Exhibit 99.A2
BLDRS INDEX FUNDS TRUST
BLDRS Asia 50 ADR Index Fund
BLDRS Developed Markets 100 ADR Index Fund
BLDRS Emerging Markets 50 ADR Index Fund
BLDRS Europe 100 ADR Index Fund
TRUST INDENTURE AND AGREEMENT
Dated November 8, 2002
Incorporating
Standard Terms and Conditions of
The BLDRS INDEX FUNDS TRUST
and subsequent and similar
BLDRS Index Funds of the
BLDRS Index Funds Trust
Dated and Effective
November 8, 2002
Between
NASDAQ FINANCIAL PRODUCTS SERVICES, INC.
As Sponsor
and
THE BANK OF NEW YORK
As Trustee
THIS TRUST INDENTURE AND AGREEMENT dated November 8, 2002 (the "Indenture"),
between Nasdaq Financial Products Services, Inc., as Sponsor and The Bank of New
York, as Trustee, which sets forth certain of its provisions in full and
incorporates other of its provisions by reference to a document entitled
"Standard Terms and Conditions of the BLDRS Index Funds Trust", dated and
effective as of November 8, 2002, between the parties hereto (hereinafter called
the "Agreement;" together with the Indenture, the "Indenture and Agreement"),
such provisions are as set forth in full and such provisions as are incorporated
by reference constituting a single instrument.
WITNESSETH that:
WHEREAS, the parties hereto have or concurrently herewith entered into
the Agreement in order to facilitate the creation of one or more unit investment
trusts in accordance with the provisions of the Investment Company Act of 1940
and the laws of the State of New York, each such trust may issue redeemable
securities, each representing undivided interests ("Shares") in a BLDRS Index
Fund (as hereinafter defined) that will be composed primarily of Index
Securities (as defined in the Agreement) included from time to time in the
relevant Benchmark ADR Index (as defined in the Agreement);
WHEREAS, the parties now desire to create four (4) different index funds
(each, a "BLDRS Index Fund" or a "Fund"), each of which shall be a separate and
distinct "Trust" or "Trust Fund" as such terms are defined in Section 1.01 of
the Standard Terms and which shall be known as and designated as follows: "BLDRS
Asia 50 ADR Index Fund", "BLDRS Developed Markets 100 ADR Index Fund", "BLDRS
Emerging Markets 50 ADR Index Fund" and "BLDRS Europe 100 ADR Index Fund";
WHEREAS, these Funds shall be subject to the terms and provisions of
this Indenture and of the Agreement, incorporated herein;
NOW, THEREFORE, in consideration of the premises and of the mutual
agreements herein contained, the Sponsor and the Trustee agree as follows:
Section 1. Incorporation of Agreement. Subject to the provisions of
Section 2 hereof, all of the provisions of the Agreement are herein incorporated
by reference in their entirety and shall be deemed to be a part of this
instrument as though said provisions had been set forth in full in this
instrument.
Section 2. Specific Terms of the BLDRS Index Funds. The parties hereby
agree to the following terms for the BLDRS Index Funds:
A. The securities portion of the Initial Portfolio Deposit for each Fund
deposited on the date hereof pursuant to Section 2.02 of the Agreement is
comprised of the securities set forth in Schedule A for each BLDRS Index Fund
attached hereto.
