellas) Corinth Refineries SA | 510 | 13,594 |
National Bank of Greece SA | 8,241 | 325,495 |
OPAP SA | 6,859 | 248,276 |
Piraeus Bank SA | 6,700 | 159,395 |
Public Power Corp. (PPC) | 3,486 | 82,576 |
Titan Cement Co. SA | 1,830 | 85,856 |
Viohalco, Hellenic Copper and Aluminum Industry SA | 3,290 | 30,130 |
(Cost $1,191,225) | 2,022,438 | |
Gibraltar 0.0% | ||
PartyGaming PLC (Cost $54,079) | 22,387 | 47,815 |
Hong Kong 1.6% | ||
ASM Pacific Technology Ltd. | 5,000 | 24,304 |
Bank of East Asia Ltd. | 38,571 | 158,430 |
BOC Hong Kong (Holdings) Ltd. | 100,000 | 195,717 |
Cathay Pacific Airways Ltd. | 35,000 | 61,290 |
Cheung Kong (Holdings) Ltd. | 43,000 | 466,194 |
Cheung Kong Infrastrucure Holdings Ltd. | 10,000 | 28,907 |
CLP Holdings Ltd. | 52,600 | 307,826 |
Esprit Holdings Ltd. | 28,815 | 235,602 |
Foxconn International Holdings Ltd.* | 59,000 | 125,729 |
Giordano International Ltd. | 26,000 | 12,219 |
Hang Lung Properties Ltd. | 55,000 | 99,500 |
Hang Seng Bank Ltd. | 22,300 | 282,975 |
Henderson Land Development Co., Ltd. | 22,000 | 113,877 |
Hong Kong & China Gas Co., Ltd. | 106,887 | 234,658 |
Hong Kong Electric Holding Ltd. | 39,500 | 178,521 |
Hong Kong Exchanges & Clearing Ltd. | 32,000 | 205,812 |
Hopewell Holdings Ltd. | 21,000 | 58,947 |
Hutchison Telecommunications International Ltd.* | 30,000 | 48,865 |
Hutchison Whampoa Ltd. | 61,100 | 557,007 |
Hysan Development Co. | 13,660 | 38,695 |
Johnson Electric Holdings Ltd. | 36,000 | 26,190 |
Kerry Properties Ltd. | 11,156 | 38,066 |
Kingboard Chemical Holdings Ltd. | 8,900 | 25,154 |
Li & Fung Ltd. | 60,500 | 122,694 |
Link (REIT)* | 65,000 | 130,146 |
Melco International Development Ltd. | 13,000 | 32,641 |
MTR Corp., Ltd. | 38,904 | 93,925 |
New World Development Co., Ltd. | 65,350 | 106,865 |
Orient Overseas International Ltd. | 4,400 | 15,977 |
PCCW Ltd. | 119,443 | 85,357 |
Shangri-La Asia Ltd. | 36,499 | 70,260 |
Shun Tak Holdings Ltd. | 18,000 | 23,409 |
Sino Land Co., Ltd. | 32,972 | 52,644 |
Solomon Systech International Ltd. | 28,000 | 7,066 |
Sun Hung Kai Properties Ltd. (REIT) | 39,297 | 400,747 |
Swire Pacific Ltd. "A" | 27,500 | 283,806 |
Techtronic Industries Co., Ltd. | 30,000 | 40,560 |
Television Broadcasts Ltd. | 9,000 | 55,567 |
Wharf Holdings Ltd. | 33,102 | 117,638 |
Wing Hang Bank Ltd. | 4,000 | 34,946 |
Yue Yuen Industrial (Holdings) Ltd. | 18,000 | 49,483 |
(Cost $3,861,185) | 5,248,216 | |
Ireland 0.9% | ||
Allied Irish Banks PLC | 25,141 | 603,258 |
Bank of Ireland PLC (a) | 25,404 | 453,277 |
Bank of Ireland PLC (a) | 4,663 | 83,201 |
C&C Group PLC | 8,628 | 74,932 |
CRH PLC | 16,512 | 536,862 |
DCC PLC | 2,107 | 50,665 |
Depfa Bank PLC | 9,588 | 158,935 |
Eircom Group PLC | 23,313 | 64,706 |
Elan Corp. PLC* | 13,384 | 222,545 |
Fyffes PLC | 7,415 | 13,088 |
Grafton Group PLC (Units)* | 6,932 | 87,334 |
Greencore Group PLC | 4,345 | 20,452 |
IAWS Group PLC | 3,475 | 61,337 |
Independent News & Media PLC | 19,065 | 55,842 |
Irish Life & Permanent PLC | 7,590 | 180,569 |
Kerry Group PLC | 3,677 | 79,012 |
Kingspan Group PLC | 2,310 | 40,330 |
Paddy Power PLC | 1,301 | 22,548 |
Ryanair Holdings PLC* | 5,147 | 46,741 |
(Cost $2,068,003) | 2,855,634 | |
Italy 3.7% | ||
Alleanza Assicurazioni SpA | 12,046 | 136,510 |
Assicurazioni Generali SpA | 27,706 | 1,009,256 |
Autogrill SpA | 3,093 | 47,592 |
Autostrade SpA | 8,596 | 241,554 |
Banca Fideuram SpA | 8,881 | 51,639 |
Banca Intesa SpA | 113,313 | 663,793 |
Banca Intesa SpA (RCN) | 25,557 | 138,763 |
Banca Monte dei Paschi di Siena SpA | 31,366 | 188,558 |
Banca Popolare di Milano | 12,928 | 164,777 |
Banche Popolari Unite | 9,423 | 243,822 |
Banco Popolare di Verona e Novara | 10,549 | 282,672 |
Benetton Group SpA | 1,610 | 24,052 |
Bulgari SpA | 3,349 | 37,995 |
Capitalia SpA | 45,995 | 377,394 |
Enel SpA | 124,098 | 1,069,824 |
Eni SpA | 75,350 | 2,219,550 |
Fiat SpA* | 15,852 | 211,068 |
Finmeccanica SpA | 8,885 | 197,285 |
Fondiaria-Sai SpA | 1,753 | 71,660 |
Gruppo Editoriale L'Espresso SpA | 2,322 | 12,400 |
Italcementi SpA | 2,001 | 50,624 |
Lottomatica SpA* | 1,329 | 50,418 |
Luxottica Group SpA | 3,754 | 101,985 |
Mediaset SpA | 22,113 | 260,775 |
Mediobanca SpA | 14,391 | 281,808 |
Mediolanum SpA | 6,085 | 42,729 |
Mondadori (Arnoldo) Editore SpA | 3,666 | 35,355 |
Pirelli & C. Accomandita per Azioni | 84,527 | 73,507 |
SanPaolo IMI SpA | 32,074 | 567,366 |
SeatPagine Gialle SpA | 129,754 | 60,410 |
Snam Rete Gas SpA | 29,235 | 128,539 |
Telecom Italia SpA | 310,295 | 864,213 |
Telecom Italia SpA (Saving Shares) | 175,965 | 454,638 |
Terna SpA | 33,898 | 90,400 |
Tiscali SpA* | 2,936 | 8,722 |
UniCredito Italiano SpA | 226,226 | 1,770,849 |
(Cost $7,471,143) | 12,232,502 | |
Japan 24.1% | ||
ACOM Co., Ltd. | 2,300 | 124,808 |
Aderans Co., Ltd. | 1,900 | 51,302 |
Advantest Corp. | 2,200 | 224,152 |
AEON Co., Ltd. | 18,200 | 399,179 |
AEON Credit Services Co., Ltd. | 2,730 | 66,318 |
Aiful Corp. | 1,950 | 104,111 |
Aisin Seiki Co., Ltd. | 6,300 | 187,172 |
Ajinomoto Co., Inc. | 19,000 | 210,355 |
Alfresa Holdings Corp | 1,000 | 62,129 |
All Nippon Airways Co., Ltd. | 25,000 | 96,120 |
Alps Electric Co., Ltd. | 6,000 | 74,974 |
Amada Co., Ltd. | 12,000 | 125,830 |
Amano Corp. | 3,200 | 47,536 |
Aoyama Trading Co., Ltd. | 2,200 | 68,822 |
ARRK Corp. | 1,000 | 23,637 |
Asahi Breweries Ltd. | 10,000 | 140,423 |
Asahi Glass Co., Ltd. | 29,000 | 367,695 |
Asahi Kasei Corp. | 39,000 | 254,570 |
Asatsu, Inc. | 1,100 | 35,564 |
ASICS Corp. | 2,000 | 20,377 |
Astellas Pharma, Inc. | 16,500 | 605,558 |
Autobacs Seven Co., Ltd. | 1,100 | 47,868 |
Bank of Yokohama Ltd. | 34,000 | 262,933 |
Benesse Corp. | 1,900 | 65,580 |
Bridgestone Corp. | 18,800 | 362,233 |
Canon Sales Co., Inc. | 2,000 | 41,244 |
Canon, Inc. | 31,350 | 1,536,818 |
Casio Computer Co., Ltd. | 7,000 | 133,651 |
Central Glass Co., Ltd. | 9,000 | 53,556 |
Central Japan Railway Co. | 48 | 478,155 |
Chiyoda Corp. | 5,000 | 102,237 |
Chubu Electric Power Co., Inc. | 18,000 | 486,019 |
Chugai Pharmaceutical Co., Ltd. | 8,000 | 163,230 |
Citizen Watch Co., Ltd. | 9,300 | 84,272 |
COMSYS Holdings Corp. | 3,000 | 37,015 |
Credit Saison Co., Ltd. | 4,800 | 227,333 |
CSK Corp. | 2,100 | 95,788 |
Dai Nippon Printing Co., Ltd. | 18,000 | 278,399 |
Daicel Chemical Industries Ltd. | 6,000 | 49,021 |
Daido Steel Co., Ltd. | 8,000 | 62,775 |
Daiichi Sankyo Co., Ltd. | 20,600 | 567,022 |
Daikin Industries Ltd. | 7,600 | 263,649 |
Daimaru, Inc. | 7,000 | 92,730 |
Dainippon Ink & Chemical, Inc. | 21,000 | 78,722 |
Dainippon Screen Manufacturing Co., Ltd. | 5,000 | 45,788 |
Daito Trust Construction Co., Ltd. | 2,700 | 149,581 |
Daiwa House Industry Co., Ltd. | 14,000 | 223,873 |
Daiwa Securities Group, Inc. | 38,000 | 452,919 |
Denki Kagaku Kogyo Kabushiki Kaisha | 17,000 | 70,710 |
Denso Corp. | 15,200 | 496,749 |
DENTSU, Inc. | 51 | 140,825 |
Dowa Mining Co., Ltd. | 9,000 | 79,588 |
E*Trade Securities Co., Ltd. | 48 | 64,173 |
eAccess Ltd. | 30 | 19,687 |
East Japan Railway Co. | 100 | 742,747 |
Ebara Corp. | 8,000 | 34,114 |
EDION Corp. | 1,000 | 19,836 |
Eisai Co., Ltd. | 7,000 | 315,012 |
Electric Power Development Co., Ltd. | 4,300 | 163,824 |
Elpida Memory, Inc.* | 1,300 | 48,847 |
FamilyMart Co., Ltd. | 2,300 | 66,323 |
FANUC Ltd. | 5,500 | 494,058 |
Fast Retailing Co., Ltd. | 1,400 | 114,383 |
Fuji Electric Holdings Co., Ltd. | 13,000 | 68,044 |
Fuji Photo Film Co., Ltd. | 14,000 | 469,766 |
Fuji Television Network, Inc. | 21 | 46,610 |
