UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT
OF
REGISTERED MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number: 811-5972
Name of Registrant: Vanguard International Equity Index Funds
Address of Registrant: P.O. Box 2600
Valley Forge, PA 19482
Name and address of agent for service: R. Gregory Barton, Esquire
P.O. Box 876
Valley Forge, PA 19482
Registrant's telephone number, including area code: (610) 669-1000
Date of fiscal year end: October 31
Date of reporting period: November 1, 2002 - April 30, 2003
Item 1: Reports to Shareholders
[FRONT COVER]
VANGUARD(R) INTERNATIONAL STOCK INDEX FUNDS
SEMIANNUAL REPORT
APRIL 30, 2003
VANGUARD(R) EUROPEAN STOCK INDEX FUND
VANGUARD(R) PACIFIC STOCK INDEX FUND
VANGUARD(R) EMERGING MARKETS STOCK INDEX FUND
VANGUARD(R) TOTAL INTERNATIONAL STOCK INDEX FUND
VANGUARD(R) DEVELOPED MARKETS INDEX FUND
VANGUARD(R) INSTITUTIONAL DEVELOPED MARKETS INDEX FUND
[SHIP LOGO]
[THE VANGUARD GROUP[R]]
ETERNAL PRINCIPLES
Markets change, but the principles of successful investing do not. During the
past few years, radical upheaval in the stock market has displayed the power of
this simple truth to dramatic effect.
In the late 1990s, stocks experienced one of the greatest bull markets in
financial history. Then, in March 2000, the longest downturn since the Great
Depression began.
In both bull and bear markets, however, the principles of successful
investing are identical: balance, diversification, and attention to costs.
Balance among stock, bond, and money market funds allows you to pursue long-term
growth while moderating your risk. Diversification limits your exposure to the
disasters that can befall any one security or sector. Attention to costs means
you keep a larger share of any rewards produced by your investments.
These principles are timeless. In fact, they're the basis of our very first
mutual fund--Vanguard(R) Wellington(TM) Fund, a balanced portfolio established
in 1929. Over time, balance, diversification, and attention to costs have proven
to be the master keys to investment success.
================================================================================
SUMMARY
* Returns for the Vanguard International Stock Index Funds ranged from -4.0%
to 6.3% during the six-month period; each fund except the Pacific Stock
Index Fund posted a positive return.
* All of the funds outperformed their average mutual fund peers.
* Most long-term investors should hold international funds as a small part of
a well-diversified portfolio of stocks, bonds, and cash investments.
================================================================================
================================================================================
CONTENTS
1 Letter from the Chairman
6 Fund Profiles
14 Glossary of Investment Terms
15 Performance Summaries
19 Results of Proxy Voting
21 Financial Statements
71 Advantages of Vanguard.com
================================================================================
INDEXED TO MSCI
EMERGING MARKET STOCK INDEX FUND
EUROPEAN STOCK INDEX FUND
PACIFIC STOCK INDEX FUND
LETTER FROM THE CHAIRMAN
[PHOTO]
[JOHN J. BRENNAN]
FELLOW SHAREHOLDER,
Most stock markets around the world lost ground during the six months ended
April 30, 2003. However, for U.S.-based investors, the continued decline in the
value of the dollar against most major currencies translated into positive
overseas returns, with the notable exception of those from Asian markets. The
Vanguard International Stock Index Funds posted returns ranging from -4.0% for
the Pacific Stock Index Fund to 6.3% for the Emerging Markets Stock Index Fund.
The funds' returns closely tracked those of their respective unmanaged target
indexes and, in all cases, exceeded those of their average mutual fund peers.
The table at left presents the total returns (capital change plus
reinvested dividends) for each fund's share classes. Among these are our
Admiral(TM) Shares, offered to shareholders whose sizable, long-tenured accounts
bring economies of scale to our operations, and our Institutional Shares,
offered for a minimum initial investment of $10 million. Returns are also shown
for the funds' average mutual fund peers and target indexes.
================================================================================
TOTAL RETURNS SIX MONTHS ENDED
APRIL 30, 2003
- --------------------------------------------------------------------------------
VANGUARD EUROPEAN STOCK INDEX FUND
Investor Shares 4.1%
Admiral Shares 4.2
Institutional Shares 4.2
Average European Region Fund* 3.2
MSCI Europe Index 4.2
- --------------------------------------------------------------------------------
VANGUARD PACIFIC STOCK INDEX FUND
Investor Shares -4.0%
Admiral Shares -4.0
Institutional Shares -4.0
Average Japan/Pacific Region Fund* -7.0
MSCI Pacific Index -4.0
- --------------------------------------------------------------------------------
VANGUARD EMERGING MARKETS STOCK INDEX FUND
Investor Shares 6.3%
Institutional Shares 6.3
Average Emerging Markets Fund* 6.1
Select Emerging Markets Free Index** 6.5
- --------------------------------------------------------------------------------
VANGUARD TOTAL INTERNATIONAL STOCK INDEX FUND 2.2%
Average International Fund* 0.9
Total International Composite IndexY 2.2
- --------------------------------------------------------------------------------
VANGUARD DEVELOPED MARKETS INDEX FUND 1.9%
Average International Fund* 0.9
MSCI EAFE Index 1.8
- --------------------------------------------------------------------------------
VANGUARD INSTITUTIONAL DEVELOPED MARKETS INDEX FUND 1.9%
Average International Fund* 0.9
MSCI EAFE Index 1.8
================================================================================
*Derived from data provided by Lipper Inc.
**Consists of stocks that can be bought free of restrictions in 15 emerging
markets of Europe, Asia, Africa, and Latin America (95%) and a cash component
(5%) based on the Lipper Money Market average. The stock component of the index
is administered exclusively for Vanguard by MSCI.
+Consists of the MSCI Europe Index (65%), the MSCI Pacific Index (26%), and the
Select Emerging Markets Free Index (9%).
1
Information on the changes in the funds' net asset values and on per-share
distributions can be found on page 5.
MOST DEVELOPED MARKETS ROSE IN DOLLARS; EMERGING MARKETS DID WELL
During the six months ended April 30, investors in international markets added
the U.S. war with Iraq to a list of worries that included the sluggish state of
the world economy and the potential for heightened terrorist activity. As
tensions grew in Iraq during late 2002 and into the first quarter of 2003,
international stock markets drifted lower, but the mid-March invasion of Iraq
sparked a rally late in the first quarter.
Stocks outside the United States, as measured by the Morgan Stanley Capital
International (MSCI) All Country World Index Free ex USA, rose 3.1% in dollars
for the six months. This result lagged the 5.0% return of the Wilshire 5000
Total Market Index, a broad measure of the U.S. stock market. Meanwhile, the
MSCI Europe, Australasia, Far East (EAFE) Index, a proxy for equity performance
in 21 developed nations, returned 1.8% in dollars for the six months, but its
return in local currencies was -4.6%.
================================================================================
MARKET BAROMETER TOTAL RETURNS
PERIODS ENDED APRIL 30, 2003
- --------------------------------------------------------------------------------
SIX ONE FIVE
MONTHS YEAR YEARS*
- --------------------------------------------------------------------------------
STOCKS
MSCI All Country World Index Free
ex USA (International) 3.1% -15.2% -4.9%
Russell 1000 Index (Large-caps) 4.8 -13.5 -2.3
Russell 2000 Index (Small-caps) 7.6 -20.8 -2.5
Wilshire 5000 Index (Entire market) 5.0 -13.6 -2.6
- --------------------------------------------------------------------------------
BONDS
Lehman Aggregate Bond Index 4.3% 10.5% 7.6%
(Broad taxable market)
Lehman Municipal Bond Index 3.6 8.5 6.3
Citigroup 3-Month Treasury Bill Index 0.6 1.5 4.0
- --------------------------------------------------------------------------------
CPI
Consumer Price Index 1.4% 2.2% 2.5%
================================================================================
*Annualized.
Emerging markets were the true stars of the period, posting the highest
returns in dollars. Israel, the Czech Republic, and Brazil all saw strong gains.
However, a number of politically troubled Latin American nations continued to
suffer, as general labor strikes disrupted manufacturing activity.
OVERSEAS ECONOMIC REPORTS HAD FAR-REACHING IMPLICATIONS
Economic reports from overseas were generally poor. In the Eurozone, which
comprises the 12 countries that use the euro as a common currency, unemployment
figures for March 2003 exceeded those of March 2002 by a substantial margin in
11 of the 12 nations. Accounting scandals that buffeted numerous companies in
Europe, most notably Ahold in the Netherlands, only added to investors' worries.
The Japanese economy continued to show signs of weakness as key economic
indicators--including the unemployment rate,
2
manufacturing activity, and consumer prices--worsened, and Tokyo's Nikkei
average fell to near-20-year lows. Elsewhere in the Pacific region, the onset of
SARS (Severe Acute Respiratory Syndrome) disrupted business, as local residents
grew fearful and companies in the United States and Europe restricted travel to
affected areas.
OUR FUNDS PERFORMED WELL IN TRYING TIMES
Although the performance of international markets generally paled in comparison
with U.S. stocks, our funds did a solid job of tracking the performances of
their respective benchmarks and surpassing those of their average peers.
The total return for the EUROPEAN STOCK INDEX FUND'S Investor Shares was
4.1% for the period, somewhat better than its average peer group's return of
3.2% and just a notch below the MSCI Europe Index's return. Some markets,
notably Ireland, rose substantially in their local currencies, while others
(such as the Netherlands) fell sharply. However, the overall result across the
continent was a negative return. The weak U.S. dollar turned these losses in
local currency into a positive return for U.S.-based investors.
The PACIFIC STOCK INDEX FUND posted the worst return (-4.0%) of the six
international stock index funds, primarily because of the ongoing weakness in
Japanese markets, which have been in and out of recession numerous times over
the past ten-plus years. However, the fund bested its average peer's return of
- -7.0% by a comfortable margin, and was directly in line with the -4.0% return of
the MSCI Pacific Index.
The EMERGING MARKETS STOCK INDEX FUND posted the highest return (6.3%) of
the six funds and performed slightly better than the average emerging markets
fund (6.1%). Several emerging markets whose local currencies had been losing
ground against the rising dollar over the past several years benefited from the
dollar's weakness. (A note about this fund: In anticipation of changes to the
fund's benchmark that took effect May 1, we added holdings in three
countries--Chile, India, and Peru--before the end of this reporting period. We
are in the process of eliminating its 5% cash component.)
The DEVELOPED MARKETS INDEX FUND and sister fund Institutional Developed
Markets Index Fund, "funds of funds" that held a 73%/27% mix of the European and
Pacific Funds as of April 30, provided returns of 1.9% for the six months,
besting the 0.9% return of their average peer. Poor performance by the stocks in
the Pacific segment was to blame for the mediocre results.
The TOTAL INTERNATIONAL STOCK INDEX FUND, a "fund of funds" that held
shares of our European, Pacific, and Emerging Markets Funds in approximately a
65%/25%/10% mix as of April 30, returned 2.2% for the period, which handily
outpaced the 0.9% return for the average international fund. The fund's
outperformance was due in part to its emerging markets exposure.
3
THE OPPORTUNITIES IN--AND CHALLENGES OF--INTERNATIONAL INVESTING
Although international stocks didn't prove to be much of a refuge from the
troubles faced by U.S. stock markets over the past three years, we still believe
that there is a place for international stocks in most investors' portfolios.
Investors who do not have any exposure to international securities miss out on
the potential growth opportunities of almost half the world's stock market
capitalization.
That said, there are indeed additional risks associated with investments in
international stocks. Investors should carefully consider their tolerance for
the uncertainties of currency fluctuation, economic volatility, and political
instability in a particular country or region. These risks could lead to
prolonged downturns that would try the patience of the most seasoned investor.
However, if you are investing for the long term, a reasonable
commitment--consistent with your risk tolerance, objectives, and time frame--to
international stocks can help diversify your portfolio. Our international stock
index funds offer you a very low-cost and tax-efficient way to add that
international flavor to your stock holdings.
We thank you for your continued confidence in Vanguard.
Sincerely,
JOHN J. BRENNAN
CHAIRMAN AND CHIEF EXECUTIVE OFFICER
MAY 13, 2003
4
================================================================================
YOUR FUND'S PERFORMANCE AT A GLANCE OCTOBER 31, 2002-APRIL 30, 2003
DISTRIBUTIONS PER SHARE
- --------------------------------------------------------------------------------
STARTING ENDING INCOME CAPITAL
VANGUARD INDEX FUND SHARE PRICE SHARE PRICE DIVIDENDS GAINS
- --------------------------------------------------------------------------------
EUROPEAN STOCK
Investor Shares $16.44 $16.70 $0.400 $0.000
Admiral Shares 38.61 39.21 0.975 0.000
Institutional Shares 16.46 16.71 0.425 0.000
- --------------------------------------------------------------------------------
PACIFIC STOCK
Investor Shares $ 5.90 $ 5.60 $0.067 $0.000
Admiral Shares 38.63 36.62 0.473 0.000
Institutional Shares 5.91 5.60 0.075 0.000
- --------------------------------------------------------------------------------
EMERGING MARKETS STOCK
Investor Shares $7.48 $7.83 $0.122 $0.000
Institutional Shares 7.49 7.83 0.135 0.000
- --------------------------------------------------------------------------------
TOTAL INTERNATIONAL STOCK $7.79 $7.80 $0.157 0.000
- --------------------------------------------------------------------------------
DEVELOPED MARKETS $5.80 $5.79 $0.116 $0.000
- --------------------------------------------------------------------------------
INSTITUTIONAL DEVELOPED MARKETS $5.76 $5.74 $0.12 $0.000
================================================================================
5
FUND PROFILES AS OF APRIL 30, 2003
These Profiles provide snapshots of each fund's characteristics, compared where
indicated with both an appropriate market index and a broad market index. Key
terms are defined on page 14.
EUROPEAN STOCK INDEX FUND
================================================================================
PORTFOLIO CHARACTERISTICS
- --------------------------------------------------------------------------------
COMPARATIVE BROAD
FUND INDEX* INDEX**
- --------------------------------------------------------------------------------
Number of Stocks 545 530 1,747
Turnover Rate 4%Y -- --
Expense Ratio -- --
Investor Shares 0.34%Y
Admiral Shares 0.23%Y
Institutional Shares 0.18%Y
Cash Investments 0.0% -- --
================================================================================
================================================================================
TEN LARGEST HOLDINGS (% OF TOTAL NET ASSETS)
BP PLC 3.7%
(oil)
Vodafone Group PLC 3.5
(cellular telecommunications)
GlaxoSmithKline PLC 3.1
(pharmaceuticals)
HSBC Holdings PLC 3.0
(banking)
Novartis AG (Registered) 2.8
(pharmaceuticals)
Royal Dutch Petroleum Co. 2.2
(energy)
TotalFinaElf SA 2.2
(integrated oil)
Nokia Oyj 2.1
(telecommunications)
Nestle SA (Registered) 2.1
(food, beverage, and tobacco)
Royal Bank of Scotland Group PLC 1.9
(banking)
- --------------------------------------------------------------------------------
Top Ten 26.6%
================================================================================
The "Ten Largest Holdings" excludes any temporary cash investments and equity
index products.
================================================================================
VOLATILITY MEASURES
- --------------------------------------------------------------------------------
COMPARATIVE BROAD
FUND INDEX* FUND INDEX**
- --------------------------------------------------------------------------------
R-Squared 1.00 1.00 0.92 1.00
Beta 1.00 1.00 1.10 1.00
- --------------------------------------------------------------------------------
================================================================================
COUNTRY DIVERSIFICATION (% OF PORTFOLIO)
COMPARATIVE
FUND INDEX*
- --------------------------------------------------------------------------------
United Kingdom 37.9% 37.9%
France 13.3 13.3
Switzerland 11.1 11.1
Germany 8.7 8.7
Netherlands 7.1 7.1
Italy 5.4 5.4
Spain 5.1 5.1
Sweden 3.0 3.0
Finland 2.9 2.9
Belgium 1.4 1.4
Ireland 1.2 1.2
Denmark 1.1 1.1
Norway 0.6 0.6
Greece 0.5 0.5
Portugal 0.5 0.5
Austria 0.2 0.2
- --------------------------------------------------------------------------------
Total 100.0% 100.0%
- --------------------------------------------------------------------------------
*MSCI Europe Index.
**MSCI All Country World Index Free ex USA.
+Annualized.
6
================================================================================
SECTOR DIVERSIFICATION (% OF PORTFOLIO)
- --------------------------------------------------------------------------------
COMPARATIVE BROAD
FUND INDEX* INDEX**
- --------------------------------------------------------------------------------
Consumer Discretionary 9.4% 9.4% 11.1%
Consumer Staples 10.6 10.6 9.1
Energy 11.9 11.8 9.6
Financials 25.9 25.9 24.8
Health Care 12.3 12.2 9.3
Industrials 6.1 6.1 7.9
Information Technology 4.6 4.6 7.2
Materials 5.3 5.3 7.5
Telecommunication Services 9.4 9.4 8.4
Utilities 4.5 4.7 5.1
================================================================================
VISIT OUR WEBSITE AT
WWW.VANGUARD.COM
FOR REGULARLY UPDATED FUND INFORMATION.
*MSCI Europe Index.
**MSCI All Country World Index Free ex USA.
7
FUND PROFILES (CONTINUED)
PACIFIC STOCK INDEX FUND
================================================================================
PORTFOLIO CHARACTERISTICS
- --------------------------------------------------------------------------------
COMPARATIVE BROAD
FUND INDEX* INDEX**
- --------------------------------------------------------------------------------
Number of Stocks 465 465 1,747
Turnover Rate 1%Y -- --
Expense Ratio
Investor Shares 0.41%Y
Admiral Shares 0.30%Y
Institutional Shares 0.25%Y
Cash Investments 0.0% -- --
================================================================================
================================================================================
TEN LARGEST HOLDINGS (% OF TOTAL NET ASSETS)
Toyota Motor Corp. 3.7%
(automotive and transport equipment)
NTT DoCoMo, Inc. 2.5
(telecommunications)
Canon, Inc. 2.3
(computer hardware)
National Australia Bank Ltd. 2.2
(banking)
Takeda Chemical Industries Ltd. 2.0
(pharmaceuticals)
Tokyo Electric Power Co. 1.6
(utilities)
News Corp Ltd. 1.5
(media)
Commonwealth Bank of Australia 1.5
(banking)
Sony Corp. 1.5
(consumer electronics)
BHP Billiton Ltd. 1.5
(metals and mining)
- --------------------------------------------------------------------------------
Top Ten 20.3%
================================================================================
The "Ten Largest Holdings" excludes any temporary cash investments and equity
index products.
================================================================================
VOLATILITY MEASURES
- --------------------------------------------------------------------------------
COMPARATIVE BROAD
FUND INDEX* FUND INDEX**
- --------------------------------------------------------------------------------
R-Squared 0.98 1.00 0.54 1.00
Beta 1.02 1.00 0.72 1.00
- --------------------------------------------------------------------------------
================================================================================
COUNTRY DIVERSIFICATION (% OF PORTFOLIO)
COMPARATIVE
FUND INDEX*
- --------------------------------------------------------------------------------
Japan 71.2% 71.5%
Australia 19.5 19.3
Hong Kong 5.6 5.5
Singapore 2.9 2.9
New Zealand 0.8 0.8
- --------------------------------------------------------------------------------
Total 100.0% 100.0%
================================================================================
================================================================================
SECTOR DIVERSIFICATION (% OF PORTFOLIO)
COMPARATIVE BROAD
FUND INDEX* INDEX**
- --------------------------------------------------------------------------------
Consumer Discretionary 18.3% 18.3% 11.1%
Consumer Staples 7.0 7.0 9.1
Energy 1.2 1.2 9.6
Financials 21.7 21.7 24.8
Health Care 5.5 5.5 9.3
Industrials 14.0 14.0 7.9
Information Technology 11.5 11.5 7.2
Materials 9.1 9.0 7.5
Telecommunication Services 5.0 5.1 8.4
Utilities 6.7 6.7 5.1
================================================================================
*MSCI Pacific Index.
**MSCI All Country World Index Free ex USA.
+Annualized.
8
EMERGING MARKETS STOCK INDEX FUND
================================================================================
PORTFOLIO CHARACTERISTICS
COMPARATIVE BROAD
FUND INDEX* INDEX**
- --------------------------------------------------------------------------------
Number of Stocks 551 550 1,747
Turnover Rate 19%Y -- --
Expense Ratio -- --
Investor Shares 0.55%Y
Institutional Shares 0.39%Y
Cash Investments 3.3% -- --
================================================================================
================================================================================
TEN LARGEST HOLDINGS (% OF TOTAL NET ASSETS)
Samsung Electronics Co., Ltd. 5.2%
(electronics)
Anglo American PLC 4.4
(metals and mining)
Telefonos de Mexico SA 2.5
(telecommunications)
Teva Pharmaceutical Industries Ltd. 2.5
(pharmaceuticals)
Petroleo Brasileiro SA 2.3
(energy)
Taiwan Semiconductor Manufacturing Co., Ltd. 2.2
(electronics)
China Mobile (Hong Kong) Ltd. 2.2
(telecommunications)
Kookmin Bank 1.5
(banking)
Sasol Ltd. 1.3
(chemicals)
Old Mutual PLC 1.2
(insurance)
- --------------------------------------------------------------------------------
Top Ten 25.3%
================================================================================
The "Ten Largest Holdings" excludes any temporary cash investments and equity
index products.
- --------------------------------------------------------------------------------
VOLATILITY MEASURES
COMPARATIVE BROAD
FUND INDEX* FUND INDEX**
- --------------------------------------------------------------------------------
R-Squared 1.00 1.00 0.78 1.00
Beta 0.99 1.00 1.25 1.00
- --------------------------------------------------------------------------------
================================================================================
COUNTRY DIVERSIFICATION (% OF PORTFOLIO)
COMPARATIVE
FUND INDEX*
- --------------------------------------------------------------------------------
South Korea 21.4% 20.8%
South Africa 15.9 17.3
Taiwan 14.6 15.6
Brazil 10.3 10.6
Mexico 10.2 10.7
China 7.7 8.1
Israel 5.1 5.6
India 3.5 0.0
Thailand 2.3 2.4
Hungary 1.7 1.7
Turkey 1.6 1.8
Poland 1.5 1.6
Indonesia 1.5 1.6
Czech Republic 0.7 0.7
Argentina 0.7 0.8
Philippines 0.6 0.7
Chile 0.6 0.0
Peru 0.1 0.0
- --------------------------------------------------------------------------------
Total 100.0% 100.0%
================================================================================
*Select Emerging Markets Free Index.
**MSCI All Country World Index Free ex USA.
+Annualized.
VISIT OUR WEBSITE AT
WWW.VANGUARD.COM
FOR REGULARLY UPDATED FUND INFORMATION.
9
FUND PROFILES (CONTINUED)
EMERGING MARKETS STOCK INDEX FUND
================================================================================
SECTOR DIVERSIFICATION (% OF PORTFOLIO)
COMPARATIVE BROAD
FUND INDEX* INDEX**
- --------------------------------------------------------------------------------
Consumer Discretionary 6.7% 6.7% 11.1%
Consumer Staples 7.6 6.6 9.1
Energy 8.4 7.5 9.6
Financials 18.4 18.1 24.8
Health Care 3.6 3.0 9.3
Industrials 5.4 5.3 7.9
Information Technology 15.5 18.7 7.2
Materials 17.9 17.3 7.5
Telecommunication Services 13.6 14.0 8.4
Utilities 2.9 2.8 5.1
- --------------------------------------------------------------------------------
*Select Emerging Markets Free Index.
**MSCI All Country World Index Free ex USA.
10
TOTAL INTERNATIONAL STOCK INDEX FUND
================================================================================
PORTFOLIO CHARACTERISTICS
FUND
- --------------------------------------------------------------------------------
Expense Ratio 0%
Average Weighted Expense Ratio* 0.38%
- --------------------------------------------------------------------------------
================================================================================
TEN LARGEST HOLDINGS++ (% OF TOTAL NET ASSETS)
BP PLC 2.4%
(oil)
Vodafone Group PLC 2.3
(cellular telecommunications)
GlaxoSmithKline PLC 2.1
(pharmaceuticals)
HSBC Holdings PLC 2.0
(banking)
Novartis AG (Registered) 1.9
(pharmaceuticals)
Toyota Motor Corp. 0.9
(automotive and transport equipment)
NTT DoCoMo Inc. 0.6
(telecommunications)
Samsung Electronics Co. Ltd. 0.5
(electronics)
Anglo American PLC 0.4
(metals and mining)
Teva Pharmaceutical Industries Ltd. 0.2
(pharmaceuticals)
- --------------------------------------------------------------------------------
Top Ten 13.3%
================================================================================
The "Ten Largest Holdings" excludes any temporary cash investments and equity
index products.
- --------------------------------------------------------------------------------
VOLATILITY MEASURES
COMPARATIVE BROAD
FUND INDEX** FUND INDEX+
- --------------------------------------------------------------------------------
R-Squared 1.00 1.00 1.00 1.00
Beta 1.01 1.00 1.02 1.00
- --------------------------------------------------------------------------------
================================================================================
ALLOCATION TO UNDERLYING VANGUARD FUNDS
European Stock Index Fund Investor Shares 66.4%
Pacific Stock Index Fund Investor Shares 24.4
Emerging Markets Stock Index Fund Investor Shares 9.2
- --------------------------------------------------------------------------------
Total 100.0%
================================================================================
================================================================================
SECTOR DIVERSIFICATION (% OF PORTFOLIO)
COMPARATIVE BROAD
FUND++ INDEX** INDEX+
- --------------------------------------------------------------------------------
Consumer Discretionary 11.3% 11.3% 11.1%
Consumer Staples 9.4 9.3 9.1
Energy 9.0 8.9 9.6
Financials 24.2 24.4 24.8
Health Care 9.8 9.7 9.3
Industrials 8.0 7.9 7.9
Information Technology 7.3 7.5 7.2
Materials 7.4 7.3 7.5
Telecommunication Services 8.7 8.7 8.4
Utilities 4.9 5.0 5.1
================================================================================
*For underlying funds; annualized.
**Total International Composite Index.
+MSCI All Country World Index Free ex USA.
++Reflects holdings of underlying funds.
VISIT OUR WEBSITE AT
WWW.VANGUARD.COM
FOR REGULARLY UPDATED FUND INFORMATION.
11
FUND PROFILES (CONTINUED)
DEVELOPED MARKETS INDEX FUND
================================================================================
PORTFOLIO CHARACTERISTICS
FUND
- --------------------------------------------------------------------------------
Expense Ratio 0%
Average Weighted Expense Ratio* 0.36%
- --------------------------------------------------------------------------------
================================================================================
TEN LARGEST HOLDINGS** (% OF TOTAL NET ASSETS)
BP PLC 2.7%
(oil)
Vodafone Group PLC 2.5
(cellular telecommunications)
GlaxoSmithKline PLC 2.3
(pharmaceuticals)
HSBC Holdings PLC 2.2
(banking)
Novartis AG (Registered) 2.1
(pharmaceuticals)
Royal Dutch Petroleum Co. 1.6
(energy)
TotalFinaElf SA 1.6
(integrated oil)
Toyota Motor Corp. 1.0
(automotive and transport equipment)
NTT DoCoMo Inc. 0.7
(telecommunications)
Canon Inc. 0.6
(computer hardware)
- --------------------------------------------------------------------------------
Top Ten 17.3%
================================================================================
The "Ten Largest Holdings" excludes any temporary cash investments and equity
index products.
