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: 811-21145
--------------------------------------------------
STREETTRACKS INDEX SHARES FUNDS
(FORMERLY FRESCO INDEX SHARES FUNDS)
- --------------------------------------------------------------------------------
(Exact name of registrant as specified in charter)
One Lincoln Street, Boston, Massachusetts 02111
- --------------------------------------------------------------------------------
(Address of principal executive offices) (zip code)
Scott M. Zoltowski, Esq.
State Street Bank and Trust Company
One Lincoln Street
Boston, MA 02111
(Name and address of agent for service)
Copy to:
Stuart Strauss, Esq.
Clifford Chance US LLP
31 West 52nd Street
New York, New York 10019
Registrant's telephone number, including area code: (866) 787-2257
Date of fiscal year end: September 30th
Date of reporting period: March 31, 2006
ITEM 1: SHAREHOLDER REPORT
streetTRACKS(R)
Index Shares Funds
SEMI-ANNUAL REPORT
MARCH 31, 2006
[streetTRACKS Logo/semi-annual report]
STREETTRACKS DOW JONES STOXX 50 FUND -- PERFORMANCE SUMMARY
The following Performance chart of the Fund's total return at net asset value to
the total return based on market price and its benchmark index is provided for
comparative purposes only and represents the periods noted. The Fund's per share
net asset value ("NAV") is the value of one share of the Fund and is calculated
by dividing the value of total assets less total liabilities by the number of
shares outstanding. The NAV return is based on the NAV of the Fund and the
market return is based on the market price per share of the Fund. The market
price used to calculate the market return is determined by using the midpoint
between the highest bid and the lowest offer price on the exchange on which the
shares of the Fund are listed for trading, as of the time that the Fund's NAV is
calculated. NAV and market returns assume that dividends and capital gain
distributions have been reinvested in the Fund at NAV. Market returns do not
include brokerage commission that may be payable on secondary market
transactions. If brokerage commissions were included, market returns would be
lower.
An index is a statistical measure of a specified financial market or sector. An
index does not actually hold a portfolio of securities and therefore does not
reflect deductions for fees or expenses. In comparison, the Fund's performance
is negatively impacted by these deductions.
PERFORMANCE QUOTED REPRESENTS PAST PERFORMANCE AND PAST PERFORMANCE DOES NOT
GUARANTEE FUTURE RESULTS. CURRENT PERFORMANCE MAY BE HIGHER OR LOWER THAN THE
PERFORMANCE QUOTED. FOR THE MOST RECENT MONTH END PERFORMANCE INFORMATION VISIT
WWW.STREETTRACKS.COM. INVESTMENT IN THE FUND POSES INVESTMENT RISK INCLUDING THE
POSSIBLE LOSS OF PRINCIPAL. THE INVESTMENT RETURN AND PRINCIPAL VALUE OF AN
INVESTMENT WILL FLUCTUATE, SO THAT SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR
LESS THAN THEIR ORIGINAL COST. THE RETURNS DO NOT REFLECT THE DEDUCTION OF TAXES
THAT A SHAREHOLDER WOULD PAY ON FUND DISTRIBUTIONS OR ON THE REDEMPTION OF FUND
SHARES.
PERFORMANCE AS OF MARCH 31, 2006
<Table>
<Caption>
-------------------------------------------------------------------------------------
CUMULATIVE TOTAL RETURN
-------------------------------------------------
NET ASSET MARKET
VALUE VALUE
-------------------------------------------------------------------------------------
SIX MONTHS ENDED 3/31/06 8.90% 8.93%
-------------------------------------------------------------------------------------
ONE YEAR ENDED 3/31/06 16.74% 16.45%
-------------------------------------------------------------------------------------
THREE YEARS ENDED 3/31/06 99.84% 100.21%
-------------------------------------------------------------------------------------
SINCE INCEPTION OF TRADING (1) 82.57% 78.00%
-------------------------------------------------------------------------------------
<Caption>
----------------------------------- ------------------------------------------------
CUMULATIVE TOTAL RETURN
------------------------------------------------
DOW JONES STOXX 50 INDEX
(Broad-Based Comparative Index)
-------------------------------------------------------------------------------------
SIX MONTHS ENDED 3/31/06 9.17%
-------------------------------------------------------------------------------------
ONE YEAR ENDED 3/31/06 17.24%
-------------------------------------------------------------------------------------
THREE YEARS ENDED 3/31/06 101.50%
-------------------------------------------------------------------------------------
SINCE INCEPTION OF TRADING (1) 83.93%
-------------------------------------------------------------------------------------
</Table>
<Table>
<Caption>
-------------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
-------------------------------------------------
NET ASSET MARKET
VALUE VALUE
-------------------------------------------------------------------------------------
ONE YEAR ENDED 3/31/06 16.74% 16.45%
-------------------------------------------------------------------------------------
THREE YEARS ENDED 3/31/06 25.96% 26.04%
-------------------------------------------------------------------------------------
SINCE INCEPTION OF TRADING (1) 19.12% 18.24%
-------------------------------------------------------------------------------------
<Caption>
----------------------------------- ------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
------------------------------------------------
DOW JONES STOXX 50 INDEX
(Broad-Based Comparative Index)
-------------------------------------------------------------------------------------
ONE YEAR ENDED 3/31/06 17.24%
-------------------------------------------------------------------------------------
THREE YEARS ENDED 3/31/06 26.31%
-------------------------------------------------------------------------------------
SINCE INCEPTION OF TRADING (1) 19.37%
-------------------------------------------------------------------------------------
</Table>
(1) For the period October 21, 2002 (commencement of trading) to March 31,
2006.
1
[streetTRACKS Logo/semi-annual report]
STREETTRACKS DOW JONES STOXX 50 FUND --
PERFORMANCE SUMMARY (CONTINUED)
COMPARISON OF CHANGE IN VALUE OF A $10,000 INVESTMENT
STREETTRACKS DOW JONES STOXX 50 FUND (BASED ON NET ASSET VALUE)
[Line Graph]
<Table>
<Caption>
STREETTRACKS DOW JONES DOW JONES STOXX 50 INDEX - US
STOXX 50 FUND DOLLAR DENOMINATED
---------------------- -----------------------------
10/15/02 10000 10000
12/31/02 10059 9978
3/31/03 9129 9132
6/30/03 11098 11096
9/30/03 11279 11287
12/31/03 13631 13660
3/31/04 13384 13423
6/30/04 13524 13552
9/30/04 13776 13815
12/31/04 15710 15814
3/31/05 15626 15695
6/30/05 15612 15682
9/30/05 16751 16856
12/31/05 16872 16994
3/31/06 18242 18401
</Table>
2
[streetTRACKS Logo/semi-annual report]
STREETTRACKS DOW JONES STOXX 50 FUND -- PORTFOLIO SUMMARY
TOP FIVE HOLDINGS AS OF MARCH 31, 2006
<Table>
-----------------------------------------------------------------------------------------------------
DESCRIPTION HSBC
HOLDINGS GLAXOSMITHKLINE
BP PLC PLC PLC TOTAL SA NOVARTIS AG
-----------------------------------------------------------------------------------------------------
MARKET VALUE 1,720,325 1,411,262 1,385,218 1,173,558
$2,118,207
-----------------------------------------------------------------------------------------------------
% OF 6.24% 5.07 4.16 4.08 3.46
NET ASSETS
-----------------------------------------------------------------------------------------------------
</Table>
(The five largest holdings are subject to change, and there are no
guarantees the Fund will continue to remain invested in any particular
company.)
INDUSTRY BREAKDOWN AS OF MARCH 31, 2006*
[Pie Chart]
<Table>
AUTOMOBILES & PARTS 1.4
BANKS 29.8
OTHER ASSETS 0.7
BASIC RESOURCES 3.0
CHEMICALS 1.1
FOOD & BEVERAGES 5.4
HEALTH CARE 12.5
INDUSTRIAL GOODS & SERVICES 2.1
INSURANCE 7.3
OIL & GAS 15.5
PERSONAL & HOUSEHOLD GOODS 1.8
RETAIL 2.1
TECHNOLOGY 5.0
TELECOMMUNICATIONS 9.1
UTILITIES 3.2
</Table>
* The Fund's industry breakdown is expressed as a percentage of net assets and
may change over time.
3
[streetTRACKS Logo/semi-annual report]
STREETTRACKS DOW JONES EURO STOXX 50 FUND -- PERFORMANCE SUMMARY
The following Performance chart of the Fund's total return at net asset value to
the total return based on market price and its benchmark index is provided for
comparative purposes only and represents the periods noted. The Fund's per share
net asset value ("NAV") is the value of one share of the Fund and is calculated
by dividing the value of total assets less total liabilities by the number of
shares outstanding. The NAV return is based on the NAV of the Fund and the
market return is based on the market price per share of the Fund. The market
price used to calculate the market return is determined by using the midpoint
between the highest bid and the lowest offer price on the exchange on which the
shares of the Fund are listed for trading, as of the time that the Fund's NAV is
calculated. NAV and market returns assume that dividends and capital gain
distributions have been reinvested in the Fund at NAV. Market returns do not
include brokerage commission that may be payable on secondary market
transactions. If brokerage commissions were included, market returns would be
lower.