Fujikura Ltd. | 10,000 | 110,364 |
Fujitsu Ltd. | 51,000 | 395,290 |
Hakuhodo Dy Holdings, Inc. | 500 | 36,788 |
Hankyu Department Stores, Inc. | 2,000 | 15,519 |
Hanshin Electric Railway Co., Ltd. | 3,000 | 21,365 |
Haseko Corp.* | 15,000 | 50,987 |
Hikari Tsushin, Inc. | 500 | 27,001 |
Hino Motors Ltd. | 6,000 | 34,918 |
Hirose Electric Co., Ltd. | 900 | 109,315 |
Hitachi Chemical Co., Ltd. | 3,400 | 89,130 |
Hitachi Construction Machinery Co., Ltd. | 2,000 | 48,148 |
Hitachi High-Technologies Corp. | 1,000 | 30,409 |
Hitachi Ltd. | 94,000 | 620,972 |
Hokkaido Electric Power Co., Inc. | 4,800 | 113,876 |
Hokugin Financial Group, Inc. | 31,000 | 129,483 |
Honda Motor Co., Ltd. | 46,000 | 1,459,105 |
House Food Corp. | 3,000 | 45,351 |
Hoya Corp. | 11,700 | 416,105 |
IBIDEN Co., Ltd. | 3,900 | 187,434 |
Index Corp. | 22 | 21,723 |
INPEX Holdings, Inc.* | 24 | 211,814 |
Isetan Co., Ltd. | 5,000 | 85,197 |
Ishikawajima-Harima Heavy Industries Co., Ltd. | 35,000 | 110,713 |
ITO EN, Ltd. | 1,600 | 58,581 |
Itochu Corp. | 41,000 | 360,058 |
Itochu Techno-Science Corp. | 600 | 27,630 |
JAFCO Co., Ltd. | 600 | 35,966 |
Japan Airlines Corp. | 19,000 | 47,649 |
Japan Prime Realty Investment Corp. (REIT) | 10 | 30,059 |
Japan Real Estate Investment Corp. (REIT) | 11 | 98,043 |
Japan Retail Fund Investment Corp. (REIT) | 9 | 70,779 |
Japan Steel Works, Ltd. | 6,000 | 41,105 |
Japan Tobacco, Inc. | 130 | 473,698 |
JFE Holdings, Inc. | 16,225 | 687,620 |
JGC Corp. | 6,000 | 103,233 |
JSR Corp. | 5,000 | 126,267 |
Kajima Corp. | 25,000 | 114,689 |
Kamigumi Co., Ltd. | 6,000 | 45,561 |
Kaneka Corp. | 8,000 | 72,702 |
Kansai Electric Power Co., Inc. | 21,100 | 472,003 |
Kansai Paint Co., Ltd. | 5,000 | 39,890 |
Kao Corp. | 15,000 | 392,564 |
Katokichi Co., Ltd. | 3,300 | 33,161 |
Kawasaki Heavy Industries Ltd. | 34,000 | 114,383 |
Kawasaki Kisen Kaisha Ltd. | 13,000 | 75,201 |
KDDI Corp. | 70 | 430,007 |
Keihin Electric Express Railway Co., Ltd. | 12,000 | 84,935 |
Keio Electric Railway Co., Ltd. | 16,000 | 103,600 |
Keisei Electric Railway Co., Ltd. | 5,000 | 28,224 |
Keyence Corp. | 970 | 247,670 |
Kikkoman Corp. | 6,000 | 74,764 |
Kinden Corp. | 6,000 | 51,433 |
Kintetsu Corp. | 43,900 | 146,538 |
Kirin Brewery Co., Ltd. | 24,000 | 377,281 |
Kobe Steel Ltd. | 73,000 | 228,364 |
Kokuyo Corp. | 3,000 | 50,175 |
Komatsu Ltd. | 27,000 | 536,744 |
Komori Corp. | 2,000 | 42,555 |
Konami Co., Ltd. | 3,200 | 70,605 |
Konica Minolta Holdings, Inc. | 13,500 | 170,461 |
Koyo Seiko Co., Ltd. | 4,000 | 77,246 |
Kubota Corp. | 30,000 | 284,429 |
Kuraray Co., Ltd. | 11,000 | 123,034 |
Kurita Water Industries Ltd. | 4,400 | 90,353 |
Kyocera Corp. | 5,000 | 387,102 |
Kyowa Hakko Kogyo Co., Ltd. | 10,000 | 67,372 |
Kyushu Electric Power Co. | 12,000 | 278,923 |
Lawson, Inc. | 1,900 | 69,233 |
Leopalace21 Corp. | 4,000 | 138,064 |
Mabuchi Motor Co., Ltd. | 1,200 | 71,723 |
Makita Corp. | 4,000 | 126,529 |
Marubeni Corp. | 43,000 | 229,203 |
Marui Co., Ltd. | 10,400 | 161,943 |
Matsui Securities Co., Ltd. | 1,900 | 17,981 |
Matsumotokiyoshi Co., Ltd. | 2,100 | 53,399 |
Matsushita Electric Industrial Co., Ltd. | 57,614 | 1,215,815 |
Matsushita Electric Works Ltd. | 10,000 | 111,063 |
Mediceo Patac Holdings Co., Ltd. | 5,100 | 91,135 |
Meiji Dairies Corp. | 8,000 | 55,855 |
Meiji Seika Kaisha Ltd. | 12,000 | 61,132 |
Meitec Corp. | 1,100 | 35,853 |
Millea Holdings, Inc. | 42 | 781,720 |
Minebea Co., Ltd. | 8,000 | 43,551 |
Mitsubishi Chemical Holdings Corp. | 33,000 | 206,178 |
Mitsubishi Corp. | 40,000 | 798,672 |
Mitsubishi Electric Corp. | 59,000 | 472,763 |
Mitsubishi Estate Co., Ltd. | 34,000 | 721,950 |
Mitsubishi Gas Chemical Co., Inc. | 13,000 | 149,039 |
Mitsubishi Heavy Industries Ltd. | 98,000 | 423,034 |
Mitsubishi Logistics Corp. | 5,000 | 78,294 |
Mitsubishi Materials Corp. | 33,000 | 140,720 |
Mitsubishi Rayon Co., Ltd. | 17,000 | 138,448 |
Mitsubishi UFJ Financial Group, Inc. | 254 | 3,551,206 |
Mitsubishi UFJ Securities Co., Ltd. | 7,000 | 90,283 |
Mitsui & Co., Ltd. | 47,000 | 663,684 |
Mitsui Chemicals, Inc. | 20,000 | 130,549 |
Mitsui Engineering & Shipbuilding Co., Ltd. | 14,000 | 42,817 |
Mitsui Fudosan Co., Ltd. | 24,000 | 521,146 |
Mitsui Mining & Smelting Co., Ltd. | 19,000 | 112,067 |
Mitsui O.S.K. Lines Ltd. | 31,000 | 210,748 |
Mitsui Sumitomo Insurance Co., Ltd. | 37,260 | 467,866 |
Mitsui Trust Holdings, Inc. | 15,100 | 181,427 |
Mitsukoshi Ltd. | 13,000 | 59,411 |
Mitsumi Electric Co., Ltd. | 900 | 10,648 |
Mizuho Financial Group, Inc. | 281 | 2,379,317 |
Murata Manufacturing Co., Ltd. | 6,300 | 409,027 |
Namco Bandai Holdings, Inc. | 5,350 | 81,297 |
NEC Corp. | 63,000 | 335,809 |
NEC Electronics Corp. | 1,800 | 57,725 |
Net One Systems Co., Ltd. | 18 | 33,502 |
NGK Insulators Ltd. | 7,000 | 81,842 |
NGK Spark Plug Co., Ltd. | 6,000 | 120,587 |
NHK Spring Co., Ltd. | 3,000 | 34,525 |
Nichirei Corp. | 9,000 | 48,130 |
Nidec Corp. | 3,400 | 243,621 |
Nikko Cordial Corp. | 23,000 | 294,233 |
Nikon Corp. | 8,000 | 139,671 |
Nintendo Co., Ltd. | 3,000 | 503,321 |
Nippon Building Fund, Inc. | 12 | 116,393 |
Nippon Electric Glass Co., Ltd. | 6,000 | 120,325 |
Nippon Express Co., Ltd. | 25,000 | 135,005 |
Nippon Meat Packers, Inc. | 5,000 | 57,934 |
Nippon Mining Holdings, Inc. | 25,000 | 210,372 |
Nippon Oil Co., Ltd. | 37,000 | 270,290 |
Nippon Sheet Glass Co., Ltd. | 10,000 | 55,575 |
Nippon Shokubai Co., Ltd. | 2,000 | 24,449 |
Nippon Steel Corp. | 184,000 | 696,190 |
Nippon Telegraph & Telephone Corp. | 148 | 725,516 |
Nippon Unipac Holdings | 29 | 118,595 |
Nippon Yusen Kabushiki Kaisha | 30,000 | 195,037 |
Nishi-Nippon City Bank Ltd. | 12,000 | 57,462 |
Nishimatsu Construction Co., Ltd. | 5,000 | 18,656 |
Nissan Chemical Industries Ltd. | 4,000 | 49,843 |
Nissan Motor Co., Ltd. | 65,300 | 713,256 |
Nisshin Seifun Group, Inc. | 5,000 | 55,706 |
Nisshin Steel Co., Ltd. | 29,000 | 93,254 |
Nisshinbo Industries | 3,000 | 32,821 |
Nissin Food Products Co., Ltd. | 2,400 | 84,726 |
Nitori Co., Ltd. | 700 | 34,070 |
Nitto Denko Corp. | 4,800 | 341,839 |
NOK Corp. | 3,300 | 95,736 |
Nomura Holdings, Inc. | 52,500 | 984,031 |
Nomura Real Estate Office Fund, Inc. (REIT) | 3 | 23,750 |
Nomura Research Institute Ltd. | 700 | 86,613 |
NSK Ltd. | 14,000 | 116,096 |
NTN Corp. | 13,000 | 102,805 |
NTT Data Corp. | 39 | 168,691 |
NTT DoCoMo, Inc. | 538 | 789,794 |
NTT Urban Development Corp. | 5 | 38,972 |
Obayashi Corp. | 19,000 | 130,662 |
Obic Co., Ltd. | 200 | 40,440 |
Odakyu Electric Railway Co., Ltd. | 20,000 | 128,976 |
Oji Paper Co., Ltd. | 25,000 | 142,214 |
Oki Electric Industry Co., Ltd. | 15,000 | 35,390 |
OKUMA Corp. | 2,000 | 22,580 |
Okumura Corp. | 1,000 | 5,558 |
Olympus Corp. | 7,000 | 187,172 |
Omron Corp. | 6,400 | 163,020 |
Onward Kashiyama Co. | 4,000 | 61,552 |
Oracle Corp. | 1,100 | 51,424 |
Oriental Land Co., Ltd. | 1,600 | 90,038 |
ORIX Corp. | 2,400 | 586,159 |
Osaka Gas Co. | 55,000 | 176,861 |
OSG Corp. | 1,000 | 16,839 |
Otsuka Corp. | 300 | 33,817 |
Park24 Co., Ltd. | 700 | 20,613 |
Pioneer Corp. | 5,400 | 87,106 |
Promise Co., Ltd. | 2,700 | 156,423 |
Q.P. Corp. | 2,000 | 18,997 |
Rakuten, Inc. | 187 | 111,115 |
Resona Holding, Inc. | 125 | 394,311 |
Ricoh Co., Ltd. | 19,000 | 372,728 |
ROHM Co., Ltd. | 3,100 | 277,115 |
Ryohin Keikaku Co., Ltd. | 400 | 32,786 |
Sanken Electric Co., Ltd. | 2,000 | 25,446 |
Sankyo Co., Ltd. | 1,300 | 82,585 |
Santen Pharmaceutical Co., Ltd. | 2,000 | 47,536 |