B. The number of Initial Portfolio Deposits received for each BLDRS
Index Fund as of the date of this Indenture is:
BLDRS Asia 50 ADR Index Fund: eight (8)
BLDRS Developed Markets 100 ADR Index Fund: eight (8)
BLDRS Emerging Markets 50 ADR Index Fund: eight (8)
BLDRS Europe 100 ADR Index Fund: eight (8)
C. The Dividend Equivalent Payment made in connection with the Initial
Portfolio Deposit for each BLDRS Index Fund on the date hereof is:
BLDRS Asia 50 ADR Index Fund: zero
BLDRS Developed Markets 100 ADR Index Fund: zero
BLDRS Emerging Markets 50 ADR Index Fund: zero
BLDRS Europe 100 ADR Index Fund: zero
D. (1) The aggregate number of Creation Units outstanding on the Initial
Date of Deposit for each BLDRS Index Fund is:
BLDRS Asia 50 ADR Index Fund: eight (8)
BLDRS Developed Markets 100 ADR Index Fund: eight (8)
BLDRS Emerging Markets 50 ADR Index Fund: eight (8)
BLDRS Europe 100 ADR Index Fund: eight (8)
(2) The initial fractional undivided interest represented by a
Creation Unit of each BLDRS Index Fund shall be:
BLDRS Asia 50 ADR Index Fund: 1/8th
BLDRS Developed Markets 100 ADR Index Fund: 1/8th
BLDRS Emerging Markets 50 ADR Index Fund: 1/8th
BLDRS Europe 100 ADR Index Fund: 1/8th
(3) The number of Shares of each BLDRS Index Fund which, when
aggregated, constitute one Creation Unit, is:
BLDRS Asia 50 ADR Index Fund: 50,000
BLDRS Developed Markets 100 ADR Index Fund: 50,000
BLDRS Emerging Markets 50 ADR Index Fund: 50,000
BLDRS Europe 100 ADR Index Fund: 50,000
E. The Mandatory Termination Date for the Trust and the Funds shall be:
The maturity, redemption, sale or other disposition, as the case may be, of the
last security held by a Fund.
F. The Initial Date of Deposit of the BLDRS Index Funds Trust and each
BLDRS Index Fund is the date hereof.
G. The taxable year of the BLDRS Index Funds Trust and each BLDRS Index
Fund shall be the year ending each September 30.
H. This Indenture may be simultaneously executed in several
counterparts, each of which shall be an original and all of which shall
constitute but one and the same instrument.
IN WITNESS WHEREOF, Nasdaq Financial Products Services, Inc. has caused
this Indenture to be executed by one of its Authorized Signatories and attested
by its Secretary or one of its Assistant Secretaries, and The Bank of New York
has caused this Indenture to be executed by one of its Authorized Signatories
and attested by one of its Authorized Signatories, all as of the date first
above written.
NASDAQ FINANCIAL PRODUCTS
SERVICES, INC.
By: /s/ John L. Jacobs
---------------------------
Authorized Signatory
IN WITNESS WHEREOF, The Bank of New York has caused this Indenture to be
executed by one of its Authorized Signatories and attested by its Secretary or
one of its Assistant Secretaries, and The Bank of New York has caused this
Indenture to be executed by one of its Authorized Signatories and attested by
one of its Authorized Signatories, all as of the date first above written.
THE BANK OF NEW YORK
By: /s/ Alfred Irving
------------------------
Authorized Signatory
STATE OF NEW YORK )
: ss.:
COUNTY OF NEW YORK )
On this 8th day of November, 2002, before me personally appeared John L.
Jacobs, to me known, who, being by me duly sworn, did depose and say that he is
an Authorized Signatory of Nasdaq Financial Products Services, Inc., the
corporation described in and which executed the foregoing instrument; and that
he signed his name thereto by like authority.
-----------------------------
Notary Public
STATE OF NEW YORK )
: ss.:
COUNTY OF NEW YORK )
On this 8th day of November, 2002, before me personally appeared
Alfred Irving, to me known, who, being by me duly sworn, said that he is an
Authorized Signatory of The Bank of New York, the corporation described in and
which executed the foregoing instrument; and that he signed his name thereto by
like authority.