An index is a statistical measure of a specified financial market or sector. An
index does not actually hold a portfolio of securities and therefore does not
reflect deductions for fees or expenses. In comparison, the Fund's performance
is negatively impacted by these deductions.
PERFORMANCE QUOTED REPRESENTS PAST PERFORMANCE AND PAST PERFORMANCE DOES NOT
GUARANTEE FUTURE RESULTS. CURRENT PERFORMANCE MAY BE HIGHER OR LOWER THAN THE
PERFORMANCE QUOTED. FOR THE MOST RECENT MONTH END PERFORMANCE INFORMATION VISIT
WWW.STREETTRACKS.COM. INVESTMENT IN THE FUND POSES INVESTMENT RISK INCLUDING THE
POSSIBLE LOSS OF PRINCIPAL. THE INVESTMENT RETURN AND PRINCIPAL VALUE OF AN
INVESTMENT WILL FLUCTUATE, SO THAT SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR
LESS THAN THEIR ORIGINAL COST. THE RETURNS DO NOT REFLECT THE DEDUCTION OF TAXES
THAT A SHAREHOLDER WOULD PAY ON FUND DISTRIBUTIONS OR ON THE REDEMPTION OF FUND
SHARES.
PERFORMANCE AS OF MARCH 31, 2006
<Table>
<Caption>
-------------------------------------------------------------------------------------
CUMULATIVE TOTAL RETURN
-------------------------------------------------
NET ASSET MARKET
VALUE VALUE
-------------------------------------------------------------------------------------
SIX MONTHS ENDED 3/31/06 13.13% 13.44%
-------------------------------------------------------------------------------------
ONE YEAR ENDED 3/31/06 20.06% 20.94%
-------------------------------------------------------------------------------------
THREE YEARS ENDED 3/31/06 125.21% 125.70%
-------------------------------------------------------------------------------------
SINCE INCEPTION OF TRADING (1) 102.25% 98.04%
-------------------------------------------------------------------------------------
<Caption>
----------------------------------- ------------------------------------------------
CUMULATIVE TOTAL RETURN
------------------------------------------------
DOW JONES EURO STOXX 50 INDEX
-------------------------------------------------------------------------------------
SIX MONTHS ENDED 3/31/06 13.30%
-------------------------------------------------------------------------------------
ONE YEAR ENDED 3/31/06 20.33%
-------------------------------------------------------------------------------------
THREE YEARS ENDED 3/31/06 125.36%
-------------------------------------------------------------------------------------
SINCE INCEPTION OF TRADING (1) 102.40%
-------------------------------------------------------------------------------------
</Table>
<Table>
<Caption>
-------------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
-------------------------------------------------
NET ASSET MARKET
VALUE VALUE
-------------------------------------------------------------------------------------
ONE YEAR ENDED 3/31/06 20.06% 20.94%
-------------------------------------------------------------------------------------
THREE YEARS ENDED 3/31/06 31.08% 31.17%
-------------------------------------------------------------------------------------
SINCE INCEPTION OF TRADING (1) 22.71% 21.97%
-------------------------------------------------------------------------------------
<Caption>
----------------------------------- ------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
------------------------------------------------
DOW JONES EURO STOXX 50 INDEX
-------------------------------------------------------------------------------------
ONE YEAR ENDED 3/31/06 20.33%
-------------------------------------------------------------------------------------
THREE YEARS ENDED 3/31/06 31.07%
-------------------------------------------------------------------------------------
SINCE INCEPTION OF TRADING (1) 22.74%
-------------------------------------------------------------------------------------
</Table>
(1) For the period October 21, 2002 (commencement of trading) to March 31,
2006.
4
[streetTRACKS Logo/semi-annual report]
STREETTRACKS DOW JONES EURO STOXX 50 FUND --
PERFORMANCE SUMMARY (CONTINUED)
COMPARISON OF CHANGE IN VALUE OF A $10,000 INVESTMENT
STREETTRACKS DOW JONES EURO STOXX 50 FUND (BASED ON NET ASSET VALUE)
[Line Graph]
<Table>
<Caption>
STREETTRACKS DOW JONES EURO DOW JONES EURO STOXX 50
STOXX 50 FUND INDEX - US DOLLAR DENOMINATED
--------------------------- -----------------------------
10/15/02 10000 10000
12/31/02 10343 10283
3/31/03 9148 9156
6/30/03 11657 11641
9/30/03 11746 11732
12/31/03 14658 14657
3/31/04 14443 14452
6/30/04 14685 14664
9/30/04 14590 14562
12/31/04 17299 17325
3/31/05 17161 17147
6/30/05 16958 16927
9/30/05 18211 18212
12/31/05 18626 18636
3/31/06 20603 20633
</Table>
5
[streetTRACKS Logo/semi-annual report]
STREETTRACKS DOW JONES EURO STOXX 50 FUND -- PORTFOLIO SUMMARY
TOP FIVE HOLDINGS AS OF MARCH 31, 2006
<Table>
------------------------------------------------------------------------------------------------------------------
DESCRIPTION
SANOFI- BANCO SANTANDER
TOTAL SA AVENTIS CENTRAL HISPANO SA NOKIA OYJ BNP PARIBAS SA
------------------------------------------------------------------------------------------------------------------
MARKET VALUE $11,804,913 7,637,454 7,038,689 6,559,855 6,215,434
------------------------------------------------------------------------------------------------------------------
% OF 6.41% 4.15 3.82 3.56 3.37
NET ASSETS
------------------------------------------------------------------------------------------------------------------
</Table>
(The five largest holdings are subject to change, and there are no
guarantees the Fund will continue to remain invested in any particular
company.)
INDUSTRY BREAKDOWN AS OF MARCH 31, 2006*
[Pie Chart]
* The Fund's industry breakdown is expressed as a percentage of net assets and
may change over time.
6
STREETTRACKS DOW JONES STOXX 50 FUND
PORTFOLIO OF INVESTMENTS
MARCH 31, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
SECURITY DESCRIPTION SHARES VALUE
- -------------------- ------ -----
COMMON STOCKS -- 99.3%
FINLAND -- 2.3%
TECHNOLOGY -- 2.3%
Nokia Oyj (a)........................ 37,237 $ 769,665
-----------
FRANCE -- 13.2%
BANKS -- 3.8%
BNP Paribas SA....................... 7,891 731,953
Societe Generale (a)................. 3,693 554,613
-----------
1,286,566
-----------
INSURANCE -- 1.5%
AXA (a).............................. 14,525 509,042
-----------
OIL & GAS -- 4.1%
Total SA (a)......................... 5,258 1,385,218
-----------
PERSONAL & HOUSEHOLD GOODS -- 0.7%
L'Oreal SA........................... 2,647 232,878
-----------
RETAIL -- 0.9%
Carrefour SA......................... 5,552 294,953
-----------
TELECOMMUNICATIONS -- 1.0%
France Telecom SA (a)................ 15,259 342,723
-----------
UTILITIES -- 1.2%
Suez SA.............................. 10,590 416,760
-----------
TOTAL FRANCE......................... 4,468,140
-----------
GERMANY -- 12.4%
AUTOMOBILES & PARTS -- 1.4%
DaimlerChrysler AG (a)............... 8,513 488,315
-----------
BANKS -- 1.6%
Deutsche Bank AG (a)................. 4,653 530,705
-----------
CHEMICALS -- 1.1%
BASF AG (a).......................... 4,658 364,706
-----------
INDUSTRIAL GOODS & SERVICES -- 2.1%
Siemens AG........................... 7,529 701,928
-----------
INSURANCE -- 1.8%
Allianz AG (a)....................... 3,677 613,083
-----------
TECHNOLOGY -- 1.2%
SAP AG (a)........................... 1,943 420,910
-----------
TELECOMMUNICATIONS -- 1.2%
Deutsche Telekom AG (a).............. 23,760 400,244
-----------
UTILITIES -- 2.0%
E.ON AG (a).......................... 6,258 687,715
-----------
TOTAL GERMANY........................ 4,207,606
-----------
ITALY -- 3.9%
INSURANCE -- 1.1%
Assicurazioni Generali SpA........... 10,110 380,252
-----------
OIL & GAS -- 1.9%
Eni SpA.............................. 22,581 641,623
-----------
TELECOMMUNICATIONS -- 0.9%
Telecom Italia SpA................... 98,449 286,825
-----------
TOTAL ITALY.......................... 1,308,700
-----------
</Table>
<Table>
<Caption>
SECURITY DESCRIPTION SHARES VALUE
- -------------------- ------ -----
NETHERLANDS -- 7.0%
BANKS -- 2.8%
ABN AMRO Holding NV.................. 17,294 $ 517,767
Fortis............................... 11,766 419,185
-----------
936,952
-----------
FOOD & BEVERAGES -- 1.0%
Unilever NV.......................... 5,152 357,248
-----------
INSURANCE -- 2.1%
ING Groep NV......................... 17,970 708,932
-----------
PERSONAL & HOUSEHOLD GOODS -- 1.1%
Koninklijke (Royal) Philips
Electronics NV....................... 10,816 365,052
-----------
TOTAL NETHERLANDS.................... 2,368,184
-----------
SPAIN -- 6.1%
BANKS -- 4.3%
Banco Bilbao Vizcaya Argentaria SA... 30,707 639,896
Banco Santander Central Hispano SA... 56,245 820,182
-----------
1,460,078
-----------
TELECOMMUNICATIONS -- 1.8%
Telefonica SA........................ 39,345 616,593
-----------
TOTAL SPAIN.......................... 2,076,671
-----------
SWEDEN -- 1.5%
TECHNOLOGY -- 1.5%
Telefonaktiebolaget LM Ericsson
(Class B).......................... 133,603 507,416
-----------
SWITZERLAND -- 13.8%
BANKS -- 4.4%
Credit Suisse Group.................. 9,194 514,628
UBS AG............................... 8,941 979,723
-----------
1,494,351
-----------
FOOD & BEVERAGES -- 3.2%
Nestle SA (a)........................ 3,654 1,082,066
-----------
HEALTH CARE -- 6.2%
Novartis AG (a)...................... 21,154 1,173,558
Roche Holding AG..................... 6,353 943,580
-----------
2,117,138
-----------
TOTAL SWITZERLAND.................... 4,693,555
-----------
UNITED KINGDOM -- 39.1%
BANKS -- 12.9%
Barclays PLC......................... 58,779 686,668
HBOS PLC............................. 34,358 572,715
HSBC Holdings PLC.................... 102,777 1,720,325
Lloyds TSB Group PLC................. 50,477 481,990
Royal Bank of Scotland Group PLC..... 28,783 935,106
-----------
4,396,804
-----------
BASIC RESOURCES -- 3.0%
Anglo American Capital PLC........... 13,528 520,454
Rio Tinto PLC........................ 9,605 486,816
-----------
1,007,270
-----------
</Table>
See accompanying notes to financial statements.
