[LOGO]
WORLDWIDE
INDEX FUNDS
- ---------------------
The Index Alternative
---------------------------------------
SEMI-ANNUAL REPORT
For the Period Ended January 31, 1999
---------------------------------------
<PAGE>
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Portfolio of Investments
- --------------------------------------------------------------------------------
WorldWide Index Funds
January 31, 1999 (Unaudited)
Australia Index Fund
- --------------------
<TABLE>
<CAPTION>
Future Contracts
Expiration Number of Current Unrealized
Description Date Contracts Market Value Gain/(Loss)
---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
ASX All Ord (Buy) Mar-99 6 $274,325 $2,810
-------- ------
<CAPTION>
France Index Fund
- -----------------
Future Contracts
Expiration Number of Current Unrealized
Description Date Contracts Market Value Gain/(Loss)
----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
CAC 40 Index (Buy) Mar-99 97 $471,602 $3,128
-------- ------
<CAPTION>
Germany Index Fund
- ------------------
Future Contracts
Expiration Number of Current Unrealized
Description Date Contracts Market Value Gain/(Loss)
----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
DAX Index Futures (Buy) Mar-99 7 $1,033,798 $6,732
---------- ------
<CAPTION>
Hong Kong Index Fund
- --------------------
Future Contracts
Expiration Number of Current Unrealized
Description Date Contracts Market Value Gain/(Loss)
----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Hang Seng Index Futures (Buy) Mar-99 3 $184,066 $(1,141)
-------- --------
<CAPTION>
Italy Index Fund
- ----------------
Future Contracts
Expiration Number of Current Unrealized
Description Date Contracts Market Value Gain/(Loss)
------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
MIB 30 Index Futures (Buy) Mar-99 2 $423,043 $(11,794)
-------- ---------
</TABLE>
See Notes to Financial Statements.
1
<PAGE>
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Portfolio of Investments (continued)
- --------------------------------------------------------------------------------
WorldWide Index Funds
January 31, 1999 (Unaudited)
Japan Index Fund
- ----------------
<TABLE>
<CAPTION>
Future Contracts
Expiration Number of Current Unrealized
Description Date Contracts Market Value Gain/(Loss)
-----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Nikkei 225 Index Futures (Buy) Mar-99 5 $614,943 $38,705
-------- -------
<CAPTION>
Spain Index Fund
- ----------------
Future Contracts
Expiration Number of Current Unrealized
Description Date Contracts Market Value Gain/(Loss)
-----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
IBEX Plus Index (Buy) Feb-99 3 $350,056 $(6,544)
-------- --------
<CAPTION>
Sweden Index Fund
- -----------------
Future Contracts
Expiration Number of Current Unrealized
Description Date Contracts Market Value Gain/(Loss)
-----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
OMX Index Future (Buy) Feb-99 38 $358,070 $(4,883)
-------- --------
<CAPTION>
United Kingdom Index Fund
- -------------------------
Future Contracts
Expiration Number of Current Unrealized
Description Date Contracts Market Value Gain/(Loss)
-----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
FTSE 100 IX Future (Buy) Mar-99 5 $499,625 $(8,049)
-------- --------
</TABLE>
See Notes to Financial Statements.
2
<PAGE>
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Portfolio of Investments (continued)
- --------------------------------------------------------------------------------
International Index Fund
January 31, 1999 (Unaudited)
Value
Shares (Note 2)
------ --------
MUTUAL FUNDS - 99.69%
1,528 Australia Index Fund, Class I .................. $ 16,681
1,591 France Index Fund, Class I ..................... 17,067
1,340 Germany Index Fund, Class I .................... 16,005
1,421 Hong Kong Index Fund, Class I .................. 15,590
1,259 Italy Index Fund, Class I ...................... 15,601
1,473 Japan Index Fund, Class I ...................... 16,111
1,433 Netherlands Index Fund, Class I ................ 15,408
1,237 Spain Index Fund, Class I ...................... 14,459
1,507 Sweden Index Fund, Class I ..................... 16,187
811 Switzerland Index Fund, Class I ................ 8,236
10,274 United Kingdom Index Fund, Class I ............. 117,433
--------
Total Mutual Funds - 99.69% .................................. 268,778
--------
(Cost $269,180)
Net Other Assets and Liabilities - 0.31% ..................... 845
--------
Net Assets - 100.00% ......................................... $269,623
========
See Notes to Financial Statements
3
<PAGE>
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Portfolio of Investments (continued)
- --------------------------------------------------------------------------------
Switzerland Index Fund
January 31, 1999 (Unaudited)
Value
Shares (Note2)
- ------ ---------
COMMON STOCKS - 63.68%
Basic Materials - 4.13%
7 Alusuisse Lonza Group AG, Registered...... $ 7,839
8 Holderbank Financiere Glarus AG, Bearer... 4,197
9 Holderbank Financiere
Glarus AG, Registered.................... 1,226
---------
13,262
---------
Capital Goods - 4.28%
10 ABB AG, Bearer............................. 10,987
5 Sulzer AG, Registered...................... 2,756
---------
13,743
---------
Communication Services - 3.95%
29 Swisscom AG, Registered*................... 12,683
---------
Consumer Cyclicals - 1.12%
7 The Swatch Group AG, Bearer................ 915
5 The Swatch Group AG, Registered............ 2,703
---------
3,618
---------
Consumer Staples - 8.57%
15 Nestle SA, Registered...................... 27,503
---------
Financial - 13.10%
10 Swiss Re, Registered....................... 24,864
53 UBS AG, Registered......................... 17,189
---------
42,053
---------
Health Care - 28.00%
7 Novartis AG, Bearer........................ 13,166
20 Novartis AG, Registered.................... 37,533
3 Roche Holdings AG.......................... 39,193
---------
89,892
---------
Transportation - 0.53%
8 SAirGroup, Registered...................... 1,707
---------
Total Common Stocks - 63.68%.......................... 204,461
(Cost $211,843) ---------
Net Other Assets and Liabilities - 36.32%............. 116,590
---------
Net Assets - 100.00%.................................. $ 321,051
=========
- -----------------------------------------
* Non-income producing security.
As of January 31, 1999, the fund had entered into the following forward foreign
currency contracts:
FORWARD FOREIGN CURRENCY CONTRACTS SOLD:
Currency Contracts To Settlement Contracts To In Exchange Unrealized
Value Deliver Dates Value for U.S. $ Appreciation
- --------- ------------ ---------- ------------ ----------- ------------
1,191,376 CHF 03/22/99 $ 869,788 $ 846,166 $ 23,622
============ =========== ============
FORWARD FOREIGN CURRENCY CONTRACTS PURCHASED:
Currency Contracts To Settlement Contracts To In Exchange Unrealized
Value Receive Dates Value for U.S.$ (Depreciation)
- --------- ------------ ---------- ------------ ----------- ------------
736,590 CHF 03/22/99 $ 531,457 $ 523,158 $ (8,299)
============ =========== ============
- --------------------------------
CHF Swiss Francs
See Notes to Financial Statements
4
<PAGE>
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Portfolio of Investments (continued)
- --------------------------------------------------------------------------------
Netherland Index Fund
January 31, 1999 (Unaudited)
Value
Shares (Note 2)
- ------ ---------
COMMON STOCKS - 61.49%
Basic Materials - 0.19%
23 Koninklijke Hoogovens NV.................. $ 628
---------
Chemicals - 3.82%
281 Akzo Nobel................................. 11,250
64 Vedior NV-CVA.............................. 1,216
---------
12,466
---------
Consumer Cyclicals - 6.54%
45 Buhrmann NV................................ 734
496 Koninklijke Ahold NV....................... 19,293
44 Oce NV..................................... 1,309
---------
21,336
---------
Consumer Staples - 7.66%
147 Heineken NV................................ 7,942
223 Unilever NV-CVA............................ 17,069
---------
25,011
---------
Electronics - 5.31%
238 Philips Electronics........................ 17,324
---------
Energy - 10.09%
819 Royal Dutch Petroleum...................... 32,928
---------
Financial - 15.68%
1,356 ABN AMRO Holdings NV....................... 26,372
425 Ing Groep NV............................... 24,797
---------
51,169
---------
Publishing - 4.86%
545 Elsevier NV................................ 8,554
37 Wholter Kluwer NV.......................... 7,320
---------
15,874
---------
Telecommunications - 3.62%
213 Koninklije KPN NV........................... 11,810
---------
Transportation - 3.72%
40 KLM-Konin Luchtvaart MII NV................ 1,067
.319 TNT Post Group NV.......................... 11,084
---------
12,151
---------
Total Common Stocks - 61.49%.......................... 200,697
(Cost $213,092) ---------
Net Other Assets and Liabilities - 38.51%............. 125,671
---------
Net Assets - 100.00%.................................. $ 326,368
=========
As of January 31, 1999, the fund had entered into the following forward foreign
currency contracts:
FORWARD FOREIGN CURRENCY CONTRACTS SOLD:
Currency Contracts To Settlement Contracts To In Exchange Unrealized
Value Deliver Dates Value for U.S. $ Appreciation
- --------- ------------ ---------- ------------ ----------- ------------
195,970 NLG 03/22/99 $ 106,044 $ 101,383 $ 4,661
601,653 NLG 03/22/99 701,000 606,055 14,945
------------ ----------- -----------
$ 807,044 $ 787,438 $ 19,606
============ =========== ===========
FORWARD FOREIGN CURRENCY CONTRACTS PURCHASED:
Currency Contracts To Settlement Contracts To In Exchange Unrealized
Value Receive Dates Value for U.S. $ (Depreciation)
- --------- ------------ ---------- ------------ ----------- --------------
378,800 NLG 03/22/99 $ 200,000 $ 195,969 $ (4,031)
257,417 NLG 03/22/99 295,000 293,529 (1,471)
------------ ----------- --------------
$ 495,000 $ 489,498 $ (5,502)
============ =========== ==============
- --------------------------------
NLG Netherland Guilders
See Notes to Financial Statements
5
<PAGE>
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Portfolio of Investments
- --------------------------------------------------------------------------------
Europe Index Fund
January 31, 1999 (Unaudited)
Value
Shares (Note 2)
------ --------
MUTUAL FUNDS - 99.97%
29,448 France Index Fund, Class I ................... $ 315,977
26,045 Germany Index Fund, Class I .................. 310,972
24,787 Italy Index Fund, Class I .................... 307,115
28,501 Netherlands Index Fund, Class I .............. 306,384
26,879 Spain Index Fund, Class I .................... 314,218
29,439 Sweden Index Fund, Class I ................... 316,175
30,534 Switzerland Index Fund, Class I .............. 310,222
26,819 United Kingdom Index Fund, Class I ........... 306,544
----------
Total Mutual Funds - 99.97% ................................... 2,487,607
----------
(Cost $2,519,762)
Net Other Assets and Liabilities - 0.03% ...................... 629
----------
Net Assets - 100.00% .......................................... $2,488,236
==========
See Notes to Financial Statements.