-----------------------------
Notary Public
SCHEDULE A
BLDRS ASIA 50 ADR INDEX FUND
SCHEDULE OF INVESTMENTS
SECURITIES REQUIRED FOR A PORTFOLIO DEPOSIT ON
THE OPENING OF BUSINESS ON NOVEMBER 8, 2002
<Table>
<Caption>
DEPOSITARY RECEIPTS SHARES VALUE
- ------------------- ------- -----------
Amcor Ltd. ADS.................................... 6,424 120,707
Australia & New Zealand Banking Group Ltd. ADS.... 9,384 496,320
Advantest Corp. ADS............................... 9,856 101,517
BHP Billiton Ltd. ADS............................. 57,960 632,344
Canon Inc. ADS.................................... 24,952 931,458
CNOOC Ltd. ADS.................................... 3,456 86,607
China Unicom Ltd. ADS............................. 8,824 60,003
Coles Myer Ltd. ADS............................... 4,624 132,709
CSK Corp. ADS..................................... 2,192 49,101
Fuji Photo Film Co. Ltd. ADS...................... 15,096 442,917
Hitachi Ltd. ADS.................................. 10,416 419,765
Honda Motor Co. Ltd. ADS.......................... 56,200 1,000,360
Infosys Technologies Ltd. ADS..................... 3,016 234,313
Ito-Yokado Co. Ltd. ADS........................... 11,336 328,744
James Hardie Industries N.V. ADS.................. 2,816 50,125
Kookmin Bank ADS.................................. 8,960 306,880
Korea Electric Power Corp. ADS.................... 9,992 83,733
Kirin Brewery Co. Ltd. ADS........................ 29,232 180,069
KT Corp. ADS...................................... 9,552 196,007
Kubota Corp. ADS.................................. 7,704 100,922
Kyocera Corp. ADS................................. 5,584 351,457
Mitsubishi Tokyo Financial Group Inc. ADS......... 178,216 1,158,404
Matsushita Electric Industrial Co. ADS............ 78,304 814,362
Mitsui & Co. Ltd. ADS............................. 2,472 231,132
National Australia Bank Ltd. ADS.................. 9,608 870,485
NEC Corp. ADS..................................... 49,056 188,424
Nidec Corp. ADS (Nihon Densan Kabushikikaisha).... 1,376 84,693
Nomura Holdings Inc. ADS.......................... 61,264 701,473
Nissan Motor Co. Ltd. ADS......................... 39,264 596,813
Nippon Telegraph & Telephone Corp. ADS............ 20,144 400,866
News Corp. Ltd. ADS............................... 11,600 299,512
News Corp. Ltd. ADS Vtg Ord Pfd................... 23,232 508,781
Telecom Corp. of New Zealand ADS.................. 5,488 104,162
Pioneer Corp. ADS................................. 5,608 100,944
POSCO ADS......................................... 2,920 69,934
Sanyo Electric Co. Ltd. ADS....................... 11,688 164,789
SK Telecom Co. ADS................................ 12,936 270,492
Sony Corp. ADS.................................... 26,704 1,149,607
Santos Ltd. ADS................................... 4,512 62,627
TDK Corp. ADS..................................... 4,160 174,720
Telekomunikasi Indonesia ADS...................... 7,192 46,748
Telstra Corp. Ltd. ADS............................ 28,112 379,512
Toyota Motor Corp. ADS............................ 50,528 2,613,308
Trend Micro Inc. ADS.............................. 2,960 68,998
Taiwan Semiconductor Manufacturing Co. ADS........ 93,264 825,386
United Microelectronics Corp. ADS................. 72,448 336,159
Westpac Banking Corp. ADS......................... 10,936 441,158
WMC Ltd. ADS...................................... 8,680 151,812
China Mobile (Hong Kong) Ltd. ADS................. 25,752 322,930
PetroChina Co. Ltd. ADS........................... 3,272 61,022
-----------
Total Investments................................. $19,505,311
===========
</Table>
SCHEDULE A
BLDRS DEVELOPED MARKETS 100
ADR INDEX FUND
SCHEDULE OF INVESTMENTS
SECURITIES REQUIRED FOR A PORTFOLIO DEPOSIT ON
THE OPENING OF BUSINESS ON NOVEMBER 8, 2002
<Table>
<Caption>
DEPOSITARY RECEIPTS SHARES VALUE
------------------- ------ -----------
Anglo American PLC ADS............................. 9,192 $ 126,675
ABN Amro Holding N.V. ADS.......................... 9,432 143,649
Allied Domecq PLC ADS.............................. 1,888 48,144
Aegon N.V. Ord Shares.............................. 8,592 112,727
Koninklijke Ahold N.V. ADS......................... 6,328 79,606