7
STREETTRACKS DOW JONES STOXX 50 FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
MARCH 31, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
SECURITY DESCRIPTION SHARES VALUE
- -------------------- ------ -----
FOOD & BEVERAGES -- 1.2%
Diageo PLC........................... 26,100 $ 410,389
-----------
HEALTH CARE -- 6.3%
AstraZeneca PLC...................... 14,211 714,842
GlaxoSmithKline PLC.................. 54,061 1,411,262
-----------
2,126,104
-----------
INSURANCE -- 0.8%
Aviva PLC............................ 20,304 281,570
-----------
OIL & GAS -- 9.5%
BP PLC............................... 184,748 2,118,207
Royal Dutch Shell PLC (Class A)...... 35,308 1,103,236
-----------
3,221,443
-----------
RETAIL -- 1.2%
Tesco PLC............................ 70,742 404,928
-----------
TELECOMMUNICATIONS -- 4.2%
BT Group PLC......................... 77,830 299,700
Vodafone Group PLC................... 545,906 1,141,017
-----------
1,440,717
-----------
TOTAL UNITED KINGDOM................. 13,289,225
-----------
TOTAL COMMON STOCKS --
(Cost $25,146,996)................. 33,689,162
-----------
</Table>
<Table>
<Caption>
SECURITY DESCRIPTION SHARES VALUE
- -------------------- ------ -----
SHORT TERM INVESTMENTS -- 26.6%
UNITED STATES -- 26.6%
MONEY MARKET FUND -- 26.6%
AIM Short Term Investment Class Prime
Fund............................... 29,714 $ 29,714
UBS Private Money Market Fund, LLC
(b)................................ 9,011,300 9,011,300
-----------
TOTAL SHORT TERM INVESTMENTS --
(Cost $9,041,014).................. 9,041,014
-----------
TOTAL INVESTMENTS -- 125.9% (Cost
$34,188,010)....................... 42,730,176
LIABILITIES IN EXCESS OF OTHER
ASSETS -- (25.9)%.................. (8,781,181)
-----------
NET ASSETS -- 100.0%................. $33,948,995
===========
</Table>
(a) Security, or portion thereof, was on loan at March 31, 2006
(b) Investments of cash collateral for securities loaned
See accompanying notes to financial statements.
8
STREETTRACKS DOW JONES EURO STOXX 50 FUND
PORTFOLIO OF INVESTMENTS
MARCH 31, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
SECURITY DESCRIPTION SHARES VALUE
- -------------------- ------ -----
COMMON STOCKS -- 99.9%
FINLAND -- 3.6%
TECHNOLOGY -- 3.6%
Nokia Oyj (a)...................... 317,371 $ 6,559,855
------------
FRANCE -- 34.4%
AUTOMOBILES & PARTS -- 0.9%
Renault SA......................... 15,277 1,622,274
------------
BANKS -- 7.0%
BNP Paribas SA (a)................. 67,007 6,215,434
Credit Agricole SA................. 52,464 2,038,641
Societe Generale................... 31,467 4,725,701
------------
12,979,776
------------
CHEMICALS -- 0.9%
L'Air Liduide SA................... 8,385 1,743,273
------------
CONSTRUCTION MATERIALS -- 1.8%
Compagnie de Saint-Gobain (a)...... 26,567 1,853,450
Lafarge SA (a)..................... 12,858 1,454,870
------------
3,308,320
------------
FOOD & BEVERAGES -- 1.3%
Groupe Danone (a).................. 19,027 2,327,880
------------
HEALTH CARE -- 4.1%
Sanofi-Aventis (a)................. 80,397 7,637,454
------------
INSURANCE -- 2.4%
AXA (a)............................ 123,789 4,338,302
------------
MEDIA -- 1.7%
Vivendi Universal SA (a)........... 89,146 3,057,319
------------
OIL & GAS -- 6.4%
Total SA........................... 44,809 11,804,913
------------
PERSONAL & HOUSEHOLD GOODS -- 2.1%
L'Oreal SA (a)..................... 22,775 2,003,697
LVMH Moet Hennessy Louis Vuitton SA
(a).............................. 19,778 1,936,288
------------
3,939,985
------------
RETAIL -- 1.4%
Carrefour SA....................... 47,311 2,513,424
------------
TECHNOLOGY -- 0.9%
Alcatel SA *....................... 110,219 1,703,282
------------
TELECOMMUNICATIONS -- 1.6%
France Telecom SA (a).............. 130,431 2,929,530
------------
UTILITIES -- 1.9%
Suez SA (a)........................ 90,247 3,551,587
------------
TOTAL FRANCE....................... 63,457,319
------------
GERMANY -- 23.7%
AUTOMOBILES & PARTS -- 2.3%
DaimlerChrysler AG (a)............. 72,772 4,174,282
------------
BANKS -- 2.5%
Deutsche Bank AG (a)............... 39,827 4,542,533
------------
</Table>
<Table>
<Caption>
SECURITY DESCRIPTION SHARES VALUE
- -------------------- ------ -----
CHEMICALS -- 2.9%
BASF AG (a)........................ 39,747 $ 3,112,059
Bayer AG (a)....................... 56,472 2,259,306
------------
5,371,365
------------
INDUSTRIAL GOODS & SERVICES -- 3.2%
Siemens AG......................... 64,353 5,999,626
------------
INSURANCE -- 4.1%
Allianz AG (a)..................... 31,329 5,223,623
Muenchener Rueckversicherungs-
Gesellschaft AG (a).............. 16,010 2,266,816
------------
7,490,439
------------
TECHNOLOGY -- 1.9%
SAP AG (a)......................... 16,556 3,586,508
------------
TELECOMMUNICATIONS -- 1.9%
Deutsche Telekom AG (a)............ 203,777 3,432,682
------------
UTILITIES -- 4.9%
E.ON AG (a)........................ 53,213 5,847,774
RWE AG (a)......................... 36,392 3,162,936
------------
9,010,710
------------
TOTAL GERMANY...................... 43,608,145
------------
IRELAND -- 0.8%
BANKS -- 0.8%
Allied Irish Banks PLC............. 65,484 1,561,135
------------
ITALY -- 11.6%
BANKS -- 4.0%
SanPaolo IMI SpA................... 84,155 1,504,179
UniCredito Italiano SpA............ 803,034 5,796,736
------------
7,300,915
------------
INSURANCE -- 1.8%
Assicurazioni Generali SpA......... 86,156 3,240,453
------------
OIL & GAS -- 3.0%
Eni SpA............................ 194,635 5,530,420
------------
TELECOMMUNICATIONS -- 1.3%
Telecom Italia SpA................. 847,808 2,470,034
------------
UTILITIES -- 1.5%
Enel SpA........................... 325,392 2,748,536
------------
TOTAL ITALY........................ 21,290,358
------------
NETHERLANDS -- 12.6%
BANKS -- 4.3%
ABN AMRO Holding NV................ 147,389 4,412,695
Fortis............................. 100,243 3,571,338
------------
7,984,033
------------
FOOD & BEVERAGES -- 1.7%
Unilever NV........................ 44,195 3,064,551
------------
INSURANCE -- 4.4%
Aegon NV........................... 109,969 2,032,116
ING Groep NV....................... 152,596 6,020,047
------------
8,052,163
------------
PERSONAL & HOUSEHOLD GOODS -- 1.7%
Koninklijke (Royal) Philips
Electronics NV (a)............... 92,171 3,110,871
------------
</Table>
See accompanying notes to financial statements.
