<PAGE>
December 24, 1996
Dear Stockholder,
We regret to inform you that on December 20, 1996, the Board of Directors of The
CountryBaskets(SM) Index Fund, Inc. (the 'Fund') approved a Plan for Complete
Liquidation and Dissolution of the Fund (the 'Plan'). A special stockholders'
meeting to consider the Plan is scheduled for February 7, 1997 for stockholders
of record on January 7, 1997.
The Board's action was taken on the recommendation of Deutsche Morgan Grenfell
Inc. ('DMG'), the Fund's investment adviser. DMG based its recommendation
principally on the Fund's inability to attract significant levels of assets. The
Board of Directors considered several alternatives to liquidation, including the
appointment of a successor to DMG as investment adviser or the merger or sale of
one or more Series, but concluded that such alternatives were not feasible. A
proxy statement describing the background for the Board of Directors' approval
of the Plan and including a copy of the Plan will be sent to stockholders in
advance of the stockholders' meeting.
To protect stockholder interests, DMG will maintain, at its expense, a cap on
the annualized operating expense ratio of each Series of 1.0% through December
31, 1996. Thereafter, the expense ratio will be capped at 2.5% or the actual
expense ratio, before fee waivers and expense reimbursements, of each Series for
the fiscal period ended October 31, 1996, whichever is lower. This cap will be
maintained through the completion of the distribution of net assets of each
Series or, if the Plan is not approved by stockholders, through the date of the
stockholders' meeting. DMG has also undertaken to pay the costs of liquidation,
including the expenses of the stockholders' meeting.
As stockholders, you will receive all necessary accounting and tax information
required for your records. We thank you for your interest in The
CountryBaskets(SM) Index Fund, Inc.
Sincerely,
/s/ W. Carter McClelland /s/ Joseph A. La Corte
W. Carter McClelland Joseph A. La Corte
Chairman President
1
<PAGE>
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN
THE AUSTRALIA INDEX SERIES AND
FT/S&P ACTUARIES WORLD INDICES(TM) (THE "FT/S&P INDEX) AUSTRALIA INDEX
(3/22/96-10/31/96)
[PERFORMANCE GRAPH]
Date Australia Index Series FT/S&P Index
- -------- ---------------------- ------------
3/22/96 $ 10,000 $ 10,000
3/25/96 $ 10,000 $ 9,986
3/26/96 $ 10,031 $ 10,022
3/27/96 $ 10,076 $ 10,067
3/28/96 $ 10,041 $ 10,039
3/29/96 $ 10,000 $ 10,003
4/1/96 $ 10,086 $ 10,077
4/2/96 $ 10,076 $ 10,062
4/3/96 $ 10,046 $ 10,028
4/4/96 $ 10,000 $ 9,976
4/8/96 $ 10,005 $ 9,989
4/9/96 $ 10,051 $ 10,041
4/10/96 $ 10,112 $ 10,094
4/11/96 $ 10,178 $ 10,159
4/12/96 $ 10,264 $ 10,246
4/15/96 $ 10,351 $ 10,338
4/16/96 $ 10,285 $ 10,271
4/17/96 $ 10,295 $ 10,283
4/18/96 $ 10,208 $ 10,197
4/19/96 $ 10,229 $ 10,220
4/22/96 $ 10,290 $ 10,284
4/23/96 $ 10,508 $ 10,512
4/24/96 $ 10,498 $ 10,501
4/25/96 $ 10,539 $ 10,539
4/26/96 $ 10,605 $ 10,608
4/29/96 $ 10,534 $ 10,541
4/30/96 $ 10,498 $ 10,507
5/1/96 $ 10,524 $ 10,537
5/2/96 $ 10,651 $ 10,664
5/3/96 $ 10,559 $ 10,578
5/6/96 $ 10,554 $ 10,575
5/7/96 $ 10,661 $ 10,687
5/8/96 $ 10,646 $ 10,670
5/9/96 $ 10,544 $ 10,546
5/10/96 $ 10,508 $ 10,509
5/13/96 $ 10,458 $ 10,467
5/14/96 $ 10,513 $ 10,522
5/15/96 $ 10,488 $ 10,498
5/16/96 $ 10,427 $ 10,442
5/17/96 $ 10,442 $ 10,457
5/20/96 $ 10,351 $ 10,375
5/21/96 $ 10,290 $ 10,312
5/22/96 $ 10,290 $ 10,317
5/23/96 $ 10,381 $ 10,408
5/24/96 $ 10,320 $ 10,352
5/28/96 $ 10,407 $ 10,444
5/29/96 $ 10,473 $ 10,511
5/30/96 $ 10,361 $ 10,383
5/31/96 $ 10,442 $ 10,471
6/3/96 $ 10,310 $ 10,339
6/4/96 $ 10,320 $ 10,340
6/5/96 $ 10,224 $ 10,239
6/6/96 $ 10,051 $ 10,068
6/7/96 $ 10,153 $ 10,171
6/10/96 $ 10,168 $ 10,197
6/11/96 $ 10,178 $ 10,205
6/12/96 $ 10,127 $ 10,154
6/13/96 $ 10,107 $ 10,108
6/14/96 $ 10,153 $ 10,159
6/17/96 $ 10,107 $ 10,118
6/18/96 $ 10,163 $ 10,164
6/19/96 $ 10,173 $ 10,182
6/20/96 $ 10,264 $ 10,274
6/21/96 $ 10,320 $ 10,321
6/24/96 $ 10,330 $ 10,348
6/25/96 $ 10,310 $ 10,324
6/26/96 $ 10,300 $ 10,311
6/27/96 $ 10,239 $ 10,238
6/28/96 $ 10,229 $ 10,207
7/1/96 $ 10,249 $ 10,230
7/2/96 $ 10,239 $ 10,223
7/3/96 $ 10,122 $ 10,103
7/5/96 $ 10,203 $ 10,186
7/8/96 $ 10,061 $ 10,049
7/9/96 $ 10,071 $ 10,059
7/10/96 $ 10,168 $ 10,158
7/11/96 $ 10,071 $ 10,062
7/12/96 $ 9,959 $ 9,951
7/15/96 $ 9,868 $ 9,864
7/16/96 $ 9,629 $ 9,626
7/17/96 $ 9,568 $ 9,570
7/18/96 $ 9,741 $ 9,746
7/19/96 $ 9,924 $ 9,932
7/22/96 $ 9,914 $ 9,922
7/23/96 $ 9,837 $ 9,851
7/24/96 $ 9,731 $ 9,744
7/25/96 $ 9,690 $ 9,705
7/26/96 $ 9,847 $ 9,861
7/29/96 $ 9,797 $ 9,817
7/30/96 $ 9,710 $ 9,731
7/31/96 $ 9,827 $ 9,849
8/1/96 $ 9,868 $ 9,889
8/2/96 $ 9,939 $ 9,960
8/5/96 $ 10,046 $ 10,065
8/6/96 $ 10,025 $ 10,053
8/7/96 $ 10,036 $ 10,059
8/8/96 $ 10,097 $ 10,118
8/9/96 $ 10,076 $ 10,097
8/12/96 $ 10,041 $ 10,070
8/13/96 $ 10,122 $ 10,150
8/14/96 $ 10,097 $ 10,125