6
<PAGE>
This page left blank intentionally.
<PAGE>
- --------------------------------------------------------------------------------
Statements of Assets and Liabilities
- --------------------------------------------------------------------------------
WorldWide Index Funds
January 31, 1999 (Unaudited)
<TABLE>
<CAPTION>
Australia France Germany Hong Kong Italy
Index Index Index Index Index
Fund Fund Fund Fund Fund
--------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C>
ASSETS:
Investments:
Investments at cost ......................... $ -- $ -- $ -- $ -- $ --
Net unrealized appreciation (depreciation)
on investments ......................... -- -- -- -- --
--------- --------- --------- --------- ---------
Total investments at value .................. -- -- -- -- --
Cash........................................ 195,032 494,291 960,158 222,609 450,448
Foreign currency
(cost $13,395) ........................... -- -- -- -- --
Receivable for investments sold............. -- -- -- -- --
Receivable for shares sold.................. 59,724 -- -- -- --
Receivable for variation margin
on futures contracts...................... 45 -- 14,789 -- 30,449
Receivable from investment advisor.......... 2,822 13,243 16,859 3,638 29,588
Net unrealized appreciation on
forward currency contracts................ -- -- -- -- --
--------- --------- --------- --------- ---------
Total Assets.............................. 257,623 507,534 991,806 226,247 510,485
--------- --------- --------- --------- ---------
LIABILITIES:
Payable to custodian........................ -- -- -- -- --
Payable for shares repurchased.............. -- -- -- -- 1,982
Payable for variation margin on
futures contracts......................... -- 34,406 -- 16,129 --
Fund accounting and transfer
agent fees payable........................ 1,523 7,485 9,005 1,870 20,018
Trustees' fees payable...................... 110 406 524 144 832
Shareholder services fees payable........... 64 135 194 91 156
Accrued expenses and other payables......... 917 6,122 8,236 1,882 6,896
--------- --------- --------- --------- ---------
Total Liabilities......................... 2,614 48,554 17,959 20,116 29,884
--------- --------- --------- --------- ---------
NET ASSETS.................................... $255,009 $458,980 $973,847 $206,131 $480,601
========= ========= ========= ========= =========
NET ASSETS consists of:
Paid in capital............................. 254,745 492,476 958,058 221,978 442,442
Undistributed net investment income (loss).. 222 910 1,000 281 7,709
Accumulated net realized gain (loss) on
investments sold, forward foreign
currency contracts, foreign
currency and futures contracts............ (2,768) (37,534) 8,057 (14,987) 42,244
Net unrealized appreciation (depreciation)
of investments, forward foreign
currency contracts, foreign
currency and futures contracts............ 2,810 3,128 6,732 (1,141) (11,794)
--------- --------- --------- --------- ---------
TOTAL NET ASSETS.............................. $255,009 $458,980 $973,847 $206,131 $480,601
========= ========= ========= ========= =========
R Class:
Net Assets.................................. $177,690 $127,428 $144,919 $189,215 $149,162
Shares of beneficial interest outstanding... 16,347 12,014 12,146 17,332 12,056
--------- --------- --------- --------- ---------
NET ASSET VALUE and offering
price per share........................... $10.87 $10.61 $11.93 $10.92 $12.37
========= ========= ========= ========= =========
I Class:
Net Assets.................................. $ 77,319 $331,552 $828,928 $ 16,916 $331,439
Shares of beneficial interest outstanding... 7,043 31,184 69,449 1,542 26,758
--------- --------- --------- --------- ---------
NET ASSET VALUE and offering
price per share........................... $10.98 $10.63 $11.94 $10.97 $12.39
========= ========= ========= ========= =========
</TABLE>
See Notes to Financial Statements.
8
<PAGE>
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- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
United
Japan Netherlands Spain Sweden Switzerland Kingdom Europe International
Index Fund Index Fund Index Fund Index Fund Index Fund Index Fund Index Fund Index Fund
- ------------- ------------- ------------ ----------- ------------- ----------- ------------- ---------------
<S> <C> <C> <C> <C> <C> <C> <C>
$ -- $ 213,092 $ -- $ -- $ 211,843 $ -- $ 2,519,762 $ 269,180
-- (12,395) -- -- (7,382) -- (32,155) (402)
- ----------- ----------- ----------- ---------- ----------- ----------- ------------- -----------
-- 200,697 -- -- 204,461 -- 2,487,607 268,778
546,529 -- 414,994 420,104 -- 538,010 -- 1,013
-- 16,841 -- -- -- -- -- --
-- 109,684 -- -- 126,017 -- -- --
77,667 -- -- -- -- -- -- --
37,792 -- -- -- -- -- -- --
9,149 8,269 27,300 4,714 10,789 28,211 3,617 --
-- 14,104 -- -- 15,323 -- -- --
- ----------- ----------- ----------- ---------- ----------- ----------- ------------- -----------
671,137 349,595 442,294 424,818 356,590 566,221 2,491,224 269,791
- ----------- ----------- ----------- ---------- ----------- ----------- ------------- -----------
-- 13,720 -- -- 24,199 -- -- --
-- -- -- -- -- -- -- --
-- -- 59,816 76,354 -- 85,610 -- --
5,394 4,887 17,303 3,286 5,828 16,257 -- --
302 288 765 149 353 674 -- --
314 47 69 31 50 43 303 168
-- 4,285 3,853 1,810 5,109 11,610 2,685 --
- ----------- ----------- ----------- ---------- ----------- ----------- ------------- -----------
6,010 23,227 81,806 81,630 35,539 114,194 2,988 168
- ----------- ----------- ----------- ---------- ----------- ----------- ------------- -----------
$ 665,127 $ 326,368 $ 360,488 $ 343,188 $ 321,051 $ 452,027 $ 2,488,236 $ 269,623
=========== =========== =========== ========== =========== =========== ============= ===========
626,649 376,135 413,860 419,517 373,900 538,066 2,801,869 503,880
1,624 (253) 6,492 27 (328) (433) (303) (168)
(1,851) (54,466) (53,320) (71,473) (62,818) (77,577) (281,175) (233,687)
38,705 4,952 (6,544) (4,883) 10,297 (8,049) (32,155) (402)
- ----------- ----------- ----------- ---------- ----------- ----------- ------------- -----------
$ 665,127 $ 326,368 $ 360,488 $ 343,188 $ 321,051 $ 452,027 $ 2,488,236 $ 269,623
=========== =========== =========== ========== =========== =========== ============= ===========
$ 608,105 $ 4,565 $ 23,356 $ 10,810 $ 2,542 $ 28,086 $ 845,902 $ 245,965
55,463 425 1,986 1,007 251 2,460 74,772 22,258
- ----------- ----------- ----------- ---------- ----------- ----------- ------------- -----------
$ 10.96 $ 10.74 $ 11.76 $ 10.73 $ 10.13 $ 11.42 $ 11.31 $ 11.05
=========== =========== =========== ========== =========== =========== ============= ===========
$ 57,022 $ 321,803 $ 337,132 $ 332,378 $ 318,509 $ 423,941 $ 1,642,334 $ 23,658
5,212 29,933 28,821 30,948 31,344 37,094 144,670 2,225
- ----------- ----------- ----------- ---------- ----------- ----------- ------------- -----------
$ 10.94 $ 10.75 $ 11.70 $ 10.74 $ 10.16 $ 11.43 $ 11.35 $ 10.63
=========== =========== =========== ========== =========== =========== ============= ===========
</TABLE>
9
<PAGE>
- --------------------------------------------------------------------------------
Statements of Operations
- --------------------------------------------------------------------------------
WorldWide Index Funds
For the Period Ended January 31, 1999 (Unaudited)
<TABLE>
<CAPTION>
Australia France Germany Hong Kong Italy