================================================================================
ALLOCATION TO UNDERLYING VANGUARD FUNDS
European Stock Index Fund Investor Shares 73.1%
Pacific Stock Index Fund Investor Shares 26.9
- --------------------------------------------------------------------------------
Total 100.0%
================================================================================
================================================================================
SECTOR DIVERSIFICATION (% OF PORTFOLIO)
COMPARATIVE BROAD
FUND** INDEX+ INDEX++
- --------------------------------------------------------------------------------
Consumer Discretionary 11.8% 11.8% 11.1%
Consumer Staples 9.6 9.6 9.1
Energy 9.0 9.0 9.6
Financials 24.8 24.9 24.8
Health Care 10.5 10.4 9.3
Industrials 8.2 8.2 7.9
Information Technology 6.5 6.4 7.2
Materials 6.3 6.3 7.5
Telecommunication Services 8.2 8.2 8.4
Utilities 5.1 5.2 5.1
================================================================================
*For underlying funds; annualized.
**Reflects holdings of underlying funds.
+MSCI EAFE Index.
++MSCI All Country World Index Free ex USA.
12
INSTITUTIONAL DEVELOPED MARKETS INDEX FUND
================================================================================
PORTFOLIO CHARACTERISTICS
FUND
- --------------------------------------------------------------------------------
Expense Ratio 0%
Average Weighted Expense Ratio* 0.20%
- --------------------------------------------------------------------------------
================================================================================
TEN LARGEST HOLDINGS** (% OF TOTAL NET ASSETS)
BP PLC 2.7%
(oil)
Vodafone Group PLC 2.5
(cellular telecommunications)
GlaxoSmithKline PLC 2.3
(pharmaceuticals)
HSBC Holdings PLC 2.2
(banking)
Novartis AG (Registered) 2.1
(pharmaceuticals)
Royal Dutch Petroleum Co. 1.6
(energy)
TotalFinaElf SA 1.6
(integrated oil)
Toyota Motor Corp. 1.0
(automotive and transport equipment)
NTT DoCoMo Inc. 0.7
(telecommunications)
Canon Inc. 0.6
(computer hardware)
- --------------------------------------------------------------------------------
Top Ten 17.3%
================================================================================
The "Ten Largest Holdings" excludes any temporary cash investments and equity
index products.
================================================================================
ALLOCATION TO UNDERLYING VANGUARD FUNDS
European Stock Index Fund Institutional Shares 73.1%
Pacific Stock Index Fund Institutional Shares 26.9
- --------------------------------------------------------------------------------
Total 100.0%
================================================================================
================================================================================
SECTOR DIVERSIFICATION (% OF PORTFOLIO)
COMPARATIVE BROAD
FUND** INDEX+ INDEX++
- --------------------------------------------------------------------------------
Consumer Discretionary 11.8% 11.8% 11.1%
Consumer Staples 9.6 9.6 9.1
Energy 9.0 9.0 9.6
Financials 24.8 24.9 24.8
Health Care 10.5 10.4 9.3
Industrials 8.2 8.2 7.9
Information Technology 6.5 6.4 7.2
Materials 6.3 6.3 7.5
Telecommunication Services 8.2 8.2 8.4
Utilities 5.1 5.2 5.1
- --------------------------------------------------------------------------------
*For underlying funds; annualized.
**Reflects holdings of underlying funds.
+MSCI EAFE Index.
++MSCI All Country World Index Free ex USA.
VISIT OUR WEBSITE AT
WWW.VANGUARD.COM
FOR REGULARLY UPDATED FUND INFORMATION.
13
GLOSSARY OF INVESTMENT TERMS
AVERAGE WEIGHTED EXPENSE RATIO. Funds that invest in other Vanguard funds incur
no direct expenses, but do bear proportionate shares of the operating,
administrative, and advisory expenses of the underlying funds. The average
weighted expense ratio is the average of these expense ratios, weighted in
proportion to the amount of the fund invested in each underlying fund.
- --------------------------------------------------------------------------------
BETA. A measure of the magnitude of a fund's past share-price fluctuations in
relation to the ups and downs of a comparative index and an overall market
index. Each index is assigned a beta of 1.00. Compared with a given index, a
fund with a beta of 1.20 typically would have seen its share price rise or fall
by 12% when the index rose or fell by 10%. However, a fund's beta should be
reviewed in conjunction with its R-squared (see definition below). The lower the
R-squared, the less correlation there is between the fund and the benchmark, and
the less reliable beta is as an indicator of volatility.
- --------------------------------------------------------------------------------
CASH INVESTMENTS. The percentage of a fund's net assets invested in "cash
equivalents"--highly liquid, short-term, interest-bearing securities. This
figure does not include cash invested in futures contracts or swap agreements.
- --------------------------------------------------------------------------------
EXPENSE RATIO. The percentage of a fund's average net assets used to pay its
annual administrative and advisory expenses. These expenses directly reduce
returns to investors.
- --------------------------------------------------------------------------------
R-SQUARED. A measure of how much of a fund's past returns can be explained by
the returns from the market in general, as measured by a comparative index or an
overall market index. If a fund's total returns were precisely synchronized with
an index's returns, its R-squared would be 1.00. If the fund's returns bore no
relationship to the index's returns, its R-squared would be 0.
- --------------------------------------------------------------------------------
TURNOVER RATE. An indication of the fund's trading activity. Funds with high
turnover rates incur higher transaction costs and may be more likely to
distribute capital gains (which are taxable to investors).
================================================================================
14
PERFORMANCE SUMMARIES AS OF APRIL 30, 2003
All of the returns in this report represent past performance, which cannot be
used to predict future returns that may be achieved by the funds. Note, too,
that both share price and return can fluctuate widely. An investor's shares,
when redeemed, could be worth more or less than their original cost. The returns
shown do not reflect taxes that a shareholder would pay on fund distributions or
on the redemption of fund shares.
EUROPEAN STOCK INDEX FUND
================================================================================
FISCAL-YEAR TOTAL RETURNS (%) OCTOBER 31, 1992--APRIL 30, 2003
- --------------------------------------------------------------------------------
EUROPEAN STOCK FUND
YEAR INVESTOR SHARES MSCI EUROPE INDEX
- --------------------------------------------------------------------------------
1993 25.1 26.3
1994 11.0 11.7
1995 14.0 13.6
1996 17.6 17.5
1997 26.5 26.0
1998 23.2 23.1
1999 12.9 12.5
2000 1.5 0.9
2001 -23.0 -22.8
2002 -13.8 -13.9
2003* 4.1 4.2
================================================================================
*Six months ended April 30, 2003.
Note: See Financial Highlights tables on pages 54 and 55 for dividend and
capital gains information.
================================================================================
AVERAGE ANNUAL TOTAL RETURNS FOR PERIODS ENDED MARCH 31, 2003
This table presents average annual total returns through the latest calendar
quarter--rather than through the end of the fiscal period. Securities and
Exchange Commission rules require that we provide this information.
================================================================================
ONE FIVE TEN YEARS
INCEPTION DATE YEAR YEARS CAPITAL INCOME TOTAL
- --------------------------------------------------------------------------------
EUROPEAN STOCK INDEX FUND
Investor Shares* 6/18/1990 -25.58% -7.42% 4.35% 2.12% 6.47%
Admiral Shares 8/13/2001 -25.49 -17.92** - - -
Institutional Shares 5/15/2000 -25.45 -17.35** - - -
- --------------------------------------------------------------------------------
*Total return figures do not reflect the $10 annual account maintenance fee
applied on balances under $10,000.
**Returns are since inception.
15
PERFORMANCE SUMMARIES (CONTINUED)
PACIFIC STOCK INDEX FUND
================================================================================
FISCAL-YEAR TOTAL RETURNS (%) OCTOBER 31, 1992-APRIL 30, 2003
- --------------------------------------------------------------------------------
PACIFIC STOCK FUND
YEAR INVESTOR SHARES MSCI PACIFIC INDEX
- --------------------------------------------------------------------------------
1993 49.0 49.6
1994 8.7 9.0
1995 -11.0 -11.0
1996 4.0 3.4
1997 -19.7 -19.8
1998 -14.0 -13.9
1999 51.3 50.8
2000 -10.5 -10.5
2001 -29.7 -29.7
2002 -12.7 -11.5
2003** -4.0 -4.0
- --------------------------------------------------------------------------------
*Six months ended April 30, 2003.
Note: See Financial Highlights tables on pages 56 and 57 for dividend
information.
EMERGING MARKETS STOCK INDEX FUND
================================================================================
FISCAL-YEAR TOTAL RETURNS (%) MAY 4, 1994-APRIL 30, 2003
- --------------------------------------------------------------------------------
EMERGING MARKETS STOCK INDEX FUND SELECT EMERGING MARKETS
YEAR INVESTOR SHARES FREE INDEX*
- --------------------------------------------------------------------------------
1994 26.7 20.3
1995 -16.6 -17.1
1996 16.3 14.9
1997 -13.4 -13.0
1998 -20.6 -20.9
1999 34.7 33.9
2000 -6.3 -6.4
2001 -21.2 -21.0
2002 5.3 5.8
2003** 6.3 6.5
================================================================================
*Consists of stocks that can be bought free of restrictions in 15 emerging
markets of Europe, Asia, Africa, and Latin America (95%) and a cash component
(5%) based on the Lipper Money Market average. The stock component of the index
is administered exclusively for Vanguard by MSCI.
**Six months ended April 30, 2003.
Note: See Financial Highlights tables on pages 58 and 59 for dividend
information.
================================================================================
AVERAGE ANNUAL TOTAL RETURNS FOR PERIODS ENDED MARCH 31, 2003
This table presents average annual total returns through the latest calendar
quarter--rather than through the end of the fiscal period. Securities and
Exchange Commission rules require that we provide this information.
================================================================================
ONE FIVE TEN YEARS
INCEPTION DATE YEAR YEAR CAPITAL INCOME TOTAL
- --------------------------------------------------------------------------------
PACIFIC STOCK INDEX FUND
Investor Shares* 6/18/1990 -17.30% -6.07% -4.46% 0.87% -3.59%
Admiral Shares 8/13/2001 -17.27 -16.96** - - -
Institutional Shares 5/15/2000 -17.19 -20.50** - - -
- --------------------------------------------------------------------------------
EMERGING MARKETS STOCK INDEX FUND
Investor Shares* 5/14/1994 -20.87% -5.28% -3.58% 1.96% -1.62%
Fee-Adjusted Returns+ -21.65 -5.45 -3.58 1.86 -1.72
Institutional Shares 6/22/2000 -20.72 -12.47** - - -
Fee-Adjusted Returns+ -21.50 -12.77** - - -
================================================================================
*Total return figures do not reflect the $10 annual account maintenance fee
applied on balances under $10,000.
**Returns are since inception.
+Performance figures are adjusted for the 0.5% transaction fee on purchases and
redemptions.
16
TOTAL INTERNATIONAL STOCK INDEX FUND
================================================================================
FISCAL-YEAR TOTAL RETURNS (%) APRIL 29, 1996-APRIL 30, 2003
- --------------------------------------------------------------------------------
TOTAL INTERNATIONAL STOCK TOTAL INTERNATIONAL
YEAR INDEX FUND COMPOSITE INDEX*
- --------------------------------------------------------------------------------
1996 -2.0 -2.25
1997 2.1 2.0
1998 6.0 5.9
1999 24.1 23.6
2000 -3.1 -3.4
2001 -24.7 -24.5
2002 -11.8 -11.7
2003* 2.2 2.2
- --------------------------------------------------------------------------------
*Consists of the MSCI Europe Index (65%), the MSCI Pacific Index (26%), and the
Select Emerging Markets Free Index (9%).
**Six months ended April 30, 2003.
Note: See Financial Highlights table on page 60 for dividend and capital gains
information.
DEVELOPED MARKETS INDEX FUND
================================================================================
FISCAL-YEAR TOTAL RETURNS (%) MAY 8, 2000-APRIL 30, 2003
- --------------------------------------------------------------------------------
DEVELOPED MARKETS
YEAR INVESTOR SHARES MSCI EAFE INDEX
- --------------------------------------------------------------------------------
2000 -7.3 -7.9
2001 -25.1 -24.9
2002 -13.6 -13.2
2003* 1.9 1.8
================================================================================
*Six months ended April 30, 2003.
Note: See Financial Highlights table on page 61 for dividend information.
================================================================================
AVERAGE ANNUAL TOTAL RETURNS FOR PERIODS ENDED MARCH 31, 2003
This table presents average annual total returns through the latest calendar
quarter--rather than through the end of the fiscal period. Securities and
Exchange Commission rules require that we provide this information.
================================================================================
ONE FIVE TEN YEARS
INCEPTION DATE YEAR YEAR CAPITAL INCOME TOTAL
- --------------------------------------------------------------------------------
Total International Stock
Index Fund* 4/29/1996 -23.12% -6.99% -5.04% 1.68% -3.36%
- --------------------------------------------------------------------------------
Developed Markets Index Fund* 5/8/2000 -23.38% -- 19.85% 1.51% 18.34%
================================================================================
*Total return figures do not reflect the $10 annual account maintenance fee
applied on balances under $10,000.
17
PERFORMANCE SUMMARIES (CONTINUED)
INSTITUTIONAL DEVELOPED MARKETS INDEX FUND
================================================================================
FISCAL-YEAR TOTAL RETURNS (%) JUNE 1, 2000-APRIL 30, 2003
- --------------------------------------------------------------------------------
INSTITUTIONAL DEVELOPED MARKETS
YEAR INDEX FUND MSCI EAFE INDEX
- --------------------------------------------------------------------------------
2000 -8.0 -7.9
2001 -25.1 -24.9
2002 -13.4 -13.2
2003* 1.9 1.8
================================================================================
*Six months ended April 30, 2003.
Note: See Financial Highlights table on page 62 for dividend information.
================================================================================
AVERAGE ANNUAL TOTAL RETURNS FOR PERIODS ENDED MARCH 31, 2003
This table presents average annual total returns through the latest calendar
quarter--rather than through the end of the fiscal period. Securities and
Exchange Commission rules require that we provide this information.
================================================================================
ONE TEN YEARS
INCEPTION DATE YEAR CAPITAL INCOME TOTAL
- --------------------------------------------------------------------------------
Institutional Developed
Markets Index Fund 6/1/2000 -23.30% -20.53% 1.65% -18.88%
- --------------------------------------------------------------------------------
18
NOTICE TO SHAREHOLDERS
At a special meeting of shareholders on December 3, 2002, fund shareholders
approved the following proposals:
o Elect trustees for each fund.* The individuals listed in the tables below
were elected as trustees for each fund. All trustees served as trustees to
the funds prior to the shareholder meeting.
EUROPEAN STOCK INDEX FUND, PACIFIC STOCK INDEX FUND, EMERGING MARKETS STOCK
INDEX FUND
================================================================================
TRUSTEE FOR WITHHELD PERCENTAGE FOR
- --------------------------------------------------------------------------------
John J. Brennan 5,281,736,317 113,840,134 97.9%
Charles D. Ellis 5,291,490,574 104,085,876 98.1
Rajiv L. Gupta 5,282,636,844 112,939,606 97.9
JoAnn Heffernan Heisen 5,290,908,540 104,667,911 98.1
Burton G. Malkiel 5,283,768,860 111,807,590 97.9
Alfred M. Rankin, Jr. 5,291,340,761 104,235,689 98.1
J. Lawrence Wilson 5,277,749,566 117,826,885 97.8
================================================================================
*Results are for all funds within the same trust.
TOTAL INTERNATIONAL STOCK INDEX FUND, DEVELOPED MARKETS INDEX FUND,
INSTITUTIONAL DEVELOPED MARKETS INDEX FUND
================================================================================
TRUSTEE FOR WITHHELD PERCENTAGE FOR
- --------------------------------------------------------------------------------
John J. Brennan 14,890,605,500 210,628,324 98.6%
Charles D. Ellis 14,884,597,360 216,636,465 98.6
Rajiv L. Gupta 14,860,083,637 241,150,188 98.4
JoAnn Heffernan Heisen 14,880,145,951 221,087,874 98.5
Burton G. Malkiel 14,854,652,159 246,581,665 98.4
Alfred M. Rankin, Jr. 14,888,363,273 212,870,551 98.6
J. Lawrence Wilson 14,863,134,431 238,099,393 98.4
================================================================================
*Results are for all funds within the same trust.
o Change the following funds' policy on investing in other mutual funds. This
change enables each fund to invest its cash reserves in specially created
money market and short-term bond funds. This new cash management program,
which is similar to those of other large mutual fund complexes, should help
the funds to achieve greater diversification and to earn modestly higher
returns on their cash reserves. The funds will need Securities and Exchange
Commission approval before implementing this new cash management program.
==================================================================================================================
BROKER PERCENTAGE
VANGUARD FUND FOR AGAINST ABSTAIN NON-VOTES FOR
- ------------------------------------------------------------------------------------------------------------------
European Stock Index 3,076,621,598 183,922,847 88,905,016 130,119,646 88.4%
Pacific Stock Index 1,188,453,873 64,727,924 28,494,499 31,255,344 90.5
Emerging Markets Stock Index 557,383,623 19,753,479 11,917,016 14,021,584 92.4
==================================================================================================================
Note: Vote tabulations are rounded to the nearest whole number.
19
NOTICE TO SHAREHOLDERS (CONTINUED)
o Reclassify the following funds as nondiversified. This change to
"nondiversified" status enables each fund to continue tracking its target
index in the event that the index becomes dominated by a small number of
stocks.
==================================================================================================================
BROKER PERCENTAGE
VANGUARD FUND FOR AGAINST ABSTAIN NON-VOTES FOR
- ------------------------------------------------------------------------------------------------------------------
European Stock Index 3,106,340,457 146,943,516 96,165,489 130,119,646 89.3%
Pacific Stock Index 1,199,299,158 52,485,281 29,891,857 31,255,344 91.3
Emerging Markets Stock Index 562,231,923 15,670,955 11,151,240 14,021,584 93.2
==================================================================================================================
Note: Vote tabulations are rounded to the nearest whole number.
20
FINANCIAL STATEMENTS APRIL 30, 2003 (UNAUDITED)
STATEMENT OF NET ASSETS
This Statement provides a detailed list of each fund's holdings, including each
security's market value on the last day of the reporting period. European,
Pacific, and Emerging Markets Stock Index Fund securities are grouped and
subtotaled by asset type (common stocks, bonds, etc.) and by country; the Total
International Stock, Developed Markets, and Institutional Developed Markets
Index Funds list investments in shares of each Vanguard International Stock
Index fund. Other assets are added to, and liabilities are subtracted from, the
value of Total Investments to calculate the fund's Net Assets. Finally, Net
Assets are divided by the outstanding shares of the fund to arrive at its share
price, or Net Asset Value (NAV) Per Share.
At the end of the Statement of Net Assets of each fund, you will find a
table displaying the composition of the fund's net assets. Because all income
and any realized gains must be distributed to shareholders each year, the bulk
of net assets consists of Paid-in Capital (money invested by shareholders). The
amounts shown for Undistributed Net Investment Income and Accumulated Net
Realized Gains usually approximate the sums the fund had available to distribute
to shareholders as income dividends or capital gains as of the statement date,
but may differ because certain investments or transactions may be treated
differently for financial statement and tax purposes. Any Accumulated Net
Realized Losses, and any cumulative excess of distributions over net income or
net realized gains, will appear as negative balances. Unrealized Appreciation
(Depreciation) is the difference between the market value of the fund's
investments and their cost, and reflects the gains (losses) that would be
realized if the fund were to sell all of its investments at their statement-date
values.
