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 50392-0300 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 April 10, 2003,
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 March 1, 2003.
Item 14......................................Financial Statements
Financial Statements as noted in
the Statement of Additional
Information
2
PART C
Item 15......................................Indemnification
Indemnification
Item 16......................................Exhibits Exhibits
Item 17......................................Undertakings Undertakings
3
logo
Principal
Financial
Group
April 10, 2003
Dear Shareholder:
The Board of Directors of Principal Investors Fund, Inc. has called a special
meeting of the shareholders of one series of the Fund, the International
SmallCap Fund, for May 14, 2003 to vote on a Plan of Acquisition which provides
for the combination of the International SmallCap Fund with another series of
the Fund, the International Fund I. If the Plan is approved by shareholders and
implemented, shareholders of the International SmallCap Fund will cease to own
shares of the International SmallCap Fund and will become the owner of shares of
the same class of the International Fund I equal in value to the shares of the
International SmallCap Fund. The Board believes that the proposed change is in
the best interest of each series of the Fund and its shareholders.
The International SmallCap Fund 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 International
SmallCap Fund and the International Fund I is the investment strategy of each
series. The International SmallCap Fund invests primarily in companies having
market capitalizations of $2 billion or less. The International Fund I may
invest in companies having small, medium or large market capitalizations; it is
not restricted to small capitalization companies.
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
/s/Ralph C. Eucher
Ralph C. Eucher
President
Principal Investors Fund, Inc.
1
NOTICE OF
SPECIAL MEETING OF SHAREHOLDERS
TO BE HELD ON MAY 14, 2003
___________
To the Shareholders:
Notice is hereby given that a special meeting of the shareholders of the
International SmallCap Fund, a series of Principal Investors Fund, Inc., will be
held at 2:00 p.m. C.D.T., on May 14, 2003, at the offices of Principal
Management Corporation, 680 8th Street, Des Moines, Iowa 50392-2080. 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 International
SmallCap 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, and the
International SmallCap 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 International SmallCap Fund at the close of business
on April 7, 2003, 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
April 10, 2003
2
PRINCIPAL INVESTORS FUND, INC.
INTERNATIONAL FUND I SERIES
INTERNATIONAL SMALLCAP SERIES
PROSPECTUS/INFORMATION STATEMENT
This prospectus/information statement is being furnished in connection with a
special meeting of the shareholders of the International SmallCap Fund, a series
of Principal Investors Fund, Inc. ("Investors Fund") to be held at 2:00 p.m.
C.D.T., on May 14, 2003, at the offices of Principal Management Corporation, 680
8th Street, Des Moines, Iowa 50392-0200.
At the meeting, shareholders of the International SmallCap Fund will vote on a
Plan of Acquisition ("Plan"). Under the 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 the International
SmallCap 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. The International SmallCap 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 the International SmallCap Fund will have the same
amount invested in the same share class of the International Fund that the
shareholder had invested in those share classes of the International SmallCap
Fund at the effective time. The manager of the Investors Fund, Principal
Management Corporation, has agreed to pay all expenses incurred by the
International SmallCap Fund in connection with the Plan.
The International SmallCap Fund 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 the International SmallCap
Fund and the International Fund is to seek long-term growth of capital. The
International SmallCap Fund pursues the investment objective by investing at
least 80% of its assets in common stocks of non-U.S. companies having a market
capitalization of $2 billion or less while the International Fund may invest all
of its assets in common stocks of non-U.S. companies having small, medium or
large market capitalizations.
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 prospectus and Statement of Additional Information for the International
Fund and the International SmallCap Fund, dated March 1, 2003, 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 50392-2080 or by telephoning
toll-free 1-800-247-4123. The prospectus of the International Fund and the
International SmallCap Fund, dated March 1, 2003, and the Statement of
Additional Information, dated April 10, 2003, relating to this
prospectus/information statement, are incorporated herein by reference. As a
shareholder of the International SmallCap Fund, you previously received a
current prospectus for the International Fund in a prospectus that combines
these and other series of the Investors Fund. A copy of the prospectus may be
obtained as described above.
_____________________
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 April 10, 2003
3
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 ............................... 22
4
INTRODUCTION AND VOTING INFORMATION
SPECIAL MEETING; VOTING
- -----------------------
We are furnishing this prospectus/information statement to you as a shareholder
of the International SmallCap Fund, a series of the Investors Fund, in
connection with a special meeting of the shareholders of the International
SmallCap Fund to be held on May 14, 2003. The purpose of the meeting is to vote
on the Plan for the International SmallCap Fund. A copy of the Plan is included
as Appendix A. The Plan provides for the combination of the International
SmallCap Fund with the International Fund which is also a series of the
Investors Fund, as more fully described below. The prospectus/information
statement is first being furnished to shareholders on or about April 10, 2003.
THE BOARD OF DIRECTORS OF THE INVESTORS FUND HAS APPROVED THE PLAN AND
RECOMMENDS THAT THE SHAREHOLDERS OF THE INTERNATIONAL SMALLCAP FUND VOTE FOR THE
PLAN AND THE TRANSACTIONS WHICH IT CONTEMPLATES.
Shareholders of record of the International SmallCap Fund at the close of
business on April 7, 2003, the record date, are entitled to vote at the meeting.
As of the record date, the International SmallCap Fund had the following shares
outstanding and entitled to be voted.
OUTSTANDING
SHARE CLASS SHARES
----------- -----------
Advisors Preferred
Advisors Select
Preferred
Select
Institutional
Class J
Shareholders of the International SmallCap Fund are entitled to one vote for
each share of each Class held at the meeting. A quorum for the International
SmallCap Fund must be present at the meeting for the transaction of business.
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 the International SmallCap Fund
requires the affirmative vote of a majority of all the votes entitled to be cast
by shareholders of the International SmallCap 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
the International SmallCap Fund do not approve the Plan, the Board will consider
possible alternative arrangements, and Principal Management Corporation will
continue to manage the International SmallCap Fund.
Proxies of the shareholders of the International SmallCap Fund are not being
solicited because Principal Life owned or was authorized to vote a majority of
the outstanding shares of the International SmallCap Fund as of the record date,
and is expected to be present at the meeting and to vote such shares.
ADDITIONAL INFORMATION
- ----------------------
On April 7, 2003, the directors and officers of the Investors Fund together
owned less than 1% of each of the International SmallCap Fund's and the
International Fund's outstanding shares. Principal Life, Des Moines, Iowa,
50392, an Iowa life insurance company and an affiliate of Principal Management
Corporation, the manager of the Funds (the "Manager"), 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 the International SmallCap Fund owned by
Principal Life on April 7, 2003 and based on those holdings, its percentage of
ownership at the effective time (3:00 p.m. C.D.T. on May 21, 2003):
5
PRINCIPAL LIFE'S
INTERNATIONAL PRINCIPAL LIFE'S
SMALLCAPFUND INTERNATIONAL FUND
PERCENTAGE OWNERSHIP PERCENTAGE OWNERSHIP
SHARE CLASS ON APRIL 7, 2003 AT THE EFFECTIVE TIME
----------- --------------------- -----------------------
Advisors Preferred
Advisors Select
Preferred
Select
Institutional
Class J
The ultimate parent of Principal Life is Principal Financial Group, Inc.
As of April 7, 2003, the following shareholders owned 5% or more of the
outstanding shares of any Class of the Funds:
PERCENTAGE
NAME ADDRESS OF OWNERSHIP
---- -------- ------------
INTERNATIONAL SMALLCAP FUND - ADVISORS
SELECT CLASS
INTERNATIONAL SMALLCAP FUND - CLASS J
INTERNATIONAL FUND I - ADVISORS SELECT
CLASS
INTERNATIONAL FUND I - ADVISORS
PREFERRED CLASS
INTERNATIONAL FUND I - PREFERRED CLASS
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.
6
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 International SmallCap Fund with the International Fund. The International
SmallCap and International Fund are each a series of the Investors Fund. Under
the Plan, at the effective time on the closing date, the International Fund will
acquire all the assets and assume all the liabilities of the International
SmallCap Fund and issue to the International SmallCap 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 of the International SmallCap Fund attributable to each share class.
Immediately thereafter, the International SmallCap Fund will distribute all the
International Fund shares it receives to its shareholders who own the
corresponding class of the International SmallCap Fund shares and thereby redeem
all its outstanding shares. Each International SmallCap Fund shareholder will
receive International Fund shares equal in value to the shares of the
corresponding class of the International SmallCap Fund held by the shareholder
at the effective time. If the Plan is approved, the effective time will be 3:00
p.m. C.D.T. on May 21, 2003.
REASONS FOR THE PROPOSED COMBINATION
- ------------------------------------
The International SmallCap Fund has a relatively small amount of assets and has
experienced limited sales of shares. The likelihood that the International
SmallCap Fund will achieve significant asset levels in the foreseeable future is
low. The Board for the Investors Fund considered these and other factors, and
determined that the proposed Plan would be in the best interests of the
International SmallCap Fund and its shareholders, that the terms of the Plan are
fair and reasonable and that the interests of the shareholders of the
International SmallCap Fund will not be diluted as a result of the transactions
contemplated by the Plan. The Board believes that the Plan will provide
shareholders of the International SmallCap Fund with an investment in a larger
growth-oriented, international fund with a more favorable expense ratio than the
International SmallCap Fund. The table below reflects the investment performance
of the International SmallCap Fund and the International Fund for the periods
ended February 28, 2003.
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 -17.15 -19.70 -17.65 -19.98 -17.49 -19.85 -17.96 -20.21
International
SmallCap Fund -16.98 -18.15 -17.31 -18.46 -17.00 -18.28 -17.37 -18.58
TOTAL RETURN WITH MAXIMUM SALES CHARGE*
---------------------------------------------------------------------
INSTITUTIONAL
SERIES CLASS CLASS J
------ -------------------- ----------------
SINCE SINCE
1-YR. INCEPTION*** 1-YR. INCEPTION***
----- ------------ ----- ------------
International Fund -17.20 -19.06 -18.71 -19.73
International SmallCap Fund -16.73 -16.76 -18.41 -17.55
*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.
7
INVESTMENT OBJECTIVES AND POLICIES
- ----------------------------------
The primary investment objective of the International Fund and the International
SmallCap Fund is to seek long-term growth of capital. Each Fund invests
primarily in equity securities of non-U.S. companies, but the International
SmallCap Fund invests at least 80% of its assets in companies having market
capitalizations of less than $2 billion. The International Fund may invest all
of its assets in non-U.S. companies having small, medium or large market
capitalizations. Thus, while the risks of investing in international stock funds
in general are similar for each Fund, each has different risks due to the extent
to which each invests in companies with small market capitalizations.
INVESTMENT ADVISORY SERVICES
- ----------------------------
The Manager serves as investment advisor to the Investors Fund. The Manager has
entered into a sub-advisory agreement with Principal Global Investors ("PGI") to
provide investment advisory services to the International SmallCap Fund as well
as the International Fund. PGI is a direct wholly-owned subsidiary of Principal
Life and an affiliate of the Manager.
Under the sub-advisory agreement, the Manager compensates PGI by paying it a
portion of the fee the Manager receives from each Fund. The Manager pays PGI a
smaller percentage of the fee it receives from the International Fund than the
percentage of the fee it receives from the International SmallCap Fund. The
Manager also currently waives a portion of the management fee, or pays expenses
of, the Class J shares of each of the Funds. If the Plan is approved, the
combined assets of the Funds will continue to be sub-advised by PGI, the Manager
will retain a larger portion of the advisory fees it will receive with respect
to the assets formerly owned by the International SmallCap Fund, and the overall
amount of the Manager's management fee waiver or expense reimbursement for Class
J shares 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 either 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.