Index Fund(1) Index Fund(2) Index Fund(1) Index Fund(1) Index Fund(1)
------------- ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Dividends .................................. $ -- $ -- $ -- $ -- $ --
Interest ................................... 566 1,881 2,135 749 10,802
Less: foreign taxes withheld ............... -- -- -- -- --
--------- -------- --------- ------- ---------
Total Investment Income .................. 566 1,881 2,135 749 10,802
--------- -------- --------- ------- ---------
EXPENSES:
Investment advisory fees (Note 3) .......... 189 565 636 255 1,985
Administration fees (Note 3) ............... 76 226 254 102 794
Fund accounting (Note 3) ................... 3,909 14,489 18,680 5,127 29,701
Custodian fees ............................. 189 565 636 255 1,985
Legal fees ................................. 1,096 4,061 5,235 1,437 8,324
Audit fees ................................. 838 2,876 3,689 1,137 6,871
Registration fees .......................... 18 38 94 21 44
Shareholder servicing fees (Note 6) ........ 64 135 194 91 156
Transfer agent fees (Note 3) ............... 2,485 9,211 11,875 3,259 18,880
Trustees' fees and expenses (Note 4) ....... 753 2,087 2,389 905 6,949
Reports to shareholders .................... 438 1,624 2,094 575 3,330
Insurance .................................. 223 828 1,068 293 1,698
--------- -------- --------- ------- ---------
Total expenses before reimbursements/
waiver ................................. 10,278 36,705 46,844 13,457 80,717
Less: reimbursement/waiver from Advisor,
Administrator and Trustees (Note 5) .... (8,896) (32,953) (42,325) (11,623) (68,810)
Less: purchase fees offset (Note 2) ...... (1,038) (2,781) (3,384) (1,366) (8,814)
--------- -------- --------- ------- ---------
Total expenses net of
reimbursement/waiver ................. 344 971 1,135 468 3,093
--------- -------- --------- ------- ---------
NET INVESTMENT INCOME (LOSS) ............... 222 910 1,000 281 7,709
--------- -------- --------- ------- ---------
REALIZED AND UNREALIZED GAIN/
(LOSS) ON INVESTMENTS
Net realized gain (loss) on investments sold -- -- -- -- 1
Net realized gain (loss) on futures ...... (2,768) (37,534) 8,057 (14,987) 42,243
Net realized gain (loss) on forward foreign
currency contracts and foreign currency -- -- -- -- --
Net change in unrealized appreciation
(depreciation) on investments, forward
foreign currency contracts, foreign
currency and futures contracts ......... 2,810 3,128 6,732 (1,141) (11,794)
--------- -------- --------- ------- ---------
Total net realized and unrealized
gain (loss) on investments ............. 42 (34,406) 14,789 (16,128) 30,450
--------- -------- --------- ------- ---------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS ................ $ 264 $ (33,496) $ 15,789 $ (15,847) $ 38,159
========= ======== ========= ======= =========
</TABLE>
(1) The Funds commenced operations on September 22, 1998.
(2) The Fund commenced operations on September 13, 1998.
(3) The Funds commenced operations on September 23, 1998.
See Notes to Financial Statements.
10
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
United
Japan Netherlands Spain Sweden Switzerland Kingdom Europe International
Index Fund(3) Index Fund(3) Index Fund(1) Index Fund(1) Index Fund(3) Index Fund(1) Index Fund(1) Index Fund(1)
- ------------- ------------- ------------- ------------- -------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C> <C> <C>
$ -- $ 149 $ -- $ -- $ -- $ -- $ -- $ --
3,027 121 8,990 483 264 200 -- --
-- (13) -- -- -- -- -- --
---------- --------- ------- -------- -------- ------- ------- -------
3,027 257 8,990 483 264 200 -- --
---------- --------- ------- -------- -------- ------- ------- -------
736 313 1,640 287 366 399 -- --
294 125 656 115 146 159 125 75
10,760 10,263 27,278 5,324 12,592 24,056 -- --
736 312 1,640 287 366 399 1,249 750
3,016 2,876 7,646 1,492 3,529 6,742 -- --
2,480 1,951 6,422 1,010 2,375 4,013 10,155 1,638
54 36 42 42 36 52 -- --
314 47 69 31 50 43 303 168
6,840 6,525 17,340 3,384 8,004 15,292 -- --
2,880 1,348 4,574 1,622 1,600 1,940 -- --
1,206 1,151 3,058 597 1,412 2,697 -- --
615 587 1,559 304 720 1,375 -- --
---------- --------- ------- -------- -------- ------- ------- -------
29,931 25,534 71,924 14,495 31,196 57,167 11,832 2,631
(24,954) (23,243) (62,493) (12,461) (28,470) (54,609) (5,494) (1,799)
(3,574) (1,781) (6,933) (1,578) (2,134) (1,925) (6,035) (664)
---------- --------- ------- -------- -------- ------- ------- -------
1,403 510 2,498 456 592 633 303 168
---------- --------- ------- -------- -------- ------- ------- -------
1,624 (253) 6,492 27 (328) (433) (303) (168)
---------- --------- ------- -------- -------- ------- ------- -------
(3) (153,030) (48) -- (40,655) 4 (281,175) (233,687)
(1,848) -- (53,272) (71,473) -- (77,561) -- --
-- 98,564 -- -- (22,163) -- -- --
38,705 4,952 (6,544) (4,883) 10,297 (8,049) (32,155) (402)
---------- --------- ------- -------- -------- ------- ------- -------
36,854 (49,514) (59,864) (76,356) (52,521) (85,606) (313,330) (234,089)
---------- --------- ------- -------- -------- ------- ------- -------
$ 38,478 $ (49,767) $ (53,372) $ (76,329) $ (52,849) $ (86,039) $ (313,633) $ (234,257)
========== ========= ======= ======== ======== ======= ======= =======
</TABLE>
11
<PAGE>
- --------------------------------------------------------------------------------
Statements of Changes in Net Assets
- --------------------------------------------------------------------------------
WorldWide Index Funds
For the Period Ended January 31, 1999 (Unaudited)
<TABLE>
<CAPTION>
Australia France Germany Hong Kong Italy
Index Fund(1) Index Fund(2) Index Fund(1) Index Fund(1) Index Fund(1)
------------- ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C>
Net investment income/(loss)........................ $ 222 $ 910 $ 1,000 $ 281 $ 7,709
Net realized gain/(loss) on investments sold,
forward foreign currency contracts,
foreign currency transactions and
futures contracts during the period............... (2,768) (37,534) 8,057 (14,987) 42,244
Net unrealized appreciation/(depreciation) of
investments, forward foreign currency contracts,
foreign currency and futures contracts,
and other assets and liabilities
during the period................................. 2,810 3,128 6,732 (1,141) (11,794)
-------- ---------- --------- --------- ---------
Net increase/(decrease) in net assets resulting
from operations................................... 264 (33,496) 15,789 (15,847) 38,159
-------- ---------- --------- --------- ---------
Net increase/(decrease) from
Fund share transactions(A)........................ 254,745 392,476 958,058 221,978 442,442
-------- ---------- --------- --------- ---------
Net increase/(decrease) in net assets............... 255,009 358,980 973,847 206,131 480,601
-------- ---------- --------- --------- ---------
NET ASSETS:
Beginning of year(B) ............................... -- 100,000 -- -- --
-------- ---------- --------- --------- ---------
End of period ...................................... $255,009 $ 458,980 $ 973,847 $ 206,131 $ 480,601
======== ========== ========= ========= =========
Undistributed net investment income/
(accumulated net investment loss at
end of period) ................................... $ 222 $ 910 $ 1,000 $ 281 $ 7,709
======== ========== ========= ========= =========
</TABLE>
(1) The Funds commenced operations on September 22, 1998.