================================================================================
MARKET
VALUE*
EUROPEAN STOCK INDEX FUND SHARES (000)
================================================================================
COMMON STOCKS (99.6%)(1)
- --------------------------------------------------------------------------------
AUSTRIA (0.2%)
Erste Bank der Oesterreichischen
Sparkassen AG 35,588 $ 2,816
* Telekom Austria AG 267,223 2,738
OMV AG 17,925 2,153
Wienerberger AG 42,471 801
Voestalpine AG 22,657 637
Oesterreichische
Elektrizitaetswirtschafts AG
Class A 5,949 550
Mayr-Melnhof Karton AG 6,395 542
Flughafen Wien AG 14,521 507
Boehler-Uddeholm AG 7,527 392
* VA Technologies AG 13,171 330
* RHI AG 23,655 261
-----------------------
11,727
-----------------------
BELGIUM (1.4%)
Fortis Group 1,282,056 21,519
Dexia 844,884 9,684
Electrabel SA 39,783 9,537
Interbrew 197,483 4,408
KBC Bankverzekeringsholding 119,898 4,242
Solvay SA 56,372 3,982
Groupe Bruxelles Lambert SA 90,956 3,741
UCB SA 115,804 3,205
================================================================================
MARKET
VALUE*
SHARES (000)
================================================================================
Agfa Gevaert NV 150,324 2,986
Delhaize Group 97,922 $ 2,069
Colruyt NV 22,129 1,446
Umicore 21,169 962
Bekaert NV 18,678 858
Omega Pharma SA 26,589 690
Barco NV 11,039 638
D'Ieteren SA 3,630 461
Compagnie Maritime Belge SA 5,484 343
-----------------------
70,771
-----------------------
DENMARK (1.1%)
Danske Bank A/S 725,073 13,951
Novo Nordisk A/S B Shares 356,872 12,928
TDC A/S 172,545 4,292
D/S Svendborg B Shares 248 3,254
D/S 1912 B Shares 358 3,213
Danisco A/S 69,998 2,557
ISS A/S 58,443 2,187
H. Lundbeck A/S 93,457 1,939
Novozymes A/S 72,634 1,774
Group 4 Falck A/S 89,667 1,564
Coloplast A/S B Shares 17,362 1,284
Carlsberg A/S B Shares 32,663 1,188
* Topdanmark A/S 34,303 1,119
Vestas Wind Systems A/S 139,432 1,090
* William Demant A/S 39,690 990
21
================================================================================
MARKET
VALUE*
EUROPEAN STOCK INDEX FUND SHARES (000)
================================================================================
* GN Store Nord A/S 289,140 $ 987
* East Asiatic Co. A/S 26,669 629
DSV, De Sammensluttede
Vognmaend A/S 26,600 572
Kobenhavns Lufthavne A/S 8,248 538
* FLS Industries A/S B Shares 39,335 340
Bang & Olufsen A/S B Shares 14,447 291
* NEG Micon A/S 24,925 251
NKT Holding A/S 20,210 222
-----------------------
57,160
-----------------------
FINLAND (2.9%)
Nokia Oyj 6,318,167 106,896
Stora Enso Oyj R Shares 898,946 9,772
UPM-Kymmene Oyj 653,470 9,554
Fortum Oyj 448,676 3,220
Sampo Oyj A Shares 365,751 2,653
Instrumentarium Oyj 64,405 2,411
TietoEnator Oyj B Shares 111,769 1,852
Kone Corp. B Shares 45,285 1,541
* Elisa Oyj Class A 184,000 1,417
Metso Oyj 134,437 1,275
Outokumpu Oyj A Shares 117,043 967
Amer Group Ltd. 30,806 928
Kesko Oyj 77,401 881
Uponor Oyj 39,606 796
Orion-Yhtyma Oyj B Shares 47,399 793
Wartsila Oyj B Shares 49,140 568
* Rautaruuki Oyj 110,515 481
KCI Konecranes Oyj 17,739 386
Pohjola Group PLC D Shares 22,761 344
-----------------------
146,735
-----------------------
FRANCE (13.2%)
TotalFinaElf SA 842,436 110,471
BNP Paribas SA 1,063,454 49,918
Aventis SA 895,466 45,481
Carrefour SA 756,563 32,904
L'Oreal SA 446,827 31,940
Sanofi-Synthelabo SA 531,957 31,732
AXA 1,860,878 28,265
France Telecom SA 1,074,921 24,832
Societe Generale Class A 397,311 24,299
Groupe Danone 163,182 23,092
L'Air Liquide SA (Registered) 133,257 20,181
Suez SA 1,095,951 17,845
STMicroelectronics NV 772,635 15,969
Vivendi Universal SA 927,029 15,105
Cie. de St. Gobain SA 406,048 14,057
* Alcatel SA 1,589,981 13,024
Schneider Electric SA 269,501 12,759
LVMH Louis Vuitton
Moet Hennessy 290,975 12,697
Lafarge SA 175,089 11,763
================================================================================
MARKET
VALUE*
SHARES (000)
================================================================================
PSA Peugeot Citroen 239,400 $ 11,205
Renault SA 206,796 8,943
Accor SA 249,602 8,226
Lagardere S.C.A. 176,160 6,732
Compagnie Generale des
Etablissements Michelin SA
B Shares 178,447 6,602
Pinault-Printemps-Redoute SA 89,260 6,236
Pernod Ricard SA 70,600 6,197
Bouygues SA 228,109 5,580
Vinci SA 85,113 5,543
Essilor International SA 127,759 5,231
* Arcelor 457,169 5,174
Societe Television Francaise 1 169,108 4,750
Vivendi Universal SA ADR 272,160 4,466
* Cap Gemini SA 132,065 4,109
Unibail Company 56,116 3,754
European Aeronautic Defence
and Space Co. 379,922 3,532
* Thomson SA 239,478 3,509
* Wanadoo 498,900 3,408
Etablissements
Economiques du Casino
Guichard-Perrachon SA 49,433 3,365
Valeo SA 103,825 2,974
* Autoroutes du Sud de la France 106,312 2,907
Publicis Groupe SA 128,564 2,837
Sodexho Alliance SA 115,677 2,632
Pechiney SA A Shares 91,091 2,628
Thales SA 90,365 2,417
Technip-Coflexip SA 25,191 2,064
Sagem SA 25,381 2,054
* Business Objects SA 83,819 1,814
Societe BIC SA 45,234 1,590
Dassault Systemes SA 53,157 1,536
Imerys 10,573 1,403
Zodiac SA 52,778 1,191
Air France 102,988 1,147
* Atos Origin SA 27,163 969
* Alstom 329,130 669
* Club Mediterranee SA 16,906 377
Altran Technologies SA 86,292 317
-----------------------
674,422
-----------------------
GERMANY (8.6%)
Siemens AG 1,058,090 52,749
Deutsche Bank AG 738,484 38,192
E.On AG 777,025 37,193
Deutsche Telekom AG 2,772,474 37,068
BASF AG 693,304 30,926
SAP AG 269,950 27,657
DaimlerChrysler AG (Registered) 809,876 26,121
Allianz AG 362,071 25,598
22
================================================================================
MARKET
VALUE*
SHARES (000)
================================================================================
Bayer AG 916,568 $ 16,725
Muenchener
Rueckversicherungs-
Gesellschaft AG (Registered) 141,566 14,140
RWE AG 484,741 13,038
DaimlerChrysler AG 327,337 10,606
Schering AG 235,694 10,508
Volkswagen AG 295,719 10,396
Deutsche Post AG 516,753 6,165
Bayerische Hypo-und
Vereinsbank AG 446,320 5,942
Metro AG 192,838 5,357
Henkel KGaA 78,794 5,116
Adidas-Salomon AG 57,122 4,915
Beiersdorf AG 39,156 4,868
Altana AG 92,825 4,571
ThyssenKrupp AG 443,461 4,543
Linde AG 110,661 4,169
Deutsche Boerse AG 81,785 3,834
Porsche AG 10,399 3,830
Volkswagen AG Pfd. 139,021 3,545
* Infineon Technologies AG 473,611 3,515
* Deutsche Lufthansa AG 254,447 2,681
Man AG 140,598 2,561
* Continental AG 141,878 2,538
TUI AG 163,075 2,386
Wella AG 31,341 2,343
Fresenius Medical Care AG 46,377 2,328
Buderus AG 53,980 1,776
Merck KGaA 60,336 1,621
Gehe AG 34,513 1,369
RWE AG Pfd. 51,525 1,259
Fresenius Medical Care AG 35,229 1,254
* Qiagen NV 173,062 1,209
HeidelbergerCement AG 38,777 1,196
* EPCOS AG 63,647 983
Karstadt Quelle AG 55,844 944
MLP AG 72,180 835
* WCM Beteiligungs-und
Grundbesitz AG 215,666 587
ProSieben Sat.1 Media AG 96,637 549
Hugo Boss AG Pfd. 36,340 503
Douglas Holding AG 27,051 497
Aixtron AG 64,915 220
-----------------------
440,926
-----------------------
GREECE (0.5%)
Hellenic Telecommunication
Organization SA 431,000 4,618
* National Bank of Greece SA 192,960 2,705
* Alpha Credit Bank SA 191,480 2,658
* EFG Eurobank Ergasias 206,329 2,607
Coca-Cola Hellenic Bottling Co. SA 123,500 1,806
================================================================================
MARKET
VALUE*
EUROPEAN STOCK INDEX FUND SHARES (000)
================================================================================
* Public Power Corp. 93,100 $ 1,411
Titan Cement Co. SA 37,600 1,385
Vodafone-Panafon SA 210,910 1,337
Commercial Bank of Greece SA 87,860 1,230
Greek Organization of
Football Prognostics 108,100 987
Bank of Piraeus 152,010 936
Hellenic Petroleum SA 121,200 730
Intracom SA 100,480 572
Viohalco, Hellenic Copper &
Aluminum Industry SA 130,600 554
Hellenic Technodomiki Tev SA 81,200 507
Papastratos Cigarettes Co. SA 22,300 474
Technical Olympic SA 93,299 301
Hellenic Duty Free Shops SA 28,900 298
Aluminum of Greece SA 10,900 215
Folli-Follie SA 18,097 202
Attica Enterprises SA 68,600 172
Athens Water Supply and
Sewage Co. SA 36,900 139
M. J. Maillis SA 42,000 127
-----------------------
25,971
-----------------------
IRELAND (1.2%)
Allied Irish Banks PLC 1,186,675 18,210
Bank of Ireland 1,334,355 16,306
* CRH PLC 692,272 10,623
Irish Life & Permanent PLC 355,631 4,128
* Ryanair Holdings PLC 453,693 3,104
Kerry Group PLC A Shares 158,865 2,349
* Elan Corp. PLC 412,036 1,380
DCC PLC 105,528 1,307
* Independent News & Media PLC 739,649 974
Greencore Group PLC 219,489 674
* Ryanair Holdings PLC ADR 8,400 333
* Waterford Wedgewood PLC 816,839 219
* Elan Corp. PLC ADR 45,229 153
* Independent News & Media
PLC Rights Exp. 5/14/2003 150,958 79
-----------------------
59,839
-----------------------
ITALY (5.4%)
ENI SpA 3,696,189 52,677
Assicurazioni Generali SpA 1,345,028 30,907
Telecom Italia SpA 3,120,409 25,491
Telecom Italia Mobile SpA 5,000,028 23,548
Unicredito Italiano SpA 4,550,289 19,907
ENEL SpA 2,799,227 16,745
Telecom Italia SpA Risp. 2,701,638 13,297
Banca Intesa SpA 4,839,363 12,530
San Paolo-IMI SpA 1,145,912 9,451
Mediaset SpA 783,555 6,698
Riunione Adriatica di
Sicurta SpA 447,912 6,458
23
================================================================================
MARKET
VALUE*
EUROPEAN STOCK INDEX FUND SHARES (000)
================================================================================
Alleanza Assicurazioni SpA 616,772 $ 5,768
Mediobanca Banca di
Credito Finanziaria SpA 565,696 5,234
Banca Monte dei Paschi di
Siena SpA 1,598,476 4,638
* Seat Pagine Gialle SpA 6,636,441 4,503
Snam Rete Gas SpA 1,032,776 3,746
* Banca Nazionale del
Lavoro (BNL) 2,130,482 3,452
Capitalia SpA 1,623,042 2,563
Fiat SpA 311,507 2,371
Banca Intesa SpA Non
Convertible Risp. 1,239,585 2,248
Banca Popolare di
Milano SpA 508,205 2,116
Banca Fideuram SpA 395,304 2,087
Luxottica Group SpA 180,995 2,068
Mediolanum SpA 285,003 1,489
* Autogrill SpA 150,661 1,470
Parmalat Finanziaria SpA 533,245 1,363
Pirelli SpA 1,271,663 1,255
Mondadori (Arnoldo)
Editore SpA 169,308 1,200
Italcementi SpA 106,982 1,118
* Tiscali SpA 212,023 1,022
* FinecoGroup SpA 2,117,570 997
Gruppo Editoriale
L'Espresso SpA 227,330 893
Bulgari SpA 171,461 800
* Snia SpA 386,374 740
Benetton Group SpA 71,082 615
ACEA SpA 148,233 604
* Alitalia SpA 2,546,797 597
Fiat SpA Risp. 108,546 486
* e.Biscom SpA 16,294 470
Fiat SpA Pfd. 97,897 428
-----------------------
274,050
-----------------------
NETHERLANDS (7.1%)
Royal Dutch Petroleum Co. 2,772,436 113,399
Unilever NV 754,911 47,559
ING Groep NV 2,235,223 36,296
Koninklijke (Royal) Philips
Electronics NV 1,738,883 32,350
* ABN-AMRO Holding NV 1,889,990 31,934
* Aegon NV 1,553,552 15,795
* Koninklijke KPN NV 2,299,615 15,296
Heineken NV 258,457 9,597
Reed Elsevier NV 827,191 9,416
Verenigde Nederlandse
Uitgeversbedrijven
Verenigd Bezit 294,657 8,550
================================================================================
MARKET
VALUE*
SHARES (000)
================================================================================
Akzo Nobel NV 376,519 $ 8,370
TPG NV 446,706 6,969
* ASML Holding NV 569,477 4,919
Wolters Kluwer NV 366,153 4,769
* Koninklijke Ahold NV 858,464 3,928
* IHC Caland NV 40,137 2,072
* Koninklijke Numico NV 197,797 1,845
Aegon NV ARS 169,466 1,742
Koninklijke Vendex KBB NV 125,539 1,233
Oce NV 110,599 1,042
* Vedior NV 149,712 987
Hagemeyer NV 146,724 711
* Aegon NV Rights Exp.
5/13/2003 1,556,794 633
Buhrmann NV 128,174 428
* ASML Holding (New York) 38,580 340
KLM Royal Dutch Airlines NV 32,897 232
-----------------------
360,412
-----------------------
NORWAY (0.6%)
Norsk Hydro ASA 193,601 8,189
Statoil ASA 579,350 4,595
Orkla ASA 258,019 4,498
DNB Holding ASA 513,436 2,451
Telenor ASA 599,282 2,398
Gjensidige NOR ASA 68,750 2,382
Norske Skogindustrier ASA 141,964 1,948
Tomra Systems ASA 237,610 1,124
* Storebrand ASA 198,970 810
Schibsted ASA 65,288 756
Bergesen D.Y. ASA A Shares 29,443 724
* Tandberg ASA 159,412 620
Frontline Ltd. 55,077 582
* Aker Kvaerner ASA 644,944 380
Bergesen D.Y. ASA B Shares 13,506 285
Smedvig ASA A Shares 55,983 274
* EDB Business Partner ASA 64,900 163
* Nera ASA 130,409 156
* Merkantildata ASA 192,771 110
Smedvig ASA B Shares 20,440 85
-----------------------
32,530
-----------------------
PORTUGAL (0.5%)
Portugal Telecom SGPS SA 1,241,502 8,881
Electricidade de Portugal SA 2,359,988 4,267
Banco Comercial
Portugues SA 2,220,871 3,148
Brisa-Auto Estradas
de Portugal SA 397,499 2,143
Banco Espirito Santo SA 139,078 1,994
Banco BPI SA 502,169 1,339
Banco Comercial
Portugues SA Pfd. 27,639 1,337
24
================================================================================
MARKET
VALUE*
SHARES (000)
================================================================================
* PT Multimedia-Servicos
de Telecomunicacoes e
Multimedia, SGPS, SA 63,780 $ 1,000
Cimpor-Cimento de Portugal SA 228,955 848
* Sonae SGPS SA 1,307,629 569
* Jeronimo Martins & Filho,
SGPS, SA 48,099 381
-----------------------
25,907
-----------------------
SPAIN (5.1%)
* Telefonica SA 5,773,745 63,856
Banco Santander
Central Hispano SA 5,662,800 44,491
Banco Bilbao Vizcaya
Argentaria SA 4,005,572 40,322
Repsol-YPF SA 1,209,101 17,609
Endesa SA 1,190,461 16,886
Iberdrola SA 1,014,057 16,331
Altadis SA 384,181 9,904
* Telefonica SA ADR 190,682 6,340
Industria de Diseno Textil SA 287,709 5,735
Gas Natural SDG SA 267,442 5,119
Union Fenosa SA 301,715 4,199
Grupo Dragados SA 163,757 3,129
* Terra Networks, SA 518,935 2,757
Acesa Infraestructuras SA 180,630 2,348
Grupo Ferrovial, SA 83,739 2,222
Acerinox SA 57,641 2,148
ACS, Actividades de
Construccion y Servicios, SA 54,392 2,049
Acciona SA 37,768 1,812
Fomento de Construc y
Contra SA 69,264 1,773
Iberia (Linea Aer Espana) 606,130 1,062
Vallehermoso SA 151,788 1,569
Amadeus Global Travel
Distribution SA 308,989 1,545
* Zeltia SA 176,311 1,377
* NH Hoteles SA 133,285 1,197
Corporacion Mapfre SA 109,456 1,026
Telefonica Publicidad e
Informacion, SA 218,027 934
Sociedad General de Aguas
de Barcelona SA 75,921 883
Promotora de Informaciones SA 99,059 752
Sol Melia SA 101,266 398
* TelePizza, SA 237,907 279
-----------------------
260,052
-----------------------
SWEDEN (3.0%)
* Telefonaktiebolaget LM
Ericsson AB Class B 20,210,343 18,408
Nordea AB 2,956,376 15,686
================================================================================
MARKET
VALUE*
SHARES (000)
================================================================================
Hennes & Mauritz AB B Shares 626,644 $ 13,943
Svenska Handelsbanken
AB A Shares 730,836 11,615
* TeliaSonera AB 2,470,268 8,788
Svenska Cellulosa AB B Shares 250,884 8,496
Electrolux AB Series B 411,369 7,720
Sandvik AB 289,911 7,372
Skandinaviska Enskilda
Banken AB A Shares 622,542 6,469
Volvo AB B Shares 280,025 5,597
Securitas AB B Shares 388,082 4,555
* Tele2 AB B Shares 124,348 4,150
Assa Abloy AB 388,791 3,707
Atlas Copco AB A Shares 148,269 3,598
Swedish Match AB 478,754 3,541
Skandia Forsakrings AB 1,156,644 3,365
SKF AB B Shares 105,338 3,052
* Skanska AB B Shares 512,172 2,962
Volvo AB A Shares 129,603 2,488
Atlas Copco AB B Shares 93,361 2,112
Eniro AB 223,800 1,710
Holmen AB 63,800 1,650
Nobel Biocare Holding AG 28,750 1,601
Gambro AB A Shares 231,532 1,302
Drott AB B Shares 123,018 1,301
Svenskt Stal AB A Shares 81,352 1,069
Trelleborg AB B Shares 102,099 974
SKF AB A Shares 30,275 885
Svenska Handelsbanken
AB B Shares 54,496 836
* Modern Times Group AB 69,083 773
Hoganas AB B Shares 38,800 723
Gambro AB B Shares 121,697 687
* WM-Data AB Class B 354,140 481
* SAS AB 93,688 449
OM AB 69,671 398
Svenskt Stal AB 29,119 361
SAPA AB 14,100 276
* Eniro AB Rights Exp.
5/6/2003 230,400 23
-----------------------
153,123
-----------------------
SWITZERLAND (11.1%)
Novartis AG (Registered) 3,620,770 142,827
Nestle SA (Registered) 523,037 106,631
UBS AG 1,621,592 76,939
Roche Holdings AG 927,882 59,042
Credit Suisse Group (Registered) 1,577,446 37,684
Swiss Re (Registered) 425,338 27,786
Zurich Financial Services AG 190,255 20,060
Swisscom AG 35,040 10,838
Cie. Financiere Richemont AG 693,038 10,245
25
================================================================================
MARKET
VALUE*
EUROPEAN STOCK INDEX FUND SHARES (000)
================================================================================
* Syngenta AG 141,415 $ 7,299
Holcim Ltd. B Shares 36,485 6,846
Adecco SA (Registered) 171,669 6,582
* CIBA Specialty Chemicals AG
(Registered) 91,457 6,318
Serono SA Class B 9,207 4,996
Roche Holdings AG (Bearer) 42,556 4,377
Swatch Group AG (Bearer) 43,825 3,684
Synthes-Stratec Inc. 5,807 3,661
* ABB Ltd. 1,187,391 3,651
Givaudan SA 9,254 3,582
Lonza AG (Registered) 57,235 3,475
* Centerpulse (Registered) 14,260 3,117
SGS Societe Generale de
Surveillance Holding SA
(Registered) 6,261 2,190
* Logitech International SA 56,606 2,087
Clariant AG 182,630 2,040
UBS AG 35,370 1,678
Swatch Group AG (Registered) 75,218 1,289
* Schindler Holding AG (Ptg. Ctf.) 7,276 1,218
Unaxis Holding AG 13,325 1,064
Valora Holding AG 5,697 1,023
* Kuoni Reisen Holding AG
(Registered) 4,100 901
* Kudelski SA 43,599 754
* Forbo Holding AG (Registered) 1,807 560
Phonak Holding AG 50,124 532
Sulzer AG (Registered) 4,223 521
* Georg Fischer AG (Registered) 4,947 490
* Publigroupe SA 2,505 464
Tecan AG 16,775 441
-----------------------
566,892
-----------------------
UNITED KINGDOM (37.7%)
BP PLC 26,103,021 165,418
GlaxoSmithKline PLC 7,959,223 159,520
HSBC Holdings PLC 14,198,090 155,555
Vodafone Group PLC 78,275,213 154,504
Royal Bank of Scotland
Group PLC 3,630,230 95,212
AstraZeneca Group PLC 2,270,995 89,108
Shell Transport &
Trading Co. PLC 12,779,988 76,545
Barclays PLC 8,657,155 59,808
HBOS PLC 4,994,316 58,510
Lloyds TSB Group PLC 7,370,388 48,474
Diageo PLC 4,175,698 46,316
Unilever PLC 3,653,622 35,913
BT Group PLC 11,454,963 32,817
Tesco PLC 9,534,726 30,173
National Grid Transco PLC 4,096,552 26,910
Rio Tinto PLC 1,407,518 26,905
================================================================================
MARKET
VALUE*
SHARES (000)
================================================================================
Vodafone Group PLC ADR 1,177,400 $ 23,265
BP PLC ADR 575,360 22,174
Aviva PLC 2,978,611 20,947
British American Tobacco PLC 2,159,558 20,709
BG Group PLC 4,662,326 18,648
* British Sky Broadcasting
Group PLC 1,664,847 17,256
Prudential PLC 2,638,580 16,152
Imperial Tobacco Group PLC 961,927 16,097
BHP Billiton PLC 3,094,604 15,827
Cadbury Schweppes PLC 2,719,701 15,149
Centrica PLC 5,610,626 14,908
Marks & Spencer Group PLC 3,017,252 14,057
Compass Group PLC 2,935,842 13,514
Kingfisher PLC 3,447,983 13,474
Reed Elsvier PLC 1,678,309 13,385
Reckitt Benckiser PLC 745,091 13,141
GUS PLC 1,330,309 12,295
Scottish & Southern
Energy PLC 1,134,999 11,664
ScottishPower PLC 1,829,287 11,366
BAA PLC 1,406,199 10,855
Legal & General Group PLC 8,575,201 10,622
Boots Group PLC 1,110,005 10,157
Pearson PLC 1,059,472 8,831
BOC Group PLC 656,064 8,273
BAE Systems PLC 4,040,086 8,200
Smith & Nephew PLC 1,229,327 8,198
WPP Group PLC 1,134,011 8,070
Smiths Group PLC 736,379 7,874
Land Securities Group PLC 622,256 7,529
Rentokil Initial PLC 2,465,684 7,369
Wolseley PLC 761,642 7,365
SABMiller PLC 1,059,502 7,298
J. Sainsbury PLC 1,926,812 7,283
United Utilities PLC 732,764 7,039
Amersham PLC 928,520 6,674
Safeway PLC 1,394,159 6,061
3i Group PLC 811,321 6,030
* InterContinental Hotels
Group PLC 971,586 5,901
Man Group PLC 346,964 5,850
Next PLC 386,363 5,826
Scottish & Newcastle PLC 1,015,501 5,802
Carnival PLC 219,189 5,472
Hanson PLC 971,985 5,445
Severn Trent PLC 456,197 5,213
Hilton Group PLC 2,096,353 5,126
Dixons Group PLC 2,573,243 4,575
Amvesco PLC 836,206 4,544
Bunzl PLC 620,097 4,465
British Land Co., PLC 667,876 4,355
26
================================================================================
MARKET
VALUE*
SHARES (000)
================================================================================
Reuters Group PLC 1,897,341 $ 4,094
Granada PLC 3,657,430 3,990
Whitbread PLC 392,785 3,889
Johnson Matthey PLC 291,865 3,888
ScottishPower PLC ADR 154,280 3,812
Rexam PLC 606,738 3,792
Exel PLC 393,175 3,770
Cable and Wireless PLC 3,008,101 3,618
Capita Group PLC 878,830 3,561
The Sage Group PLC 1,600,856 3,550
Daily Mail and General Trust 403,177 3,483
Kelda Group PLC 520,761 3,425
Royal & Sun Alliance
Insurance Group PLC 1,906,642 3,329
Imperial Chemical Industries PLC 1,581,313 3,279
* Mitchells & Butlers PLC 962,986 3,263
BPB PLC 648,876 3,215
GKN PLC 970,257 3,194
Provident Financial PLC 337,687 3,098
Rank Group PLC 787,181 3,041
Signet Group PLC 2,259,389 3,033
Hays PLC 2,173,492 2,901
Electrocomponents PLC 575,271 2,873
Brambles Industries PLC 958,439 2,849
Rolls-Royce PLC 1,950,661 2,829
The Peninsular & Oriental
Steam Navigation Co. 910,823 2,810
WPP Group PLC ADR 78,406 2,796
Slough Estates PLC 548,787 2,778
Associated British Ports
Holdings PLC 432,210 2,711
* International Power PLC 1,476,957 2,644
Hammerson PLC 362,213 2,634
Tate & Lyle PLC 539,548 2,561
Misys PLC 768,589 2,352
Taylor Woodrow PLC 729,775 2,286
RMC Group PLC 351,470 2,247
Barratt Developments PLC 315,148 2,105
FirstGroup PLC 546,015 2,094
IMI PLC 472,024 2,071
AWG PLC 237,052 2,029
EMI Group PLC 1,049,050 2,012
* George Wimpey PLC 495,956 1,982
BBA Group PLC 620,082 1,925
United Business Media PLC 446,511 1,784
The Berkeley Group PLC 178,571 1,783
LogicaCMG PLC 993,288 1,754
Aegis Group PLC 1,481,819 1,735
Close Brothers Group PLC 189,109 1,630
Canary Wharf Group PLC 618,848 1,612
Balfour Beatty PLC 555,766 1,592
Schroders PLC 162,899 1,582
================================================================================
MARKET
VALUE*
SHARES (000)
================================================================================
* Celltech Group PLC 367,443 $ 1,500
Amec PLC 401,303 1,488
* British Airways PLC 723,494 1,463
Carlton Communications PLC 850,368 1,427
Serco Group PLC 579,759 1,396
* ARM Holdings PLC 1,356,341 1,387
Pilkington PLC 1,365,893 1,332
Kidde PLC 1,096,995 1,262
Securicor PLC 821,918 1,235
Chubb PLC 1,112,097 1,186
Invensys PLC 4,692,398 1,106
Novar PLC 583,560 1,031
Stagecoach Group PLC 1,440,369 1,013
De La Rue Group PLC 250,300 916
* Corus Group PLC 4,068,388 901
FKI PLC 746,167 885
Great Portland Estates PLC 250,689 879
Aggreko PLC 334,833 859
SSL International PLC 244,523 832
-----------------------
1,929,401
-----------------------
- --------------------------------------------------------------------------------
TOTAL COMMON STOCKS
(Cost $5,452,661) 5,089,918
================================================================================
FACE
AMOUNT
(000)
- --------------------------------------------------------------------------------
TEMPORARY CASH INVESTMENTS (21.4%)(1)
- --------------------------------------------------------------------------------
Federal National Mortgage Assn.
(2) 1.168%, 7/2/2003 $3,000 2,994
Repurchase Agreement
Collateralized by U.S. Government
Obligations in a Pooled
Cash Account
1.32%, 5/1/2003--Note F 1,092,003 1,092,003
- --------------------------------------------------------------------------------
TOTAL TEMPORARY CASH INVESTMENTS
(Cost $1,094,997) 1,094,997
- --------------------------------------------------------------------------------
TOTAL INVESTMENTS (121.0%)
(Cost $6,547,658) 6,184,915
- --------------------------------------------------------------------------------
27
================================================================================
MARKET
VALUE*
EUROPEAN STOCK INDEX FUND (000)
================================================================================
OTHER ASSETS AND LIABILITIES (-21.0%)
- --------------------------------------------------------------------------------
Other Assets--Note B $ 63,551
Security Lending Collateral
Payable to Brokers--Note F (1,092,003)
- --------------------------------------------------------------------------------
Other Liabilities (44,257)
- --------------------------------------------------------------------------------
(1,072,709)
- --------------------------------------------------------------------------------
NET ASSETS (100%) $5,112,206
================================================================================
*See Note A in Notes to Financial Statements.
*Non-income-producing security.
(1)The fund invests a portion of its cash reserves in equity markets through the
use of index futures contracts. After giving effect to futures investments, the
fund's effective common stock and temporary cash investment positions represent
100.1% and 20.9%, respectively, of net assets. See Note D in Notes to Financial
Statements.
(2)Security segregated as initial margin for open futures contracts.
ADR--American Depositary Receipt.
ARS--American Registered Share.
(Ptg. Ctf.)--Participating Certificate.
================================================================================
AMOUNT
(000)
================================================================================
AT APRIL 30, 2003, NET ASSETS CONSISTED OF:
- --------------------------------------------------------------------------------
Paid-in Capital $5,819,378
Undistributed Net Investment Income 54,667
Accumulated Net Realized Losses (402,242)
Unrealized Appreciation (Depreciation)
Investment Securities (362,743)
Futures Contracts 1,121
Foreign Currencies and
Forward Currency Contracts 2,025
- --------------------------------------------------------------------------------
NET ASSETS $5,112,206
================================================================================
Investor Shares--Net Assets
Applicable to 254,912,676 outstanding
$.001 par value shares of beneficial interest
(unlimited authorization) $4,257,647
- --------------------------------------------------------------------------------
NET ASSET VALUE PER SHARE-- INVESTOR SHARES $16.70
================================================================================
Admiral Shares--Net Assets
Applicable to 8,968,506 outstanding $.001
par value shares of beneficial interest
(unlimited authorization) $351,692
- --------------------------------------------------------------------------------
NET ASSET VALUE PER SHARE-- ADMIRAL SHARES $39.21
================================================================================
Institutional Shares--Net Assets
Applicable to 30,089,972 outstanding $.001
par value shares of beneficial interest
(unlimited authorization) $502,867
- --------------------------------------------------------------------------------
NET ASSET VALUE PER SHARE-- INSTITUTIONAL SHARES $16.71
================================================================================
See Note D in Notes to Financial Statements for the tax-basis components of net
assets.