8
The operating expenses attributable to each share class of each Fund (as a
percentage of the average daily net assets) for the fiscal year ended October
31, 2002 were as follows:
INTERNATIONAL SMALLCAP FUND
---------------------------------------------------------------------
ADVISORS ADVISORS
PREFERRED PREFERRED SELECT INSTITUTIONAL
FUND OPERATING EXPENSES CLASS CLASS SELECT CLASS CLASS CLASS CLASS J*
----------------------- --------- --------- ------------ -------- ------------- --------
Management Fees 1.20% 1.20% 1.20% 1.20% 1.20% 1.20%
12b-1 Fees 0.00 0.25 0.10 0.30 0.00 0.50
Other Expenses 0.26 0.32 0.28 0.45 0.00 2.27
---- ---- ---- ---- ---- ----
Total Operating Expenses 1.46% 1.77% 1.58% 1.95% 1.20% 3.97%
INTERNATIONAL FUND
----------------------------------------------------------------------------------------
ADVISORS ADVISORS
PREFERRED PREFERRED SELECT SELECT INSTITUTIONAL
FUND OPERATING EXPENSES CLASS CLASS CLASS* CLASS CLASS
----------------------- --------- --------- ------ -------- -------------
Management Fees 0.90% 0.90% 0.90% 0.90% 0.90%
12b-1 Fees 0.00 0.25 0.10 0.30 0.00
Other Expenses 0.26 0.32 0.28 0.45 0.00
---- ---- ---- ---- ----
Total Operating Expenses 1.16% 1.47% 1.28% 1.65% 0.90%
*A Distribution Plan and Agreement was adopted by the Investors Fund pursuant to Rule 12b-1 for the Select Class shares effective
June 10, 2002.
**The Manager has voluntarily agreed to limit the expenses paid by the Class J shares of the International Fund and the
International SmallCap Fund. The Manager intends to pay expenses normally payable by Class J shares of the International Fund and
the International SmallCap Fund through the period ending February 29, 2004. The effect of the expense limitation is to reduce
each Fund's Class J shares annual operating expenses. The limitation will maintain a total level of operating expenses for Class J
shares of the International Fund and the International SmallCap Fund (expressed as a percent of average net assets attributable to
Class J shares on an annualized basis) not to exceed:
. 2.15% for the International SmallCap Fund through February 28, 2003, and 2.10% thereafter through February 29, 2004.
. 1.85% for the International Fund through February 28, 2003, and 2.10% thereafter through February 29, 2004.
FUND OPERATING EXPENSES CLASS J**
----------------------- ---------
Management Fees 0.90%
12b-1 Fees 0.50
Other Expenses 1.24
----
Total Operating Expenses 2.64%
*A Distribution Plan and Agreement was adopted by the Investors Fund pursuant to Rule 12b-1 for the Select Class shares effective
June 10, 2002.
**The Manager has voluntarily agreed to limit the expenses paid by the Class J shares of the International Fund and the
International SmallCap Fund. The Manager intends to pay expenses normally payable by Class J shares of the International Fund and
the International SmallCap Fund through the period ending February 29, 2004. The effect of the expense limitation is to reduce
each Fund's Class J shares annual operating expenses. The limitation will maintain a total level of operating expenses for Class J
shares of the International Fund and the International SmallCap Fund (expressed as a percent of average net assets attributable to
Class J shares on an annualized basis) not to exceed:
. 2.15% for the International SmallCap Fund through February 28, 2003, and 2.10% thereafter through February 29, 2004.
. 1.85% for the International Fund through February 28, 2003, and 2.10% thereafter through February 29, 2004.
The International Fund's expenses, assuming implementation of the Plan on May
21, 2003, as a percentage of average daily net assets are as follows:
INTERNATIONAL FUND
----------------------------------------------------------------------------------------
ADVISORS ADVISORS
FUND OPERATING PREFERRED PREFERRED SELECT SELECT INSTITUTIONAL
EXPENSES CLASS CLASS CLASS CLASS CLASS
-------------- --------- --------- ------ -------- -------------
Management Fees 0.90% 0.90% 0.90% 0.90% 0.90%
12b-1 Fees 0.00 0.25 0.10 0.30 0.00
Other Expenses 0.26 0.32 0.28 0.45 0.00
---- ---- ---- ---- ----
Total Operating
Expenses 1.16% 1.47% 1.28% 1.65% 0.90%
*The Manager has voluntarily agreed to limit the expenses paid by the Class J shares of the International Fund. The Manager
intends to pay expenses normally payable by Class J shares of the International Fund through the period ending February 29,
2004. The effect of the expense limitation is to reduce the International Fund's Class J shares annual operating expenses. The
limitation 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 2.10%.
FUND OPERATING
EXPENSES CLASS J*
-------------- --------
Management Fees 0.90%
12b-1 Fees 0.50
Other Expenses 1.31
----
Total Operating 2.71%
Expenses
*The Manager has voluntarily agreed to limit the expenses paid by the Class J shares of the International Fund. The Manager
intends to pay expenses normally payable by Class J shares of the International Fund through the period ending February 29,
2004. The effect of the expense limitation is to reduce the International Fund's Class J shares annual operating expenses. The
limitation 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 2.10%.
9
The following is an example of the effect of the operating expenses of each of
the Funds as of October 31, 2002. The examples assume (1) a 5% annual return,
and (2) each Fund's 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 each 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
International
SmallCap Fund 149 462 797 1,746
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
International
SmallCap Fund 180 557 959 2,084
NUMBER OF YEARS YOU OWN YOUR SELECT CLASS SHARES
-------------------------------------------------
1 YEAR 3 YEARS 5 YEARS 10 YEARS
---------- ----------- ----------- --------------
International Fund $130 $406 $702 $1,545
International SmallCap
Fund 161 499 860 1,878
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
International
SmallCap Fund 198 612 1,052 2,275
NUMBER OF YEARS YOU OWN YOUR INSTITUTIONAL CLASS SHARES
--------------------------------------------------------
1 YEAR 3 YEARS 5 YEARS 10 YEARS
------------ ------------- ------------- ----------------
International Fund $ 92 $287 $498 $1,108
International
SmallCap Fund 122 381 660 1,455
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 $369 $ 820 $1,400 $2,973
International SmallCap
Fund 500 1210 2,037 4,181
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 $267 $ 820 $1,400 $2,973
International SmallCap
Fund 399 1,210 2,037 4,181
10
The following is an example of the effect of the operating expenses of the
International Fund, assuming implementation of the Plans on May 21, 2003. The
examples assume (1) a 5% annual return, and (2) the Fund's 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 $376 $841 $1,435 $3,041
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 $274 $841 $1,435 $3,041
PURCHASES
- ---------
Shares of the International Fund and the International SmallCap 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 the International SmallCap Fund pay ongoing fees to
the Manager. Some of the share classes of each Fund also pay ongoing fees to
Princor and others who provide services to the funds. These fees reduce the
value of each share you own.
11
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 the International
SmallCap Fund. Under each Distribution Plan, each Fund 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 of shares of the four
share classes referred to above and for services Princor and other selling
dealers provide to shareholders of those classes of shares. Because they are
ongoing, the fees may, over time, exceed other types of sales charges such as
front-end charges or contingent deferred sales charges.
12B-1 FEE
---------
Advisors Preferred Class Shares 0.25%
Advisors Select Class Shares... 0.30%
Select Class Shares............ 0.10%
Class J Shares................. 0.50%
EXCHANGES
- ---------
Shares of the International Fund and the International SmallCap 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 by the exchange 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
acquired Class J shares for purposes of determining the applicable charge.
REDEMPTION PROCEDURES AND FEES
- ------------------------------
Shares of the International Fund and the International SmallCap 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 with respect to
Class J shares, the amount you receive will be reduced by any applicable CDSC or
redemption fee.
Generally, the sale proceeds are sent to you on the day following the day you
place the sell order.
DIVIDENDS AND DISTRIBUTIONS
- ---------------------------
The International Fund and the International SmallCap 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 the Funds distribute to shareholders 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 the
International SmallCap 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 each Fund distributes to its 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 either Fund
or either Fund's shareholders in connection with the combination, and the tax
cost basis of the International Fund shares received by shareholders of the
International SmallCap Fund will equal the tax cost basis of their shares in the
International SmallCap Fund and their holding period of the International Fund
shares will include the time during which the shareholders held the
International SmallCap Fund shares.
12
COSTS AND EXPENSES
- ------------------
The Manager will bear all out-of-pocket fees and expenses incurred by the Fund
in connection with the transactions contemplated by the Plan.
CONTINUATION OF SHAREHOLDER ACCOUNTS
- ------------------------------------
At the effective time of the Plan, you will cease to be a shareholder of the
International SmallCap 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 the International SmallCap Fund at the
effective time.
PRINCIPAL RISK FACTORS
The primary investment objective of the International Fund and the International
SmallCap Fund is to seek long-term growth of capital. Each Fund invests
primarily in equity securities of foreign companies, but the International
SmallCap Fund invests at least 80% of its assets in companies having market
capitalizations of less than $2 billion. The International Fund may invest all
of its assets in common stock of non-U.S. companies having small, medium or
large market capitalizations. Thus, while the risks of investing in
international stock funds in general are similar for each Fund, each has
different risks due to the extent to which each invests in companies with small
market capitalizations. As with all mutual funds, as the values of the assets of
each Fund 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 Fund 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.
The International SmallCap Fund invests primarily in small companies and the
International Fund may invest in small, medium or large companies. 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 the Plan are summarized below. The summary is qualified in its
entirety by reference to the Plan, a copy of which is attached as Appendix A.
Under the Plan, the International Fund will acquire all the assets and assume
all the liabilities of the International SmallCap Fund and will issue to the
International SmallCap 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 corresponding share class of the International
SmallCap Fund. We expect that the closing date will be May 21, 2003, assuming
shareholder approval of the Plan, and that the effective time will be the close
of regular trading on the NYSE at 3:00 P.M., Central Daylight 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 the International SmallCap
Fund are identical). The International Fund will issue to the International
SmallCap Fund a number of shares of each share class equal to the value of the
net assets of each corresponding share class of the International SmallCap Fund
outstanding at the effective time. The International SmallCap 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, the International SmallCap Fund will
distribute to you its International Fund shares of the same class as the
International SmallCap Fund shares you own in exchange for all your
International SmallCap
13
Fund shares of that class. You will receive shares of the International Fund
that are equal in value to the shares of the International SmallCap Fund you
surrender 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 International SmallCap Fund shareholder, and the International SmallCap
Fund will cancel on its books all its shares registered to the account of that
shareholder. Any outstanding certificate for International SmallCap Fund shares
that is not surrendered will be deemed to represent the number of International
Fund shares for which the International SmallCap Fund shares have been
exchanged. After the effective time, the International SmallCap Fund will
dissolve in accordance with applicable law.
The consummation of the transactions contemplated by the Plan for the
International SmallCap Fund is subject to the approval of the Plan by the
shareholders of the International SmallCap Fund. The 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 the
International SmallCap Fund after the shareholders of the International SmallCap
Fund have approved the Plan. The Board of Directors may terminate the Plan at
any time before the effective time if it believes that consummation of the
transactions contemplated by the 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 Funds
in connection with the transactions contemplated by the 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 the International SmallCap Fund have
with respect to the International SmallCap 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 April 7, 2003, 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 International SmallCap Fund has a relatively small amount of assets and has
experienced limited sales of shares. The likelihood that the International
SmallCap Fund will achieve significant asset levels in the foreseeable future is
low. The Board for the International SmallCap Fund considered these and other
factors and determined that the proposed Plan would be in the best interests of
the International SmallCap Fund and its shareholders, that the terms of the Plan
are fair and reasonable and that the interests of the shareholders of the
International SmallCap Fund will not be diluted as a result of the transactions
contemplated by the Plan.