Allied Irish Banks PLC ADS......................... 3,048 85,435
Akzo Nobel N.V. ADS................................ 1,736 51,368
Australia & New Zealand Banking Group Ltd. ADS..... 2,048 108,319
Aventis S.A. ADS................................... 4,680 279,864
AXA S.A. ADS....................................... 9,392 129,046
Allianz AG ADS..................................... 12,928 147,121
AstraZeneca PLC ADS................................ 11,160 413,590
Six Continents PLC ADS............................. 5,896 50,588
Bayer AG ADS....................................... 4,680 92,617
Banco Bilbao Vizcaya Argentaria S.A. ADS........... 21,752 207,297
Barclays PLC ADS................................... 11,248 322,818
BHP Billiton Ltd. ADS.............................. 12,656 138,077
BOC Group PLC ADS.................................. 1,696 46,301
BP PLC ADS......................................... 25,512 954,149
BG Group PLC ADS................................... 4,808 95,150
British Sky Broadcasting Group PLC ADS............. 1,368 79,481
British American Tobacco PLC ADS................... 5,368 108,917
BT Group PLC ADS................................... 5,904 186,803
Canon Inc. ADS..................................... 5,448 203,374
CRH PLC ADS........................................ 3,560 45,924
Cadbury Schweppes PLC ADS.......................... 3,504 92,295
Credit Suisse Group ADS............................ 8,104 156,245
Groupe Danone ADS.................................. 4,576 119,434
Diageo PLC ADS..................................... 5,648 253,143
Deutsche Telekom AG ADS............................ 16,368 183,322
ENI S.p.A. ADS..................................... 3,800 257,640
Endesa S.A. ADS.................................... 6,856 74,456
Enel S.p.A. ADS.................................... 2,624 65,075
Reed Elsevier N.V. ADS............................. 2,384 62,652
Fuji Photo Film Co. Ltd. ADS....................... 3,296 96,705
Gallaher Group PLC ADS............................. 1,104 44,447
GlaxoSmithKline PLC ADS............................ 20,632 818,265
HSBC Holdings PLC ADS.............................. 12,880 736,865
Hitachi Ltd. ADS................................... 2,272 91,562
Honda Motor Co. Ltd. ADS........................... 12,272 218,442
Sanpaolo IMI S.p.A. ADS............................ 4,248 53,950
ING Groep N.V. ADS................................. 11,232 183,082
Governor & Co. of the Bank of Ireland ADS.......... 1,720 76,832
Imperial Tobacco Group PLC......................... 2,488 78,248
Ito-Yokado Co. Ltd. ADS............................ 2,472 71,688
Royal KPN N.V. ADS................................. 11,640 68,094
Kyocera Corp. ADS.................................. 1,216 76,535
Lafarge ADS........................................ 3,616 72,248
Lloyds TSB Group PLC ADS........................... 9,512 346,237
Mitsubishi Tokyo Financial Group Inc. ADS.......... 38,912 252,928
Matsushita Electric Industrial Co. ADS............. 17,096 177,798
Mitsui & Co. Ltd. ADS.............................. 536 50,116
National Australia Bank Ltd. ADS................... 2,096 189,898
National Grid Transco PLC ADS...................... 4,224 148,685
Norsk Hydro ASA ADS................................ 1,024 40,724
NEC Corp. ADS...................................... 10,712 41,145
Nomura Holdings Inc. ADS........................... 13,376 153,155
Nokia Corp. ADS.................................... 32,384 557,005
Nissan Motor Co. Ltd. ADS.......................... 8,568 130,234
Nippon Telegraph & Telephone Corp. ADS............. 4,400 87,560
Novo Nordisk A/S ADS............................... 1,496 44,386
Novartis AG ADS.................................... 18,008 689,526
News Corp. Ltd. ADS................................ 2,536 65,480
News Corp. Ltd. ADS Vtg Ord Pfd.................... 5,072 111,077
Amersham PLC ADS................................... 960 43,190
mmO2 PLC ADS....................................... 5,912 48,597
Koninklijke Philips Electronics N.V. ADS........... 8,688 152,474
Pearson PLC ADS.................................... 5,456 60,016
Portugal Telecom SGPS S/A ADS...................... 7,728 46,754
Prudential PLC ADS................................. 6,800 99,280