28
================================================================================
MARKET
VALUE*
PACIFIC STOCK INDEX FUND SHARES (000)
================================================================================
COMMON STOCKS (98.8%)(1)
- --------------------------------------------------------------------------------
AUSTRALIA (19.3%)
National Australia Bank Ltd. 1,851,018 $ 37,632
Commonwealth Bank
of Australia 1,517,198 25,834
BHP Billiton Ltd. 4,497,076 25,431
Australia & New Zealand Bank
Group Ltd. 1,823,167 21,270
Westpac Banking Corp., Ltd. 2,123,970 21,139
News Corp. Ltd. Pfd. 2,326,596 13,739
News Corp. Ltd. 1,777,093 12,651
Woolworths Ltd. 1,286,438 10,397
AMP Ltd. 1,405,678 7,676
Rio Tinto Ltd. 377,845 7,511
Foster's Group Ltd. 2,499,975 7,006
Wesfarmers Ltd. 454,714 6,969
Telstra Corp. Ltd. 2,640,659 6,954
Coles Myer Ltd. 1,369,092 5,892
Westfield Trust (Units) 2,455,016 5,268
Amcor Ltd. 1,007,604 5,238
Macquarie Infrastucture Group 2,294,442 4,722
Westfields Holdings Ltd. 514,756 4,701
Suncorp-Metway Ltd. 636,524 4,527
General Property Trust 2,339,928 4,391
Woodside Petroleum Ltd. 564,043 4,044
Insurance Australia Group Ltd. 2,003,335 3,885
Australian Gas Light Co., Ltd. 541,653 3,873
Macquarie Bank Ltd. 244,362 3,834
Brambles Industries Ltd. 1,178,336 3,796
QBE Insurance Group Ltd. 688,706 3,679
Alumina Ltd. 1,346,659 3,673
* Rinker Group Ltd. 1,130,438 3,437
* WMC Resources Ltd. 1,347,964 3,373
Stockland 1,007,578 3,151
Lend Lease Corp. 474,868 3,003
Tabcorp Holdings Ltd. 442,091 2,931
M.I.M. Holdings Ltd. 2,423,710 2,577
Santos Ltd. 697,989 2,532
Origin Energy Ltd. 779,680 2,190
Mirvac Group 812,351 2,124
Orica Ltd. 336,091 2,081
Boral Ltd. 684,903 2,039
James Hardie Industries NV 496,737 2,038
BHP Steel Ltd. 957,146 2,030
CSL Ltd. 193,492 1,893
Mayne Group Ltd. 996,982 1,846
Southcorp Ltd. 772,180 1,826
Coca-Cola Amatil Ltd. 500,233 1,780
John Fairfax Holdings Ltd. 852,719 1,627
Patrick Corp. Ltd. 199,700 1,623
Newcrest Mining Ltd. 383,430 1,571
Transurban Group 523,145 1,545
================================================================================
MARKET
VALUE*
SHARES (000)
================================================================================
Cochlear Ltd. 64,050 $ 1,357
Paperlinx Ltd. 421,721 1,353
CSR Ltd. 1,148,439 1,279
CFS Gandel Retail Trust 1,373,500 1,203
Sonic Healthcare Ltd. 265,558 1,057
Tab Ltd. 519,058 1,049
Commonwealth Property
Office Fund 1,362,030 1,014
AMP Diversified Property Ltd. 538,509 997
Leighton Holdings Ltd. 158,558 964
Deutsche Office Trust 1,324,428 928
Harvey Norman Holdings Ltd. 635,325 906
Principal Office Fund 1,027,602 893
Australian Stock Exchange Ltd. 121,307 873
Publishing & Broadcasting Ltd. 149,509 826
* Ansell Ltd. 215,474 783
Futuris Corp., Ltd. 730,754 699
Iluka Resources Ltd. 271,159 697
OneSteel Ltd. 602,291 644
Computershare Ltd. 532,341 566
Aristocrat Leisure Ltd. 334,276 326
David Jones Ltd. 406,821 267
Sons of Gwalia Ltd. 191,296 221
* Energy Developments Ltd. 103,208 136
-----------------------
331,987
-----------------------
HONG KONG (5.5%)
Hutchison Whampoa Ltd. 2,584,600 14,383
Cheung Kong Holdings Ltd. 1,826,100 10,092
Hang Seng Bank Ltd. 924,446 9,157
CLP Holdings Ltd. 2,181,899 8,924
Sun Hung Kai Properties Ltd. 1,597,800 7,498
Hong Kong Electric
Holdings Ltd. 1,675,400 6,724
Hong Kong & China
Gas Co., Ltd. 4,462,651 5,264
Swire Pacific Ltd. A Shares 1,127,400 4,467
Boc Hong Kong Holdings Ltd. 3,193,500 3,112
Bank of East Asia Ltd. 1,633,133 3,026
Wharf Holdings Ltd. 1,470,714 2,574
Li & Fung Ltd. 1,915,500 2,149
Johnson Electric Holdings Ltd. 1,770,100 1,906
Henderson Land
Development Co. Ltd. 724,000 1,796
MTR Corp. 1,580,500 1,702
Cathay Pacific Airways Ltd. 1,206,000 1,454
Hong Kong Exchanges &
Clearing Ltd. 1,239,000 1,446
* PCCW Ltd. 2,241,569 1,423
Esprit Holdings Ltd. 635,000 1,246
Hang Lung Properties Ltd. 1,380,500 1,195
Cheung Kong Infrastructure
Holdings Ltd. 541,000 1,013
29
================================================================================
MARKET
VALUE*
PACIFIC STOCK INDEX FUND SHARES (000)
================================================================================
Television Broadcasts Ltd. 330,000 $ 1,009
Shangri-La Asia Ltd. 1,150,744 727
SCMP Group Ltd. 1,654,546 626
Hysan Development Co., Ltd. 727,211 545
New World
Development Co., Ltd. 1,685,697 513
ASM Pacific Technology Ltd. 200,000 496
Sino Land Co. 1,759,600 468
Giordano International Ltd. 1,719,108 463
-----------------------
95,398
-----------------------
JAPAN (70.3%)
Toyota Motor Corp. 2,792,500 63,221
NTT DoCoMo, Inc. 20,639 42,572
Canon, Inc. 997,000 40,295
Takeda Chemical Industries Ltd. 957,000 35,067
Tokyo Electric Power Co. 1,374,100 27,883
Sony Corp. 1,048,238 25,490
Honda Motor Co., Ltd. 753,300 24,950
Nippon Telegraph and
Telephone Corp. 6,323 22,162
Matsushita Electric
Industrial Co., Ltd. 2,633,945 20,981
Nomura Holdings Inc. 2,114,000 20,934
Nissan Motor Co., Ltd. 2,674,300 20,518
East Japan Railway Co. 3,822 17,306
Mitsubishi Tokyo
Financial Group Inc. 4,772 16,167
Chubu Electric Power Co. 746,500 15,023
Kansai Electric Power Co., Inc. 801,500 13,408
Fuji Photo Film Co., Ltd. 523,000 13,331
Rohm Co., Ltd. 127,800 13,170
Shin-Etsu Chemical Co., Ltd. 429,200 12,848
Kao Corp. 682,000 12,438
Hitachi Ltd. 3,418,000 11,407
Ricoh Co. 738,000 11,318
Sharp Corp. 1,060,000 11,110
Millea Holdings, Inc. 1,659 10,767
Seven Eleven Japan Co. Ltd. 438,000 10,430
Ito-Yokado Co., Ltd. 425,000 9,996
Murata Manufacturing Co., Ltd. 277,400 9,886
Tokyo Gas Co., Ltd. 3,014,000 9,806
Yamanouchi
Pharmaceuticals Co., Ltd. 388,300 9,800
Kyocera Corp. 194,100 9,472
Nintendo Co. 118,200 9,237
Toshiba Corp. 3,269,000 8,717
Bridgestone Corp. 718,500 8,151
Tohoku Electric Power Co. 506,800 8,070
Denso Corp. 564,200 8,042
Mitsubishi Heavy Industries Ltd. 3,423,000 7,606
Hoya Corp. 124,700 7,372
Mitsubishi Corp. 1,209,000 7,187
================================================================================
MARKET
VALUE*
SHARES (000)
================================================================================
Mitsui Sumitomo Insurance Co. 1,498,530 $ 7,037
Dai-Nippon Printing Co., Ltd. 722,000 7,010
Kyushu Electric Power Co., Inc. 450,000 6,996
Osaka Gas Co., Ltd. 2,398,000 6,937
Sumitomo Mitsui
Financial Group, Inc. 4,415 6,923
Central Japan Railway Co. 1,057 6,860
Nippon Steel Corp. 6,087,000 6,788
Ajinomoto Co., Inc. 659,000 6,686
Tokyo Electron Ltd. 178,230 6,680
Mitsui & Co., Ltd. 1,410,000 6,680
JFE Holdings, Inc. 548,600 6,610
Nippon Oil Corp. 1,626,600 6,479
Mitsubishi Estate Co., Ltd. 1,083,000 6,339
Kirin Brewery Co., Ltd. 818,000 6,310
Aeon Co., Ltd. 275,900 6,269
Sankyo Co., Ltd. 427,600 6,196
Keyence Corp. 37,980 6,105
Sanyo Electric Co., Ltd. 1,786,000 5,586
Secom Co., Ltd. 236,000 5,501
Daiwa Securities Group Inc. 1,360,000 5,348
* Fujitsu Ltd. 1,907,000 5,325
Yamato Transport Co., Ltd. 475,000 5,313
* NEC Corp. 1,675,000 5,239
Fanuc Co., Ltd. 128,000 5,238
Eisai Co., Ltd. 282,500 4,986
Mitsubishi Electric Corp. 1,913,000 4,957
Asahi Glass Co., Ltd. 913,000 4,861
Japan Tobacco, Inc. 832 4,849
TDK Corp. 135,000 4,686
Shizuoka Bank Ltd. 707,000 4,671
Fujisawa
Pharmaceutical Co., Ltd. 275,000 4,658
Olympus Optical Co., Ltd. 267,000 4,623
Takefuji Corp. 87,090 4,535
SMC Corp. 59,800 4,503
Mitsui Fudosan Co., Ltd. 834,000 4,490
Nitto Denko Corp. 155,400 4,469
Sekisui House Ltd. 598,000 4,392
Komatsu Ltd. 1,129,000 4,307
* Kinki Nippon Railway Co. 1,713,150 4,281
Toppan Printing Co., Ltd. 664,000 4,209
Nikko Securities Co., Ltd. 1,541,000 4,135
Orix Corp. 90,200 4,122
Omron Corp. 251,000 4,041
Sompo Japan Insurance Inc. 880,000 4,021
Asahi Kasei Corp. 1,459,000 3,976
Shionogi & Co., Ltd. 334,000 3,966
Bank of Yokohama Ltd. 1,079,000 3,809
Sumitomo Electric Industries Ltd. 668,000 3,736
Nippon Yusen Kabushiki
Kaisha Co. 1,095,000 3,700
30
================================================================================
MARKET
VALUE*
SHARES (000)
================================================================================
Shiseido Co., Ltd. 404,000 $ 3,689
West Japan Railway Co. 1,181 3,684
OJI Paper Co., Ltd. 947,000 3,581
* Mizuho Financial Group, Inc. 6,626 3,539
Terumo Corp. 212,600 3,535
NTT Data Corp. 1,491 3,526
Sumitomo Chemical Co. 1,275,000 3,453
Daiichi Pharmaceutical Co., Ltd. 272,200 3,446
Pioneer Corp. 170,900 3,425
Toray Industries, Inc. 1,407,000 3,398
Nippon Unipac Holding 1,054 3,385
Itochu Corp. 1,602,000 3,358
Sumitomo Corp. 824,000 3,316
Nippon Express Co., Ltd. 881,000 3,287
Mitsubishi Chemical Corp. 1,941,000 3,223
Daiwa House Industry Co., Ltd. 531,000 3,206
Tostem Inax Holding Corp. 296,408 3,161
Promise Co., Ltd. 96,650 3,161
Daikin Industries Ltd. 188,000 3,127
Tokyu Corp. 1,152,000 3,120
Keio Electric Railway Co., Ltd. 642,000 3,117
* UFJ Holdings Inc. 3,862 3,109
Marui Co., Ltd. 369,600 3,077
Chugai Pharmaceutical Co., Ltd. 293,200 3,073
Sumitomo Trust &
Banking Co., Ltd. 1,038,000 2,942
Taisho Pharmaceutical Co. 202,000 2,847
Advantest Corp. 83,100 2,787
Asahi Breweries Ltd. 455,000 2,705
Credit Saison Co., Ltd. 139,400 2,624
Chiba Bank Ltd. 740,000 2,618
Hirose Electric Co., Ltd. 35,100 2,510
Bank of Fukuoka, Ltd. 588,000 2,509
Konica Corp. 274,000 2,507
Kubota Corp. 1,081,000 2,493
Mitsui Chemicals, Inc. 612,000 2,489
Mabuchi Motor Co. 33,300 2,488
Matsushita Electric Works, Ltd. 472,000 2,474
Joyo Bank Ltd. 852,000 2,465
* Softbank Corp. 219,100 2,456
Yakult Honsha Co., Ltd. 167,000 2,451
Kuraray Co., Ltd. 430,000 2,445
Acom Co., Ltd. 86,190 2,421
Toyoda Automatic
Loom Works Ltd. 161,900 2,396
Tobu Railway Co., Ltd. 839,000 2,350
Lawson Inc. 76,200 2,338
Keihin Electric Express
Railway Co., Ltd. 471,000 2,255
Mitsui Osk Lines Ltd. 858,000 2,245
* Resona Holdings Inc. 4,674,000 2,234
ToneGeneral Sekiyu K.K. 347,000 2,205
================================================================================
MARKET
VALUE*
SHARES (000)
================================================================================
Oriental Land Co., Ltd. 52,700 $ 2,205
Nissin Food Products Co., Ltd. 97,900 2,134
Taisei Corp. 985,000 2,098
Stanley Electric Co. 166,000 2,088
Yamaha Corp. 183,500 2,076
JSR Corp. 197,000 2,055
Teijin Ltd. 933,000 2,042
* Nikon Corp. 306,000 2,040
Fast Retailing Co., Ltd. 68,900 2,005
Nidec Corp. 37,400 1,973
Gunma Bank Ltd. 418,000 1,963
Kajima Corp. 920,000 1,959
Uni-Charm Corp. 48,700 1,940
Ohbayashi Corp. 695,000 1,894
Aiful Corp. 49,950 1,876
Daito Trust Construction Co., Ltd. 97,800 1,866
Alps Electric Co., Ltd. 172,000 1,856
Yokogawa Electric Corp. 254,000 1,810
NTN Corp. 471,000 1,801
JGC Corp. 250,000 1,761
Toto Ltd. 351,000 1,760
Nippon Meat Packers, Inc. 194,000 1,742
Sumitomo Metal Mining Co. 578,000 1,740
Shimizu Corp. 665,000 1,740
Kyowa Hakko Kogyo Co. 385,000 1,727
Citizen Watch Co., Ltd. 312,000 1,645
Mitsui Mining &
Smelting Co., Ltd. 624,000 1,638
* Showa Denko K.K. 1,077,000 1,635
Yamada Denki Co., Ltd. 84,200 1,624
77 Bank Ltd. 374,000 1,587
Sumitomo Metal
Industries Ltd. 3,415,000 1,518
NGK Insulators Ltd. 313,000 1,517
Toyo Seikan Kaisha Ltd. 166,000 1,480
Konami Corp. 106,700 1,403
Ushio Inc. 121,000 1,360
Shimano, Inc. 85,500 1,357
Japan Airlines System Co. 760,000 1,351
Mitsubishi Rayon Co., Ltd. 584,000 1,337
Casio Computer Co. 219,000 1,331
NGK Spark Plug Co. 186,000 1,329
Marubeni Corp. 1,400,000 1,327
CSK Corp. 74,900 1,322
Toho Co., Ltd. 152,300 1,314
Uny Co., Ltd. 155,000 1,311
NSK Ltd. 490,000 1,307
Shimamura Co., Ltd. 23,600 1,306
FamilyMart Co., Ltd. 68,300 1,303
Hino Motors, Ltd. 269,000 1,281
Kawasaki Kisen Kaisha Ltd. 558,000 1,277
Takashimaya Co. 284,000 1,267
31
================================================================================
MARKET
VALUE*
PACIFIC STOCK INDEX FUND SHARES (000)
================================================================================
Tosoh Corp. 561,000 $ 1,265
Sekisui Chemical Co. 490,000 1,257
Sumitomo Realty &
Development Co. 384,000 1,256
* Trend Micro Inc. 102,500 1,246
Taiheiyo Cement Corp. 894,000 1,237
* Oki Electric Industry Co. Ltd. 575,000 1,234
Nisshin Seifun Group Inc. 180,000 1,226
Isetan Co. 179,500 1,209
Kaneka Corp. 266,000 1,207
Susuken Co., Ltd. 45,200 1,194
Ishikawajima-Harima Heavy
Industries Co. 1,303,000 1,191
* Kawasaki Heavy Industries Ltd. 1,397,000 1,148
Minebea Co., Ltd. 374,000 1,110
Meiji Seika Kaisha Ltd. 331,000 1,105
Kikkoman Corp. 174,000 1,084
Denki Kagaku Kogyo K.K. 487,000 1,082
Dai-Nippon Ink & Chemicals, Inc. 697,000 1,081
Ube Industries Ltd. 836,000 1,080
* Ashikaga Financial Group, Inc. 870,000 1,065
Mitsukoshi Ltd. 422,000 1,037
THK Co., Inc. 112,400 1,037
Toyoda Gosei Co., Ltd. 58,000 1,033
Nippon Mining Holdings Inc. 591,500 1,032
Meitec Corp. 39,900 1,014
Kamigumi Co., Ltd. 221,000 1,012
Skylark Co., Ltd. 94,200 1,011
Dowa Mining Co. Ltd. 304,000 1,007
Kurita Water Industries Ltd. 115,700 1,003
Benesse Corp. 75,200 1,003
Furukawa Electric Co. 543,000 997
Fuji Electric Co. , Ltd. 581,000 994
* Mitsui Trust Holding Inc. 518,400 991
Makita Corp. 132,000 991
* All Nippon Airways Co., Ltd. 590,000 989
The Suruga Bank, Ltd. 233,000 985
Q.P. Corp. 121,500 978
Yamaha Motor Co., Ltd. 131,000 975
Showa Shell Sekiyu K.K. 151,000 966
Yamazaki Baking Co., Ltd. 154,000 963
Dentsu Inc. 320 952
* Hokuriku Bank Ltd. 745,000 943
Oracle Corp. Japan 37,200 939
* Mitsubishi Materials Corp. 1,056,000 939
Toyobo Ltd. 639,000 916
Daicel Chemical Industries Ltd. 272,000 910
Taiyo Yuden Co., Ltd. 119,000 907
Nippon Shokubai Co., Ltd. 173,000 895
Nichirei Corp. 290,000 888
Obic Co., Ltd. 5,800 885
Meiji Dairies Corp. 242,000 885
================================================================================
MARKET
VALUE*
SHARES (000)
================================================================================
Ito En, Ltd. 28,900 $ 872
Onward Kashiyama Co., Ltd. 121,000 870
Daimaru, Inc. 240,000 863
Fuji Television Network, Inc. 244 861
Seino Transportation Co., Ltd. 144,000 850
Aoyama Trading Co., Ltd. 62,800 845
Takara Holdings Inc. 188,000 842
Shimachu Co. 50,700 838
Gunze Ltd. 220,000 828
Fujikura Ltd. 361,000 814
Mitsui Engineering &
Shipbuilding Co., Ltd. 778,000 809
Nissan Chemical Industries, Ltd. 176,000 792
Ebara Corp. 277,000 792
Coca-Cola West Japan Co. Ltd. 47,100 784
Wacoal Corp. 106,000 771
Tokyo Style Co. 91,000 765
Okumura Corp. 239,000 762
Nishimatsu Construction Co. 267,000 752
Nippon Sheet Glass Co., Ltd. 364,000 748
Aderans Co. Ltd. 40,100 735
Sapparo Breweries Ltd. 287,000 717
Net One Systems Co., Ltd. 176 716
Nippon Kayaku Co., Ltd. 170,000 716
Kokuyo Co., Ltd. 93,500 711
Hankyu Department Stores, Inc. 129,000 706
Katokichi Co., Ltd. 46,900 689
Koyo Seiko Co., Ltd. 117,000 677
Nippon Sanso Corp. 241,000 675
Mitsubishi Logistics Corp. 116,000 660
Teikoku Oil Co., Ltd. 230,000 660
Amada Co., Ltd. 278,000 655
World Co., Ltd. 39,400 654
Asatsu-DK Inc. 38,700 649
Itochu Techno-Science Corp. 36,000 646
House Foods Industry Corp. 69,700 633
* Sega Corp. 114,200 632
Nisshinbo Industries, Inc. 146,000 626
Autobacs Seven Co., Ltd. 30,300 603
Sumitomo Bakelite Co. Ltd. 164,000 580
Ariake Japan Co., Ltd. 21,340 578
Mitsumi Electric Co., Ltd. 76,200 578
Namco Ltd. 41,200 577
Aeon Credit Service Co. Ltd. 24,130 576
Sumitomo Osaka
Cement Co., Ltd. 406,000 562
Mitsubishi Gas Chemical Co. 388,000 560
TIS Inc. 40,500 554
* Dai-Nippon Screen
Manufacturing Co., Ltd. 156,000 541
Komori Corp. 66,000 532
Sanden Corp. 119,000 496
32
================================================================================
MARKET
VALUE*
SHARES (000)
================================================================================
Kinden Corp. 157,000 $ 491
Nippon Comsys Corp. 133,000 481
* Kanebo Ltd. 463,000 474
Sumitomo Forestry Co. 130,000 471
Bellsystem24, Inc. 3,640 467
* Sumitomo Heavy Industries Ltd. 568,000 462
Tokyo Broadcasting
System, Inc. 39,000 457
Hitachi Software
Engineering Co., Ltd. 29,400 451
* Seiyu Ltd. 195,000 435
Toda Corp. 207,000 403
Takuma Co., Ltd. 77,000 390
* Ishihara Sangyo Kaisha Ltd. 297,000 386
Kaken Pharmaceutical Co. 92,000 386
Hitachi Cable Ltd. 189,000 374
Amano Corp. 75,000 367
Fuji Soft ABC Inc. 33,700 356
Paris Miki Inc. 29,200 351
Capcom Co., Ltd. 43,500 347
* Anritsu Corp. 105,000 342
* Hitachi Zosen Corp. 505,000 318
Union Tool Co. 11,200 311
* Snow Brand Milk Products Co. 135,500 307
* Daiei, Inc. 270,000 290
Noritake Co., Ltd. 115,000 286
Fuji Machine
Manufacturing Co., Ltd. 42,400 284
Mori Seiki Co. 64,500 270
Daifuku Co., Ltd. 101,000 269
Saizeriya Co., Ltd. 33,050 258
* Mitsubishi Paper Mills Ltd. 232,000 245
Fujitsu Support & Service Inc. 22,900 226
Nippon System
Development Co., Ltd. 22,500 222
* Sanrio Co., Ltd. 51,200 214
Kyowa Exeo Corp. 93,000 200
Avex Inc. 22,900 180
-----------------------
1,209,581
-----------------------
NEW ZEALAND (0.8%)
Telecom Corp. of
New Zealand Ltd. 2,307,367 6,182
Sky City Entertainment
Group Ltd. 245,389 1,139
Carter Holt Harvey Ltd. 1,066,374 972
Fletcher Building Ltd. 479,715 899
Contact Energy Ltd. 344,538 838
Auckland International
Airport Ltd. 287,896 834
Fisher & Paykel
Healthcare Corp. Ltd. 90,818 546
The Warehouse Group Ltd. 166,623 522
================================================================================
MARKET
VALUE*
SHARES (000)
================================================================================
Fisher & Paykel Appliances
Holdings Ltd. 68,704 $ 411
Independent Newspapers Ltd. 168,679 391
Tower Ltd. 184,139 230
* Fletcher Challenge
Forests Ltd. Pfd. 395,467 223
* Fletcher Challenge
Forests Ltd. 245,070 137
-----------------------
13,324
-----------------------
SINGAPORE (2.9%)
United Overseas Bank Ltd. 1,425,567 8,350
DBS Group Holdings Ltd. 1,339,161 6,562
Oversea-Chinese
Banking Corp., Ltd. 1,169,510 6,224
Singapore
Telecommunications Ltd. 7,527,612 6,147
Singapore Press Holdings Ltd. 440,455 4,093
Singapore Airlines Ltd. 674,962 3,592
Venture Corporation Ltd. 246,000 2,050
Keppel Corp., Ltd. 647,750 1,627
Singapore Technologies
Engineering Ltd. 1,563,407 1,409
City Developments Ltd. 540,412 1,029
Fraser & Neave Ltd. 223,000 1,005
Sembcorp Industries Ltd. 1,103,419 733
Capitaland Ltd. 1,249,300 725
* Neptune Orient Lines Ltd. 992,000 682
Singapore Exchange Ltd. 791,000 543
* Chartered Semiconductor
Manufacturing Ltd. 1,202,000 467
Creative Technology Ltd. 64,150 408
Sembcorp Logistics Ltd. 359,000 362
United Overseas Land Ltd. 339,500 331
SembCorp Marine Ltd. 590,000 314
Singapore Land Ltd. 161,000 305
Overseas Union Enterprise Ltd. 92,000 295
Keppel Land Ltd. 436,000 268
Haw Par Brothers
International Ltd. 143,193 263
* ST Assembly Test Services Ltd. 337,000 239
Cycle & Carriage Ltd. 97,200 225
Allgreen Properties Ltd. 493,000 223
Parkway Holdings Ltd. 550,640 219
SMRT Corp. Ltd. 705,000 204
* Datacraft Asia Ltd. 325,000 172
Wing Tai Holdings Ltd. 436,000 117
Hotel Properties Ltd. 226,000 116
GES International Ltd. 501,800 78
Guocoland Ltd. 165,000 64
-----------------------
49,441
-----------------------
- --------------------------------------------------------------------------------
TOTAL COMMON STOCKS
(Cost $2,561,069) 1,699,731
================================================================================
33
================================================================================
FACE MARKET
AMOUNT VALUE*
PACIFIC STOCK INDEX FUND (000) (000)
================================================================================
TEMPORARY CASH INVESTMENTS (9.5%)(1)
- --------------------------------------------------------------------------------
Federal National Mortgage Assn.
(2) 1.168%, 7/2/2003 $ 1,500 $ 1,497
Repurchase Agreements
Collateralized by U.S. Government
Obligations in a Pooled
Cash Account
1.32%, 5/1/2003 20,608 20,608
1.32%, 5/1/2003--Note F 141,501 141,501
- --------------------------------------------------------------------------------
TOTAL TEMPORARY CASH INVESTMENTS
(Cost $163,606) 163,606
- --------------------------------------------------------------------------------
TOTAL INVESTMENTS (108.3%)
(Cost $2,724,675) 1,863,337
- --------------------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES (-8.3%)
- --------------------------------------------------------------------------------
Other Assets--Note B 12,372
Security Lending Collateral Payable to Brokers--Note F (141,501)
Other Liabilities (14,001)
-----------------------
(143,130)
-----------------------
- --------------------------------------------------------------------------------
NET ASSETS (100%) $1,720,207
================================================================================
*See Note A in Notes to Financial Statements.
*Non-income-producing security.
(1)The fund invests a portion of its cash reserves in equity markets through the
use of index futures contracts. After giving effect to futures investments, the
fund's effective common stock and temporary cash investment positions represent
100.0% and 8.3%, respectively, of net assets. See Note D in Notes to Financial
Statements.
(2)Security segregated as initial margin for open futures contracts.
================================================================================
AMOUNT
(000)
- --------------------------------------------------------------------------------
AT APRIL 30, 2003, NET ASSETS CONSISTED OF:
- --------------------------------------------------------------------------------
Paid-in Capital $2,752,536
Undistributed Net Investment Income 8,427
Accumulated Net Realized Losses (179,348)
Unrealized Appreciation (Depreciation)
Investment Securities (861,338)
Futures Contracts 108
Foreign Currencies and
Forward Currency Contracts (178)
- --------------------------------------------------------------------------------
NET ASSETS $1,720,207
================================================================================
Investor Shares--Net Assets
Applicable to 253,994,810 outstanding $.001
par value shares of beneficial interest
(unlimited authorization) $1,421,421
- --------------------------------------------------------------------------------
NET ASSET VALUE PER SHARE-- INVESTOR SHARES $5.60
================================================================================
Admiral Shares--Net Assets
Applicable to 2,955,207 outstanding $.001
par value shares of beneficial interest
(unlimited authorization) $108,210
- --------------------------------------------------------------------------------
NET ASSET VALUE PER SHARE-- ADMIRAL SHARES $36.62
================================================================================
Institutional Shares--Net Assets
Applicable to 34,030,028 outstanding $.001
par value shares of beneficial interest
(unlimited authorization) $190,576
- --------------------------------------------------------------------------------
NET ASSET VALUE PER SHARE-- INSTITUTIONAL SHARES $5.60
================================================================================
See Note D in Notes to Financial Statements for the tax-basis components of net
assets.