9
STREETTRACKS DOW JONES EURO STOXX 50 FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
MARCH 31, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
SECURITY DESCRIPTION SHARES VALUE
- -------------------- ------ -----
RETAIL -- 0.5%
Koninklijke Ahold NV*.............. 119,578 $ 939,150
------------
TOTAL NETHERLANDS.................. 23,150,768
------------
SPAIN -- 13.2%
BANKS -- 6.8%
Banco Bilbao Vizcaya Argentaria SA
(a).............................. 261,325 5,445,694
Banco Santander Central Hispano
SA............................... 482,687 7,038,689
------------
12,484,383
------------
OIL & GAS -- 1.2%
Repsol YPF SA...................... 76,276 2,163,638
------------
TELECOMMUNICATIONS -- 2.9%
Telefonica SA...................... 336,565 5,274,458
------------
UTILITIES -- 2.3%
Endesa SA (a)...................... 74,184 2,391,573
Iberdrola SA....................... 60,670 1,955,903
------------
4,347,476
------------
TOTAL SPAIN........................ 24,269,955
------------
TOTAL COMMON STOCKS -- (Cost
$170,868,422).................... 183,897,535
------------
</Table>
<Table>
<Caption>
SECURITY DESCRIPTION SHARES VALUE
- -------------------- ------ -----
SHORT TERM INVESTMENTS -- 34.3%
UNITED STATES -- 34.3%
MONEY MARKET FUND -- 34.3%
AIM Short Term Investment Class
Prime Fund....................... 22,835 $ 22,835
UBS Private Money Market Fund, LLC
(b).............................. 63,182,675 63,182,675
------------
TOTAL SHORT TERM INVESTMENTS --
(Cost $63,205,510)............... 63,205,510
------------
TOTAL INVESTMENTS -- 134.2% (Cost
$234,073,932).................... 247,103,045
LIABILITIES IN EXCESS OF OTHER
ASSETS -- (34.2)%................ (62,913,730)
------------
NET ASSETS -- 100.0%............... $184,189,315
============
</Table>
* Non-income producing security
(a) Security, or portion thereof, was on loan at March 31, 2006
(b) Investments of cash collateral for securities loaned
See accompanying notes to financial statements.
10
STREETTRACKS INDEX SHARES FUNDS
STATEMENTS OF ASSETS AND LIABILITIES
MARCH 31, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
STREETTRACKS STREETTRACKS
DOW JONES DOW JONES
STOXX 50 EURO STOXX 50
FUND FUND
------------ -------------
ASSETS
Investments in securities at value (cost $25,176,710 and
$170,891,257, respectively)*............................ $33,718,876 $183,920,370
Investments of cash collateral received for securities
loaned, at value
(cost $9,011,300 and $63,182,675, respectively)......... 9,011,300 63,182,675
----------- ------------
Total Investments......................................... 42,730,176 247,103,045
Foreign currency, at value (cost $41,815 and $118,537,
respectively)........................................... 41,759 119,365
Receivable for investments sold........................... 36,451 --
Dividends receivable...................................... 195,594 204,724
----------- ------------
TOTAL ASSETS....................................... 43,003,980 247,427,134
----------- ------------
LIABILITIES
Cash collateral for securities loaned..................... 9,011,300 63,182,675
Payable for investments purchased......................... 33,066 --
Accrued advisory fee...................................... 8,299 43,514
Accrued trustees fees..................................... 2,320 11,630
----------- ------------
TOTAL LIABILITIES.................................. 9,054,985 63,237,819
----------- ------------
NET ASSETS......................................... $33,948,995 $184,189,315
=========== ============
NET ASSETS REPRESENTED BY:
Paid in capital........................................... $25,037,687 $171,723,208
Undistributed (distributions in excess of) net investment
income.................................................. 103,677 (366,912)
Accumulated net realized gain (loss) on investments and
foreign currency transactions........................... 265,958 (197,301)
Net unrealized appreciation on investments and foreign
currency................................................ 8,541,673 13,030,320
----------- ------------
NET ASSETS......................................... $33,948,995 $184,189,315
=========== ============
NET ASSETS VALUE PER SHARE
Net asset value per share................................. $ 42.43 $ 46.63
=========== ============
Shares outstanding (unlimited amount authorized, $0.01 par
value).................................................. 800,034 3,950,039
=========== ============
</Table>
* Includes $8,580,074 and $60,154,476, respectively, of investments in
securities on loan, at value.
See accompanying notes to financial statements.
11
STREETTRACKS INDEX SHARES FUNDS
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED MARCH 31, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
STREETTRACKS STREETTRACKS
DOW JONES DOW JONES
STOXX 50 EURO STOXX 50
FUND FUND
------------ -------------
INVESTMENT INCOME:
Dividends (net of foreign withholding taxes, $21,109 and
$133,369, respectively)................................. $ 395,666 $ 907,004
Securities lending-net.................................... 1,694 23,343
---------- -----------
TOTAL INVESTMENT INCOME................................... 397,360 930,347
---------- -----------
EXPENSES:
Advisory fee.............................................. 46,436 233,235
Trustees fees and expenses................................ 4,409 24,085
Miscellaneous expense..................................... 3,894 16,281
---------- -----------
TOTAL EXPENSES............................................ 54,739 273,601
---------- -----------
NET INVESTMENT INCOME..................................... 342,621 656,746
---------- -----------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain on investments and foreign currency
transactions............................................ 311,465 7,082,603
Net change in unrealized appreciation on investments and
foreign currency........................................ 2,141,628 8,147,213
---------- -----------
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS AND
FOREIGN CURRENCY..................................... 2,453,093 15,229,816
---------- -----------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........ $2,795,714 $15,886,562
========== ===========
</Table>
See accompanying notes to financial statements.
12
STREETTRACKS INDEX SHARES FUNDS
STATEMENTS OF CHANGE IN NET ASSETS
- --------------------------------------------------------------------------------
<Table>
<Caption>
STREETTRACKS DOW JONES STREETTRACKS DOW JONES
STOXX 50 FUND EURO STOXX 50 FUND
-------------------------------- --------------------------------
FOR THE FOR THE FOR THE FOR THE
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED
MARCH 31, 2006 SEPTEMBER 30, MARCH 31, 2006 SEPTEMBER 30,
(UNAUDITED) 2005 (UNAUDITED) 2005
---------------- ------------- ---------------- -------------
FROM OPERATIONS:
Net investment income............................. $ 342,621 $ 804,041 $ 656,746 $ 3,819,424
Net realized gain on investments and foreign
currency transactions........................... 311,465 174,316 7,082,603 34,046,899
Net change in unrealized appreciation
(depreciation) on investments and foreign
currency........................................ 2,141,628 4,562,075 8,147,213 (10,072,382)
----------- ----------- ------------ ------------
NET INCREASE IN NET ASSETS RESULTING FROM
OPERATIONS...................................... 2,795,714 5,540,432 15,886,562 27,793,941
----------- ----------- ------------ ------------
Undistributed net investment income included in
price of shares issued and redeemed, net........ -- 138 (20,453) 67,904
----------- ----------- ------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income............................. (177,334) (796,093) (323,014) (3,960,144)
Net realized gains................................ (117,419) -- -- --
----------- ----------- ------------ ------------
TOTAL DISTRIBUTIONS TO SHAREHOLDERS............... (294,753) (796,093) (323,014) (3,960,144)
----------- ----------- ------------ ------------
FROM BENEFICIAL INTEREST TRANSACTIONS:
Net proceeds from the sale of shares.............. -- 1,805,862 142,244,686 181,521,597
Net proceeds from dividend reinvestment shares
issued.......................................... 612 702 305 1,227
Cost of shares redeemed........................... -- -- (153,286,386) (119,061,998)
----------- ----------- ------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS FROM
BENEFICIAL INTEREST TRANSACTIONS.................. 612 1,806,564 (11,041,395) 62,460,826
----------- ----------- ------------ ------------
Net increase in net assets during period.......... 2,501,573 6,551,041 4,501,700 86,362,527
Net assets at beginning of period................. 31,447,422 24,896,381 179,687,615 93,325,088
----------- ----------- ------------ ------------
NET ASSETS AT END OF PERIOD (1)..................... $33,948,995 $31,447,422 $184,189,315 $179,687,615
=========== =========== ============ ============
SHARES OF BENEFICIAL INTEREST:
Shares sold....................................... -- 50,000 3,350,000 4,550,000
Shares issued to shareholders from reinvestment of
distributions................................... 15 19 7 32
Shares redeemed................................... -- -- (3,750,000) (2,950,000)
----------- ----------- ------------ ------------
NET INCREASE (DECREASE)............................. 15 50,019 (399,993) 1,600,032
=========== =========== ============ ============
(1) Including undistributed (distributions in excess
of) net investment income:........................ $ 103,677 $ (61,610) $ (366,912) $ (700,644)
=========== =========== ============ ============
</Table>
See accompanying notes to financial statements.