Royal Dutch Petroleum Co. ADS...................... 14,264 612,211
Repsol YPF S.A. ADS................................ 6,560 72,947
Rio Tinto PLC ADS.................................. 1,816 143,827
Reed Elsevier PLC ADS.............................. 2,152 80,700
Sanyo Electric Co. Ltd. ADS........................ 2,552 35,981
SAP AG ADS......................................... 5,616 110,074
Shell Transport & Trading Co. PLC ADS.............. 11,008 418,414
Stora Enso Oyj ADS................................. 4,224 45,492
Schering AG ADS.................................... 1,216 58,623
Siemens AG ADS..................................... 5,672 261,479
Sony Corp. ADS..................................... 5,832 251,068
Sanofi-Synthelabo ADS.............................. 5,288 155,520
Scottish Power PLC ADS............................. 3,160 71,100
Banco Santander Central Hispano S.A. ADS........... 32,488 196,228
STMicroelectronics N.V. ADS........................ 3,944 80,694
SUEZ ADS........................................... 6,520 117,816
Telefonica S.A. ADS................................ 10,432 296,686
Telecom Italia S.p.A. ADS.......................... 1,616 132,835
Telstra Corp. Ltd. ADS............................. 6,136 82,836
Toyota Motor Corp. ADS............................. 11,032 570,575
TotalFinaElf ADS................................... 9,656 654,677
Unilever PLC ADS................................... 4,960 194,035
Unilever N.V. ADS.................................. 3,896 248,954
UPM Kymmene Corp. ADS.............................. 1,768 59,140
Vivendi Universal ADS.............................. 6,648 89,083
E.ON AG ADS........................................ 4,352 203,108
Vodafone Group PLC ADS............................. 46,432 744,769
Westpac Banking Corp. ADS.......................... 2,392 96,492
WPP Group PLC ADS.................................. 1,568 56,385
BASF AG ADS........................................ 3,600 133,415
-----------
Total Investments.................................. $18,019,694
===========
</Table>
SCHEDULE OF INVESTMENTS - CONT'D
BLDRS EMERGING MARKETS 50 ADR INDEX FUND
SCHEDULE OF INVESTMENTS
SECURITIES REQUIRED FOR A PORTFOLIO DEPOSIT ON
THE OPENING OF BUSINESS ON NOVEMBER 8, 2002
<Table>
<Caption>
DEPOSITARY RECEIPTS SHARES VALUE
- ------------------- ------- -----------
America Movil S.A. de C.V. ADS.................... 40,792 554,363
AngloGold Ltd. ADS................................ 10,800 309,312
AU Optronics Corp. ADS............................ 24,792 176,271
Banco Bradesco S.A. ADS........................... 11,080 140,494
Companhia de Bebidas das Americas ADS............. 23,632 342,664
Compania de Minas Buenaventura S.A. ADS........... 6,288 146,448
CNOOC Ltd. ADS.................................... 11,464 287,288
China Unicom Ltd. ADS............................. 29,280 199,104
Compania de Telecomunicaciones de Chile S.A....... 12,752 118,339
Cemex S.A. de C.V. ADS............................ 31,832 707,307
Embraer Empresa Braziliera de Aeronautica S/A..... 8,328 134,331
Fomento Economico Mexicano S.A. de C.V. ADS....... 4,656 170,875
Gold Fields Ltd. ADS.............................. 34,536 409,597
HDFC Bank Ltd. ADS................................ 9,712 130,529
Harmony Gold Mining Co. Ltd. ADS.................. 17,520 261,924
Huaneng Power International Inc................... 3,880 115,857
ICICI Bank Ltd. ADS............................... 20,944 113,098
Infosys Technologies Ltd. ADS..................... 10,000 776,900
Banco Itau S.A. ADS............................... 10,632 218,700
Kookmin Bank ADS.................................. 29,720 1,017,910
Korea Electric Power Corp. ADS.................... 33,136 277,680
KT Corp. ADS...................................... 31,672 649,909
Mobile Telesystems ADS............................ 10,320 363,264
Magyar Tavkozlesi Vallalat Rt. ADS................ 8,696 136,440
Macronix International Co. ADS.................... 28,664 102,904
Petroleo Brasileiro S/A ADS....................... 29,080 372,515
Petroleo Brasileiro S/A ADS A..................... 39,160 457,389
POSCO ADS......................................... 9,688 232,028
Dr. Reddy's Laboratories Ltd. ADS................. 6,000 85,140
