U.S. SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-14
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933
Pre-Effective Amendment No. _______________
Post-Effective Amendment No. _______________
(Check appropriate box or boxes)
Exact Name of Registrant as Specified in Charter:
Area Code and Telephone Number:
Principal Investors Fund, Inc. (800) 247-4123
Address of Principal Executive Offices: (Number, Street, City, State, Zip Code)
711 High Street, Des Moines, Iowa 50392
Name and Address of Agent for Service:
With a copy to:
Michael D. Roughton John W. Blouch
Counsel Jones & Blouch L.L.P.
Principal Investors Fund, Inc. 1025 Thomas Jefferson Street, N.W.
711 High Street Suite 405 West
Des Moines, Iowa 50392 Washington, D.C. 20007
Approximate Date of Proposed Public Offering: As soon as practicable after the
effective date of this Registration Statement.
______________________________________________________
Title of Securities Being Registered:
Advisors Preferred Class, Advisors Select Class, Preferred Class,
Select Class, Institutional Class and Class J Common
Stock,
par value $.01 per share.
______________________________________________________
No filing fee is required because of reliance on Section 24(f) under the
Investment Company Act of 1940, as amended.
It is proposed that this filing will become effective on October 10, 2002,
pursuant to Rule 488.
______________________________________________________
PRINCIPAL INVESTORS FUND, INC.
CROSS REFERENCE SHEET
PURSUANT TO RULE 481(a) UNDER THE SECURITIES ACT OF 1933
FORM N-14 INFORMATION STATEMENT AND
ITEM NO. PROSPECTUS CAPTION
PART A
Item 1. ......................................
Beginning of Registration Statement and Outside
Front Cover Page of Prospectus .........Cross Reference Sheet; Cover Page
Item 2.......................................
Beginning and Outside Back Cover Page of Prospectus Table of Contents
Item 3.......................................
Fee Table, Synopsis Information and Risk Factors
Summary; Principal Risk Factors
Item 4.......................................Information about the Transaction
The Plan
Item 5.
Information about the Registrant
Incorporation of Documents by
Reference in the Prospectus
Item 6.
Information about the Company Being
Acquired
Incorporation of Documents by
Reference in the Prospectus
Item 7.......................................Voting Information
Introduction and Voting Information
Item 8.......................................
Interest of Certain Persons and Experts Not Applicable
Item 9. ......................................
Additional Information Required for Reoffering
by Persons Deemed to be Underwriters ...Not Applicable
PART B
Item 10......................................Cover Page
Cover Page of Statement of
Additional Information
Item 11......................................Table of Contents
Table of Contents of Statement of
Additional Information
Item 12.
Additional Information about the
Registrant
Statement of Additional Information
of Principal Investors Fund, Inc.
dated May 1, 2002.
Item 14......................................Financial Statements
Financial Statements as noted in
the Statement of Additional
Information
PART C
Item 15......................................Indemnification
Indemnification
Item 16......................................Exhibits Exhibits
Item 17......................................Undertakings Undertakings
October 10, 2002
Dear Shareholder:
The Board of Directors of Principal Investors Fund, Inc. has called a special
meeting of the shareholders of two series of the Fund, the European Fund and the
Pacific Basin Fund, for October 28, 2002 to vote on a Plan of Acquisition for
each series which provides for the combination of Pacific Basin Fund and the
European Fund with another series of the Fund, the International Fund I. If the
Plan is approved by shareholders and implemented, shareholders of the Pacific
Basin Fund and European Fund (the "Acquired Funds") will cease to own shares of
the Acquired Funds and will become the owner of shares of the same class of the
International Fund I equal in value to the shares of the Acquired Fund. The
Board believes that the proposed change is in the best interest of each series
of the Fund and its shareholders.
The Acquired Funds and the International Fund I are growth-oriented funds which
invest primarily in common stocks of foreign companies and seek long-term growth
of capital. The principal difference between the Acquired Funds and the
International Fund is the investment strategy of each series. The Acquired Funds
invest primarily in companies located in specific geographic regions. The
International Fund I may invest in companies domiciled in any of the nations of
the world; it is not required to invest in companies located in a specific
geographic region.
It is important that you take time to read the prospectus/information statement.
If you have questions regarding the prospectus/information statement or your
account, please call our shareholder services department toll-free at
1-800-247-4123.
Sincerely,
LOGO
LOGO
/s/Ralph C. Eucher
Ralph C. Eucher
President
Principal Investors Fund, Inc.
NOTICE OF
SPECIAL MEETING OF SHAREHOLDERS
TO BE HELD ON OCTOBER 28, 2002
___________
To the Shareholders:
Notice is hereby given that a special meeting of the shareholders of the Pacific
Basin Fund and the European European Fund, each a series of Principal Investors
Fund, Inc., will be held at 2:00 p.m. C.S.T., on October 28, 2002, at the
offices of Principal Management Corporation, 680 8th Street, Des Moines, Iowa
50392-0200. The meeting is being held to consider and vote on the following
matter as well as any other business that may properly come before the meeting
or any adjournment thereof:
1. Approval of a Plan of Acquisition and the transactions
contemplated thereby, pursuant to which the International Fund I,
a series of Principal Investors Fund, Inc., will acquire all the
assets and assume all the liabilities of the European Fund and
the Pacific Basin Fund (together the "Acquired Funds") and issue
in exchange shares of its Preferred Class, Advisors Preferred
Class, Select Class, Advisors Select Class, Institutional Class,
and Class J common stock, and each Acquired Fund will distribute
those shares to its Preferred Class, Advisors Preferred Class,
Select Class, Advisors Select Class, Institutional Class, and
Class J shareholders in redemption of all its outstanding shares
and then dissolve.
You are entitled to notice of and to vote at the meeting, and any adjournment,
if you owned shares of the European Fund or Pacific Basin Fund at the close of
business on September 16, 2002, the record date for the meeting.
Please read the attached prospectus/information statement.
LOGO
/s/A. S. Filean
For the Board of Directors
Arthur S. Filean
Senior Vice President and Secretary
October 10, 2002
PRINCIPAL INVESTORS FUND, INC.
INTERNATIONAL FUND I SERIES
EUROPEAN FUND SERIES
PACIFIC BASIN FUND SERIES
PROSPECTUS/INFORMATION STATEMENT
This prospectus/information statement is being furnished in connection with a
special meeting of the shareholders of the European Fund and Pacific Basin Fund,
each a series of Principal Investors Fund, Inc. ("Investors Fund") to be held at
2:00 p.m. C.S.T., on October 28, 2002, at the offices of Principal Management
Corporation, 680 8th Street, Des Moines, Iowa 50392-0200.
At the meeting, shareholders of the European Fund and the Pacific Basin Fund
(each referred to as the "Acquired Fund") will vote on a Plan of Acquisition
("Plan"). Under each Plan, if approved, the International Fund I (the
"International Fund"), another series of the Investors Fund, will acquire all
the assets and assume all the liabilities of each Acquired Fund and issue in
exchange shares of its Preferred Class, Advisors Preferred Class, Select Class,
Advisors Select Class, Institutional Class, and Class J common stock. Each
Acquired Fund will immediately redeem all its outstanding Preferred Class,
Advisors Preferred Class, Select Class, Advisors Select Class, Institutional
Class, and Class J shares by distributing the International Fund shares of the
same classes to its shareholders. As a result, a shareholder of an Acquired Fund
will have the same amount invested in the same share class of the International
Fund that each has invested in those share classes of the Acquired Funds at the
effective time. The manager of the Investors Fund, Principal Management
Corporation, has agreed to pay all expenses incurred by the Acquired Funds in
connection with each Plan.
The Acquired Funds and the International Fund are each a series of the Investors
Fund, which is a Maryland corporation organized by Principal Life Insurance
Company ("Principal Life") and registered as an open-end, management investment
company under the Investment Company Act of 1940 (the "Investment Company Act").
The primary investment objective of each Acquired Fund and the International
Fund is to seek long-term growth of capital. Both Acquired Funds pursue the
investment objective by investing at least 80% of their assets in common stocks
of companies located in specific geographic regions while the International Fund
is not required to invest a percentage of its assets in companies located in a
specific geographic region.
This prospectus/information statement sets forth concisely the information you
should know before voting on the proposed Plan. You should retain it for future
reference.
The prospectuses and Statements of Additional Information for the International
Fund and each of the Acquired Funds dated May 1, 2002 have been filed with the
Securities and Exchange Commission ("SEC") and are available without charge by
writing to the Investors Fund or its manager at their principal executive
offices, 680 8th Street, Des Moines, Iowa 50392-0200 or by telephoning toll-free
1-800-247-4123. The prospectuses of the International Fund and each Acquired
Fund dated May 1, 2002 and the Statement of Additional Information dated October
10, 2002 relating to this prospectus/information statement are incorporated
herein by reference. A copy of the International Fund's prospectus accompanies
this prospectus/information statement.
_____________________
THE SEC HAS NOT APPROVED OR DISAPPROVED OF THESE SECURITIES OR PASSED UPON THE
ADEQUACY OF THIS PROSPECTUS/INFORMATION STATEMENT. ANY REPRESENTATION TO THE
CONTRARY IS A CRIMINAL OFFENSE.
_____________________
The date of this prospectus/information
statement is October 10, 2002
PROSPECTUS/INFORMATION STATEMENT
TABLE OF CONTENTS
INTRODUCTION AND VOTING INFORMATION................................... 5
Special Meeting; Voting............................................. 5
Additional Information.............................................. 5
SUMMARY .............................................................. 7
The Plan............................................................ 7
Reasons for the Plan................................................ 7
Investment Objectives and Policies.................................. 8
Fees and Expenses of the Series..................................... 9
Purchases........................................................... 13
Exchanges........................................................... 13
Redemption Procedures and Fees...................................... 13
Dividends and Distributions......................................... 13
Federal Income Tax Consequences of the Proposed Combination......... 14
Costs and Expenses.................................................. 14
Continuation of Shareholder Accounts................................ 14
PRINCIPAL RISK FACTORS................................................
14
THE PLAN..............................................................
14
Plan of Acquisition................................................. 14
Description of Securities to Be Issued.............................. 15
Reasons for the Proposed Combination................................ 15
Federal Income Tax Consequences..................................... 16
Capitalization...................................................... 16
MANAGEMENT'S DISCUSSION OF SERIES PERFORMANCE.........................
17
COMPARISON OF INVESTMENT OBJECTIVES, POLICIES AND RESTRICTIONS........
18
ADDITIONAL INFORMATION ABOUT THE SERIES...............................
21
PROPOSALS OF SHAREHOLDERS.............................................
22
OTHER BUSINESS........................................................
22
APPENDIX A: FORM OF PLAN OF ACQUISITION - EUROPEAN FUND...............
23
APPENDIX B: FORM OF PLAN OF ACQUISITION - PACIFIC BASIN FUND..........
25
INTRODUCTION AND VOTING INFORMATION
SPECIAL MEETING; VOTING
- -----------------------
We are furnishing this prospectus/information statement to you as a shareholder
of either the European Fund or Pacific Basin Fund (each an "Acquired Fund"),
each of which is a series of Principal Investors Fund, Inc., in connection with
a special meeting of the shareholders of each Acquired Fund to be held on
October 28, 2002. The purpose of the meeting is to vote on a Plan of Acquisition
for each Acquired Fund. A copy of each Plan of Acquisition is included as
Appendix A and B. Each Plan is identical, with the exception of the Acquired
Fund's name. Each Plan provides for the combination of the Acquired Fund with
the International Fund ("International Fund") which is also a series of
Principal Investors Fund, Inc., as more fully described below. The
prospectus/information statement is first being furnished to shareholders on or
about October 11, 2002.
THE BOARD OF DIRECTORS OF THE INVESTORS FUND HAS APPROVED THE PLAN AND
RECOMMENDS THAT THE SHAREHOLDERS OF EACH ACQUIRED FUND VOTE FOR THE PLAN AND THE
TRANSACTIONS WHICH IT CONTEMPLATES.
Shareholders of record of each Acquired Fund at the close of business on
September 16, 2002, the record date, are entitled to vote at the meeting. As of
the record date, the European Fund and Pacific Basin Fund had the following
shares outstanding and entitled to be voted.
OUTSTANDING OUTSTANDING
EUROPEAN FUND PACIFIC BASIN FUND
SHARE CLASS SHARES SHARES
----------- ------------- ------------------
Advisors Preferred
Advisors Select
Preferred
Select
Institutional
Class J
Shareholders of each Acquired Fund are entitled to one vote for each share of
each Class held at their respective meeting. The meetings of both Acquired Funds
will be held contemporaneously. A quorum for each Acquired Fund must be present
at the meeting for the transaction of business for the Acquired Fund. The
holders of record of one-third of the shares outstanding at the close of
business on the record date present at the meeting will constitute a quorum for
the meeting. The approval of the Plan by an Acquired Fund requires the
affirmative vote of a majority of all the votes entitled to be cast by
shareholders of that Acquired Fund. Abstentions and broker non-votes (votes from
brokers or nominees indicating that they have not received instructions from the
beneficial owners on an item for which the broker or nominee does not have
discretionary power) are counted toward a quorum but do not represent votes cast
for the Plan or any other issue. If the shareholders of an Acquired Fund do not
approve the Plan, the Board will consider possible alternative arrangements, and
Principal Management Corporation will continue to manage the Acquired Fund.
Proxies of the shareholders of the Acquired Funds are not being solicited
because Principal Life Insurance Company owned a majority of the outstanding
shares of each Acquired Fund as of the record date, and is expected to be
present at the meeting and to vote in favor of the proposal to approve each
Plan.
ADDITIONAL INFORMATION
- ----------------------
On September 16, 2002, the directors and officers of the Investors Fund together
owned less than 1% of each of the Acquired Fund's and the International Fund's
outstanding shares. Principal Life, Des Moines, Iowa, 50392-0200, an Iowa life
insurance company and the parent of the manager of the Funds, owned of record
and beneficially, either directly or through subsidiaries, _____% of the
outstanding shares of the International Fund. The table below shows the
percentage of the outstanding shares of each Class of each Acquired Fund owned
by Principal Life on September 16, 2002 and based on those holdings, its
percentage of ownership at the effective time:
PRINCIPAL LIFE'S PRINCIPAL LIFE'S PRINCIPAL LIFE'S
EUROPEAN FUND PACIFIC BASIN FUND INTERNATIONAL FUND
PERCENTAGE OWNERSHIP PERCENTAGE OWNERSHIP PERCENTAGE OWNERSHIP
SHARE CLASS ON SEPTEMBER 16, 2002 ON SEPTEMBER 16, 2002 AT THE EFFECTIVE TIME
----------- --------------------- --------------------- -----------------------
Advisors Preferred
Advisors Select
Preferred
Select
Institutional
Class J
The ultimate parent of Principal Life is Principal Financial Group, Inc. The
Investors Fund does not know of any other person who owned at the record date,
or will own at the effective time, of record or beneficially 5% or more of the
outstanding shares of any of the Series.
SUMMARY
The following is a summary of certain information contained or incorporated by
reference in this prospectus/information statement. It is qualified in its
entirety by the more detailed information appearing elsewhere or incorporated by
reference in this prospectus/information statement.
THE PLAN
- --------
You are being asked to approve the Plan, which provides for the combination of
the European Fund and Pacific Basin Fund (each the "Acquired Fund") with the
International Fund I ("International Fund"). The European fund, Pacific Basin
Fund and International Fund are each a series of Principal Investors Fund, Inc.
("Investors Fund"). Under each Plan, at the effective time on the closing date,
the International Fund will acquire all the assets and assume all the
liabilities of the Acquired Fund and issue to the Acquired Fund shares of its
Preferred Class, Advisors Preferred Class, Select Class, Advisors Select Class,
Institutional Class and Class J common stock having a value equal to the net
assets acquired attributable to each share class. Immediately thereafter, the
Acquired Fund will distribute all the International Fund shares it receives to
its shareholders who own the same class of the Acquired Fund and thereby redeem
all its outstanding shares. Each Acquired Fund shareholder will receive
International Fund shares equal in value to the shares of the same class of the
Acquired Fund held by the shareholder at the effective time. If the Plan is
approved, the effective time will be 3:00 p.m. C.S.T. on October 29, 2002.
REASONS FOR THE PLAN
- --------------------
The catalyst for each Plan is the Principal Financial Group's recent
announcement that it has reached a definitive agreement to sell significant
portions of BT Financial Group businesses, including, the sub-advisor operations
for each Acquired Fund. As a result of this sale, Principal Capital Global
Investors Limited ("PCGIL") will not provide investment advisory services to the
Acquired Funds after October 31, 2002. Both of the Acquired Funds have
relatively small amounts of assets and have experienced limited sales of shares.