8/15/96 $ 10,132 $ 10,163
8/16/96 $ 10,208 $ 10,238
8/19/96 $ 10,432 $ 10,470
8/20/96 $ 10,386 $ 10,425
8/21/96 $ 10,534 $ 10,570
8/22/96 $ 10,508 $ 10,548
8/23/96 $ 10,549 $ 10,588
8/26/96 $ 10,503 $ 10,545
8/27/96 $ 10,361 $ 10,387
8/28/96 $ 10,498 $ 10,523
8/29/96 $ 10,488 $ 10,515
8/30/96 $ 10,422 $ 10,457
9/3/96 $ 10,315 $ 10,347
9/4/96 $ 10,386 $ 10,420
9/5/96 $ 10,397 $ 10,434
9/6/96 $ 10,346 $ 10,380
9/9/96 $ 10,463 $ 10,499
9/10/96 $ 10,463 $ 10,500
9/11/96 $ 10,437 $ 10,476
9/12/96 $ 10,341 $ 10,374
9/13/96 $ 10,381 $ 10,419
9/16/96 $ 10,386 $ 10,428
9/17/96 $ 10,341 $ 10,384
9/18/96 $ 10,229 $ 10,268
9/19/96 $ 10,315 $ 10,357
9/20/96 $ 10,310 $ 10,354
9/23/96 $ 10,208 $ 10,249
9/24/96 $ 10,229 $ 10,265
10/31/96 $ 10,966 $ 10,989
Past performance is not predictive of future performance Correlation: .9973
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN
THE FRANCE INDEX SERIES AND
FT/S&P FRANCE INDEX (3/27/96-10/31/96)
[PERFORMANCE GRAPH]
Date France Index Series FT/S&P Index
- -------- ------------------- ------------
3/27/96 $ 10,000 $ 10,000
3/28/96 $ 10,024 $ 10,014
3/29/96 $ 10,151 $ 10,146
4/1/96 $ 10,178 $ 10,172
4/2/96 $ 10,239 $ 10,232
4/3/96 $ 10,223 $ 10,216
4/4/96 $ 10,263 $ 10,258
4/8/96 $ 10,276 $ 10,274
4/9/96 $ 10,212 $ 10,212
4/10/96 $ 10,233 $ 10,236
4/11/96 $ 10,130 $ 10,134
4/12/96 $ 10,130 $ 10,137
4/15/96 $ 10,111 $ 10,123
4/16/96 $ 10,183 $ 10,197
4/17/96 $ 10,106 $ 10,121
4/18/96 $ 10,146 $ 10,160
4/19/96 $ 10,223 $ 10,240
4/22/96 $ 10,281 $ 10,304
4/23/96 $ 10,260 $ 10,279
4/24/96 $ 10,294 $ 10,319
4/25/96 $ 10,228 $ 10,247
4/26/96 $ 10,337 $ 10,357
4/29/96 $ 10,347 $ 10,371
4/30/96 $ 10,329 $ 10,355
5/1/96 $ 10,326 $ 10,356
5/2/96 $ 10,313 $ 10,337
5/3/96 $ 10,236 $ 10,262
5/6/96 $ 10,146 $ 10,177
5/7/96 $ 10,151 $ 10,177
5/8/96 $ 10,162 $ 10,188
5/9/96 $ 10,156 $ 10,182
5/10/96 $ 10,210 $ 10,240
5/13/96 $ 10,141 $ 10,156
5/14/96 $ 10,191 $ 10,209
5/15/96 $ 10,220 $ 10,238
5/16/96 $ 10,202 $ 10,221
5/17/96 $ 10,324 $ 10,344
5/20/96 $ 10,223 $ 10,237
5/21/96 $ 10,220 $ 10,237
5/22/96 $ 10,130 $ 10,146
5/23/96 $ 10,162 $ 10,179
5/24/96 $ 10,183 $ 10,204
5/28/96 $ 10,204 $ 10,228
5/29/96 $ 10,164 $ 10,184
5/30/96 $ 10,199 $ 10,222
5/31/96 $ 10,239 $ 10,259
6/3/96 $ 10,302 $ 10,313
6/4/96 $ 10,247 $ 10,257
6/5/96 $ 10,273 $ 10,285
6/6/96 $ 10,329 $ 10,344
6/7/96 $ 10,180 $ 10,191
6/10/96 $ 10,257 $ 10,254
6/11/96 $ 10,302 $ 10,299
6/12/96 $ 10,294 $ 10,289
6/13/96 $ 10,255 $ 10,249
6/14/96 $ 10,300 $ 10,281
6/17/96 $ 10,350 $ 10,328
6/18/96 $ 10,361 $ 10,311
6/19/96 $ 10,302 $ 10,252
6/20/96 $ 10,178 $ 10,125
6/21/96 $ 10,172 $ 10,120
6/24/96 $ 10,228 $ 10,180
6/25/96 $ 10,321 $ 10,262
6/26/96 $ 10,353 $ 10,280
6/27/96 $ 10,406 $ 10,327
6/28/96 $ 10,496 $ 10,392
7/1/96 $ 10,477 $ 10,359
7/2/96 $ 10,427 $ 10,308
7/3/96 $ 10,462 $ 10,340
7/5/96 $ 10,406 $ 10,277
7/8/96 $ 10,302 $ 10,170
7/9/96 $ 10,316 $ 10,184
7/10/96 $ 10,340 $ 10,205
7/11/96 $ 10,324 $ 10,189
7/12/96 $ 10,207 $ 10,069
7/15/96 $ 10,130 $ 9,990
7/16/96 $ 10,114 $ 9,967
7/17/96 $ 10,188 $ 10,042
7/18/96 $ 10,204 $ 10,060
7/19/96 $ 10,175 $ 10,031
7/22/96 $ 10,045 $ 9,903
7/23/96 $ 10,114 $ 9,973
7/24/96 $ 9,987 $ 9,843
7/25/96 $ 10,143 $ 10,005
7/26/96 $ 10,058 $ 9,923
7/29/96 $ 10,064 $ 9,931
7/30/96 $ 10,103 $ 9,972
7/31/96 $ 10,255 $ 10,123
8/1/96 $ 10,310 $ 10,181
8/2/96 $ 10,353 $ 10,223
8/5/96 $ 10,271 $ 10,144
8/6/96 $ 10,175 $ 10,054
8/7/96 $ 10,138 $ 10,017
8/8/96 $ 10,159 $ 10,040
8/9/96 $ 10,138 $ 10,021
8/12/96 $ 10,095 $ 9,981
8/13/96 $ 10,085 $ 9,973
8/14/96 $ 10,053 $ 9,943
8/15/96 $ 10,042 $ 9,933
8/16/96 $ 9,989 $ 9,882
8/19/96 $ 10,027 $ 9,923
8/20/96 $ 10,170 $ 10,066
8/21/96 $ 10,122 $ 10,019
8/22/96 $ 10,135 $ 10,034
8/23/96 $ 10,202 $ 10,102
8/26/96 $ 10,257 $ 10,170
8/27/96 $ 10,233 $ 10,147
8/28/96 $ 10,178 $ 10,090
8/29/96 $ 10,034 $ 9,949
8/30/96 $ 10,032 $ 9,950
9/3/96 $ 9,984 $ 9,904
9/4/96 $ 10,056 $ 9,978
9/5/96 $ 10,122 $ 10,041
9/6/96 $ 10,159 $ 10,079
9/9/96 $ 10,199 $ 10,123
9/10/96 $ 10,196 $ 10,124
9/11/96 $ 10,170 $ 10,098
9/12/96 $ 10,265 $ 10,197
9/13/96 $ 10,326 $ 10,259
9/16/96 $ 10,382 $ 10,316
9/17/96 $ 10,350 $ 10,286
9/18/96 $ 10,329 $ 10,269
9/19/96 $ 10,329 $ 10,270
9/20/96 $ 10,353 $ 10,294
9/23/96 $ 10,313 $ 10,257
9/24/96 $ 10,382 $ 10,329
10/31/96 $ 10,745 $ 10,734
Past performance is not predictive of future performance Correlation: .9966
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN
THE GERMANY INDEX SERIES AND
FT/S&P GERMANY INDEX (3/21/96-10/31/96)
[PERFORMANCE GRAPH]
Date Germany Index Series FT/S&P Index
- -------- -------------------- ------------
3/21/96 $ 10,000 $ 10,000
3/22/96 $ 10,052 $ 10,020
3/25/96 $ 10,029 $ 10,020
3/26/96 $ 10,026 $ 9,980
3/27/96 $ 10,023 $ 10,007
3/28/96 $ 10,058 $ 10,008
3/29/96 $ 9,977 $ 9,948
4/1/96 $ 9,960 $ 9,926
4/2/96 $ 9,997 $ 9,989
4/3/96 $ 10,026 $ 9,984
4/4/96 $ 10,017 $ 9,967
4/8/96 $ 10,032 $ 9,987