13
STREETTRACKS INDEX SHARES FUNDS
FINANCIAL HIGHLIGHTS
SELECTED DATA FOR A STREETTRACKS SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS
PRESENTED BELOW:
- --------------------------------------------------------------------------------
<Table>
<Caption>
STREETTRACKS DOW JONES
STOXX 50 FUND
---------------------------------------------------------------
FOR THE SIX FOR THE YEAR FOR THE YEAR FOR THE PERIOD
MONTHS ENDED ENDED ENDED ENDED
MARCH 31, 2006 SEPTEMBER 30, SEPTEMBER 30, SEPTEMBER 30,
(UNAUDITED) 2005 2004+ 2003*
-------------- ------------- ------------- --------------
NET ASSET VALUE, BEGINNING OF PERIOD.................... $ 39.31 $ 33.20 $ 27.89 $25.34(4)
------- ------- ------- ------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income................................... 0.42 1.01 0.99 1.20
Net realized and unrealized gain........................ 3.07 6.10 5.16 2.50
------- ------- ------- ------
Total from investment operations........................ 3.49 7.11 6.15 3.70
------- ------- ------- ------
Undistributed net investment income included in price of
units issued and redeemed, net........................ -- 0.00(5) 0.01 (0.49)
------- ------- ------- ------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income................................... (0.22) (1.00) (0.85) (0.66)
Net realized gains...................................... (0.15) -- -- --
------- ------- ------- ------
Total distributions to shareholders..................... (0.37) (1.00) (0.85) (0.66)
------- ------- ------- ------
NET ASSET VALUE, END OF PERIOD.......................... $ 42.43 $ 39.31 $ 33.20 $27.89
======= ======= ======= ======
TOTAL RETURN (1)........................................ 8.90% 21.60% 22.13% 12.79%
Net assets, end of period (in 000's).................... $33,949 $31,447 $24,896 $8,421
Ratio of expenses to average net assets................. 0.33%(2) 0.32% 0.33% 0.35%(2)
Ratio of net investment income to average net assets.... 2.14%(2) 2.75% 2.98% 2.96%(2)
Portfolio turnover rate (3)............................. 6% 9% 7% 6%
</Table>
- ---------------
* For the period October 15, 2002 (commencement of operations) through
September 30, 2003.
(1) Total return is calculated assuming a purchase of shares at net asset value
on the first day and a sale at net asset value on the last day of each
period reported. Distributions are assumed, for the purpose of this
calculation, to be reinvested at net asset value per share on the respective
payment dates of each Fund. Total return for periods of less than one year
is not annualized. Broker commission charges are not included in this
calculation.
(2) Annualized
(3) Portfolio Turnover rate excludes securities received or delivered from
processing of creations or redemptions.
(4) The beginning net asset value above has been adjusted to reflect a reverse
stock split which was effective October 15, 2002, in order to adjust the net
asset value per share of the Fund to be approximately 1/100th of the value
of its index. The ratio of the reverse stock split for the streetTRACKS Dow
Jones STOXX 50 Fund was 1:2.536.
(5) Amount is less than $0.005 per share
+ Effective on July 1, 2004, SSgA Funds Management, Inc. succeeded UBS Global
Asset Management (US) Inc. as the Fund's Adviser.
See accompanying notes to financial statements.
14
STREETTRACKS INDEX SHARES FUNDS
FINANCIAL HIGHLIGHTS
SELECTED DATA FOR A STREETTRACKS SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS
PRESENTED BELOW:
- --------------------------------------------------------------------------------
<Table>
<Caption>
STREETTRACKS DOW JONES
EURO STOXX 50 FUND
---------------------------------------------------------------
FOR THE SIX FOR THE YEAR FOR THE YEAR FOR THE PERIOD
MONTHS ENDED ENDED ENDED ENDED
MARCH 31, 2006 SEPTEMBER 30, SEPTEMBER 30, SEPTEMBER 30,
(UNAUDITED) 2005 2004+ 2003*
-------------- ------------- ------------- --------------
NET ASSET VALUE, BEGINNING OF PERIOD.................... $ 41.31 $ 33.94 $ 27.97 $ 24.35(4)
-------- -------- ------- -------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income................................... 0.18 0.94 0.64 0.97
Net realized and unrealized gain........................ 5.25 7.39 6.14 3.59
-------- -------- ------- -------
Total from investment operations........................ 5.43 8.33 6.78 4.56
-------- -------- ------- -------
Undistributed net investment income included in price of
units issued and redeemed, net........................ (0.01) 0.02 0.01 (0.30)
-------- -------- ------- -------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income................................... (0.10) (0.98) (0.82) (0.64)
-------- -------- ------- -------
NET ASSET VALUE, END OF PERIOD.......................... $ 46.63 $ 41.31 $ 33.94 $ 27.97
======== ======== ======= =======
TOTAL RETURN (1)........................................ 13.13% 24.82% 24.21% 17.46%
Net assets, end of period (in 000's).................... $184,189 $179,688 $93,325 $85,366
Ratio of expenses to average net assets................. 0.33%(2) 0.32% 0.33% 0.35%(2)
Ratio of net investment income to average net assets.... 0.82%(2) 2.79% 1.92% 2.78%(2)
Portfolio turnover rate (3)............................. 3% 15% 11% 6%
</Table>
- ---------------
* For the period October 15, 2002 (commencement of operations) through
September 30, 2003.
(1) Total return is calculated assuming a purchase of shares at net asset value
on the first day and a sale at net asset value on the last day of each
period reported. Distributions are assumed, for the purpose of this
calculation, to be reinvested at net asset value per share on the respective
payment dates of each Fund. Total return for periods of less than one year
is not annualized. Broker commission charges are not included in this
calculation.
(2) Annualized
(3) Portfolio Turnover rate excludes securities received or delivered from
processing of creations or redemptions.
(4) The beginning net asset value above has been adjusted to reflect a reverse
stock split which was effective October 15, 2002, in order to adjust the net
asset value per share of the Fund to be approximately 1/100th of the value
of its index. The ratio of the reverse stock split for the streetTRACKS Dow
Jones EURO STOXX 50 Fund was 1:2.444.
+ Effective on July 1, 2004, SSgA Funds Management, Inc. succeeded UBS Global
Asset Management (US) Inc. as the Fund's Adviser.
See accompanying notes to financial statements.
15
STREETTRACKS INDEX SHARES FUNDS
NOTES TO FINANCIAL STATEMENTS
MARCH 31, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
1. ORGANIZATION
The streetTRACKS Index Shares Funds (the "Trust"), is registered under the
Investment Company Act of 1940, as amended (the "1940 Act"), and is an open-end
investment management company that was organized as a Massachusetts business
trust on February 14, 2002. The Trust currently consists of two separate
exchange-traded "index funds", (each referred to as a "Fund" and, collectively,
as "the Funds") streetTRACKS Dow Jones STOXX 50 Fund and streetTRACKS Dow Jones
EURO STOXX 50 Fund, each of which represents a separate series of beneficial
interest in the Trust. Each Fund operates as a non-diversified investment
company. The investment objective of each fund is to replicate as closely as
possible, before expenses, the price and yield of a specified market index.
2. SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies followed by the
Trust in the preparation of its financial statements:
The preparation of financial statements in accordance with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts and disclosures in the financial statements. Actual
results could differ from those estimates.
INDEMNIFICATIONS
Under the Trust's organizational documents, its officers and trustees are
indemnified against certain liability arising out of the performance of their
duties to the Trust. Additionally, in the normal course of business, the Trust
enters into contracts with service providers that contain general
indemnification clauses. The Trust's maximum exposure under these arrangements
is unknown as this would involve future claims that may be made against the
Trust that have not yet occurred. However, based on experience the Trust expects
the risk of loss to be remote.
SECURITY VALUATION
The value of each Fund's portfolio securities is based on the securities' last
sale price on the market where it is primarily traded when available. If a
security's market price is not readily available, the security is valued at its
fair value, as determined under procedures established by the Board of Trustees.