34
================================================================================
MARKET
VALUE*
EMERGING MARKETS STOCK INDEX FUND SHARES (000)
================================================================================
COMMON STOCKS (92.9%)(1)
- --------------------------------------------------------------------------------
ARGENTINA (0.6%)
* Petrobas Energia
Participaciones SA 2,062,560 $ 1,513
* Telecom Argentina STET-
France Telecom SA 1,008,685 1,124
* Tenaris SA 473,655 1,103
* Siderar SA Class A 216,207 625
* Molinos Rio de la Plata SA 239,696 400
* BBVA Banco Frances SA 199,870 367
* Tenaris SA ADR 14,634 344
* Transportadora de Gas Sur SA 554,855 325
* Irsa Inversiones y
Representaciones SA 298,972 285
* Solvay Indupa S.A.I.C. 362,538 220
* Cresud SA 210,263 174
* Perez Companc SA ADR 20,000 148
-----------------------
6,628
-----------------------
BRAZIL (10.0%)
Petroleo Brasileiro SA Pfd. 867,189 14,969
Companhia de Bebidas
das Americas Pfd. 54,549,680 10,948
Petroleo Brasileiro SA 500,462 9,385
Companhia Vale do
Rio Doce Pfd. Class A 326,915 8,770
Banco Itau Holding
Financeira SA PFD 112,663,694 7,537
Banco Bradesco SA Pfd. 1,600,883,915 6,653
* Cia Vale do Rio Doce (CVRD) 230,700 6,493
Tele Norte Leste
Participacoes SA Pfd. 559,651,075 6,101
Brasil Telecom
Participacoes SA Pfd. 520,328,750 3,735
Unibanco-Uniao de
Bancos Brasileiros SA 72,638,308 2,656
Empresa Brasileira de
Aeronautica SA Pfd. 646,991 2,254
Companhia Energetica de
Minas Gerais Pfd. 209,175,023 2,240
Aracruz Celulose SA Pfd.
B Shares 1,040,923 2,219
* Centrais Electricas
Brasileiras SA 261,932,568 2,006
Gerdau SA 117,705,500 1,453
* Telesp Celular
Participacoes SA Pfd. 936,266,092 1,444
* Centrais Electricas
Brasileiras SA Pfd.
B Shares 148,289,776 1,277
Companhia Siderurgica
Nacional SA 64,042,381 1,276
================================================================================
MARKET
VALUE*
SHARES (000)
================================================================================
Souza Cruz SA 189,393 $ 1,179
Companhia Brasileira
de Distribuicao Grupo
Pao de Acucar Pfd. 71,221,119 1,086
* Tele Centro Oeste Celular
Participacoes SA Pfd. 535,079,437 1,020
Votorantim Celulose e
Papel SA Pfd. 24,838,876 940
* Usiminas-Usinas
Siderurgicas de Minas
Gerais SA Pfd. Class A 232,981 880
Tele Norte Leste
Participacoes SA 105,214,585 828
* Embratel Participacoes
SA Pfd. 467,555,318 746
* Companhia Paranaense
de Energia-COPEL 226,381,532 739
Brasil Telecom
Participacoes SA 132,073,538 728
Companhia de Saneamento
Basico do Estado de
Sao Paulo 18,759,500 665
Telemig Celular
Participacoes SA Pfd. 492,328,347 466
Companhia de Tecidos
Norte de Minas Pfd. 6,712,568 456
Tele Celular Sul
Participacoes SA Pfd. 500,847,400 429
Tractebel Energia SA 217,653,794 415
Tele Nordeste Celular
Participacoes SA Pfd. 492,083,342 413
Sadia SA Pfd. 866,438 378
Duratex SA Pfd. 14,022,556 277
* Embratel Participacoes SA 126,140,509 227
Braskem SA Pfd. A 1,735,756 202
* Companhia Brasileira de
Petroleo Ipiranga Pfd. 52,247,802 156
Electropaulo
Metropolitana SA 13,996,064 139
-----------------------
103,785
-----------------------
CHILE (0.5%)
* Compania de
Telecomunicaciones
de Chile SA 500,000 1,429
Compania de Petroleos
de Chile SA 170,000 755
* Empresa Nacional de
Electricidad SA 1,920,000 570
Empresa Nacional de
Telecomunicaciones SA 67,000 371
* Enersis SA 3,900,000 348
Distribucion y Servicio D&S SA 490,000 344
35
================================================================================
MARKET
VALUE*
EMERGING MARKETS STOCK INDEX FUND SHARES (000)
================================================================================
* Banco Santander Chile SA 14,000,000 $ 292
Sociedad Quimica y
Minera de Chile SA 103,000 270
Compania Cervecerias
Unidas SA 79,930 267
Banco de Chile 7,700,000 255
Empresas CMPC SA 20,000 213
S.A.C.I. Falabella, SA 180,000 170
Embotelladora Andina SA
Pfd. Class B 66,460 90
Embotelladora Andina SA 66,000 89
Masisa SA 315,000 83
Empresas Iansa SA 1,663,640 62
Vina Concha y Toro SA 76,000 59
* Compania Acero del
Pacifico SA (CAP) 43,600 56
SM-Chile SA 970,000 38
Cristalerias de Chile 1,000 8
-----------------------
5,769
-----------------------
CHINA (7.5%)
China Mobile (Hong Kong) Ltd. 11,174,500 22,423
PetroChina Co. Ltd. 34,072,000 7,776
CNOOC Ltd. 3,984,500 5,237
China Petroleum &
Chemical Corp. 24,378,000 4,814
CITIC Pacific Ltd. 2,443,000 4,166
* China Telecom Corp. Ltd. 18,489,000 3,532
Huaneng Power
International, Inc. H Share 3,472,000 3,294
Legend Group Ltd. 7,596,000 2,143
Cosco Pacific Ltd. 2,370,000 2,036
China Merchants Holdings
International Co. Ltd. 2,474,000 1,951
China Resources Enterprise Ltd. 2,240,659 1,781
Denway Motors Ltd. 4,582,000 1,513
Zhejiang Expressway Co., Ltd. 3,422,000 1,316
Shanghai Industrial Holding Ltd. 872,000 1,045
Zhejiang Southeast
Electric Power Co., Ltd. 1,573,200 1,035
Brilliance China Automotive
Holdings Ltd. 4,178,000 975
* Beijing Datang Power
Generation Co. Ltd. 2,416,000 953
Yanzhou Coal Mining Co.
Ltd. H Share 2,468,000 902
Jiangsu Expressway Co.
Ltd. H Share 2,590,000 872
* Sinopec Shanghai
Petrochemical Co. Ltd. 5,438,000 844
Aluminum Corp. of China Ltd. 4,702,000 820
* Guangdong Electric Power
Development Co., Ltd. 1,394,100 813
================================================================================
MARKET
VALUE*
SHARES (000)
================================================================================
China Shipping
Development Co. 3,092,000 $ 793
Huadian Power
International Corp. Ltd. 3,448,000 747
China Travel International 4,680,000 576
The Guangshen
Railway Co., Ltd. 3,322,000 575
China Southern Airlines
Company Ltd. 2,420,000 518
China Pharmaceutical
Group Ltd. 1,668,000 465
TCL International
Holdings Ltd. 2,404,000 450
Beijing Enterprises
Holdings Ltd. 610,000 450
China Overseas Land &
Investment Ltd. 5,018,000 405
China Everbright Ltd. 1,730,000 388
Sinopec Yizheng
Chemical Fibre Co., Ltd. 3,142,000 355
China Eastern Airlines
Corp. Ltd. 3,294,000 329
Qingling Motors Co.
Ltd. H Share 2,464,000 316
Digital China Holdings Ltd. 1,071,000 282
Shenzhen Investment Ltd. 2,703,000 274
* Top Glory International
Holdings Ltd. 3,828,000 211
Eastern Communications
Co. Ltd. 340,000 210
Jiangxi Copper Co. Ltd. 1,588,000 195
China Resources Land 2,254,000 188
* Founder Holdings Ltd. 566,000 38
-----------------------
78,006
-----------------------
CZECH REPUBLIC (0.7%)
Komercni Banka a.s. 36,408 2,537
Ceske Energeticke Zavody a.s. 503,715 1,879
* Cesky Telecom a.s. 157,383 1,820
Philip Morris CR a.s. 2,402 949
* Unipetrol a.s. 176,302 297
-----------------------
7,482
-----------------------
HUNGARY (1.6%)
OTP Bank Rt. 585,590 6,287
Magyar Tavkozlesi Rt. 1,072,475 4,226
MOL Magyar Olaj-es
Gazipari Rt. 144,054 3,760
Richter Gedeon Rt. 32,839 2,385
Raba Rt. 13,575 66
* Pannonplast Rt. 8,390 64
* Zalakeramia Rt. 6,430 44
-----------------------
16,832
-----------------------
36
================================================================================
MARKET
VALUE*
SHARES (000)
================================================================================
INDIA (3.4%)
Reliance Industries Ltd. 928,190 $ 5,389
Infosys Technologies Ltd. 68,230 4,022
Hindustan Lever Ltd. 1,247,080 3,802
Housing Development
Finance Corp. Ltd. 267,880 1,930
* ICICI Bank Ltd. 728,840 1,869
Ranbaxy Laboratories Ltd. 120,880 1,723
Dr. Reddy's Laboratories Ltd. 91,350 1,685
ITC Ltd. 109,210 1,573
HDFC Bank Ltd. 250,970 1,306
Satyam Computer
Services Ltd. 358,480 1,154
Wipro Ltd. 55,480 1,016
Larsen & Toubro Ltd. 176,100 746
Hindalco Industries Ltd. 57,000 743
Hindustan Petroleum
Corporation Ltd. 104,400 615
Mahanagar Telephone
Nigam Ltd. 303,450 586
* Tata Engineering and
Locomotive Co. Ltd. 160,030 510
Zee Telefilms Ltd. 304,950 495
Hero Honda Motors Ltd. 110,850 476
Bharat Petroleum Corp. Ltd. 93,280 455
Grasim Industries Ltd. 55,070 420
Bajaj Auto Ltd. 36,920 377
Bharat Heavy Electricals Ltd. 70,960 344
Tata Iron and Steel
Company Ltd. 122,560 342
Gujarat Ambuja Cements Ltd. 94,970 334
BSES Ltd. 64,970 306
Cipla Ltd. 22,350 298
Videsh Sanchar Nigam Ltd. 180,600 288
Nestle India Ltd. 21,880 245
Associated Cement
Companies Ltd. 78,300 216
Tata Power Company Ltd. 76,340 193
Sun Pharmaceutical
Industries Ltd. 31,030 182
Digital Globalsoft Ltd. 15,880 176
GlaxoSmithKline
Pharmaceuticals (India) Ltd. 22,200 152
GTL Ltd. 118,340 145
Mahindra & Mahindra Ltd. 59,570 140
Tata Tea Ltd. 33,000 140
Bank of Baroda 66,750 117
* Himachal Futuristic
Communications, Ltd. 319,820 114
NIIT Ltd. 37,970 99
* Silverline Technologies Ltd. 683,270 87
Dabur India Ltd. 97,210 76
================================================================================
MARKET
VALUE*
SHARES (000)
================================================================================
ABB (India) Ltd. 6,770 $ 44
Indian Hotels Company Ltd. 9,470 34
Punjab Tractors Ltd. 12,620 34
Asian Paints (India) Ltd. 4,650 33
Castrol (India) Ltd. 6,580 26
Industrial Development
Bank of India Ltd. 60,910 23
EIH Ltd. 6,750 22
-----------------------
35,102
-----------------------
INDONESIA (1.5%)
PT Telekomunikasi
Indonesia Tbk 11,857,584 5,605
PT Hanjaya Mandala
Sampoerna Tbk 5,967,500 2,460
* PT Astra International Tbk 4,732,100 1,650
PT Gudang Garam Tbk 1,181,500 1,178
PT Indonesian Satellite
Corp. Tbk 1,125,000 1,128
PT Indofood Sukses
Makmur Tbk 12,370,252 1,034
* PT Bank Indonesia Tbk 16,775,040 455
PT Ramayana Lestari
Sentosa Tbk 1,142,760 346
PT Semen Gresik Tbk 369,232 328
PT Bimantara Citra Tbk 727,752 229
PT Tempo Scan Pacific Tbk 366,956 226
* PT Kalbe Farma Tbk 4,841,848 223
* PT Matahari Putra Prima Tbk 3,502,316 212
PT Makindo Tbk 928,600 134
PT Bhakti Investama Tbk 3,199,500 131
PT Aneka Tambang Tbk 1,474,315 123
-----------------------
15,462
-----------------------
ISRAEL (5.0%)
Teva Pharmaceutical
Industries Ltd. 549,590 26,229
* Check Point Software
Technologies Ltd. 418,190 6,578
* Bank Hapoalim Ltd. 1,803,563 3,120
Bezeq Israeli
Telecommunication
Corp., Ltd. 1,747,790 1,990
* Bank Leumi Le-Israel 1,368,809 1,676
Israel Chemicals Ltd. 1,164,367 1,380
Elbit Systems Ltd. 57,204 1,030
* Orbotech Ltd. 74,075 1,018
* IDB Development Corp. Ltd. 55,452 992
Makhteshim-Agan
Industries Ltd. 400,346 870
* United Mizrahi Bank Ltd. 254,796 673
Discount Investment Corp. Ltd. 30,533 585
Migdal Insurance Holdings Ltd. 494,228 543
* Israel Discount Bank Ltd. 821,336 538
37
================================================================================
MARKET
VALUE*
EMERGING MARKETS STOCK INDEX FUND SHARES (000)
================================================================================
* Clal Industries Ltd. 153,566 $ 499
Clal Insurance Enterprise
Holdings Ltd. 31,897 473
* M-Systems Flash Disk
Pioneers Ltd. 55,500 461
Super Sol Ltd. 221,787 429
* Koor Industries Ltd. 24,356 394
The Israel Corp. Ltd.-ILS 1 Par 3,351 282
* ECI Telecom Ltd. 126,465 266
Elite Industries Ltd. -ILS 5 Par 9,285 259
* Audiocodes Ltd. 69,000 245
Blue Square-Israel Ltd. 24,020 229
Property & Building Corp. 3,434 204
* Scitex Corp., Ltd. 107,600 187
Azorim Investment
Development &
Construction Ltd. 35,750 187
* Formula Systems (1985) Ltd. 15,480 166
* Matav-Cable Systems
Media Ltd. 20,369 145
* Lumenis Ltd. 71,400 114
-----------------------
51,762
-----------------------
MEXICO (9.8%)
Telefonos de Mexico SA
Series L 11,900,759 18,038
Cemex SA CPO 2,704,147 12,257
America Movil SA de
CV Series L 11,387,798 9,516
Wal-Mart de Mexico SA 3,166,142 8,768
Telefonos de Mexico SA
Series A 5,555,377 8,501
* Grupo Financiero BBVA
Bancomer, SA de CV
Class B 8,269,956 7,192
* Grupo Televisa SA CPO 4,771,022 7,185
Fomento Economico
Mexica UBD 1,483,454 5,607
America Movil SA de CV
Series A 5,555,377 4,642
Wal-Mart de Mexico
SA de CV 1,361,790 3,467
Kimberly Clark de Mexico
SA de CV Series A 1,206,632 2,964
Grupo Modelo SA de
CV Series C 1,255,481 2,805
* Grupo Carso SA de
CV Series A1 525,196 1,498
Coca-Cola Femsa SA de CV 657,322 1,405
* Tenaris SA 450,275 1,124
* Corporacion Interamericana de
Entretenimiento SA de CV 540,193 955
Alfa SA de CV Series A 534,831 912
================================================================================
MARKET
VALUE*
SHARES (000)
================================================================================
* Grupo Bimbo SA 575,309 $ 907
TV Azteca SA CPO 2,353,400 835
Grupo Aeroportuario del
Sureste SA 442,800 593
* Consorcio ARA, SA de CV 315,600 582
Grupo Continental SA 354,622 545
Grupo Elektra SA 193,488 522
Controladora Comercial
Mexicana SA de CV (Units) 821,871 499
* Grupo Mexico SA de CV 393,581 493
Industrias Penoles SA Series CP 249,739 476
Vitro SA 388,060 271
-----------------------
102,559
-----------------------
PERU (0.1%)
Compania de Minas
Buenaventura S.A.u. 46,137 618
Southern Peru Copper Corp. 17,550 274
Credicorp Ltd. 24,041 230
Minsur SA 139,940 167
Union de Cervecerias Backus y
Johnston S.A.A 361,732 149
Cementos Lima SA 1,017 19
-----------------------
1,457
-----------------------
PHILIPPINES (0.6%)
Bank of Philippine Islands 1,557,800 1,084
San Miguel Corp. Class B 737,313 927
Ayala Land, Inc. 9,076,071 865
* Philippine Long Distance
Telephone Co. 102,296 741
SM Prime Holdings, Inc. 7,176,120 670
* Metropolitan Bank & Trust Co. 1,173,985 649
Ayala Corp. 6,719,300 512
* Equitable PCI Bank, Inc. 545,400 249
Petron Corp. 4,364,146 171
* ABS-CBN Broadcasting Corp. 615,200 141
* Manila Electric Co. 705,693 138
* Megaworld Corp. 7,030,000 78
* Philippine National Bank Corp. 157,064 73
* Filinvest Land, Inc. 3,891,518 64
Universal Robina Corp. 774,410 59
-----------------------
6,421
-----------------------
POLAND (1.5%)
Bank Polska Kasa Opieki
Grupa Pekao SA 160,697 3,609
* Telekomunikacja Polska SA 1,030,308 3,478
Polski Koncern Naftowy SA 710,934 3,352
Bank Przemyslowo Handlowy
PBK SA 20,683 1,223
* KGHM Polska Miedz SA 268,819 816
* Prokom Software SA 16,978 549
* Agora SA 49,216 528
Bank Rozwoju Eksportu SA 26,979 490
38
================================================================================
MARKET
VALUE*
SHARES (000)
================================================================================
Frantschach Swiecei SA 29,834 $ 404
Orbis SA 63,650 252
* Computerland SA 9,454 211
* Budimex SA 22,300 148
* Elektrim Spolka Akcyjna SA 162,885 125
Przedsiebiorstwo
Farmaceutyczne JELFA SA 10,791 121
* Softbank SA 16,390 89
-----------------------
15,395
-----------------------
SOUTH AFRICA (15.4%)
Anglo American PLC 3,169,069 45,905
Sasol Ltd. 1,287,473 13,959
Old Mutual PLC 8,432,252 12,377
Gold Fields Ltd. 856,704 8,701
Standard Bank Group Ltd. 2,118,474 8,501
Anglogold Ltd. 256,364 7,311
Sappi Ltd. 488,175 6,031
Firstrand Ltd. 6,162,724 6,013
Sanlam Ltd. 6,192,590 5,132
Anglo American Platinum Corp. 172,974 4,850
Nedcor Ltd. 317,447 4,275
Impala Platinum Holdings Ltd. 83,629 4,138
Bidvest Group Ltd. 722,208 3,930
Tiger Brands Ltd. 399,590 3,506
Barloworld Ltd. 372,115 2,549
Imperial Holdings Ltd. 370,194 2,518
Liberty Group Ltd. 312,806 2,021
Nampak Ltd. 1,200,633 1,870
* MTN Group Ltd. 1,096,378 1,838
Naspers Ltd. 552,860 1,652
Woolworths Holdings Ltd. 2,164,746 1,547
Alexander Forbes Ltd. 704,500 967
Pick'n Pay Stores Ltd. 508,982 913
Metro Cash & Carry Ltd. 3,790,779 886
New Africa Capital Ltd. 1,226,125 885
Iscor Ltd. 438,165 882
JD Group Ltd. 268,672 875
Truworths International Ltd. 1,004,597 870
Shoprite Holdings Ltd. 1,127,857 868
Investec Ltd. 70,854 843
African Bank Investments Ltd. 1,061,807 803
Foschini Ltd. 484,210 789
* Dimension Data Holdings PLC 2,620,905 648
Coronation Holdings Ltd. 82,224 567
Tongaat-Hulett Group Ltd. 123,145 523
* Comparex Holdings Ltd. 311,720 257
* Datatec Ltd. 230,080 139
-----------------------
160,339
-----------------------
SOUTH KOREA (18.2%)(1)
Samsung Electronics Co., Ltd. 192,170 48,240
Kookmin Bank 569,652 15,988
POSCO 110,660 9,336
================================================================================
MARKET
VALUE*
SHARES (000)
================================================================================
Korea Electric Power Corp. 512,500 $ 8,626
SK Telecom Co., Ltd. 60,450 8,408
Hyundai Motor Co. Ltd. 309,960 7,322
LG Electronics Inc. 198,601 6,849
KT Corporation 166,300 6,830
Samsung Electronics Co.,
Ltd. Pfd. 46,830 5,743
Samsung SDI Co. Ltd. 74,950 4,688
POSCO ADR 220,000 4,521
Shinhan Financial Group Ltd. 382,500 3,778
Samsung Fire & Marine
Insurance Co. 74,050 3,657
Samsung Electro-Mechanics Co. 122,180 3,605
LG Chem Ltd. 104,812 3,476
* Korea Telecom Freetel 124,183 2,755
KT & G Corp. 171,500 2,625
Shinsegae Co. Ltd. 20,854 2,489
Hyundai Mobis 121,100 2,407
* Samsung Securities Co. Ltd. 109,930 2,262
* Hyundai Heavy Industries Co., Inc. 89,820 1,748
* LG Investment &
Securities Co. Ltd. 179,620 1,685
Samsung Corp. 309,420 1,627
Samsung Heavy
Industries Co. Ltd. 343,360 1,520
Kia Motors 214,990 1,495
S-Oil Corp. 86,440 1,409
CJ Corp. 35,370 1,208
* Daishin Securities Co. 85,430 1,146
Cheil Industrial, Inc. 86,750 1,096
LG Engineering &
Construction Co., Ltd. 72,660 1,053
Hana Bank 113,918 980
Daelim Industrial Co. 55,830 910
* Daum Communications Corp. 22,271 907
* Hyundai Securities Co. 217,070 849
* Korea Exchange Bank 274,380 797
S1 Corp. 41,410 770
Korean Air Co. Ltd. 79,018 751
Hite Brewery Co., Ltd. 14,740 740
Amorepacific Corp. 8,220 727
Kumkang Korea
Chemical Co., Ltd. 8,510 725
* NCsoft Corp. 7,261 633
Humax Co., Ltd. 52,731 631
Cheil Communications Inc. 6,770 588
* Daewoo Securities Co., Ltd. 158,750 577
Nong Shim Co. Ltd. 7,560 563
Hanjin Shipping Co., Ltd. 79,610 550
LG Household & Health Care Ltd. 22,842 541
Honam Petrochemical Corp. 20,430 514
Hankook Tire Co. Ltd. 172,560 496
39
================================================================================
MARKET
VALUE*
EMERGING MARKETS STOCK INDEX FUND SHARES (000)
================================================================================
Hyundai Department
Store Co., Ltd. 28,668 $ 470
Dae Duck Electronics Co. 67,043 467
Yuhan Corp. 10,894 442
Hyosung Corp. 44,943 420
LG Cable Ltd. 42,560 413
* Kookmin Credit Card Co., Ltd. 36,262 404
* Dongwon Securities Co. 96,200 404
* Shinhan Good Morning
Securities Co., Ltd. 137,658 401
Samsung Fine Chemicals Co., Ltd. 31,090 397
* Trigem Computer, Inc. 91,330 383
* Asiana Airlines 198,712 370
Poongsan Corp. 41,350 309
* Hanwha Chemical Corp. 96,180 298
* Anam Semiconductor Inc. 104,550 288
Hansol Paper Co. Ltd. 65,190 282
Dong-A Pharmaceutical Co. Ltd. 15,059 265
Hankuk Electric Glass Co., Ltd. 5,920 257
* Serome Technology Inc. 67,169 226
* SK Global Co., Ltd. 110,688 219
Korea Zinc Co., Ltd. 13,110 211
Hotel Shilla Co. 54,020 207
* Korea Technology &
Banking Network Corp. 111,670 180
Hanjin Heavy Industries Co. Ltd. 65,940 170
* Hyundai Merchant
Marine Co., Ltd. 106,320 167
Green Cross Corp. 6,020 144
* Handysoft Corp. 51,809 137
* Doosan Corp. 19,600 134
* Haansoft Inc. 138,078 118
* Daou Technology Inc. 80,780 101
* Hyundai Department
Store H&S Co. Ltd. 8,402 99
* Korea Information &
Communications Co. Ltd. 10,127 44
-----------------------
189,268
-----------------------
TAIWAN (12.7%)(1)
* Taiwan Semiconductor
Manufacturing Co., Ltd. 16,845,900 23,099
* United Microelectronics Corp. 12,799,300 7,343
Formosa Plastic Corp. 5,251,800 6,478
Nan Ya Plastic Corp. 6,982,790 6,049
Cathay Financial Holding Co. 4,817,980 5,376
Hon Hai Precision
Industry Co., Ltd. 1,432,050 4,478
China Steel Corp. 7,867,180 4,401
* Mega Financial Holding Co. Ltd. 8,773,247 3,901
* China Development Financial
Holding Corp. 9,592,508 3,343
Formosa Chemicals & Fibre Corp. 3,361,260 3,240
================================================================================
MARKET
VALUE*
EMERGING MARKETS STOCK INDEX FUND SHARES (000)
================================================================================
Asustek Computer Inc. 1,508,000 $ 2,942
* Chinatrust Financial Holding 3,307,000 2,580
Fubon Financial Holding Co., Ltd. 3,610,000 2,465
Acer Inc. 2,550,935 2,320
Quanta Computer Inc. 1,222,800 2,140
Hau Nan Financial
Holdings Co., Ltd. 3,599,832 2,045
Compal Electronics Inc. 1,754,200 1,892
Taiwan Cellular Corp. 2,734,000 1,765
* First Financial Holding Co., Ltd. 2,990,000 1,715
* Advanced Semiconductor
Engineering Inc. 3,045,000 1,572
* Pou Chen Corp. 1,988,402 1,569
* Taishin Financial Holdings 3,427,000 1,553
China Motor Co., Ltd. 896,575 1,427
Yulon Motor Co., Ltd. 1,321,240 1,380
Lite-On Technology Corp. 1,524,267 1,355
BENQ Corp. 1,282,640 1,303
Delta Electronics Inc. 1,160,550 1,282
* SinoPac Holdings 4,092,491 1,274
Chang Hwa Commercial Bank 3,130,880 1,212
Uni-President Enterprises Co. 4,121,590 1,171
* AU Optronics Corp. 2,271,000 1,153
Inventec Co., Ltd. 1,905,300 1,104
International Bank of Taipei 2,635,735 1,081
Via Technologies Inc. 923,140 1,059
Far Eastern Textile Ltd. 3,378,400 989
Realtek Semiconductor Corp. 521,600 988
CMC Magnetics Corp. 2,044,200 962
* Winbond Electronics Corp. 2,700,000 922
* Walsin Lihwa Corp. 4,153,000 870
Micro-Star International Co., Ltd. 489,500 864
Synnex Technology
International Corp. 672,800 791
Ritek Corp. 1,850,500 770
Cheng Shin Rubber
Industry Co., Ltd. 651,640 742
President Chain Store Corp. 562,189 711
* Tatung Co., Ltd. 4,379,000 697
Taiwan Glass Industrial Corp. 1,157,000 694
* Siliconware Precision
Industries Co. 1,416,000 670
* Teco Electric &
Machinery Co., Ltd 2,361,000 630
* Macronix International Co., Ltd. 3,580,600 616
Gigabyte Technology Co., Ltd. 413,000 616
Evergreen Marine Corp. 995,200 608
Premier Image Technology Corp. 445,000 581
* Yang Ming Marine Transport 1,326,000 557
Ambit Microsystems Corp. 185,430 529
Nien Hsing Textile Co. Ltd. 564,000 526
* Taiwan Cement Corp. 1,831,080 525
40
================================================================================
MARKET
VALUE*
SHARES (000)
================================================================================
D-Link Corp. 611,800 $ 521
* Accton Technology Corp. 763,475 515
* Yageo Corp. 2,558,520 492
Formosa Taffeta Co., Ltd. 1,329,640 473
Asia Cement Corp. 1,489,000 472
Kinpo Electronics, Inc. 1,092,460 470
* Systex Corp. 856,200 457
China Airlines 1,213,245 409
Sampo Corp. 1,172,000 361
Phoenixtec Power Co., Ltd. 446,000 343
* Cathay Construction Corp. 1,489,000 333
* Taiwan Styrene Monomer Corp. 506,000 332
Giant Manufacturing Co., Ltd. 314,270 325
Taiwan Secom Corp., Ltd. 413,700 318
* Compeq Manufacturing Co., Ltd. 970,750 308
* Mosel Vitelic Inc. 4,719,000 306
* Pacific Electric Wire &
Cable Co., Ltd. 4,283,600 295
* Arima Computer Corp. 1,025,100 294
Eternal Chemical Co., Ltd. 548,100 269
Continental Engineering Corp. 897,840 259
Shihlin Electric &
Engineering Corp. 578,000 247
* Picvue Electronics, Ltd. 920,150 198
* Prodisc Technology Inc. 425,730 191
Far Eastern Department
Stores Ltd. 1,022,000 182
* Wus Printed Circuit Co., Ltd. 574,000 181
* Tung Ho Enterprise Corp. 680,400 163
* Microelectronics Technology Inc. 473,100 136
* BES Engineering Corp. 1,593,720 124
* Taiwan Tea Corp. 1,392,000 123
* China Synthetic Rubber Corp. 469,760 119
* Aurora Corp. 321,600 107
-----------------------
132,248
-----------------------
THAILAND (2.2%)
Advanced Information Services
Co. Ltd. (Foreign) 2,142,740 2,249
PTT Public Co., Ltd. (Foreign) 2,023,900 2,219
* Kasikornbank Public
Co. Ltd. (Foreign) 2,605,100 2,203
* Bangkok Bank PLC (Foreign) 1,464,034 2,049
PTT Exploration &
Production PLC (Foreign) 632,736 1,815
Siam Cement PLC (Foreign) 374,790 1,110
BEC World Public Co.