The Plan has been approved by the Board of Directors of the International Fund
and the International SmallCap Fund, 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 International SmallCap Fund's shareholders of investing in a larger asset
pool with greater diversification; (4) any direct or indirect fees or expenses
incurred by the Fund as a result of the Plan; (5) expense ratios and available
information regarding the fees and expenses of the Funds, including any change
in fees or expenses to be paid or borne by shareholders of the International
SmallCap Fund (direct or indirectly) as a result of the Plan; (6) comparative
investment performances of the Funds; (7) the direct or indirect federal income
tax consequences of the Plan to shareholders of the International SmallCap 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 Funds and changes with respect to the
investment objectives and policies of the International SmallCap Fund that will
result from the Plan.
14
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 the International SmallCap Fund's
assets in its business and will continue the International SmallCap Fund's
historic business, the combination of the International SmallCap Fund with the
International Fund will exhibit a continuity of business enterprise. Therefore,
the 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 either of the Funds or their shareholders in
connection with the combination, the tax cost basis of the International Fund
shares received by shareholders of the International SmallCap Fund will equal
the tax cost basis of their shares in the International SmallCap Fund, and their
holding periods for the International Fund shares will include their holding
periods for the International SmallCap Fund shares.
As of October 31, 2002, the International SmallCap Fund had an accumulated
capital loss carryforward in the amount of approximately $1,605,000. After the
reorganization, this loss 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 the
International SmallCap Fund might have, and part of these losses may not be
useable at all. The ability of the International Fund to utilize the accumulated
capital loss carry-forward 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
carryfoward currently are available only to shareholders of the International
SmallCap Fund. 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 the International SmallCap Fund
and the International Fund separately, as of February 28, 2003, and combined in
the aggregate (unaudited), as of that date, giving effect to the Plan:
INTERNATIONAL SMALLCAP FUND
---------------------------------------------------------------------------
ADVISORS ADVISORS
PREFERRED PREFERRED SELECT INSTITUTIONAL
CLASS CLASS CLASS SELECT CLASS CLASS CLASS J
--------- --------- -------- ------------ ------------- -------
Net Assets $1,673,949 $1,428,696 $1,251,169 $807,164 $932,332 $3,923,261
Net Asset Value Per
Share $ 6.43 $ 6.46 $ 6.42 $ 6.45 $ 6.48 $ 6.44
Shares Outstanding 260,163 221,130 195,019 125,207 143,931 609,053
INTERNATIONAL FUND
-------------------------------------------------------------------------------
ADVISORS ADVISORS
PREFERRED PREFERRED SELECT INSTITUTIONAL
CLASS CLASS CLASS SELECT CLASS CLASS CLASS J
--------- --------- -------- ------------ ------------- -------
Net Assets 1,719,582 3,779,709 1,958,946 468,770 $30,999,736 $12,194,398
Net Asset Value Per Share $ 6.16 $ 6.17 $6.12 $ 6.16 6.18 $ 6.15
Shares Outstanding 279,182 612,444 320,145 76,094 5,013,510 1,984,033
COMBINED INTERNATIONAL FUND
-------------------------------------------------------------------------------
ADVISORS ADVISORS
PREFERRED PREFERRED SELECT INSTITUTIONAL
CLASS CLASS CLASS SELECT CLASS CLASS CLASS J
--------- --------- -------- ------------ ------------- -------
Net Assets $3,393,531 5,208,405 3,210,115 1,275,934 31,932,068 $16,117,659
Net Asset Value Per Share $6.16 $ 6.17 $ 6.12 6.16 6.18 $ 6.15
Shares Outstanding 550,927 844,000 524,585 207,128 5,164,373 2,621,961
15
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, 2002.
International equity markets posted negative returns in the last year, largely
due to concerns about the sustainability of the global economic recovery. The
Principal Investors Fund - International Fund I outperformed the MSCI Europe,
Australasia and Far East (EAFE) Index by approximately 1.6% for the one-year
period ending October 31, 2001, returning -12.33%, compared to -13.21% for the
Index.
Initial market performance in the fiscal year was positive as companies
experienced a rebound in business after the September 11 terrorist attacks. This
strong economic and company performance faded in the second half of 2002. The
sluggish economic growth negatively impacted company earnings and ultimately
resulted in weak equity markets from July through September.
The Fund outperformed the Index based on strong stock selection in the
information technology, energy and financials sectors. In the technology sector,
we added value within semiconductor equipment and products. Samsung Electronics
was a strong performer for the Fund. In the energy sector, returns were
generated with the holdings in integrated oil companies trading on discount
valuations. The focus on retail banks and insurance companies with solid balance
sheets was the correct strategy within the financials sector.
The best performing sectors in the last year were consumer staples, basic
materials and consumer discretionary. In general, the bright spot in the global
economy continues to be the ongoing consumer spending. The basic materials
industry benefited from better commodity prices and cheap valuations. On the
negative side, the information technology and telecommunication services sectors
were hit particularly hard. Companies in these sectors suffer from weak pricing
and poor balance sheets.
Fund managers are currently finding good value in the basic materials and
consumer staples sectors. The pharmaceuticals, information technology and
financial sectors are viewed less favorably. The Fund's investment positioning
is a result of implementing a bottom-up, borderless 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.
GROWTH OF $10,000
Cumulative Returns
as of October 31, 2002
Class 1 Year Life of Fund*
Advisors Preferred -12.03% -20.73%
Advisors Select -12.33% -20.99%
J -13.41% -20.62%
Institutional -11.60% -19.85%
Preferred -11.61% -20.48%
Select -11.96% -20.64%
Morgan Stanley
Capital
International
EAFE (Europe,
Australia and Morningstar International
Far East) Foregin Stock Fund I,
Index-ND Category Advisors Select
10 10 9.525
"2001" 7.782 7.634 7.029
"2002" 6.754 7.897 6.162
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 returns
shown do not reflect taxes, if any, that a shareholder would pay on Fund
distributions or on the redemption of Fund shares.
* 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 6, 2000.
LOGO
16
COMPARISON OF INVESTMENT OBJECTIVES, POLICIES AND RESTRICTIONS
The investment objectives of each Fund is fundamental and certain investment
restrictions which are designated as such in each Fund'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 Fund's 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 Funds. All other investment policies and
restrictions are not fundamental and may be changed by the Investors Fund 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, PGI, pays
particular attention to the long-term earnings prospects of the various
companies under consideration. PGI then weighs those prospects relative to the
price of the security.
INTERNATIONAL SMALLCAP FUND
- ---------------------------
The International SmallCap Fund seeks long-term growth of capital.
INTERNATIONAL SMALLCAP FUND STRATEGY
The International SmallCap Fund invests primarily in equity securities of
non-U.S. companies with comparatively smaller market capitalizations. Under
normal market conditions, the International SmallCap Fund invests at least 80%
of its assets in securities of companies having market capitalizations of $2
billion or less at the time of purchase. Market capitalization is defined as
total current market value of a company's outstanding common stock.
The International SmallCap 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.
PGI diversifies the International SmallCap Fund's investments geographically.
There is no limitation on the percentage of assets that may be invested in one
country or denominated in any one currency. However, under normal market
circumstances, the International SmallCap Fund intends to invest at least 65% of
its assets in securities of companies of at least three countries.
In addition to having similar investment objectives, the International Fund and
the International SmallCap Fund have many similar investment policies and
restrictions.
17
INTERNATIONAL SMALLCAP FUND AND INTERNATIONAL FUND INVESTMENT POLICIES AND
RESTRICTIONS
Fundamental Restrictions
- ------------------------
Each of the following restrictions for the International SmallCap Fund and
International Fund is a matter of fundamental policy and may not be changed
without shareholder approval. The International SmallCap 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
series may 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 International SmallCap 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 International SmallCap 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.
18
. 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 International SmallCap Fund has also adopted a non-fundamental restriction
which requires it, under normal circumstances, to invest at least 80% of its net
assets in companies having market capitalizations of less than $2 billion.
INVESTMENT ADVISORY SERVICES
- ----------------------------
The Manager serves as investment advisor to the Investors Fund. The Manager has
entered into a sub-advisory agreement with PGI to provide investment advisory
services to the International SmallCap Fund as well as the International Fund.
PGI is a direct wholly-owned subsidiary of Principal Life 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, 2002
and the Manager paid PGI a sub-advisory fee equal to 0.11% of such assets.
The Manager has also entered into a sub-advisory agreement with PGI to provide
investment advisory services to the International SmallCap Fund. The
International SmallCap Fund paid the Manager a fee equal to 1.20% (0.0% for the
Class J shares after waiver) of the International SmallCap Fund's average daily
net assets for services provided during the fiscal year ended October 31, 2002
and the Manager paid PGI a sub-advisory fee of 0.50% 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 the International SmallCap 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 Funds is available in their annual reports to
shareholders for the year ended October 31, 2002, 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 and
International SmallCap Fund) dated March 1, 2003; and Statement of Additional
Information for the registration statement of which this prospectus/ information
statement is a part, dated April 10, 2003. You may obtain copies of the annual
reports to shareholders, the prospectuses and the Statements of Additional
Information by contacting Princor Financial Services Corporation at Des Moines,
Iowa 50392-2080, or by telephoning shareholder services toll-free at
1-800-247-4123.
Each of the Funds 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.
19
APPENDIX A
PRINCIPAL INVESTORS FUND
PLAN OF ACQUISITION
INTERNATIONAL SMALLCAP FUND AND INTERNATIONAL FUND I
The Board of Directors of Principal Investors Fund (the "Fund") deem it
advisable that the International Fund I of the Fund acquire all of the assets of
the International SmallCap Fund in exchange for the assumption by the
International Fund I of all of the liabilities of the International SmallCap
Fund and shares issued by the International Fund I which are thereafter to be
distributed by the International SmallCap Fund pro rata to its shareholders in
complete liquidation and termination of the International SmallCap Fund and in
exchange for all of the International SmallCap Fund's outstanding shares.
The International SmallCap Fund will transfer to the International Fund I and
the International Fund I will acquire from the International SmallCap Fund, all
of the assets of the International SmallCap Fund on the Closing Date and will
assume from the International SmallCap Fund all of the liabilities of the
International SmallCap Fund in exchange for the issuance of the number of shares
of the International Fund I determined as provided in the following paragraphs,
which will be subsequently distributed pro rata to the shareholders of the
International SmallCap Fund in complete liquidation and termination of the
International SmallCap Fund and in exchange for all of the International
SmallCap Fund's outstanding shares. The International SmallCap Fund will not
issue, sell or transfer any of its shares after the Closing Date, and only
redemption requests received by the International SmallCap Fund in proper form
prior to the Closing Date shall be fulfilled by the International SmallCap Fund.
Redemption requests received by the International SmallCap Fund thereafter will
be treated as requests for redemption of those shares of the International Fund
I 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 I will issue to the International
SmallCap Fund a number of full and fractional shares of the International Fund
I, taken at their then net asset value, having an aggregate net asset value
equal to the aggregate value of the net assets of the International SmallCap
Fund. The aggregate value of the net assets of the International SmallCap Fund
and the International Fund I shall be determined in accordance with the then
current Prospectus of the International Fund I 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
50392-2080 at 3:00 p.m. Central Daylight Time on May 21, 2003 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 weekend 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 I or the International
SmallCap 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 International SmallCap Fund shall
(a) distribute on a pro rata basis to the shareholders of record of the
International SmallCap Fund at the close of business on the Closing Date the
shares of the International Fund I received by the International SmallCap Fund
at the Closing in exchange for all of the International SmallCap Fund's
outstanding shares, and (b) be liquidated in accordance with applicable law and
the Fund's Articles of Incorporation.
20
For purposes of the distribution of shares of the International Fund I to
shareholders of the International SmallCap Fund, the International Fund I shall
credit on the books of the International Fund I an appropriate number of shares
of the International Fund I to the account of each shareholder of the
International SmallCap Fund. No certificates will be issued for shares of the
International Fund I. After the Closing Date and until surrendered, each
outstanding certificate, if any, which, prior to the Closing Date, represented
shares of the International SmallCap 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 I to be credited on the books of the
International Fund I in respect of such shares of the International SmallCap
Fund as provided above.