The procedures require the Trust's Pricing and Investment Committee to determine
a security's fair value if a market price is not readily available. In these
cases, a Fund's net asset value may reflect certain portfolio securities' fair
values rather than their market prices. Fair value pricing involves subjective
judgments and it is possible that the fair value determination for a security is
materially different than the value that could be realized upon the sale of the
security. With respect to securities that are primarily listed on foreign
exchanges, the value of the Fund's portfolio securities may change on days when
you will not be able to purchase or sell your Shares. Consistent with the manner
which the Funds' underlying Indexes are valued, portfolio securities are not
generally fair valued solely on the basis of movements in the U.S. markets
subsequent to the close of trading on the relevant foreign market.
INVESTMENT INCOME
Dividend income is recorded on the ex-dividend date. Interest income is recorded
on the accrual basis.
INVESTMENT TRANSACTIONS
Investment transactions are recorded on the trade date. Realized gains and
losses from the sale or disposition of securities and foreign exchange
transactions are recorded on the identified cost basis. Corporate actions
(including cash dividends) are recorded net of non-reclaimable foreign tax
withholdings.
FOREIGN CURRENCY TRANSLATION AND FOREIGN INVESTMENTS
The accounting records of the Funds are maintained in U.S. dollars. Portfolio
securities and other assets and liabilities denominated in a foreign currency
are translated to U.S. dollars at the prevailing rates of exchange at period
end. Purchases and sales of securities, income receipts and expense payments are
translated into U.S. dollars at the
16
STREETTRACKS INDEX SHARES FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
MARCH 31, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
prevailing exchange rate on the respective dates of transactions. The effects of
changes in foreign currency exchange rates on portfolio investments are included
in the net realized and unrealized gains and losses on investments. Net gains
and losses on foreign currency transactions include disposition of foreign
currencies, and currency gains and losses between the accrual and receipt dates
of portfolio investment income and between the trade and settlement dates of
portfolio investment transactions.
Investing in securities of foreign companies and foreign governments involves
special risks and considerations not typically associated with investing in U.S.
companies and securities of the U.S. government. These risks include revaluation
of currencies and the risk of appropriation. Moreover, the markets for
securities of many foreign companies and foreign governments may be less liquid
and the prices of such securities may be more volatile than those of comparable
U.S. companies and the U.S. government.
EXPENSES
Advisory fees, which are directly identifiable to a specific Fund, are applied
to that Fund. Certain fees are allocated in such a manner as deemed equitable,
taking into consideration the relative net assets of the Funds.
FEDERAL INCOME TAX
The Funds intend to qualify for and elect treatment as a "regulated investment
company" under Subchapter M of the Internal Revenue Code of 1986, as amended. By
so qualifying and electing, each Fund will not be subject to federal income
taxes to the extent it distributes it's taxable income, including any net
realized capital gains, for each fiscal year. In addition, by distributing
during each calendar year substantially all their net investment income and
capital gains, if any, the Funds will not be subject to federal excise tax.
Income and capital gain distributions are determined in accordance with income
tax regulations which may differ from generally accepted accounting principles.
These book-tax differences are primarily due to differing treatments for income
equalization, in-kind transactions and losses deferred due to wash sales.
At March 31 2006, the Funds had no capital loss carryforwards.
For the six months ended March 31, 2006, the Funds reclassified non-taxable
security gains and losses realized on the in-kind redemption of Creation Units
(Note 4) as an increase or decrease to paid in capital in the Statements of
Assets and Liabilities as follows:
<Table>
<Caption>
NET GAIN
RECLASS AMOUNT
- ----------------------------------------------------------------------------
streetTRACKS Dow Jones STOXX 50 Fund $ --
streetTRACKS Dow Jones EURO STOXX 50 Fund 7,045,300
</Table>
The Funds use the accounting practice of equalization, as disclosed further
below. This accounting method was used to keep the continuing shareholders' per
share equity in undistributed net investment income from being affected by the
continuous sales and redemptions of capital stock. Equalization is calculated on
a per share basis whereby a portion of the proceeds from sales and costs of
repurchases of capital stock is applied to undistributed net investment income.
The amounts of equalization are disclosed in the Statements of Changes in Net
Assets as undistributed net investment income included in the price of capital
shares issued or redeemed.
The Funds incurred the following losses during the period November 1, 2004
through September 30, 2005 that are deferred for tax purposes until fiscal 2006:
<Table>
<Caption>
DEFERRED LOSSES
- -----------------------------------------------------------------------------
streetTRACKS DJ STOXX 50 Fund $ --
streetTRACKS DJ EURO STOXX 50 Fund --
</Table>
DISTRIBUTIONS
The Trust declares and distributes dividends from net investment income, if any
to its shareholders quarterly. The Trust distributes net realized capital gains,
if any, at least annually. Distributions are recorded on the ex-dividend
17
STREETTRACKS INDEX SHARES FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
MARCH 31, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
date. Income and capital gain distributions are determined in accordance with
income tax regulations, which may differ from accounting principles generally
accepted in the United States.
EQUALIZATION
The Funds follow the accounting practice known as "Equalization" by which a
portion of the proceeds from sales and costs of reacquiring shares of the Funds,
equivalent on a per share basis to the amount of distributable net investment
income on the date of the transaction, is credited or charged to undistributed
net investment income. As a result, undistributed net investment income per
share is unaffected by sales or reacquisitions of shares of the Funds.
3. FEES AND COMPENSATION PAID TO AFFILIATES AND OTHER RELATED PARTY PARTY
TRANSACTIONS
ADVISORY FEE
Effective July 1, 2004, the Trust on behalf of each Fund has entered into an
Investment Advisory Agreement with SSgA Funds Management, Inc. (the "Adviser").
As compensation for the services rendered, facilities furnished, and expenses
borne by the Adviser, each Fund pays the Adviser a fee accrued daily and paid
monthly, based on a percentage of each Funds' average daily net assets as shown
in the following table:
<Table>
<Caption>
ANNUAL RATE
- -------------------------------------------------------------------------
streetTRACKS Dow Jones STOXX 50 Fund 0.29%
streetTRACKS Dow Jones EURO STOXX 50 Fund 0.29%
</Table>
The Adviser pays the operating expenses of each Fund other than the advisory
fee, brokerage, taxes, interest, fees and expenses of the Independent Trustees
(including any Trustee's counsel fees), litigation expenses and other
extraordinary expenses.
DISTRIBUTOR
State Street Global Markets, LLC ("the Distributor") acts as the principal
underwriter of each Fund pursuant to a principal underwriting agreement with the
Trust for the shares which requires the Distributor to use its best efforts,
consistent with its other businesses, to sell Shares of the Funds. Shares of the
Funds are offered continuously. The Distributor may enter into dealer agreements
with other broker-dealers (affiliated and non-affiliated) and with other
financial institutions to authorize them to sell Shares. Management has not
implemented a 12b-1 fee on either of the Funds.
TRUSTEES' FEES
The Trust pays fees and expenses of the Independent Trustees, including
Trustee's legal counsel fees. The Trust pays each Independent Trustee an annual
fee of $15,000, and a meeting fee of $300 per fund per board meeting attended.
An Independent Trustee will receive $500 for each meeting attended via telephone
or video conference. The Funds will reimburse the Trustees for any out of pocket
expenses related to attending meetings of the Board of Trustees. The Board of
Trustees has an Audit Committee consisting of all Trustees who are not
"interested persons" (as defined in the 1940 Act) of the Trust. The Trustees
which are members of the Audit Committee do not receive additional compensation
from the Trust as a result of their position on the Audit Committee.
4. SHAREHOLDER TRANSACTIONS
Except for under the Trust's dividend reinvestment plan, Shares are issued and
redeemed by a Fund only in Creation Unit size aggregations of 50,000. Such
transactions are only permitted on an in-kind basis, with a separate cash
payment, which is (cash component) used to equate the transaction to the net
asset value per Share of a Fund on the transaction date. A fixed Creation
Transaction Fee of $1,500 is applicable to each transaction regardless of the
number of Creation Units purchased in the transaction. An additional charge of
up to four times the Creation Transaction Fee may apply to the extent that cash
is used in lieu of securities to purchase Creation Units. Transaction fees are
received by the custodian and used to offset the expense of processing orders.
18
STREETTRACKS INDEX SHARES FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
MARCH 31, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
5. AGGREGATE UNREALIZED APPRECIATION AND DEPRECIATION
At March 31, 2006, the cost of investments for federal income tax purposes was
substantially the same as the cost for financial reporting purposes.
<Table>
<Caption>
GROSS GROSS NET UNREALIZED
IDENTIFIED UNREALIZED UNREALIZED APPRECIATION
COST APPRECIATION DEPRECIATION (DEPRECIATION)
- ---------------------------------------------------------------------------------------------------------------------
streetTRACKS Dow Jones STOXX 50 Fund $ 34,188,010 $ 8,700,676 $ 158,510 $ 8,542,166
streetTRACKS Dow Jones EURO STOXX 50 Fund 234,073,932 15,803,739 2,774,626 13,029,113
</Table>
6. INVESTMENT TRANSACTIONS
For the six months ended March 31, 2006, the Trust had in-kind contributions and
in-kind redemptions as follows:
<Table>
<Caption>
SUBSCRIPTIONS REDEMPTIONS
- -------------------------------------------------------------------------------------------
streetTRACKS Dow Jones STOXX 50 Fund $ -- $ --
streetTRACKS Dow Jones EURO STOXX 50 Fund 142,237,059 153,286,386
</Table>
For the six months ended March 31, 2006, the Trust had purchases and sales of
investment securities as follows:
<Table>
<Caption>
PURCHASES SALES
- --------------------------------------------------------------------------------------
streetTRACKS Dow Jones STOXX 50 Fund $1,943,230 $1,960,496
streetTRACKS Dow Jones EURO STOXX 50 Fund 5,344,541 4,779,013
</Table>
For the six months ended March 31, 2006, the Trust did not pay any commissions
to an affiliate of the Adviser for Investment Transactions.