Ltd. (Foreign) 219,023 1,052
Siam Cement PLC (Local) 328,190 926
Shin Corp. Public Co. Ltd. 2,443,000 826
Land and Houses Public Co. Ltd. 4,402,800 791
* Siam Commercial
Bank PLC (Foreign) 979,891 783
================================================================================
MARKET
VALUE*
SHARES (000)
================================================================================
Siam City Cement PLC (Foreign) 149,806 $ 706
* Siam Commercial Bank Cvt. Pfd. 867,444 688
Delta Electronics (Thailand)
Public Co. Ltd. (Foreign) 1,014,050 674
Hana Microelectronics
Public Co. Ltd. (Foreign) 263,600 553
Charoen Pokphand Foods
Public Co., Ltd. (Foreign) 4,869,012 391
Ratchaburi Electricity
Generating Holding
Public Co. Ltd. (Foreign) 694,400 389
* National Finance &
Securities PLC (Foreign) 1,276,630 369
* Bank of Ayudhya PLC (Foreign) 1,482,084 311
Thai Union Frozen Products
Public Co. Ltd. (Foreign) 628,700 308
Bangkok Expressway
PLC (Foreign) 865,000 301
* Bank of Asia Public
Co. Ltd. (Foreign) 2,502,400 290
* TelecomAsia PLC (Foreign) 2,649,988 286
Electricity Generating PLC
(Foreign) 259,048 258
* DBS Thai Danu Bank PLC
(Foreign) 2,006,200 250
National Petrochemical PLC
(Foreign) 171,916 201
Kiatnakin Finance
Public Co. Ltd. (Foreign) 298,900 190
* Industrial Finance Corp. of
Thailand PLC (Foreign) 1,102,508 147
* United Broadcasting Corp.
PLC (Foreign) 394,096 143
Siam Makro Public Co. (Foreign) 165,400 122
* Bangkok Bank PLC (Local) 96,400 118
Electricity Generating
Public Co. Ltd. 54,500 53
* TelecomAsia Corp.
Public Co. Ltd. (Foreign)
Warrants Exp. 4/3/2010 1,020,789 --
-----------------------
22,771
-----------------------
TURKEY (1.6%)
Akbank TAS 562,079,286 1,992
* Turkiye Is Bankasi
A.S. C Shares 558,536,940 1,721
Tupras-Turkiye Petrol
Rafinerileri A.S. 239,517,016 1,667
* Anadolu Efes Biracilik ve
Malt Sanayii A.S. 59,451,116 1,186
Haci Omer Sabanci
Holding A.S. 461,898,815 1,040
* Turkcell Iletisim Hizmetleri A.S. 154,589,700 928
41
================================================================================
MARKET
VALUE*
EMERGING MARKETS STOCK INDEX FUND SHARES (000)
================================================================================
* KOC Holding A.S. 90,386,500 $ 912
* Yapi ve Kredi Bankasi A.S. 757,064,998 783
* Turkiye Garanti Bankasi A.S. 604,246,421 729
* Eregli Demir ve Celik
Fabrikalari A.S. 53,378,071 644
Migros Turk A.S. 65,469,054 577
Arcelik A.S. 58,815,793 571
* Vestel Elektronik Sanayi ve
Ticaret A.S. 164,892,707 395
* Ford Otomotiv Sanayi A.S. 29,673,385 341
Trakya Cam Sanayii A.S. 116,299,873 282
* Turk Sise ve Cam
Fabrikalari A.S. 231,944,089 270
* Hurriyet Azetecilik ve
Matbaacillik A.S. 108,305,078 246
* Tofas Turk Otomobil
Fabrikasi A.S. 85,876,317 244
* Aygaz A.S. 32,047,503 219
Cimsa Cemento Sanayi ve
Ticaret A.S. 71,772,960 206
* Is Gayrimenkul Yatirim
Ortakligi A.S. 298,017,775 196
Aksa Akrilik Kimya
Sanayii A.S. 17,348,218 194
Alarko Holdings A.S. 11,207,152 177
Ak Enerji Elektrik Uretimi
Otoproduktor Gruba A.S. 35,418,896 171
* Tansas Perakende
Magazacilik Ticaret A.S. 238,238,496 157
* Dogan Yayin Holding A.S. 109,997,996 152
Adana Cimento Sanayii T.A.S. 25,930,604 137
Akcansa Cimento A.S. 42,916,790 119
Netas-Northern Elektrik
Telekomunikasyon A.S. 4,056,924 78
Aksigorta A.S. 24,340,282 73
Kordsa Kord Bezi Sanayi ve
Ticaret A.S. 13,864,936 52
-----------------------
16,459
-----------------------
- --------------------------------------------------------------------------------
TOTAL COMMON STOCKS
(Cost $1,242,727) 967,745
================================================================================
================================================================================
FACE MARKET
AMOUNT VALUE*
(000) (000)
================================================================================
TEMPORARY CASH INVESTMENTS (10.0%)(1)
- --------------------------------------------------------------------------------
Federal Home Loan Bank
(2) 1.17%, 5/9/2003 $ 3,000 $ 2,999
Federal National Mortgage Assn.
(2) 1.16%-1.17%, 5/1/2003 21,000 21,000
Repurchase Agreement
Collateralized by U.S. Government
Obligations in a Pooled
Cash Account
1.32%, 5/1/2003 80,407 80,407
- --------------------------------------------------------------------------------
TOTAL TEMPORARY CASH INVESTMENTS
(Cost $104,406) 104,406
- --------------------------------------------------------------------------------
TOTAL INVESTMENTS (102.9%)
(Cost $1,347,133) 1,072,151
- --------------------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES (-2.9%)
- --------------------------------------------------------------------------------
Receivables for Investment
Securities Sold 29,009
Other Assets--Note B 19,622
Payables for Investment
Securities Purchased (50,890)
Other Liabilities (28,012)
-----------------------
(30,271)
-----------------------
- --------------------------------------------------------------------------------
NET ASSETS (100%) $1,041,880
================================================================================
*See Note A in Notes to Financial Statements.
*Non-income-producing security.
(1)The fund invests a portion of its cash reserves in equity markets through the
use of equity swap contracts. Investments in swap contracts increased the fund's
equity investments in South Korea and Taiwan to 20.6% and 14.1%, respectively.
After giving effect to swap investments, the fund's effective common stock and
temporary cash investment positions represent 96.7% and 6.2%, respectively, of
net assets. See Note D in Notes to Financial Statements.
(2)Securities with an aggregate value of $23,999,000 have been segregated in
connection with open swap contracts.
ADR--American Depositary Receipt.
ILS--Israeli Shekel.
42
================================================================================
AMOUNT
(000)
================================================================================
AT APRIL 30, 2003, NET ASSETS CONSISTED OF:
- --------------------------------------------------------------------------------
Paid-in Capital $1,486,805
Undistributed Net Investment Income 10,278
Accumulated Net Realized Losses (167,256)
Unrealized Appreciation (Depreciation)
Investment Securities (274,982)
Foreign Currencies 253
Swap Contracts (13,218)
- --------------------------------------------------------------------------------
NET ASSETS $1,041,880
================================================================================
Investor Shares--Net Assets
Applicable to 122,565,137 outstanding $.001
par value shares of beneficial interest
(unlimited authorization) $959,409
- --------------------------------------------------------------------------------
NET ASSET VALUE PER SHARE-- INVESTOR SHARES $7.83
================================================================================
Institutional Shares--Net Assets
Applicable to 10,529,135 outstanding $.001
par value shares of beneficial interest
(unlimited authorization) $82,471
- --------------------------------------------------------------------------------
NET ASSET VALUE PER SHARE-- INSTITUTIONAL SHARES $7.83
================================================================================
See Note D in Notes to Financial Statements for the tax-basis components of net
assets.
43
================================================================================
MARKET
VALUE*
TOTAL INTERNATIONAL STOCK INDEX FUND SHARES (000)
================================================================================
INVESTMENT COMPANIES (100.0%)
- --------------------------------------------------------------------------------
Vanguard European Stock Index Fund
Investor Shares 127,440,422 $ 2,128,255
Vanguard Pacific Stock Index Fund
Investor Shares 139,755,875 782,633
Vanguard Emerging Markets Stock Index Fund
Investor Shares 37,504,443 293,660
- --------------------------------------------------------------------------------
TOTAL INVESTMENT COMPANIES
(Cost $4,292,763) 3,204,548
- --------------------------------------------------------------------------------
FACE
AMOUNT
(000)
================================================================================
TEMPORARY CASH INVESTMENT
- --------------------------------------------------------------------------------
Repurchase Agreement
Collateralized by U.S. Government Obligations
in a Pooled Cash Account 1.32%, 5/1/2003
(Cost $1,077) $1,077 1,077
- --------------------------------------------------------------------------------
TOTAL INVESTMENTS (100.0%)
(Cost $4,293,840) 3,205,625
- --------------------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES
- --------------------------------------------------------------------------------
Other Assets 5,104
Liabilities (6,334)
-----------------------
(1,230)
-----------------------
- --------------------------------------------------------------------------------
NET ASSETS (100%)
- --------------------------------------------------------------------------------
Applicable to 411,056,883 outstanding $.001
par value shares of beneficial interest
(unlimited authorization) $3,204,395
- --------------------------------------------------------------------------------
NET ASSET VALUE PER SHARE $7.80
================================================================================
*See Note A in Notes to Financial Statements.
================================================================================
AT APRIL 30, 2003, NET ASSETS CONSISTED OF:
- --------------------------------------------------------------------------------
AMOUNT PER
(000) SHARE
- --------------------------------------------------------------------------------
Paid-in Capital $4,343,356 $10.57
Undistributed Net Investment Income 508 --
Accumulated Net Realized Losses (51,254) (.12)
Unrealized Depreciation (1,088,215) (2.65)
- --------------------------------------------------------------------------------
NET ASSETS $3,204,395 $7.80
================================================================================
See Note D in Notes to Financial Statements for the tax-basis components of net
assets.
44
================================================================================
MARKET
VALUE*
DEVELOPED MARKETS INDEX FUND SHARES (000)
================================================================================
INVESTMENT COMPANIES (100.0%)
- --------------------------------------------------------------------------------
Vanguard European Stock Index Fund
Investor Shares 19,035,894 $317,899
Vanguard Pacific Stock Index Fund
Investor Shares 20,889,727 116,983
- --------------------------------------------------------------------------------
TOTAL INVESTMENT COMPANIES
(Cost $517,926) 434,882
- --------------------------------------------------------------------------------
FACE
AMOUNT
(000)
================================================================================
TEMPORARY CASH INVESTMENT
- --------------------------------------------------------------------------------
Repurchase Agreement
Collateralized by U.S. Government Obligations in a
Pooled Cash Account 1.32%-5/1/2003
(Cost $163) $163 163
- --------------------------------------------------------------------------------
TOTAL INVESTMENTS (100.0%)
(Cost $518,089) 435,045
- --------------------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES
- --------------------------------------------------------------------------------
Other Assets 503
Liabilities (722)
-----------------------
(219)
-----------------------
- --------------------------------------------------------------------------------
NET ASSETS (100%)
================================================================================
Applicable to 75,118,853 outstanding $.001
par value shares of beneficial interest
(unlimited authorization) $434,826
- --------------------------------------------------------------------------------
NET ASSET VALUE PER SHARE $5.79
================================================================================
*See Note A in Notes to Financial Statements.
================================================================================
AT APRIL 30, 2003, NET ASSETS CONSISTED OF:
- --------------------------------------------------------------------------------
AMOUNT PER
(000) SHARE
- --------------------------------------------------------------------------------
Paid-in Capital $522,246 $6.95
Undistributed Net Investment Income 81 --
Accumulated Net Realized Losses (4,457) (.06)
Unrealized Depreciation (83,044) (1.10)
- --------------------------------------------------------------------------------
NET ASSETS $434,826 $5.79
================================================================================
See Note D in Notes to Financial Statements for the tax-basis components of net
assets.
45
================================================================================
MARKET
VALUE*
INSTITUTIONAL DEVELOPED MARKETS INDEX FUND SHARES (000)
================================================================================
INVESTMENT COMPANIES (100.0%)
- --------------------------------------------------------------------------------
Vanguard European Stock Index Fund
Institutional Shares 18,917,393 $316,110
Vanguard Pacific Stock Index Fund
Institutional Shares 20,765,827 116,288
- --------------------------------------------------------------------------------
TOTAL INVESTMENTS (100.0%)
(Cost $528,791) 432,398
================================================================================
OTHER ASSETS AND LIABILITIES
- --------------------------------------------------------------------------------
Other Assets 469
Liabilities (489)
-----------------------
(20)
-----------------------
- --------------------------------------------------------------------------------
NET ASSETS (100%)
================================================================================
Applicable to 75,383,534 outstanding $.001
par value shares of beneficial interest
(unlimited authorization) $432,378
- --------------------------------------------------------------------------------
NET ASSET VALUE PER SHARE $5.74
================================================================================
*See Note A in Notes to Financial Statements.
================================================================================
AT APRIL 30, 2003, NET ASSETS CONSISTED OF:
- --------------------------------------------------------------------------------
AMOUNT PER
(000) SHARE
- --------------------------------------------------------------------------------
Paid-in Capital $537,083 $7.12
Undistributed Net Investment Income 58 --
Accumulated Net Realized Losses (8,370) (.11)
Unrealized Depreciation (96,393) (1.27)
- --------------------------------------------------------------------------------
NET ASSETS $432,378 $5.74
================================================================================
See Note D in Notes to Financial Statements for the tax-basis components of net
assets.
46
STATEMENT OF OPERATIONS
This Statement shows the types of income earned by each fund during the
reporting period, and details the operating expenses charged to each class of
its shares. These expenses directly reduce the amount of investment income
available to pay to shareholders as income dividends. The Total International
Stock, Developed Markets, and Institutional Developed Markets Index Funds'
Income Distributions Received from the other funds' net income have been reduced
by their share of the other funds' expenses. This Statement also shows any Net
Gain (Loss) realized on the sale of investments, and the increase or decrease in
the Unrealized Appreciation (Depreciation) of investments during the period.
===============================================================================================================================
EUROPEAN PACIFIC EMERGING
STOCK INDEX STOCK INDEX MARKETS STOCK
FUND FUND INDEX FUND
- -------------------------------------------------------------------------------------------------------------------------------
SIX MONTHS ENDED APRIL 30, 2003
- -------------------------------------------------------------------------------------------------------------------------------
(000) (000) (000)
- -------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME
Income
Dividends* $ 71,630 $ 16,085 $ 13,884
Interest 58 149 666
Security Lending 1,542 391 --
Swap Income -- -- 1,122
- -------------------------------------------------------------------------------------------------------------------------------
Total Income 73,230 16,625 15,672
- -------------------------------------------------------------------------------------------------------------------------------
EXPENSES
The Vanguard Group--Note B
Investment Advisory Services 62 62 62
Management and Administrative--Investor Shares 5,099 2,332 1,576
Management and Administrative--Admiral Shares 267 123 --
Management and Administrative--Institutional Shares 238 169 79
Marketing and Distribution--Investor Shares 297 114 63
Marketing and Distribution--Admiral Shares 17 6 --
Marketing and Distribution--Institutional Shares 36 16 7
Custodian Fees 1,213 376 795
Shareholders' Reports and Proxies--Investor Shares 122 47 33
Shareholders' Reports and Proxies--Admiral Shares 1 -- --
Shareholders' Reports and Proxies--Institutional Shares 1 -- --
Trustees' Fees and Expenses 4 1 1
- -------------------------------------------------------------------------------------------------------------------------------
Total Expenses 7,357 3,246 2,616
- -------------------------------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME 65,873 13,379 13,056
- -------------------------------------------------------------------------------------------------------------------------------
REALIZED NET GAIN (LOSS)
Investment Securities Sold (70,596) (2,636) (1,380)
Futures Contracts (2,147) (3,151) --
Foreign Currencies and Forward Currency Contracts 1,547 320 (85)
- -------------------------------------------------------------------------------------------------------------------------------
REALIZED NET GAIN (LOSS) (71,196) (5,467) (1,465)
- -------------------------------------------------------------------------------------------------------------------------------
CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION)
Investment in Securities 209,379 (81,120) 63,641
Futures Contracts 1,189 1,020 -
Foreign Currencies and Forward Currency Contracts 1,393 148 394
Swap Contracts - - (6,744)
- -------------------------------------------------------------------------------------------------------------------------------
CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) 211,961 (79,952) 47,291
- -------------------------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS $206,638 $(72,040) $58,882
===============================================================================================================================
*Dividends are net of foreign withholding taxes of $9,513,000, $1,167,000, and
$1,055,000, respectively.
47
STATEMENT OF OPERATIONS (CONTINUED)
===============================================================================================================================
TOTAL INSTITUTIONAL
INTERNATIONAL DEVELOPED DEVELOPED
STOCK INDEX MARKETS INDEX MARKETS INDEX
FUND FUND FUND
- -------------------------------------------------------------------------------------------------------------------------------
SIX MONTHS ENDED APRIL 30, 2003
- -------------------------------------------------------------------------------------------------------------------------------
(000) (000) (000)
- -------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME
INCOME
Income Distributions Received $ 59,766 $ 6,561 $ 8,152
Interest 15 4 9
- -------------------------------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME--Note C 59,781 6,565 8,161
- -------------------------------------------------------------------------------------------------------------------------------
REALIZED NET GAIN (LOSS)
Capital Gain Distributions Received -- -- --
Investment Securities Sold -- (4,457) (8,381)
- -------------------------------------------------------------------------------------------------------------------------------
REALIZED NET GAIN (LOSS) -- (4,457) (8,381)
- -------------------------------------------------------------------------------------------------------------------------------
CHANGE IN UNREALIZED APPRECIATION
(DEPRECIATION) OF INVESTMENT SECURITIES 10,221 6,010 5,932
- -------------------------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS $70,002 $8,118 $5,712
===============================================================================================================================
48
STATEMENT OF CHANGES IN NET ASSETS
This Statement shows how each fund's total net assets changed during the two
most recent reporting periods. The Operations section summarizes information
detailed in the Statement of Operations. The amounts shown as Distributions to
shareholders from the fund's net income and capital gains may not match the
amounts shown in the Operations section, because distributions are determined on
a tax basis and may be made in a period different from the one in which the
income was earned or the gains were realized on the financial statements. The
Capital Share Transactions section shows the net amount shareholders invested in
or redeemed from the fund. Distributions and Capital Share Transactions are
shown separately for each class of shares.
EUROPEAN STOCK INDEX FUND
================================================================================
SIX MONTHS YEAR
ENDED ENDED
APR. 30, 2003 OCT. 31, 2002
(000) (000)
- --------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS
Net Investment Income $ 65,873 $ 110,556
Realized Net Gain (Loss) (71,196) (248,573)
Change in Unrealized Appreciation
(Depreciation) 211,961 (586,241)
- --------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets
Resulting from Operations 206,638 (724,258)
- --------------------------------------------------------------------------------
DISTRIBUTIONS
Net Investment Income
Investor Shares (95,319) (93,901)
Admiral Shares (8,302) (7,397)
Institutional Shares (10,645) (6,895)
Realized Capital Gain
Investor Shares -- --
Admiral Shares -- --
Institutional Shares -- --
- --------------------------------------------------------------------------------
Total Distributions (114,266) (108,193)
- --------------------------------------------------------------------------------
Capital Share Transactions--Note G
Investor Shares 312,221 414,037
Admiral Shares 9,933 141,385
Institutional Shares 181,811 119,523
- --------------------------------------------------------------------------------
Net Increase (Decrease) from
Capital Share Transactions 503,965 674,945
- --------------------------------------------------------------------------------
Total Increase (Decrease) 596,337 (157,506)
- --------------------------------------------------------------------------------
NET ASSETS
Beginning of Period 4,515,869 4,673,375
- --------------------------------------------------------------------------------
End of Period $5,112,206 $4,515,869
================================================================================
49
STATEMENT OF CHANGES IN NET ASSETS (CONTINUED)
PACIFIC STOCK INDEX FUND
================================================================================
SIX MONTHS YEAR
ENDED ENDED
APR. 30, 2003 OCT. 31, 2002
(000) (000)
- --------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS
Net Investment Income $ 13,379 $ 17,523
Realized Net Gain (Loss) (5,467) (68,609)
Change in Unrealized Appreciation
(Depreciation) (79,952) (180,859)
- --------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets
Resulting from Operations (72,040) (231,945)
- --------------------------------------------------------------------------------
DISTRIBUTIONS
Net Investment Income
Investor Shares (15,919) (6,460)
Admiral Shares (1,318) (464)
Institutional Shares (2,312) (556)
- --------------------------------------------------------------------------------
Realized Capital Gain
Investor Shares -- --
Admiral Shares -- --
Institutional Shares -- --
- --------------------------------------------------------------------------------
Total Distributions (19,549) (7,480)
- --------------------------------------------------------------------------------
Capital Share Transactions--Note G
Investor Shares 110,942 201,347
Admiral Shares 11,344 37,503
Institutional Shares 69,696 61,788
- --------------------------------------------------------------------------------
Net Increase (Decrease) from
Capital Share Transactions 191,982 300,638
- --------------------------------------------------------------------------------
Total Increase (Decrease) 100,393 61,213
- --------------------------------------------------------------------------------
NET ASSETS
Beginning of Period 1,619,814 1,558,601
- --------------------------------------------------------------------------------
End of Period $1,720,207 $1,619,814
================================================================================
50
EMERGING MARKETS STOCK INDEX FUND
================================================================================
SIX MONTHS YEAR
ENDED ENDED
APR. 30, 2003 OCT. 31, 2002
(000) (000)
- --------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS
Net Investment Income $ 13,056 $ 16,364
Realized Net Gain (Loss) (1,465) (66,301)
Change in Unrealized Appreciation
(Depreciation) 47,291 76,421
- --------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets
Resulting from Operations 58,882 26,484
- --------------------------------------------------------------------------------
DISTRIBUTIONS
Net Investment Income
Investor Shares (14,099) (18,741)
Institutional Shares (1,409) (2,055)
Realized Capital Gain
Investor Shares -- --
Institutional Shares -- --
- --------------------------------------------------------------------------------
Total Distributions (15,508) (20,796)
- --------------------------------------------------------------------------------
Capital Share Transactions--Note G
Investor Shares 78,036 66,374
Institutional Shares 2,928 10,755
- --------------------------------------------------------------------------------
Net Increase (Decrease) from
Capital Share Transactions 80,964 77,129
- --------------------------------------------------------------------------------
Total Increase (Decrease) 124,338 82,817
- --------------------------------------------------------------------------------
NET ASSETS
Beginning of Period 917,542 834,725
- --------------------------------------------------------------------------------
End of Period $1,041,880 $917,542
================================================================================
51
STATEMENT OF CHANGES IN NET ASSETS (CONTINUED)
TOTAL INTERNATIONAL STOCK INDEX FUND
================================================================================
SIX MONTHS YEAR
ENDED ENDED
APR. 30, 2003 OCT. 31, 2002
(000) (000)
- --------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS
Net Investment Income $ 59,781 $ 50,696
Realized Net Gain (Loss) -- (43,870)
Change in Unrealized Appreciation
(Depreciation) 10,221 (396,552)
- --------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets
Resulting from Operations 70,002 (389,726)
- --------------------------------------------------------------------------------
DISTRIBUTIONS
Net Investment Income (59,624) (50,646)
Realized Capital Gain -- --
- --------------------------------------------------------------------------------
Total Distributions (59,624) (50,646)
- --------------------------------------------------------------------------------
Net Increase (Decrease) from
Capital Share Transactions--Note G 310,418 592,307
- --------------------------------------------------------------------------------
Total Increase (Decrease) 320,796 151,935
- --------------------------------------------------------------------------------
NET ASSETS
Beginning of Period 2,883,599 2,731,664
- --------------------------------------------------------------------------------
End of Period $3,204,395 $2,883,599
================================================================================
DEVELOPED MARKETS INDEX FUND
================================================================================
SIX MONTHS YEAR
ENDED ENDED
APR. 30, 2003 OCT. 31, 2002
(000) (000)
- --------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS
Net Investment Income $ 6,565 $ 3,033
Realized Net Gain (Loss) (4,457) --
Change in Unrealized Appreciation
(Depreciation) 6,010 (46,600)
- --------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets
Resulting from Operations 8,118 (43,567)
- --------------------------------------------------------------------------------
DISTRIBUTIONS
Net Investment Income (6,494) (3,023)
Realized Capital Gain -- --
- --------------------------------------------------------------------------------
Total Distributions (6,494) (3,023)
- --------------------------------------------------------------------------------
Net Increase (Decrease) from
Capital Share Transactions--Note G 125,002 209,397
- --------------------------------------------------------------------------------
Total Increase (Decrease) 126,626 162,807
- --------------------------------------------------------------------------------
NET ASSETS
Beginning of Period 308,200 145,393
- --------------------------------------------------------------------------------
End of Period $434,826 $308,200
================================================================================
52
INSTITUTIONAL DEVELOPED MARKETS INDEX FUND
================================================================================
SIX MONTHS YEAR
ENDED ENDED
APR. 30, 2003 OCT. 31, 2002
(000) (000)
- --------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS
Net Investment Income $ 8,161 $ 4,413
Realized Net Gain (Loss) (8,381) --
Change in Unrealized Appreciation
(Depreciation) 5,932 (42,863)
- --------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets
Resulting from Operations 5,712 (38,450)
- --------------------------------------------------------------------------------
DISTRIBUTIONS
Net Investment Income (8,134) (4,448)
Realized Capital Gain -- --
- --------------------------------------------------------------------------------
Total Distributions (8,134) (4,448)
- --------------------------------------------------------------------------------
Net Increase (Decrease) from
Capital Share Transactions--Note G 173,687 97,692
- --------------------------------------------------------------------------------
Total Increase (Decrease) 171,265 54,794
- --------------------------------------------------------------------------------
NET ASSETS
Beginning of Period 261,113 206,319
- --------------------------------------------------------------------------------
End of Period $432,378 $261,113
================================================================================
53
FINANCIAL HIGHLIGHTS
This table summarizes each fund's investment results and distributions to
shareholders on a per-share basis for each class of shares. The table also
presents the fund's Total Return and shows net investment income and expenses as
percentages of average net assets. The Total International Stock, Developed
Markets, and Institutional Developed Markets Index Funds' expense ratios are
zero because they pay no direct expenses; these funds' share of the expenses of
the other funds in which they invest reduces the income received from them.