Prior to the Closing Date, the International SmallCap Fund shall deliver to the
International Fund I a list setting forth the assets to be assigned, delivered
and transferred to the International Fund I, including the securities then owned
by the International SmallCap Fund and the respective federal income tax bases
(on an identified cost basis) thereof, and the liabilities to be assumed by the
International Fund I pursuant to this Plan.
All of the International SmallCap Fund's portfolio securities shall be delivered
by the International SmallCap Fund's custodian on the Closing Date to the
International Fund I 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 I or its custodian with said
depository. All cash to be delivered pursuant to this Plan shall be transferred
from the International SmallCap Fund's account at its custodian to the
International Fund I's account at its custodian. If on the Closing Date the
International SmallCap Fund is unable to make good delivery to the International
Fund I's custodian of any of the International SmallCap Fund's portfolio
securities because such securities have not yet been delivered to the
International SmallCap 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 International SmallCap Fund shall deliver to
the International Fund I'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 I, 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 I.
This Plan may be abandoned and terminated, whether before or after action
thereon by the shareholders of the International SmallCap 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 International SmallCap 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
International SmallCap 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
International SmallCap Fund or the International Fund I 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.
21
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 April 10, 2003
for the special meeting of the holders of each share class of the common stock,
$.01 par value per share, of the International SmallCap Fund, a series of
Principal Investors Fund, Inc., an open-end management investment company. The
meeting is to be held on Wednesday, May 14, 2003. 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 International SmallCap Fund with the
International Fund I ("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 International SmallCap Fund and
issue in exchange shares of each share class of its common stock. The
International SmallCap 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 International SmallCap
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 April 10, 2003.
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 March 1, 2003, and in the
Investors Fund's Annual Report to Shareholders for the year ended October 31,
2002, 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, 2002.
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 and 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.
1
STATEMENTS OF ASSETS AND LIABILITIES
PRINCIPAL INVESTORS FUND, INC.
OCTOBER 31, 2002 (UNAUDITED)
-------------------------------------------------------------------------------
INTERNATIONAL COMBINED
INTERNATIONAL SMALLCAP PRO FORMA INTERNATIONAL
FUND I FUND ADJUSTMENTS FUND I
- ----------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------
INVESTMENT IN
SECURITIES--AT COST.. $ 46,705,080 $ 9,915,116 $ -- $ 56,620,196
============ ============ ======= ============
FOREIGN CURRENCY--AT
COST ................ $ 66,204 $ 635 $ -- $ 66,839
============ ============ ======= ============
ASSETS
Investment in
securities--at value. $ 43,114,447 $ 8,894,026 -- 52,008,473
Foreign currency--at
value................ 66,417 621 -- 67,038
Cash.................. 428,758 20,033 -- 448,791
Receivables:
Capital Shares sold.. 41,517 -- -- 41,517
Dividends and
interest............ 91,684 21,089 -- 112,773
Investment securities
sold................ 463,351 28,439 -- 491,790
Foreign currency
contracts........... 1,625 -- -- 1,625
------------ ------------ ------- ------------
Total Assets 44,207,799 8,964,208 -- 53,172,007
LIABILITIES
Accrued expenses...... 27,108 9,171 -- 36,279
Payables:
Capital Shares
reacquired.......... -- 35,005 -- 35,005
Investment securities
purchased........... 549,767 37,006 -- 586,773
Foreign currency
contracts........... 375 -- -- 375
------------ ------------ ------- ------------
Total Liabilities 577,250 81,182 -- 658,432
------------ ------------ ------- ------------
NET ASSETS APPLICABLE
TO OUTSTANDING SHARES $ 43,630,549 $ 8,883,026 $ -- $ 52,513,575
============ ============ ======= ============
NET ASSETS CONSIST OF:
Capital Shares and
additional
paid-in-capital...... $ 53,689,090 $ 11,460,758 $ -- $ 65,149,848
Accumulated
undistributed
(overdistributed) net
investment income
(operating loss)..... 11,563 70,896 -- 82,459
Accumulated
undistributed
(overdistributed) net
realized gain (loss). (6,483,776) (1,627,677) -- (8,111,453)
Net unrealized
appreciation
(depreciation) of
investments.......... (3,590,633) (1,021,090) -- (4,611,723)
Net unrealized
appreciation
(depreciation) on
translation of assets
and liabilities in
foreign currencies... 4,305 139 -- 4,444
------------ ------------ ------- ------------
Total Net Assets $ 43,630,549 $ 8,883,026 $ -- $ 52,513,575
============ ============ ======= ============
CAPITAL STOCK (PAR
VALUE: $.01 A SHARE):
Shares authorized..... 145,000,000 145,000,000 -- 145,000,000
NET ASSET VALUE PER
SHARE:
Advisors Preferred:
Net Assets........... $ 3,303,854 $ 1,692,394 $ -- $ 4,996,248
Shares issued and
outstanding.......... 507,649 254,338 5,630/(b)/ 767,617
Net asset value per
share................ $ 6.51 $ 6.65 -- $ 6.51
============ ============ == ============
Advisors Select: Net
Assets............... $ 3,172,453 $ 1,075,963 $ -- $ 4,248,416
Shares issued and
outstanding.......... 490,412 162,353 3,947/(b)/ 656,712
Net asset value per
share................ $ 6.47 $ 6.63 -- $ 6.47
============ ============ == ============
Class J: Net Assets... $ 10,104,228 $ 3,212,052 $ -- $ 13,316,280
Shares issued and
outstanding.......... 1,556,377 483,378 11,545/(b)/ 2,051,300
Net asset value per
share /(a)/.......... $ 6.49 $ 6.65 -- $ 6.49
============ ============ == ============
Institutional: Net
Assets............... $ 20,503,496 $ 593,506 $ -- $ 21,097,002
Shares issued and
outstanding.......... 3,143,488 88,262 2,766/(b)/ 3,234,516
Net asset value per
share................ $ 6.52 $ 6.72 -- $ 6.52
============ ============ == ============
Preferred: Net Assets. $ 4,165,863 $ 1,474,666 $ -- $ 5,640,529
Shares issued and
outstanding.......... 639,789 220,242 6,281/(b)/ 866,312
Net asset value per
share................ $ 6.51 $ 6.70 -- $ 6.51
============ ============ == ============
Select: Net Assets.... $ 2,380,655 $ 834,445 $ -- $ 3,215,100
Shares issued and
outstanding.......... 366,229 124,999 3,377/(b)/ 494,605
Net asset value per
share................ $ 6.50 $ 6.68 -- $ 6.50
============ ============ == ============
/(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 International
SmallCap Fund.
See accompanying notes.
2
STATEMENTS OF OPERATIONS
PRINCIPAL INVESTORS FUND, INC.
YEAR ENDED OCTOBER 31, 2002 (UNAUDITED)
-------------------------------------------------------------------------------
COMBINED
INTERNATIONAL INTERNATIONAL PRO FORMA INTERNATIONAL
FUND I SMALLCAP FUND ADJUSTMENTS /(A)/ FUND I
- ----------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------
NET INVESTMENT INCOME
(OPERATING LOSS)
Income:
Dividends............ $ 433,536 $ 153,593 $ -- $ 587,129
Withholding tax on
foreign dividends... (45,024) (14,795) -- (59,819)
Interest............. 22,755 7,549 -- 30,304
----------- ----------- --------- -----------
Total Income 411,267 146,347 -- 557,614
Expenses:
Management and
investment advisory
fees................ 187,347 86,766 (21,563) 252,550
Distribution fees.... 38,657 17,866 -- 56,523
Administrative
service fees........ 6,015 5,819 -- 11,834
Service fees......... 9,044 8,948 -- 17,992
Transfer and
administrative fees
- Class J........... 28,247 9,777 -- 38,024
Other expenses -
Class J............. 22 23 -- 45
----------- ----------- --------- -----------
Total Gross Expenses 269,332 129,199 (21,563) 376,968
Less: Fees paid
indirectly.......... 101 -- -- 101
----------- ----------- --------- -----------
Total Net Expenses 269,231 129,199 (21,563) 376,867
----------- ----------- --------- -----------
Net Investment Income
(Operating Loss) 142,036 17,148 21,563 137,621
NET REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS AND FOREIGN CURRENCIES
Net realized gain (loss) from:
Investment
transactions........ (2,876,679) (601,206) -- (3,477,885)
Foreign currency
transactions........ (9,476) 241 -- (9,235)
Change in unrealized
appreciation/depreciation
of:
Investments........... (1,199,133) (595,516) -- (1,794,649)
Translation of assets
and liabilities in
foreign currencies... 4,434 414 -- 4,848
----------- ----------- --------- -----------
Net Realized and
Unrealized Gain (Loss)
on Investments and
Foreign Currencies (4,080,854) (1,196,067) -- (5,276,921)
----------- ----------- --------- -----------
Net Increase (Decrease)
in Net Assets
Resulting from
Operations $(3,938,818) $(1,178,919) $ 21,563 $(5,096,174)
=========== =========== ========= ===========
/(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 October 31, 2002.
See accompanying notes.
4
NOTES TO PRO FORMA FINANCIAL STATEMENTS
(UNAUDITED)
-------------------------------------------------------------------------------
1. BASIS OF COMBINATION
On March 10, 2003, the Board of Directors of Principal Investors Fund, Inc.
approved an Agreement and Plan of Reorganization whereby, subject to approval by
the shareholders of International SmallCap Fund, International Fund I will
acquire all the assets of International SmallCap Fund subject to the liabilities
of such fund, in exchange for a number of shares equal to the pro rata net
assets of shares of 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 October
31, 2002. The unaudited pro forma schedule of investments and statement of
assets and liabilities reflect the financial position of International SmallCap
Fund and International Fund I at October 31, 2002. The unaudited pro forma
statement of operations reflects the results of operations of International
SmallCap Fund and International Fund I for the twelve months ended October 31,
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 International SmallCap Fund and International Fund I 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
International Fund I and International SmallCap 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. Short-term securities 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 International
SmallCap Fund by International Fund I as of October 31, 2002. The number of
additional shares issued was calculated by dividing the net asset value of each
class of International SmallCap 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 October 31, 2002. The expenses of
International SmallCap Fund were adjusted assuming the fee structure of
International Fund I was in effect for the twelve months ended October 31, 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.
International Fund I and International SmallCap Fund will distribute
substantially all of their net investment income and any realized gains prior to
the merger date.