The likelihood that the Acquired Funds will achieve significant asset levels in
the foreseeable future is low. The Board for each Acquired Fund considered these
and other factors, and determined that the proposed Plan would be in the best
interests of each Acquired Fund and its shareholders, that the terms of each
Plan are fair and reasonable and that the interests of the shareholders of each
Acquired Fund will not be diluted as a result of the transactions contemplated
by the Plan. The Board believes that each Plan will provide shareholders of each
Acquired Fund with an investment in a larger growth-oriented, international fund
with a more favorable expense ratio than either Acquired Fund. The table below
reflects the investment performance of each of the Acquired Funds and the
International Fund for the periods ended August 31, 2002.
TOTAL RETURN WITH MAXIMUM SALES CHARGE*
----------------------------------------------------------------------------------------------------------
ADVISORS ADVISORS
PREFERRED PREFERRED SELECT SELECT
SERIES CLASS CLASS CLASS CLASS
------ ---------------------------------------- ---------------- -------------------- --------------------
SINCE SINCE SINCE SINCE
1-YR. INCEPTION** 1-YR. INCEPTION** 1-YR. INCEPTION** 1-YR. INCEPTION**
----- ----------- ----- ----------- ----- ----------- ----- -----------
International Fund -15.01% -19.43% -15.53% -19.78% -15.35% -19.62% -15.79% -19.98%
European Fund -16.07% -19.03% -16.37% -19.30% -16.17% -19.08% -16.54% -19.45%
Pacific Basin Fund -13.00% -23.15% -13.30% -23.36% -12.99% -23.20% -13.47% -23.51%
TOTAL RETURN WITH MAXIMUM SALES CHARGE*
-------------------------------------------
INSTITUTIONAL
SERIES CLASS
------ -------------------------------------------
1-YR.
-----
International Fund -15.05%
European Fund -15.78%
Pacific Basin Fund -12.83%
*No front-end or back-end sales charge applies to any of the share classes, except Class J shares. A contingent deferred sales
charge of 1.00% is charged on redemptions of Class J shares within 18 months of their purchase.
**Inception Date of December 6, 2000.
***Inception Date of March 1, 2001.
SERIES CLASS J
------ -------------------
SINCE 1-YR. SINCE
INCEPTION** ----- INCEPTION***
----------- ------------
International Fund -18.64% -16.68% -19.87%
European Fund -18.42% -17.11% -19.47%
Pacific Basin Fund -17.31% -14.36% -18.50%
*No front-end or back-end sales charge applies to any of the share classes, except Class J shares. A contingent deferred sales
charge of 1.00% is charged on redemptions of Class J shares within 18 months of their purchase.
**Inception Date of December 6, 2000.
***Inception Date of March 1, 2001.
SERIES
------
International Fund
European Fund
Pacific Basin Fund
*No front-end or back-end sales charge applies to any of the share classes, except Class J shares. A contingent deferred sales
charge of 1.00% is charged on redemptions of Class J shares within 18 months of their purchase.
**Inception Date of December 6, 2000.
***Inception Date of March 1, 2001.
INVESTMENT OBJECTIVES AND POLICIES
- ----------------------------------
The primary investment objective of the International Fund and each Acquired
Fund is to seek long-term growth of capital. Each series invests primarily in
equity securities of non-U.S. companies, but each Acquired Fund invests at least
80% of its assets in companies located in specific geographic regions. The
International Fund is not required to invest in companies located in a specific
region. Thus, while the risks of investing in international stock funds in
general are similar for each series, each has different risks due to the extent
to which each is geographically diversified.
INVESTMENT ADVISORY SERVICES
- ----------------------------
Principal Management Corporation ("the Manager") serves as investment advisor to
the Investors Fund. The Manager has entered into a sub-advisory agreement with
Invista Capital Management, LLC ("Invista") to provide investment advisory
services to the International Fund. Invista is an indirect wholly-owned
subsidiary of Principal Life and an affiliate of the Manager. The Manager has
entered into sub-advisory agreements with PCGIL to provide investment advisory
services to each Acquired Fund. PCGIL is also an affiliate of the Manager.
The Manager pays Invista a smaller percentage of the fee it receives from the
International Fund compared to the percentage it pays to PCGIL from fees it
receives from each Acquired Fund. The Manager also currently waives a portion of
the management fee, or pays expenses of, the Class J shares of each of the
series. If each Plan is approved, the combined assets of the series will
continue to be sub-advised by a sub-advisor affiliated with the Manager, the
Manager will retain a larger portion of the advisory fees it will receive with
respect to the assets formerly owned by each Acquired Fund, and the overall
amount of the management fee waiver or expense reimbursement for Class J shares
by the Manager will be reduced.
FEES AND EXPENSES OF THE SERIES
- -------------------------------
This table describes the fees and expenses that you may pay if you buy and hold
shares of any of the series.
SHAREHOLDER FEES
(FEES PAID DIRECTLY FROM YOUR INVESTMENT)
ADVISORS ADVISORS
PREFERRED PREFERRED SELECT SELECT INSTITUTIONAL
CLASS CLASS CLASS CLASS CLASS CLASS J
--------- --------- ------ -------- ------------- ------------
Maximum sales charge imposed on purchases
(as a % of offering price) None None None None None None
Maximum Contingent Deferred Sales Charge
("CDSC") (as a % of dollars subject to
charge) None None None None None 1.00/(1)/
Redemption or Exchange Fee None None None None None 1.00/(2)/
// // / / /
///(1)/A contingent deferred sales charge of 1% applies on certain redemptions of shares made within 18 months after they are
purchased.//
///(2)/
Redemption fees or exchange fees are charged on redemptions or exchanges of $50,000 or more of shares redeemed within 30 days
after they are purchased.
ONE-TIME FEES
. Class J shares have no initial sales charge but may be subject to a
CDSC. If you sell (redeem) shares and the CDSC is imposed, it will
reduce the amount of sales proceeds.
. A redemption fee or exchange fee of 1.00% is charged on redemptions or
exchanges of Class J shares of $50,000 or more if the shares were
purchased within 30 days of the redemption or exchange. The fee is
calculated as a percentage of market value at the time the shares are
redeemed or exchanged.
The operating expenses attributable to each share class of the series (as a
percentage of the average daily net assets) for the fiscal year ended October
31, 2001 were as follows:
EUROPEAN FUND
---------------------------------------------------------------------
ADVISORS ADVISORS
PREFERRED PREFERRED SELECT INSTITUTIONAL
FUND OPERATING EXPENSES CLASS CLASS SELECT CLASS CLASS CLASS CLASS J*
----------------------- --------- --------- ------------ -------- ------------- --------
Management Fees 1.00% 1.00% 1.00% 1.00% 1.00% 1.00%
12b-1 Fees 0.00 0.31 0.00 0.37 0.00 0.50
Other Expenses 0.26 0.26 0.38 0.38 0.00 2.26
---- ---- ---- ---- ---- ----
Total Operating Expenses 1.26% 1.57% 1.38% 1.75% 1.00% 3.76%
PACIFIC BASIN FUND
---------------------------------------------------------------------
ADVISORS ADVISORS
PREFERRED PREFERRED SELECT INSTITUTIONAL
FUND OPERATING EXPENSES CLASS CLASS SELECT CLASS CLASS CLASS CLASS J*
----------------------- --------- --------- ------------ -------- ------------- --------
Management Fees 1.00% 1.00% 1.00% 1.00% 1.00% 1.00%
12b-1 Fees 0.00 0.31 0.00 0.37 0.00 0.50
Other Expenses 0.26 0.26 0.38 0.38 0.00 25.85
---- ---- ---- ---- ---- -----
Total Operating Expenses 1.26% 1.57% 1.38% 1.75% 1.00% 27.35%
INTERNATIONAL FUND
------------------------------------------------------------------------
ADVISORS ADVISORS
PREFERRED PREFERRED SELECT
FUND OPERATING EXPENSES CLASS CLASS SELECT CLASS CLASS
----------------------- --------- --------- ------------ --------
Management Fees 0.90% 0.90% 0.90% 0.90%
12b-1 Fees 0.00 0.31 0.00 0.37
Other Expenses 0.26 0.26 0.38 0.38
---- ---- ---- ----
Total Operating Expenses 1.16% 1.47% 1.28% 1.65%
*The Manager has voluntarily agreed to waive a portion of its fee for the Class J shares of the International Fund and each
Acquired Fund. The Manager intends to continue the waiver and, if necessary, pay expenses normally payable by Class J shares of
the International Fund and each Acquired Fund through the period ending February 28, 2003. The effect of the waiver is to reduce
each Fund's Class J shares annual operating expenses. The waiver will maintain a total level of operating expenses for Class J
shares of the International Fund and each Acquired Fund (expressed as a percent of average net assets attributable to Class J
shares on an annualized basis) not to exceed:
. 1.95% for the European Fund through October 31, 2002 and 2.50% thereafter through February 28, 2003.
. 2.00% for for the Pacific Basin Fund through October 31, 2002 and 3.00% thereafter through February 28, 2003.
.1.85% for the International Fund through February 28, 2003.
INSTITUTIONAL
FUND OPERATING EXPENSES CLASS CLASS J*
----------------------- ------------- --------
Management Fees 0.90% 0.90%
12b-1 Fees 0.00 0.50
Other Expenses 0.00 4.89
---- ----
Total Operating Expenses 0.90% 6.29%
*The Manager has voluntarily agreed to waive a portion of its fee for the Class J shares of the International Fund and each
Acquired Fund. The Manager intends to continue the waiver and, if necessary, pay expenses normally payable by Class J shares of
the International Fund and each Acquired Fund through the period ending February 28, 2003. The effect of the waiver is to reduce
each Fund's Class J shares annual operating expenses. The waiver will maintain a total level of operating expenses for Class J
shares of the International Fund and each Acquired Fund (expressed as a percent of average net assets attributable to Class J
shares on an annualized basis) not to exceed:
. 1.95% for the European Fund through October 31, 2002 and 2.50% thereafter through February 28, 2003.
. 2.00% for for the Pacific Basin Fund through October 31, 2002 and 3.00% thereafter through February 28, 2003.
.1.85% for the International Fund through February 28, 2003.
The International Fund's expenses, assuming implementation of the Plan on August
31, 2002, as a percentage of average daily net assets are as follows:
INTERNATIONAL FUND
----------------------------------------------------------------------------------------------
ADVISORS ADVISORS
PREFERRED PREFERRED SELECT SELECT INSTITUTIONAL
FUND OPERATING EXPENSES CLASS CLASS CLASS* CLASS CLASS CLASS J**
----------------------- --------- --------- ------ -------- ------------- ---------
Management Fees 0.90% 0.90% 0.90% 0.90% 0.90% 0.90%
12b-1 Fees 0.00 0.28 0.10 0.34 0.00 0.50
Other Expenses 0.26 0.29 0.28 0.41 0.00 2.05
---- ---- ---- ---- ---- ----
Total Operating Expenses 1.16% 1.47% 1.28% 1.65% 0.90% 3.45%
*A Distribution Plan and Agreement was adopted by the Investors Fund pursuant to Rule 12b-1 for the Select Class shares
effective June 10, 2001.
**
The Manager has voluntarily agreed to waive a portion of its fee for the Class J shares of the International Fund. The Manager
intends to continue the waiver and, if necessary, pay expenses normally payable by Class J shares of the International Fund
through the period ending February 28, 2003. The effect of the waiver is to reduce the International Fund's Class J shares
annual operating expenses. The waiver will maintain a total level of operating expenses for Class J shares of the International
Fund (expressed as a percent of average net assets attributable to Class J shares on an annualized basis) not to exceed 1.85%.
The following is an example of the effect of the operating expenses of the
series as of October 31, 2001. The examples assume (1) a 5% annual return, and
(2) the series' operating expenses remain the same. Although your actual costs
may be higher or lower, you would pay the following expenses on a $10,000
investment in shares of the series, based upon these assumptions:
NUMBER OF YEARS YOU OWN YOUR PREFERRED CLASS SHARES
----------------------------------------------------
1 YEAR 3 YEARS 5 YEARS 10 YEARS
----------- ------------ ------------ ---------------
International Fund $118 $368 $638 $1,409
European Fund 128 400 692 1,523
Pacific Basin Fund 128 400 692 1,523
NUMBER OF YEARS YOU OWN YOUR ADVISORS PREFERRED CLASS SHARES
-------------------------------------------------------------
1 YEAR 3 YEARS 5 YEARS 10 YEARS
------------- -------------- -------------- -----------------
International Fund $150 $465 $803 $1,757
European Fund 160 496 855 1,867
Pacific Basin Fund 160 496 855 1,867
NUMBER OF YEARS YOU OWN YOUR SELECT CLASS SHARES
-------------------------------------------------
1 YEAR 3 YEARS 5 YEARS 10 YEARS
---------- ----------- ----------- --------------
International Fund $130 $406 $702 $1,545
European Fund 140 437 755 1,657
Pacific Basin Fund 140 437 755 1,657
NUMBER OF YEARS YOU OWN YOUR ADVISORS SELECT CLASS SHARES
----------------------------------------------------------
1 YEAR 3 YEARS 5 YEARS 10 YEARS
------------ ------------- ------------- ----------------
International Fund $168 $520 $897 $1,955
European Fund 178 551 949 2,062
Pacific Basin Fund 178 551 949 2,062
NUMBER OF YEARS YOU OWN YOUR INSTITUTIONAL CLASS SHARES
--------------------------------------------------------
1 YEAR 3 YEARS 5 YEARS 10 YEARS
------------ ------------- ------------- ----------------
International Fund $ 92 $287 $498 $1,108
European Fund 102 318 552 1,225
Pacific Basin Fund 102 318 552 1,225
IF YOU SELL YOUR CLASS J SHARES
--------------------------------------------
NUMBER OF YEARS YOU OWN YOUR CLASS J SHARES
--------------------------------------------
1 YEAR 3 YEARS 5 YEARS 10 YEARS
---------- ----------- ----------- --------------
International Fund $287 $569 $ 980 $2,127
European Fund 297 600 1,032 2,233
Pacific Basin Fund 299 606 1,042 2,254
IF YOU DO NOT SELL YOUR CLASS J SHARES
--------------------------------------------
NUMBER OF YEARS YOU OWN YOUR CLASS J SHARES
--------------------------------------------
1 YEAR 3 YEARS 5 YEARS 10 YEARS
---------- ----------- ----------- --------------
International Fund $184 $569 $ 980 $2,127
European Fund 194 600 1,032 2,233
Pacific Basin Fund 196 606 1,042 2,254
The following is an example of the effect of the operating expenses of the
International Fund, assuming implementation of the Plans on August 31, 2002. The
examples assume (1) a 5% annual return, and (2) the series' operating expenses
remain the same. Although your actual costs may be higher or lower, you would
pay the following expenses on a $10,000 investment in shares of the
International Fund, based upon these assumptions:
NUMBER OF YEARS YOU OWN YOUR PREFERRED CLASS SHARES
----------------------------------------------------
1 YEAR 3 YEARS 5 YEARS 10 YEARS
----------- ------------ ------------ ---------------
International Fund $118 $368 $638 $1,409
NUMBER OF YEARS YOU OWN YOUR ADVISORS PREFERRED CLASS SHARES
-------------------------------------------------------------
1 YEAR 3 YEARS 5 YEARS 10 YEARS
------------- -------------- -------------- -----------------
International Fund $150 $465 $803 $1,757
NUMBER OF YEARS YOU OWN YOUR SELECT CLASS SHARES
-------------------------------------------------
1 YEAR 3 YEARS 5 YEARS 10 YEARS
---------- ----------- ----------- --------------
International Fund $130 $406 $702 $1,545
NUMBER OF YEARS YOU OWN YOUR ADVISORS SELECT CLASS SHARES
----------------------------------------------------------
1 YEAR 3 YEARS 5 YEARS 10 YEARS
------------ ------------- ------------- ----------------
International Fund $168 $520 $897 $1,955
NUMBER OF YEARS YOU OWN YOUR INSTITUTIONAL CLASS SHARES
--------------------------------------------------------
1 YEAR 3 YEARS 5 YEARS 10 YEARS
------------ ------------- ------------- ----------------
International Fund $92 $287 $498 $1,108
IF YOU SELL YOUR CLASS J SHARES
--------------------------------------------
NUMBER OF YEARS YOU OWN YOUR CLASS J SHARES
--------------------------------------------
1 YEAR 3 YEARS 5 YEARS 10 YEARS
---------- ----------- ----------- --------------
International Fund $291 $582 $1,001 $2,169
IF YOU DO NOT SELL YOUR CLASS J SHARES
--------------------------------------------
NUMBER OF YEARS YOU OWN YOUR CLASS J SHARES
--------------------------------------------
1 YEAR 3 YEARS 5 YEARS 10 YEARS
---------- ----------- ----------- --------------
International Fund $188 $582 $1,001 $2,169
PURCHASES
- ---------
Shares of the International Fund and each Acquired Fund are offered for sale
through Princor Financial Services Corporation ("Princor"), a broker-dealer that
is also the principal underwriter for the Investors Fund, or other dealers which
it selects.
ONGOING FEES
- ------------
The International fund and each Acquired Fund pay ongoing fees to the Manager,
and for some of the share classes, Princor and others who provide services to
the fund. They reduce the value of each share you own.