These data will help you assess: the variability of the fund's net income and
total returns from year to year; the relative contributions of net income and
capital gains to the fund's total return; how much it costs to operate the fund;
and the extent to which the fund tends to distribute capital gains. The table
also shows the Portfolio Turnover Rate, a measure of trading activity. A
turnover rate of 100% means that the average security is held in the fund for
one year.
EUROPEAN STOCK INDEX FUND INVESTOR SHARES
=================================================================================================================================
SIX MONTHS ENDED YEAR ENDED JAN. 1 TO
FOR A SHARE OUTSTANDING APR. 30, OCT. 31, OCT. 31, YEAR ENDED DECEMBER 31,
- ---------------------------------------------------------------------------------------------------------------------------------
THROUGHOUT EACH PERIOD 2003 2002 2001* 2000 1999 1998 1997
- ---------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $16.44 $19.50 $25.99 $28.82 $25.28 $20.13 $16.57
- ---------------------------------------------------------------------------------------------------------------------------------
INVESTMENT OPERATIONS
Net Investment Income .20 .39 .37 .335 .50 .41 .38
Net Realized and Unrealized Gain (Loss)
on Investments .46 (3.01) (6.85) (2.692) 3.69 5.40 3.63
- ---------------------------------------------------------------------------------------------------------------------------------
Total from Investment Operations .66 (2.62) (6.48) (2.357) 4.19 5.81 4.01
- ---------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS
Dividends from Net Investment Income (.40) (.44) (.01) (.423) (.50) (.52) (.37)
Distributions from Realized Capital Gains -- -- -- (.050) (.15) (.14) (.08)
- ---------------------------------------------------------------------------------------------------------------------------------
Total Distributions (.40) (.44) (.01) (.473) (.65) (.66) (.45)
- ---------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $16.70 $16.44 $19.50 $25.99 $28.82 $25.28 $20.13
- ---------------------------------------------------------------------------------------------------------------------------------
Total Return** 4.13% -13.81% -24.94% -8.18% 16.62% 28.86% 24.23%
- ---------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Net Assets, End of Period (Millions) $4,258 $3,870 $4,165 $5,611 $6,106 $4,479 $2,432
Ratio of Total Expenses
to Average Net Assets 0.34%+ 0.33% 0.30%+ 0.29% 0.29% 0.29% 0.31%
Ratio of Net Investment Income
to Average Net Assets 2.80%+ 2.24% 2.08%+ 1.64% 1.99% 1.97% 2.19%
Portfolio Turnover Rate 4%+ 15% 3% 8% 7% 7% 3%
=================================================================================================================================
*The fund's fiscal year-end changed from December 31 to October 31, effective
October 31, 2001.
**Total returns do not reflect the transaction fee on purchases (0.5% from
11/3/1997 through 3/31/2000, 1.0% from 1/1/1997 through 11/2/1997) or the $10
annual account maintenance fee applied on balances under $10,000.
+Annualized.
54
EUROPEAN STOCK INDEX FUND ADMIRAL SHARES
========================================================================================================================
SIX MONTHS YEAR
ENDED ENDED AUG. 13*
APR. 30, OCT. 31, TO OCT. 31,
- ------------------------------------------------------------------------------------------------------------------------
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD 2003 2002 2001**
- ------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $38.61 $45.77 $50.00
- ------------------------------------------------------------------------------------------------------------------------
INVESTMENT OPERATIONS
Net Investment Income .497 .96 .12
Net Realized and Unrealized Gain (Loss) on Investments 1.078 (7.08) (4.35)
- ------------------------------------------------------------------------------------------------------------------------
Total from Investment Operations 1.575 (6.12) (4.23)
- ------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS
Dividends from Net Investment Income (.975) (1.04) --
Distributions from Realized Capital Gains -- -- --
- ------------------------------------------------------------------------------------------------------------------------
Total Distributions (.975) (1.04) --
- ------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $39.21 $38.61 $45.77
- ------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN 4.20% -13.74% -8.46%
- ------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Net Assets, End of Period (Millions) $352 $335 $261
Ratio of Total Expenses to Average Net Assets 0.23%+ 0.23% 0.25%+
Ratio of Net Investment Income to Average Net Assets 2.28%+ 2.41% 0.70%+
Portfolio Turnover Rate 4%+ 15% 3%
========================================================================================================================
*Inception.
**The fund's fiscal year-end changed from December 31 to October 31, effective
October 31, 2001.
+Annualized.
EUROPEAN STOCK INDEX FUND INSTITUTIONAL SHARES
=============================================================================================================================
SIX MONTHS YEAR
ENDED ENDED JAN. 1 TO MAY 15**
APR. 30, OCT. 31, OCT. 31, TO DEC. 31,
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD 2003 2002 2001* 2000
- -----------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $16.46 $19.52 $25.99 $27.22
- -----------------------------------------------------------------------------------------------------------------------------
INVESTMENT OPERATIONS
Net Investment Income .215 .414 .390 .172
Net Realized and Unrealized Gain (Loss) on Investments .460 (3.015) (6.848) (.965)
- -----------------------------------------------------------------------------------------------------------------------------
Total from Investment Operations .675 (2.601) (6.458) (.793)
- -----------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS
Dividends from Net Investment Income (.425) (.459) (.012) (.437)
Distributions from Realized Capital Gains -- -- -- --
- -----------------------------------------------------------------------------------------------------------------------------
Total Distributions (.425) (.459) (.012) (.437)
- -----------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $16.71 $16.46 $19.52 $25.99
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN 4.22% -13.71% -24.85% -2.89%
- -----------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Net Assets, End of Period (Millions) $503 $311 $248 $284
Ratio of Total Expenses
to Average Net Assets 0.18%+ 0.18% 0.20%+ 0.20%+
Ratio of Net Investment Income
to Average Net Assets 3.11%+ 2.46% 2.13%+ 1.19%+
Portfolio Turnover Rate 4%+ 15% 3% 8%
=============================================================================================================================
*The fund's fiscal year-end changed from December 31 to October 31, effective
October 31, 2001.
**Inception.
+Annualized.
55
FINANCIAL HIGHLIGHTS (CONTINUED)
PACIFIC STOCK INDEX FUND INVESTOR SHARES
=================================================================================================================================
SIX MONTHS ENDED YEAR ENDED JAN. 1 TO
FOR A SHARE OUTSTANDING APR. 30, OCT. 31, OCT. 31, YEAR ENDED DECEMBER 31,
THROUGHOUT EACH PERIOD 2003 2002 2001* 2000 1999 1998 1997
- ---------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $5.90 $6.79 $8.95 $12.22 $ 7.84 $7.72 $10.51
- ---------------------------------------------------------------------------------------------------------------------------------
INVESTMENT OPERATIONS
Net Investment Income .041 .065 .07 .077 .08 .085 .09
Net Realized and Unrealized Gain
(Loss) on Investments (.274) (.923) (2.23) (3.222) 4.39 .100 (2.79)
- ---------------------------------------------------------------------------------------------------------------------------------
Total from Investment Operations (.233) (.858) (2.16) (3.145) 4.47 .185 (2.70)
- ---------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS
Dividends from Net Investment Income (.067) (.032) -- (.125) (.09) (.065) (.09)
Distributions from Realized Capital Gains -- -- -- -- -- -- --
- ---------------------------------------------------------------------------------------------------------------------------------
Total Distributions (.067) (.032) -- (.125) (.09) (.065) (.09)
- ---------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $5.60 $5.90 $6.79 $ 8.95 $12.22 $7.84 $ 7.72
- ---------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN** -3.97% -12.67% -24.13% -25.74% 57.05% 2.41% -25.67%
- ---------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Net Assets, End of Period (Millions) $1,421 $1,386 $1,389 $1,823 $2,526 $1,033 $827
Ratio of Total Expenses
to Average Net Assets 0.41%+ 0.40% 0.37%+ 0.38% 0.37% 0.40% 0.35%
Ratio of Net Investment Income
to Average Net Assets 1.55%+ 1.04% 1.06%+ 0.68% 0.95% 1.17% 1.03%
Portfolio Turnover Rate 1%+ 20% 2% 6% 6% 4% 8%
=================================================================================================================================
*The fund's fiscal year-end changed from December 31 to October 31, effective
October 31, 2001.
**Total returns do not reflect the transaction fee on purchases (0.5% from
1/1/1997 through 3/31/2000) or the $10 annual account maintenance fee applied on
balances under $10,000.
+Annualized.
56
PACIFIC STOCK INDEX FUND ADMIRAL SHARES
========================================================================================================================
SIX MONTHS
ENDED YEAR ENDED AUG. 13* TO
APR. 30, OCT. 31, OCT. 31,
- ------------------------------------------------------------------------------------------------------------------------
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD 2003 2002 2001**
- ------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $38.63 $44.40 $50.00
- ------------------------------------------------------------------------------------------------------------------------
INVESTMENT OPERATIONS
Net Investment Income .291 .461 .20
Net Realized and Unrealized Gain
(Loss) on Investments (1.828) (6.016) (5.80)
- ------------------------------------------------------------------------------------------------------------------------
Total from Investment Operations (1.537) (5.555) (5.60)
- ------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS
Dividends from Net Investment Income (.473) (.215) --
Distributions from Realized Capital Gains -- -- --
- ------------------------------------------------------------------------------------------------------------------------
Total Distributions (.473) (.215) --
- ------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $36.62 $38.63 $44.40
- ------------------------------------------------------------------------------------------------------------------------
Total Return -4.00% -12.55% -11.20%
- ------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Net Assets, End of Period (Millions) $108 $102 $80
Ratio of Total Expenses
to Average Net Assets 0.30%+ 0.30% 0.32%+
Ratio of Net Investment Income
to Average Net Assets 1.66%+ 1.16% 2.05%+
Portfolio Turnover Rate 1%+ 20% 2%
========================================================================================================================
*Inception.
**The fund's fiscal year-end changed from December 31 to October 31, effective
October 31, 2001.
+Annualized.
PACIFIC STOCK INDEX FUND INSTITUTIONAL SHARES
=============================================================================================================================
SIX MONTHS YEAR
ENDED ENDED JAN. 1 TO MAY 15**
APR. 30, OCT. 31, OCT. 31, TO DEC. 31,
- -----------------------------------------------------------------------------------------------------------------------------
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD 2003 2002 2001* 2000
- -----------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $5.91 $6.79 $8.95 $11.10
- -----------------------------------------------------------------------------------------------------------------------------
INVESTMENT OPERATIONS
Net Investment Income .039 .081 .08 .052
Net Realized and Unrealized Gain (Loss) on Investments (.274) (.923) (2.24) (2.071)
- -----------------------------------------------------------------------------------------------------------------------------
Total from Investment Operations (.235) (.842) (2.16) (2.019)
- -----------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS
Dividends from Net Investment Income (.075) (.038) -- (.131)
Distributions from Realized Capital Gains -- -- -- --
- -----------------------------------------------------------------------------------------------------------------------------
Total Distributions (.075) (.038) -- (.131)
- -----------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $5.60 $5.91 $6.79 $ 8.95
=============================================================================================================================
Total Return -4.00% -12.44% -24.13% -18.19%
- -----------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Net Assets, End of Period (Millions) $191 $131 $90 $102
Ratio of Total Expenses
to Average Net Assets 0.25%+ 0.25% 0.29%+ 0.29%+
Ratio of Net Investment Income
to Average Net Assets 1.76%+ 1.20% 1.18%+ 0.79%+
Portfolio Turnover Rate 1%+ 20% 2% 6%
=============================================================================================================================
*The fund's fiscal year-end changed from December 31 to October 31, effective
October 31, 2001.
**Inception.
+Annualized.
57
FINANCIAL HIGHLIGHTS (CONTINUED)
EMERGING MARKETS STOCK INDEX FUND INVESTOR SHARES
=================================================================================================================================
SIX MONTHS ENDED YEAR ENDED JAN. 1 TO
FOR A SHARE OUTSTANDING APR. 30, OCT. 31, OCT. 31, YEAR ENDED DECEMBER 31,
- ---------------------------------------------------------------------------------------------------------------------------------
THROUGHOUT EACH PERIOD 2003 2002 2001* 2000 1999 1998 1997
- ---------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $7.48 $7.28 $8.84 $12.50 $ 7.91 $9.98 $12.28
- ---------------------------------------------------------------------------------------------------------------------------------
INVESTMENT OPERATIONS
Net Investment Income .096 .15 .19 .141 .24 .27 .24
Net Realized and Unrealized Gain
(Loss) on Investments .376 .25 (1.74) (3.583) 4.62 (2.08) (2.31)
- ---------------------------------------------------------------------------------------------------------------------------------
Total from Investment Operations .472 .40 (1.55) (3.442) 4.86 (1.81) (2.07)
- ---------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS
Dividends from Net Investment Income (.122) (.20) (.01) (.218) (.27) (.26) (.23)
Distributions from Realized Capital Gains -- -- -- -- -- -- --
- ---------------------------------------------------------------------------------------------------------------------------------
Total Distributions (.122) (.20) (.01) (.218) (.27) (.26) (.23)
- ---------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $7.83 $7.48 $7.28 $ 8.84 $12.50 $7.91 $ 9.98
- ---------------------------------------------------------------------------------------------------------------------------------
Total Return** 6.30% 5.27% -17.55% -27.56% 61.57% -18.12% -16.82%
- ---------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Net Assets, End of Period (Millions) $959 $841 $770 $913 $1,138 $577 $660
Ratio of Total Expenses
to Average Net Assets 0.55%+ 0.57% 0.60%+ 0.59% 0.58% 0.61% 0.57%
Ratio of Net Investment Income
to Average Net Assets 2.67%+ 1.67% 2.69%+ 1.51% 2.55% 2.99% 1.96%
Portfolio Turnover Rate 18%+ 65% 23% 40% 22% 22% 19%
=================================================================================================================================
*The fund's fiscal year-end changed from December 31 to October 31, effective
October 31, 2001.
**Total returns do not reflect the transaction fee on purchases (0.5% beginning
4/1/2000, 1.0% from 11/3/1997 through 3/31/2000, 1.5% from 1/1/1997 through
11/2/1997), the transaction fee on redemptions (0.5% beginning 4/1/2000, 1.0%
through 3/31/2000), or the $10 annual account maintenance fee applied on
balances under $10,000.
+Annualized.
58
EMERGING MARKETS STOCK INDEX FUND INSTITUTIONAL SHARES
=============================================================================================================================
SIX MONTHS YEAR
ENDED ENDED JAN. 1 TO JUNE 22**
APR. 30, OCT. 31, OCT. 31, TO DEC. 31,
- -----------------------------------------------------------------------------------------------------------------------------
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD 2003 2002 2001* 2000
- -----------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $7.49 $7.29 $8.84 $11.16
- -----------------------------------------------------------------------------------------------------------------------------
INVESTMENT OPERATIONS
Net Investment Income .099 .165 .200 .021
Net Realized and Unrealized Gain (Loss) on Investments .376 .246 (1.739) (2.126)
- -----------------------------------------------------------------------------------------------------------------------------
Total from Investment Operations .475 .411 (1.539) (2.105)
- -----------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS
Dividends from Net Investment Income (.135) (.211) (.011) (.215)
Distributions from Realized Capital Gains -- -- -- --
- -----------------------------------------------------------------------------------------------------------------------------
Total Distributions (.135) (.211) (.011) (.215)
- -----------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $7.83 $7.49 $7.29 $ 8.84
- -----------------------------------------------------------------------------------------------------------------------------
Total Return+ 6.33% 5.40% -17.42% -18.86%
- -----------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Net Assets, End of Period (Millions) $82 $76 $65 $19
Ratio of Total Expenses
to Average Net Assets 0.39%++ 0.41% 0.45%++ 0.45%++
Ratio of Net Investment Income
to Average Net Assets 2.80%++ 1.85% 2.75%++ 1.34%++
Portfolio Turnover Rate 18%++ 65% 23% 40%
=============================================================================================================================
*The fund's fiscal year-end changed from December 31 to October 31, effective
October 31, 2001.
**Inception.
+Total returns do not reflect the 0.5% transaction fee on purchases and
redemptions.
++Annualized.
59
FINANCIAL HIGHLIGHTS (CONTINUED)
TOTAL INTERNATIONAL STOCK INDEX FUND
=================================================================================================================================
SIX MONTHS ENDED YEAR ENDED JAN. 1 TO
FOR A SHARE OUTSTANDING APR. 30, OCT. 31, OCT. 31, YEAR ENDED DECEMBER 31,
THROUGHOUT EACH PERIOD 2003 2002 2001* 2000 1999 1998 1997
- ---------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $7.79 $8.99 $11.83 $14.31 $11.19 $ 9.87 $10.14
- ---------------------------------------------------------------------------------------------------------------------------------
INVESTMENT OPERATIONS
Net Investment Income .157 .165 -- .20 .21 .21 .18
Capital Gain Distributions Received -- -- -- .01 .04 .02 .02
Net Realized and Unrealized Gain
(Loss) on Investments .010 (1.200) (2.84) (2.44) 3.09 1.31 (.28)
- ---------------------------------------------------------------------------------------------------------------------------------
Total from Investment Operations .167 (1.035) (2.84) (2.23) 3.34 1.54 (.08)
- ---------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS
Dividends from Net Investment Income (.157) (.165) -- (.20) (.21) (.21) (.17)
Distributions from Realized Capital Gains -- -- -- (.05) (.01) (.01) (.02)
- ---------------------------------------------------------------------------------------------------------------------------------
Total Distributions (.157) (.165) -- (.25) (.22) (.22) (.19)
- ---------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $7.80 $7.79 $ 8.99 $11.83 $14.31 $11.19 $ 9.87
- ---------------------------------------------------------------------------------------------------------------------------------
Total Return** 2.21% -11.80% -24.01% -15.61% 29.92% 15.60% -0.77%
- ---------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Net Assets, End of Period (Millions) $3,204 $2,884 $2,732 $2,920 $2,570 $1,375 $903
Ratio of Total Expenses
to Average Net Assets 0% 0% 0% 0% 0% 0% 0%
Ratio of Net Investment Income
to Average Net Assets 2.01% 1.70% 0.05%+ 1.68% 2.04% 2.18% 2.19%
Portfolio Turnover Rate 2%+ 5% 2% 3% 1% 2% 0%
=================================================================================================================================
*The fund's fiscal year-end changed from December 31 to October 31, effective
October 31, 2001.
**Total returns do not reflect the transaction fee on purchases (0.5% from
11/3/1997 through 3/31/2000, 0.75% from 1/1/1997 through 11/2/1997) or the $10
annual account maintenance fee applied on balances under $10,000.
+Annualized.
60
DEVELOPED MARKETS INDEX FUND
=============================================================================================================================
SIX MONTHS YEAR
ENDED ENDED JAN. 1 TO MAY 8**
APR. 30, OCT. 31, OCT. 31, TO DEC. 31,
- -----------------------------------------------------------------------------------------------------------------------------
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD 2003 2002 2001* 2000
- -----------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $5.80 $6.83 $9.07 $10.00
- -----------------------------------------------------------------------------------------------------------------------------
INVESTMENT OPERATIONS
Net Investment Income .116 .12 -- .15
Capital Gain Distributions Received -- -- -- --
- -----------------------------------------------------------------------------------------------------------------------------
Net Realized and Unrealized Gain
(Loss) on Investments (.010) (1.03) (2.24) (.93)
- -----------------------------------------------------------------------------------------------------------------------------
Total from Investment Operations .106 (.91) (2.24) (.78)
- -----------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS
Dividends from Net Investment Income (.116) (.12) -- (.15)
Distributions from Realized Capital Gains -- -- -- --
- -----------------------------------------------------------------------------------------------------------------------------
Total Distributions (.116) (.12) -- (.15)
- -----------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $5.79 $5.80 $6.83 $ 9.07
- -----------------------------------------------------------------------------------------------------------------------------
Total Return+ 1.89% -13.61% -24.70% -7.78%
- -----------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Net Assets, End of Period (Millions) $435 $308 $145 $99
Ratio of Total Expenses
to Average Net Assets 0% 0% 0% 0%
Ratio of Net Investment Income
to Average Net Assets 1.75% 1.30% 0.04%++ 1.68%++
Portfolio Turnover Rate 9%++ 5% 9% 8%
=============================================================================================================================
*The fund's fiscal year-end changed from December 31 to October 31, effective
October 31, 2001.
**Inception.
+Total returns do not reflect the $10 annual account maintenance fee applied on
balances under $10,000.
++Annualized.
61
FINANCIAL HIGHLIGHTS (CONTINUED)
INSTITUTIONAL DEVELOPED MARKETS INDEX FUND
=============================================================================================================================
SIX MONTHS YEAR
ENDED ENDED JAN. 1 TO JUNE 1**
APR. 30, OCT. 31, OCT. 31, TO DEC. 31,
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD 2003 2002 2001* 2000
- -----------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $5.76 $6.78 $9.01 $10.00
- -----------------------------------------------------------------------------------------------------------------------------
INVESTMENT OPERATIONS
Net Investment Income .126 .132 -- .15
Capital Gain Distributions Received -- -- -- --
- -----------------------------------------------------------------------------------------------------------------------------
Net Realized and Unrealized Gain
(Loss) on Investments (.020) (1.020) (2.23) (.99)
- -----------------------------------------------------------------------------------------------------------------------------
Total from Investment Operations .106 (.888) (2.23) (.84)
- -----------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS
Dividends from Net Investment Income (.126) (.132) -- (.15)
Distributions from Realized Capital Gains -- -- -- --
- -----------------------------------------------------------------------------------------------------------------------------
Total Distributions (.126) (.132) -- (.15)
- -----------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $5.74 $5.76 $6.78 $ 9.01
- -----------------------------------------------------------------------------------------------------------------------------
Total Return 1.92% -13.41% -24.75% -8.38%
- -----------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Net Assets, End of Period (Millions) $432 $261 $206 $171
Ratio of Total Expenses
to Average Net Assets 0% 0% 0% 0%
Ratio of Net Investment Income
to Average Net Assets 2.08% 1.75% 0.05%+ 1.74%+
Portfolio Turnover Rate 11%+ 9% 3% 3%
=============================================================================================================================
*The fund's fiscal year-end changed from December 31 to October 31, effective
October 31, 2001.
**Inception.
+Annualized.
62
NOTES TO FINANCIAL STATEMENTS
Vanguard International Stock Index Funds comprise the European, Pacific,
Emerging Markets, and Total International Stock Index Funds, the Developed
Markets Index Fund, and the Institutional Developed Markets Index Fund, each of
which is registered under the Investment Company Act of 1940 as an open-end
investment company, or mutual fund. The European, Pacific, and Emerging Markets
Stock Index Funds each seek to match the performance of a distinct international
market index by investing in common stocks. The Total International Stock Index
Fund seeks to match the performance of its target index by investing in the
European, Pacific, and Emerging Markets Stock Index Funds. The Developed Markets
and Institutional Developed Markets Index Funds seek to match the performance of
their target index by investing in the European and Pacific Stock Index Funds.
The funds' direct and indirect investments in foreign securities involve
investment risks not normally associated with investing in securities of U.S.
corporations.
The European and Pacific Stock Index Funds each offer three classes of
shares, Investor Shares, Admiral Shares, and Institutional Shares. The Emerging
Markets Stock Index Fund offers two classes of shares, Investor Shares and
Institutional Shares. Investor Shares are available to any investor who meets
the fund's minimum purchase requirements. Admiral Shares are designed for
investors who meet certain administrative, servicing, tenure, and account-size
criteria. Institutional Shares are designed for investors who meet certain
administrative and servicing criteria and invest a minimum of $10 million.
A. The following significant accounting policies conform to generally accepted
accounting principles for U.S. mutual funds. The funds consistently follow such
policies in preparing their financial statements.
1. Security Valuation: European, Pacific, and Emerging Markets Stock Index
Funds: Securities are valued as of the close of trading on the New York Stock
Exchange (generally 4:00 p.m. Eastern time) on the valuation date. Equity
securities are valued at the latest quoted sales prices or official closing
prices taken from the primary market in which each security trades; such
securities not traded on the valuation date are valued at the mean of the latest
quoted bid and asked prices. Securities for which market quotations are not
readily available, or whose values have been materially affected by events
occurring before the funds' pricing time but after the close of their primary
markets, are valued by methods deemed by the board of trustees to represent fair
value. Total International Stock, Developed Markets, and Institutional Developed
Markets Index Funds: Investments are valued at the net asset value of each
Vanguard fund determined as of the close of the New York Stock Exchange on the
valuation date. All funds: Temporary cash investments acquired over 60 days to
maturity are valued using the latest bid prices or using valuations based on a
matrix system (which considers such factors as security prices, yields,
maturities, and ratings), both as furnished by independent pricing services.
Other temporary cash investments are valued at amortized cost, which
approximates market value.