(2) The Fund commenced operations on September 13, 1998.
(3) The Funds commenced operations on September 23, 1998.
(A) For detail on share transactions by class, see Statements of Changes in Net
Assets - Capital Stock Activity on pages 14 - 15.
(B) Amount represents original seed money.
See Notes to Financial Statements.
12
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
United
Japan Netherlands Spain Sweden Switzerland Kingdom Europe International
Index Fund(3) Index Fund(3) Index Fund(1) Index Fund(1) Index Fund(3) Index Fund(1) Index Fund(1) Index Fund(1)
- ------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C> <C> <C>
1,624 $ (253) $ 6,492 $ 27 $ (328) $ (433) $ (303) $ (168)
(1,851) 54,466) (53,320) (71,473) (62,818) (77,557) (281,175) (233,687)
38,705 4,952 (6,544) (4,883) 10,297 (8,049) (32,155) (402)
- ------------ ------------ ----------- ----------- ----------- ----------- ----------- -----------
38,478 (49,767) (53,372) (76,329) (52,849) (86,039) (313,633) (234,257)
- ------------ ------------ ----------- ----------- ----------- ----------- ----------- -----------
626,649 376,135 413,860 419,517 373,900 538,066 2,801,869 503,880
- ------------ ------------ ----------- ----------- ----------- ----------- ----------- -----------
665,127 326,368 360,488 343,188 321,051 452,027 2,488,236 269,623
- ------------ ------------ ----------- ----------- ----------- ----------- ----------- -----------
-- -- -- -- -- -- -- --
- ------------ ------------ ----------- ----------- ----------- ----------- ----------- -----------
665,127 $326,368 $ 360,488 $ 343,188 $ 321,051 $ 452,027 $ 2,488,236 $ 269,623
============ ============ =========== =========== =========== =========== =========== ===========
1,624 $ (253) $ 6,492 $ 27 $ (328) $ (433) $ (303) $ (168)
============ ============ =========== =========== =========== =========== =========== ===========
</TABLE>
13
<PAGE>
- --------------------------------------------------------------------------------
Statements of Changes in Net Assets -- Capital Stock Activity
- --------------------------------------------------------------------------------
Worldwide Index Funds
For the Period Ended January 31, 1999 (Unaudited)
<TABLE>
<CAPTION>
Australia France Germany Hong Kong Italy
Index Fund Index Fund Index Fund Index Fund Index Fund
---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C>
DOLLAR AMOUNT:
R Class:
Sold................................. $ 231,431 $ 112,624 $ 270,956 $ 298,399 $ 350,346
Issued as reinvestment of dividends.. -- -- -- -- --
Redeemed............................. (64,085) (54,742) (168,761) (122,510) (230,159)
---------- ---------- ----------- ---------- -----------
Net increase/(decrease).............. $ 167,346 $ 57,882 $ 102,195 $ 175,889 $ 120,187
========== ========== =========== ========== ===========
I Class:
Sold................................. $ 530,232 $1,217,467 $ 2,238,667 $ 701,476 $ 2,649,118
Issued as reinvestment of dividends.. -- -- -- -- --
Redeemed............................. (442,833) (882,873) (1,382,804) (655,387) (2,326,863)
---------- ---------- ---------- ---------- -----------
Net increase/(decrease).............. $ 87,399 $ 334,594 $ 855,863 $ 46,089 $ 322,255
========== ========== ========== ========== ===========
SHARES:
R Class:
Sold................................. 22,430 12,098 26,384 26,701 30,421
Issued as reinvestment of dividends.. -- -- -- -- --
Redeemed............................. (6,083) (5,084) (14,238) (9,369) (18,365)
---------- ---------- ---------- ---------- -----------
Net increase/(decrease).............. 16,347 7,014 12,146 17,332 12,056
========== ========== ========== ========== ===========
I Class:
Sold................................. 48,129 117,490 208,278 53,400 219,535
Issued as reinvestment of dividends.. -- -- -- -- --
Redeemed............................. (41,086) (91,306) (138,829) (51,858) (192,777)
---------- ---------- ---------- ---------- -----------
Net increase/(decrease).............. 7,043 26,184 69,449 1,542 26,758
========== ========== ========== ========== ===========
</TABLE>
See Notes to Financial Statements.
14
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
United
Japan Netherlands Spain Sweden Switzerland Kingdom Europe International
Index Fund Index Fund Index Fund Index Fund Index Fund Index Fund Index Fund Index Fund
---------- ---------- ---------- ---------- ---------- ---------- ---------- -------------
<S> <C> <C> <C> <C> <C> <C> <C>
$ 990,386 $ 95,380 $ 222,767 $ 90,636 $ 93,160 $ 62,660 $ 863,564 $ 234,182
-- -- -- -- -- -- -- --
(415,973) (105,821) (219,117) (82,052) (101,687) (45,000) (2,743) --
- ----------- ----------- ----------- ----------- ----------- ----------- ----------- --------------
$ 574,413 $ (10,441) $ 3,650 $ 8,584 $ (8,527) $ 17,660 $ 860,821 $ 234,182
=========== =========== =========== =========== =========== =========== =========== ==============
$ 697,100 $ 1,151,662 $ 2,795,204 $ 1,309,502 $ 1,401,605 $ 1,953,797 $ 5,008,302 $ 4,752,519
-- -- -- -- -- -- -- --
(644,864) (765,086) (2,384,994) (898,569) (1,019,178) (1,433,391) (3,067,254) (4,482,821)
- ----------- ----------- ----------- ----------- ----------- ----------- ----------- --------------
$ 52,236 $ 386,576 $ 410,210 $ 410,933 $ 382,427 $ 520,406 $ 1,941,048 $ 269,698
=========== =========== =========== =========== =========== =========== =========== ==============
94,427 9,919 20,711 9,148 9,904 6,401 75,003 22,258
-- -- -- -- -- -- -- --
(38,964) (9,494) (18,725) (8,141) (9,653) (3,941) (231) --
- ----------- ----------- ----------- ----------- ----------- ----------- ----------- --------------
55,463 425 1,986 1,007 251 2,460 74,772 22,258
=========== =========== =========== =========== =========== =========== =========== ==============
64,472 104,196 228,573 116,441 136,312 177,520 459,102 416,485
-- -- -- -- -- -- -- --
(59,260) (74,263) (199,752) (85,493) (104,968) (140,426) (314,432) (414,260)
- ----------- ----------- ----------- ----------- ----------- ----------- ----------- --------------
5,212 29,933 28,821 30,948 31,344 37,094 144,670 2,225
=========== =========== =========== =========== =========== =========== -========== ==============
</TABLE>
15
<PAGE>
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
Australia Index Fund(1)
For a Fund share outstanding throughout the period.
<TABLE>
<CAPTION>
R Class I Class
------------- ------------
Period Ended Period Ended
1/31/99 1/31/99
(Unaudited) (Unaudited)
------------- ------------
<S> <C> <C>
Net asset value, beginning of period ...................... $ 10.00 $ 10.00
------- -------
Income from investment operations:
Net investment income ..................................... 0.01 0.01
Net realized and unrealized gain/(loss) on investments .... 0.86 0.97
------- -------
Total from investment operations .......................... 0.87 0.98
------- -------
Net increase (decrease) in net asset value ................ 0.87 0.98
------- -------
Net asset value, end of period ............................ $ 10.87 $ 10.98
======= =======
Total return .............................................. 8.90%(**) 9.20%(**)
Ratios to average net assets/supplemental data:
Net assets, end of period (in 000's) ...................... $ 178 $ 77
Ratio of operating expenses to average net assets ......... 0.99%(*) 0.74%(*)
Ratio of net investment income/(loss) to average net assets 0.50%(*) 0.75%(*)
Portfolio turnover rate ................................... -- --
Ratio of operating expenses to average net assets without
fee waivers/reimbursements .............................. 27.26%(*) 27.01%(*)
</TABLE>
- -------------------
(*) Annualized
(**) Not annualized
(1) The Fund commenced operations on September 22, 1998.
See Notes to Financial Statements.
16
<PAGE>
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
France Index Fund(1)
For a Fund share outstanding throughout the period.