DISTRIBUTION (12B-1) FEES
- -------------------------
The Investors Fund has adopted a Distribution Plan under Rule 12b-1 of the
Investment Company Act of 1940 for its Advisors Preferred, Advisors Select,
Select and Class J shares for the International Fund and each Acquired Fund.
Under each Distribution Plan, each series pays a fee to Princor based on the
average daily net asset values attributable to these share classes. These
ongoing fees pay expenses relating to distribution fees for sales of shares of
the share classes and for services provided by Princor and other selling dealers
to shareholders. Because they are ongoing fees, over time they may exceed other
types of sales charges.
. Advisors Preferred Class shares .0.31%
. Advisors Select Class Shares....0.37%
. Select Class Shares.............0.10%
. Class J shares ..................0.50%
EXCHANGES
- ---------
Shares of the International fund and each Acquired Fund may be exchanged,
without payment of a sales charge or CDSC, for shares of the same class of other
series of the Investors Fund. If Class J shares are exchanged for Class J shares
of another series, the shares acquired will be subject to the applicable CDSC
imposed by the new series; however, the holding period of the Class J shares
exchanged is added to the holding period of the Class J shares acquired for
purposes of determining the applicable charge.
REDEMPTION PROCEDURES AND FEES
- ------------------------------
Shares of the International Fund and each Acquired Fund may be redeemed at a
price equal to the net asset value of the shares next computed following the
receipt of a request for redemption in proper form.
The amount you receive will be reduced by any applicable CDSC or redemption fee
for Class J shares . Generally, the sale proceeds are sent out on the next
business day after the sell order has been placed.
DIVIDENDS AND DISTRIBUTIONS
- ---------------------------
The International Fund and each Acquired fund each pay its net investment income
on an annual basis. Payments are made to shareholders of record on the business
day prior to the payment date. The payment date is December 19th (or previous
business day).
Net realized capital gains, if any, are distributed annually. Generally the
distribution is made on the second business day of December. Payments are made
to shareholders of record on the business day prior to the payable date. Capital
gains may be taxable at different rates, depending on the length of time that
the fund holds its assets.
Immediately prior to the reorganization, the International Fund and each
Acquired Fund will pay a dividend or dividends which, together with all previous
dividends, will have the effect of distributing to their respective shareholders
all of their investment company taxable income for taxable years ending on or
prior to the reorganization (computed without regard to any deduction for
dividends paid) and all of its net capital gains, if any, realized in taxable
years ending on or prior to the reorganization (after reduction for any
available capital loss carry forward). Such dividends will be included in the
taxable income of each fund's respective shareholders.
FEDERAL INCOME TAX CONSEQUENCES OF THE PROPOSED COMBINATION
- -----------------------------------------------------------
The combination will be a tax-free "reorganization" under Section 368 of the
Internal Revenue Code of 1986, as amended (the "Code"). In the opinion of tax
counsel to the Investors Fund, no gain or loss will be recognized by a series or
its shareholders in connection with the combination, and the tax cost basis of
the International Fund shares received by shareholders of each Acquired Fund
will equal the tax cost basis of their shares in the Acquired Fund and their
holding period of the International Fund shares will include the time during
which the shareholders held the Acquired Fund shares.
COSTS AND EXPENSES
- ------------------
Principal Management Corporation will bear all out-of-pocket fees and expenses
incurred by the series in connection with the transactions contemplated by each
Plan.
CONTINUATION OF SHAREHOLDER ACCOUNTS
- ------------------------------------
At the effective time of each Plan, you will cease to be a shareholder of each
Acquired Fund and will become a shareholder of the International Fund owning the
same class of shares of the International Fund having the same value as the
investment you had in each Acquired Fund at the effective time.
PRINCIPAL RISK FACTORS
The primary investment objective of the International Fund and each Acquired
Fund is to seek long-term growth of capital. Each series invests primarily in
equity securities of foreign companies, but the European Fund and the Pacific
Basin Fund invest at least 80% of their assets in companies located in specific
geographic regions. The International Fund is not required to invest in
companies located in specific geographic regions. Thus, while the risks of
investing in international stock funds in general are similar for each, they
have different risks due to the extent to which each is geographically
diversified. As with all mutual funds, as the values of the assets of each
series rise or fall, the share prices change for each. If you sell your shares
when their value is less than the price you paid, you will lose money.
MAIN RISKS
Because it purchases equity securities, each series is subject to the risk that
prices of securities it owns will fall over short or extended periods of time.
Individual companies may report poor results or be negatively affected by
industry and/or economic trends and developments. In response, the price of
securities issued by such companies may decline. These factors contribute to
price volatility. In addition, foreign stocks carry risks that are not generally
found in stocks of U.S. companies. These include the risk that a foreign
security could lose value as a result of political, financial and economic
events in foreign countries. In addition, foreign securities may be subject to
securities regulators with less stringent accounting and disclosure standards
than are required of U.S. companies.
Each series may invest in securities of companies with small to medium market
capitalizations. While small companies may offer greater opportunities for
capital growth than larger, more established companies, they also involve
greater risk and should be considered speculative. Small to mid-sized companies
may pose greater risk due to narrow product lines, limited financial resources,
less depth in management or a limited trading market for their securities.
Historically, these securities have fluctuated in price more than larger company
securities, especially over the short-term.
THE PLAN
PLAN OF ACQUISITION
- -------------------
The terms of each Plan are summarized below. The summary is qualified in its
entirety by reference to each Plan, copies of which are attached as Appendix A
and B. Each Plan is identical, except for the name of the Acquired Fund.
Under the Plan, the International Fund will acquire all the assets and assume
all the liabilities of the Acquired Fund and will issue to the Acquired Fund the
number of shares of Common Stock of each share class of the International Fund
that has a net asset value equal to the net asset value attributable to each
share class of the Acquired Fund. We expect that the closing date will be
October 29, 2002, assuming shareholder approval of the Plan, and that the
effective time will be the close of regular trading on the NYSE at 4:00 P.M.,
Eastern Standard Time, on that date. The series will determine their net asset
values as of the effective time using the procedures described in the Investors
Fund's prospectus (the procedures applicable to the International Fund and each
Acquired Fund are indentical). The International Fund will issue to each
Acquired Fund a number of shares of each share class equal to the value of the
net assets of the Acquired Fund shares of each share class outstanding at the
effective time. The Acquired Fund will be managed such that at the effective
time it will hold only cash or other securities that are eligible investments
for the International Fund.
Immediately after the effective time, each Acquired Fund will distribute to you
its International Fund shares of the same class as the shares you own of the
Acquired Fund in exchange for all your Acquired Fund shares of that class. Each
Acquired Fund shareholder will receive shares of the International Fund that are
equal in value to the shares of the class of the Acquired Fund that are given up
by the shareholder in the exchange. In connection with the exchange, the
International Fund will credit on its books an appropriate number of its shares
to the account of each Acquired Fund shareholder, and the Acquired Fund will
cancel on its books all its shares registered to the account of that
shareholder. Any outstanding certificate for Acquired Fund shares that is not
surrendered will be deemed to represent the number of International Fund shares
for which the Acquired shares have been exchanged. After the effective time,
each Acquired Fund will dissolve in accordance with applicable law.
The consummation of the transactions contemplated by the Plan for each Acquired
Fund is subject to the approval of the Plan by the shareholders of that Acquired
Fund. Each Plan may be amended, but no amendment may be made to the Plan which
in the opinion of the Board of Directors would materially adversely affect the
interests of the shareholders of an Acquired Fund after the shareholders of that
Acquired Fund have approved the Plan. The Board of Directors may terminate a
Plan at any time before the effective time if it believes that consummation of
the transactions contemplated by that Plan would not be in the best interests of
the shareholders.
The Manager will pay all fees and out-of-pocket expenses incurred by the series
in connection with the transactions contemplated by each Plan.
DESCRIPTION OF SECURITIES TO BE ISSUED
- --------------------------------------
The share classes of the International Fund are shares of common stock, par
value $.01 per share. They have the same rights with respect to the
International Fund as the share classes of each Acquired Fund have with respect
to the Acquired Fund. Each share is entitled to one vote and has equal rights
with every other share as to dividends, earnings, voting, assets and redemption.
There is no cumulative voting for directors. Shares are fully paid and
non-assessable, have no preemptive or conversion rights and are freely
transferable. Each fractional share has proportionately the same rights as are
provided for a full share. As of September 16, 2002, the International Fund had
the following number of shares of each class outstanding:
NUMBER OF OUTSTANDING
CLASS SHARES
----- ---------------------
Preferred
Advisors Preferred
Select
Advisors Select
Institutional
Class J
REASONS FOR THE PROPOSED COMBINATION
- ------------------------------------
The catalyst for each Plan is the Principal Financial Group's recent
announcement that it has reached a definitive agreement to sell significant
portions of BT Financial Group businesses. As a result of this sale, PCGIL will
not provide investment advisory services to the Acquired Funds after October 31,
2002. Both of the Acquired Funds have relatively small amounts of assets and
have experienced limited sales of shares. The likelihood that the Acquired Funds
will achieve significant asset levels in the foreseeable future is low. The
Board for each Acquired Fund considered these and other factors, and determined
that the proposed Plan would be in the best interests of each Acquired Fund and
its shareholders, that the terms of each Plan are fair and reasonable and that
the interests of the shareholders of each Acquired Fund will not be diluted as a
result of the transactions contemplated by the Plan.
Each Plan has been approved by the Board of Directors of the International Fund
each of the Acquired Funds, including all of the directors who are not
"interested persons" as defined in Section 2(a)(19) of the Investment Company
Act. In approving the Plan, the Boards considered the following factors, among
others: (1) possible alternatives to the Plan; (2) the terms and conditions of
the Plan and whether its implementation would result in dilution of shareholder
interests or involve overreaching by any person concerned; (3) the advantages to
the Acquired Fund's shareholders of investing in a larger asset pool with
greater diversification; (4) any direct or indirect fees or expenses incurred by
the
series as a result of the Plan; (5) expense ratios and available information
regarding the fees and expenses of the series, including any change in fees or
expenses to be paid or borne by shareholders of the Acquired Fund (direct or
indirectly) as a result of the Plan; (6) comparative investment performances of
the series; (7) the direct or indirect federal income tax consequences of the
Plan to shareholders of the Acquired Fund; (8) the continuity of or changes in
services to be provided to shareholders following implementation of the Plan;
and (9) the compatibility of the investment objectives and policies of the
series and changes with respect to the investment objectives and policies of the
Acquired Fund that will result from the Plan.
FEDERAL INCOME TAX CONSEQUENCES
- -------------------------------
To be considered a tax-free "reorganization" under Section 368 of the Code, a
reorganization must exhibit a continuity of business enterprise. Because the
International Fund will use a portion of each Acquired Fund's assets in its
business and will continue each Acquired Fund's historic business, the
combination of each Acquired Fund with the International Fund will exhibit a
continuity of business enterprise. Therefore, each combination will be
considered a tax-free "reorganization," under applicable provisions of the Code.
In the opinion of tax counsel to the Investors Fund, no gain or loss will be
recognized by any of the series or its shareholders in connection with the
combination, the tax cost basis of the International Fund shares received by
shareholders of each Acquired Fund will equal the tax cost basis of their shares
in the Acquired Fund, and their holding periods for the International Fund
shares will include their holding periods for the Acquired Fund shares.
As of October 31, 2001, the European Fund and the Pacific Basin Fund had
accumulated capital loss carryforwards in the amount of approximately $797,000
and $425,000, respectively. After the reorganization, these losses will be
available to the International Fund to offset its capital gains, although the
amount of offsetting losses available in any given year may be limited. As a
result of this limitation, it is possible that the International Fund may not be
able to use these losses as rapidly as either Acquired Fund might have, and part
of these losses may not be useable at all. The ability of the International Fund
to absorb losses in the future depends upon a variety of factors that cannot be
known in advance, including the existence of capital gains against which these
losses may be offset. In addition, the benefits of any capital loss carryfowards
currently are available only to shareholders of the Acquired Fund to which they
relate. After the reorganization, however, these benefits will inure to the
benefit of all shareholders of the International Fund.
The foregoing is only a summary of the principal federal income tax consequences
of the combination and should not be considered to be tax advice. There can be
no assurance that the Internal Revenue Service will concur on all or any of the
issues discussed above. You may wish to consult with your own tax advisers
regarding the federal, state, and local tax consequences with respect to the
foregoing matters and any other considerations which may apply in your
particular circumstances.
CAPITALIZATION
- --------------
The following table shows the capitalization of each Acquired Fund and the
International Fund separately, as of August 31, 2002, and combined in the
aggregate (unaudited), as of that date, giving effect to both Plans:
EUROPEAN FUND
-----------------------------------------------------------------------
ADVISORS ADVISORS
PREFERRED PREFERRED SELECT INSTITUTIONAL
CLASS CLASS CLASS SELECT CLASS CLASS CLASS J
--------- --------- -------- ------------ ------------- -------
Net Assets $868,138 $846,867 $1,372,396 $869,080 $10,503 $472,516
Net Asset Value Per Share $6.94 $6.96 $6.93 $6.96 $7.05 $7.05
Shares Outstanding 125,054 121,733 197,910 124,929 1,490 67,068
PACIFIC BASIN FUND
--------------------------------------------------------------------
ADVISORS ADVISORS
PREFERRED PREFERRED SELECT INSTITUTIONAL
CLASS CLASS CLASS SELECT CLASS CLASS CLASS J
--------- --------- -------- ------------ ------------- -------
Net Assets $800,561 $794,943 $799,771 $801,356 $7,156 $246,029
Net Asset Value Per Share $6.40 $6.41 $6.39 $6.41 $6.38 $6.36
Shares Outstanding 125,110 124,062 125,107 125,107 1,121 38,697
INTERNATIONAL FUND
------------
ADVISORS ADVISORS
PREFERRED PREFERRED SELECT INSTITUTIONAL
CLASS CLASS CLASS SELECT CLASS CLASS CLASS J
--------- --------- -------- ------------ ------------- -------
Net Assets $1,826,658 $2,703,146 $1,014,885 $865,523 $17,129,664 $8,601,333
Net Asset Value Per Share $6.91 $6.94 $6.88 $6.92 $6.96 $6.91
Shares Outstanding 264,326 389,779 147,427 125,120 2,461,191 1,245,649
COMBINED INTERNATIONAL FUND
------------
ADVISORS ADVISORS
PREFERRED PREFERRED SELECT INSTITUTIONAL
CLASS CLASS CLASS SELECT CLASS CLASS CLASS J
--------- --------- -------- ------------ ------------- -------
Net Assets $3,495,357 $4,344,956 $3,187,051 $2,535,958 $17,147,323 $9,319,878
Net Asset Value Per Share $6.91 $6.94 $6.88 $6.92 $6.96 $6.91
Shares Outstanding 505,817 626,351 463,149 366,512 2,463,729 1,349,635
MANAGEMENT'S DISCUSSION OF INTERNATIONAL FUND PERFORMANCE
The following discussion relates to the performance of the International Fund
during its most recent fiscal year, which ended October 31,2001.
LOGO
GROWTH OF $10,000
Cumulative Returns
as of October 31, 2001
Class Life of Fund
Advisors Preferred -26.92%
Advisors Select -27.12%
J -23.00%
Institutional -21.80%
Preferred -26.82%
Select -26.82%
Morgan Stanley
Capital
International Morningstar International
EAFE (Europe, Foregin Fund I,
Australia and Stock Advisors
Far East) Index-ND Category Select
"2001" 7.573 7.634 7.288
Note: Past performance is not predictive of future performance.
The performance of Advisors Preferred, Preferred, Select, Institutional,
and Class J shares will vary from the performance of Advisors Select
shares based on the differences in sales charges and fees.
* The inception date of the Institutional Class and Class J shares was
March 1, 2001. The Advisors Preferred, Advisors Select, Preferred
and Select Classes inception was December 1, 2000.
International equity markets posted negative returns in the last year, largely
due to declining economic growth rates around the world. Global growth rates
were impacted by increased interest rates in 2001 along with higher energy
prices. The September 11 terrorist attacks caused further weakness in the
already sluggish global economy. Market leaders last year, specifically
technology, media and telecommunications (TMT), were impacted the most by 2001's
negative economic environment. Weakness in these sectors was driven by reduced
earnings growth expectations. The economic slowdown also negatively impacted
investments in information technology and spending on advertising. In
telecommunications, lower-than-expected demand for new services and balance
sheet concerns negatively impacted the sector.
In addition to the negative performance of the TMT sectors, the sluggish economy
began to take its toll on other cyclical areas of the market. Consumer cyclicals
in particular were hit hard, especially after the attacks. The areas of the
market that performed the best in the past year were sectors where earnings
proved relatively resilient: consumer staples, health care, utilities and
energy.
Market performance in October, the last month of the International Fund's fiscal
year, was strong. Signs are appearing that the worst may be over for corporate
earnings. The aggressive easing of monetary and fiscal policy in the United
States and elsewhere around the world will lead to a better economic environment
in the future. Recent declines in energy prices are also positive for future
economic growth.