Sanyo Electric Co., Ltd.* | 50,000 | 107,917 |
Sapporo Hokuyo Holdings, Inc. | 7 | 73,401 |
Sapporo Holdings Ltd. | 5,000 | 25,297 |
SBI Holdings, Inc. | 277 | 122,234 |
Secom Co., Ltd. | 6,400 | 302,552 |
Sega Sammy Holdings, Inc. | 6,000 | 222,300 |
Seiko Epson Corp. | 3,300 | 89,969 |
Seino Transportation Co. | 4,000 | 42,223 |
Sekisui Chemical Co., Ltd. | 14,000 | 120,867 |
Sekisui House Ltd. | 15,000 | 205,916 |
Seven & I Holdings Co., Ltd. | 22,900 | 754,395 |
SFCG Co., Ltd. | 130 | 29,535 |
Sharp Corp. | 31,000 | 489,759 |
Shimachu Co., Ltd. | 700 | 18,289 |
Shimamura Co., Ltd. | 600 | 65,746 |
Shimano, Inc. | 2,500 | 76,459 |
Shimizu Corp. | 18,000 | 100,821 |
Shin-Etsu Chemical Co., Ltd. | 11,100 | 603,303 |
Shinko Electric Industries Co., Ltd. | 1,000 | 29,011 |
Shinko Securities Co., Ltd. | 12,000 | 50,751 |
Shinsei Bank Ltd. | 36,000 | 228,067 |
Shionogi & Co., Ltd. | 9,000 | 160,433 |
Shiseido Co., Ltd. | 11,000 | 215,790 |
Showa Denko KK | 34,000 | 151,223 |
Showa Shell Sekiyu KK | 5,000 | 58,677 |
Skylark Co., Ltd. | 3,100 | 67,586 |
SMC Corp. | 1,500 | 212,207 |
Softbank Corp. | 20,300 | 454,994 |
Sojitz Corp.* | 14,800 | 58,455 |
Sompo Japan Insurance, Inc. | 23,000 | 321,566 |
Sony Corp. | 29,600 | 1,306,187 |
Stanley Electric Co., Ltd. | 4,700 | 96,924 |
Sumco Corp. | 1,800 | 102,552 |
Sumitomo Bakelite Co., Ltd. | 2,000 | 18,770 |
Sumitomo Chemical Co., Ltd. | 42,000 | 350,122 |
Sumitomo Corp. | 33,000 | 435,136 |
Sumitomo Electric Industries Ltd. | 22,600 | 330,982 |
Sumitomo Heavy Industries Ltd. | 16,000 | 147,920 |
Sumitomo Metal Industries Ltd. | 112,000 | 461,936 |
Sumitomo Metal Mining Co., Ltd. | 15,000 | 195,561 |
Sumitomo Mitsui Finance Group, Inc. | 173 | 1,829,168 |
Sumitomo Osaka Cement Co., Ltd. | 12,000 | 36,910 |
Sumitomo Realty & Development Co., Ltd. | 12,000 | 295,701 |
Sumitomo Rubber Industries Ltd. | 6,600 | 72,609 |
Suzuken Co., Ltd. | 1,900 | 75,376 |
T&D Holdings, Inc. | 6,650 | 537,509 |
Taiheiyo Cement Corp. | 29,000 | 106,938 |
Taisei Corp. | 29,000 | 105,925 |
Taisho Pharmaceutical Co., Ltd. | 5,000 | 98,086 |
Taiyo Nippon Sanso Corp. | 6,000 | 47,606 |
Taiyo Yuden Co., Ltd. | 5,000 | 63,483 |
Takara Holdings, Inc. | 4,000 | 23,383 |
Takashimaya Co., Ltd. | 10,000 | 125,481 |
Takeda Chemical Industries Ltd. | 26,100 | 1,623,838 |
Takefuji Corp. | 3,320 | 197,854 |
Tanabe Seiyaku Co., Ltd. | 8,000 | 98,427 |
TDK Corp. | 3,600 | 273,681 |
Teijin Ltd. | 28,000 | 177,630 |
Terumo Corp. | 4,800 | 160,224 |
The 77 Bank Ltd. | 8,000 | 55,715 |
The Bank of Fukuoka Ltd. | 17,000 | 129,238 |
The Bank of Kyoto Ltd. | 10,000 | 107,917 |
The Chiba Bank Ltd. | 22,000 | 205,697 |
The Furukawa Electric Co., Ltd. | 19,000 | 122,859 |
The Goodwill Group, Inc. | 67 | 49,471 |
The Gunma Bank Ltd. | 10,000 | 74,275 |
The Joyo Bank Ltd. | 19,000 | 115,222 |
The Shizuoka Bank Ltd. | 16,000 | 172,807 |
The Sumitomo Trust & Banking Co., Ltd. | 39,000 | 425,987 |
The Suruga Bank Ltd. | 6,000 | 80,846 |
THK Co., Ltd. | 3,300 | 98,331 |
TIS, Inc. | 1,000 | 27,962 |
Tobu Railway Co., Ltd. | 24,000 | 114,505 |
Toda Corp. | 6,000 | 28,993 |
Toho Co., Ltd. | 4,300 | 85,857 |
Toho Titanium Co., Ltd. | 1,000 | 54,002 |
Tohoku Electric Power Co., Inc. | 13,400 | 293,901 |
Tokuyama Corp. | 8,000 | 118,840 |
Tokyo Broadcasting System, Inc. | 1,800 | 43,333 |
Tokyo Electric Power Co. | 33,300 | 919,504 |
Tokyo Electron Ltd. | 5,000 | 349,528 |
Tokyo Gas Co., Ltd. | 64,000 | 301,433 |
Tokyo Seimitsu Co., Ltd. | 600 | 31,143 |
Tokyo Steel Manufacturing Co., Ltd. | 4,400 | 96,312 |
Tokyo Style Co., Ltd. | 2,000 | 23,785 |
Tokyo Tatemono Co., Ltd. | 6,000 | 64,278 |
Tokyu Corp. | 27,000 | 157,602 |
Tokyu Land Corp. | 13,000 | 101,215 |
TonenGeneral Sekiyu K.K. | 9,000 | 92,485 |
Toppan Printing Co., Ltd. | 16,000 | 180,916 |
Toray Industries, Inc. | 41,000 | 355,758 |
Toshiba Corp. | 88,000 | 574,415 |
Tosoh Corp. | 15,000 | 59,769 |
Tostem Inax Holding Corp. | 7,848 | 164,929 |
TOTO Ltd. | 10,000 | 95,596 |
Toyo Seikan Kaisha Ltd. | 5,000 | 90,659 |
Toyo Suisan Kaisha Ltd. | 2,000 | 31,318 |
Toyobo Co., Ltd. | 20,000 | 56,624 |
Toyoda Gosei Co., Ltd. | 900 | 18,049 |
Toyota Industries Corp. | 5,700 | 225,131 |
Toyota Motor Corp. | 83,200 | 4,354,841 |
Toyota Tsusho Corp. | 6,000 | 143,918 |
Trend Micro, Inc. | 3,000 | 101,188 |
Ube Industries Ltd. | 29,000 | 83,878 |
Uni-Charm Co. | 1,400 | 77,316 |
UNY Co., Ltd. | 5,000 | 73,707 |
Ushio, Inc. | 4,000 | 84,411 |
USS Co., Ltd. | 800 | 52,849 |
Wacoal Corp. | 4,000 | 56,064 |
West Japan Railway Corp. | 48 | 199,231 |
Yahoo Japan Corp. | 481 | 254,706 |
Yakult Honsha Co., Ltd. | 3,000 | 81,527 |
Yamada Denki Co., Ltd. | 2,500 | 254,937 |
Yamaha Corp. | 5,000 | 93,936 |
Yamaha Motor Co., Ltd. | 6,000 | 156,763 |
Yamato Transport Co., Ltd. | 10,000 | 177,386 |
Yamazaki Baking Co., Ltd. | 5,000 | 44,783 |
Yaskawa Electric Corp. | 4,000 | 46,487 |
Yokogawa Electric Corp. | 6,000 | 85,512 |
ZEON Corp. | 4,000 | 47,606 |
(Cost $55,213,996) | 80,065,939 | |
Luxembourg 0.2% | ||
Arcelor | 15,266 | 736,911 |
Stolt-Nielsen SA | 1,200 | 28,145 |
(Cost $299,138) | 765,056 | |
Netherlands 5.5% | ||
ABN AMRO Holding NV | 52,404 | 1,433,715 |
Aegon NV | 41,898 | 716,494 |
Akzo Nobel NV | 7,944 | 428,378 |
ASML Holding NV* | 13,191 | 267,252 |
Buhrmann NV | 2,219 | 32,185 |
Corio NV | 1,310 | 81,482 |
Euronext NV | 2,391 | 224,167 |
European Aeronautic Defence & Space Co. | 9,846 | 282,851 |
Fugro NV | 1,397 | 60,252 |
Getronics NV | 2,768 | 29,775 |
Hagemeyer NV* | 12,558 | 57,985 |
Heineken NV | 6,972 | 295,616 |
ING Groep NV | 53,873 | 2,117,490 |
James Hardie Industries NV | 10,043 | 57,465 |
Koninklijke (Royal) KPN NV | 56,321 | 633,209 |
Koninklijke (Royal) Philips Electronics NV | 36,186 | 1,130,711 |
Koninklijke Ahold NV* | 45,917 | 398,778 |
Koninklijke Ahold NV (ADR)* | 11,830 | 102,330 |
Koninklijke DSM NV | 4,367 | 181,868 |
Oce NV | 1,190 | 17,473 |
QIAGEN NV* | 3,029 | 40,873 |
Randstad Holdings NV | 1,070 | 62,736 |
Reed Elsevier NV | 20,495 | 308,278 |
Rodamco Europe NV | 1,439 | 141,078 |
Royal Dutch Shell PLC "A" | 115,179 | 3,876,403 |
Royal Dutch Shell PLC "B" | 80,007 | 2,797,717 |
Royal Numico NV | 4,586 | 205,828 |
SBM Offshore NV | 3,948 | 105,236 |
STMicroelectronics NV | 20,472 | 329,666 |
TNT NV | 12,131 | 434,142 |
Unilever NV | 49,533 | 1,123,288 |
Vedior NV | 5,399 | 113,390 |
Wereldhave NV | 498 | 48,441 |
Wolters Kluwer NV | 7,862 | 185,732 |
(Cost $13,109,238) | 18,322,284 | |
New Zealand 0.1% | ||
Auckland International Airport Ltd. | 33,452 | 44,230 |
Contact Energy Ltd. | 10,746 | 46,618 |
Fisher & Paykel Appliances Holdings Ltd. | 4,480 | 12,584 |
Fisher & Paykel Corp., Ltd. | 18,285 | 48,018 |
Fletcher Building Ltd. | 15,863 | 88,438 |
Kiwi Income Property Trust | 23,532 | 19,643 |
Sky City Entertainment Group Ltd. | 12,010 | 39,515 |
Sky Network Television Ltd. | 4,696 | 16,452 |
Telecom Corp. of New Zealand Ltd. | 56,363 | 138,741 |
The Warehouse Group Ltd. | 3,494 | 10,559 |
Tower Ltd.* | 5,324 | 11,159 |
Vector Ltd. | 3,419 | 5,083 |
(Cost $345,916) | 481,040 | |
Norway 0.8% | ||
Aker Kvaerner ASA | 650 | 60,981 |
Det Norske Oljeselskap ASA* | 17,000 | 34,137 |
DNB NOR ASA | 21,050 | 261,227 |
Norsk Hydro ASA | 21,400 | 567,238 |
Norske Skogindustrier ASA | 5,071 | 74,335 |
Ocean Rig ASA* | 3,100 | 21,763 |
Orkla ASA | 5,564 | 257,870 |
Petrojarl ASA* | 1,800 | 11,856 |
Petroleum Geo-Services ASA* | 1,800 | 101,496 |
Prosafe ASA | 900 | 54,941 |
Schibsted ASA | 1,200 | 32,000 |