4/9/96 $ 9,928 $ 9,931
4/10/96 $ 9,980 $ 9,980
4/11/96 $ 9,925 $ 9,899
4/12/96 $ 9,879 $ 9,863
4/15/96 $ 9,925 $ 9,938
4/16/96 $ 9,911 $ 9,916
4/17/96 $ 9,913 $ 9,873
4/18/96 $ 9,853 $ 9,860
4/19/96 $ 9,879 $ 9,906
4/22/96 $ 9,870 $ 9,870
4/23/96 $ 9,873 $ 9,864
4/24/96 $ 9,804 $ 9,800
4/25/96 $ 9,723 $ 9,741
4/26/96 $ 9,761 $ 9,742
4/29/96 $ 9,743 $ 9,679
4/30/96 $ 9,570 $ 9,594
5/1/96 $ 9,570 $ 9,594
5/2/96 $ 9,611 $ 9,588
5/3/96 $ 9,510 $ 9,471
5/6/96 $ 9,527 $ 9,516
5/7/96 $ 9,590 $ 9,590
5/8/96 $ 9,616 $ 9,577
5/9/96 $ 9,593 $ 9,577
5/10/96 $ 9,533 $ 9,507
5/13/96 $ 9,573 $ 9,542
5/14/96 $ 9,645 $ 9,614
5/15/96 $ 9,697 $ 9,664
5/16/96 $ 9,680 $ 9,647
5/17/96 $ 9,781 $ 9,747
5/20/96 $ 9,775 $ 9,744
5/21/96 $ 9,804 $ 9,780
5/22/96 $ 9,784 $ 9,754
5/23/96 $ 9,778 $ 9,746
5/24/96 $ 9,712 $ 9,670
5/28/96 $ 9,723 $ 9,679
5/29/96 $ 9,703 $ 9,649
5/30/96 $ 9,697 $ 9,641
5/31/96 $ 9,787 $ 9,724
6/3/96 $ 9,752 $ 9,695
6/4/96 $ 9,769 $ 9,709
6/5/96 $ 9,824 $ 9,764
6/6/96 $ 9,815 $ 9,759
6/7/96 $ 9,818 $ 9,761
6/10/96 $ 9,810 $ 9,755
6/11/96 $ 9,763 $ 9,710
6/12/96 $ 9,847 $ 9,795
6/13/96 $ 9,850 $ 9,798
6/14/96 $ 9,867 $ 9,816
6/17/96 $ 9,890 $ 9,841
6/18/96 $ 9,922 $ 9,877
6/19/96 $ 9,913 $ 9,867
6/20/96 $ 9,836 $ 9,790
6/21/96 $ 9,827 $ 9,782
6/24/96 $ 9,919 $ 9,876
6/25/96 $ 9,939 $ 9,893
6/26/96 $ 9,988 $ 9,931
6/27/96 $ 9,965 $ 9,909
6/28/96 $ 10,029 $ 9,951
7/1/96 $ 10,032 $ 9,950
7/2/96 $ 10,029 $ 9,945
7/3/96 $ 10,009 $ 9,927
7/5/96 $ 10,032 $ 9,947
7/8/96 $ 9,928 $ 9,844
7/9/96 $ 10,003 $ 9,920
7/10/96 $ 10,020 $ 9,937
7/11/96 $ 10,069 $ 9,986
7/12/96 $ 9,960 $ 9,877
7/15/96 $ 10,009 $ 9,925
7/16/96 $ 9,876 $ 9,796
7/17/96 $ 10,023 $ 9,939
7/18/96 $ 10,017 $ 9,933
7/19/96 $ 10,089 $ 10,007
7/22/96 $ 9,957 $ 9,876
7/23/96 $ 9,905 $ 9,831
7/24/96 $ 9,821 $ 9,755
7/25/96 $ 9,951 $ 9,881
7/26/96 $ 9,945 $ 9,877
7/29/96 $ 9,983 $ 9,917
7/30/96 $ 9,925 $ 9,859
7/31/96 $ 10,017 $ 9,953
8/1/96 $ 10,063 $ 10,019
8/2/96 $ 10,110 $ 10,046
8/5/96 $ 10,136 $ 10,076
8/6/96 $ 10,150 $ 10,089
8/7/96 $ 10,213 $ 10,152
8/8/96 $ 10,228 $ 10,167
8/9/96 $ 10,225 $ 10,166
8/12/96 $ 10,260 $ 10,203
8/13/96 $ 10,288 $ 10,229
8/14/96 $ 10,222 $ 10,167
8/15/96 $ 10,237 $ 10,181
8/16/96 $ 10,179 $ 10,123
8/19/96 $ 10,262 $ 10,211
8/20/96 $ 10,242 $ 10,191
8/21/96 $ 10,231 $ 10,179
8/22/96 $ 10,182 $ 10,131
8/23/96 $ 10,231 $ 10,182
8/26/96 $ 10,283 $ 10,237
8/27/96 $ 10,314 $ 10,266
8/28/96 $ 10,335 $ 10,289
8/29/96 $ 10,286 $ 10,244
8/30/96 $ 10,234 $ 10,193
9/3/96 $ 10,058 $ 10,020
9/4/96 $ 10,156 $ 10,119
9/5/96 $ 10,133 $ 10,095
9/6/96 $ 10,066 $ 10,031
9/9/96 $ 10,164 $ 10,131
9/10/96 $ 10,130 $ 10,098
9/11/96 $ 10,107 $ 10,072
9/12/96 $ 10,107 $ 10,074
9/13/96 $ 10,199 $ 10,169
9/16/96 $ 10,346 $ 10,316
9/17/96 $ 10,291 $ 10,261
9/18/96 $ 10,326 $ 10,296
9/19/96 $ 10,280 $ 10,251
9/20/96 $ 10,337 $ 10,310
9/23/96 $ 10,274 $ 10,250
9/24/96 $ 10,314 $ 10,291
10/31/96 $ 10,441 $ 10,439
Past performance is not predictive of future performance Correlation: .9630
2
<PAGE>
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN
THE HONG KONG INDEX SERIES AND
FT/S&P HONG KONG INDEX (3/22/96-10/31/96)
[PERFORMANCE GRAPH]
Date Hong Kong Index Series FT/S&P Index
- -------- ---------------------- ------------
3/22/96 $ 10,000 $ 10,000
3/25/96 $ 10,100 $ 10,102
3/26/96 $ 9,976 $ 9,978
3/27/96 $ 10,065 $ 10,058
3/28/96 $ 10,031 $ 10,029
3/29/96 $ 9,976 $ 9,979
4/1/96 $ 9,945 $ 9,930
4/2/96 $ 10,130 $ 10,115
4/3/96 $ 10,134 $ 10,120
4/4/96 $ 10,141 $ 10,131
4/8/96 $ 10,120 $ 10,115
4/9/96 $ 10,124 $ 10,110
4/10/96 $ 10,100 $ 10,087
4/11/96 $ 9,959 $ 9,940
4/12/96 $ 9,894 $ 9,877
4/15/96 $ 9,979 $ 9,946
4/16/96 $ 10,045 $ 10,012
4/17/96 $ 10,000 $ 9,971
4/18/96 $ 9,973 $ 9,945
4/19/96 $ 9,897 $ 9,868
4/22/96 $ 9,938 $ 9,910
4/23/96 $ 9,918 $ 9,889
4/24/96 $ 9,914 $ 9,888
4/25/96 $ 9,811 $ 9,779
4/26/96 $ 9,791 $ 9,754
4/29/96 $ 9,866 $ 9,834
4/30/96 $ 10,000 $ 9,970
5/1/96 $ 9,962 $ 9,933
5/2/96 $ 9,993 $ 9,954
5/3/96 $ 9,825 $ 9,783
5/6/96 $ 9,804 $ 9,763
5/7/96 $ 9,818 $ 9,761
5/8/96 $ 9,760 $ 9,703
5/9/96 $ 9,712 $ 9,658
5/10/96 $ 9,715 $ 9,663
5/13/96 $ 9,839 $ 9,788
5/14/96 $ 9,907 $ 9,848
5/15/96 $ 9,942 $ 9,885
5/16/96 $ 9,925 $ 9,869
5/17/96 $ 9,928 $ 9,872
5/20/96 $ 10,055 $ 10,004
5/21/96 $ 10,130 $ 10,081
5/22/96 $ 10,127 $ 10,076
5/23/96 $ 10,103 $ 10,055
5/24/96 $ 10,096 $ 10,046
5/28/96 $ 10,158 $ 10,115
5/29/96 $ 10,213 $ 10,170
5/30/96 $ 10,206 $ 10,133
5/31/96 $ 10,299 $ 10,226
6/3/96 $ 10,110 $ 10,043
6/4/96 $ 10,141 $ 10,073
6/5/96 $ 10,127 $ 10,064
6/6/96 $ 10,223 $ 10,159
6/7/96 $ 10,202 $ 10,141
6/10/96 $ 10,165 $ 10,108
6/11/96 $ 10,021 $ 9,965
6/12/96 $ 9,986 $ 9,932
6/13/96 $ 9,890 $ 9,839
6/14/96 $ 9,921 $ 9,871
6/17/96 $ 9,914 $ 9,870
6/18/96 $ 9,993 $ 9,949
6/19/96 $ 9,959 $ 9,917
6/20/96 $ 9,969 $ 9,927
6/21/96 $ 9,928 $ 9,888
6/24/96 $ 10,010 $ 9,974
6/25/96 $ 10,038 $ 10,001
6/26/96 $ 10,113 $ 10,071