<TABLE>
<CAPTION>
R Class I Class
--------------- ---------------
Period Ended Period Ended
1/31/99 1/31/99
(Unaudited) (Unaudited)
--------------- ---------------
<S> <C> <C>
Net asset value, beginning of period ................. $ 10.00 $ 10.00
---------- ---------
Income from investment operations:
Net investment income ................................ 0.03 0.02
Net realized and unrealized gain/(loss) on investments 0.58 0.61
---------- ---------
Total from investment operations ..................... 0.61 0.63
---------- ---------
Net increase (decrease) in net asset value ........... 0.61 0.63
---------- ---------
Net asset value, end of period ....................... $ 10.61 $ 10.63
========== =========
Total return ......................................... 7.00%(**) 7.30%(**)
Ratios to average net assets/supplemental data:
Net assets, end of period (in 000's) ................. $ 127 $ 332
Ratio of operating expenses to average net assets .... 0.99%(*) 0.74%(*)
Ratio of net investment income/(loss)
to average net assets .............................. 0.68%(*) 0.93%(*)
Portfolio turnover rate .............................. -- --
Ratio of operating expenses to average net
assets without fee waivers/reimbursements .......... 32.63%(*) 32.38%(*)
</TABLE>
(*) Annualized
(**) Not annualized
(1) The Fund commenced operations on September 13, 1998.
See Notes to Financial Statements.
17
<PAGE>
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
Germany Index Fund(1)
For a Fund share outstanding throughout the period.
<TABLE>
<CAPTION>
R Class I Class
--------------- ----------------
Period Ended Period Ended
1/31/99 1/31/99
(Unaudited) (Unaudited)
--------------- ----------------
<S> <C> <C>
Net asset value, beginning of period ................. $ 10.00 $ 10.00
---------- ----------
Income from investment operations:
Net investment income ................................ 0.04 0.01
Net realized and unrealized gain/(loss) on investments 1.89 1.93
---------- ----------
Total from investment operations ..................... 1.93 1.94
---------- ----------
Net increase (decrease) in net asset value ........... 1.93 1.94
---------- ----------
Net asset value, end of period ....................... $ 11.93 $ 11.94
========== ==========
Total return ......................................... 19.30%(**) 19.40%(**)
Ratios to average net assets/supplemental data:
Net assets, end of period (in 000's) ................. $ 145 $ 829
Ratio of operating expenses to average net assets .... 0.99%(*) 0.74%(*)
Ratio of net investment income/(loss)
to average net assets .............................. 0.69%(*) 0.94%(*)
Portfolio turnover rate .............................. -- --
Ratio of operating expenses to average
net assets without fee waivers/reimbursements ...... 36.95%(*) 36.70%(*)
</TABLE>
- --------------------
(*) Annualized
(**) Not annualized
(1) The Fund commenced operations on September 22, 1998.
See Notes to Financial Statements.
18
<PAGE>
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
Hong Kong Index Fund(1)
For a Fund share outstanding throughout the period.
<TABLE>
<CAPTION>
R Class I Class
------------ -------------
Period Ended Period Ended
1/31/99 1/31/99
(Unaudited) (Unaudited)
------------ -------------
<S> <C> <C>
Net asset value, beginning of period ...................... $ 10.00 $ 10.00
------- -------
Income from investment operations:
Net investment income ..................................... 0.01 0.07
Net realized and unrealized gain/(loss)
on investments ........................................... 0.91 0.90
------- -------
Total from investment operations .......................... 0.92 0.97
------- -------
Net increase (decrease) in net asset value ................ 0.92 0.97
------- -------
Net asset value, end of period ............................ $ 10.92 $ 10.97
======= =======
Total return .............................................. 9.20%(**) 9.70%(**)
Ratios to average net assets/supplemental data:
Net assets, end of period (in 000's) ...................... $ 189 $ 17
Ratio of operating expenses to average
net assets .............................................. 0.99%(*) 0.74%(*)
Ratio of net investment income/(loss)
to average net assets ................................... 0.48%(*) 0.73%(*)
Portfolio turnover rate ................................... -- --
Ratio of operating expenses to average
net assets without fee waivers/reimbursements ........... 26.47%(*) 26.22%(*)
</TABLE>
- -----------------------
(*) Annualized
(**) Not annualized
(1) The Fund commenced operations on September 22, 1998.
See Notes to Financial Statements.
19
<PAGE>
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
Italy Index Fund(1)
For a Fund share outstanding throughout the period.
<TABLE>
<CAPTION>
R Class I Class
------------- -------------
Period Ended Period Ended
1/31/99 1/31/99
(Unaudited) (Unaudited)
------------- -------------
<S> <C> <C>
Net asset value, beginning of period ...................... $ 10.00 $ 10.00
------- -------
Income from investment operations:
Net investment income ..................................... 0.09(A) 0.12(A)
Net realized and unrealized gain/(loss) on investments .... 2.28 2.27
------- -------
Total from investment operations .......................... 2.37 2.39
------- -------
Net increase (decrease) in net asset value ................ 2.37 2.39
------- -------
Net asset value, end of period ............................ $ 12.37 $ 12.39
======= =======
Total return .............................................. 23.70%(**) 23.90%(**)
Ratios to average net assets/supplemental data:
Net assets, end of period (in 000's) ...................... $ 149 $ 331
Ratio of operating expenses to average net assets ......... 0.99%(*) 0.74%(*)
Ratio of net investment income/(loss) to average net assets 1.73%(*) 1.98%(*)
Portfolio turnover rate ................................... -- --
Ratio of operating expenses to average net assets without
fee waivers/reimbursements .............................. 20.55%(*) 20.30%(*)
</TABLE>
- -----------------------
(*) Annualized
(**) Not annualized
(1) The Fund commenced operations on September 22, 1998.
(A) The selected per share data was calculated using the weighted average
shares outstanding method for the period.
See Notes to Financial Statements.
20
<PAGE>
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
Japan Index Fund(1)
For a Fund share outstanding throughout the period.
<TABLE>
<CAPTION>
R Class I Class
------------ --------------
Period Ended Period Ended
1/31/99 1/31/99
(Unaudited) (Unaudited)
------------ --------------
<S> <C> <C>
Net asset value, beginning of period ...................... $ 10.00 $ 10.00
------- -------
Income from investment operations:
Net investment income ..................................... 0.02 0.05
Net realized and unrealized gain/(loss)
on investments .......................................... 0.94 0.89
------- ------
Total from investment operations .......................... 0.96 0.94
------- ------
Net increase (decrease) in net asset value ................ 0.96 0.94
------- -------
Net asset value, end of period ............................ $ 10.96 $ 10.94
======= =======
Total return .............................................. 9.60%(**) 9.40%(**)
Ratios to average net assets/supplemental data:
Net assets, end of period (in 000's) ...................... $ 608 $ 57
Ratio of operating expenses to average net assets ......... 0.99%(*) 0.74%(*)
Ratio of net investment income/(loss)
to average net assets ................................... 1.07%(*) 1.32%(*)
Portfolio turnover rate ................................... -- --
Ratio of operating expenses to average
net assets without fee waivers/reimbursements ........... 20.37%(*) 20.12%(*)
</TABLE>
- -----------------------
(*) Annualized
(**) Not annualized
(1) The Fund commenced operations on September 23, 1998.
See Notes to Financial Statements.
21
<PAGE>
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
Netherlands Index Fund(1)
For a Fund share outstanding throughout the period.
<TABLE>
<CAPTION>
R Class I Class
-------------- --------------
Period Ended Period Ended
1/31/99 1/31/99
(Unaudited) (Unaudited)
-------------- --------------
<S> <C> <C>
Net asset value, beginning of period ...................... $ 10.00 $ 10.00
------- -------
Income from investment operations:
Net investment income ..................................... (0.03)(A) (0.01)(A)
Net realized and unrealized gain/(loss) ------- -------
on investments .......................................... 0.77 0.76
------- -------
Total from investment operations .......................... 0.74 0.75
------- -------
Net increase (decrease) in net asset value ................ 0.74 0.75
------- -------
Net asset value, end of period ............................ $ 10.74 $ 10.75
======= =======
Total return .............................................. 7.40%(**) 7.50%(**)
Ratios to average net assets/supplemental data:
Net assets, end of period (in 000's) ...................... $ 5 $ 322
Ratio of operating expenses to average
net assets .............................................. 0.99%(*) 0.74%(*)
Ratio of net investment income/(loss)
to average net assets ................................... (0.58)%(*) (0.33)%(*)
Portfolio turnover rate ................................... 352%(**) 352%(**)
Ratio of operating expenses to average
net assets without fee waivers/reimbursements ........... 41.01%(*) 40.76%(*)
</TABLE>
- --------------------
(*) Annualized
(**) Not annualized
(1) The Fund commenced operations on September 23, 1998.
(A) The selected per share data was calculated using the weighted average
shares outstanding method for the period.
See Notes to Financial Statements.
22
<PAGE>
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
Spain Index Fund(1)
For a Fund share outstanding throughout the period.