7. INITIAL CAPITALIZATION AND OFFERING OF SHARES
On the commencement of operations for each Fund, October 15, 2002, the Board of
Trustees declared reverse stock splits, which were effective on the date of
commencement of operations for each Fund. The reverse stock splits were executed
in order to align the net asset value per share of each Fund to an established
proportion of its benchmark index.
The ratio of the reverse stock splits were as follows:
<Table>
<Caption>
RATIO
- ---------------------------------------------------------------------
streetTRACKS Dow Jones STOXX 50 Fund 1:2.536
streetTRACKS Dow Jones EURO STOXX 50 Fund 1:2.444
</Table>
8. SECURITIES LENDING
Each Fund may lend securities up to 33 1/3% of its total assets to qualified
broker-dealers or institutional investors. The loans are secured at all times by
cash, cash equivalents or U.S. government securities in an amount at least equal
to 105% of market value of the securities loaned, plus accrued interest and
dividends, determined on a daily basis and adjusted accordingly. The Funds will
regain record ownership of loaned securities to exercise certain beneficial
rights; however, the Funds may bear the risk of delay in recovery of, or even
loss of rights in, the securities loaned should the borrower fail financially.
Each Fund receives compensation for lending its securities from interest or
dividends earned on the cash, cash equivalents or U.S. government securities
held as collateral, net of fee rebates paid to the borrower plus reasonable
administrative and custody fees.
19
STREETTRACKS INDEX SHARES FUNDS
OTHER INFORMATION
MARCH 31, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
FREQUENCY DISTRIBUTION OF DISCOUNTS AND PREMIUMS
CLOSING PRICE VS. NAV AS OF MARCH 31, 2006
The following Frequency Distribution of Discounts and Premiums charts are
provided to show the frequency at which the closing bid/ask midpoint price for
each of the Funds was at a discount or premium to the daily net asset value
(NAV). The following charts are for comparative purposes only and represent the
periods noted.
streetTRACKS DOW JONES STOXX 50 FUND
<Table>
<Caption>
-----------------------------------------------------------------------------
Bid/Offer Midpoint Price
Above NAV
-----------------------------------------------------------------------------
50 - 99 100 - 199 >200
BASIS POINTS BASIS POINTS BASIS POINTS
-----------------------------------------------------------------------------
2006
QUARTER ENDING:
3/31/06 4 1 0
-----------------------------------------------------------------------------
2005
QUARTER ENDING:
12/31/05 9 2 0
9/30/05 11 2 0
6/30/05 14 9 1
3/31/05 4 0 0
-----------------------------------------------------------------------------
2004
QUARTER ENDING:
12/31/04 30 7 0
9/30/04 19 7 0
6/30/04 19 3 0
3/31/04 13 3 0
-----------------------------------------------------------------------------
2003
QUARTER ENDING:
12/31/03 14 1 0
9/30/03 8 2 0
6/30/03 13 2 0
3/31/03 10 10 1
-----------------------------------------------------------------------------
2002
PERIOD ENDING:
12/31/02* 9 7 0
-----------------------------------------------------------------------------
<Caption>
----------------------- -----------------------------------------------------
Bid/Offer Midpoint Price
Below NAV
----------------------- -----------------------------------------------------
50 - 99 100 - 199 >200
BASIS POINTS BASIS POINTS BASIS POINTS
----------------------- -----------------------------------------------------
2006
QUARTER ENDING:
3/31/06 1 0 0
-----------------------------------------------------------------------------
2005
QUARTER ENDING:
12/31/05 3 2 2
9/30/05 0 2 3
6/30/05 4 2 0
3/31/05 5 3 6
-----------------------------------------------------------------------------
2004
QUARTER ENDING:
12/31/04 1 0 1
9/30/04 1 1 0
6/30/04 1 2 0
3/31/04 6 2 0
-----------------------------------------------------------------------------
2003
QUARTER ENDING:
12/31/03 2 0 0
9/30/03 6 0 0
6/30/03 8 3 0
3/31/03 6 2 0
-----------------------------------------------------------------------------
2002
PERIOD ENDING:
12/31/02* 7 3 0
-----------------------------------------------------------------------------
</Table>
* Commencement of trading October 21, 2002
20
STREETTRACKS INDEX SHARES FUNDS
OTHER INFORMATION (CONTINUED)
MARCH 31, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
streetTRACKS DOW JONES EURO STOXX 50 FUND
<Table>
<Caption>
-----------------------------------------------------------------------------
Bid/Offer Midpoint Price
Above NAV
-----------------------------------------------------------------------------
50 - 99 100 - 199 >200
BASIS POINTS BASIS POINTS BASIS POINTS
-----------------------------------------------------------------------------
2006
QUARTER ENDING:
3/31/06 4 1 0
-----------------------------------------------------------------------------
2005
QUARTER ENDING:
12/31/05 6 3 0
9/30/05 7 2 0
6/30/05 6 1 0
3/31/05 13 4 0
-----------------------------------------------------------------------------
2004
QUARTER ENDING:
12/31/04 12 1 0
9/30/04 8 4 0
6/30/04 10 3 0
3/31/04 9 1 0
-----------------------------------------------------------------------------
2003
QUARTER ENDING:
12/31/03 11 1 0
9/30/03 8 1 0
6/30/03 6 3 0
3/31/03 12 6 1
-----------------------------------------------------------------------------
2002
PERIOD ENDING:
12/31/02* 5 7 1
-----------------------------------------------------------------------------
<Caption>
----------------------- -----------------------------------------------------
Bid/Offer Midpoint Price
Below NAV
----------------------- -----------------------------------------------------
50 - 99 100 - 199 >200
BASIS POINTS BASIS POINTS BASIS POINTS
----------------------- -----------------------------------------------------
2006
QUARTER ENDING:
3/31/06 3 0 0
-----------------------------------------------------------------------------
2005
QUARTER ENDING:
12/31/05 8 4 5
9/30/05 6 1 4
6/30/05 10 4 0
3/31/05 4 8 1
-----------------------------------------------------------------------------
2004
QUARTER ENDING:
12/31/04 4 0 1
9/30/04 7 1 1
6/30/04 5 2 1
3/31/04 3 8 0
-----------------------------------------------------------------------------
2003
QUARTER ENDING:
12/31/03 4 0 0
9/30/03 6 3 0
6/30/03 11 4 0
3/31/03 11 4 0
-----------------------------------------------------------------------------
2002
PERIOD ENDING:
12/31/02* 9 5 0
-----------------------------------------------------------------------------
</Table>
* Commencement of trading October 21, 2002
SHAREHOLDER EXPENSE EXAMPLE
As a shareholder of a Fund, you incur two types of costs: (1) transaction costs
which may include creation and redemption fees on brokerage charges and (2)
ongoing costs, including management fees, distribution (12b-1) fees,
administration, custodian and transfer agent fees and other Fund expenses. This
Example is intended to help you understand your ongoing costs (in dollars) of
investing in a Fund and to compare these costs with the ongoing costs of
investing in other mutual funds. It is based on an investment of $1,000 invested
at October 1, 2005 and held for the six months ended March 31, 2006.
ACTUAL EXPENSES
The first table below provides information about actual account values and
actual expenses. You may use the information in this table, together with the
amount you invested, to estimate the expenses that you incurred over the period.
Simply divide your account value by $1,000 (for example, an $8,600 account value
divided by $1,000 = 8.6), then multiply the result by the number in the first
table under the heading entitled "Expenses Paid During Period" to estimate the
expenses attributable to your investment during this period.
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The second table below provides information about hypothetical account values
and hypothetical expenses based on a Fund's actual expense ratio and an
assumedrate of return of 5% per year before expenses, which is not a Fund's
actual return. Thus, you should not use the hypothetical account values and
expenses to estimate the actual ending
21
STREETTRACKS INDEX SHARES FUNDS
OTHER INFORMATION (CONTINUED)
MARCH 31, 2006 (UNAUDITED)
- --------------------------------------------------------------------------------
account balance or your expenses for the period. Rather, these figures are
provided to enable you to compare the ongoing costs of investing in a Fund and
other funds. To do so, compare this 5% hypothetical example with the 5%
hypothetical examples that appear in the shareholder reports of the other funds.