The International Fund underperformed the MSCI EAFE (Europe, Australia and Far
East) benchmark by 2.85% for the year. For the one-year period ended October 31,
2001, the Fund returned -27.12%, compared to -24.27% for the Index. Three key
areas drove underperformance: 1) an overweighted position in cyclical media
companies; 2)
exposure in market sensitive banks and diversified financials, and 3) select
positions in cyclical business services companies. Currency movements benefited
the fund by over 1% as the Euro rebounded versus the U.S. dollar.
We are currently finding good value in financials and basic materials companies.
We are less positive on consumer staples, pharmaceuticals and utilities since
they appear expensive on our valuation measures. Our investment positioning is
always a result of implementing our borderless, bottom-up philosophy in
international investing. This philosophy focuses on in-depth research of
companies and investing at discount valuations.
1) MORNINGSTAR FOREIGN STOCK CATEGORY consists of foreign-stock funds that can
invest in any country outside the United States. Most of these funds divide
their assets among a dozen or more developed markets, including Japan, Britain,
France, and Germany. They tend to invest the rest in emerging markets such as
Hong Kong, Brazil, Mexico and Thailand.
2) MORGAN STANLEY CAPITAL INTERNATIONAL (MSCI) EAFE (EUROPE, AUSTRALIA AND FAR
EAST) INDEX is a stock index designed to measure the investment returns of
developed economies outside of North America.
COMPARISON OF INVESTMENT OBJECTIVES, POLICIES AND RESTRICTIONS
The investment objectives of the series are fundamental and certain investment
restrictions which are designated as such in each serie's prospectus or
statement of additional information are fundamental policies that may not be
changed without approval by the holders of the lesser of: (i) 67% of the series'
shares present or represented at a shareholder's meeting at which the holders of
more than 50% of such shares are present or represented by proxy; or (ii) more
than 50% of the outstanding shares of the series. All other investment policies
and restrictions are not fundamental and may be changed by a series' Board of
Directors without shareholder approval.
INTERNATIONAL FUND
- ------------------
The International Fund seeks long-term growth of capital.
INTERNATIONAL FUND STRATEGY
The International Fund invests in a portfolio of equity securities of companies
domiciled in any of the nations of the world. The International Fund invests in
securities of:
.. companies with their principal place of business or principal office outside
the U.S.;
.. companies for which the principal securities trading market is outside the
U.S.; and
.. companies, regardless of where their securities are traded, that derive 50% or
more of their total revenue from goods or services produced or sales made
outside the U.S.
The International Fund has no limitation on the percentage of assets that are
invested in any one country or denominated in any one currency. However under
normal market conditions, the International Fund intends to have at least 80% of
its assets invested in companies in at least three different countries. One of
those countries may be the U.S. though currently the International Fund does not
intend to invest in equity securities of U.S. companies.
Investments may be made anywhere in the world. Primary consideration is given to
securities of corporations of Western Europe, North America and Australasia
(Australia, Japan and Far East Asia). Changes in investments are made as
prospects change for particular countries, industries or companies.
In choosing investments for the International Fund, the Sub-Advisor, Invista,
pays particular attention to the long-term earnings prospects of the various
companies under consideration. Invista then weighs those prospects relative to
the price of the security.
EUROPEAN FUND
- -------------
The European Fund seeks to achieve long-term growth of capital.
EUROPEAN FUND STRATEGY
The European Fund invests primarily in equity securities of companies domiciled
or, in the opinion of PCGIL, having their core business in Europe. The European
Fund may also invest in other securities of such companies. The European Fund
offers an opportunity to invest in a region with a wide spread of industries and
in companies which, in the opinion of PCGIL, may be undervalued.
The European Fund invests in securities listed on foreign or domestic securities
exchanges, securities traded in foreign or domestic over-the-counter markets and
depositary receipts. Under normal market conditions, the European Fund invests
at least 80% of its assets in European securities. These include securities of:
.. companies organized under the laws of European countries;
.. companies for which the principal securities trading market is in a European
country; and
.. companies, regardless of where their securities are traded, that derive 50% or
more of their total revenue from either goods or services produced or sales
made in European countries.
The global equity investment philosophy of PCGIL is to exploit market
inefficiencies that arise from differing interpretations of market information.
As a result, in PCGIL's view, a company's share price does not always represent
its true "business value." PCGIL actively invests in those companies that it
believes have been mispriced by investment markets. In order to exploit these
inefficiencies successfully, PCGIL seeks to enhance investment returns through:
.. rigorous proprietary stock research which enables their analysts to understand
the:
. quality of the company;
. nature of its management;
. nature of its industry competition; and
. business valuation - the true "business value" of the company;
.. maintaining global coverage within the universe of investment choices; and
.. maintaining a medium-term focus.
As a result, the European Fund's portfolio reflects the opportunities PCGIL
believes are presented by mispriced companies that offer the potential for
strong, long-term investment returns with an acceptable level of investment
risk.
PACIFIC BASIN FUND
- ------------------
The Pacific Basin Fund seeks to achieve long-term growth of capital.
PACIFIC BASIN FUND STRATEGY
The Pacific Basin Fund invests primarily in equity securities (or other
securities with equity characteristics) of issuers located in the Pacific Basin
region, including Japan. The Pacific Basin Fund invests in securities listed on
foreign or domestic securities exchanges, securities traded in foreign or
domestic over-the-counter markets and depositary receipts. Under normal market
conditions, the Pacific Basin Fund invests at least 80% of its assets in
securities of issuers of Pacific Basin countries, which include but are not
limited to: Australia, China, Hong Kong, India, Indonesia, Japan, Malaysia, New
Zealand, Singapore, Sri Lanka, South Korea, Thailand, Taiwan and Vietnam. These
include securities of:
.. companies organized under the laws of Pacific Basin countries;
.. companies for which the principal securities trading market is in a Pacific
Basin country; and
.. companies, regardless of where their securities are traded, that derive 50% or
more of their total revenue from either goods or services produced or sales
made in Pacific Basin countries.
Criteria for determining the distribution of investments include the prospects
for relative growth among foreign countries, expected levels of inflation,
government policies influencing business conditions and the range of
opportunities available to international investors. PCGIL actively invests in
those companies that it believes have been mispriced by investment markets. In
order to exploit these inefficiencies successfully, PCGIL seeks to enhance
investment returns through:
.. rigorous proprietary stock research which enables their analysts to understand
the:
. quality of the company;
. nature of its management;
. nature of its industry competition; and
. business valuation - the true "business value" of the company;
.. maintaining global coverage within the universe of investment choices; and
.. maintaining a medium-term focus.
As a result, the Pacific Basin Fund's portfolio reflects the opportunities PCGIL
believes are presented by mispriced companies that offer the potential for
strong, long-term investment returns with an acceptable level of investment
risk.
In addition to having similar investment objectives, the International Fund and
the Acquired Funds have many similar investment policies and restrictions.
EUROPEAN FUND, PACIFIC BASIN FUND AND INTERNATIONAL FUND INVESTMENT POLICIES AND
RESTRICTIONS
Fundamental Restrictions
- ------------------------
Each of the following restrictions for the European Fund, Pacific Basin Fund and
International Fund is a matter of fundamental policy and may not be changed
without shareholder approval. The European Fund, Pacific Basin Fund and
International Fund may not:
. Issue any senior securities as defined in the 1940 Act, as amended.
Purchasing and selling securities and futures contracts and options thereon
and borrowing money in accordance with restrictions described below do not
involve the issuance of a senior security.
. Invest in physical commodities or commodity contracts (other than foreign
currencies), but it may purchase and sell financial futures contracts,
options on such contracts, swaps and securities backed by physical
commodities.
. Invest in real estate, although it may invest in securities that are secured
by real estate and securities of issuers that invest or deal in real estate.
. Borrow money, except that it may a) borrow from banks (as defined in the
1940 Act, as amended) or other financial institutions or through reverse
repurchase agreements in amounts up to 33 1/3% of its total assets
(including the amount borrowed); b) to the extent permitted by applicable
law, borrow up to an additional 5% of its total assets for temporary
purposes; c) obtain short-term credits as may be necessary for the clearance
of purchases and sales of portfolio securities; and d) purchase securities
on margin to the extent permitted by applicable law (the deposit or payment
of margin in connection with transactions in options and financial futures
contracts is not considered purchase of securities on margin).
. Make loans, except that the series may a) purchase and hold debt obligations
in accordance with its investment objective and policies; b) enter into
repurchase agreements; and c) lend its portfolio securities without
limitation against collateral (consisting of cash or securities issued or
guaranteed by the U.S. Government or its agencies or instrumentalities)
equal at all times to not less than 100% of the value of the securities
loaned. This limit does not apply to purchases of debt securities or
commercial paper.
. Invest more than 5% of its total assets in the securities of any one issuer
(other than obligations issued or guaranteed by the U.S. Government or its
agencies or instrumentalities) or purchase more than 10% of the outstanding
voting securities of any one issuer, except that this limitation shall apply
only with respect to 75% of the total assets of the series.
. Act as an underwriter of securities, except to the extent that the series
may be deemed to be an underwriter in connection with the sale of securities
held in its portfolio.
. Concentrate its investments in any particular industry, except that the
seriesmay invest up to 25% of the value of its total assets in a single
industry, provided that, when the series has adopted a temporary defensive
posture, there shall be no limitation on the purchase of obligations issued
or guaranteed by the U.S. Government or its agencies or instrumentalities.
. Sell securities short (except where the series holds or has the right to
obtain at no added cost a long position in the securities sold that equals
or exceeds the securities sold short).
Non-Fundamental Restrictions
- ----------------------------
The European Fund, Pacific Basin Fund and International Fund have also adopted
the following restrictions that are not fundamental policies and that may be
changed without shareholder approval. It is contrary to the European Fund,
Pacific Basin Fund and International Fund's present policy to:
. Invest more than 15% of its net assets in illiquid securities and in
repurchase agreements maturing in more than seven days except to the extent
permitted by applicable law.
. Pledge, mortgage or hypothecate its assets, except to secure permitted
borrowings. The deposit of underlying securities and other assets in escrow
and other collateral arrangements in connection with transactions in put or
call options, futures contracts and options on futures contracts are not
deemed to be pledges or other encumbrances.
. Invest in companies for the purpose of exercising control or management.
. Enter into a) any futures contracts and related options for non-bona fide
hedging purposes within the meaning of Commodity Futures Trading Commission
(CFTC) regulations if the aggregate initial margin and premiums required to
establish such positions will exceed 5% of the fair market value of the
series' net assets, after taking
into account unrealized profits and unrealized losses on any such contracts
it has entered into; and b) any futures contracts if the aggregate amount of
such series' commitments under outstanding futures contracts positions would
exceed the market value of its total assets.
. Invest more than 5% of its total assets in real estate limited partnership
interests.
. Acquire securities of other investment companies in reliance on Section
12(d) (1) (F) or (G) of the 1940 Act.
The European Fund has also adopted a non-fundamental restriction which requires
it, under normal circumstances, to invest at least 80% of its net assets in
European securities. These include securities of:
. companies organized under the laws of European countries;
. companies for which the principal securities trading market is in a European
country; and
. companies, regardless of where their securities are traded, that derive 50%
or more of their total revenue from either goods or services produced or
sales made in European countries.
The Pacific Basin Fund has also adopted a non-fundamental policy which requires
it, under normal market conditions, to invest at least 80% of its assets in
securities issuers of Pacific Basin countries, which include Australia, China,
Hong Kong, India, Indonesia, Japan, Malaysia, New Zealand, Singapore, Sri Lanka,
South Korea, Thailand, Taiwan and Vietnam. These include securities of:
. companies organized under the laws of Pacific Basin countries;
. companies for which the principal securities trading market is in a Pacific
Basin country; and
. companies, regardless of where their securities are traded, that derive 50%
or more of their total revenue from either goods or services produced or
sales made in Pacific Basin countries.
INVESTMENT ADVISORY SERVICES
- ----------------------------
Principal Management Corporation ("the Manager") serves as investment advisor to
the Investors Fund. The Manager has entered into a sub-advisory agreement with
Invista Capital Management, LLC ("Invista") to provide investment advisory
services to the International Fund. Invista is an indirect wholly-owned
subsidiary of Principal Life Insurance Company and an affiliate of the Manager.
The International Fund paid the Manager a fee equal to 0.90% (0.0% for the Class
J shares after waiver) of the International Fund's average daily net assets for
services provided during the fiscal year ended October 31, 2001 and the Manager
paid Invista a sub-advisory fee equal to 0.11% of such assets.
The Manager has entered into a sub-advisory agreement with Principal Capital
Global Investors LLC ("PCGIL") to provide investment advisory services to the
European Fund and Pacific Basin Fund. PCGIL is also an affiliate of the Manager.
The European Fund paid the Manager a fee equal to 1.00% (0.0% for the Class J
shares after waiver) of the European Fund's average daily net assets for
services provided during the fiscal year ended October 31, 2001 and the Manager
paid PCGIL a sub-advisory fee of 0.50% of such assets. The Pacific Basin Fund
paid the manager a fee equal to 1.00% before waiver (0.0% for the Class J shares
after waiver) of the Pacific Basin Fund's average daily net assets for services
provided during the fiscal year ended October 31, 2001 and the Manager paid
PCGIL a sub-advisory fee of 0.60% of such assets.
If the Plan is approved, the combined assets of the Funds will continue to be
sub-advised by a sub-advisor affiliated with the Manager, the Manager will
retain a larger portion of the advisory fees it will receive with respect to the
assets formerly owned by each Acquired Fund and the amount of the management fee
waiver or expense reimbursement for Class J shares by the Manager will be
reduced.
ADDITIONAL INFORMATION ABOUT THE SERIES
Additional information about the series is available in their semi-annual
reports to shareholders for the six months ended April 30, 2002, in their annual
reports to shareholders for the year ended October 31, 2001 and in the following
documents which have been filed with the SEC: prospectus and statement of
additional information for the Investors Fund (including the International Fund,
Pacific Basin Fund, and European Fund) dated May 1, 2002; and statement of
additional information for the registration statement of which this
prospectus/information statement is a part, dated October 10, 2002. You may
obtain copies of the semi-annual and annual reports to shareholders, the
prospectuses and the statements of additional information by contacting Princor
Financial Services Corporation at Des Moines, Iowa 50392-0200, or by telephoning
shareholder services toll-free at 1-800-247-4123.
Each of the series is subject to the informational requirements of the
Securities Exchange Act of 1934, as amended, and the Investment Company Act, as
applicable. Accordingly, each files reports, proxy materials and other
information
with the SEC. You may inspect those reports, proxy materials and other
information at the public reference facilities maintained by the SEC at 450
Fifth Street, N.W., Washington, D. C. 20549. Copies of such materials also may
be obtained from the Public Reference Branch, Office of Consumer Affairs and
Information Services, Securities and Exchange Commission, 450 Fifth Street,
N.W., Washington, D. C. 20549, at prescribed rates, or at no charge from the
EDGAR database on the Commission's website at "www.sec.gov."
PROPOSALS OF SHAREHOLDERS
A shareholder who has an issue that he or she would like to have included in the
agenda at a Principal Investors Fund shareholder meeting should send the
proposal to the fund at the Principal Financial Group, Des Moines, Iowa
50392-0200. To be considered for presentation at a shareholders meeting, the
proposal must be received a reasonable time before a solicitation is made for
such meeting. Timely submission of a proposal does not necessarily mean that
such proposal will be included.
OTHER BUSINESS
We do not know of any business to be brought before the meeting other than the
matters set forth in this prospectus/ information statement.
APPENDIX A:
PRINCIPAL INVESTORS FUND
PLAN OF ACQUISITION
EUROPEAN FUND AND INTERNATIONAL FUND
The Board of Directors of Principal Investors Fund (the "Fund") deem it
advisable that the International Fund of the Fund acquire all of the assets of
the European Fund in exchange for the assumption by the International Fund of
all of the liabilities of the European Fund and shares issued by the
International Fund which are thereafter to be distributed by the European Fund
pro rata to its shareholders in complete liquidation and termination of the
European Fund and in exchange for all of the European Fund's outstanding shares.
The European Fund will transfer to the International Fund and the International
Fund will acquire from the European Fund, all of the assets of the European Fund
on the Closing Date and will assume from the European Fund all of the
liabilities of the European Fund in exchange for the issuance of the number of
shares of the International Fund determined as provided in the following
paragraphs, which will be subsequently distributed pro rata to the shareholders
of the European Fund in complete liquidation and termination of the European
Fund and in exchange for all of the European Fund's outstanding shares. The
European Fund will not issue, sell or transfer any of its shares after the
Closing Date, and only redemption requests received by the European Fund in
proper form prior to the Closing Date shall be fulfilled by the European Fund.
Redemption requests received by the European Fund thereafter will be treated as
requests for redemption of those shares of the International Emerging Markets
Fund allocable to the shareholder in question.