Companhia Vale do Rio Doce ADS Cl A Pfd........... 14,344 363,620
Companhia Vale do Rio Doce ADS.................... 12,344 328,104
Sasol Ltd. ADS.................................... 58,544 651,595
Satyam Computer Services Ltd. ADS................. 16,280 184,290
SK Telecom Co. ADS................................ 42,912 897,290
China Petroleum & Chemical Corp. ADS.............. 10,160 157,175
Sappi Ltd. ADS.................................... 21,816 258,520
Brasil Telecom Participacoes S/A.................. 4,552 118,124
Teva Pharmaceutical Industries Ltd. ADS........... 13,240 975,523
Telekomunikasi Indonesia ADS...................... 23,848 155,012
Telefonos de Mexico S.A. de C.V. ADS.............. 38,344 1,185,596
Tele Norte Leste Participacoes S.A. ADS........... 26,104 174,114
Tatneft ADS....................................... 7,552 113,129
Taiwan Semiconductor Manufacturing Co. ADS........ 309,376 2,737,978
Grupo Televisa S.A. de C.V. ADS................... 8,328 238,680
Unibanco-Uniao de Bancos Brasileiros S/A GDS...... 7,496 66,115
United Microelectronics Corp. ADS................. 240,304 1,115,011
Vimpel Communications ADS......................... 3,624 105,531
Wipro Ltd. ADS.................................... 3,848 114,709
China Mobile (Hong Kong) Ltd. ADS................. 85,408 1,071,015
PetroChina Co. Ltd. ADS........................... 10,840 202,165
-----------
Total Investments................................. $20,221,876
===========
</Table>
SCHEDULE A
BLDRS EUROPE 100 ADR INDEX FUND
SCHEDULE OF INVESTMENTS
SECURITIES REQUIRED FOR A PORTFOLIO DEPOSIT ON
THE OPENING OF BUSINESS ON NOVEMBER 8, 2002
<Table>
<Caption>
DEPOSITARY RECEIPTS SHARES VALUES
------------------- ------ -----------
Anglo American PLC ADS............................. 10,672 $ 147,071
ABB Ltd. ADS....................................... 8,568 17,393
ABN Amro Holding N.V. ADS.......................... 10,944 166,677
Adecco S.A. ADS.................................... 3,912 36,421
Allied Domecq PLC ADS.............................. 2,192 55,896
Aegon N.V. Ord Shares.............................. 9,976 130,885
Koninklijke Ahold N.V. ADS......................... 7,344 92,388
Allied Irish Banks PLC ADS......................... 3,544 99,338
Akzo Nobel N.V. ADS................................ 2,016 59,653
Alcatel S.A. ADS................................... 9,128 45,275
Aventis S.A. ADS................................... 5,440 325,312
Amvescap PLC ADS................................... 3,128 41,665
AXA S.A. ADS....................................... 10,896 149,711
Allianz AG ADS..................................... 15,000 170,700
AstraZeneca PLC ADS................................ 12,960 480,298
Six Continents PLC ADS............................. 6,848 58,756
Bayer AG ADS....................................... 5,432 107,499
Banco Bilbao Vizcaya Argentaria S.A. ADS........... 25,256 240,690
Barclays PLC ADS................................... 13,056 374,707
BOC Group PLC ADS.................................. 1,968 53,726
BP PLC ADS......................................... 29,616 1,107,638
Banco Comercial Portugues S.A. ADS................. 3,096 34,675
BG Group PLC ADS................................... 5,584 110,507
British Sky Broadcasting Group PLC ADS............. 1,592 92,495
British American Tobacco PLC ADS................... 6,232 126,447
BT Group PLC ADS................................... 6,856 216,924
CRH PLC ADS........................................ 4,136 53,354
Ciba Specialty Chemicals Holdings Inc. ADS......... 1,048 37,833
Cadbury Schweppes PLC ADS.......................... 4,064 107,046
Credit Suisse Group ADS............................ 9,400 181,232
Cable & Wireless PLC ADS........................... 5,944 39,765
Groupe Danone ADS.................................. 5,312 138,643
Diageo PLC ADS..................................... 6,560 294,019
Deutsche Telekom AG ADS............................ 19,000 212,800
ENI S.p.A. ADS..................................... 4,408 298,862
Endesa S.A. ADS.................................... 7,952 86,359
Electrolux AB ADS.................................. 1,296 38,439
Enel S.p.A. ADS.................................... 3,048 75,590