6/27/96 $ 10,079 $ 10,031
6/28/96 $ 10,120 $ 10,050
7/1/96 $ 10,093 $ 10,027
7/2/96 $ 10,151 $ 10,087
7/3/96 $ 10,110 $ 10,048
7/5/96 $ 10,185 $ 10,125
7/8/96 $ 9,928 $ 9,870
7/9/96 $ 9,969 $ 9,914
7/10/96 $ 9,966 $ 9,904
7/11/96 $ 9,962 $ 9,904
7/12/96 $ 9,859 $ 9,803
7/15/96 $ 9,849 $ 9,795
7/16/96 $ 9,715 $ 9,662
7/17/96 $ 9,688 $ 9,636
7/18/96 $ 9,763 $ 9,713
7/19/96 $ 9,887 $ 9,837
7/22/96 $ 9,822 $ 9,775
7/23/96 $ 9,842 $ 9,796
7/24/96 $ 9,681 $ 9,637
7/25/96 $ 9,674 $ 9,632
7/26/96 $ 9,667 $ 9,626
7/29/96 $ 9,619 $ 9,578
7/30/96 $ 9,554 $ 9,516
7/31/96 $ 9,633 $ 9,596
8/1/96 $ 9,743 $ 9,707
8/2/96 $ 9,883 $ 9,852
8/5/96 $ 9,986 $ 9,956
8/6/96 $ 9,976 $ 9,948
8/7/96 $ 9,990 $ 9,962
8/8/96 $ 9,997 $ 9,971
8/9/96 $ 9,945 $ 9,919
8/12/96 $ 10,038 $ 10,016
8/13/96 $ 10,027 $ 10,004
8/14/96 $ 10,024 $ 10,002
8/15/96 $ 10,003 $ 9,982
8/16/96 $ 10,010 $ 9,993
8/19/96 $ 10,065 $ 10,051
8/20/96 $ 10,165 $ 10,150
8/21/96 $ 10,254 $ 10,241
8/22/96 $ 10,305 $ 10,294
8/23/96 $ 10,257 $ 10,246
8/26/96 $ 10,254 $ 10,249
8/27/96 $ 10,196 $ 10,190
8/28/96 $ 10,233 $ 10,217
8/29/96 $ 10,196 $ 10,176
8/30/96 $ 10,038 $ 10,023
9/3/96 $ 9,887 $ 9,872
9/4/96 $ 9,983 $ 9,970
9/5/96 $ 9,952 $ 9,940
9/6/96 $ 9,921 $ 9,907
9/9/96 $ 10,069 $ 10,058
9/10/96 $ 10,079 $ 10,068
9/11/96 $ 10,093 $ 10,082
9/12/96 $ 10,106 $ 10,088
9/13/96 $ 10,209 $ 10,181
9/16/96 $ 10,360 $ 10,338
9/17/96 $ 10,419 $ 10,398
9/18/96 $ 10,408 $ 10,389
9/19/96 $ 10,377 $ 10,356
9/20/96 $ 10,367 $ 10,350
9/23/96 $ 10,388 $ 10,373
9/24/96 $ 10,316 $ 10,302
10/31/96 $ 11,002 $ 10,978
Past performance is not predictive of future performance Correlation: .9975
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN
THE ITALY INDEX SERIES AND
FT/S&P ITALY INDEX (3/27/96-10/31/96)
[PERFORMANCE GRAPH]
Date Italy Index Series FT/S&P Index
- -------- ------------------ ------------
3/27/96 $ 10,000 $ 10,000
3/28/96 $ 10,065 $ 10,065
3/29/96 $ 10,191 $ 10,202
4/1/96 $ 10,167 $ 10,176
4/2/96 $ 10,289 $ 10,297
4/3/96 $ 10,260 $ 10,272
4/4/96 $ 10,451 $ 10,469
4/8/96 $ 10,443 $ 10,365
4/9/96 $ 10,427 $ 10,448
4/10/96 $ 10,670 $ 10,695
4/11/96 $ 10,605 $ 10,630
4/12/96 $ 10,691 $ 10,717
4/15/96 $ 10,719 $ 10,751
4/16/96 $ 10,691 $ 10,722
4/17/96 $ 10,597 $ 10,631
4/18/96 $ 10,764 $ 10,800
4/19/96 $ 10,951 $ 10,989
4/22/96 $ 11,690 $ 11,737
4/23/96 $ 11,698 $ 11,744
4/24/96 $ 11,731 $ 11,779
4/25/96 $ 11,690 $ 11,740
4/26/96 $ 11,820 $ 11,874
4/29/96 $ 11,609 $ 11,665
4/30/96 $ 11,727 $ 11,783
5/1/96 $ 11,719 $ 11,773
5/2/96 $ 11,768 $ 11,823
5/3/96 $ 11,723 $ 11,785
5/6/96 $ 11,678 $ 11,749
5/7/96 $ 11,715 $ 11,794
5/8/96 $ 11,536 $ 11,614
5/9/96 $ 11,585 $ 11,660
5/10/96 $ 11,613 $ 11,686
5/13/96 $ 11,670 $ 11,746
5/14/96 $ 11,711 $ 11,789
5/15/96 $ 11,658 $ 11,741
5/16/96 $ 11,585 $ 11,674
5/17/96 $ 11,894 $ 11,984
5/20/96 $ 12,056 $ 11,925
5/21/96 $ 11,934 $ 11,837
5/22/96 $ 11,776 $ 11,776
5/23/96 $ 11,735 $ 11,740
5/24/96 $ 11,646 $ 11,651
5/28/96 $ 11,678 $ 11,683
5/29/96 $ 11,764 $ 11,773
5/30/96 $ 11,703 $ 11,715
5/31/96 $ 11,755 $ 11,772
6/3/96 $ 11,633 $ 11,662
6/4/96 $ 11,678 $ 11,700
6/5/96 $ 11,629 $ 11,650
6/6/96 $ 11,690 $ 11,706
6/7/96 $ 11,524 $ 11,540
6/10/96 $ 11,548 $ 11,565
6/11/96 $ 11,475 $ 11,490
6/12/96 $ 11,495 $ 11,518
6/13/96 $ 11,451 $ 11,477
6/14/96 $ 11,447 $ 11,477
6/17/96 $ 11,589 $ 11,630
6/18/96 $ 11,820 $ 11,863
6/19/96 $ 11,808 $ 11,845
6/20/96 $ 11,804 $ 11,856
6/21/96 $ 11,743 $ 11,788
6/24/96 $ 11,658 $ 11,651
6/25/96 $ 11,776 $ 11,773
6/26/96 $ 11,686 $ 11,677
6/27/96 $ 11,609 $ 11,590
6/28/96 $ 11,670 $ 11,642
7/1/96 $ 11,564 $ 11,533
7/2/96 $ 11,508 $ 11,481
7/3/96 $ 11,609 $ 11,579
7/5/96 $ 11,776 $ 11,730
7/8/96 $ 11,629 $ 11,585
7/9/96 $ 11,625 $ 11,582
7/10/96 $ 11,597 $ 11,563
7/11/96 $ 11,560 $ 11,529
7/12/96 $ 11,390 $ 11,354
7/15/96 $ 10,987 $ 10,943
7/16/96 $ 10,809 $ 10,776
7/17/96 $ 10,987 $ 10,956
7/18/96 $ 11,174 $ 11,152
7/19/96 $ 11,191 $ 11,166
7/22/96 $ 11,215 $ 11,124
7/23/96 $ 11,227 $ 11,151
7/24/96 $ 10,996 $ 10,910
7/25/96 $ 10,878 $ 10,781
7/26/96 $ 10,813 $ 10,721
7/29/96 $ 10,691 $ 10,605
7/30/96 $ 10,691 $ 10,614
7/31/96 $ 10,898 $ 10,827
8/1/96 $ 11,077 $ 11,008
8/2/96 $ 11,191 $ 11,130
8/5/96 $ 11,150 $ 11,092
8/6/96 $ 11,109 $ 11,053
8/7/96 $ 10,987 $ 10,926
8/8/96 $ 11,048 $ 10,986
8/9/96 $ 10,886 $ 10,822
8/12/96 $ 10,910 $ 10,845
8/13/96 $ 10,902 $ 10,838
8/14/96 $ 10,918 $ 10,854
8/15/96 $ 10,943 $ 10,879
8/16/96 $ 10,971 $ 10,905
8/19/96 $ 10,841 $ 10,785
8/20/96 $ 10,906 $ 10,850
8/21/96 $ 10,918 $ 10,865
8/22/96 $ 10,987 $ 10,938
8/23/96 $ 11,069 $ 11,027
8/26/96 $ 10,943 $ 10,908
8/27/96 $ 11,016 $ 10,982
8/28/96 $ 10,943 $ 10,912
8/29/96 $ 10,898 $ 10,866
8/30/96 $ 10,821 $ 10,791
9/3/96 $ 10,540 $ 10,502
9/4/96 $ 10,536 $ 10,503
9/5/96 $ 10,488 $ 10,463
9/6/96 $ 10,642 $ 10,627
9/9/96 $ 10,707 $ 10,693
9/10/96 $ 10,683 $ 10,670
9/11/96 $ 10,557 $ 10,541
9/12/96 $ 10,557 $ 10,543