Statoil ASA | 19,850 | 562,824 |
Storebrand ASA | 6,600 | 68,121 |
Tandberg ASA | 3,600 | 29,784 |
Tandberg Television ASA* | 2,300 | 38,149 |
Telenor ASA | 24,000 | 290,125 |
TGS Nopec Geophysical Co. ASA* | 2,200 | 38,876 |
Tomra Systems ASA | 5,300 | 42,997 |
Yara International ASA | 5,800 | 77,334 |
(Cost $1,227,734) | 2,626,054 | |
Portugal 0.3% | ||
Banco BPI SA | 9,159 | 69,586 |
Banco Comercial Portugues SA | 63,263 | 179,635 |
Banco Espirito Santo e Comercial de Lisboa SA | 5,058 | 68,188 |
Brisa-Auto Estrada de Portugal SA | 9,427 | 98,390 |
CIMPOR-Cimentos de Portugal | 6,273 | 41,802 |
Electricidade de Portugal | 57,109 | 224,249 |
Jeronimo Martins, SGPS SA | 1,588 | 27,116 |
Portugal Telecom, SGPS SA (Registered) | 24,199 | 292,184 |
PT Multimedia-Servicos de Telecomunicacoes e Multimedia, SGPS SA | 2,832 | 32,782 |
Sonae Industria-SGPS SA* | 1,634 | 14,066 |
Sonae SGPS SA | 24,104 | 36,071 |
(Cost $724,688) | 1,084,069 | |
Singapore 0.8% | ||
Ascendas Real Estate Investment Trust (REIT) | 36,750 | 44,578 |
Capitaland Ltd. | 39,750 | 113,008 |
CapitaMall Trust (REIT) | 30,300 | 40,582 |
Chartered Semiconductors Manufacturing Ltd.* | 26,400 | 22,516 |
City Developments Ltd. | 14,000 | 82,699 |
ComfortDelGro Corp., Ltd. | 64,000 | 61,863 |
Creative Technologies Ltd. | 1,000 | 5,560 |
DBS Group Holdings Ltd. | 33,513 | 383,224 |
Fraser and Neave Ltd. | 24,300 | 61,408 |
Haw Par Corp., Ltd. | 4,245 | 15,287 |
Jardine Cycle & Carriage Ltd. | 5,774 | 36,479 |
Keppel Corp. | 15,750 | 146,271 |
Keppel Land Ltd. | 5,000 | 12,762 |
Neptune Orient Lines Ltd. | 20,000 | 22,870 |
Oversea-Chinese Banking Corp., Ltd. | 72,008 | 300,251 |
Parkway Holdings Ltd. | 9,000 | 14,044 |
SembCorp Industries Ltd. | 29,449 | 60,280 |
SembCorp Marine Ltd. | 19,000 | 36,011 |
Singapore Airlines Ltd. | 18,000 | 144,423 |
Singapore Exchange Ltd. | 25,000 | 55,596 |
Singapore Post Ltd. | 28,000 | 19,105 |
Singapore Press Holdings Ltd. | 48,758 | 126,912 |
Singapore Technologies Engineering Ltd. | 44,000 | 80,336 |
Singapore TeleCommunications Ltd. | 225,580 | 361,988 |
STATS ChipPAC Ltd.* | 36,000 | 22,630 |
Suntec Real Estate Investment Trust (REIT) | 22,000 | 17,235 |
United OverSeas Bank Ltd. | 35,448 | 349,363 |
United Overseas Land Ltd. | 16,544 | 29,893 |
Venture Corp., Ltd. | 8,000 | 53,574 |
Wing Tai Holdings Ltd. | 16,333 | 14,653 |
(Cost $1,886,470) | 2,735,401 | |
Spain 3.7% | ||
Abertis Infraestructuras SA | 6,987 | 163,631 |
Acciona SA | 768 | 119,302 |
Acerinox SA | 4,981 | 86,390 |
ACS, Actividades de Construccion y Servicios SA | 7,309 | 304,857 |
Altadis SA | 7,903 | 373,604 |
Antena 3 de Television SA | 2,288 | 52,267 |
Banco Bilbao Vizcaya Argentaria SA | 97,896 | 2,013,440 |
Banco Popular Espanol SA | 23,038 | 343,288 |
Banco Santander Central Hispano SA | 171,349 | 2,502,853 |
Cintra Concesiones de Infraestructuras de Transporte SA | 6,186 | 80,863 |
Corporacion Mapfre SA | 3,256 | 60,095 |
Ebro Puleva SA | 2,061 | 42,310 |
Endesa SA | 27,707 | 963,577 |
Fadesa Inmobiliaria SA | 1,091 | 37,426 |
Fomento de Construcciones y Contratas SA | 1,152 | 87,598 |
Gamesa Corporacion Tecnologica SA | 4,068 | 87,205 |
Gas Natural SDG SA | 4,850 | 148,075 |
Grupo Ferrovial SA | 1,802 | 137,599 |
Iberdrola SA | 23,427 | 806,939 |
Iberia Lineas Aereas de Espana SA | 11,243 | 29,048 |
Indra Sistemas SA | 3,458 | 67,892 |
Industria de Diseno Textil SA | 6,179 | 260,649 |
Inmobiliaria Colonial SA | 768 | 61,002 |
Metrovacesa SA | 1,444 | 130,395 |
NH Hoteles SA | 1,973 | 35,380 |
Promotora de Informaciones SA (Prisa) | 2,251 | 36,133 |
Repsol YPF SA | 26,462 | 757,817 |
Sacyr Vallehermoso SA (a) | 3,031 | 101,301 |
Sacyr Vallehermoso SA (a) | 112 | 3,743 |
Sociedad General de Aguas de Barcelona SA* | 16 | 441 |
Sociedad General de Aguas de Barcelona SA "A" | 1,673 | 46,499 |
Sogecable SA* | 1,251 | 35,986 |
Telefonica Publicidad e Informacion SA | 3,881 | 42,045 |
Telefonica SA | 128,774 | 2,144,504 |
Union Fenosa SA | 3,621 | 140,147 |
Zeltia SA | 3,554 | 26,138 |
(Cost $6,786,610) | 12,330,439 | |
Sweden 2.3% | ||
Alfa Laval AB | 1,600 | 47,911 |
Assa Abloy AB "B" | 9,700 | 163,088 |
Atlas Copco AB "A" | 9,513 | 264,369 |
Atlas Copco AB "B" | 6,726 | 174,768 |
Axfood AB | 500 | 14,381 |
Billerud AB | 1,000 | 13,270 |
Boliden AB | 6,200 | 114,149 |
Capio AB* | 2,520 | 45,170 |
Castellum AB | 6,000 | 61,486 |
Electrolux AB "B" | 8,585 | 124,062 |
Eniro AB | 6,200 | 65,259 |
Fabege AB | 2,895 | 53,904 |
Getinge AB "B" | 6,000 | 102,129 |
Hennes & Mauritz AB "B" | 15,200 | 589,266 |
Hoganas AB "B" | 600 | 14,923 |
Holmen AB "B" | 1,900 | 76,826 |
Husqvarna AB "B"* | 8,585 | 103,484 |
Lundin Petroleum AB* | 3,500 | 42,432 |
Modern Times Group AB "B" | 1,200 | 63,112 |
Modern Times Group AB "RED"* | 1,200 | 0 |
Nordea Bank AB | 66,614 | 796,027 |
OM Hex AB | 3,100 | 55,567 |
Oriflame Cosmetics SA (SDR) | 400 | 13,312 |
Sandvik AB | 31,500 | 366,572 |
SAS AB* | 1,500 | 15,788 |
Scania AB "B" | 3,000 | 136,312 |
Securitas AB "B" | 9,200 | 176,413 |
Skandinaviska Enskilda Banken AB "A" | 14,160 | 337,436 |
Skanska AB "B" | 10,600 | 163,490 |
SKF AB "B" | 12,400 | 195,560 |
SSAB Svenskt Stal AB "A" | 5,250 | 104,683 |
SSAB Svenskt Stal AB "B" | 270 | 5,102 |
Svenska Cellulosa AB "B" | 6,066 | 250,757 |
Svenska Handelsbanken AB "A" | 14,800 | 381,478 |
Swedish Match AB | 10,265 | 165,455 |
Tele2 AB "B" | 9,900 | 100,076 |
Telefonaktiebolaget LM Ericsson "B" | 446,600 | 1,476,928 |
TeliSonera AB | 58,051 | 329,911 |
Trelleborg AB "B" | 2,300 | 39,309 |
Volvo AB "A" | 2,910 | 140,309 |
Volvo AB "B" | 6,880 | 338,419 |
Wihlborgs Fastigheter AB | 1,158 | 19,952 |
WM-Data AB "B" | 7,800 | 24,061 |
(Cost $3,869,527) | 7,766,906 | |
Switzerland 7.0% | ||
ABB Ltd. | 58,865 | 765,575 |
Adecco SA (Registered) | 4,042 | 239,038 |
Ciba Specialty Chemicals AG (Registered) | 2,114 | 117,843 |
Clariant AG (Registered)* | 6,750 | 95,794 |
Compagnie Financiere Richemont AG "A" (Bearer) | 15,022 | 688,096 |
Credit Suisse Group (Registered) | 35,220 | 1,970,511 |
Geberit AG (Registered) | 137 | 158,454 |
Givaudan SA | 190 | 149,585 |
Holcim Ltd. (Registered) | 6,075 | 465,607 |
Kudelski SA (Bearer) | 1,000 | 24,171 |
Kuehne & Nagel International AG (Registered) | 1,235 | 89,906 |
Kuoni Reisen AG (Registered) "B"* | 46 | 25,812 |
Logitech International SA (Registered)* | 2,200 | 84,937 |
Lonza Group AG (Registered) | 1,150 | 78,874 |
Micronas Semiconductor Holdings AG (Registered)* | 690 | 18,625 |
Nestle SA (Registered) | 11,855 | 3,723,627 |
Nobel Biocare Holding AG | 100 | 23,733 |
Nobel Biocare Holding AG (Bearer) | 599 | 142,211 |
Novartis AG (Registered) | 68,401 | 3,703,854 |
Phonak Holding AG (Registered) | 875 | 54,717 |
PSP Swiss Property AG* | 770 | 39,805 |
Rieter Holdings AG | 73 | 28,064 |
Roche Holding AG (Genusschein) | 20,643 | 3,412,499 |
Serono SA "B" | 177 | 122,266 |
SGS Holdings SA (Registered) | 125 | 118,604 |
SIG Holding AG (Registered)* | 110 | 24,203 |
Straumann SA (Registered) | 150 | 38,250 |
Sulzer AG (Registered) | 105 | 78,672 |
Swatch Group AG (Bearer) | 1,013 | 171,105 |
Swatch Group AG (Registered) | 1,800 | 62,869 |
Swiss Re (Registered) | 9,832 | 687,207 |
Swisscom AG (Registered) | 615 | 202,476 |
Syngenta AG (Registered)* | 3,206 | 426,138 |
Synthes, Inc. | 1,526 | 184,111 |
UBS AG (Registered) | 30,383 | 3,330,188 |
Unaxis Holding AG (Registered)* | 276 | 76,758 |
Xstrata PLC | 13,203 | 500,508 |