Reed Elsevier N.V. ADS............................. 2,768 72,743
France Telecom ADS................................. 3,320 41,035
Gallaher Group PLC ADS............................. 1,280 51,533
GlaxoSmithKline PLC ADS............................ 23,952 949,936
Gucci Group N.V.................................... 392 35,888
Hanson PLC ADS..................................... 1,160 26,993
HSBC Holdings PLC ADS.............................. 14,944 854,946
Imperial Chemical Industries PLC ADS............... 2,352 37,820
Sanpaolo IMI S.p.A. ADS............................ 4,936 62,687
ING Groep N.V. ADS................................. 13,040 212,552
Governor & Co. of the Bank of Ireland ADS.......... 1,992 88,983
Imperial Tobacco Group PLC......................... 2,880 90,576
Royal KPN N.V. ADS................................. 13,512 79,045
Lafarge ADS........................................ 4,200 83,916
Lloyds TSB Group PLC ADS........................... 11,040 401,856
National Grid Transco PLC ADS...................... 4,904 172,621
Norsk Hydro ASA ADS................................ 1,184 47,088
Nokia Corp. ADS.................................... 37,592 646,582
Novo Nordisk A/S ADS............................... 1,736 51,507
Novartis AG ADS.................................... 20,904 800,414
Amersham PLC ADS................................... 1,112 50,029
mmO2 PLC ADS....................................... 6,856 56,356
Koninklijke Philips Electronics N.V. ADS........... 10,080 176,904
P&O Princess Cruises PLC ADS....................... 1,368 44,310
Pearson PLC ADS.................................... 6,336 69,696
Portugal Telecom SGPS S/A ADS...................... 8,968 54,256
Prudential PLC ADS................................. 7,896 115,282
Royal Dutch Petroleum Co. ADS...................... 16,560 710,755
Repsol YPF S.A. ADS................................ 7,616 84,690
Rio Tinto PLC ADS.................................. 2,104 166,637
Reuters Group PLC ADS.............................. 1,888 36,250
Reed Elsevier PLC ADS.............................. 2,504 93,900
Ryanair Holdings PLC ADS........................... 1,112 47,872
SAP AG ADS......................................... 6,512 127,635
Shell Transport & Trading Co. PLC ADS.............. 12,776 485,616
Swisscom AG ADS.................................... 1,656 49,597
Stora Enso Oyj ADS................................. 4,904 52,816
Shire Pharmaceuticals Group PLC ADS................ 1,272 31,533
Schering AG ADS.................................... 1,408 67,880
Siemens AG ADS..................................... 6,584 303,522
Smith & Nephew PLC ADS............................. 664 38,147
Sanofi-Synthelabo ADS.............................. 6,136 180,460
Scottish Power PLC ADS............................. 3,664 82,440
Banco Santander Central Hispano S.A. ADS........... 37,712 227,780
STMicroelectronics N.V. ADS........................ 4,584 93,789
Syngenta AG ADS.................................... 4,008 48,657
SUEZ ADS........................................... 7,568 136,754
Telefonica S.A. ADS................................ 12,112 344,465
Telecom Italia S.p.A. ADS.......................... 1,872 153,878
TotalFinaElf ADS................................... 11,208 759,902
TPG N.V. ADS....................................... 2,480 42,805
Unilever PLC ADS................................... 5,760 225,331
Unilever N.V. ADS.................................. 4,520 288,828
UPM Kymmene Corp. ADS.............................. 2,056 68,773
United Utilities PLC ADS........................... 2,200 43,120
Vivendi Universal ADS.............................. 7,720 103,448
Vivendi Environnement ADS.......................... 1,672 38,222
E.ON AG ADS........................................ 5,056 235,964
Vodafone Group PLC ADS............................. 53,896 864,492
Wolseley PLC ADS (Each rep. 5 Ord. Shares)......... 912 40,585
WPP Group PLC ADS.................................. 1,824 65,592
BASF AG ADS........................................ 4,184 155,060
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TOTAL INVESTMENTS.................................. $17,979,438
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