Each Fund will declare to its shareholders of record on or prior to the Closing
Date a dividend or dividends which, together with all previous such dividends,
shall have the effect of distributing to its shareholders all of its income
(computed without regard to any deduction for dividends paid) and all of its net
realized capital gains, if any, as of the Closing Date;
On the Closing Date, the International Fund will issue to the European Fund a
number of full and fractional shares of the International Fund, taken at their
then net asset value, having an aggregate net asset value equal to the aggregate
value of the net assets of the European Fund. The aggregate value of the net
assets of the European Fund and the International Fund shall be determined in
accordance with the then current Prospectus of the International Fund as of
closing of the New York Stock Exchange on the Closing Date.
The closing of the transactions contemplated in this Plan (the "Closing") shall
be held at the offices of Principal Management, 680 8th Street, Des Moines, Iowa
50392-0200 at 3:00 p.m. Central Standard Time on October 29, 2002 or on such
earlier or later date as fund management may determine. The date on which the
Closing is to be held as provided in this Plan shall be known as the "Closing
Date."
In the event that on the Closing Date (a) the New York Stock Exchange is closed
for other than customary week-end and holiday closings or (b) trading on said
Exchange is restricted or (c) an emergency exists as a result of which it is not
reasonably practicable for the International Fund or the European Fund to fairly
determine the value of its assets, the Closing Date shall be postponed until the
first business day after the day on which trading shall have been fully resumed.
As soon as practicable after the Closing, the European Fund shall (a) distribute
on a pro rata basis to the shareholders of record of the European Fund at the
close of business on the Closing Date the shares of the International Fund
received by the European Fund at the Closing in exchange for all of the European
Fund's outstanding shares, and (b) be liquidated in accordance with applicable
law and the Fund's Articles of Incorporation.
For purposes of the distribution of shares of the International Fund to
shareholders of the European Fund, the International Fund shall credit on the
books of the International Fund an appropriate number of shares of the
International Fund to the account of each shareholder of the European Fund. No
certificates will be issued for shares of the International Fund. After the
Closing Date and until surrendered, each outstanding certificate, if any, which,
prior to the Closing Date, represented shares of the European Fund, shall be
deemed for all purposes of the Fund's Articles of
Incorporation and Bylaws to evidence the appropriate number of shares of the
International Fund to be credited on the books of the International Fund in
respect of such shares of the European Fund as provided above.
Prior to the Closing Date, the European Fund shall deliver to the International
Fund a list setting forth the assets to be assigned, delivered and transferred
to the International Fund, including the securities then owned by the European
Fund and the respective federal income tax bases (on an identified cost basis)
thereof, and the liabilities to be assumed by the International Fund pursuant to
this Plan.
All of the European Fund's portfolio securities shall be delivered by the
European Fund's custodian on the Closing Date to the International Fund or its
custodian, either endorsed in proper form for transfer in such condition as to
constitute good delivery thereof in accordance with the practice of brokers or,
if such securities are held in a securities depository within the meaning of
Rule 17f-4 under the 1940 Act, transferred to an account in the name of the
International Fund or its custodian with said depository. All cash to be
delivered pursuant to this Plan shall be transferred from the European Fund's
account at its custodian to the International Fund's account at its custodian.
If on the Closing Date the European Fund is unable to make good delivery to the
International Fund's custodian of any of the European Fund's portfolio
securities because such securities have not yet been delivered to the European
Fund's custodian by its brokers or by the transfer agent for such securities,
then the delivery requirement with respect to such securities shall be waived,
and the European Fund shall deliver to the International Fund's custodian on or
by said Closing Date with respect to said undelivered securities executed copies
of an agreement of assignment in a form satisfactory to the International Fund,
and a due bill or due bills in form and substance satisfactory to the custodian,
together with such other documents including brokers' confirmations, as may be
reasonably required by the International Fund.
This Plan may be abandoned and terminated, whether before or after action
thereon by the shareholders of the European Fund and notwithstanding favorable
action by such shareholder, if the Board of Directors believe that the
consummation of the transactions contemplated hereunder would not be in the best
interests of the shareholders of either Fund. This Plan may be amended by the
Fund's Board of Directors at any time, except that after approval by the
shareholders of the European Fund no amendment may be made with respect to the
Plan which in the opinion of the Board of Directors materially adversely affects
the interests of the shareholders of the European Fund.
Except as expressly provided otherwise in this Plan, Principal Management will
pay or cause to be paid all out-of-pocket fees and expenses incurred by the
European Fund or the International Fund in connection with the transactions
contemplated under this Plan, including, but not limited to, accountants' fees,
legal fees, registration fees, printing expenses, transfer taxes (if any) and
the fees of banks and transfer agents.
APPENDIX B
PRINCIPAL INVESTORS FUND
PLAN OF ACQUISITION
PACIFIC BASIN FUND AND INTERNATIONAL FUND
The Board of Directors of Principal Investors Fund (the "Fund") deem it
advisable that the International Fund of the Fund acquire all of the assets of
the Pacific Basin Fund in exchange for the assumption by the International Fund
of all of the liabilities of the Pacific Basin Fund and shares issued by the
International Fund which are thereafter to be distributed by the Pacific Basin
Fund pro rata to its shareholders in complete liquidation and termination of the
Pacific Basin Fund and in exchange for all of the Pacific Basin Fund's
outstanding shares.
The Pacific Basin Fund will transfer to the International Fund and the
International Fund will acquire from the Pacific Basin Fund, all of the assets
of the Pacific Basin Fund on the Closing Date and will assume from the Pacific
Basin Fund all of the liabilities of the Pacific Basin Fund in exchange for the
issuance of the number of shares of the International Fund determined as
provided in the following paragraphs, which will be subsequently distributed pro
rata to the shareholders of the Pacific Basin Fund in complete liquidation and
termination of the Pacific Basin Fund and in exchange for all of the Pacific
Basin Fund's outstanding shares. The Pacific Basin Fund will not issue, sell or
transfer any of its shares after the Closing Date, and only redemption requests
received by the Pacific Basin Fund in proper form prior to the Closing Date
shall be fulfilled by the Pacific Basin Fund. Redemption requests received by
the Pacific Basin Fund thereafter will be treated as requests for redemption of
those shares of the International Emerging Markets Fund allocable to the
shareholder in question.
Each Fund will declare to its shareholders of record on or prior to the Closing
Date a dividend or dividends which, together with all previous such dividends,
shall have the effect of distributing to its shareholders all of its income
(computed without regard to any deduction for dividends paid) and all of its net
realized capital gains, if any, as of the Closing Date;
On the Closing Date, the International Fund will issue to the Pacific Basin Fund
a number of full and fractional shares of the International Fund, taken at their
then net asset value, having an aggregate net asset value equal to the aggregate
value of the net assets of the Pacific Basin Fund. The aggregate value of the
net assets of the Pacific Basin Fund and the International Fund shall be
determined in accordance with the then current Prospectus of the International
Fund as of closing of the New York Stock Exchange on the Closing Date.
The closing of the transactions contemplated in this Plan (the "Closing") shall
be held at the offices of Principal Management, 680 8th Street, Des Moines, Iowa
50392-0200 at 3:00 p.m. Central Standard Time on October 29, 2002 or on such
earlier or later date as fund management may determine. The date on which the
Closing is to be held as provided in this Plan shall be known as the "Closing
Date."
In the event that on the Closing Date (a) the New York Stock Exchange is closed
for other than customary week-end and holiday closings or (b) trading on said
Exchange is restricted or (c) an emergency exists as a result of which it is not
reasonably practicable for the International Fund or the Pacific Basin Fund to
fairly determine the value of its assets, the Closing Date shall be postponed
until the first business day after the day on which trading shall have been
fully resumed.
As soon as practicable after the Closing, the Pacific Basin Fund shall (a)
distribute on a pro rata basis to the shareholders of record of the Pacific
Basin Fund at the close of business on the Closing Date the shares of the
International Fund received by the Pacific Basin Fund at the Closing in exchange
for all of the Pacific Basin Fund's outstanding shares, and (b) be liquidated in
accordance with applicable law and the Fund's Articles of Incorporation.
For purposes of the distribution of shares of the International Fund to
shareholders of the Pacific Basin Fund, the International Fund shall credit on
the books of the International Fund an appropriate number of shares of the
International Fund to the account of each shareholder of the Pacific Basin Fund.
No certificates will be issued for shares of the International Fund. After the
Closing Date and until surrendered, each outstanding certificate, if any, which,
prior to the Closing Date, represented shares of the Pacific Basin Fund, shall
be deemed for all purposes of the
Fund's Articles of Incorporation and Bylaws to evidence the appropriate number
of shares of the International Fund to be credited on the books of the
International Fund in respect of such shares of the Pacific Basin Fund as
provided above.
Prior to the Closing Date, the Pacific Basin Fund shall deliver to the
International Fund a list setting forth the assets to be assigned, delivered and
transferred to the International Fund, including the securities then owned by
the Pacific Basin Fund and the respective federal income tax bases (on an
identified cost basis) thereof, and the liabilities to be assumed by the
International Fund pursuant to this Plan.
All of the Pacific Basin Fund's portfolio securities shall be delivered by the
Pacific Basin Fund's custodian on the Closing Date to the International Fund or
its custodian, either endorsed in proper form for transfer in such condition as
to constitute good delivery thereof in accordance with the practice of brokers
or, if such securities are held in a securities depository within the meaning of
Rule 17f-4 under the 1940 Act, transferred to an account in the name of the
International Fund or its custodian with said depository. All cash to be
delivered pursuant to this Plan shall be transferred from the Pacific Basin
Fund's account at its custodian to the International Fund's account at its
custodian. If on the Closing Date the Pacific Basin Fund is unable to make good
delivery to the International Fund's custodian of any of the Pacific Basin
Fund's portfolio securities because such securities have not yet been delivered
to the Pacific Basin Fund's custodian by its brokers or by the transfer agent
for such securities, then the delivery requirement with respect to such
securities shall be waived, and the Pacific Basin Fund shall deliver to the
International Fund's custodian on or by said Closing Date with respect to said
undelivered securities executed copies of an agreement of assignment in a form
satisfactory to the International Fund, and a due bill or due bills in form and
substance satisfactory to the custodian, together with such other documents
including brokers' confirmations, as may be reasonably required by the
International Fund.
This Plan may be abandoned and terminated, whether before or after action
thereon by the shareholders of the Pacific Basin Fund and notwithstanding
favorable action by such shareholder, if the Board of Directors believe that the
consummation of the transactions contemplated hereunder would not be in the best
interests of the shareholders of either Fund. This Plan may be amended by the
Fund's Board of Directors at any time, except that after approval by the
shareholders of the Pacific Basin Fund no amendment may be made with respect to
the Plan which in the opinion of the Board of Directors materially adversely
affects the interests of the shareholders of the Pacific Basin Fund.
Except as expressly provided otherwise in this Plan, Principal Management will
pay or cause to be paid all out-of-pocket fees and expenses incurred by the
Pacific Basin Fund or the International Fund in connection with the transactions
contemplated under this Plan, including, but not limited to, accountants' fees,
legal fees, registration fees, printing expenses, transfer taxes (if any) and
the fees of banks and transfer agents.
PRINCIPAL INVESTORS FUND, INC.
DES MOINES, IOWA 50392-0200
STATEMENT OF ADDITIONAL INFORMATION
This Statement of Additional Information is not a prospectus and should be read
in conjunction with the prospectus/ information statement dated October 10, 2002
for the special meeting of the holders of each share class of the common stock,
$.01 par value per share, of the European Fund and the Pacific Basin Fund, each
a series of Principal Investors Fund, Inc., an open-end management investment
company. The meeting is to be held on Monday, October 28, 2002. A copy of the
prospectus/information statement may be obtained from Principal Management
Corporation.
The prospectus/information statement describes certain transactions contemplated
by the proposed combination of the European Fund and the Pacific Basin Fund
(each an "Acquired Fund") with the International Fund pursuant to the terms of a
Plan of Acquisition ("Plan"). Under the Plan, the International Fund would
acquire all the assets and assume all the liabilities of the Acquired Fund and
issue in exchange shares of each share class of its common stock. The Acquired
Fund would immediately redeem all its outstanding shares by distributing the
International Fund shares to its shareholders. As a result, each shareholder
would own shares in the International Fund equal in value to shares of the same
class as he or she had owned in the Acquired Fund at the effective time.
Principal Management Corporation has agreed to pay all expenses incurred by the
series in connection with the Plan.
The date of the Statement of Additional Information is October 10, 2002.
OTHER INFORMATION
The information otherwise required to be set forth in this Statement of
Additional Information is included in the prospectuses and Statements of
Additional Information of the Investors Fund, dated May 1, 2002, and in the
Investors Fund's Annual Report to Shareholders for the year ended October 31,
2001, all of which are incorporated herein by reference.
FINANCIAL STATEMENTS
The financial statements and footnotes thereto of the Principal Investors Fund,
Inc., together with the Report of Independent Auditors thereon, are incorporated
herein by reference from the Principal Investors Fund's Annual Report to
Shareholders for the year ended October 31, 2001.
The financial statements of Principal Investors Fund, Inc. listed above and
incorporated by reference into this Statement of Additional Information have
been audited by Ernst & Young LLP, independent auditors, as set forth in their
report thereon & incorporated herein by reference. Such financial statements are
incorporated by reference in reliance upon such report given on the authority of
such firm as experts in accounting and auditing.
PRO FORMA
STATEMENTS OF ASSETS AND LIABILITIES
PRINCIPAL INVESTORS FUND, INC.
APRIL 30, 2002 (UNAUDITED)
-------------------------------------------------------------------------------
COMBINED
EUROPEAN INTERNATIONAL PACIFIC PRO FORMA INTERNATIONAL
FUND FUND I BASIN FUND ADJUSTMENTS FUND I
- --------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------
INVESTMENT IN
SECURITIES--AT COST.. $ 4,724,023 $ 19,808,419 $ 4,307,367 $ -- $ 28,839,809
============ ============ ============ ======= ============
FOREIGN CURRENCY--AT
COST ................ $ 237,137 $ 112,192 $ 51,693 $ -- $ 401,022
============ ============ ============ ======= ============
ASSETS
Investment in
securities--at value. $ 4,819,030 $ 20,238,900 $ 3,752,694 -- 28,810,624
Foreign currency--at
value................ 239,959 112,751 52,004 -- 404,714
Cash.................. 104,475 20,077 24,220 -- 148,772
Receivables:
Capital Shares sold.. 10 105,359 658 -- 106,027
Dividends and
interest............ 21,952 68,612 12,338 -- 102,902
Investment securities
sold................ 85,757 244,239 738 -- 330,734
Foreign currency
contracts........... 7,716 -- 2,744 -- 10,460
Variation margin on
futures contracts... 2,523 -- -- -- 2,523
Prepaid expenses...... 4,358 3,895 4,383 -- 12,636
------------ ------------ ------------ ------- ------------
Total Assets 5,285,780 20,793,833 3,849,779 -- 29,929,392
LIABILITIES
Payables:
Capital Shares
reacquired.......... 20 -- -- -- 20
Investment securities
purchased........... 158,150 515,645 -- -- 673,795
Foreign currency
contracts........... 15,257 -- 16,215 -- 31,472
------------ ------------ ------------ ------- ------------
Total Liabilities 173,427 515,645 16,215 -- 705,287
------------ ------------ ------------ ------- ------------
NET ASSETS APPLICABLE
TO OUTSTANDING SHARES $ 5,112,353 $ 20,278,188 $ 3,833,564 $ -- $ 29,224,105
============ ============ ============ ======= ============
NET ASSETS CONSIST OF:
Capital Shares and
additional
paid-in-capital...... $ 6,164,836 $ 21,360,550 $ 5,251,562 $ -- $ 32,776,948
Accumulated
undistributed
(overdistributed) net
investment income
(operating loss)..... (3,095) 22,406 (9,283) -- 10,028
Accumulated
undistributed
(overdistributed) net
realized gain (loss). (1,132,686) (1,536,641) (841,271) -- (3,510,598)
Net unrealized
appreciation
(depreciation) of
investments.......... 90,867 430,481 (554,673) -- (33,325)
Net unrealized
appreciation
(depreciation) on
translation of assets
and liabilities in
foreign currencies... (7,569) 1,392 (12,771) -- (18,948)
------------ ------------ ------------ ------- ------------
Total Net Assets $ 5,112,353 $ 20,278,188 $ 3,833,564 $ -- $ 29,224,105
============ ============ ============ ======= ============
CAPITAL STOCK (PAR
VALUE: $.01 A SHARE):
Shares authorized..... 145,000,000 145,000,000 145,000,000 -- 145,000,000
NET ASSET VALUE PER
SHARE:
Advisors Preferred:
Net Assets........... $ 1,015,632 $ 980,188 $ 905,233 $ -- $ 2,901,053
Shares issued and
outstanding.......... 125,054 125,123 125,110 (4,843)/(b)/ 370,444
Net asset value per
share................ $ 8.12 $ 7.83 $ 7.24 -- $ 7.83
============ ============ ============ == ============
Advisors Select: Net
Assets............... $ 1,622,461 $ 1,059,420 $ 904,872 $ -- $ 3,586,753
Shares issued and
outstanding.......... 199,868 135,660 125,107 (1,373)/(b)/ 459,262
Net asset value per
share................ $ 8.12 $ 7.81 $ 7.23 -- $ 7.81
============ ============ ============ == ============
Class J: Net Assets... $ 456,210 $ 6,803,929 $ 211,995 $ -- $ 7,472,134
Shares issued and
outstanding.......... 55,280 868,022 29,450 500/(b)/ 953,252
Net asset value per
share /(a)/.......... $ 8.25 $ 7.84 $ 7.20 -- $ 7.84
============ ============ ============ == ============
Institutional: Net
Assets............... $ 12,259 $ 9,258,202 $ 8,076 $ -- $ 9,278,537
Shares issued and
outstanding.......... 1,490 1,175,443 1,121 (30)/(b)/ 1,178,024
Net asset value per
share................ $ 8.23 $ 7.88 $ 7.20 -- $ 7.88
============ ============ ============ == ============
Preferred: Net Assets. $ 989,739 $ 1,195,850 $ 897,911 $ -- $ 3,083,500
Shares issued and
outstanding.......... 121,733 152,707 124,062 (4,716)/(b)/ 393,786
Net asset value per
share................ $ 8.13 $ 7.83 $ 7.24 -- $ 7.83
============ ============ ============ == ============
Select: Net Assets.... $ 1,016,052 $ 980,599 $ 905,477 $ -- $ 2,902,128
Shares issued and
outstanding.......... 124,929 125,120 125,107 (4,943)/(b)/ 370,213
Net asset value per
share................ $ 8.13 $ 7.84 $ 7.24 -- $ 7.84
============ ============ ============ == ============
/(a) /Redemption price per share is equal to net asset value less any applicable
contingent deferred sales charge.