5
- --------------------------------------------------------------------------------------------------------------------
Principal Amount or Number of Shares
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
International International
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
Fund I SmallCap Fund Combined
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
COMMON STOCKS (94.80%)
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
Advertising Agencies (0.12%)
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
3,660 3,660 Asatsu-DK
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
Advertising Sales (0.00%)
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
2,000 2,000 Clear Media 1
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
Advertising Services (0.09%)
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
22,000 22,000 Taylor Nelson Sofres
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
Aerospace & Defense (0.03%)
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
5,201 5,201 BAE Systems
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
Agricultural Chemicals (0.13%)
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
6,710 6,710 Agrium
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
Agricultural Operations (0.24%)
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
1,920 1,920 Beghin-Say
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
3,170 3,170 Hokuto
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
Airlines (0.99%)
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
44,000 44,000 China Southern Airlines
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
21,571 21,571 Deutsche Lufthansa 1
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
29,460 29,460 easyJet 1
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
2,000 2,000 Singapore Airlines
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
7,621 7,621 Westjet Airlines 1
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
Apparel Manufacturers (0.10%)
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
6,000 6,000 Onward Kashiyama
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
Appliances (0.08%)
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
530 530 SEB
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
Applications Software (0.00%)
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
2,338 2,338 Aldata Solution Oyj 1
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
Audio & Video Products (0.86%)
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
6,000 6,000 Matsushita Electric Industrial
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
9,000 9,000 Sony
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
Auto-Cars & Light Trucks (3.94%)
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
10,909 10,909 Bayerische Motoren Werke
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
26,000 26,000 Denway Motors
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
13,457 13,457 Honda Motor
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
91,180 91,180 Nissan Motor
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
10,758 10,758 PSA Peugeot Citroen
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
1,400 1,400 Toyota Motor
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
Auto/Truck Parts & Equipment-Original (0.36%)
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
8,400 8,400 Keihin
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
12,950 12,950 Showa
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
Auto/Truck Parts & Equipment-Replacement (0.22%)
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
5,280 5,280 Hyundai Mobis
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
Beverages-Non-alcoholic (0.17%)
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
3,200 3,200 Coca-Cola West Japan
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
1,984 1,984 Cott 1
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
Beverages-Wine & Spirits (1.35%)
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
70,420 70,420 Allied Domecq
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
3,444 3,444 Davide Campari
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
16,543 16,543 Diageo
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
Brewery (0.93%)
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
17,205 17,205 Interbrew
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
5,270 5,270 Molson 1
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
Broadcasting Services & Programming (0.20%)
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
19,310 19,310 HIT Entertainment
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
36 36 SKY Perfect Communications 1
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
Building & Construction Products-Miscellaneous (0.35%)
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
2,969 2,969 CRH
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
7,697 7,697 CSR
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
452 452 Geberit
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
Building & Construction-Miscellaneous (0.22%)
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
35,040 35,040 Amec
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
Building-Heavy Construction (0.20%)
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
7,107 7,107 Grupo Dragados
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
Building Products-Cement & Aggregate (0.81%)
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
5,324 5,324 Lafarge
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
Building-Residential & Commercial (0.37%)
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
9,050 9,050 Persimmon
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
5,000 37,400 42,400 Sekisui House
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
Casino Services (0.18%)
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
35,100 35,100 Aristocrat Leisure
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
Cellular Telecommunications (1.97%)
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
12,800 12,800 America Movil 1
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
35 35 NTT DoCoMo
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
10,500 10,500 SmarTone Telecommunications Holdings 1
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
489,814 489,814 Vodafone Group
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
Chemicals-Diversified (1.86%)
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
11,631 11,631 DSMA
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
8,120 8,120 Shin-Estu Chemical
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
18,000 18,000 Showa Denko K. K. 1
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
50,000 50,000 Sumitomo Chemical
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
14,000 14,000 Tokuyama
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
13,000 13,000 Tosoh
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
Chemicals-Specialty (0.70%)
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
1,317 1,317 Ciba Specialty Chemicals
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
57 57 Gurit-Heberlein
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
2,143 2,143 Lonza Group
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
5,030 5,030 NOVA Chemicals
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
Commercial Banks (5.33%)
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
38,816 38,816 Allied Irish Banks
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
25,100 25,100 Anglo Irish Bank
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
3,483 3,483 Banco Santander Central Hispano
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
12,700 12,700 Bangkok Bank 1
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
3,000 3,000 Bank of Fukuoka
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
30,900 30,900 Bank of Ireland
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
247,000 247,000 Chinatrust Financial Holding 1
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
1,400 1,400 Dah Sing Financial
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
4,715 4,715 Danske Bank
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
52,320 52,320 DnB Holding
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
5,981 5,981 ForeningsSparbanken
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
18,602 18,602 Fortis
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
600 600 Hang Seng Bank
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
601 601 Kookmin Bank 1
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
4,188 4,188 Kookmin Bank
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
15,460 15,460 KorAm Bank 1
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
13,940 13,940 National Bank of Canada
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
58,496 58,496 Nordea
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
Commercial Services (0.28%)
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
10,550 10,550 Intertek Testing Services 1
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
252 252 Societe Generale de Surveillance Holding 1
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
Computers (0.01%)
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
10,000 10,000 Legend Group
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
Computers-Integrated Systems (0.27%)
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
15,000 15,000 Fujitsu
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
2,800 2,800 Meitec
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
200 200 OBIC
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
Computers-Memory Devices (0.06%)
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
800 800 TDK
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
Computers-Peripheral Equipment (0.01%)
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
1,068 1,068 Benq
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
Consulting Services (0.10%)
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
1,640 1,640 Drake Beam Morin
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
5,000 5,000 Linmark Group
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
Containers-Paper & Plastic (0.31%)
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
7,509 7,509 Amcor
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
14,680 14,680 Huhtamaki Oyj
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
Cooperative Banks (0.54%)
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
23,600 23,600 Banco Popolare di Verona e Novara
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
Cosmetics & Toiletries (0.81%)
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
5,140 5,140 Aderans
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
3,000 3,000 Kao
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
830 830 Kose
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
19,500 19,500 Shiseido
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
Distribution-Wholesale (0.26%)
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
8,000 56,740 64,740 Esprit Holdings
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
3,720 3,720 Hagemeyer
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
Diversified Financial Services (0.47%)
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
5,170 5,170 Gjensidige
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
8,410 8,410 Shinhan Financial Group
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
Diversified Minerals (1.95%)
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
28,048 28,048 Anglo American
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
9,982 9,982 BHP Billiton
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
7,310 7,310 Cia Vale do Rio Doce 1
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
14,800 14,800 Teck Cominco
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
60,822 60,822 WMC
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
5,925 5,925 Xstrata
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
Diversified Operations (0.49%)
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
26,900 26,900 Bodycote International
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
9,650 9,650 Brascan
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
44,000 44,000 First Pacific 1
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
3,000 3,000 Hutchison Whampoa
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
Diversified Operators-Commercial Service (0.14%)
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
6,911 6,911 Brambles Industries
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
13,000 13,000 NEC 1
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
Educational Software (0.07%)
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
34,422 34,422 Riverdeep Group 1
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
Electric Products-Miscellaneous (0.02%)
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
16,000 16,000 Techtronic Industries
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
Electric-Generation (0.01%)
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
20,000 20,000 Beijing Datang Power Generation
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
Electric-Integrated (1.28%)
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
10,441 10,441 E.On AG
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
3,000 3,000 Hongkong Electric Holdings
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
12,440 12,440 Korea Electric Power
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
Electric-Transmission (0.12%)
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
9,057 9,057 National Grid Transco
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
Electronic Components-Miscellaneous (2.76%)
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
8,000 8,000 Dianippon Screen Manufacturing 1
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
3,000 3,000 Hosiden
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
24,239 24,239 Koninklijke Philips Electronics
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
4,110 4,110 Kyocera
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
5,000 5,000 Omron
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
1,888 1,888 Samsung Electronics
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
950 950 Samsung Electronics
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
14,450 14,450 Venture Manufacturing
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
9,000 9,000 Yaskawa Electric
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
Electronic Components-Semiconductor (0.11%)
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
1,080 1,080 Aixtron
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
5,000 5,000 New Japan Radio
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
200 200 Rohm
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
Electronic Measurement Instruments (0.11%)
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
800 800 Advantest
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
200 200 Keyence
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
Energy-Alternate Sources (0.22%)
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
7,224 7,224 Grupo Auxiliar Metalurgico 1
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
Engineering-Research & Development Services (0.44%)
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
3,318 3,318 Fugro
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
8,000 8,000 JGC
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
8,350 8,350 Takuma
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
Entertainment Software (0.16%)
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
23,300 23,300 Eidos 1
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
3,500 3,500 UBI Soft Entertainment 1
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
Finance-Consumer Loans (0.22%)
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
700 700 Aiful
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
11,900 11,900 Nissin
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
Finance-Investment Banker & Broker (1.12%)
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
10,307 10,307 Close Brothers Group
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
8,040 8,040 D Carnegie 1
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
6,730 6,730 ICAP
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
20,000 20,000 Nikko Securities
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
12,293 12,293 Nomura Securities
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
122,767 122,767 Polaris Securities 1
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
4,000 4,000 Van Der Moolen Holding
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
Finance-Leasing Company (0.14%)
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
1,300 1,300 ORIX
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
Finance-Other Services (0.88%)
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
273,499 273,499 Grupo Financiero BBVA Bancomer 1
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
104,200 104,200 Hong Kong Exchanges & Clearing
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
24,869 24,869 Intrum Justitia 1
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
Food-Catering (0.34%)
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
13,901 13,901 Compass Group
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
24,760 24,760 Elior
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
Food-Miscellaneous/Diversified (3.84%)
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
4,950 4,950 CSM
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
118,290 118,290 Global Bio-Chem Technology Group
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
4,062 4,062 Nestle
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
1,690 1,690 Nong Shim
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
6,230 6,230 Nutreco Holding
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
13,102 13,102 Unilever
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
Food-Retail (0.48%)
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
5,400 5,400 Dairy Farm International Holdings
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
52,901 52,901 Safeway
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
20,717 20,717 Tesco
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
Forestry (0.17%)
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
14,000 14,000 Tembec 1
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
Food-Wholesale & Distribution (0.27%)
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
100,571 100,571 Fyffes
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
Gas-Distribution (1.33%)
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
94,147 94,147 Centrica
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
23,300 23,300 Toho Gas
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
126,000 126,000 Tokyo Gas
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
29,000 29,000 Xinao Gas Holdings 1
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
Gas-Transportation (0.59%)
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
104,147 104,147 Snam Rete Gas
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
Gold Mining (0.35%)
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
9,100 9,100 Barrick Gold
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
32,900 32,900 Sons of Gwalia
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
Import & Export (0.83%)
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
57,515 57,515 Mitsubishi
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
18,000 18,000 Sumitomo
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
Instruments-Scientific (0.01%)
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
1,000 1,000 Moritex
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
Investment Companies (0.17%)
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
1,260 1,260 EURAZEO 1
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
21,239 21,239 Macquarie Infrastructure Group
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
Life & Health Insurance (0.70%)
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
2,060 2,060 AMP
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
4,282 4,282 Industrial-Alliance Life Insurance 1
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
8,060 8,060 Power Corp. of Canada
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
11,005 11,005 Prudential
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
Machinery Tools & Related Products (0.86%)
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
55,900 55,900 ASM Pacific Technology
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
14,369 14,369 Sandvik
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
Machinery-Construction & Mining (0.70%)
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
17,624 17,624 Atlas Copco
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
Machinery-Electrical (0.82%)
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
17,000 17,000 Lindeteves-Jacoberg
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
8,605 8,605 Schneider Electric
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
300 300 SMC
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
Machinery-General Industry (0.02%)
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
4,000 4,000 Nippon Thompson
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
Marine Services (0.23%)