Zurich Financial Services AG (Registered)* | 4,330 | 949,196 |
(Cost $12,940,888) | 23,073,889 | |
United Kingdom 21.8% | ||
3i Group PLC | 16,400 | 273,397 |
Aegis Group PLC | 28,210 | 67,946 |
Aggreko PLC | 4,308 | 22,883 |
Alliance Unichem PLC | 7,796 | 147,335 |
AMEC PLC | 7,045 | 41,460 |
Amvescap PLC | 20,785 | 190,353 |
Anglo American PLC | 41,775 | 1,713,414 |
ARM Holdings PLC | 38,181 | 79,959 |
Arriva PLC | 5,966 | 65,808 |
Associated British Ports Holdings PLC | 8,337 | 139,214 |
AstraZeneca PLC | 46,212 | 2,789,261 |
Aviva PLC | 69,806 | 988,148 |
BAA PLC | 32,422 | 559,378 |
BAE Systems PLC | 95,852 | 655,381 |
Balfour Beatty PLC | 14,325 | 90,992 |
Barclays PLC | 188,298 | 2,139,695 |
Barratt Developments PLC | 7,469 | 130,935 |
BBA Group PLC | 16,408 | 80,178 |
Bellway PLC | 2,380 | 51,053 |
Berkeley Group Holdings PLC* | 3,735 | 83,779 |
BG Group PLC | 104,681 | 1,398,588 |
BHP Billiton PLC | 72,771 | 1,411,621 |
BOC Group PLC | 15,472 | 452,337 |
Boots Group PLC | 13,826 | 196,739 |
Bovis Homes Group PLC | 2,635 | 39,127 |
BP PLC | 601,864 | 7,017,261 |
Brambles Industries PLC | 23,121 | 183,848 |
British Airways PLC* | 15,414 | 97,696 |
British America Tobacco PLC | 46,624 | 1,174,278 |
British Land Co. PLC | 15,132 | 353,414 |
British Sky Broadcasting Group PLC | 36,245 | 384,384 |
Brixton PLC | 6,007 | 53,236 |
BT Group PLC | 249,467 | 1,103,695 |
Bunzl PLC | 9,484 | 108,296 |
Burberry Group PLC | 11,368 | 90,393 |
Cable & Wireless PLC | 57,924 | 123,180 |
Cadbury Schweppes PLC | 59,167 | 570,582 |
Capita Group PLC | 18,188 | 155,218 |
Carnival PLC | 5,168 | 210,534 |
Carphone Warehouse PLC | 8,969 | 52,659 |
Cattles PLC | 8,499 | 51,746 |
Centrica PLC | 101,144 | 533,519 |
Charter PLC* | 3,650 | 54,435 |
Close Brothers Group PLC | 2,533 | 42,672 |
Cobham PLC | 35,339 | 109,133 |
Collins Stewart Tullett PLC | 4,955 | 69,546 |
Compass Group PLC | 66,424 | 322,125 |
Cookson Group PLC | 3,667 | 35,617 |
Corus Group PLC | 23,103 | 195,026 |
CSR PLC* | 3,281 | 76,447 |
Daily Mail & General Trust "A" | 8,137 | 92,388 |
Davis Service Group PLC | 3,601 | 31,414 |
De Lau Rue PLC | 2,619 | 26,467 |
Diageo PLC | 83,879 | 1,410,718 |
DSG International PLC | 53,577 | 189,233 |
Electrocomponents PLC | 13,826 | 59,252 |
EMAP PLC | 7,376 | 116,142 |
EMI Group PLC | 22,928 | 128,785 |
Enterprise Inns PLC | 10,526 | 184,525 |
First Choice Holidays PLC | 9,855 | 41,687 |
FirstGroup PLC | 10,787 | 93,553 |
FKI PLC | 16,691 | 33,026 |
Friends Provident PLC | 55,115 | 182,180 |
Gallaher Group PLC | 19,446 | 303,858 |
George Wimpey PLC | 9,766 | 82,125 |
GKN PLC | 19,740 | 99,654 |
GlaxoSmithKline PLC | 169,598 | 4,738,811 |
Great Portland Estates PLC | 2,801 | 25,898 |
Group 4 Securicor PLC | 38,300 | 118,808 |
GUS PLC | 26,390 | 471,412 |
Hammerson PLC | 8,634 | 189,038 |
Hanson PLC | 20,379 | 247,401 |
Hays PLC | 41,752 | 104,231 |
HBOS PLC | 111,014 | 1,929,700 |
HMV Group PLC | 8,717 | 27,726 |
HSBC Holdings PLC | 330,405 | 5,813,526 |
ICAP PLC | 12,399 | 114,183 |
IMI PLC | 11,801 | 108,948 |
Imperial Chemical Industries PLC | 33,910 | 227,624 |
Imperial Tobacco Group PLC | 21,282 | 656,830 |
Inchcape PLC | 11,742 | 102,595 |
InterContinental Hotels Group PLC | 11,865 | 207,450 |
International Power PLC | 45,571 | 239,748 |
Intertek Group PLC | 5,316 | 68,812 |
Invensys PLC* | 153,281 | 54,564 |
Investec PLC | 1,652 | 78,816 |
ITV PLC | 116,723 | 233,112 |
J Sainsbury PLC | 38,762 | 239,765 |
Johnson Mathey PLC | 6,101 | 149,712 |
Kelda Group PLC | 10,023 | 141,882 |
Kesa Electricals PLC | 14,930 | 79,789 |
Kingfisher PLC | 68,805 | 303,454 |
Ladbrokes PLC | 15,535 | 117,064 |
Land Securities Group PLC | 14,143 | 469,189 |
Legal & General Group PLC | 189,530 | 449,489 |
Liberty International PLC | 7,791 | 153,436 |
Lloyds TSB Group PLC | 165,003 | 1,621,733 |
LogicaCMG PLC | 32,926 | 106,247 |
London Stock Exchange Group PLC | 5,600 | 117,846 |
Man Group PLC | 8,960 | 422,174 |
Marks & Spencer Group PLC | 49,862 | 541,243 |
Meggitt PLC | 10,227 | 60,373 |
MFI Furniture Group PLC | 10,649 | 21,268 |
Michael Page International PLC | 7,358 | 47,691 |
Misys PLC | 15,595 | 62,002 |
National Express Group PLC | 3,467 | 56,931 |
National Grid PLC | 80,588 | 871,787 |
Next PLC | 7,226 | 218,073 |
Old Mutual PLC | 158,396 | 478,169 |
Pearson PLC | 22,847 | 311,162 |
Persimmon PLC | 8,847 | 201,881 |
Premier Farnell PLC | 7,443 | 24,396 |
Provident Financial PLC | 8,907 | 101,296 |
Prudential PLC | 70,823 | 800,202 |
Punch Taverns PLC | 6,342 | 102,617 |
Rank Group PLC | 16,572 | 61,137 |
Reckitt Benckiser PLC | 18,333 | 684,808 |
Reed Elsevier PLC | 35,070 | 354,089 |
Rentokil Initial PLC | 51,529 | 148,649 |
Resolution PLC | 4,709 | 58,343 |
Reuters Group PLC | 42,900 | 305,423 |
Rexam PLC | 15,180 | 148,214 |
Rio Tinto PLC | 31,266 | 1,652,992 |
Rolls-Royce Group PLC* | 53,652 | 410,743 |
Royal & Sun Alliance Insurance Group PLC | 80,679 | 200,663 |
Royal Bank of Scotland Group PLC | 93,311 | 3,067,954 |
SABMiller PLC | 25,399 | 457,702 |
Schroders PLC | 4,396 | 82,104 |
Scottish & Newcastle PLC | 21,641 | 203,995 |
Scottish & Southern Energy PLC | 25,801 | 549,156 |
Scottish Power PLC | 42,914 | 462,649 |
Serco Group PLC | 16,202 | 95,874 |
Severn Trent PLC | 9,558 | 206,794 |
Signet Group PLC | 55,336 | 98,234 |
Slough Estates PLC | 12,154 | 137,436 |
Smith & Nephew PLC | 27,731 | 213,582 |
Smiths Group PLC | 16,026 | 264,051 |
Sportingbet PLC | 8,893 | 64,711 |
SSL International PLC | 3,036 | 16,688 |
Stagecoach Group PLC | 19,880 | 42,368 |
Stolt Offshore SA* | 5,800 | 88,283 |
Tate & Lyle PLC | 13,864 | 155,234 |
Taylor Woodrow PLC | 17,689 | 109,253 |
Tesco PLC | 235,823 | 1,456,523 |
The Sage Group PLC | 36,547 | 155,947 |
Tomkins PLC | 22,686 | 120,714 |
Travis Perkins PLC | 3,190 | 89,251 |
Trinity Mirror PLC | 8,191 | 73,916 |
Unilever PLC | 36,579 | 822,526 |
United Business Media PLC | 7,149 | 85,599 |
United Utilities PLC | 26,751 | 317,337 |
Vodafone Group PLC | 1,766,238 | 3,764,214 |
Whitbread PLC | 7,044 | 151,881 |
William Hill PLC | 11,248 | 130,311 |
Wolseley PLC | 17,969 | 396,414 |
WPP Group PLC | 35,986 | 435,539 |
Yell Group PLC | 21,315 | 201,611 |
(Cost $48,104,610) | 72,625,944 | |
Total Common Stocks (Cost $207,713,336) | 326,332,208 | |
| ||
Preferred Stocks 0.2% | ||
Belgium 0.0% | ||
Fortis VVPR Strip* (Cost $2) | 2,223 | 142 |
Germany 0.2% | ||
Henkel KGaA | 1,692 | 193,389 |
Porsche AG | 214 | 206,867 |
ProSiebensat. 1 Media AG | 2,063 | 51,533 |
RWE AG | 1,035 | 77,959 |
Volkswagen AG | 2,832 | 143,080 |
(Cost $385,702) | 672,828 | |
Italy 0.0% | ||
Compagnia Assicuratrice Unipol SpA (Cost $60,785) | 21,485 | 62,518 |
Switzerland 0.0% | ||
Schindler Holding AG (Cost $32,545) | 1,040 | 53,976 |
Total Preferred Stocks (Cost $479,034) | 789,464 | |
| ||
Rights 0.0% | ||
Germany 0.0% | ||
Linde AG*, expiration 7/10/2006 (Cost $4,881) | 2,269 | 8,765 |
Greece 0.0% | ||
National Bank of Greece SA*, expiration 7/5/2006 (Cost $10,476) | 8,241 | 26,035 |
United Kingdom 0.0% | ||
Invensys PLC*, expiration 7/7/2006 (Cost $23,343) | 61,312 | 4,592 |
Total Rights (Cost $38,700) | 39,392 | |
| ||
Cash Equivalents 0.7% | ||
Cash Management QP Trust, 5.07% (c) (Cost $2,196,467) | 2,196,467 | 2,196,467 |
| % of Net Assets | Value ($) |
|
| |
Total Investment Portfolio (Cost $210,427,537)+ | 98.9 | 329,357,531 |
Other Assets and Liabilities, Net | 1.1 | 3,597,175 |
Net Assets | 100.0 | 332,954,706 |
* Non-income producing security.