The Funds charge transaction fees of $1,500 per Creation Unit to those persons
creating or redeeming Creation Units. If you buy or sell streetTRACKS Index Fund
Shares in the secondary market, you will incur customary brokerage commissions
and charges.
Please note that the expenses shown in the table are meant to highlight your
ongoing costs only and do not reflect any transaction costs, such as creation
and redemption fees on brokerage charges. Therefore, the second table is useful
in comparing ongoing costs only, and will not help you determine the relative
total costs of owning different funds. In addition, if these transaction costs
were included, your costs would have been higher.
<Table>
<Caption>
BEGINNING ACCOUNT ENDING ACCOUNT EXPENSES PAID
VALUE VALUE DURING PERIOD*
10/01/05 3/31/06 10/01/05 TO 3/31/06
----------------- -------------- -------------------
ACTUAL
streetTRACKS Dow Jones STOXX 50 Fund.................. $1,000 $1,089.00 $1.72
streetTRACKS Dow Jones Euro STOXX 50 Fund............. $1,000 $1,131.30 $1.75
HYPOTHETICAL
(ASSUMING A 5% RETURN BEFORE EXPENSES)
streetTRACKS Dow Jones STOXX 50 Fund.................. $1,000 $1,023.29 $1.66
streetTRACKS Dow Jones Euro STOXX 50 Fund............. $1,000 $1,023.29 $1.66
</Table>
* Expenses are equal to the Fund's annualized expense ratio of 0.33% and 0.33%,
respectively, multiplied by the average account value of the period,
multiplied by 182/365.
PROXY VOTING POLICIES
You may obtain a description of the Fund's proxy voting policies and procedures,
without charge, upon request by contacting the Funds directly at 1-866-S-TRACKS
(1-866-787-2257) (toll-free), on the website of the Securities and Exchange
Commission, at www.sec.gov, or on the Funds' website at www.streetTRACKS.com.
Information regarding how the Funds voted ("SEC") proxies relating to portfolio
securities during the most recent 12-month period ended June 30 is also
available without charge, upon request by calling 1-866-787-2257 (toll-free), on
the SEC's website, at www.sec.gov, and on the Funds' website at
www.streetTRACKS.com
QUARTERLY PORTFOLIO SCHEDULE
The Funds file a complete schedule of portfolio holdings with the SEC for the
first and third quarters of each fiscal year on the Form N-Q. The Funds' Forms
N-Q is available on the SEC's website at www.sec.gov and may be reviewed and
copied at the SEC's Public Reference Room in Washington, DC. Information on the
form N-Q will be available upon request, without charge, by calling
1-866-787-2257 (toll-free), and on the Funds' website www.streetTRACKS.com.
22
streetTRACKS INDEX SHARES FUNDS
TRUSTEES
David M. Kelly
Frank Nesvet
Helen F. Peters
James E. Ross
OFFICERS
James E. Ross, President
Michael P. Riley, Vice President
Gary L. French, Treasurer
Mary Moran Zeven, Secretary
Scott M. Zoltowski, Assistant Secretary
John W. Clark, Assistant Treasurer
Matthew Flaherty, Assistant Treasurer
Peter Ambrosini, Chief Compliance Officer
INVESTMENT MANAGER
SSgA Funds Management, Inc.
State Street Financial Center
One Lincoln Street
Boston, MA 02111
DISTRIBUTOR
State Street Global Markets, LLC
State Street Financial Center
One Lincoln Street
Boston, MA 02111
CUSTODIAN, ADMINISTRATOR AND TRANSFER AGENT
State Street Bank and Trust Company
State Street Financial Center
One Lincoln Street
Boston, MA 02111
LEGAL COUNSEL
Clifford Chance US LLP
31 West 52nd Street
New York, New York 10019
INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
PricewaterhouseCoopers LLP
125 High Street
Boston, MA 02110
streetTRACKS are distributed by State Street Global Markets, LLC, a wholly-owned
subsidiary of State Street Corporation. State Street Global Markets, LLC is a
member of NASD, SIPC, and the Boston Stock Exchange.
The information contained in this report is intended for the general information
of shareholders of the Trust. This report is not authorized for distribution to
prospective investors unless preceded or accompanied by a current Trust
prospectus which contains important information concerning the Trust. You may
obtain a current prospectus from the Distributor by calling 1-866-S-TRACKS or
visiting WWW.STREETTRACKS.COM Please read the prospectus carefully before you
invest.
The investment return and principal value of an investment in the streetTRACKS
funds will fluctuate in value, so that when shares are sold or redeemed they
may be worth more or less than when they were purchased.
ETFs trade like stocks, are subject to investment risk and will fluctuate in
value.
International investments may involve risk of capital loss from unfavorable
fluctuations in currency values, from differences in generally accepted
accounting principles or from economic or political instability in other
nations.
In general, streetTRACKS shares can be expected to move up or down in value with
the value of the applicable index. Although streetTRACKS shares may be bought
and sold on the exchange through any brokerage account, streetTRACKS shares are
not individually redeemable from the Fund. Investors may acquire streetTRACKS
and tender them for redemption through the Fund in Creation Unit Aggregations
only. Please see the prospectus for more details.
streetTRACKS are not sponsored, endorsed, sold, or promoted by Dow Jones &
Company, Time Inc., ("Dow Jones") Dow Jones does not make any representation
regarding the advisability of investing in streetTRACKS. streetTRACKS are
distributed by State Street Global Markets, LLC, a wholly-owned subsidiary of
State Street Corporation. State Street Global Markets, LLC is a member of NASD,
SIPC, and the Boston Stock Exchange. References to State Street may include
State Street Corporation and its affiliates. Shares of the streetTRACKS funds
are not insured by the FDIC or by another governmental agency; they are not
obligations of the FDIC nor are they deposits or obligations of or guaranteed by
State Street Bank and Trust Company. streetTRACKS shares are subject to
investment risks, including possible loss of the principal invested. The
streetTRACKS funds pay State Street for its services as investment advisor,
custodian, transfer agent and shareholder servicing agent.
For more information on streetTRACKS, or to obtain a prospectus, call:
1-866-S-TRACKS
or visit
WWW.STREETTRACKS.COM
Please read the prospectus carefully before you invest or send money.
(STATE STREET GLOBAL ADVISORS LOGO)
(STATE STREET LOGO)
ITEM 2. CODE OF ETHICS
Not applicable to the Registrant; This Form N-CSR is a Semi-Annual Report.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT
Not applicable to the Registrant; This Form N-CSR is a Semi-Annual Report.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES
Not applicable to the Registrant; This Form N-CSR is a Semi-Annual Report.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS
Not applicable to the Registrant; This Form N-CSR is a Semi-Annual Report.
ITEM 6. SCHEDULE OF INVESTMENTS
A Schedule of Investments in included as a part of the report to shareholders
filed under Item 1 of the Form N-CSR.
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES
Not applicable to the Registrant.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES
Not applicable to the Registrant.
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT
COMPANY AND AFFILIATED PURCHASERS
Not applicable to the Registrant.
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
Not applicable to the Registrant.
ITEM 11. CONTROLS AND PROCEDURES
(a) Within 90 days of the filing date of this Form N-CSR, James E. Ross, the
Registrant's President and Chief Executive Officer, and Gary L. French, the
Registrant's Treasurer and Chief Financial Officer, reviewed the Registrant's
disclosure controls and procedures (the "Procedures") and evaluated their
effectiveness. Based on the review, Messrs. Ross and French determined that the
Procedures adequately ensure that information required to be disclosed by
the Registrant in its periodic reports is recorded, processed, summarized and
reported within the time periods required by the Securities and Exchange
Commission's rules and regulations.
(b) In the Registrant's second fiscal quarter covered by this form N-CSR filing,
there were no significant changes in the Registrant's internal controls or in
other factors that have materially affected, or are reasonably likely to
materially affect, its controls over financial reporting subsequent to the date
of their evaluation, including any corrective actions with regard to significant
deficiencies and material weaknesses.
ITEM 12. EXHIBITS
(a)(1) Not applicable to the Registrant; This Form N-CSR is a Semi-Annual
Report.
(2) Certifications of principal executive officer and principal financial
officer of the registrant as required by Rule 30a-2(a) under the 1940 Act are
attached hereto.
(3) Not applicable
(b) Certifications of principal executive officer and principal financial
officer of the registrant as required by Rule 30a-2(b) under the 1940 Act and
Section 906 of the Sarbanes-Oxley Act of 2002 are attached hereto.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the Registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
STREETTRACKS INDEX SHARES FUNDS
By: /s/ James E. Ross
-------------------------------------
James E. Ross
President and Chief Executive Officer
Date: May 18, 2006
-------------------------------------
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By: /s/ James E. Ross
-------------------------------------
James E. Ross
President and Chief Executive Officer
Date: May 18, 2006
-------------------------------------
By: /s/ Gary L. French
-------------------------------------
Gary L. French
Treasurer and Chief Financial Officer
Date: May 18, 2006
-------------------------------------