<TABLE>
<CAPTION>
R Class I Class
------------- --------------
Period Ended Period Ended
1/31/99 1/31/99
(Unaudited) (Unaudited)
------------- --------------
<S> <C> <C>
Net asset value, beginning of period ...................... $ 10.00 $ 10.00
------- -------
Income from investment operations:
Net investment income ..................................... 0.24 0.21
Net realized and unrealized gain/(loss) on investments .... 1.52 1.49
------- -------
Total from investment operations .......................... 1.76 1.70
------- -------
Net increase (decrease) in net asset value ................ 1.76 1.70
------- -------
Net asset value, end of period ............................ $ 11.76 $ 11.70
======= =======
Total return .............................................. 17.60%(**) 16.90%(**)
Ratios to average net assets/supplemental data:
Net assets, end of period (in 000's) ...................... $ 23 $ 337
Ratio of operating expenses to average net assets ......... 0.99%(*) 0.74%(*)
Ratio of net investment income/(loss) to average net assets 1.75%(*) 2.00%(*)
Portfolio turnover rate ................................... -- --
Ratio of operating expenses to average net assets without
fee waivers/reimbursements .............................. 22.15%(*) 21.90%(*)
</TABLE>
- ------------------------
(*) Annualized
(**) Not annualized
(1) The Fund commenced operations on September 22, 1998.
See Notes to Financial Statements.
23
<PAGE>
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
Sweden Index Fund(1)
For a Fund share outstanding throughout the period.
<TABLE>
<CAPTION>
R Class I Class
------------- -------------
Period Ended Period Ended
1/31/99 1/31/99
(Unaudited) (Unaudited)
------------- -------------
<S> <C> <C>
Net asset value, beginning of period ...................... $ 10.00 $ 10.00
------- -------
Income from investment operations:
Net investment income ..................................... (0.02) --
Net realized and unrealized gain/(loss)
on investments .......................................... 0.75 0.74
------- -------
Total from investment operations .......................... 0.73 0.74
------- -------
Net increase (decrease) in net asset value ................ 0.73 0.74
------- -------
Net asset value, end of period ............................ $ 10.73 $ 10.74
======= =======
Total return .............................................. 7.30%(**) 7.40%(**)
Ratios to average net assets/supplemental data:
Net assets, end of period (in 000's) ...................... $ 11 $ 332
Ratio of operating expenses to average
net assets .............................................. 0.99%(*) 0.74%(*)
Ratio of net investment income/(loss) to average net assets (0.15)%(*) 0.10%(*)
Portfolio turnover rate ................................... -- --
Ratio of operating expenses to average
net assets without fee waivers/reimbursements ........... 25.47%(*) 25.22%(*)
</TABLE>
(*) Annualized
(**) Not annualized
(1) The Fund commenced operations September 22, 1998.
See Notes to Financial Statements.
24
<PAGE>
-----------------------------------------------------------------------
---------
Financial Highlights
-----------------------------------------------------------------------
---------
Switzerland Index Fund(1)
For a Fund share outstanding throughout the period.
<TABLE>
<CAPTION>
R
Class I Class
------------- --------------
Period
Ended Period Ended
1/31/99 1/31/99
(Unaudited) (Unaudited)
------------- --------------
<S> <C>
<C>
Net asset value, beginning of period ...................... $
10.00 $ 10.00
------- -------
Income from investment operations:
Net investment income .....................................
(0.03)(A) (0.01)(A)
Net realized and unrealized gain/(loss)
on investments ..........................................
0.16 0.17
------- -------
Total from investment operations ..........................
0.13 0.16
------- -------
Net increase (decrease) in net asset value ................
0.13 0.16
------- -------
Net asset value, end of period ............................ $
10.13 $ 10.16
======= =======
Total return ..............................................
1.30%(**) 1.60%(**)
Ratios to average net assets/supplemental data:
Net assets, end of period (in 000's) ...................... $
3 $ 319
Ratio of operating expenses to average
net assets ..............................................
0.99%(*) 0.74%(*)
Ratio of net investment income/(loss) to
average net assets ......................................
(0.63)%(*) (0.38)%(*)
Portfolio turnover rate ...................................
769%(**) 769%(**)
Ratio of operating expenses to average
net assets without fee waivers/reimbursements ...........
42.83%(*) 42.58%(*)
</TABLE>
------------------------
(*) Annualized
(**) Not annualized
(1) The Fund commenced operations on September 23, 1998.
(A) The selected per share data was calculated using the weighted
average
shares outstanding method for the period.
See Notes to Financial Statements.
25
<PAGE>
-----------------------------------------------------------------------
---------
Financial Highlights
-----------------------------------------------------------------------
---------
United Kingdom Index Fund(1)
For a Fund share outstanding throughout the period.
<TABLE>
<CAPTION>
R Class
I Class
------------- ------------
Period
Ended Period Ended
1/31/99
1/31/99
(Unaudited) (Unaudited)
------------- ------------
<S> <C>
<C>
Net asset value, beginning of period ...................... $ 10.00
$ 10.00
-------
-------
Income from investment operations:
Net investment income ..................................... (0.02)
(0.01)
Net realized and unrealized gain/(loss) on investments .... 1.44
1.44
-------
-------
Total from investment operations .......................... 1.42
1.43
-------
-------
Net increase (decrease) in net asset value ................ 1.42
1.43
-------
-------
Net asset value, end of period ............................ $ 11.42
$ 11.43
=======
=======
Total return ..............................................
14.20%(**) 14.30%(**)
Ratios to average net assets/supplemental data:
Net assets, end of period (in 000's) ...................... $ 28
$ 424
Ratio of operating expenses to average net assets .........
0.99%(*) 0.74%(*)
Ratio of net investment income/(loss) to average net assets
(0.74)%(*) (0.49)%(*)
Portfolio turnover rate ................................... --
--
Ratio of operating expenses to average net assets without
fee waivers/reimbursements ..............................
71.68%(*) 71.43%(*)
</TABLE>
(*) Annualized
(**) Not annualized
(1) The Fund commenced operations on September 22, 1998.
See Notes to Financial Statements.
26
<PAGE>
-----------------------------------------------------------------------
---------
Financial Highlights
-----------------------------------------------------------------------
---------
Europe Index Fund(1)
For a Fund share outstanding throughout the period.
<TABLE>
<CAPTION>
R Class
I Class
-------------- ------------
Period
Ended Period Ended
1/31/99
1/31/99
(Unaudited) (Unaudited)
-------------- ------------
<S> <C>
<C>
Net asset value, beginning of period ...................... $ 10.00
$ 10.00
-------
-------
Income from investment operations:
Net investment income ..................................... --
--
Net realized and unrealized gain/(loss) on investments .... 1.31
1.35
-------
-------
Total from investment operations .......................... 1.31
1.35
-------
-------
Net increase (decrease) in net asset value ................ 1.31
1.35
-------
-------
Net asset value, end of period ............................ $ 11.31
$ 11.35
=======
=======
Total return ..............................................
13.10%(**) 13.50%(**)
Ratios to average net assets/supplemental data:
Net assets, end of period (in 000's) ...................... $ 846
$ 1,642
Ratio of operating expenses to average net assets .........
0.25%(*) 0.00%(*)
Ratio of net investment income/(loss) to average net assets
(0.25)%(*) 0.00%(*)
Portfolio turnover rate ...................................
383%(**) 383%(**)
Ratio of operating expenses to average net assets without
fee waivers/reimbursements ..............................
4.86%(*) 4.61%(*)
</TABLE>
(*) Annualized
(**) Not annualized
(1) The Fund commenced operations on September 22, 1998.
See Notes to Financial Statements.
27
<PAGE>
-----------------------------------------------------------------------
---------
Financial Highlights
-----------------------------------------------------------------------
---------
International Index Fund(1)
For a Fund share outstanding throughout the period.
<TABLE>
<CAPTION>
R Class
I Class
Period
Ended Period Ended
1/31/99
1/31/99
(Unaudited) (Unaudited)
------------ ------------
<S> <C>
<C>
Net asset value, beginning of period ...................... $ 10.00
$ 10.00
-------
-------
Income from investment operations:
Net investment income ..................................... (0.01)
--
Net realized and unrealized gain/(loss) on investments .... 1.06
0.63
-------
-------
Total from investment operations .......................... 1.05
0.63
-------
-------
Net increase (decrease) in net asset value ................ 1.05
0.63
-------
-------
Net asset value, end of period ............................ $ 11.05
$ 10.63
=======
=======
Total return ..............................................
10.50%(**) 6.30%(**)
Ratios to average net assets/supplemental data:
Net assets, end of period (in 000's) ...................... $ 246
$ 24
Ratio of operating expenses to average net assets .........
0.25%(*) 0.00%(*)
Ratio of net investment income/(loss) to average net assets
(0.25)%(*) 0.00%(*)
Portfolio turnover rate ...................................
2,953%(**) 2,953%(**)
Ratio of operating expenses to average net assets without
fee waivers/reimbursements ..............................