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
2,722 2,722 IHC Caland
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
Medical Laboratory & Testing Service (0.06%)
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
2,612 2,612 Unilabs
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
Medical-Drugs (5.97%)
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
1,731 1,731 AstraZeneca
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
11,895 11,895 Aventis
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
500 500 Eisai
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
29,481 29,481 GlaxoSmithKline
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
16,121 16,121 Novartis
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
4,800 4,800 Novo Nordisk
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
631 631 Pharmacia
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
699 699 Sanofi-Synthelabo
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
4,324 4,324 Schering
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
7,117 7,117 Takeda Chemical Industries
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
2,580 2,580 Teva Pharmaceutical Industries
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
11,293 11,293 Yamanouchi Pharmaceutical
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
Medical Products (0.20%)
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
2,530 2,530 Hogy Medical
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
Medical-Biomedical/Gene (0.35%)
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
6,110 6,110 Novozymes
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
6,350 6,350 PerBio Science 1
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
Medical-Drugs (0.23%)
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
19,200 19,200 Galen Holdings
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
Metal-Aluminum (0.01%)
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
25,000 25,000 Aluminum Corp. of China
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
Metal-Diversified (0.53%)
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
15,350 15,350 Rio Tinto
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
Miscellaneous Investing (0.21%)
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
27 27 ORIX JREIT 1
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
Miscellaneous Manufacturers (0.08%)
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
39,600 39,600 FKI
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
Money Center Banks (8.03%)
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
29,490 29,490 ABN AMRO Holding
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
107,711 107,711 Barclays
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
23,634 23,634 BNP Paribas
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
3,000 3,000 DBS Group Holdings
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
5,923 5,923 HSBC Holdings
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
800 800 HSBC Holdings
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
14 14 Mitsubishi Tokyo Financial Group
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
13,266 13,266 Royal Bank of Canada
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
22,265 22,265 Royal Bank of Scotland
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
7,000 7,000 Sumitomo Mitsui Banking
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
9,589 9,589 UBS
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
31 31 UFJ Holdings
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
97,000 97,000 UniCredito Italiano
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
4,000 4,000 United Overseas Bank
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
Mortgage Banks (0.24%)
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
510 2,170 2,680 DEPFA Bank
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
Multi-line Insurance (2.11%)
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
26,813 26,813 Aegon
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
18,123 18,123 AXA
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
3,251 3,251 ING Groep
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
33,500 33,500 Riunione Adriatica di Sicurta
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
Multimedia (1.37%)
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
22,917 22,917 News
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
4,730 4,730 News
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
8,655 8,655 Pearson
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
5,000 5,000 Tokyo Broadcasting System
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
Non-Hotel Gambling (0.71%)
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
136,970 136,970 Hilton Group
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
Office Automation & Equipment (0.98%)
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
680 680 Canon
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
11,000 11,000 Canon
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
2,360 2,360 Neopost
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
Office Supplies & Forms (0.11%)
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
21,840 21,840 Corporate Express Australia
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
Oil Company-Exploration & Production (0.78%)
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
9,003 9,003 Canadian Natural Resources 1
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
4,600 4,600 Talisman Energy
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
Oil Company-Integrated (6.44%)
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
17,034 17,034 BP Amoco
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
54,000 54,000 China Petroleum & Chemical
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
70,403 70,403 ENI
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
161,048 161,048 Shell Transport & Trading
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
9,118 9,118 TotalFinaElf
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
Oil Refining & Marketing (0.39%)
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
27,884 27,884 Statoil
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
Optical Supplies (0.09%)
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
1,129 1,129 Cie Generale D'Optique Essilor International
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
Paper & Related Products (1.67%)
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
5,782 5,782 Billerud
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
18,200 18,200 Hokuetsu Paper Mills
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
26,200 26,200 Norske Skog Canada 1
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
39,500 39,500 Oji Paper
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
36,069 36,069 Stora Enso Oyj
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
5,954 5,954 UPM-Kymmene Oyj
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
Physician Practice Management (0.04%)
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
6,982 6,982 Nestor Healthcare Group
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
Pipelines (0.46%)
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
16,660 16,660 TransCanada Pipelines
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
Printing-Commercial (0.16%)
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
11,500 11,500 Toppan Printing
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
Property & Casualty Insurance (0.96%)
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
12,428 12,428 Kingsway Financial Services 1
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
70,000 70,000 Mitsui Sumitomo Insurance 1
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
28,198 28,198 NRMA Insurance Group
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
1,260 1,260 Samsung Fire & Marine Insurance
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
Public Thoroughfares (0.81%)
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
82,890 82,890 Brisa-Auto Estradas de Portugal
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
Publishing-Newspapers (0.24%)
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
77,500 77,500 John Fairfax Holdings
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
Publishing-Periodicals (0.65%)
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
19,484 19,484 Wolters Kluwer
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
Real Estate Operator & Developer (0.20%)
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
3,000 3,000 Cheung Kong
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
72,100 72,100 Hang Lung Group
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
10,000 10,000 Keppel Land
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
8,669 8,669 Kerry Properties
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
1,000 1,000 Sun Hung Kai Properties
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
Reinsurance (0.36%)
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
3,160 3,160 Converium Holding 1
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
891 891 Swiss Reinsurance
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
Rental-Auto & Equipment (0.07%)
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
87,030 87,030 Ashtead Group
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
Research & Development (0.00%)
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
5,403 5,403 Silex Systems 1
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
Respiratory Products (0.03%)
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
5,820 5,820 ResMed 1
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
Retail-Apparel & Shoe (0.43%)
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
1,149 1,149 Cortefiel
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
2,178 2,178 Debenhams
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
16,000 16,000 Giordano International
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
55,401 55,401 Matalan
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
Retail-Automobile (0.01%)
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
16,000 16,000 Astra International
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
Retail-Computer Equipment (0.20%)
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
61,350 61,350 Electronics Boutique
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
Retail-Consumer Electronics (0.38%)
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
1,600 3,686 5,286 Yamada Denki
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
800 2,343 3,143 Yamada Denki
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
Retail-Convenience Store (0.02%)
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
1,670 1,670 T & S Stores
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
Retail-Discount (0.02%)
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
8,764 8,764 Harvey Norman Holdings
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
Retail-Major Department Store (1.33%)
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
25,965 25,965 Metro
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
755 755 Shinsegae Department Store
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
Retail-Miscellaneous/Diversified (0.59%)
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
3,700 3,700 Aeon
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
4,260 4,260 Ito-Yokado
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
4,110 4,110 York-Benimaru
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
Retail-Pubs (0.30%)
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
34,800 34,800 J. D. Wetherspoon 1
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
Semiconductor Component-Integrated Circuits (0.31%)
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
223,045 223,045 United Microelectronics 1
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
Semiconductor Equipment (0.16%)
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
10,150 10,150 ASE Test 1
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
3,214 3,214 ASM Lithography Holding 1
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
Shipbuilding (0.14%)
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
24,760 24,760 Samsung Heavy Industries 1
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
Soap & Cleaning Products (0.22%)
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
6,517 6,517 Reckitt Benckiser
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
Steel-Producers (1.20%)
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
1,278 1,278 Acerinox
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
26,081 26,081 Arcelor 1
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
9,773 9,773 BHP Steel 1
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
5 5 China Steel
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
1,800 1,800 Pohang Iron & Steel
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
4,610 4,610 Voest-Alpine
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
Telecommunication Equipment (1.02%)
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
6,377 6,377 Nokia
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
16,299 16,299 Nokia
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
14,600 14,600 Tandberg 1
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
Telecommunication Services (0.34%)
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
8,835 8,835 SK Telecom
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
Telephone Communication (0.03%)
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
5,919 5,919 Telstra
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
Telephone-Integrated (3.30%)
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
15,410 15,410 Deutsche Telekom
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
15,368 15,368 KT
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
18 18 Nippon Telegraph & Telephone
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
12,508 12,508 Portugal Telecom
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
45,300 45,300 Royal KPN 1
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
5,994 5,994 TDC
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
107,011 107,011 Telecom Italia
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
14,811 14,811 Telecom Italia
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
Tobacco (1.84%)
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
24,810 24,810 Altadis
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
32,830 32,830 British American Tobacco
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
44,900 44,900 Kawasaki Kisen Kaisha
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
25,200 25,200 Mitsui O.S.K. Lines
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
Transport-Marine (0.01%)
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
1,794 1,794 Evergreen Marine
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
Transport-Rail (0.16%)
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
15 15 East Japan Railway
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
5 5 West Japan Railway
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
Transport-Services (0.96%)
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
1,090 1,090 CHC Helicopter
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
25,526 25,526 Exel
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
13,500 13,500 TPG
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
Water (0.28%)
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
24,440 24,440 Kelda Group
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
Water Treatment Systems (0.09%)
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
5,000 5,000 Kurita Water Industries
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
284 284 Vivendi Environnement 1
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
Wire & Cable Products (0.05%)
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
5,000 5,000 Sumitomo Electric Industries
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
Total Common Stocks
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
PREFERRED STOCKS (0.04%)
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
Multimedia (0.04%)
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
4,249 4,249 News
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
Total Preferred Stocks
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
COMMERCIAL PAPER (4.20%)
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
Finance-Mortgage Loan/Banker (4.20%)
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
Investment in Joint Trading Account;
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
1,648,144 559,491 2,207,635 Federal Home Loan Bank System; 1.72%; 11/01/02
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
Total Commercial Paper
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
Total Portfolio Investments (99.04%)
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
Cash and receivables, net of liabilities (.96%)
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
Total Net Assets (100.00%)
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
1 Non-income producing security.
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Market Value
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
International International
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Fund I SmallCap Fund Combined
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
COMMON STOCKS (94.80%)
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Advertising Agencies (0.12%)
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Asatsu-DK 63,186 63,186
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Advertising Sales (0.00%)
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Clear Media 1 1,051 1,051
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Advertising Services (0.09%)
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Taylor Nelson Sofres 48,187 48,187
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Aerospace & Defense (0.03%)
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
BAE Systems 15,155 15,155
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Agricultural Chemicals (0.13%)
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Agrium 68,108 68,108
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Agricultural Operations (0.24%)
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Beghin-Say 70,922 70,922
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Hokuto 54,985 54,985
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Airlines (0.99%)
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
China Southern Airlines 11,283 11,283
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Deutsche Lufthansa 1 248,864 248,864
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
easyJet 1 153,711 153,711
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Singapore Airlines 12,460 12,460
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Westjet Airlines 1 95,409 95,409
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Apparel Manufacturers (0.10%)
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Onward Kashiyama 50,004 50,004
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Appliances (0.08%)
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
SEB 44,088 44,088
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Applications Software (0.00%)
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Aldata Solution Oyj 1 1,598 1,598
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Audio & Video Products (0.86%)
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Matsushita Electric Industrial 62,885 62,885
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Sony 387,152 387,152
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Auto-Cars & Light Trucks (3.94%)
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Bayerische Motoren Werke 388,915 388,915
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Denway Motors 8,001 8,001
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Honda Motor 482,215 482,215
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Nissan Motor 700,354 700,354
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
PSA Peugeot Citroen 456,402 456,402
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Toyota Motor 34,054 34,054
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Auto/Truck Parts & Equipment-Original (0.36%)
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Keihin 83,239 83,239
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Showa 105,706 105,706
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Auto/Truck Parts & Equipment-Replacement (0.22%)
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Hyundai Mobis 118,513 118,513
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Beverages-Non-alcoholic (0.17%)
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Coca-Cola West Japan 53,024 53,024
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Cott 1 36,043 36,043
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Beverages-Wine & Spirits (1.35%)
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Allied Domecq 420,857 420,857
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Davide Campari 102,898 102,898
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Diageo 186,347 186,347
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Brewery (0.93%)
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Interbrew 387,617 387,617