/(b) /Reflects new shares issued, net of retired shares of European Fund and
Pacific Basin Fund.
See accompanying notes.
PRO FORMA
STATEMENTS OF OPERATIONS
PRINCIPAL INVESTORS FUND, INC.
TWELVE MONTHS ENDED APRIL 30, 2002 (UNAUDITED)
-------------------------------------------------------------------------------
COMBINED
EUROPEAN INTERNATIONAL PACIFIC PRO FORMA INTERNATIONAL
FUND FUND I BASIN FUND ADJUSTMENTS /(A)/ FUND I
- -------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME
(OPERATING LOSS)
Income:
Dividends............ $ 95,974 $ 177,097 $ 39,951 $ -- $ 313,022
Withholding tax on
foreign dividends... (9,780) (21,739) (7,244) -- (38,763)
Interest............. 4,125 15,984 266 -- 20,375
--------- ----------- --------- ------- -----------
Total Income 90,319 171,342 32,973 -- 294,634
Expenses:
Management and
investment advisory
fees................ 50,741 88,062 38,716 (8,520) 168,999
Distribution fees.... 10,989 21,479 7,089 -- 39,557
Administrative
service fees........ 5,426 4,484 4,080 -- 13,990
Service fees......... 10,372 8,560 7,790 -- 26,722
Transfer and
administrative fees
- Class J........... 1,191 13,126 756 -- 15,073
Other expenses -
Class J............. -- 5 1 -- 6
--------- ----------- --------- ------- -----------
Total Gross Expenses 78,719 135,716 58,432 -- 272,867
Less: Fees paid
indirectly.......... 4 -- -- -- 4
--------- ----------- --------- ------- -----------
Total Net Expenses 78,715 135,716 58,432 -- 272,863
--------- ----------- --------- ------- -----------
Net Investment Income
(Operating Loss) 11,604 35,626 (25,459) -- 21,771
NET REALIZED AND
UNREALIZED GAIN
(LOSS) ON INVESTMENTS
AND FOREIGN
CURRENCIES
Net realized gain
(loss) from:
Investment
transactions........ (986,504) (1,321,873) (796,474) -- (3,104,851)
Short sales.......... 12,504 -- -- -- 12,504
Foreign currency
transactions........ 927 (3,178) 12,148 -- 9,897
Futures contracts.... (2,862) -- -- -- (2,862)
Change in unrealized
appreciation/depreciation
of:
Investments........... 229,091 612,268 (97,760) -- 743,599
Futures contracts..... (4,140) -- -- -- (4,140)
Translation of assets
and liabilities in
foreign currencies... (13,033) 1,538 (9,013) -- (20,508)
--------- ----------- --------- ------- -----------
Net Realized and
Unrealized Gain (Loss)
on Investments and
Foreign Currencies (764,017) (711,245) (891,099) -- (2,366,361)
--------- ----------- --------- ------- -----------
Net Increase (Decrease)
in Net Assets
Resulting from
Operations $(752,413) $ (675,619) $(916,558) $ -- $(2,344,590)
========= =========== ========= ======= ===========
/(a) /Reflects estimated reduction in expenses due to lower management and
investment advisory fees, larger net assets and greater economies of scale,
and assumes the International Fund I fee structure was in effect for the
twelve months ended April 30, 2002.
See accompanying notes.
NOTES TO PRO FORMA FINANCIAL STATEMENTS
(UNAUDITED)
-------------------------------------------------------------------------------
1. BASIS OF COMBINATION
On September 9, 2002, the Board of Directors of Principal Investors Fund, Inc.
European Fund and Pacific Basin Fund approved an Agreement and Plan of
Reorganization whereby, subject to approval by the shareholders of European Fund
and Pacific Basin Fund, International Fund I will acquire all the assets of the
European Fund and Pacific Basin Fund subject to the liabilities of such funds,
in exchange for a number of shares equal to the pro rata net assets of shares of
the International Fund I (the "Merger").
The Merger will be accounted for as a tax-free merger of investment companies.
The pro forma combined financial statements are presented for the information of
the reader and may not necessarily be representative of what the actual combined
financial statements would have been had the reorganization occurred at April
30, 2002. The unaudited pro forma schedule of investments and statement of
assets and liabilities reflect the financial position of the European Fund,
International Fund I, and the Pacific Basin Fund at April 30, 2002. The
unaudited pro forma statement of operations reflects the results of operations
of the European Fund, International Fund I and the Pacific Basin fund for the
twelve months ended April 30, 2002. The statements have been derived from the
Funds' respective books and records utilized in calculating daily net asset
value at the dates indicated above for European Fund, International Fund I, and
Pacific Basin Fund under accounting principles generally accepted in the United
States. The historical cost of investment securities will be carried forward to
the surviving entity and results of operations of International Fund I for
pre-combination periods will not be restated.
The pro forma schedule of investments and statements of assets and liabilities
and operations should be read in conjunction with the historical financial
statements of the Funds incorporated by reference in the Statements of
Additional Information.
2. SECURITY VALUATION
European Fund, International Fund I and Pacific Basin Fund value securities for
which market quotations are readily available at market value, which is
determined using the last reported sale price or, if no sales are reported, as
is regularly the case for some securities traded over-the-counter, the last
reported bid price. When reliable market quotations are not considered to be
readily available, which may be the case, for example, with respect to certain
debt securities, preferred stocks and international securities the investments
are valued by using prices provided by market makers or estimates of market
values obtained from yield data and other factors relating to instruments or
securities with similar characteristics in accordance with procedures
established in good faith by the Fund's Board of Directors. Securities with
remaining maturities of 60 days or less are valued at amortized cost, which
approximates market.
3. CAPITAL SHARES
The pro forma net asset value per share assumes additional shares of common
stock issued in connection with the proposed acquisition of European Fund and
Pacific Basin Fund by International Fund I as of April 30, 2002. The number of
additional shares issued was calculated by dividing the net asset value of each
class of European Fund and Pacific Basin Fund by the respective class net asset
value per share of International Fund I.
4. PRO FORMA ADJUSTMENTS
The accompanying pro forma financial statements reflect changes in fund shares
as if the merger had taken place on April 30, 2002. The expenses of the European
Fund and Pacific Basin Fund were adjusted assuming the fee structure of
International Fund I was in effect for the twelve months ended April 30, 2002.
5. DISTRIBUTIONS
No provision for federal income taxes is considered necessary because each fund
is qualified as a "regulated investment company" under the Internal Revenue Code
and intends to distribute each year substantially all of its net investment
income and realized capital gains to shareholders.
European Fund, International Fund I and Pacific Basin Fund will distribute
substantially all of their net investment income and any realized gains prior to
the merger date.
Principal Amount or Number of Shares
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
European International Pacific Basin
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Fund Fund I Fund Combined
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
COMMON STOCKS (93.97%)
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Advertising Sales (0.06%)
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
23,000 23,000 Clear Media 1
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Advertising Services (0.86%)
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
2,226 2,226 Aegis Group
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
23,424 23,424 WPP Group
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Aerospace & Defense (0.93%)
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
17,030 36,250 53,280 BAE Systems
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Airlines (0.86%)
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
30,000 30,000 China Southern Airlines 1
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
3,528 11,071 14,599 Deutsche Lufthansa
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
2,000 2,000 Singapore Airlines
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Airport Development & Maintenance (0.14%)
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
2,000 2,000 Beijing Capital International Airport
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
5,000 5,000 Japan Airport Terminal
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Apparel Manufacturers (0.16%)
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
5,000 5,000 Onward Kashiyama
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Applications Software (0.02%)
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
2,338 2,338 Aldata Solution Oyj 1
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Audio & Video Products (1.17%)
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
4,000 4,000 Matsushita Electric Industrial
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
6,100 6,100 Pioneer
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
3,100 3,100 Sony
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Auto-Cars & Light Trucks (4.83%)
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
2,213 5,370 7,583 Bayerische Motoren Werke
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
20,000 20,000 Denway Motors
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
8,000 8,000 Fuji Heavy Industries
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
3,737 3,737 Honda Motor
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
2,770 2,770 Hyundai Motor
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
35,780 19,000 54,780 Nissan Motor
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
2,481 3,077 5,558 PSA Peugeot Citroen
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
3,500 3,500 Toyota Motor
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Beverages-Wine & Spirits (0.73%)
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
16,720 16,720 Allied Domecq
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
8,002 8,002 Diageo
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Brewery (0.95%)
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
9,305 9,305 Interbrew 1
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Broadcasting Services & Programming (0.54%)
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
2,751 2,751 Grupo Televisa
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
36 36 SKY Perfect Communications 1
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Building & Construction Products-Miscellaneous (0.26%)
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
4,426 4,426 CRH
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Building Products-Cement & Aggregate (1.65%)
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
19,200 19,200 Cemex
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
3,785 3,785 Lafarge
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Building-Residential & Commercial ( 0.12%)
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
5,000 5,000 Sekisui House
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Cellular Telecommunications (2.19%)
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
9,300 9,300 Advanced Info Service Public
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
4,216 4,216 America Movil 1
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
28 21 49 NTT DoCoMo
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
102,451 162,522 264,973 Vodafone Group
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Chemicals-Diversified (2.49%)
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
2,761 2,761 Akzo Nobel
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
23,000 23,000 Asahi Kasei
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
5,961 5,961 DSMA
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
2,120 2,120 Shin-Estu Chemical
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
20,000 20,000 Showa Denko K. K.
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
15,000 15,000 Sumitomo Chemical
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
14,000 14,000 Tokuyama
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
10,000 10,000 Tosoh
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Chemicals-Specialty (0.28%)
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
1,079 1,079 Ciba Specialty Chemicals 1
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Commercial Banks (4.09%)
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
2,800 2,800 Bangkok Bank
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
94,000 94,000 Chinatrust Commercial Bank
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
2,316 2,316 Danske Bank
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
17,200 17,200 DnB Holding
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
16,314 16,314 Fortis
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
1,000 1,000 Hang Seng Bank
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
22,107 22,107 IntesaBci
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
3,988 3,988 Kookmin Bank
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
1,062 1,062 Kookmin Bank 1
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
5,440 5,440 National Bank of Canada
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
30,196 30,196 Nordea
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Commercial Services (0.08%)
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
10,000 10,000 SIA Engineering
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
40 40 Societe Generale de Surveillance Holding
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Computers-Integrated Systems (0.84%)
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
16,000 16,000 Fujitsu
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
2,800 2,800 Meitec
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
200 200 Obic
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Computers-Memory Devices (0.15%)
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
800 800 TDK
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Containers-Paper & Plastic (0.08%)
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
6,035 6,035 Amcor
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Cosmetics & Toiletries (0.34%)
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
3,000 3,000 Kao
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
1,300 1,300 Kose
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Distribution-Wholesale (0.64%)
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
7,760 7,760 Buhrmann
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
7,000 7,000 Esprit Holdings
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
3,790 3,790 Hagemeyer
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Diversified Financial Services (0.31%)
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
6,600 6,600 Shinhan Financial Group 1
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Diversified Minerals (1.55%)
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
5,100 5,100 Anglo American
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
28,555 9,982 38,537 BHP Billiton
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
2,610 2,610 Cia Vale do Rio Doce
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
5,622 5,622 WMC
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
4,503 4,503 Xstrata
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Diversified Operations (0.10%)
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
3,000 3,000 Hutchison Whampoa
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
297 297 Patrick
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Diversified Operators-Commercial Service (0.30%)
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
4,611 4,611 Brambles Industries
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
1,999 1,999 Vivendi Universal
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Electric Components-Miscellaneous (0.72%)
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
4,000 4,000 Anritsu
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
2,000 2,000 Hosiden
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
4,000 4,000 Johnson Electric Holdings
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
9,000 9,000 NEC
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
5,000 5,000 Omron
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Electric-Generation (0.03%)
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
24,000 24,000 Beijing Datang Power Generation
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Electric-Integrated (1.19%)
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
3,262 3,262 E.On AG
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
4,950 4,950 Scottish & Southern Energy
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
22,440 22,440 Scottish Power
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Electric Products-Miscellaneous (0.06%)
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
11,000 11,000 Lindeteves-Jacoberg 1
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
18,000 18,000 Techtronic Industries
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Electronic Components-Miscellaneous (2.96%)
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
5,748 5,748 Flextronics International 1
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
4,716 7,672 12,388 Koninklijke Philips Electronics
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
2,198 2,198 Samsung Electronics
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Electronic Components-Semiconductor (0.54%)
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
4,465 4,465 Infineon Technologies
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
5,000 5,000 New Japan Radio
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
300 300 Rohm
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Electronic Measurement Instruments (0.22%)
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
600 600 Advantest
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
100 100 Keyence
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Engineering-Research & Development Services (0.26%)
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
1,479 1,479 Altran Technologies
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Finance-Consumer Loans (0.08%)
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
300 300 Acom
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Finance-Investment Banker & Broker (0.82%)
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
21,000 21,000 Nikko Securities
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
10,293 10,293 Nomura Securities
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Finance-Leasing Company (0.34%)
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
1,200 1,200 Orix
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Finance-Other Services (0.35%)
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
100,000 100,000 Fubon Financial Holding 1
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Food-Catering (0.38%)
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
18,066 18,066 Compass Group 1
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Food-Miscellaneous/Diversified (2.39%)
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
350 1,746 2,096 Nestle
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
3,142 3,142 Unilever
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Food-Retail (1.47%)
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
2,059 5,428 7,487 Koninklijke Ahold
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
43,301 43,301 Safeway
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
13,225 13,225 Tesco
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Gas-Distribution (0.67% )
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
64,047 64,047 Centrica
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Gas-Transportation (0.30%)
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
20,589 20,589 Lattice Group
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
11,173 11,173 Snam Rete Gas 1
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Human Resources (0.17%)
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
796 796 Adecco
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Import & Export (0.86%)
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
2,200 2,200 ITOCHU
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
19,515 19,515 Mitsubishi
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
16,000 16,000 Sumitomo
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Instruments-Scientific (0.04%)
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
1,000 1,000 Moritex
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Internet Security (0.19%)
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
3,030 3,030 Check Point Software Technologies 1
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Investment Management & Advisory Services (0.40%)
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
10,963 10,963 Amvescap
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Life & Health Insurance (0.04%)
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
2,000 2,000 Great Eastern Holdings
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Machinery-Construction & Mining (0.31%)
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
3,900 3,900 Atlas Copco
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Machinery-Electrical (0.90%)
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
3,945 3,945 Schneider Electric
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
600 600 SMC
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Machinery-General Industry (0.11%)
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
5,000 5,000 Nippon Thompson
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Machinery-Print Trade (0.13%)
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
3,000 3,000 Komori
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Machinery Tools & Related Products (0.37%)
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
4,626 4,626 Sandvik
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Medical-Drugs (6.90%)
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
905 905 AstraZeneca
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
1,922 5,285 7,207 Aventis
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
3,233 9,956 13,189 GlaxoSmithKline 1
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
3,276 6,758 10,034 Novartis
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
1,418 1,418 Pharmacia
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
1,284 1,284 Sanofi-Synthelabo
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
3,164 3,164 Schering
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
2,291 2,291 Shire Pharmaceuticals Group 1
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
3,317 2,000 5,317 Takeda Chemical Industries
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
3,993 1,000 4,993 Yamanouchi Pharmaceutical
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Medical Laboratory & Testing Service (0.02%)
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
11,250 11,250 Gribbles Group 1
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Metal-Aluminum (0.66%)
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
5,068 5,068 Alcan
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
25,000 25,000 Aluminum Corp. of China 1
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Metal-Diversified (0.70%)
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
6,495 6,495 Pearson
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
108 6,750 6,858 Rio Tinto
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Metal Processors & Fabricators (0.34%)
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
2,075 2,075 Pechiney
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Money Center Banks (10.83%)
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
15,240 15,240 ABN AMRO Holding
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
4,891 4,891 Banco Bilbao Vizcaya Argentaria
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
24,932 31,460 56,392 Barclays
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
726 726 Bayerische Hypo-und Vereinsbank
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
2,583 9,824 12,407 BNP Paribas
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
3,170 6,260 9,430 Credit Suisse Group
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
2,000 2,000 DBS Group Holdings
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
4,245 800 5,045 HSBC Holdings
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
3,000 3,000 Oversea-Chinese Banking
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
10,856 10,856 Royal Bank of Canada
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
1,974 1,974 Royal Bank of Scotland
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
13,417 13,417 Standard Chartered
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
21,000 21,000 Sumitomo Mitsui Banking
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
8,297 8,297 UBS
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
31 31 UFJ Holdings 1
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
4,000 4,000 United Overseas Bank
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Mortgage Banks (1.16%)