2. Foreign Currency: Securities and other assets and liabilities denominated in
foreign currencies are translated into U.S. dollars at the exchange rates on the
valuation date as employed by Morgan Stanley Capital International in the
calculation of its indexes.
Realized gains (losses) and unrealized appreciation (depreciation) on
investment securities include the effects of changes in exchange rates since the
securities were purchased, combined with the effects of changes in security
prices. Fluctuations in the value of other assets and liabilities resulting from
changes in exchange rates are recorded as unrealized foreign currency gains
(losses) until the asset or liability is settled in cash, when they are recorded
as realized foreign currency gains (losses).
3. Futures and Forward Currency Contracts: The European Stock Index Fund uses
MSCI Pan-Euro Index futures contracts, and the Pacific Stock Index Fund uses
Topix Index futures contracts, to a limited extent, with the objectives of
maintaining full exposure to the stock market, enhancing returns, maintaining
liquidity, and minimizing transaction costs. The funds may purchase futures
63
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
contracts to immediately invest incoming cash in the market, or sell futures in
response to cash outflows, thereby simulating a fully invested position in the
underlying index while maintaining a cash balance for liquidity. The funds may
seek to enhance returns by using futures contracts instead of the underlying
securities when futures are believed to be priced more attractively than the
underlying securities. The primary risks associated with the use of futures
contracts are imperfect correlation between changes in market values of stocks
held by the funds and the prices of futures contracts, and the possibility of an
illiquid market.
The European and Pacific Stock Index Funds also enter into forward currency
contracts to provide the appropriate currency exposure related to any open
futures contracts. The primary risk associated with the funds' use of these
contracts is that a counterparty will fail to fulfill its obligations under the
contracts.
Futures and forward currency contracts are valued at their quoted daily
settlement prices. The aggregate principal amounts of the contracts are not
recorded in the financial statements. Fluctuations in the value of the contracts
are recorded in the Statement of Net Assets as an asset (liability) and in the
Statement of Operations as unrealized appreciation (depreciation) until the
contracts are closed, when they are recorded as realized gains (losses) on
futures or forward currency contracts.
4. Swap Contracts: The Emerging Markets Stock Index Fund has entered into equity
swap contracts to earn the total return on selected stocks in the fund's target
index, when investing through a swap is expected to provide a return advantage
over buying the individual stocks. Under the terms of the swaps, the fund
receives the total return (either receiving the increase or paying the decrease)
of the referenced stock, applied to a notional amount that is the value of a
designated number of shares of the stock at the beginning of the swap. The fund
agrees to pay the counterparty a floating rate that is reset periodically based
on short-term interest rates, less a specified interest rate spread, applied to
the notional amount. At the same time, the fund invests an amount equal to the
notional amount of the swaps in high-quality temporary cash investments.
The notional amounts of swap contracts are not recorded in the financial
statements. Swaps are valued daily and the change in value is recorded as
unrealized appreciation (depreciation) until termination of the swap, at which
time realized gain (loss) is recorded. Swap income is accrued daily in the
amount of net interest earned or payable and any payments in lieu of dividends
by the referenced stocks. The primary risks associated with the swaps are that a
counterparty will default on its obligation to pay net amounts due to the fund,
or that the fund will incur fees in the event it terminates the swap prior to
the scheduled termination date.
5. Repurchase Agreements: Each fund, along with other members of The Vanguard
Group, transfers uninvested cash balances to a pooled cash account, which is
invested in repurchase agreements secured by U.S. government securities.
Securities pledged as collateral for repurchase agreements are held by a
custodian bank until the agreements mature. Each agreement requires that the
market value of the collateral be sufficient to cover payments of interest and
principal; however, in the event of default or bankruptcy by the other party to
the agreement, retention of the collateral may be subject to legal proceedings.
6. Federal Income Taxes: Each fund intends to continue to qualify as a regulated
investment company and distribute all of its taxable income. Accordingly, no
provision for federal income taxes is required in the financial statements.
7. Distributions: Distributions to shareholders are recorded on the ex-dividend
date.
8. Other: Dividend income is recorded on the ex-dividend date. Security
transactions are accounted for on the date securities are bought or sold. Costs
used to determine realized gains (losses) on the sale of investment securities
are those of the specific securities sold. Fees assessed on capital share
transactions are credited to paid-in capital.
64
Each class of shares has equal rights as to assets and earnings, except
that each class separately bears certain class-specific expenses related to
maintenance of shareholder accounts (included in Management and Administrative
expenses), shareholder reporting, and proxies. Marketing and distribution
expenses are allocated to each class of shares based on a method approved by the
board of trustees. Income, other non-class-specific expenses, and gains and
losses on investments are allocated to each class of shares based on its
relative net assets.
B. The Vanguard Group furnishes to the European, Pacific, and Emerging Markets
Stock Index Funds at cost investment advisory, corporate management,
administrative, marketing, and distribution services. The costs of such services
are allocated to the funds under methods approved by the board of trustees. Each
fund has committed to provide up to 0.40% of its net assets in capital
contributions to Vanguard.
At April 30, 2003, the funds had contributed capital to Vanguard (included
in Other Assets) of:
================================================================================
CAPITAL CONTRIBUTION PERCENTAGE PERCENTAGE OF
TO VANGUARD OF FUND VANGUARD'S
INDEX FUND (000) NET ASSETS CAPITALIZATION
- --------------------------------------------------------------------------------
European $846 0.02% 0.85%
Pacific 322 0.02 0.32
Emerging Markets 179 0.02 0.18
================================================================================
The funds' trustees and officers are also directors and officers of Vanguard.
C. Under a special service agreement, The Vanguard Group furnishes corporate
management, administrative, marketing, and distribution services to the Total
International Stock, Developed Markets, and Institutional Developed Markets
Index Funds. The special service agreement provides that Vanguard will reimburse
the funds' expenses to the extent of savings in administrative and marketing
costs realized by Vanguard in the operation of the funds. Accordingly, all
expenses incurred by the funds during the six months ended April 30, 2003, were
reimbursed by Vanguard.
D. Distributions are determined on a tax basis and may differ from net
investment income and realized capital gains for financial reporting purposes.
Differences may be permanent or temporary. Permanent differences are
reclassified among capital accounts in the financial statements to reflect their
tax character. Temporary differences arise when certain items of income,
expense, gain, or loss are recognized in different periods for financial
statement and tax purposes; these differences will reverse at some time in the
future. Differences in classification may also result from the treatment of
short-term gains as ordinary income for tax purposes.
65
During the six months ended April 30, 2003, the European, Pacific, and
Emerging Markets Stock Index Funds realized net foreign currency gains (losses)
of $31,000, $19,000, and $(85,000), respectively, which permanently increased
(decreased) distributable net income for tax purposes; accordingly such gains
(losses) have been reclassified from accumulated net realized losses to
undistributed net investment income.
The funds' tax-basis capital gains and losses are determined only at the
end of each fiscal year. For tax purposes, at October 31, 2002, the following
funds had tax-basis capital losses available to offset future net capital gains:
================================================================================
CAPITAL LOSSES
- --------------------------------------------------------------------------------
EXPIRATION: FISCAL
AMOUNT YEARS ENDING
INDEX FUND (000) OCTOBER 31
- --------------------------------------------------------------------------------
European $329,517 2008-2010
Pacific 174,264 2006-2010
Emerging Markets 165,400 2006-2010
Total International 51,127 2009-2010
- --------------------------------------------------------------------------------
The funds will use these capital losses to offset net taxable capital
gains, if any, realized during the year ending October 31, 2003; should the
funds realize net capital losses for the year, the losses will be added to the
loss carryforward balances above.
At April 30, 2003, net unrealized depreciation of investment securities for
tax purposes was:
================================================================================
(000)
- --------------------------------------------------------------------------------
NET UNREALIZED
APPRECIATED DEPRECIATED APPRECIATION
INDEX FUND SECURITIES SECURITIES (DEPRECIATION)
- --------------------------------------------------------------------------------
European $642,208 $(1,004,951) $ (362,743)
Pacific 87,075 (948,413) (861,338)
Emerging Markets 64,801 (339,783) (274,982)
Total International -- (1,088,215) (1,088,215)
Developed Markets -- (83,044) (83,044)
Institutional Developed Markets -- (96,393) (96,393)
- --------------------------------------------------------------------------------
66
At April 30, 2003, the aggregate settlement value of open futures contracts
and the related unrealized appreciation were:
================================================================================
(000)
- --------------------------------------------------------------------------------
AGGREGATE UNREALIZED
NUMBER OF SETTLEMENT APPRECIATION
INDEX FUND/FUTURES CONTRACTS LONG CONTRACTS VALUE (DEPRECIATION)
- --------------------------------------------------------------------------------
European/
MSCI Pan-Euro Index, exp. 6/2003 1,902 $29,191 $1,121
Pacific/
Topix Index, exp. 6/2003 297 19,689 108
- --------------------------------------------------------------------------------
At April 30, 2003, the European and Pacific Stock Index Funds had open
forward currency contracts to receive and deliver currencies as follows:
================================================================================
(000)
- --------------------------------------------------------------------------------
UNREALIZED
CONTRACT AMOUNT APPRECIATION
INDEX FUND/CONTRACT SETTLEMENT DATE RECEIVE DELIVER (DEPRECIATION)
- --------------------------------------------------------------------------------
European 6/25/2003 EUR 25,130 USD 27,996 $1,270
Pacific 6/18/2003 JPY 2,336,775 USD 19,627 (222)
- --------------------------------------------------------------------------------
EUR--euro.
JPY--Japanese yen.
USD--U.S. dollars.
Unrealized appreciation (depreciation) on open forward currency contracts is
treated as realized gain (loss) for tax purposes.
The European, Pacific, and Emerging Markets Stock Index Funds had net
unrealized foreign currency gains of $755,000, $44,000, and $253,000,
respectively, resulting from the translation of other assets and liabilities at
April 30, 2003.
67
At April 30, 2003, the Emerging Markets Stock Index Fund had the following
open swap contracts with Morgan Stanley & Co. International Limited as
counterparty:
================================================================================================================
UNREALIZED
NOTIONAL FLOATING MARKET APPRECIATION
TERMINATION AMOUNT INTEREST VALUE (DEPRECIATION)
FUND/COUNTRY/REFERENCED STOCK DATE (000) RATE* (000) (000)
- ----------------------------------------------------------------------------------------------------------------
EMERGING MARKETS
SOUTH KOREA
Kia Motors 5/7/2003 $ 689 5.94% $ 556 (133)
KT Corp. 5/12/2003 1,794 3.94% 1,646 (148)
KT Corp. 5/12/2003 88 3.93% 80 (8)
Samsung Electronics Co. Ltd. 5/12/2003 19,209 3.69% 18,325 (884)
SK Telecom Co., Ltd. 5/13/2003 3,052 3.93% 2,047 (1,005)
SK Telecom Co., Ltd. 5/15/2003 1,894 3.92% 1,291 (603)
Korea Free Telecom 8/18/2003 1,978 3.18% 1,282 (696)
TAIWAN
Ambit Microsystems Corp. 5/8/2003 526 3.84% 446 (80)
AU Optronics Corp. 8/13/2003 535 3.18% 217 (318)
AU Optronics Corp. 8/14/2003 439 3.18% 188 (251)
Austek Computer Inc. 8/18/2003 2,012 3.18% 1,184 (828)
BENQ Corp. 5/7/2003 797 4.34% 427 (370)
China Development
Financial Holding Corp. 6/2/2003 962 3.70% 608 (354)
Chinatrust Financial Co. 8/14/2003 1,930 3.18% 1,596 (334)
CMC Magnetics Corp. 5/12/2003 584 4.69% 409 (175)
Compal Electronics Inc. 8/12/2003 1,000 3.18% 1,229 229
Fubon Financial Holding Co., Ltd. 5/12/2003 1,323 3.93% 930 (393)
Gigabyte Technology Co., Ltd. 5/8/2003 479 3.84% 269 (210)
Hon Hai Precision Ind. 8/18/2003 2,012 3.18% 1,568 (444)
Lite-On Technology Corp. 5/8/2003 517 4.69% 305 (212)
Macronix International Co., Ltd. 5/7/2003 1,057 3.94% 227 (830)
Quanta Computer Inc. 5/12/2003 1,475 4.34% 829 (646)
Realtek Semiconductor Corp. 5/7/2003 720 5.84% 349 (371)
Ritek Corp. 5/12/2003 708 4.69% 315 (393)
Siliconware Precision
Industries Co. 5/8/2003 648 4.69% 308 (340)
United Microelectronics Corp. 8/6/2003 5,123 3.19% 2,639 (2,484)
Via Technologies Inc. 6/10/2003 922 3.69% 371 (551)
Winbond Electronics Corp. 8/12/2003 967 3.18% 581 (386)
- ----------------------------------------------------------------------------------------------------------------
(13,218)
================================================================================================================
*Based on one-month London Inter-Bank Offer-Rate (LIBOR). Each contract provides
for the payment of interest based on LIBOR less a fixed interest rate spread. At
April 30, 2003, the spread was greater than LIBOR, resulting in net interest
earned by the fund at the rate shown above.
68
E. During the six months ended April 30, 2003, purchases and sales of investment
securities other than temporary cash investments were:
================================================================================
(000)
- --------------------------------------------------------------------------------
INDEX FUND PURCHASES SALES
- --------------------------------------------------------------------------------
European $556,523 $104,302
Pacific 191,671 6,684
Emerging Markets 167,491 81,577
Total International 345,276 34,284
Developed Markets 142,576 17,192
Institutional Developed Markets 195,372 21,744
================================================================================
F. The market value of securities on loan to broker/dealers at April 30, 2003,
and collateral received with respect to such loans were:
================================================================================
(000)
- --------------------------------------------------------------------------------
MARKET VALUE CASH
OF LOANED COLLATERAL
INDEX FUND SECURITIES RECEIVED
- --------------------------------------------------------------------------------
European $1,044,659 $1,092,003
Pacific 134,194 141,501
- --------------------------------------------------------------------------------
The funds invest cash collateral received in repurchase agreements, and record a
liability for the return of the collateral, during the period the securities are
on loan.
G. Capital share transactions for each class of shares were:
=================================================================================================================
SIX MONTHS ENDED YEAR ENDED
APRIL 30, 2003 OCTOBER 31, 2002
- -----------------------------------------------------------------------------------------------------------------
AMOUNT SHARES AMOUNT SHARES
INDEX FUND (000) (000) (000) (000)
- -----------------------------------------------------------------------------------------------------------------
EUROPEAN
INVESTOR SHARES
Issued $ 459,896 28,964 $ 994,408 52,718
Issued in Lieu of Cash Distributions 90,696 5,679 88,639 4,506
Redeemed (238,371) (15,160) (669,010) (35,340)
- -----------------------------------------------------------------------------------------------------------------
Net Increase (Decrease)--Investor Shares 312,221 19,483 414,037 21,884
- -----------------------------------------------------------------------------------------------------------------
ADMIRAL SHARES
Issued 44,119 1,191 194,610 4,268
Issued in Lieu of Cash Distributions 6,400 171 5,932 128
Redeemed (40,586) (1,080) (59,157) (1,409)
- -----------------------------------------------------------------------------------------------------------------
Net Increase (Decrease)--Admiral Shares 9,933 282 141,385 2,987
- -----------------------------------------------------------------------------------------------------------------
INSTITUTIONAL SHARES
Issued 212,200 13,085 171,326 8,794
Issued in Lieu of Cash Distributions 10,145 635 6,351 323
Redeemed (40,534) (2,505) (58,154) (2,949)
- -----------------------------------------------------------------------------------------------------------------
Net Increase (Decrease)--Institutional Shares 181,811 11,215 119,523 6,168
=================================================================================================================
69
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
=================================================================================================================
SIX MONTHS ENDED YEAR ENDED
APRIL 30, 2003 OCTOBER 31, 2002
- -----------------------------------------------------------------------------------------------------------------
AMOUNT SHARES AMOUNT SHARES
INDEX FUND (000) (000) (000) (000)
- -----------------------------------------------------------------------------------------------------------------
PACIFIC
INVESTOR SHARES
Issued $181,382 31,449 $ 434,864 65,614
Issued in Lieu of Cash Distributions 15,104 2,640 5,988 942
Redeemed (85,544) (14,909) (239,505) (36,348)
- -----------------------------------------------------------------------------------------------------------------
Net Increase (Decrease)--Investor Shares 110,942 19,180 201,347 30,208
- -----------------------------------------------------------------------------------------------------------------
ADMIRAL SHARES
Issued 23,288 617 56,944 1,315
Issued in Lieu of Cash Distributions 1,055 28 387 9
Redeemed (12,999) (343) (19,828) (464)
- -----------------------------------------------------------------------------------------------------------------
Net Increase (Decrease)--Admiral Shares 11,344 302 37,503 860
- -----------------------------------------------------------------------------------------------------------------
INSTITUTIONAL SHARES
Issued 95,361 16,301 93,950 13,831
Issued in Lieu of Cash Distributions 2,099 367 556 87
Redeemed (27,764) (4,888) (32,718) (4,903)
- -----------------------------------------------------------------------------------------------------------------
Net Increase (Decrease)--Institutional Shares 69,696 11,780 61,788 9,015
- -----------------------------------------------------------------------------------------------------------------
EMERGING MARKETS
INVESTOR SHARES
Issued 121,201 15,818 $257,448 29,712
Issued in Lieu of Cash Distributions 12,798 1,624 17,319 2,122
Redeemed* (55,963) (7,380) (208,393) (24,995)
- -----------------------------------------------------------------------------------------------------------------
Net Increase (Decrease)--Investor Shares 78,036 10,062 66,374 6,839
- -----------------------------------------------------------------------------------------------------------------
INSTITUTIONAL SHARES
Issued 13,942 1,826 93,950 13,831
Issued in Lieu of Cash Distributions 2,099 367 556 87
Redeemed* (27,764) (4,888) (32,718) (4,903)
- -----------------------------------------------------------------------------------------------------------------
Net Increase (Decrease)--Institutional Shares 69,696 11,780 61,788 9,015
- -----------------------------------------------------------------------------------------------------------------
TOTAL INTERNATIONAL
Issued $520,698 68,652 $ 1,039,674 118,131
Issued in Lieu of Cash Distributions 54,512 7,211 46,919 5,083
Redeemed (264,792) (35,170) (494,286) (56,538)
- -----------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) 310,418 40,693 592,307 66,676
- -----------------------------------------------------------------------------------------------------------------
DEVELOPED MARKETS
Issued $173,014 30,571 $ 274,440 41,801
Issued in Lieu of Cash Distributions 5,661 1,009 2,495 361
Redeemed (53,673) (9,570) (67,538) (10,343)
- -----------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) 125,002 22,010 209,397 31,819
- -----------------------------------------------------------------------------------------------------------------
INSTITUTIONAL DEVELOPED MARKETS
Issued $192,077 33,336 $ 126,752 19,187
Issued in Lieu of Cash Distributions 3,270 589 2,261 330
Redeemed (21,660) (3,882) (31,321) (4,593)
- -----------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) 173,687 30,043 97,692 14,924
=================================================================================================================
*Emerging Markets Stock Index Fund amounts are net of redemption fees of
$239,000 and $949,000, respectively (fund totals).
70
INVESTING IS FAST AND EASY ON VANGUARD.COM
If you're like many Vanguard investors, you believe in planning and taking
control of your own investments. Vanguard.com(R) was built for you--and it's
getting better all the time.
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71
CAPITALIZE ON YOUR IRA
Are you taking full advantage of your individual retirement account? You really
should be. The contribution limits on IRAs were recently raised, making these
tax-deferred accounts more powerful options for retirement savers.
Here's how you can exploit your IRA--and improve your chances of having the
retirement of your dreams.
o CONTRIBUTE THE MAXIMUM AMOUNT EACH YEAR.
It may be an obvious point, but if you invest as much in your IRA as the
law allows--currently $3,000 per tax year if you are under age 50 and
$3,500 if you are age 50 or over--you will increase the odds of meeting
your retirement goals. "Max out" every year you can.
o MAKE IT AUTOMATIC.
Put your IRA on autopilot by taking advantage of Vanguard's Automatic
Investment Plan. Your IRA contributions will be deducted from your bank
account on a schedule of your choosing, making retirement investing a
healthy habit.
o CONSIDER COST.
The owners of low-cost investments keep a larger portion of their gross
returns than the owners of high-cost investments. Over the long term,
avoiding costlier mutual funds and brokerage commissions could
significantly boost your retirement savings. Our low costs are one reason a
Vanguard IRA(R) is such a smart choice.
o REQUEST A DIRECT ROLLOVER WHEN YOU CHANGE JOBS.
Don't spend your retirement assets before you've retired. When you change
jobs, roll your 401(k) or other employer-sponsored retirement plan assets
directly into your IRA.
If you have questions about your IRA, want to transfer an IRA from another
institution to Vanguard, or need help with any other IRA transaction, call our
Retirement Resource Center at 1-800-205-6189 or visit Vanguard.com. You can open
or fund your IRA on our website, and have a confirmation in your hand within
minutes.
72
THE PEOPLE WHO GOVERN YOUR FUND
The trustees of your mutual fund are there to see that the fund is operated and
managed in your best interests since, as a shareholder, you are a part owner of
the fund. Your fund trustees also serve on the board of directors of The
Vanguard Group, Inc., which is owned by the Vanguard(R) funds and provides
services to them on an at-cost basis.
A majority of Vanguard's board members are independent, meaning that they
have no affiliation with Vanguard or the funds they oversee, apart from the
investments they have made as private individuals. Our independent board members
bring distinguished backgrounds in business, academia, and public service to
their task of working with Vanguard officers to establish the policies and
oversee the activities of the funds.
Among board members' responsibilities are selecting investment advisers for
the funds; monitoring fund operations, performance, and costs; reviewing
contracts; nominating and selecting new trustees/directors; and electing
Vanguard officers. The dates in parentheses below show when each trustee was
initially elected.
================================================================================
JOHN J. BRENNAN*
Chairman of the Board, Chief Executive Officer, and Director/Trustee of The
Vanguard Group, Inc., and of each of the (1987) investment companies served by
The Vanguard Group.
- --------------------------------------------------------------------------------
INDEPENDENT TRUSTEES
CHARLES D. ELLIS
The Partners of '63 (pro bono ventures in education); Senior Adviser to
Greenwich Associates (international business (2001) strategy consulting);
Successor Trustee of Yale University; Overseer of the Stern School of Business
at New York University; Trustee of the Whitehead Institute for Biomedical
Research.
- --------------------------------------------------------------------------------
RAJIV L. GUPTA
Chairman and Chief Executive Officer (since October 1999), Vice Chairman
(January-September 1999), and Vice (2001) President (prior to September 1999) of
Rohm and Haas Co. (chemicals); Director of Technitrol, Inc. (electronic
components), and Agere Systems (communications components); Board Member of the
American Chemistry Council; Trustee of Drexel University.
- --------------------------------------------------------------------------------
JOANN HEFFERNAN HEISEN
Vice President, Chief Information Officer, and Member of the Executive Committee
of Johnson & Johnson (1998) (pharmaceuticals/consumer products); Director of the
Medical Center at Princeton and Women's Research and Education Institute.
- --------------------------------------------------------------------------------
BURTON G. MALKIEL
Chemical Bank Chairman's Professor of Economics, Princeton University; Director
of Vanguard Investment Series plc (1977) (Irish investment fund) (since November
2001), Vanguard Group (Ireland) Limited (Irish investment management firm)
(since November 2001), Prudential Insurance Co. of America, BKF Capital
(investment management firm), The Jeffrey Co. (holding company), and NeuVis,
Inc. (software company).
- --------------------------------------------------------------------------------
ALFRED M. RANKIN, JR.
Chairman, President, Chief Executive Officer, and Director of NACCO Industries,
Inc. (forklift trucks/housewares/ (1993) lignite); Director of Goodrich
Corporation (industrial products/aircraft systems and services); Director until
1998 of Standard Products Company (a supplier for the automotive industry).
- --------------------------------------------------------------------------------
J. LAWRENCE WILSON
Retired Chairman and Chief Executive Officer of Rohm and Haas Co. (chemicals);
Director of Cummins Inc. (diesel (1985) engines), MeadWestvaco Corp. (paper
products), and AmerisourceBergen Corp. (pharmaceutical distribution); Trustee of
Vanderbilt University.
================================================================================
EXECUTIVE OFFICERS*
R. GREGORY BARTON
Secretary; Managing Director and General Counsel of The Vanguard Group, Inc.
(since September 1997); Secretary of The Vanguard Group and of each of the
investment companies served by The Vanguard Group; Principal of The Vanguard
Group (prior to September 1997).
- --------------------------------------------------------------------------------
THOMAS J. HIGGINS
Treasurer; Principal of The Vanguard Group, Inc.; Treasurer of each of the
investment companies served by The Vanguard Group.
================================================================================
*Officers of the funds are "interested persons" as defined in the Investment
Company Act of 1940.
More information about the trustees is in the Statement of Additional
Information, available from The Vanguard Group.
- --------------------------------------------------------------------------------
VANGUARD SENIOR MANAGEMENT TEAM
MORTIMER J. BUCKLEY, Information Technology.
F. WILLIAM MCNABB, III, Client Relationship Group.
JAMES H. GATELY, Investment Programs and Services.
MICHAEL S. MILLER, Planning and Development.
KATHLEEN C. GUBANICH, Human Resources.
RALPH K. PACKARD, Finance.
IAN A. MACKINNON, Fixed Income Group.
GEORGE U. SAUTER, Quantitative Equity Group.
- --------------------------------------------------------------------------------
JOHN C. BOGLE, Founder; Chairman and Chief Executive Officer, 1974-1996.
- --------------------------------------------------------------------------------
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Q722 062003
Item 2: Code(s) of Ethics for senior financial officers - Item not applicable to
semi-annual report.
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report.
Item 4: Principal Accountant Fees and Services - Item not applicable to
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Item 6: Reserved.
Item 7: Not applicable.
Item 8: Reserved.
Item 9: Controls and Procedures.
(a) Disclosure Controls and Procedures. The Principal Executive and
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and Procedures as of a date within 90 days of the filing date of this report.
(b) Internal Controls. There were no significant changes in Registrant's
internal controls or in other factors that could significantly affect these
controls subsequent to the date of their evaluation, including any corrective
actions with regard to significant deficiencies and material weaknesses.
Item 10: Exhibits attached hereto. (Attach certifications as exhibits)
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
VANGUARD INTERNATIONAL EQUITY INDEX FUNDS
BY:_____________(signature)________________
(HEIDI STAM)
JOHN J. BRENNAN*
CHIEF EXECUTIVE OFFICER
Date: (Insert date used on the certifications)
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
VANGUARD INTERNATIONAL EQUITY INDEX FUNDS
BY:_____________(signature)________________
(HEIDI STAM)
JOHN J. BRENNAN*
CHIEF EXECUTIVE OFFICER
Date: : June 16, 2003
VANGUARD INTERNATIONAL EQUITY INDEX FUNDS
BY:_____________(signature)________________
(HEIDI STAM)
THOMAS J. HIGGINS*
TREASURER
Date: : June 16, 2003
*By Power of Attorney. See File Number 2-57689, filed on December 26, 2002.
Incorporated by Reference.