1.84%(*) 1.59%(*)
</TABLE>
(*) Annualized
(**) Not annualized
(1) The Fund commenced operations on September 22, 1998.
See Notes to Financial Statements.
28
<PAGE>
-----------------------------------------------------------------------
---------
Notes to Financial Statements (unaudited)
-----------------------------------------------------------------------
---------
WorldWide Index Funds
1. Organization
Worldwide Index Funds ("the Trust"), is organized as a Massachusetts
business
trust and is registered under the Investment Company Act of 1940, as
amended, as
an open-end management investment company. The Trust offers the
following
thirteen investment portfolios: Australia Index Fund, France Index
Fund, Germany
Index Fund, Hong Kong Index Fund, Italy Index Fund, Japan Index Fund,
Netherlands Index Fund, Spain Index Fund, Sweden Index Fund,
Switzerland Index
Fund, United Kingdom Index Fund, Europe Index Fund, and International
Index Fund
(individually, a "Fund", collectively the "Funds"). The Funds offer R
Class
shares to retail investors and I Class shares to institutional
investors. Each
class of shares outstanding bears the same voting, dividend,
liquidation and
other rights and conditions, except that the expenses incurred in the
shareholder servicing of such shares are different for each class. The
R Class
is subject to a shareholder servicing fee up to 0.25% of the average
daily net
assets.
The Australia, France, Germany, Hong Kong, Italy, Japan, Netherlands,
Spain,
Sweden, Switzerland, and United Kingdom Index Funds (the "Country Index
Funds")
seek long-term capital appreciation that reasonably corresponds with
local
market equity returns. Each Country Index Fund seeks to track as
closely as
possible the performance of a widely used index of local market equity
securities (the "Local Market Index" or "LMI") for each respective
country, and
seeks to reduce or eliminate the impact of currency fluctuation.
The Europe Index Fund and International Index Fund are "funds of funds"
(the
"Funds of Index Funds") which will invest in I Class shares of a
particular
group of Country Index Funds. The Funds of Index Funds seek long-term
capital
appreciation that reasonably corresponds with local market equity
returns of the
group of countries in which the underlying Country Index Funds invest,
and seek
to reduce or eliminate the impact of currency fluctuation.
2. Significant Accounting Policies
The following summarizes the significant accounting policies of the
Trust:
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.
Portfolio Valuation:
The value of a foreign security is determined as of the close of
trading on the
foreign exchange on which it is traded, or as of the close of trading
on the New
York Stock Exchange (the "NYSE"), if that is earlier. The value is then
converted into its U.S. dollar equivalent at the foreign exchange rate
in effect
at noon, New York time, on the day the value of the foreign security is
determined. If no sale is reported at that time, the foreign security
is valued
within the range of the most recent quoted bid and ask prices.
The value of a futures contract equals the unrealized gain or loss on
the
contract, which is determined by marking the contract to the current
settlement
price for a like contract acquired on the day on which the futures
contract is
being valued. A settlement price may not be issued if the market makes
a limited
move with respect to the security or index underlying the futures
contract. In
such event, the futures contract will be valued at a fair market value
to be
determined by or under the direction of the Board of Trustees.
The Funds determine net asset value as of the close of regular trading
on the
NYSE. Because the Funds have portfolio securities that are listed on
foreign
exchanges which may trade on weekends or other days when the Funds do
not price
their shares, the net asset value of the Funds' shares may change on
days when
shareholders will not be able to purchase or redeem the Funds' shares.
With respect to the Funds of Index Funds, investments in the underlying
funds
are valued at the closing net asset value per share of each underlying
fund on
the day of valuation. Assets for which the above valuation procedures
are
inappropriate or are deemed not to reflect fair value are stated at
fair value
as determined in good faith by or under the supervision of the officers
of the
fund, as authorized by the Board of Trustees.
The Funds generally value securities at market price. If market prices
are
unavailable or become unreliable because of events occurring during or
after the
close of trading in any of the relevant foreign markets, fair value
prices may
be determined in good faith under consistently applied procedures
established by
and under the supervision of the Board of Trustees.
29
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Notes to Financial Statements (unaudited) (continued)
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---------
WorldWide Index Funds
Futures Contracts/Forward Contracts
The Funds may use futures contracts and forward contracts because these
instruments provide the Funds with higher liquidity, lower brokerage
costs, and
the ability to track the performance of the securities in an LMI
without
purchasing the underlying securities. Using these instruments and
investing in
indexed securities involves special risks, including: (1) imperfect or
no
correlation between the price of futures contracts and forward
contracts and the
movements in the price of the underlying securities or LMIs; (2)
possible lack
of a liquid secondary market for any particular instrument at a
particular time;
(3) the fact that the skills needed to use these strategies are
different from
those needed to select portfolio securities, and; (4) losses due to
unanticipated market price movements.
These instruments may increase the volatility of a Fund. In addition,
these
instruments could result in a loss if the counterparty to the
transaction does
not perform as promised or if there is not a liquid secondary market to
close
out a position that a Fund has entered into.
The ordinary spreads between prices in the cash and futures markets,
due to the
differences in the nature of those markets, are subject to distortion.
Investors
should also be aware that while index futures contracts closely
correlate with
the applicable LMIs over long periods, over the shorter-term there may
be lesser
correlation. As a result, a Fund's short-term performance will reflect
such
deviation from its relevant LMI.
The Funds may only invest in futures in countries that have futures
markets recognized by the Commodities Futures Trading Commission
(the "CFTC").
Because
the futures markets of Switzerland and the Netherlands are not
recognized by the
CFTC, the Switzerland and Netherlands Index Funds are unable to invest
in
futures contracts in their respective countries.
Forward Foreign Currency Contracts:
Forward foreign currency contracts are marked-to-market daily using
foreign
currency exchange rates supplied by an independent pricing service. The
change
in a contract's market value is recorded by the Funds as an unrealized
gain or
loss. When the contract is closed or delivery is taken, the Funds
record a
realized gain or loss equal to the difference between the value of the
contract
at the time it was opened and the value at the time it was closed.
Foreign Currency Transactions:
The accounting records of the Funds are maintained in U.S. dollars. All
assets
and liabilities initially expressed in foreign currencies are
translated into
U.S. dollars at prevailing exchange rates. Purchases and sales of
investment
securities, dividend and interest income, and certain expenses are
translated at
the rates of exchange prevailing on the respective dates of such
transactions.
Net realized foreign currency exchange gains or losses arise from sales
of
foreign currencies and the difference between asset and liability
amounts
initially stated in foreign currencies and the U.S. dollar value of the
amounts
actually received or paid net unrealized foreign currency exchange
gains or
losses arise from changes in the value of assets and liabilities, other
than
portfolio securities, resulting from changes in the exchange rates.
Net realized and unrealized foreign currency exchange gains or losses
occurring
during the holding period of portfolio securities are a component of
realized
gain (loss) on investments and unrealized appreciation (depreciation)
on
investments, respectively.
Securities transactions and investment income:
Securities transactions are recorded as of the trade date. Realized
gains and
losses from securities sold are recorded on the identified cost basis.
Interest
income is recorded on the accrual basis and consists of interest
accrued and, if
applicable, discount earned less premiums amortized. Dividend income is
recorded
on the ex-dividend date, except that certain dividends from foreign
securities
are recorded as soon as the Funds are informed of the ex-dividend date.
Each
Fund's investment income and realized and unrealized gains and losses
are
allocated among the classes of that Fund based upon the relative
average net
assets of each class.
30
<PAGE>
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---------
Notes to Financial Statements (unaudited) (continued)
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---------
WorldWide Index Funds
Dividends and distributions to shareholders:
The Funds will distribute any net investment income and capital gains
at least
annually. Distributions to shareholders are recorded by each Fund on
the
ex-dividend date. The Trust, however, may declare a special capital
gain
distribution if the Trustees believe that such a distribution would be
in the
best interest of the shareholders of a Fund. The character of income
and capital
gain distributions are determined in accordance with United States
income tax
regulations, which may differ from generally accepted accounting
principles.
These differences are primarily due to differing book and tax
treatments in the
timing of the recognition of gains or losses and forward foreign
currency
transactions, non-taxable dividends and losses deferred due to wash
sales. Any
taxable income or gain remaining at fiscal year end is distributed in
the
following year.
Federal income taxes:
Each Fund intends to qualify as a regulated investment company by
complying with
the requirements of the Internal Revenue Code applicable to regulated
investment
companies and distributing substantially all of its net investment
income to its
shareholders. Therefore, no provision for Federal income tax is
required.
Expenses:
General expenses of the Trust are allocated to all the Funds based upon
relative
net assets of each Fund. Operating expenses directly attributable to a
class of
shares are charged to the operations of that class of shares. Expenses
of each
Fund not directly attributable to the operations of any class of shares
are
prorated among the classes to which the expenses relate based on the
average net
assets of each class of shares.