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
5,005 14,424 19,429 Abbey National
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
476 476 DePfa Bank
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Multi-Line Insurance (3.72%)
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
1,565 1,565 Assurances Generales de France
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
3,752 3,752 Axa
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
4,831 11,400 16,231 CGNU
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
5,939 10,687 16,626 ING Groep
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
24,900 24,900 Riunione Adriatica di Sicurta
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Multimedia (1.35%)
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
10,307 2,430 12,737 News
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
5,000 5,000 Tokyo Broadcasting System
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Office Automation & Equipment (0.55%)
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
4,180 4,180 Canon
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Oil Company-Exploration & Production (0.47%)
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
4,153 4,153 Canadian Natural Resources
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Oil Company-Integrated (6.78%)
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
7,972 7,942 15,914 BP Amoco
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
54,000 54,000 China Petroleum & Chemical
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
8,718 27,316 36,034 ENI
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
15,428 57,069 72,497 Shell Transport & Trading
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
1,598 3,462 5,060 TotalFinaElf
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Oil-Field Services (0.26%)
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
11,780 11,780 Saipem
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Oil Refining & Marketing (0.46%)
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
15,784 15,784 Statoil 1
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Paper & Related Products (0.80%)
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
2,158 2,158 Norske Skogindustrier
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
3,067 8,010 11,077 Stora Enso Oyj
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
1,554 1,554 UPM-Kymmene Oyj
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Property & Casualty Insurance (0.19%)
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
30,367 30,367 NRMA Insurance Group 1
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Public Thoroughfares (0.70%)
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
41,190 41,190 Brisa-Auto Estradas de Portugal
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Publishing-Newspapers (0.15%)
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
16,700 16,700 John Fairfax Holdings
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
1,000 1,000 Singapore Press Holdings
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Publishing-Periodicals (0.80%)
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
13,308 13,308 United Business Media
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
6,584 6,584 Wolters Kluwer
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Real Estate Operator & Developer (0.31%)
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
3,000 3,000 Cheung Kong
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
11,169 11,169 Kerry Properties
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
3,000 3,000 Sun Hung Kai Properties
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
2,715 2,715 Westfield Holdings
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Reinsurance (1.90%)
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
1,805 1,805 Muenchener Rueckversicherungs-Gesellschaft
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
1,067 1,067 Swiss Reinsurance 1
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Research & Development (0.03%)
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
5,403 5,403 Silex Systems 1
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Respiratory Products (0.08%)
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
6,560 6,560 Resmed 1
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Retail-Apparel & Shoe (0.68%)
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
11,156 11,156 Debenhams
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
26,701 26,701 Matalan 1
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Retail-Consumer Electronics (0.34%)
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
1,300 1,300 Yamada Denki
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Retail-Discount (0.05%)
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
8,764 8,764 Harvey Norman Holdings
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Retail-Major Department Store (1.34%)
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
10,425 10,425 Metro
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
532 532 Pinault-Printemps-Redoute
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Retail-Miscellaneous/Diversified (0.35%)
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
4,000 4,000 Aeon
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Semiconductor Component-Integrated Circuits (1.55%)
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
63,600 22,000 85,600 Taiwan Semiconductor Manufacturing 1
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
155,300 155,300 United Microelectronics 1
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Semiconductor Equipment (0.11%)
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
1,449 1,449 ASM Lithography Holding 1
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Soap & Cleaning Products (0.38%)
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
6,235 6,235 Reckitt Benckiser
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Steel-Producers (1.33%)
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
2,821 2,821 Acerinox
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
7,681 7,681 Arcelor 1
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
25,000 25,000 Nippon Steel
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
1,398 1,398 Pohang Iron & Steel
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Telecommunication Equipment (0.31%)
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
5,600 5,600 Nokia
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Telecommunication Services (0.72%)
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
4,459 4,459 Amdocs 1
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
5,405 5,405 BCE
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
100 7,100 7,200 Telstra
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Telephone-Integrated (1.75%)
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
9 9 Japan Telecom
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
7,218 7,218 KT
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
13 13 Nippon Telegraph & Telephone
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
10,874 10,874 Portugal Telecom
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
3,244 3,244 TDC
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
5,441 6,936 12,377 Telecom Italia
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Television (0.12%)
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
18,783 18,783 Granada
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Toys (0.66%)
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
8,647 8,647 Sega 1
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Transport-Rail (0.48%)
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
18 15 33 East Japan Railway
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Transport-Services (0.68%)
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
5,600 5,600 Exel
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
5,800 5,800 Transports Publics Genevois
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Water (0.69%)
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
1,883 4,888 6,771 Suez
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Water Treatment Systems (0.20%)
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
5,000 5,000 Kurita Water Industries
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
933 933 Vivendi Environnement 1
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Wire & Cable Products (0.05%)
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
2,000 2,000 Sumitomo Electric Industries
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Total Common Stocks
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
2,796,487
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
418,900 1,676,395 701,192 2,796,487
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
PREFERRED STOCKS (0.08%)
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Multimedia (0.08%)
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
4,222 4,222 News
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
COMMERCIAL PAPER (4.53%)
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Finance-Mortgage Loan/Banker (4.53%)
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Investment in Joint Trading Account;
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Federal Home Loan Bank System
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
1,324,604 1,324,604 1.79%; 05/01/02
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Market Value
- --------------------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------------------
European International Pacific Basin
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Fund Fund I Fund Combined
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
COMMON STOCKS (93.97%)
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Advertising Sales (0.06%)
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Clear Media 1 $ 16,662 $ 16,662
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Advertising Services (0.86%)
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Aegis Group $ 3,552 3,552
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
WPP Group $ 249,191 249,191
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Aerospace & Defense (0.93%)
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
BAE Systems 86,676 184,499 271,175
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Airlines (0.86%)
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
China Southern Airlines 1 10,097 10,097
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Deutsche Lufthansa 54,362 170,591 224,953
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Singapore Airlines 15,455 15,455
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Airport Development & Maintenance (0.14%)
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Beijing Capital International Airport 477 477
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Japan Airport Terminal 39,992 39,992
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Apparel Manufacturers (0.16%)
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Onward Kashiyama 46,456 46,456
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Applications Software (0.02%)
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Aldata Solution Oyj 1 4,403 4,403
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Audio & Video Products (1.17%)
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Matsushita Electric Industrial 53,582 53,582
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Pioneer 120,432 120,432
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Sony 166,589 166,589
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Auto-Cars & Light Trucks (4.83%)
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Bayerische Motoren Werke 88,340 214,364 302,704
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Denway Motors 5,962 5,962
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Fuji Heavy Industries 40,374 40,374
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Honda Motor 167,641 167,641
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Hyundai Motor 102,747 102,747
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Nissan Motor 275,317 146,199 421,516
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
PSA Peugeot Citroen 123,407 153,052 276,459
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Toyota Motor 95,405 95,405
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Beverages-Wine & Spirits (0.73%)
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Allied Domecq 107,089 107,089
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Diageo 106,176 106,176
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Brewery (0.95%)
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Interbrew 1 276,948 276,948
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Broadcasting Services & Programming (0.54%)
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Grupo Televisa 124,345 124,345
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
SKY Perfect Communications 1 32,243 32,243
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Building & Construction Products-Miscellaneous (0.26%)
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
CRH 76,056 76,056
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Building Products-Cement & Aggregate (1.65%)
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Cemex 121,647 121,647
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Lafarge 359,143 359,143
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Building-Residential & Commercial ( 0.12%)
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Sekisui House 34,385 34,385
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Cellular Telecommunications (2.19%)
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Advanced Info Service Public 9,460 9,460
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
America Movil 1 78,628 78,628
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
NTT DoCoMo 71,309 53,404 124,713
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Vodafone Group 165,352 262,304 427,656
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Chemicals-Diversified (2.49%)
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Akzo Nobel 118,699 118,699
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Asahi Kasei 87,772 87,772
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
DSMA 265,242 265,242
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Shin-Estu Chemical 87,343 87,343
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Showa Denko K. K. 31,464 31,464
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Sumitomo Chemical 63,435 63,435
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Tokuyama 44,704 44,704
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Tosoh 29,206 29,206
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Chemicals-Specialty (0.28%)
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Ciba Specialty Chemicals 1 83,251 83,251
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Commercial Banks (4.09%)
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Bangkok Bank 4,143 4,143
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Chinatrust Commercial Bank 83,126 83,126
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Danske Bank 41,825 41,825
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
DnB Holding 90,850 90,850
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Fortis 374,717 374,717
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Hang Seng Bank 11,443 11,443
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
IntesaBci 71,515 71,515
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Kookmin Bank 181,509 181,509
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Kookmin Bank 1 49,396 49,396
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
National Bank of Canada 115,754 115,754
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Nordea 171,915 171,915
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Commercial Services (0.08%)
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
SIA Engineering 11,867 11,867
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Societe Generale de Surveillance Holding 10,864 10,864
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Computers-Integrated Systems (0.84%)
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Fujitsu 127,103 127,103
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Meitec 78,941 78,941
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Obic 38,162 38,162
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Computers-Memory Devices (0.15%)
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
TDK 43,614 43,614
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Containers-Paper & Plastic (0.08%)
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Amcor 24,014 24,014
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Cosmetics & Toiletries (0.34%)
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Kao 58,645 58,645
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Kose 39,790 39,790
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Distribution-Wholesale (0.64%)
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Buhrmann 99,364 99,364
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Esprit Holdings 13,463 13,463
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Hagemeyer 74,963 74,963
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Diversified Financial Services (0.31%)
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Shinhan Financial Group 1 89,255 89,255
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Diversified Minerals (1.55%)
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Anglo American 80,417 80,417
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
BHP Billiton 152,720 57,892 210,612
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Cia Vale do Rio Doce 71,227 71,227
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
WMC 27,805 27,805
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Xstrata 61,751 61,751
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Diversified Operations (0.10%)
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Hutchison Whampoa 26,349 26,349
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Patrick 2,655 2,655
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Diversified Operators-Commercial Service (0.30%)
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Brambles Industries 24,910 24,910
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Vivendi Universal 63,748 63,748
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Electric Components-Miscellaneous (0.72%)
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Anritsu 31,838 31,838
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Hosiden 28,800 28,800
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Johnson Electric Holdings 6,052 6,052
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
NEC 69,393 69,393
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Omron 75,234 75,234
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Electric-Generation (0.03%)
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Beijing Datang Power Generation 9,309 9,309
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Electric-Integrated (1.19%)
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
E.On AG 168,868 168,868
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Scottish & Southern Energy 48,692 48,692
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Scottish Power 129,172 129,172
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Electric Products-Miscellaneous (0.06%)
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Lindeteves-Jacoberg 1 1,882 1,882
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Techtronic Industries 14,771 14,771
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Electronic Components-Miscellaneous (2.96%)
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Flextronics International 1 79,610 79,610
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Koninklijke Philips Electronics 145,633 236,917 382,550
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Samsung Electronics 402,883 402,883
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Electronic Components-Semiconductor (0.54%)
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Infineon Technologies 81,032 81,032
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
New Japan Radio 31,269 31,269
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Rohm 44,743 44,743
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Electronic Measurement Instruments (0.22%)
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Advantest 43,224 43,224
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Keyence 20,242 20,242
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Engineering-Research & Development Services (0.26%)
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Altran Technologies 77,298 77,298
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Finance-Consumer Loans (0.08%)
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Acom 22,897 22,897
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Finance-Investment Banker & Broker (0.82%)
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Nikko Securities 94,860 94,860
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Nomura Securities 143,493 143,493
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Finance-Leasing Company (0.34%)
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Orix 99,533 99,533
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Finance-Other Services (0.35%)
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Fubon Financial Holding 1 101,970 101,970
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Food-Catering (0.38%)
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Compass Group 1 112,485 112,485
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Food-Miscellaneous/Diversified (2.39%)
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Nestle 82,742 412,763 495,505
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Unilever 202,435 202,435
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Food-Retail (1.47%)
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Koninklijke Ahold 51,486 135,730 187,216
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Safeway 191,674 191,674
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Tesco 50,447 50,447
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Gas-Distribution (0.67% )
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Centrica 197,172 197,172
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Gas-Transportation (0.30%)
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Lattice Group 55,658 55,658
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Snam Rete Gas 1 31,714 31,714
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Human Resources (0.17%)
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Adecco 50,361 50,361
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Import & Export (0.86%)
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
ITOCHU 7,025 7,025
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Mitsubishi 146,362 146,362
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Sumitomo 97,695 97,695
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Instruments-Scientific (0.04%)
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Moritex 11,939 11,939
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Internet Security (0.19%)
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Check Point Software Technologies 1 54,995 54,995
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Investment Management & Advisory Services (0.40%)
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Amvescap 115,669 115,669
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Life & Health Insurance (0.04%)
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Great Eastern Holdings 12,474 12,474
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Machinery-Construction & Mining (0.31%)
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Atlas Copco 91,473 91,473
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Machinery-Electrical (0.90%)
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Schneider Electric 190,362 190,362
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
SMC 71,869 71,869
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Machinery-General Industry (0.11%)
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Nippon Thompson 30,880 30,880
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Machinery-Print Trade (0.13%)
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Komori 38,458 38,458
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Machinery Tools & Related Products (0.37%)
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Sandvik 107,150 107,150
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Medical-Drugs (6.90%)
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
AstraZeneca 42,401 42,401
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Aventis 136,561 375,509 512,070
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
GlaxoSmithKline 1 78,210 240,848 319,058
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Novartis 137,402 283,443 420,845
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Pharmacia 58,582 58,582
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Sanofi-Synthelabo 82,206 82,206