9/13/96 $ 10,764 $ 10,749
9/16/96 $ 10,768 $ 10,753
9/17/96 $ 10,642 $ 10,640
9/18/96 $ 10,585 $ 10,578
9/19/96 $ 10,670 $ 10,661
9/20/96 $ 10,707 $ 10,697
9/23/96 $ 10,719 $ 10,714
9/24/96 $ 10,630 $ 10,622
10/31/96 $ 10,825 $ 10,852
Past performance is not predictive of future performance Correlation: .9845
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN
THE JAPAN INDEX SERIES AND
FT/S&P JAPAN INDEX (3/21/96-10/31/96)
[PERFORMANCE GRAPH]
Date Japan Index Series FT/S&P Index
- -------- ------------------ ------------
3/21/96 $ 10,000 $ 10,000
3/22/96 $ 9,963 $ 9,963
3/25/96 $ 10,118 $ 10,113
3/26/96 $ 10,169 $ 10,126
3/27/96 $ 10,229 $ 10,182
3/28/96 $ 10,261 $ 10,213
3/29/96 $ 10,324 $ 10,275
4/1/96 $ 10,326 $ 10,274
4/2/96 $ 10,321 $ 10,281
4/3/96 $ 10,332 $ 10,289
4/4/96 $ 10,292 $ 10,252
4/8/96 $ 10,266 $ 10,228
4/9/96 $ 10,313 $ 10,275
4/10/96 $ 10,313 $ 10,275
4/11/96 $ 10,319 $ 10,285
4/12/96 $ 10,295 $ 10,264
4/15/96 $ 10,384 $ 10,354
4/16/96 $ 10,382 $ 10,357
4/17/96 $ 10,358 $ 10,339
4/18/96 $ 10,403 $ 10,371
4/19/96 $ 10,495 $ 10,464
4/22/96 $ 10,637 $ 10,609
4/23/96 $ 10,703 $ 10,670
4/24/96 $ 10,727 $ 10,699
4/25/96 $ 10,761 $ 10,732
4/26/96 $ 10,864 $ 10,834
4/29/96 $ 10,979 $ 10,951
4/30/96 $ 10,922 $ 10,896
5/1/96 $ 10,779 $ 10,755
5/2/96 $ 10,742 $ 10,716
5/3/96 $ 10,737 $ 10,711
5/6/96 $ 10,727 $ 10,703
5/7/96 $ 10,606 $ 10,582
5/8/96 $ 10,656 $ 10,631
5/9/96 $ 10,592 $ 10,569
5/10/96 $ 10,482 $ 10,457
5/13/96 $ 10,421 $ 10,400
5/14/96 $ 10,390 $ 10,371
5/15/96 $ 10,550 $ 10,532
5/16/96 $ 10,613 $ 10,593
5/17/96 $ 10,527 $ 10,505
5/20/96 $ 10,506 $ 10,488
5/21/96 $ 10,519 $ 10,500
5/22/96 $ 10,490 $ 10,471
5/23/96 $ 10,371 $ 10,353
5/24/96 $ 10,308 $ 10,289
5/28/96 $ 10,287 $ 10,263
5/29/96 $ 10,308 $ 10,293
5/30/96 $ 10,371 $ 10,356
5/31/96 $ 10,379 $ 10,358
6/3/96 $ 10,240 $ 10,230
6/4/96 $ 10,271 $ 10,261
6/5/96 $ 10,282 $ 10,272
6/6/96 $ 10,213 $ 10,203
6/7/96 $ 10,182 $ 10,174
6/10/96 $ 10,169 $ 10,162
6/11/96 $ 10,187 $ 10,182
6/12/96 $ 10,292 $ 10,287
6/13/96 $ 10,326 $ 10,320
6/14/96 $ 10,442 $ 10,451
6/17/96 $ 10,387 $ 10,382
6/18/96 $ 10,508 $ 10,504
6/19/96 $ 10,498 $ 10,491
6/20/96 $ 10,500 $ 10,496
6/21/96 $ 10,490 $ 10,485
6/24/96 $ 10,537 $ 10,536
6/25/96 $ 10,516 $ 10,515
6/26/96 $ 10,516 $ 10,511
6/27/96 $ 10,474 $ 10,466
6/28/96 $ 10,442 $ 10,430
7/1/96 $ 10,432 $ 10,422
7/2/96 $ 10,319 $ 10,308
7/3/96 $ 10,271 $ 10,264
7/5/96 $ 10,195 $ 10,189
7/8/96 $ 10,071 $ 10,066
7/9/96 $ 10,108 $ 10,104
7/10/96 $ 10,055 $ 10,049
7/11/96 $ 10,061 $ 10,053
7/12/96 $ 9,932 $ 9,927
7/15/96 $ 9,950 $ 9,943
7/16/96 $ 9,926 $ 9,921
7/17/96 $ 9,971 $ 9,967
7/18/96 $ 10,045 $ 10,038
7/19/96 $ 10,039 $ 10,034
7/22/96 $ 9,918 $ 9,914
7/23/96 $ 9,945 $ 9,942
7/24/96 $ 9,763 $ 9,759
7/25/96 $ 9,805 $ 9,805
7/26/96 $ 9,884 $ 9,886
7/29/96 $ 9,858 $ 9,863
7/30/96 $ 9,863 $ 9,869
7/31/96 $ 9,934 $ 9,942
8/1/96 $ 10,011 $ 10,018
8/2/96 $ 9,992 $ 9,999
8/5/96 $ 10,050 $ 10,059
8/6/96 $ 9,916 $ 9,923
8/7/96 $ 9,737 $ 9,746
8/8/96 $ 9,768 $ 9,778
8/9/96 $ 9,710 $ 9,723
8/12/96 $ 9,789 $ 9,802
8/13/96 $ 9,839 $ 9,854
8/14/96 $ 9,876 $ 9,891
8/15/96 $ 9,853 $ 9,866
8/16/96 $ 9,824 $ 9,836
8/19/96 $ 9,858 $ 9,869
8/20/96 $ 9,839 $ 9,853
8/21/96 $ 9,916 $ 9,928
8/22/96 $ 9,955 $ 9,970
8/23/96 $ 9,916 $ 9,928
8/26/96 $ 9,837 $ 9,852
8/27/96 $ 9,821 $ 9,841
8/28/96 $ 9,692 $ 9,716
8/29/96 $ 9,613 $ 9,636
8/30/96 $ 9,502 $ 9,524
9/3/96 $ 9,458 $ 9,483
9/4/96 $ 9,479 $ 9,503
9/5/96 $ 9,539 $ 9,565
9/6/96 $ 9,450 $ 9,478
9/9/96 $ 9,452 $ 9,480
9/10/96 $ 9,494 $ 9,523
9/11/96 $ 9,460 $ 9,488
9/12/96 $ 9,455 $ 9,485
9/13/96 $ 9,547 $ 9,580
9/16/96 $ 9,552 $ 9,586
9/17/96 $ 9,750 $ 9,785
9/18/96 $ 9,808 $ 9,842
9/19/96 $ 9,821 $ 9,857
9/20/96 $ 9,713 $ 9,748
9/23/96 $ 9,708 $ 9,744
9/24/96 $ 9,702 $ 9,741
10/31/96 $ 9,165 $ 9,187
Past performance is not predictive of future performance Correlation: .9977
3
<PAGE>
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN
THE SOUTH AFRICA INDEX SERIES AND
FT/S&P SOUTH AFRICA INDEX (3/29/96-10/31/96)
[PERFORMANCE GRAPH]
Date South Africa Index Series FT/S&P Index
- -------- ------------------------- ------------
3/29/96 $ 10,000 $ 10,000
4/1/96 $ 9,886 $ 9,854
4/2/96 $ 9,841 $ 9,812
4/3/96 $ 9,573 $ 9,527
4/4/96 $ 9,593 $ 9,555
4/8/96 $ 9,642 $ 9,610
4/9/96 $ 9,493 $ 9,461
4/10/96 $ 9,364 $ 9,338
4/11/96 $ 9,449 $ 9,427
4/12/96 $ 9,508 $ 9,487
4/15/96 $ 9,409 $ 9,390
4/16/96 $ 9,608 $ 9,584
4/17/96 $ 9,652 $ 9,629
4/18/96 $ 9,637 $ 9,615
4/19/96 $ 9,712 $ 9,695
4/22/96 $ 9,921 $ 9,894
4/23/96 $ 9,851 $ 9,835
4/24/96 $ 9,712 $ 9,700
4/25/96 $ 9,459 $ 9,452
4/26/96 $ 9,483 $ 9,479
4/29/96 $ 9,478 $ 9,491
4/30/96 $ 9,627 $ 9,617
5/1/96 $ 9,613 $ 9,601
5/2/96 $ 9,533 $ 9,533
5/3/96 $ 9,384 $ 9,392
5/6/96 $ 9,270 $ 9,304
5/7/96 $ 9,339 $ 9,346
5/8/96 $ 9,061 $ 9,065
5/9/96 $ 8,862 $ 8,873
5/10/96 $ 9,255 $ 9,264
5/13/96 $ 9,300 $ 9,314
5/14/96 $ 9,478 $ 9,494
5/15/96 $ 9,439 $ 9,459