The Advisor has agreed to bear all organizational expenses of the
Trust.
Purchase fees:
The Funds will impose a purchase fee of .50% as a percentage of net
asset value
payable to the respective Fund on the initial purchase into a Fund.
These
purchase fees are not sales charges, but are allocated to the Funds
based on
average net assets for the benefit of all shareholders. Any exchanges
between
the Funds are not subject to the purchase fee. Purchase fees are
intended to
cover brokerage fees, other costs associated with purchasing or selling
portfolio securities and other transaction-related expenses.
3. Investment Advisory, Sub-Advisory, Administration Fees and Other
Transactions
LMI Investment Advisors LLC (the "Advisor") serves as the investment
adviser for
each Fund. For its services, the Advisor will receive from each Fund a
fee,
computed daily and paid monthly at the annual rate of .50% of the
average daily
net assets for the Country Index Funds and no fees taken for the Funds
of Index
Funds. State Street Global Advisors (the "Sub-Advisor"), serves as the
investment sub-advisor for each Fund. The Advisor is solely responsible
for the
payment of all fees to the Sub-Advisor. Currently all Advisor fees are
voluntarily being waived by the Advisor.
LMI Capital Administration (the "Administrator") provides shareholder
services
and other administrative services under an Administration Agreement
with the
Trust. The Administrator is entitled to a monthly fee at an annual rate
of .20%
of each Country Index Fund's average daily net assets and at an annual
rate of
.05% of each Fund of Index Fund's average daily net assets. Currently,
all
Administration Fees are being waived by the Administrator. The
Administrator has
entered into a Sub-Administration agreement with First Data Investor
Services
Group, Inc. ("Investor Services Group"), a subsidiary of First Data
Corporation.
All Sub-Administration fees are paid directly by the Administrator.
Additionally
the Trust has entered into an agreement with Investor Services Group to
provide
fund accounting and transfer agency services. First Data Distributors,
Inc. (the
"Distributor") a wholly-owned subsidiary of Investor Services Group and
an
indirect wholly-owned subsidiary of First Data Corporation, serves as
Distributor for the Funds.
31
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---------
Notes to Financial Statements (unaudited) (continued)
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---------
WorldWide Index Funds
4. Trustees' Fees
No director, officer or employee of the Trust or its subsidiaries, the
Advisor,
Sub-Advisor or Investor Services Group, or any of their affiliates
receives any
compensation from the Trust for serving as an officer or Trustee of the
Trust.
The Trust pays each unaffiliated Trustee $2,500 per annum plus $1,500
per board
meeting attended. Currently all Trustee fees, with the exception of
out-of-pocket expenses, are voluntarily being waived by the Trustees.
5. Waiver of Fees and Reimbursement of Expenses
Through December 31, 2001, the Advisor has voluntarily agreed, by
waiving fees
and reimbursing expenses, to limit each Fund's total annual expense
ratio to
0.99% for R Class shares and 0.74% for I Class shares. For the period
ended
January 31, 1999, the waived/reimbursed fees with respect to the Funds
are as
follows: WorldWide Index Funds
<TABLE>
<CAPTION>
Name of Fund Trustees Fees Waived Advisor
Fees Waived Administration Fees Waived
------------ --------------------
------------------- --------------------------
<S> <C> <C>
<C>
Australia Index Fund $ 643 $
189 $ 76
France Index Fund 1,681
565 226
Germany Index Fund 1,865
636 254
Hong Kong Index Fund 761
255 102
Italy Index Fund 6,117
1,985 794
Japan Index Fund 2,578
736 294
Netherlands Index Fund 1,060
313 125
Spain Index Fund 3,809
1,640 656
Sweden Index Fund 1,473
287 115
Switzerland Index Fund 1,247
366 146
United Kingdom Index Fund 1,266
399 159
Europe Index Fund --
-- 125
International Index Fund --
-- 75
</TABLE>
<TABLE>
<CAPTION>
Fees Waived/Reimbursed by
Name of Fund Fees Reimbursed by Advisor
Fund Accounting and Transfer Agent
------------ --------------------------
----------------------------------
<S> <C>
<C>
Australia Index Fund $ 2,822
$ 5,166
France Index Fund 13,243
17,238
Germany Index Fund 16,859
22,711
Hong Kong Index Fund 3,638
6,867
Italy Index Fund 29,588
30,326
Japan Index Fund 9,149
12,197
Netherlands Index Fund 8,269
13,476
Spain Index Fund 27,300
29,088
Sweden Index Fund 4,714
5,872
Switzerland Index Fund 10,789
15,922
United Kingdom Index Fund 28,211
24,574
Europe Index Fund 3,617
1,752
International Index Fund --
1,724
</TABLE>
32
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---------
Notes to Financial Statements (unaudited) (continued)
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---------
WorldWide Index Funds
6. Shareholder Servicing Plan
The Trust has adopted a Shareholder Servicing Plan. Payments under the
Shareholder Servicing Plan for R Class shares will be calculated daily
and paid
quarterly at a rate of 0.25% (on an annualized basis) of the average
net asset
value of the R Class shares.
7. Purchases and Sales of Securities
The aggregate cost of purchases and proceeds from sales of investments,
excluding short-term investments, for the period ended January 31,
1999, were as
follows:
Name of Fund Purchases Sales
------------ ---------- -----------
Australia Index Fund $ -- $ --
France Index Fund -- --
Germany Index Fund -- --
Hong Kong Index Fund -- --
Italy Index Fund -- --
Japan Index Fund -- --
Netherlands Index Fund 875,247 (509,126)
Spain Index Fund -- --
Sweden Index Fund -- --
Switzerland Index Fund 1,169,442 (916,939)
United Kingdom Index Fund -- --
Europe Index Fund 6,306,906 (3,505,970)
International Index Fund 5,301,218 (4,798,351)
At January 31, 1999, the aggregate cost, aggregate gross unrealized
appreciation
and depreciation for all securities as computed on a federal income tax
basis
for each Fund is as follows:
<TABLE>
<CAPTION>
Unrealized Unrealized
Name of Fund Cost Appreciation
(Depreciation) Net
------------ --------- ------------
-------------- ---------
<S> <C> <C> <C>
<C>
Australia Index Fund $ -- $ -- $ --
$ --
France Index Fund -- -- --
--
Germany Index Fund -- -- --
--
Hong Kong Index Fund -- -- --
--
Italy Index Fund -- -- --
--
Japan Index Fund -- -- --
--
Netherlands Index Fund 213,092 1,571 (13,966)
(12,395)
Spain Index Fund -- -- --
--
Sweden Index Fund -- -- --
--
Switzerland Index Fund 211,943 750 (8,132)
(7,382)
United Kingdom Index Fund -- -- --
--
Europe Index Fund 2,519,762 16,551 (48,706)
(32,155)
International Index Fund 269,180 3,381 (3,783)
(402)
</TABLE>
8. Shares of Beneficial Interest
The Trust may issue an unlimited number of shares of beneficial
interest, each
without par value.
9. General Risk
All Funds will invest in foreign markets, either directly or
indirectly, and
each of these Funds will be subject to the market, economic and
political risks
prevalent in these foreign markets. Foreign securities markets
generally have
less trading volume and less liquidity than U.S. markets, and prices in
some
foreign markets can be extremely volatile.
33
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Notes to Financial Statements (unaudited) (continued)
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---------
WorldWide Index Funds
The Country Index Funds, other than the Japan, Australia and United
Kingdom
Index Funds, are "non-diversified" mutual funds. This means that each
non-diversified Fund may invest a significant portion of its assets in
securities issued by a few companies which may make the Fund
susceptible to the
risks associated with those particular companies, or a single economic,
political or regulatory occurrence.
The Funds of Index Funds do not invest in underlying funds for the
purpose of
exercising management or control; however, investments made by the
Advisor
within set limits may represent a significant portion of an underlying
fund's
net assets.
Investing in the Country Index Funds through the Funds of Index Funds
involves
certain additional expenses and tax results that would not be present
in a
direct investment in the Country Index Funds. From time to time, one or
more of
the Country Index Funds used for investment by the Funds of Index Funds
may
experience relatively large investments or redemptions due to
reallocations or
rebalancings by the Funds of Index Funds. These transactions will
affect the
Country Index Funds, since the Country Index Funds that experience
redemptions
as a result of the reallocations or rebalancings may have to sell
portfolio
securities and the Country Index Funds that receive additional cash
will have to
invest such cash. While it is impossible to predict the overall impact
of these
transactions over time, there could be adverse effects on portfolio
management
to the extent that the Country Index Funds may be required to sell
securities or
invest cash at times when they would not otherwise do so. These
transactions
could also have tax consequences if sales of securities resulted in
gains and
could also increase transaction costs.
34
<PAGE>
SA99
SA99