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Schering 192,733 192,733
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Shire Pharmaceuticals Group 1 16,994 16,994
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Takeda Chemical Industries 145,183 87,539 232,722
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Yamanouchi Pharmaceutical 110,087 27,570 137,657
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Medical Laboratory & Testing Service (0.02%)
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Gribbles Group 1 4,712 4,712
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Metal-Aluminum (0.66%)
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Alcan 185,641 185,641
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Aluminum Corp. of China 1 4,488 4,488
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Metal-Diversified (0.70%)
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Pearson 77,946 77,946
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Rio Tinto 2,007 125,419 127,426
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Metal Processors & Fabricators (0.34%)
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Pechiney 100,407 100,407
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Money Center Banks (10.83%)
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
ABN AMRO Holding 302,121 302,121
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Banco Bilbao Vizcaya Argentaria 57,030 57,030
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Barclays 218,909 276,226 495,135
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Bayerische Hypo-und Vereinsbank 25,514 25,514
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
BNP Paribas 134,997 513,439 648,436
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Credit Suisse Group 112,998 223,144 336,142
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
DBS Group Holdings 15,455 15,455
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
HSBC Holdings 50,108 9,514 59,622
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Oversea-Chinese Banking 21,527 21,527
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Royal Bank of Canada 380,176 380,176
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Royal Bank of Scotland 56,614 56,614
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Standard Chartered 165,219 165,219
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Sumitomo Mitsui Banking 93,551 93,551
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
UBS 399,973 399,973
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
UFJ Holdings 1 76,776 76,776
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
United Overseas Bank 31,793 31,793
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Mortgage Banks (1.16%)
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Abbey National 79,575 229,329 308,904
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
DePfa Bank 32,598 32,598
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Multi-Line Insurance (3.72%)
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Assurances Generales de France 78,972 78,972
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Axa 79,621 79,621
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
CGNU 49,774 117,456 167,230
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
ING Groep 156,803 282,161 438,964
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Riunione Adriatica di Sicurta 323,098 323,098
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Multimedia (1.35%)
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
News 271,899 15,868 287,767
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Tokyo Broadcasting System 106,308 106,308
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Office Automation & Equipment (0.55%)
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Canon 161,296 161,296
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Oil Company-Exploration & Production (0.47%)
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Canadian Natural Resources 137,580 137,580
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Oil Company-Integrated (6.78%)
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
BP Amoco 68,012 67,765 135,777
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
China Petroleum & Chemical 8,655 8,655
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
ENI 133,941 419,676 553,617
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Shell Transport & Trading 109,943 406,685 516,628
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
TotalFinaElf 242,201 524,718 766,919
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Oil-Field Services (0.26%)
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Saipem 76,746 76,746
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Oil Refining & Marketing (0.46%)
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Statoil 1 134,258 134,258
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Paper & Related Products (0.80%)
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Norske Skogindustrier 38,380 38,380
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Stora Enso Oyj 38,996 101,843 140,839
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
UPM-Kymmene Oyj 54,332 54,332
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Property & Casualty Insurance (0.19%)
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
NRMA Insurance Group 1 54,466 54,466
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Public Thoroughfares (0.70%)
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Brisa-Auto Estradas de Portugal 204,140 204,140
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Publishing-Newspapers (0.15%)
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
John Fairfax Holdings 31,926 31,926
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Singapore Press Holdings 12,419 12,419
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Publishing-Periodicals (0.80%)
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
United Business Media 101,623 101,623
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Wolters Kluwer 133,489 133,489
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Real Estate Operator & Developer (0.31%)
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Cheung Kong 28,561 28,561
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Kerry Properties 11,886 11,886
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Sun Hung Kai Properties 26,156 26,156
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Westfield Holdings 23,517 23,517
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Reinsurance (1.90%)
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Muenchener Rueckversicherungs-Gesellschaft 447,284 447,284
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Swiss Reinsurance 1 107,681 107,681
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Research & Development (0.03%)
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Silex Systems 1 8,849 8,849
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Respiratory Products (0.08%)
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Resmed 1 23,954 23,954
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Retail-Apparel & Shoe (0.68%)
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Debenhams 62,998 62,998
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Matalan 1 136,482 136,482
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Retail-Consumer Electronics (0.34%)
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Yamada Denki 100,031 100,031
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Retail-Discount (0.05%)
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Harvey Norman Holdings 15,342 15,342
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Retail-Major Department Store (1.34%)
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Metro 333,486 333,486
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Pinault-Printemps-Redoute 60,403 60,403
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Retail-Miscellaneous/Diversified (0.35%)
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Aeon 103,427 103,427
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Semiconductor Component-Integrated Circuits (1.55%)
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Taiwan Semiconductor Manufacturing 1 160,301 55,450 215,751
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
United Microelectronics 1 237,092 237,092
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Semiconductor Equipment (0.11%)
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
ASM Lithography Holding 1 32,903 32,903
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Soap & Cleaning Products (0.38%)
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Reckitt Benckiser 110,398 110,398
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Steel-Producers (1.33%)
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Acerinox 108,035 108,035
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Arcelor 1 105,897 105,897
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Nippon Steel 38,162 38,162
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Pohang Iron & Steel 138,822 138,822
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Telecommunication Equipment (0.31%)
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Nokia 90,629 90,629
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Telecommunication Services (0.72%)
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Amdocs 1 96,894 96,894
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
BCE 94,865 94,865
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Telstra 273 19,407 19,680
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Telephone-Integrated (1.75%)
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Japan Telecom 26,636 26,636
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
KT 163,487 163,487
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Nippon Telegraph & Telephone 51,129 51,129
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Portugal Telecom 79,368 79,368
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
TDC 93,577 93,577
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Telecom Italia 43,293 55,188 98,481
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Television (0.12%)
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Granada 35,105 35,105
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Toys (0.66%)
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Sega 1 193,951 193,951
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Transport-Rail (0.48%)
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
East Japan Railway 76,121 63,435 139,556
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Transport-Services (0.68%)
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Exel 71,816 71,816
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Transports Publics Genevois 125,694 125,694
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Water (0.69%)
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Suez 56,078 145,571 201,649
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Water Treatment Systems (0.20%)
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Kurita Water Industries 59,229 59,229
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Vivendi Environnement 1 345 345
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Wire & Cable Products (0.05%)
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Sumitomo Electric Industries 14,252 14,252
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Total Common Stocks 4,819,030 18,914,296 3,729,432 27,462,758
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
PREFERRED STOCKS (0.08%)
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Multimedia (0.08%)
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
News 23,262 23,262
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
COMMERCIAL PAPER (4.53%)
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Finance-Mortgage Loan/Banker (4.53%)
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Investment in Joint Trading Account;
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Federal Home Loan Bank System
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
1.79%; 05/01/02 1,324,604 1,324,604
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Total Portfolio Investments (98.58%) 4,819,030 20,238,900 3,752,694 28,810,624
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Cash and receivables, net of liabilities (1.42%) 293,323 39,288 80,870 413,481
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Total Net Assets (100.00%) $ 5,112,353 $ 20,278,188 $ 3,833,564 $ 29,224,105
- ------------------------------------------------------------====================================================================
- ------------------------------------------------------------====================================================================
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
1 Non-Income Producing Security.
FUTURES CONTRACTS
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5 Dow Jones Euro
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Stoxx 50 Commitment Buy
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June, 2002 Opening Market Value $ 164,593
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Futures Current Market Value $ 160,441
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Unrealized Gain (Loss) $ (4,152)
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PART C: OTHER INFORMATION
Item 15. Indemnification.
The information required in response to this item is incorporated herein by
reference to Item 25 of Post-Effective Amendment No. 24 to Registrant's
Registration Statement on Form N-1A (File No. 33-59474) as filed with the
Commission on May 21, 2002.
Item 16. Exhibits.
Exhibit Number Description
(1)(a)
Articles of Amendment and Restatement of the Charter of the Registrant -
incorporated herein by reference to Exhibit 1(b) to Post-Effective
Amendment No. 12 to Registrant's Registration Statement on Form N-1A (File
No. 33-59474) as filed with the Commission on September 22, 2000.
(1)(b)
Articles Supplementary are incorporated herein by reference to Exhibit
(a)(4) to Post-Effective Amendment No. 19 to Registrant's Registration
Statement on Form N1-A (File No. 33-59474) as filed with the Commission on
October 12, 2001.
(2) By-Laws of the Registrant - incorporated herein by reference to Exhibit (b)
to Post-Effective Amendment No. 12 to Registrant's Registration Statement
on Form N-1A (File No. 33-59474) as filed with the Commission on September
22, 2000.
(3) None
(4) Copy of Plan of Acquisition (included as Appendix A to the Information
Statement/Prospectus, which is part of the Registration Statement on Form
N-14).
(5) None
(6)(a)
Management Agreement with Principal Management Corporation - incorporated
herein by reference to Exhibit (d)(1)c to Post-Effective Amendment No. 13
to Registrant's Registration Statement on Form N-1A (File No. 33-59474) as
filed with the Commission on December 5, 2000.
(6)(b)
Sub-Advisory Agreement with Invista Capital LLC - incorporated herein by
reference to Exhibit 5(c) to Post-Effective Amendment No. 21 to
Registrant's Registration Statement on Form N-1A (File No. 33-59474) as
filed with the Commission on February 25, 2002.
(7)(a)
Distribution Agreement - incorporated herein by reference to Exhibit 6(a)
to Post-Effective Amendment No. 12 to Registrant's Registration Statement
on Form N-1A (File No. 33-59474) as filed with the Commission on September
22, 2000.
(7)(b)
Dealer Selling Agreement - incorporated herein by reference to Exhibit
(e)(2) to Post-Effective Amendment No. 18 to Registrant's Registration
Statement on Form N-1A (File No. 33-59474) as filed with the Commission on
June 12, 2001.
(8) None
(9) Custody Agreement - incorporated herein by reference to Exhibit 8(a) to
Post-Effective Amendment No. 13 to Registrant's Registration Statement on
Form N-1A (File No. 33-59474) as filed with the Commission on December 5,
2000.
(10)(a)
12b-1 Plan - Advisors Preferred Class Shares 12b-1 Plan is incorporated
herein by reference to Exhibit 15(a) to Post-Effective Amendment No. 12 to
Registrant's Registration Statement on Form N-1A (File No. 33-59474) as
filed with the Commission on September 22, 2000.
(10)(b)
12b-1 Plan - Advisors Select Class Shares 12b-1 Plan - incorporated herein
by reference to Exhibit 15(b) to Post-Effective Amendment No. 12 to
Registrant's Registration Statement on Form N-1A (File No. 33-59474) as
filed with the Commission on September 22, 2000.
(10)(c) 12b-1 Plan - Select Class Shares 12b-1 Plan.
(10)(d) 12b-1 Plan - Class J Shares 12b-1 Plan.
(10)(e)
Rule 18f-3 - Multiple Class Distribution Plan - incorporated herein by
reference to Exhibit (o) to Post-Effective Amendment No. 12 to Registrant's
Registration Statement on Form N-1A (File No. 33-59474) as filed with the
Commission on September 22, 2000.
(11) Opinion and consent of Counsel regarding legality of securities being
registered.
(12) Opinion and consent of Counsel regarding certain tax matters and
consequences to shareholders.
(13) None
(14) Consent of Independent Auditors
(15) None
(16) Powers of attorney executed by L. D. Zimpleman, J. E. Aschenbrenner, R. C.
Eucher, J. D. Davis, P. A. Ferguson, R. W. Gilbert, B. A. Lukavsky and W.
C. Kimball.
(17)(a) Form of Proxy Ballot
(17)(b)
Registrant's Rule 24f-2 Notice pursuant to Rule 24f-2 under the Investment
Company Act of 1940 for its fiscal year ended October 31, 2001 -
incorporated herein by reference to Form 24f-2 filed with the Commission on
January 4, 2002.
Item 17. Undertakings.
The undersigned registrant agrees that prior to any public offering of the
securities registered through the use of a prospectus which is a part of this
registration statement by any person or party who is deemed to be an underwriter
within the meaning of Rule 145(c) of the Securities Act [17 CFR 230.145c], the
reoffering prospectus will contain the information called for by the applicable
registration form for reofferings by persons who may be deemed underwriters, in
addition to the information called for by the other items of the applicable
form.
The undersigned registrant agrees that every prospectus that is filed under
paragraph (1) above will be filed as part of an amendment to the registration
statement and will not be used until the amendment is effective, and that, in
determining any liability under the 1933 Act, each post-effective amendment
shall be deemed to be a new registration statement for the securities offered
therein, and the offering of securities at that time shall be deemed to be the
initial bona fide offering of them.
SIGNATURES
As required by the Securities Act of 1933, this registration statement has been
signed on behalf of the registrant, in the City of Des Moines and the State of
Iowa, on the 10th day of September, 2002.
Principal Investors Fund, Inc.
By: /s/R. C. Eucher
_______________________________________
Ralph C. Eucher
President
As required by the Securities Act of 1933, this registration statement has been
signed by the following persons in the capacities and on the dates indicated:
SIGNATURE TITLE DATE
--------- ----- ----
/s/R. C. Eucher
__________________________ September 10, 2002
R. C. Eucher Director and President
(Principal Executive Officer)
_(L. D. Zimpleman*)_______ Director and September 10, 2002
L. D. Zimpleman Chairman of the Board
_(J. E. Aschenbrenner*)___ Director September 10, 2002
J. E. Aschenbrenner
_(J. D. Davis*)___________ Director September 10, 2002
J. D. Davis
_(P. A. Ferguson*)________ Director September 10, 2002
P. A. Ferguson
_(R. W. Gilbert*)_________ Director September 10, 2002
R. W. Gilbert
_(B. A. Lukavsky*)________ Director September 10, 2002
B. A. Lukavsky
_(W. C. Kimball*)_________ Director September 10, 2002
W. C. Kimball
/s/K. L. Tibbetts
__________________________ Financial Officer September 10, 2002
K. L. Tibbetts (Principal Financial and
Accounting Officer)
By:
/s/R. C. Eucher
____________________________________
R. C. Eucher
Attorney -in- Fact *Pursuant to powers
of attorney previously filed
September 9, 2002
Board of Directors
Principal Investors Fund, Inc.
Des Moines, IA 50392-0200
RE Registration Statement on Form N-14
Pursuant to Securities Act of 1933
I am familiar with the proposed issuance by Principal Investors Fund, Inc. of
shares of each of its share classes of common stock of the International Fund
series, par value $.01 per share, in connection with the transfer to it of the
assets and liabilities of the European Fund series and Pacific Basin Fund series
pursuant to the terms of a Plan of Acquisition (the "Shares"). I am also
familiar with the above-referenced Registration Statement (the "Registration
Statement") filed with the Securities and Exchange Commission relating to the
offer and sale of Shares. Based upon such investigation as I have deemed
necessary, I am of the opinion that the Shares, when issued in accordance with
the terms described in the Registration Statement, will be legally issued, fully
paid and non-assessable.
I hereby consent to the filing of this opinion as a exhibit to the Registration
Statement.
Very truly yours,
/s/Michael D. Roughton
Michael D. Roughton
Counsel
September 3, 2002
Board of Directors
Principal Investors Fund, Inc.
711 High Street
Des Moines, IA 50309
RE Acquisition of Pacific Basin Fund and European Fund
By the International Fund I
To the Board of Directors and Shareholders
International Fund I intends to acquire all of the assets and assume all of the
liabilities of the Pacific Basin Fund and European Fund (each an "Acquired
Fund") in a transaction described in a Form N-14 Registration Statement to be
filed with the United States Securities and Exchange Commission (the
"Registration Statement") on or about September 10, 2002. You have asked for an
opinion concerning the Federal income tax consequences of the proposed
transaction.
International Fund I is a series fund, meaning a segregated portfolio of assets,
of Principal Investors Fund, Inc., a Maryland Corporation. Continuously since
its formation it has qualified as a regulated investment company for purposes of
Subchapter M of the United States Internal Revenue Code of 1986 (the "Code") and
has elected to be taxed as such.
Each Acquired Fund is also a series fund of Principal Investors Fund, Inc. Each
Acquired Fund, like International Fund I, has qualified since its inception as a
regulated investment company for purposes of the Code, and has elected to be
taxed as such.
International Fund I and each Acquired Fund are each a diversified, open-end
management company registered with the Securities and Exchange Commission and
various states.
International Fund I will acquire all of the assets of each Acquired Fund, and
assume all of its liabilities, in exchange for International Fund I shares.
Each Acquired Fund will immediately liquidate and dissolve, distributing the
shares of International Fund I to its shareholders in retirement of their shares
of the Acquired Fund. Each holder of shares of an Acquired Fund will as a
result of the transaction own shares of International Fund I of equal value.
In reliance on the information provided in the Registration Statement, I am of
the opinion that:
1) The acquisition of all of the assets and liabilities of each Acquired Fund by
International Fund I in exchange for shares of International Fund I, followed
by distribution of those shares of International Fund I to shareholders of the
Acquired Fund in liquidation of the Acquired Fund, will constitute a
reorganization within the meaning of section 368(a)(1)(C) of the Code.
2) Shareholders of each Acquired Fund will recognize no gain or loss as a
consequence of the surrender of their shares of the Acquired Fund in exchange
for shares of International Fund I pursuant to the liquidation of the Acquired
Fund. (Code Section 354).
3) The tax basis and holding period of shares of International Fund I acquired
in exchange for shares of each Acquired Fund will be the same as the tax basis
and the holding period of the shares of the Acquired Fund exchanged therefore.
(Code Sections 354 and 1223).
4) Each Acquired Fund will recognize no gain or loss on the transfer of all of
its assets to International Fund I. (Code Section 361(a)).
5) The tax basis of the assets of each Acquired Fund in the hands of
International Fund I will be the same as the tax basis of those assets in the
hands of the Acquired Fund immediately prior to the acquisition. (Code
Section 362(b)).
The foregoing opinions are based on the Code, current Treasury Regulations
issued thereunder, published administrative, interpretations thereof and
judicial decisions with respect thereto (collectively the "Tax Law") as of the
date hereof. No assurance can be given that the Tax Laws will not change.
I hereby consent to the use of this letter as an Exhibit to, and reference to it
in, the Registration Statement.
Sincerely yours,
/s/Randy Bergstrom
Randy Bergstrom
Counsel to Principal Investors Fund, Inc.
Consent of Independent Auditors
We consent to the reference to our firm under the caption "Financial Statements"
in the Statement of Additional Information and to the incorporation by reference
of our report dated December 5, 2001, with respect to the financial statements
and financial highlights of the International Fund I, European Fund and Pacific
Basin Fund of the Principal Investors Fund, Inc. included in this Registration
Statement Under the Securities Act of 1933 (Form N-14), filed with the
Securities and Exchange Commission.
LOGO
/s/Ernst & Young LLP
Ernst & Young LLP
Des Moines, Iowa
September 6, 2002