5/16/96 $ 9,285 $ 9,320
5/17/96 $ 9,295 $ 9,320
5/20/96 $ 9,195 $ 9,220
5/21/96 $ 9,160 $ 9,185
5/22/96 $ 9,121 $ 9,142
5/23/96 $ 9,076 $ 9,104
5/24/96 $ 9,131 $ 9,161
5/28/96 $ 9,165 $ 9,204
5/29/96 $ 9,220 $ 9,247
5/30/96 $ 9,220 $ 9,248
5/31/96 $ 9,389 $ 9,420
6/3/96 $ 9,404 $ 9,437
6/4/96 $ 9,359 $ 9,384
6/5/96 $ 9,324 $ 9,350
6/6/96 $ 9,404 $ 9,418
6/7/96 $ 9,334 $ 9,361
6/10/96 $ 9,374 $ 9,393
6/11/96 $ 9,285 $ 9,309
6/12/96 $ 9,379 $ 9,401
6/13/96 $ 9,444 $ 9,469
6/14/96 $ 9,319 $ 9,344
6/17/96 $ 9,329 $ 9,356
6/18/96 $ 9,344 $ 9,369
6/19/96 $ 9,399 $ 9,420
6/20/96 $ 9,344 $ 9,371
6/21/96 $ 9,354 $ 9,383
6/24/96 $ 9,389 $ 9,401
6/25/96 $ 9,439 $ 9,454
6/26/96 $ 9,523 $ 9,532
6/27/96 $ 9,493 $ 9,499
6/28/96 $ 9,439 $ 9,428
7/1/96 $ 9,399 $ 9,387
7/2/96 $ 9,459 $ 9,444
7/3/96 $ 9,483 $ 9,478
7/5/96 $ 9,468 $ 9,456
7/8/96 $ 9,424 $ 9,413
7/9/96 $ 9,498 $ 9,494
7/10/96 $ 9,518 $ 9,512
7/11/96 $ 9,394 $ 9,392
7/12/96 $ 9,106 $ 9,100
7/15/96 $ 9,071 $ 9,068
7/16/96 $ 8,838 $ 8,834
7/17/96 $ 8,992 $ 8,990
7/18/96 $ 9,021 $ 9,020
7/19/96 $ 9,151 $ 9,150
7/22/96 $ 9,081 $ 9,093
7/23/96 $ 8,997 $ 9,001
7/24/96 $ 8,828 $ 8,829
7/25/96 $ 8,862 $ 8,866
7/26/96 $ 8,773 $ 8,775
7/29/96 $ 8,798 $ 8,805
7/30/96 $ 8,723 $ 8,731
7/31/96 $ 8,584 $ 8,591
8/1/96 $ 8,589 $ 8,596
8/2/96 $ 8,778 $ 8,789
8/5/96 $ 8,952 $ 8,957
8/6/96 $ 8,907 $ 8,917
8/7/96 $ 8,803 $ 8,812
8/8/96 $ 8,654 $ 8,666
8/9/96 $ 8,644 $ 8,657
8/12/96 $ 8,644 $ 8,653
8/13/96 $ 8,684 $ 8,692
8/14/96 $ 8,530 $ 8,540
8/15/96 $ 8,435 $ 8,449
8/16/96 $ 8,400 $ 8,413
8/19/96 $ 8,356 $ 8,369
8/20/96 $ 8,217 $ 8,231
8/21/96 $ 8,187 $ 8,201
8/22/96 $ 8,301 $ 8,316
8/23/96 $ 8,495 $ 8,507
8/26/96 $ 8,510 $ 8,520
8/27/96 $ 8,629 $ 8,645
8/28/96 $ 8,773 $ 8,792
8/29/96 $ 8,803 $ 8,819
8/30/96 $ 8,838 $ 8,854
9/3/96 $ 8,872 $ 8,890
9/4/96 $ 8,992 $ 9,009
9/5/96 $ 8,997 $ 9,018
9/6/96 $ 8,982 $ 8,994
9/9/96 $ 9,076 $ 9,083
9/10/96 $ 9,016 $ 9,025
9/11/96 $ 9,026 $ 9,036
9/12/96 $ 9,031 $ 9,040
9/13/96 $ 9,106 $ 9,119
9/16/96 $ 9,235 $ 9,228
9/17/96 $ 9,265 $ 9,261
9/18/96 $ 9,175 $ 9,174
9/19/96 $ 9,205 $ 9,215
9/20/96 $ 9,175 $ 9,171
9/23/96 $ 9,111 $ 9,113
9/24/96 $ 9,111 $ 9,111
10/31/96 $ 8,783 $ 8,801
Past performance is not predictive of future performance Correlation: .9978
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN
THE UK INDEX SERIES AND
FT/S&P UK INDEX (3/25/96-10/31/96)
[PERFORMANCE GRAPH]
Date U.K. Index Series FT/S&P Index
- -------- ----------------- ------------
3/25/96 $ 10,000 $ 10,000
3/26/96 $ 9,935 $ 9,932
3/27/96 $ 9,943 $ 9,938
3/28/96 $ 9,958 $ 9,970
3/29/96 $ 10,078 $ 10,061
4/1/96 $ 10,120 $ 10,103
4/2/96 $ 10,135 $ 10,131
4/3/96 $ 10,151 $ 10,137
4/4/96 $ 10,250 $ 10,232
4/8/96 $ 10,268 $ 10,259
4/9/96 $ 10,242 $ 10,225
4/10/96 $ 10,206 $ 10,193
4/11/96 $ 10,138 $ 10,121
4/12/96 $ 10,172 $ 10,165
4/15/96 $ 10,203 $ 10,192
4/16/96 $ 10,318 $ 10,300
4/17/96 $ 10,258 $ 10,256
4/18/96 $ 10,297 $ 10,295
4/19/96 $ 10,458 $ 10,459
4/22/96 $ 10,403 $ 10,410
4/23/96 $ 10,380 $ 10,384
4/24/96 $ 10,328 $ 10,334
4/25/96 $ 10,328 $ 10,336
4/26/96 $ 10,359 $ 10,364
4/29/96 $ 10,292 $ 10,298
4/30/96 $ 10,252 $ 10,263
5/1/96 $ 10,190 $ 10,206
5/2/96 $ 10,138 $ 10,152
5/3/96 $ 10,096 $ 10,111
5/6/96 $ 10,122 $ 10,142
5/7/96 $ 10,099 $ 10,111
5/8/96 $ 10,083 $ 10,103
5/9/96 $ 10,180 $ 10,202
5/10/96 $ 10,239 $ 10,261
5/13/96 $ 10,148 $ 10,170
5/14/96 $ 10,198 $ 10,223
5/15/96 $ 10,208 $ 10,245
5/16/96 $ 10,154 $ 10,179
5/17/96 $ 10,268 $ 10,299
5/20/96 $ 10,226 $ 10,252
5/21/96 $ 10,263 $ 10,288
5/22/96 $ 10,172 $ 10,199
5/23/96 $ 10,141 $ 10,175
5/24/96 $ 10,159 $ 10,186
5/28/96 $ 10,172 $ 10,208
5/29/96 $ 10,255 $ 10,295
5/30/96 $ 10,284 $ 10,328
5/31/96 $ 10,401 $ 10,436
6/3/96 $ 10,380 $ 10,419
6/4/96 $ 10,416 $ 10,457
6/5/96 $ 10,393 $ 10,436
6/6/96 $ 10,367 $ 10,405
6/7/96 $ 10,226 $ 10,268
6/10/96 $ 10,216 $ 10,258
6/11/96 $ 10,310 $ 10,352
6/12/96 $ 10,336 $ 10,380
6/13/96 $ 10,289 $ 10,332
6/14/96 $ 10,312 $ 10,365
6/17/96 $ 10,393 $ 10,443
6/18/96 $ 10,375 $ 10,418
6/19/96 $ 10,359 $ 10,412
6/20/96 $ 10,286 $ 10,334
6/21/96 $ 10,260 $ 10,310
6/24/96 $ 10,237 $ 10,284
6/25/96 $ 10,151 $ 10,198
6/26/96 $ 10,200 $ 10,249
6/27/96 $ 10,193 $ 10,229
6/28/96 $ 10,349 $ 10,363
7/1/96 $ 10,396 $ 10,425
7/2/96 $ 10,411 $ 10,431
7/3/96 $ 10,390 $ 10,423
7/5/96 $ 10,440 $ 10,475
7/8/96 $ 10,422 $ 10,461
7/9/96 $ 10,437 $ 10,473
7/10/96 $ 10,487 $ 10,524
7/11/96 $ 10,455 $ 10,499
7/12/96 $ 10,383 $ 10,420
7/15/96 $ 10,312 $ 10,353
7/16/96 $ 10,177 $ 10,216
7/17/96 $ 10,177 $ 10,220
7/18/96 $ 10,247 $ 10,294
7/19/96 $ 10,312 $ 10,357
7/22/96 $ 10,247 $ 10,298
7/23/96 $ 10,331 $ 10,377
7/24/96 $ 10,242 $ 10,287
7/25/96 $ 10,307 $ 10,355
7/26/96 $ 10,271 $ 10,317
7/29/96 $ 10,305 $ 10,357
7/30/96 $ 10,268 $ 10,321
7/31/96 $ 10,362 $ 10,416
8/1/96 $ 10,437 $ 10,499
8/2/96 $ 10,435 $ 10,494
8/5/96 $ 10,510 $ 10,559
8/6/96 $ 10,476 $ 10,520