+ The cost for federal income tax purposes was $216,934,669. At June 30, 2006, net unrealized appreciation for all securities based on tax cost was $112,422,862. This consisted of aggregate gross unrealized appreciation for all securities in which there was an excess of value over tax cost of $122,134,389 and aggregate gross unrealized depreciation for all securities in which there was an excess of tax cost over value of $9,711,527.
(a) Securities with the same description are the same corporate entity but trade on different stock exchanges.
(b) Affiliated issuer. This security is owned in proportion with its representation in the index.
(c) Cash Management QP Trust, an affiliated fund, is managed by Deutsche Investment Management Americas Inc. The rate shown is the annualized seven-day yield at period end.
ADR: American Depositary Receipt
REIT: Real Estate Investment Trust
SDR: Swedish Depositary Receipt
At June 30, 2006, open futures contracts purchased were as follows:
Futures | Expiration Date | Contracts | Aggregate Face Value ($) | Value ($) | Unrealized Appreciation ($) |
DJ Euro Stoxx 50 Index | 9/15/2006 | 50 | 2,211,734 | 2,341,941 | 130,207 |
FTSE 100 Index | 9/15/2006 | 8 | 841,525 | 861,728 | 20,203 |
Hang Seng Stock Index | 7/28/2006 | 2 | 204,074 | 210,100 | 6,026 |
SPI 200 Index | 9/21/2006 | 2 | 182,461 | 188,747 | 6,286 |
TOPIX Index | 9/7/2006 | 8 | 1,070,639 | 1,111,150 | 40,511 |
Total net unrealized appreciation on futures | 203,233 | ||||
At June 30, 2006, open forward foreign currency exchange contracts were as follows:
Contracts to Deliver |
| In Exchange For |
| Settlement Date | Unrealized Appreciation (US$) | ||
USD | 825,000 |
| EUR | 652,904 |
| 7/21/2006 | 11,404 |
USD | 615,000 |
| JPY | 70,447,451 |
| 7/21/2006 | 2,602 |
Total unrealized appreciation | 14,006 | ||||||
Contracts to Deliver |
| In Exchange For |
| Settlement Date | Unrealized Depreciation (US$) | ||
USD | 160,00 |
| HKD | 1,240,7190 |
| 7/21/2006 | (128) |
Total unrealized depreciation | (128) | ||||||
Currency Abbreviations |
EUR Euro HKD Hong Kong Dollar JPY Japanese Yen USD United States Dollar |
The accompanying notes are an integral part of the financial statements.
Statement of Assets and Liabilities as of June 30, 2006 (Unaudited) | |
Assets | |
Investments: Investments in securities, at value (cost $208,231,070) | $ 327,161,064 |
Investment in Cash Management QP Trust (cost $2,196,467) | 2,196,467 |
Total investments in securities, at value (cost $210,427,537) | 329,357,531 |
Cash | 10,000 |
Foreign currency, at value (cost $2,674,834)* | 2,710,785 |
Margin Deposit | 567,727 |
Receivable for investments sold | 16,376 |
Receivable for Fund shares sold | 705,601 |
Dividend receivable | 573,918 |
Interest receivable | 9,594 |
Unrealized appreciation on forward foreign currency exchange contracts | 14,006 |
Foreign taxes recoverable | 298,470 |
Other assets | 29,107 |
Total assets | 334,293,115 |
Liabilities | |
Payable for investments purchased | 31,667 |
Payable for daily variation margin on open futures contracts | 830,333 |
Payable for Fund shares redeemed | 289,499 |
Unrealized depreciation on forward foreign currency exchange contracts | 128 |
Accrued management fee | 39,067 |
Other accrued expenses and payables | 147,715 |
Total liabilities | 1,338,409 |
Net assets, at value | $ 332,954,706 |
* Includes foreign currency of $116,934 to cover margin requirements on foreign futures contracts.
The accompanying notes are an integral part of the financial statements.
Statement of Assets and Liabilities as of June 30, 2006 (Unaudited) (continued) | |
Net Assets | |
Net assets consist of: Undistributed net investment income | 2,783,893 |
Net unrealized appreciation (depreciation) on: Investments | 118,929,994 |
Futures | 203,233 |
Foreign currency related transactions | 288,641 |
Accumulated net realized gain (loss) | (43,859,724) |
Paid-in capital | 254,608,669 |
Net assets, at value | $ 332,954,706 |
Net Asset Value | |
Net Asset Value, offering and redemption price(a) per share ($332,954,706 ÷ 23,040,743 outstanding shares of beneficial interest, $.01 par value, unlimited number of shares authorized) | $ 14.45 |
(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, 2006(a) (Unaudited) | |
Investment Income | |
Income allocated from the DWS EAFE® Equity Index Portfolio: Dividends (net of foreign taxes withheld of $13,816) | $ 51,054 |
Interest — Cash Management QP Trust | 5,768 |
Expenses allocated from the Portfolio (b) | (47,187) |
Net investment income (loss) allocated from the DWS EAFE® Equity Index Portfolio | 9,635 |
Dividends (net of foreign taxes withheld of $537,558) | 5,734,967 |
Interest | 1,501 |
Interest — Cash Management QP Trust | 108,325 |
Total Income | 5,854,428 |
Expenses: Investment advisory fee | 363,398 |
Administrative service fee | 199,186 |
Administration fees | 26,319 |
Custodian fee | 107,405 |
Auditing | 29,975 |
Legal | 28,668 |
Trustees' fees and expenses | 4,826 |
Reports to shareholders | 38,878 |
Registration fees | 13,763 |
Services to shareholders | 5,933 |
Other | 41,508 |
Total expenses before expense reductions | 859,859 |
Expense reductions | (260,029) |
Total expenses after expense reductions | 599,830 |
Net investment income | 5,254,598 |
(a) On January 13, 2006, the DWS EAFE® Equity Index Portfolio, a master portfolio for a master-feeder structure, closed. The Statement of Operations includes the DWS EAFE® Equity Index Fund's information as a stand-alone and feeder fund for the respective periods (see Note A in the Notes to Financial Statements).
(b) For the period from January 1, 2006 through January 13, 2006, the Advisor of the DWS EAFE® Equity Index Portfolio waived/reimbursed fees in the amount of $31,099, all of which was allocated to the Fund.
The accompanying notes are an integral part of the financial statements.
Statement of Operations | |
Realized and Unrealized Gain (Loss) on Investment Transactions | |
Net realized gain (loss) allocated from the DWS EAFE® Equity Index Portfolio from: Investments | 1,634,237 |
Futures | 341,890 |
Foreign currency related transactions | (61) |
Net realized gain (loss) from: Investments | 1,005,072 |
Futures | (566,676) |
Foreign currency related transactions | 598,712 |
Net increase from payments by affiliates and net gains (losses) realized on the disposal of investments in violation of restrictions | — |
| 3,013,174 |
Net unrealized appreciation/depreciation during the period allocated from the DWS EAFE® Equity Index Portfolio on: Investments | 12,503,998 |
Futures | 59,371 |
Foreign currency related transactions | 145,917 |
Net unrealized appreciation (depreciation) during the period on: Investments | 8,154,926 |
Futures | (59,934) |
Foreign currency related transactions | 205,971 |
| 21,010,249 |
Net gain (loss) on investment transactions | 24,023,423 |
Net increase (decrease) in net assets resulting from operations | $ 29,278,021 |
(a) On January 13, 2006, the DWS EAFE® Equity Index Portfolio, a master portfolio for a master-feeder structure, closed. The Statement of Operations includes the DWS EAFE® Equity Index Fund's information as a stand-alone and feeder fund for the respective periods (see Note A in the Notes to Financial Statements).
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, 2006(a) (Unaudited) | Year Ended December 31, 2005 |
Operations: Net investment income (loss) | $ 5,254,598 | $ 7,014,629 |
Net realized gain (loss) on investment transactions | 3,013,174 | (446,012) |
Net unrealized appreciation (depreciation) during the period on investment transactions | 21,010,249 | 31,573,093 |
Net increase (decrease) in net assets resulting from operations | 29,278,021 | 38,141,710 |
Distributions to shareholders from: Net investment income | — | (7,653,718) |
Tax return of capital | — | (681,921) |
Fund share transactions: Proceeds from shares sold | 45,244,407 | 83,326,794 |
Reinvestment of distributions | — | 8,027,440 |
Cost of shares redeemed | (50,663,891) | (97,155,321) |
Redemption fees | 3,104 | 1,210 |
Net increase (decrease) in net assets from Fund share transactions | (5,416,380) | (5,799,877) |
Increase (decrease) in net assets | 23,861,641 | 24,006,194 |
Net assets at beginning of period | 309,093,065 | 285,086,871 |
Net assets at end of period (including undistributed net investment income and accumulated distributions in excess of net investment income of $2,783,893 and $2,470,705, respectively) | $ 332,954,706 | $ 309,093,065 |
(a) On January 13, 2006, the DWS EAFE® Equity Index Portfolio, a master portfolio for a master-feeder structure, closed. The Statement of Changes in Net Assets includes the DWS EAFE®Equity Index Fund's information as a stand-alone and feeder fund for the respective periods (See Note A in the Notes to Financial Statements).
The accompanying notes are an integral part of the financial statements.