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Molson 1 99,174 99,174
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Broadcasting Services & Programming (0.20%)
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
HIT Entertainment 72,958 72,958
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
SKY Perfect Communications 1 32,030 32,030
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Building & Construction Products-Miscellaneous (0.35%)
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
CRH 37,635 37,635
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
CSR 23,495 23,495
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Geberit 125,079 125,079
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Building & Construction-Miscellaneous (0.22%)
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Amec 114,163 114,163
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Building-Heavy Construction (0.20%)
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Grupo Dragados 102,826 102,826
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Building Products-Cement & Aggregate (0.81%)
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Lafarge 424,161 424,161
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Building-Residential & Commercial (0.37%)
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Persimmon 58,582 58,582
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Sekisui House 36,772 98,606 135,378
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Casino Services (0.18%)
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Aristocrat Leisure 95,065 95,065
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Cellular Telecommunications (1.97%)
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
America Movil 1 172,032 172,032
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
NTT DoCoMo 64,566 64,566
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
SmarTone Telecommunications Holdings 1 11,241 11,241
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Vodafone Group 787,388 787,388
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Chemicals-Diversified (1.86%)
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
DSMA 491,826 491,826
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Shin-Estu Chemical 250,540 250,540
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Showa Denko K. K. 1 21,598 21,598
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Sumitomo Chemical 149,784 149,784
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Tokuyama 35,768 35,768
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Tosoh 27,590 27,590
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Chemicals-Specialty (0.70%)
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Ciba Specialty Chemicals 92,784 92,784
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Gurit-Heberlein 27,801 27,801
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Lonza Group 130,290 130,290
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
NOVA Chemicals 100,569 100,569
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Commercial Banks (5.33%)
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Allied Irish Banks 543,919 543,919
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Anglo Irish Bank 167,781 167,781
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Banco Santander Central Hispano 21,351 21,351
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Bangkok Bank 1 15,114 15,114
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Bank of Fukuoka 11,069 11,069
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Bank of Ireland 342,723 342,723
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Chinatrust Financial Holding 1 196,861 196,861
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Dah Sing Financial 11,139 11,139
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Danske Bank 75,081 75,081
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
DnB Holding 241,317 241,317
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
ForeningsSparbanken 65,930 65,930
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Fortis 340,062 340,062
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Hang Seng Bank 6,481 6,481
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Kookmin Bank 1 19,442 19,442
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Kookmin Bank 139,536 139,536
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
KorAm Bank 1 98,457 98,457
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
National Bank of Canada 261,707 261,707
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Nordea 239,413 239,413
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Commercial Services (0.28%)
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Intertek Testing Services 1 72,624 72,624
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Societe Generale de Surveillance Holding 1 73,917 73,917
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Computers (0.01%)
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Legend Group 3,622 3,622
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Computers-Integrated Systems (0.27%)
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Fujitsu 48,608 48,608
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Meitec 62,509 62,509
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
OBIC 31,002 31,002
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Computers-Memory Devices (0.06%)
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
TDK 31,410 31,410
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Computers-Peripheral Equipment (0.01%)
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Benq 7,659 7,659
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Consulting Services (0.10%)
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Drake Beam Morin 51,539 51,539
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Linmark Group 1,058 1,058
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Containers-Paper & Plastic (0.31%)
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Amcor 33,882 33,882
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Huhtamaki Oyj 130,112 130,112
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Cooperative Banks (0.54%)
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Banco Popolare di Verona e Novara 282,790 282,790
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Cosmetics & Toiletries (0.81%)
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Aderans 111,812 111,812
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Kao 68,566 68,566
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Kose 25,677 25,677
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Shiseido 216,790 216,790
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Distribution-Wholesale (0.26%)
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Esprit Holdings 13,437 95,301 108,738
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Hagemeyer 28,182 28,182
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Diversified Financial Services (0.47%)
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Gjensidige 160,594 160,594
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Shinhan Financial Group 88,690 88,690
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Diversified Minerals (1.95%)
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Anglo American 358,947 358,947
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
BHP Billiton 53,683 53,683
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Cia Vale do Rio Doce 1 192,618 192,618
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Teck Cominco 102,576 102,576
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
WMC 256,210 256,210
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Xstrata 61,412 61,412
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Diversified Operations (0.49%)
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Bodycote International 39,981 39,981
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Brascan 188,872 188,872
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
First Pacific 1 4,175 4,175
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Hutchison Whampoa 18,463 18,463
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Diversified Operators-Commercial Service (0.14%)
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Brambles Industries 26,274 26,274
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
NEC 1 47,751 47,751
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Educational Software (0.07%)
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Riverdeep Group 1 35,111 35,111
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Electric Products-Miscellaneous (0.02%)
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Techtronic Industries 12,206 12,206
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Electric-Generation (0.01%)
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Beijing Datang Power Generation 6,347 6,347
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Electric-Integrated (1.28%)
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
E.On AG 472,526 472,526
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Hongkong Electric Holdings 12,193 12,193
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Korea Electric Power 188,361 188,361
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Electric-Transmission (0.12%)
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
National Grid Transco 64,366 64,366
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Electronic Components-Miscellaneous (2.76%)
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Dianippon Screen Manufacturing 1 29,516 29,516
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Hosiden 25,835 25,835
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Koninklijke Philips Electronics 434,470 434,470
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Kyocera 242,219 242,219
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Omron 59,179 59,179
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Samsung Electronics 269,512 269,512
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Samsung Electronics 268,978 268,978
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Venture Manufacturing 108,025 108,025
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Yaskawa Electric 15,721 15,721
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Electronic Components-Semiconductor (0.11%)
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Aixtron 6,396 6,396
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
New Japan Radio 23,957 23,957
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Rohm 25,190 25,190
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Electronic Measurement Instruments (0.11%)
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Advantest 26,316 26,316
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Keyence 33,108 33,108
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Energy-Alternate Sources (0.22%)
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Grupo Auxiliar Metalurgico 1 118,326 118,326
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Engineering-Research & Development Services (0.44%)
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Fugro 133,076 133,076
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
JGC 44,600 44,600
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Takuma 55,957 55,957
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Entertainment Software (0.16%)
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Eidos 1 41,921 41,921
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
UBI Soft Entertainment 1 42,667 42,667
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Finance-Consumer Loans (0.22%)
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Aiful 29,426 29,426
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Nissin 86,936 86,936
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Finance-Investment Banker & Broker (1.12%)
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Close Brothers Group 87,883 87,883
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
D Carnegie 1 49,578 49,578
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
ICAP 95,025 95,025
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Nikko Securities 80,157 80,157
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Nomura Securities 141,483 141,483
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Polaris Securities 1 47,687 47,687
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Van Der Moolen Holding 89,325 89,325
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Finance-Leasing Company (0.14%)
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
ORIX 73,537 73,537
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Finance-Other Services (0.88%)
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Grupo Financiero BBVA Bancomer 1 215,551 215,551
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Hong Kong Exchanges & Clearing 138,276 138,276
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Intrum Justitia 1 108,570 108,570
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Food-Catering (0.34%)
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Compass Group 61,493 61,493
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Elior 116,469 116,469
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Food-Miscellaneous/Diversified (3.84%)
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
CSM 98,873 98,873
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Global Bio-Chem Technology Group 25,328 25,328
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Nestle 870,900 870,900
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Nong Shim 97,086 97,086
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Nutreco Holding 82,179 82,179
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Unilever 840,126 840,126
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Food-Retail (0.48%)
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Dairy Farm International Holdings 4,401 4,401
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Safeway 183,735 183,735
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Tesco 64,256 64,256
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Forestry (0.17%)
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Tembec 1 91,665 91,665
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Food-Wholesale & Distribution (0.27%)
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Fyffes 142,421 142,421
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Gas-Distribution (1.33%)
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Centrica 268,073 268,073
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Toho Gas 57,437 57,437
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Tokyo Gas 368,199 368,199
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Xinao Gas Holdings 1 5,280 5,280
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Gas-Transportation (0.59%)
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Snam Rete Gas 311,473 311,473
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Gold Mining (0.35%)
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Barrick Gold 136,313 136,313
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Sons of Gwalia 48,388 48,388
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Import & Export (0.83%)
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Mitsubishi 359,146 359,146
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Sumitomo 78,018 78,018
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Instruments-Scientific (0.01%)
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Moritex 3,967 3,967
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Investment Companies (0.17%)
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
EURAZEO 1 56,150 56,150
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Macquarie Infrastructure Group 34,066 34,066
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Life & Health Insurance (0.70%)
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
AMP 14,520 14,520
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Industrial-Alliance Life Insurance 1 94,367 94,367
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Power Corp. of Canada 178,810 178,810
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Prudential 78,683 78,683
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Machinery Tools & Related Products (0.86%)
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
ASM Pacific Technology 108,583 108,583
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Sandvik 341,880 341,880
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Machinery-Construction & Mining (0.70%)
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Atlas Copco 369,315 369,315
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Machinery-Electrical (0.82%)
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Lindeteves-Jacoberg 7,173 7,173
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Schneider Electric 398,808 398,808
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
SMC 23,753 23,753
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Machinery-General Industry (0.02%)
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Nippon Thompson 13,027 13,027
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Marine Services (0.23%)
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
IHC Caland 120,763 120,763
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Medical Laboratory & Testing Service (0.06%)
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Unilabs 33,619 33,619
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Medical-Drugs (5.97%)
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
AstraZeneca 64,535 64,535
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Aventis 712,078 712,078
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Eisai 10,795 10,795
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
GlaxoSmithKline 562,240 562,240
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Novartis 614,830 614,830
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Novo Nordisk 132,402 132,402
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Pharmacia 27,410 27,410
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Sanofi-Synthelabo 42,745 42,745
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Schering 198,473 198,473
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Takeda Chemical Industries 295,694 295,694
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Teva Pharmaceutical Industries 199,769 199,769
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Yamanouchi Pharmaceutical 276,541 276,541
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Medical Products (0.20%)
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Hogy Medical 106,768 106,768
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Medical-Biomedical/Gene (0.35%)
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Novozymes 111,543 111,543
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
PerBio Science 1 73,810 73,810
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Medical-Drugs (0.23%)
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Galen Holdings 118,351 118,351
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Metal-Aluminum (0.01%)
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Aluminum Corp. of China 2,757 2,757
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Metal-Diversified (0.53%)
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Rio Tinto 277,374 277,374
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Miscellaneous Investing (0.21%)
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
ORIX JREIT 1 109,975 109,975
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Miscellaneous Manufacturers (0.08%)
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
FKI 43,368 43,368
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Money Center Banks (8.03%)
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
ABN AMRO Holding 433,094 433,094
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Barclays 744,831 744,831
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
BNP Paribas 942,276 942,276
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
DBS Group Holdings 21,068 21,068
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
HSBC Holdings 65,978 65,978
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
HSBC Holdings 8,719 8,719
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Mitsubishi Tokyo Financial Group 91,307 91,307
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Royal Bank of Canada 461,075 461,075
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Royal Bank of Scotland 523,200 523,200
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Sumitomo Mitsui Banking 28,969 28,969
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
UBS 456,975 456,975
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
UFJ Holdings 46,812 46,812
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
UniCredito Italiano 365,025 365,025
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
United Overseas Bank 30,356 30,356
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Mortgage Banks (0.24%)
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
DEPFA Bank 23,535 100,141 123,676
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Multi-line Insurance (2.11%)
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Aegon 363,509 363,509
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
AXA 270,465 270,465
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
ING Groep 54,377 54,377