8/7/96 $ 10,567 $ 10,613
8/8/96 $ 10,622 $ 10,671
8/9/96 $ 10,622 $ 10,671
8/12/96 $ 10,645 $ 10,677
8/13/96 $ 10,695 $ 10,728
8/14/96 $ 10,708 $ 10,742
8/15/96 $ 10,726 $ 10,764
8/16/96 $ 10,799 $ 10,840
8/19/96 $ 10,773 $ 10,801
8/20/96 $ 10,836 $ 10,867
8/21/96 $ 10,830 $ 10,862
8/22/96 $ 10,867 $ 10,902
8/23/96 $ 10,950 $ 10,989
8/26/96 $ 10,968 $ 11,011
8/27/96 $ 10,953 $ 10,995
8/28/96 $ 11,020 $ 11,066
8/29/96 $ 10,921 $ 10,966
8/30/96 $ 10,919 $ 10,964
9/3/96 $ 10,895 $ 10,945
9/4/96 $ 10,934 $ 10,985
9/5/96 $ 10,979 $ 11,033
9/6/96 $ 10,958 $ 11,014
9/9/96 $ 10,994 $ 11,049
9/10/96 $ 10,989 $ 11,047
9/11/96 $ 10,945 $ 11,002
9/12/96 $ 11,018 $ 11,078
9/13/96 $ 11,098 $ 11,168
9/16/96 $ 11,143 $ 11,214
9/17/96 $ 11,119 $ 11,187
9/18/96 $ 11,109 $ 11,178
9/19/96 $ 11,088 $ 11,154
9/20/96 $ 11,098 $ 11,165
9/23/96 $ 10,999 $ 11,058
9/24/96 $ 10,981 $ 11,041
10/31/96 $ 11,645 $ 11,750
Past performance is not predictive of future performance Correlation: .9948
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN
THE US INDEX SERIES AND
FT/S&P US INDEX (3/19/96-10/31/96)
[PERFORMANCE GRAPH]
Date U.S. Index Series FT/S&P Index
- -------- ----------------- ------------
3/19/96 $ 10,000 $ 10,000
3/20/96 $ 9,974 $ 9,973
3/21/96 $ 9,962 $ 9,963
3/22/96 $ 9,981 $ 9,983
3/25/96 $ 9,964 $ 9,969
3/26/96 $ 10,002 $ 10,008
3/27/96 $ 9,949 $ 9,955
3/28/96 $ 9,951 $ 9,957
3/29/96 $ 9,904 $ 9,911
4/1/96 $ 10,028 $ 10,036
4/2/96 $ 10,047 $ 10,054
4/3/96 $ 10,056 $ 10,065
4/4/96 $ 10,056 $ 10,067
4/8/96 $ 9,876 $ 9,885
4/9/96 $ 9,846 $ 9,856
4/10/96 $ 9,708 $ 9,719
4/11/96 $ 9,661 $ 9,672
4/12/96 $ 9,753 $ 9,765
4/15/96 $ 9,836 $ 9,852
4/16/96 $ 9,880 $ 9,897
4/17/96 $ 9,825 $ 9,843
4/18/96 $ 9,865 $ 9,884
4/19/96 $ 9,887 $ 9,908
4/22/96 $ 9,932 $ 9,956
4/23/96 $ 9,987 $ 10,012
4/24/96 $ 9,970 $ 9,995
4/25/96 $ 10,011 $ 10,037
4/26/96 $ 10,021 $ 10,048
4/29/96 $ 10,030 $ 10,060
4/30/96 $ 10,030 $ 10,060
5/1/96 $ 10,041 $ 10,073
5/2/96 $ 9,872 $ 9,902
5/3/96 $ 9,848 $ 9,878
5/6/96 $ 9,831 $ 9,862
5/7/96 $ 9,789 $ 9,822
5/8/96 $ 9,878 $ 9,911
5/9/96 $ 9,891 $ 9,920
5/10/96 $ 9,998 $ 10,028
5/13/96 $ 10,139 $ 10,173
5/14/96 $ 10,201 $ 10,235
5/15/96 $ 10,198 $ 10,231
5/16/96 $ 10,192 $ 10,225
5/17/96 $ 10,254 $ 10,289
5/20/96 $ 10,316 $ 10,353
5/21/96 $ 10,307 $ 10,345
5/22/96 $ 10,384 $ 10,423
5/23/96 $ 10,352 $ 10,390
5/24/96 $ 10,384 $ 10,424
5/28/96 $ 10,288 $ 10,332
5/29/96 $ 10,226 $ 10,268
5/30/96 $ 10,282 $ 10,324
5/31/96 $ 10,247 $ 10,289
6/3/96 $ 10,222 $ 10,267
6/4/96 $ 10,301 $ 10,349
6/5/96 $ 10,393 $ 10,440
6/6/96 $ 10,316 $ 10,361
6/7/96 $ 10,314 $ 10,361
6/10/96 $ 10,295 $ 10,345
6/11/96 $ 10,277 $ 10,327
6/12/96 $ 10,258 $ 10,306
6/13/96 $ 10,243 $ 10,290
6/14/96 $ 10,209 $ 10,256
6/17/96 $ 10,194 $ 10,244
6/18/96 $ 10,143 $ 10,195
6/19/96 $ 10,141 $ 10,192
6/20/96 $ 10,135 $ 10,188
6/21/96 $ 10,203 $ 10,257
6/24/96 $ 10,230 $ 10,286
6/25/96 $ 10,222 $ 10,279
6/26/96 $ 10,164 $ 10,211
6/27/96 $ 10,230 $ 10,273
6/28/96 $ 10,288 $ 10,313
7/1/96 $ 10,376 $ 10,403
7/2/96 $ 10,346 $ 10,372
7/3/96 $ 10,320 $ 10,346
7/5/96 $ 10,094 $ 10,119
7/8/96 $ 10,017 $ 10,042
7/9/96 $ 10,053 $ 10,076
7/10/96 $ 10,064 $ 10,088
7/11/96 $ 9,904 $ 9,926
7/12/96 $ 9,913 $ 9,936
7/15/96 $ 9,667 $ 9,689
7/16/96 $ 9,641 $ 9,663
7/17/96 $ 9,740 $ 9,765
7/18/96 $ 9,887 $ 9,914
7/19/96 $ 9,814 $ 9,838
7/22/96 $ 9,738 $ 9,765
7/23/96 $ 9,631 $ 9,657
7/24/96 $ 9,624 $ 9,650
7/25/96 $ 9,697 $ 9,725
7/26/96 $ 9,776 $ 9,806
7/29/96 $ 9,701 $ 9,730
7/30/96 $ 9,765 $ 9,796
7/31/96 $ 9,836 $ 9,866
8/1/96 $ 9,998 $ 10,029
8/2/96 $ 10,188 $ 10,223
8/5/96 $ 10,147 $ 10,184
8/6/96 $ 10,181 $ 10,217
8/7/96 $ 10,213 $ 10,250
8/8/96 $ 10,190 $ 10,228
8/9/96 $ 10,183 $ 10,218
8/12/96 $ 10,233 $ 10,272
8/13/96 $ 10,152 $ 10,188
8/14/96 $ 10,188 $ 10,225
8/15/96 $ 10,201 $ 10,237
8/16/96 $ 10,239 $ 10,276
8/19/96 $ 10,256 $ 10,295
8/20/96 $ 10,241 $ 10,280
8/21/96 $ 10,231 $ 10,272
8/22/96 $ 10,320 $ 10,361
8/23/96 $ 10,269 $ 10,310
8/26/96 $ 10,220 $ 10,265
8/27/96 $ 10,260 $ 10,305
8/28/96 $ 10,243 $ 10,287
8/29/96 $ 10,134 $ 10,176
8/30/96 $ 10,055 $ 10,096
9/3/96 $ 10,087 $ 10,132
9/4/96 $ 10,105 $ 10,146
9/5/96 $ 10,011 $ 10,053
9/6/96 $ 10,109 $ 10,152
9/9/96 $ 10,230 $ 10,274
9/10/96 $ 10,231 $ 10,276
9/11/96 $ 10,282 $ 10,327
9/12/96 $ 10,348 $ 10,391
9/13/96 $ 10,489 $ 10,533
9/16/96 $ 10,538 $ 10,586
9/17/96 $ 10,529 $ 10,577
9/18/96 $ 10,506 $ 10,556
9/19/96 $ 10,531 $ 10,580
9/20/96 $ 10,589 $ 10,640
9/23/96 $ 10,575 $ 10,630
9/24/96 $ 10,564 $ 10,619
10/31/96 $ 10,850 $ 10,920
Past performance is not predictive of future performance Correlation: .9958
'The CountryBaskets Index Fund, Inc.', 'CountryBaskets' and 'CB Shares' are
service marks of Deutsche Morgan Grenfell Inc. ('DMG'). DMG has filed
applications for registration of such service marks with the U.S. Patent and
Trademark Office. The Fund is an authorized licensee of such marks.