Years Ended December 31, | 2006a | 2005 | 2004 | 2003 | 2002 | 2001 |
Selected Per Share Data | ||||||
Net asset value, beginning of period | $ 13.15 | $ 11.89 | $ 10.35 | $ 7.77 | $ 9.46 | $ 12.27 |
Income (loss) from investment operations: Net investment income (loss) | .23b | .29b | .33 | .17b | .16b | .19 |
Net realized and unrealized gain (loss) on investment transactions | 1.07 | 1.33 | 1.64 | 2.64 | (1.72) | (2.87) |
Total from investment operations | 1.30 | 1.62 | 1.97 | 2.81 | (1.56) | (2.68) |
Less distributions from: Net investment income | — | (.33) | (.43) | (.23) | (.13) | (.13) |
Tax return of capital | — | (.03) | — | — | — | — |
Total distributions | — | (.36) | (.43) | (.23) | (.13) | (.13) |
Redemption fees | .00*** | .00*** | — | — | — | — |
Net asset value, end of period | $ 14.45 | $ 13.15 | $ 11.89 | $ 10.35 | $ 7.77 | $ 9.46 |
Total Return (%)c | 9.89** | 13.57 | 19.42 | 36.45 | (16.63) | (21.75) |
Ratios to Average Net Assets and Supplemental Data | ||||||
Net assets, end of period ($ millions) | 333 | 309 | 285 | 231 | 137 | 140 |
Ratio of expenses before expense reductions, including expenses of the EAFE® Equity Index Portfolio (%) | .58* | .56 | .58 | .60 | .65 | .63 |
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) (%) | 3.31* | 2.35 | 1.98 | 1.99 | 1.83 | 1.68 |
Portfolio turnover rate | 15d* | 16 | 12 | 6 | 10 | 26 |
a For the six months ended June 30, 2006 (Unaudited). b Based on average shares outstanding during the period. c Total return would have been lower had certain expenses not been reduced. d On January 13, 2006, the DWS EAFE® Equity Index Portfolio was closed (see Note A in the Notes to Financial Statements). This ratio includes the purchases and sales of portfolio securities of the DWS EAFE® Equity Index Fund as a stand-alone fund in addition to the DWS EAFE® Equity Index Fund Portfolio. * Annualized. ** Not annualized. *** Amount is less than $.005. | ||||||
Notes to Financial Statements (Unaudited)
A. Significant Accounting Policies
DWS EAFE® Equity Index Fund (the "Fund") is a diversified series of the DWS 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.
On August 8, 2005, the Board of Trustees approved dissolving the DWS EAFE® Equity Index Fund master-feeder structure, and converting the Fund to a stand-alone fund. On January 13, 2006, the Fund received net assets with a value of $304,828,559 which included net unrealized appreciation of $111,146,337 from the DWS EAFE® Equity Index Portfolio (the "Portfolio") in a tax free exchange for its beneficial ownership in the Portfolio. Activity prior to this conversion is included in the 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. 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 QP Trust 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 Fund 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 Fund 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 Fund 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 Fund 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 Fund 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 Fund. When entering into a closing transaction, the Fund 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 Fund'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 Fund 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 Fund 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 Fund gives up the opportunity to profit from favorable exchange rate movements during the term of the contract.
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.
In July 2006, the Financial Accounting Standards Board (FASB) issued Interpretation No. 48, "Accounting for Uncertainty in Income Taxes — an interpretation of FASB Statement No. 109" (the "Interpretation"). The Interpretation establishes for the Fund a minimum threshold for financial statement recognition of the benefit of positions taken in filing tax returns (including whether the Fund is taxable in certain jurisdictions), and requires certain expanded tax disclosures. The Interpretation is effective for fiscal years beginning after December 15, 2006. Management will begin to evaluate the application of the Interpretation to the Fund and is not in a position at this time to estimate the significance of its impact, if any, on the Fund's financial statements.
At December 31, 2005, 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.
In addition, from November 1, 2005 through December 31, 2005, the Fund incurred approximately $261,000 of net currency losses. As permitted by tax regulations, the Fund intends to elect to defer these losses and treat them as arising in the fiscal year ended December 31, 2006.
Distribution of Income and Gains. Net investment income of the Fund, if any, is declared and distributed to shareholders 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, recognition of certain foreign currency gains (losses) as ordinary income (loss) 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 tax character of current year distributions will be determined at the end of the current fiscal year.
Redemption Fees. 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. Investment transactions are accounted for on a trade date plus one basis for daily net asset value calculations. However, for financial reporting purposes, investment security 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 Fund is informed of such dividends. Realized gains and losses from investment transactions are recorded on an identified cost basis.
B. Purchases and Sales of Securities
During the six months ended June 30, 2006, purchases and sales of investment securities (excluding short-term investments, including the purchases and sales of securities as a stand-alone fund and the DWS EAFE® Equity Index Portfolio) aggregated $32,224,309 and $23,392,961, respectively.
C. Related Parties
DWS Scudder 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"), an indirect, wholly owned subsidiary of Deutsche Bank AG, is the Advisor for the Fund.
Investment Advisory Agreement. Under the Investment Advisory Agreement, the Advisor directs the investments of the Fund 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 Fund. The advisory fee payable under the Investment Advisory Agreement is equal to an annual rate of 0.25% of the Fund'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.
For the period from January 1, 2006 through September 30, 2006, the Advisor has contractually agreed to waive all or a portion of its fee and reimburse or pay certain operating expenses of the Fund to the extent necessary to maintain the operating expenses at 0.40% of average daily net assets (excluding certain expenses such as extraordinary expenses, taxes, brokerage, interest, service fees, trustee and trustee counsel fees and organization and offering expenses).
For the period January 1, 2006 through January 13, 2006, the Investment Advisory Fee charged to the Portfolio was $34,380, of which $31,099 was waived, which was equivalent to an annualized effective rate of 0.02%.
For the period from January 14, 2006 through June 30, 2006, the Investment Advisory Fee charged to the Fund was $363,398, of which $229,153 was waived, which was equivalent to an annualized effective rate of 0.08%.
Administrator Service Fee. Prior to June 1, 2006, Investment Company Capital Corp. ("ICCC" or the "Administrator"), an indirect, wholly owned subsidiary of Deutsche Bank AG, was the Fund's Administrator. For its services as Administrator, ICCC received a fee (the "Administrative Service Fee") of 0.15% of the Fund's average daily net assets, computed and accrued daily and paid monthly.
For the period January 1, 2006 through May 31, 2006, the Administrative Service Fee charged to the Fund was $199,186, of which $19,426 was waived.
Effective June 1, 2006, the Administration Agreement with ICCC was terminated and the Fund entered into an Administrative Services Agreement with Deutsche Investment Management Americas Inc. ("DeIM"), an indirect, wholly owned subsidiary of Deutsche Bank AG, pursuant to which DeIM provides most administrative services to the Fund. For all services provided under the Administrative Services Agreement, the Fund pays DeIM an annual fee of 0.10% of the Fund's average daily net assets, computed and accrued daily and payable monthly. For the period June 1, 2006 through June 30, 2006, DeIM received an administration fee of $26,319, all of which is unpaid.
For the period January 1, 2006 through January 13, 2006, ICCC served as Administrator for the Portfolio and received a fee of 0.10% of the average daily net assets, computed and accrued daily and payable monthly. For the period January 1, 2006 through January 13, 2006, the Administrative Service Fee charged to the Portfolio was $13,752.
Service Provider Fees. DWS Scudder Investments Service Company ("DWS-SISC"), an affiliate of the Advisor, is the transfer agent, dividend-paying agent and shareholder service agent for the Fund. Pursuant to a sub-transfer agency agreement between DWS-SISC and DST Systems, Inc. ("DST"), DWS-SISC has delegated certain transfer agent and dividend paying agent functions to DST. DWS-SISC compensates DST out of the shareholder servicing fee it receives from the Fund. Prior to June 1, 2006, the fees were paid under the Administrative Service Agreement with ICCC. For the period from June 1, 2006, through June 30, 2006, the amount charged to the Fund by DWS-SISC for transfer agency services aggregated $5,790, all of which was waived.
Trustees' Fees and Expenses. As compensation for his or her services, each Independent Trustee receives an aggregated 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 Board and the Chairman of each committee of the Board receive additional compensation for their 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 DeIM, DeIM is compensated for providing typesetting and certain regulatory filing services to the Fund. For the six months ended June 30, 2006, the amount charged to the Fund by DeIM included in reports to shareholders aggregated $12,240, of which $9,720 is unpaid.
Cash Management QP Trust. Pursuant to an Exemptive Order issued by the SEC, the Fund may invest in the 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 its advisor a management fee for the affiliated funds' investments in the QP Trust.
D. Expense Reductions
For the six months ended June 30, 2006, the Advisor agreed to reimburse the Fund $5,631, which represents a portion of the fee savings expected to be realized by the Advisor related to the outsourcing by the Advisor of certain administrative services to an unaffiliated service provider.
In addition, the Fund has entered into an agreement with its custodian whereby credits realized as a result of uninvested cash balances are used to reduce a portion of the Fund's custodian expenses. During the six months ended June 30, 2006, the Fund's custodian fees were reduced by $29 for custodian credits earned.
E. Line of Credit
The Fund and several other affiliated funds (the "Participants") share in a $750 million revolving credit facility administered by JPMorgan Chase Bank, N.A. for temporary or emergency purposes, including the meeting of withdrawal 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 Fund may borrow up to a maximum of 33 percent of its net assets under the agreement.
F. Share Transactions
The following table summarizes share and dollar activity in the Fund:
| Six Months Ended June 30, 2006 | Year Ended December 31, 2005 | ||
| Shares | Dollars | Shares | Dollars |
Shares sold | 3,167,065 | $ 45,244,407 | 6,916,415 | $ 83,326,794 |
Shares issued to shareholders in reinvestment of distributions | — | $ — | 579,209 | $ 8,027,440 |
Shares redeemed | (3,630,644) | $ (50,663,891) | (7,959,691) | $ (97,155,321) |
Redemption Fees |
| $ 3,104 | $ 1,210 | |
Net increase (decrease) | (463,579) | $ (5,416,380) | (464,067) | $ (5,799,877) |
G. Regulatory Matters and Litigation
Market Timing Related Regulatory and Litigation Matters. 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 DWS Scudder. The DWS funds' advisors have been cooperating in connection with these inquiries and are in discussions with the regulators concerning proposed settlements. Publicity about mutual fund practices arising from these industry-wide inquiries serves as the general basis of a number of private lawsuits against the DWS 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 DWS funds, the funds' investment advisors and their affiliates, and certain individuals, including in some cases fund Trustees/Directors, officers, and other parties. Each DWS fund's investment advisor has agreed to indemnify the applicable DWS 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. It is not possible to determine with certainty what the outcome of these inquiries will be or what the effect, if any, would be on the funds or their advisors.
With respect to the lawsuits, 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 DWS fund is remote and such actions are not likely to materially affect their ability to perform under their investment management agreements with the DWS funds.