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Riunione Adriatica di Sicurta 417,342 417,342
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Multimedia (1.37%)
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
News 532,362 532,362
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
News 27,931 27,931
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Pearson 91,942 91,942
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Tokyo Broadcasting System 68,566 68,566
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Non-Hotel Gambling (0.71%)
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Hilton Group 372,864 372,864
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Office Automation & Equipment (0.98%)
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Canon 24,997 24,997
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Canon 405,844 405,844
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Neopost 82,266 82,266
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Office Supplies & Forms (0.11%)
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Corporate Express Australia 59,151 59,151
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Oil Company-Exploration & Production (0.78%)
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Canadian Natural Resources 1 244,703 244,703
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Talisman Energy 167,929 167,929
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Oil Company-Integrated (6.44%)
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
BP Amoco 108,998 108,998
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
China Petroleum & Chemical 8,377 8,377
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
ENI 977,476 977,476
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Shell Transport & Trading 1,033,034 1,033,034
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
TotalFinaElf 1,256,011 1,256,011
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Oil Refining & Marketing (0.39%)
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Statoil 202,476 202,476
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Optical Supplies (0.09%)
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Cie Generale D'Optique Essilor International 45,449 45,449
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Paper & Related Products (1.67%)
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Billerud 59,635 59,635
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Hokuetsu Paper Mills 96,861 96,861
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Norske Skog Canada 1 85,354 85,354
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Oji Paper 170,562 170,562
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Stora Enso Oyj 271,069 271,069
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
UPM-Kymmene Oyj 193,102 193,102
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Physician Practice Management (0.04%)
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Nestor Healthcare Group 18,897 18,897
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Pipelines (0.46%)
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
TransCanada Pipelines 239,447 239,447
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Printing-Commercial (0.16%)
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Toppan Printing 85,515 85,515
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Property & Casualty Insurance (0.96%)
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Kingsway Financial Services 1 95,900 95,900
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Mitsui Sumitomo Insurance 1 290,834 290,834
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
NRMA Insurance Group 38,968 38,968
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Samsung Fire & Marine Insurance 76,520 76,520
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Public Thoroughfares (0.81%)
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Brisa-Auto Estradas de Portugal 422,743 422,743
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Publishing-Newspapers (0.24%)
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
John Fairfax Holdings 125,596 125,596
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Publishing-Periodicals (0.65%)
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Wolters Kluwer 341,715 341,715
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Real Estate Operator & Developer (0.20%)
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Cheung Kong 19,906 19,906
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Hang Lung Group 65,172 65,172
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Keppel Land 6,456 6,456
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Kerry Properties 6,113 6,113
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Sun Hung Kai Properties 6,231 6,231
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Reinsurance (0.36%)
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Converium Holding 1 127,582 127,582
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Swiss Reinsurance 61,867 61,867
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Rental-Auto & Equipment (0.07%)
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Ashtead Group 34,380 34,380
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Research & Development (0.00%)
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Silex Systems 1 1,529 1,529
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Respiratory Products (0.03%)
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
ResMed 1 18,218 18,218
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Retail-Apparel & Shoe (0.43%)
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Cortefiel 4,028 4,028
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Debenhams 10,767 10,767
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Giordano International 6,103 6,103
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Matalan 204,553 204,553
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Retail-Automobile (0.01%)
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Astra International 3,597 3,597
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Retail-Computer Equipment (0.20%)
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Electronics Boutique 107,260 107,260
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Retail-Consumer Electronics (0.38%)
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Yamada Denki 37,613 86,652 124,265
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Yamada Denki 19,721 57,757 77,478
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Retail-Convenience Store (0.02%)
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
T & S Stores 11,549 11,549
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Retail-Discount (0.02%)
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Harvey Norman Holdings 12,306 12,306
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Retail-Major Department Store (1.33%)
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Metro 596,545 596,545
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Shinsegae Department Store 101,927 101,927
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Retail-Miscellaneous/Diversified (0.59%)
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Aeon 90,907 90,907
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Ito-Yokado 132,831 132,831
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
York-Benimaru 88,567 88,567
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Retail-Pubs (0.30%)
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
J. D. Wetherspoon 1 155,984 155,984
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Semiconductor Component-Integrated Circuits (0.31%)
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
United Microelectronics 1 161,724 161,724
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Semiconductor Equipment (0.16%)
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
ASE Test 1 43,239 43,239
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
ASM Lithography Holding 1 28,168 28,168
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Shipbuilding (0.14%)
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Samsung Heavy Industries 1 72,746 72,746
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Soap & Cleaning Products (0.22%)
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Reckitt Benckiser 117,966 117,966
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Steel-Producers (1.20%)
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Acerinox 45,410 45,410
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Arcelor 1 281,784 281,784
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
BHP Steel 1 16,164 16,164
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
China Steel 52 52
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Pohang Iron & Steel 169,142 169,142
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Voest-Alpine 116,917 116,917
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Telecommunication Equipment (1.02%)
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Nokia 108,305 108,305
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Nokia 270,889 270,889
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Tandberg 1 158,043 158,043
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Telecommunication Services (0.34%)
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
SK Telecom 177,318 177,318
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Telephone Communication (0.03%)
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Telstra 15,637 15,637
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Telephone-Integrated (3.30%)
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Deutsche Telekom 176,869 176,869
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
KT 315,659 315,659
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Nippon Telegraph & Telephone 65,970 65,970
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Portugal Telecom 75,559 75,559
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Royal KPN 1 287,108 287,108
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
TDC 129,394 129,394
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Telecom Italia 564,836 564,836
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Telecom Italia 117,632 117,632
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Tobacco (1.84%)
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Altadis 524,555 524,555
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
British American Tobacco 335,911 335,911
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Kawasaki Kisen Kaisha 62,671 62,671
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Mitsui O.S.K. Lines 43,608 43,608
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Transport-Marine (0.01%)
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Evergreen Marine 7,382 7,382
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Transport-Rail (0.16%)
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
East Japan Railway 68,321 68,321
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
West Japan Railway 16,203 16,203
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Transport-Services (0.96%)
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
CHC Helicopter 20,812 20,812
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Exel 262,376 262,376
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
TPG 218,717 218,717
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Water (0.28%)
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Kelda Group 144,533 144,533
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Water Treatment Systems (0.09%)
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Kurita Water Industries 42,446 42,446
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Vivendi Environnement 1 6,733 6,733
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Wire & Cable Products (0.05%)
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Sumitomo Electric Industries 25,386 25,386
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Total Common Stocks 41,445,315 8,334,535 49,779,850
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
PREFERRED STOCKS (0.04%)
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Multimedia (0.04%)
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
News 20,988 20,988
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Total Preferred Stocks 20,988 20,988
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
COMMERCIAL PAPER (4.20%)
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Finance-Mortgage Loan/Banker (4.20%)
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Investment in Joint Trading Account;
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Federal Home Loan Bank System; 1.72%; 11/01/02 1,648,144 559,491 2,207,635
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Total Commercial Paper 1,648,144 559,491 2,207,635
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Total Portfolio Investments (99.04%) 43,114,447 8,894,026 52,008,473
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Cash and receivables, net of liabilities (.96%) 516,102 -11,000 505,102
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Total Net Assets (100.00%) 43,630,549 8,883,026 52,513,575
- ------------------------------------------------------------------===================================================
- ------------------------------------------------------------------===================================================
1 Non-income producing security.
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. 27 to Registrant's
Registration Statement on Form N-1A (File No. 33-59474) as filed with the
Commission on February 25, 2003.
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 (a)(1)c to
Post-Effective Amendment No. 26 to Registrant's Registration Statement
on Form N-1A (File No. 33-59474) as filed with the Commission on
December 30, 2002.
(1)(b) Articles Supplementary are incorporated herein by reference to
Exhibit (a)(4) to Post-Effective Amendment No. 19, 26 and 27 to
Registrant's Registration Statement on Form N1-A (File No. 33-59474)
as filed with the Commission on October 12, 2001, December 30, 2002
and February 25, 2003 respectively.
(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 Principal Global Investors LLC-
incorporated herein by reference to Exhibit (d)(2)c to Post-Effective
Amendment No. 26 to Registrant's Registration Statement on Form N-1A
(File No. 33-59474) as filed with the Commission on December 30, 2002.
(7)(a) Distribution Agreement - incorporated herein by reference to Exhibit
(e)(1)i to Post-Effective Amendment No. 26 to Registrant's
Registration Statement on Form N-1A (File No. 33-59474) as filed with
the Commission on December 30, 2002.
(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
(g)(2)b 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.
1
(10)(a) 12b-1 Plan - Advisors Preferred Class Shares 12b-1 Plan is
incorporated herein by reference to Exhibit (m)(1) 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 (m)(1) 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) Voting Instruction Form
(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,
2002 - incorporated herein by reference to Form 24f-2 filed with the
Commission on January 23, 2003.
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.
2
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 March, 2003.
Principal Investors Fund, Inc.
By:_____________________________________
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
--------- ----- ----
__________________________ March 10, 2003
R. C. Eucher Director and President
(Principal Executive Officer)
_(L. D. Zimpleman*)_______ Director and March 10, 2003
L. D. Zimpleman Chairman of the Board
_(J. E. Aschenbrenner*)___ Director March 10, 2003
J. E. Aschenbrenner
_(J. D. Davis*)___________ Director March 10, 2003
J. D. Davis
_(P. A. Ferguson*)________ Director March 10, 2003
P. A. Ferguson
_(R. W. Gilbert*)_________ Director March 10, 2003
R. W. Gilbert
_(B. A. Lukavsky*)________ Director March 10, 2003
B. A. Lukavsky
_(W. C. Kimball*)_________ Director March 10, 2003
W. C. Kimball
__________________________ Executive Vice President March 10, 2003
M. J. Beer and Chief Financial Officer
(Principal Financial and
Accounting Officer)
By:____________________________________
R. C. Eucher
Attorney-in-Fact *Pursuant to powers
of attorney previously filed
3
March 10, 2003
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 I
series, par value $.01 per share, in connection with the transfer to it of the
assets and liabilities of the International SmallCap 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,
Michael D. Roughton
Counsel
4
February 18, 2003
Board of Directors
Principal Investor's Fund, Inc.
711 High Street
Des Moines, IA 50309
RE Acquisition of International SmallCap Fund
By 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 International SmallCap Fund ("International SmallCap") 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 March 10, 2003. 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.
International SmallCap is also a series fund of Principal Investors Fund, Inc.
International SmallCap, 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 International SmallCap 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 International SmallCap,
and assume all of its liabilities, in exchange for International Fund I shares.
International SmallCap will immediately liquidate and dissolve, distributing
the shares of International Fund I to International SmallCap shareholders in
retirement of their International SmallCap shares. Each holder of shares of
International SmallCap will as a result of the transaction own shares of
International Fund I of equal value.
5
Board of Directors
Page Two
February 18, 2003
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 International
SmallCap 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 International SmallCap in liquidation of International
SmallCap, will constitute a reorganization within the meaning of section
368(a)(1)(C) of the Code.
2. Shareholders of International SmallCap will recognize no gain or loss as a
consequence of the surrender of their shares of International SmallCap in
exchange for shares of International Fund I pursuant to the liquidation of
International SmallCap. (Code Section 354).
3. The tax basis and holding period of shares of International Fund I acquired
in exchange for shares of International SmallCap will be the same as the
tax basis and the holding period of the shares of International SmallCap
exchanged therefore. (Code Sections 354 and 1223).
4. International SmallCap 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 International SmallCap in the hands of
International Fund I will be the same as the tax basis of those assets in
the hands of International SmallCap 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,
Randy Bergstrom
Counsel to Principal Investors Fund, Inc.
6
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 November 27, 2002, with respect to the financial statements
and financial highlights of the International Fund I and International SmallCap
Fund of the Principal Investors Fund, Inc. incorporated by reference 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
March 7, 2003
7
logo
Principal
Financial
Group
Name Account No.: Account #
Address Shares: # of Shares
Address
City, State ZIP
Principal Investors Fund, Inc
Des Moines, Iowa 50392-2080
VOTING INSTRUCTION FORM FOR A SPECIAL MEETING OF SHAREHOLDERS
May 14, 2003
Principal Life Insurance Company, the custodian of your Individual Retirement
Account, is soliciting instructions, as provided in the IRA Custodial Agreement,
for voting Class J shares of the International SmallCap Fund, a series of
Principal Investors Fund, Inc., at the Special Meeting of the Fund to be held on
May 14, 2003 at 2:00 p.m. C.D.T.
Please check the appropriate box on the back of this form, date and sign exactly
as your name appears. Your signature acknowledges receipt of Notice of Special
Meeting of Shareholders and Information Statement dated April 10, 2003. If you
complete, sign and return the form, Principal Life Insurance Company will vote
as you have instructed. If you simply sign and return the form, it will be voted
FOR the proposal. If your instructions are not received, votes will be cast in
proportion to the instructions received from all plan participants with a voting
interest in the same share class of this Series. The Board of Directors of the
Fund recommends that you vote FOR the following proposal. Please mark your
choices by filling in the appropriate box below. Sign and return the voting
instruction form as soon as possible in the enclosed envelope.
Voting Instruction
I hereby instruct Principal Life Insurance Company, as custodian of my
IRA, to vote all of the full and fractional Class J shares of the
International SmallCap Fund included in my IRA as indicated below.
Receipt of the Notice of the Special Shareholders Meeting and of the
Information Statement for said Special Meeting is acknowledged.
Discretionary authority is hereby conferred as to all other matters as
may properly come before the meeting.
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 International SmallCap 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 and the International SmallCap 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.
_____ FOR _____ AGAINST _____ ABSTAIN
NOTE: Please sign exactly as your name appears on this form.
Signature __________________________ _____________________________, 2003