With respect to the regulatory matters, Deutsche Asset Management ("DeAM") has advised the funds as follows:
DeAM expects to reach final agreements with regulators in 2006 regarding allegations of improper trading in the DWS funds. DeAM expects that it will reach settlement agreements with the Securities and Exchange Commission, the New York Attorney General and the Illinois Secretary of State providing for payment of disgorgement, penalties, and investor education contributions totaling approximately $134 million. Approximately $127 million of this amount would be distributed to shareholders of the affected DWS funds in accordance with a distribution plan to be developed by an independent distribution consultant. DeAM does not believe that any of the DWS funds will be named as respondents or defendants in any proceedings. The funds' investment advisors do not believe these amounts will have a material adverse financial impact on them or materially affect their ability to perform under their investment management agreements with the DWS funds. The above-described amounts are not material to Deutsche Bank, and they have already been reserved.
Based on the settlement discussions thus far, DeAM believes that it will be able to reach a settlement with the regulators on a basis that is generally consistent with settlements reached by other advisors, taking into account the particular facts and circumstances of market timing at DeAM and at the legacy Scudder and Kemper organizations prior to their acquisition by DeAM in April 2002. Among the terms of the expected settled orders, DeAM would be subject to certain undertakings regarding the conduct of its business in the future, including maintaining existing management fee reductions for certain funds for a period of five years. DeAM expects that these settlements would resolve regulatory allegations that it violated certain provisions of federal and state securities laws (i) by entering into trading arrangements that permitted certain investors to engage in market timing in certain DWS funds and (ii) by failing more generally to take adequate measures to prevent market timing in the DWS funds, primarily during the 1999-2001 period. With respect to the trading arrangements, DeAM expects that the settlement documents will include allegations related to one legacy DeAM arrangement, as well as three legacy Scudder and six legacy Kemper arrangements. All of these trading arrangements originated in businesses that existed prior to the current DeAM organization, which came together in April 2002 as a result of the various mergers of the legacy Scudder, Kemper and Deutsche fund groups, and all of the arrangements were terminated prior to the start of the regulatory investigations that began in the summer of 2003. No current DeAM employee approved the trading arrangements.
There is no certainty that the final settlement documents will contain the foregoing terms and conditions. The independent Trustees/Directors of the DWS funds have carefully monitored these regulatory investigations with the assistance of independent legal counsel and independent economic consultants.
Other Regulatory Matters. DeAM is also engaged in settlement discussions with the Enforcement Staffs of the SEC and the NASD regarding DeAM's practices during 2001-2003 with respect to directing brokerage commissions for portfolio transactions by certain DWS funds to broker-dealers that sold shares in the DWS funds and provided enhanced marketing and distribution for shares in the DWS funds. In addition, DWS Scudder Distributors, Inc. is in settlement discussions with the Enforcement Staff of the NASD regarding DWS Scudder Distributors' payment of non-cash compensation to associated persons of NASD member firms, as well as DWS Scudder Distributors' procedures regarding non-cash compensation regarding entertainment provided to such associated persons.
H. 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, 2006 there were two unaffiliated shareholders who held 45%,and 10%, respectively, and one affiliated shareholder who held 15% of the outstanding shares of the Fund.
I. Payments made by Affiliates
During the six month period ended June 30, 2006, the Advisor fully reimbursed the Fund $106,719 for losses incurred in violation of the Fund's investment restrictions. The amount of the loss was less than $.01 per share, thus having no impact on the Fund's total return.
J. Subsequent Event
On July 10, 2006, DWS EAFE® Equity Index Fund became a series of DWS Institutional Funds, an open-end investment management company. Prior to July 10, 2006, DWS EAFE® Equity Index Fund was a series of DWS Advisor Funds II, an open-end investment management company.
Additional information announced by Deutsche Asset Management regarding the terms of the expected settlements referred to in the Market Timing Related Regulatory and Litigation Matters and Other Regulatory Matters in the Notes to Financial Statements will be made available at www.dws-scudder.com/regulatory_settlements, which will also disclose the terms of any final settlement agreements once they are announced.
A Special Meeting of shareholders (the "Meeting") of DWS EAFE® Equity Index Fund (the "Fund") was held on May 5, 2006, at the offices of Deutsche Asset Management, 345 Park Avenue, New York, New York 10154. At the Meeting, the following matters were voted upon by the shareholders (the resulting votes are presented below).
I. Election of Trustees. ("Number of Votes" represents all Funds that are series of DWS Advisor Funds II.)
| Number of Votes: | |
| For | Withheld |
Henry P. Becton, Jr. | 24,443,160.842 | 314,924.000 |
Dawn-Marie Driscoll | 24,442,894.842 | 315,190.000 |
Keith R. Fox | 24,443,320.842 | 314,764.000 |
Kenneth C. Froewiss | 24,443,320.842 | 314,764.000 |
Martin J. Gruber | 24,443,320.842 | 314,764.000 |
Richard J. Herring | 24,443,320.842 | 314,764.000 |
Graham E. Jones | 24,443,320.842 | 314,764.000 |
Rebecca W. Rimel | 24,442,894.842 | 315,190.000 |
Philip Saunders, Jr. | 24,443,160.842 | 314,924.000 |
William N. Searcy, Jr. | 24,443,160.842 | 314,924.000 |
Jean Gleason Stromberg | 24,442,894.842 | 315,190.000 |
Carl W. Vogt | 24,443,320.842 | 314,764.000 |
Axel Schwarzer | 24,443,160.842 | 314,924.000 |
II-A. Approval of an Amended and Restated Investment Management Agreement with the Fund's Current Investment Advisor.
Number of Votes: | |||
For | Against | Abstain | Broker Non-Votes* |
10,565,213.743 | 28,163.024 | 92,654.000 | 4,702,445.000 |
II-B. Approval of an Amended and Restated Investment Management Agreement with Deutsche Investment Management Americas Inc.
Number of Votes: | |||
For | Against | Abstain | Broker Non-Votes* |
10,561,221.767 | 29,082.000 | 95,727.000 | 4,702,445.000 |
III. Approval of revised fundamental investment restrictions on:
III-A. Borrowing Money
Number of Votes: | |||
For | Against | Abstain | Broker Non-Votes* |
10,629,938.767 | 45,842.000 | 10,250.000 | 4,702,445.000 |
III-B. Pledging Assets
Number of Votes: | |||
For | Against | Abstain | Broker Non-Votes* |
10,620,116.767 | 55,664.000 | 10,250.000 | 4,702,445.000 |
III-C. Senior Securities
Number of Votes: | |||
For | Against | Abstain | Broker Non-Votes* |
10,628,653.767 | 47,127.000 | 10,250.000 | 4,702,445.000 |
III-D. Concentration
Number of Votes: | |||
For | Against | Abstain | Broker Non-Votes* |
10,628,653.767 | 47,127.000 | 10,250.000 | 4,702,445.000 |
III-E. Underwriting of Securities
Number of Votes: | |||
For | Against | Abstain | Broker Non-Votes* |
10,628,653.767 | 47,127.000 | 10,250.000 | 4,702,445.000 |
III-F. Real Estate Investments
Number of Votes: | |||
For | Against | Abstain | Broker Non-Votes* |
10,628,653.767 | 47,127.000 | 10,250.000 | 4,702,445.000 |
III-G. Commodities
Number of Votes: | |||
For | Against | Abstain | Broker Non-Votes* |
10,620,116.767 | 55,664.000 | 10,250.000 | 4,702,445.000 |
III-H. Lending
Number of Votes: | |||
For | Against | Abstain | Broker Non-Votes* |
10,619,209.536 | 56,571.231 | 10,250.000 | 4,702,445.000 |
III-I. Portfolio Diversification for Diversified Funds
Number of Votes: | |||
For | Against | Abstain | Broker Non-Votes* |
10,628,653.767 | 47,127.000 | 10,250.000 | 4,702,445.000 |
III-U. Oil, Gas and Mineral Programs
Number of Votes: | |||
For | Against | Abstain | Broker Non-Votes* |
10,628,653.767 | 47,127.000 | 10,250.000 | 4,702,445.000 |
V. Approval of Amended and Restated Agreement and Declaration of Trust. ("Number of Votes" represents all Funds that are series of DWS Advisor Funds II.)
Number of Votes: | |||
For | Against | Abstain | Broker Non-Votes* |
18,337,453.842 | 74,369.000 | 97,082.000 | 6,249,180.000 |
IX. Approval of Reorganization into Another Trust
Number of Votes: | |||
For | Against | Abstain | Broker Non-Votes* |
10,580,244.767 | 22,686.000 | 83,100.000 | 4,702,445.000 |
The Meeting was reconvened on June 1, 2006, at which time the following matter was voted upon by the shareholders (the resulting votes are presented below):
II-C. Approval of a Subadvisor Approval Policy.
Number of Votes: | |||
For | Against | Abstain | Broker Non-Votes* |
10,441,805.233 | 499,072.000 | 91,889.000 | 4,548,136.000 |
* Broker non-votes are proxies received by the Fund from brokers or nominees when the broker or nominee neither has received instructions from the beneficial owner or other persons entitled to vote nor has discretionary power to vote on a particular matter.
| |
Automated Information Lines | InvestorACCESS (800) 621-1048 Personalized account information, information on other DWS funds and services via touchtone telephone. |
Web Site | www.dws-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 DWS funds, subscription to fund updates by e-mail, retirement planning information, and more. |
For More Information | (800) 621-1048 To speak with a DWS Scudder service representative. |
Written Correspondence | DWS Scudder PO Box 219356 |
Proxy Voting | A description of the fund's policies and procedures for voting proxies for portfolio securities and information about how the fund voted proxies related to its portfolio securities during the 12-month period ended June 30 is available on our Web site — www.dws-scudder.com (click on "proxy voting"at the bottom of the page) — 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 1-800-621-1048. |
Principal Underwriter | If you have questions, comments or complaints, contact: DWS Scudder Distributors, Inc. 222 South Riverside Plaza (800) 621-1148 |
| Institutional Class |
Nasdaq Symbol | BTAEX |
CUSIP Number | 23339C 768 |
Fund Number | 558 |
This privacy statement is issued by DWS Scudder Distributors, Inc., Deutsche Investment Management Americas Inc., Deutsche Asset Management, Inc., Investment Company Capital Corporation, DeAM Investor Services, Inc., DWS Trust Company and the DWS 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 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:
DWS Scudder
Attention: Correspondence — Chicago
P.O. Box 219415
Kansas City, MO 64121-9415
February 2006
Notes
Notes
Notes
Notes
Notes
| 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 Committee on Independent Trustees/Directors selects and nominates Independent Trustees/Directors. Fund shareholders may also submit nominees that will be considered by the committee when a Board vacancy occurs. Submissions should be mailed to: c/o Dawn-Marie Driscoll, PO Box 100176, Cape Coral, FL 33910.
| 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-CSRS 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: | DWS EAFE Equity Index Fund, a series of DWS Advisor Funds II |
By: | /s/Michael G. Clark | |
| Michael G. Clark |
|
President
Date: | August 28, 2006 |
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: | DWS EAFE Equity Index Fund, a series of DWS Advisor Funds II |
By: | /s/Michael G. Clark | |
| Michael G. Clark |
|
President
Date: | August 28, 2006 |
By: | /s/Paul Schubert | |
| Paul Schubert |
|
Chief Financial Officer and Treasurer
Date: | August 28, 2006 |