'FT/S&P Actuaries World Indices' is a trademark of The Financial Times Limited
('FT') and Standard & Poor's ('S&P') and has been licensed for use by DMG. The
Fund is an authorized sublicensee thereof. The Fund and the CB Shares(SM) are
not sponsored, endorsed, sold or promoted by FT or S&P and neither FT nor S&P
makes any representation regarding the advisability of investing therein.
4
<PAGE>
THE COUNTRYBASKETS(SM) INDEX FUND, INC.
AUSTRALIA INDEX SERIES
SCHEDULE OF INVESTMENTS
OCTOBER 31, 1996
- --------------------------------------------------------------------------------
% OF
SECURITY DESCRIPTION SHARES VALUE NET ASSETS
- --------------------------------------------------------------------------------
Broken Hill Proprietary Co................... 107,258 $ 1,424,729 13.20%
National Australia Bank...................... 80,279 881,738 8.17%
Westpac Bank Corp............................ 99,555 568,438 5.26%
CRA Ltd...................................... 34,891 547,302 5.07%
Australia & NZ Bank Group.................... 80,052 467,872 4.33%
Coca Cola Amatil............................. 29,890 411,257 3.81%
WMC Ltd...................................... 61,313 385,579 3.57%
Woodside Petroleum Ltd....................... 36,016 254,199 2.35%
News Corp.................................... 42,648 242,835 2.25%
Commonwealth Bank............................ 24,585 231,034 2.14%
Lend Lease Corp.............................. 13,201 223,926 2.07%
Coles Myer Ltd............................... 59,961 219,209 2.03%
Amcor Ltd.................................... 34,701 215,747 2.00%
Brambles Industries Ltd...................... 12,299 203,847 1.89%
Fosters Brewing Group........................ 105,315 192,090 1.78%
CSR Ltd...................................... 54,583 183,532 1.70%
Comalco Ltd.................................. 30,539 158,872 1.47%
ICI Australia................................ 16,080 158,123 1.46%
Boral Ltd.................................... 60,160 149,805 1.39%
Woolworths Ltd............................... 61,032 140,844 1.30%
Pioneer International Ltd.................... 49,602 132,168 1.22%
Pacific Dunlop Ltd........................... 56,722 125,950 1.17%
Normandy Mining Ltd.......................... 88,441 120,634 1.12%
Santos Ltd................................... 30,132 120,433 1.12%
Commonwealth Bank of Australia Installment
Receipts................................... 19,869 119,908 1.11%
General Property Trust....................... 63,368 119,098 1.10%
Westfield Trust.............................. 63,360 119,083 1.10%
North Ltd.................................... 39,653 112,891 1.05%
MIM Holdings Ltd............................. 86,630 112,668 1.04%
Mayne Nickless Ltd........................... 16,791 111,586 1.03%
Advance Bank Australia....................... 19,277 103,647 0.96%
Southcorp Holdings Ltd....................... 30,944 94,231 0.87%
GIO Australia Holding........................ 33,462 86,243 0.80%
Westfield Holdings........................... 5,317 85,174 0.79%
Australia Gas & Light........................ 15,505 85,087 0.79%
Smith (Howard)............................... 10,593 83,165 0.77%
Wesfarmers................................... 12,215 81,369 0.75%
QBE Insurance Group.......................... 15,198 80,510 0.75%
St. George Bank Ltd.......................... 11,076 79,491 0.74%
Goodman Fielder Ltd.......................... 66,161 77,652 0.72%
Pasminco Ltd................................. 43,103 66,996 0.62%
T.N.T. Ltd.*................................. 31,500 60,702 0.56%
Hardie James Industries...................... 20,853 54,572 0.51%
Australia Foundation Investor................ 32,437 52,733 0.49%
RGC Ltd...................................... 11,226 50,744 0.47%
Arnotts Ltd.................................. 7,550 50,593 0.47%
QCT Resources................................ 35,408 48,858 0.45%
Plutonic Resources........................... 10,195 48,509 0.45%
Bank of Melbourne............................ 6,948 47,937 0.44%
Newcrest Mining.............................. 13,719 47,435 0.44%
Burns Philp & Co............................. 29,640 47,011 0.44%
F.H. Faulding & Co........................... 6,384 43,944 0.41%
Email Ltd.................................... 15,521 42,711 0.40%
Rothmans Holdings............................ 6,613 42,479 0.39%
Stockland Trust Group........................ 17,230 42,358 0.39%
Australia National Industries................ 42,637 41,251 0.38%
Sons of Gwalia Ltd........................... 6,118 39,542 0.37%
Schroders Property Fund...................... 20,677 38,206 0.35%
Fairfax (John) Holding....................... 16,344 35,125 0.33%
Davids Ltd................................... 24,536 32,494 0.30%
Caltex Australia............................. 9,766 32,218 0.30%
Gandel Retail Trust.......................... 39,181 28,275 0.26%
Franked Income Fund.......................... 12,800 24,869 0.23%
Foodland Associated.......................... 5,478 23,719 0.22%
Ashton Mining Ltd............................ 15,191 23,491 0.22%
Metal Manufactures........................... 10,310 23,138 0.21%
Simsmetal Ltd................................ 4,199 22,544 0.21%
National Foods Ltd........................... 14,386 17,683 0.16%
AAPC Ltd..................................... 28,939 17,442 0.16%
OPSM Protector Ltd........................... 7,744 16,827 0.16%
Capital Property Trust....................... 9,145 16,318 0.15%
Publishing & Broadcasting Ltd................ 3,594 16,189 0.15%
Orbital Engine Corp.*........................ 17,539 13,909 0.13%
Aberfoyle.................................... 5,129 10,738 0.10%
Seven Network Ltd............................ 3,094 9,569 0.09%
Publishing & Broadcasting Ltd................ 1,877 8,395 0.08%
Kidston Gold Mines........................... 6,782 8,229 0.08%
Bougainville Copper Ltd.*.................... 21,760 7,593 0.07%
----------- ----------
PORTFOLIO OF SECURITIES
(Cost $9,845,056).......................... 10,567,312 97.88%
OTHER INVESTMENT+
(Cost $2,908,388).......................... 2,908,388 26.94%
----------- ----------
TOTAL INVESTMENTS, AT VALUE
(Cost $12,753,444)......................... 13,475,700 124.82%
LIABILITIES IN EXCESS OF OTHER ASSETS........ (2,679,699) (24.82%)
----------- ----------
NET ASSETS................................... $10,796,001 100.00%
----------- ----------
----------- ----------
* Non-income producing securities.
+ Investment of cash collateral received for securities loaned in State Street
Bank and Trust Company of New Hampshire, NA Securities Lending Quality Trust.
The accompanying notes are an integral part of the financial statements.
5
<PAGE>
THE COUNTRYBASKETS(SM) INDEX FUND, INC.
AUSTRALIA INDEX SERIES
SCHEDULE OF INVESTMENTS BY MARKET SECTOR
OCTOBER 31, 1996
- --------------------------------------------------------------------------------
% OF
INDUSTRY VALUE PORTFOLIO
- --------------------------------------------------------------------------------
Mining, metals and minerals....................... $ 2,878,112 27.2%
Commercial banks and other banks.................. 2,500,065 23.7%
Real estate....................................... 672,438 6.4%
Construction and building materials............... 520,076 4.9%
Diversified holdings.............................. 475,094 4.5%
Oil............................................... 406,850 3.9%
Diversified industrials........................... 382,430 3.6%
Transportation and services....................... 376,135 3.6%
Retail trade...................................... 360,053 3.4%
Media............................................. 312,113 3.0%
Precious metals and minerals...................... 287,840 2.7%
Food and paper products........................... 227,297 2.2%
Forestry and paper products....................... 215,747 2.0%
Insurance--multiline and property and casualty.... 166,753 1.6%
Chemicals......................................... 158,123 1.5%
Beverage industries and tobacco manufacturing..... 136,710 1.3%
Non-oil energy equipment and services............. 132,024 1.2%
Utilities......................................... 85,087 0.8%
Financial institutions and services............... 77,602 0.7%
Wholesale trade................................... 56,214 0.5%
Health and personal care.......................... 43,944 0.4%
Household durables and appliances................. 42,711 0.4%
Machinery and engineering services................ 36,452 0.3%
Entertainment and leisure toys.................... 17,442 0.2%
----------- ----------
PORTFOLIO OF SECURITIES
(Cost $9,845,056)............................... 10,567,312 100.0%
----------
OTHER INVESTMENT+ ----------
(Cost $2,908,388)............................... 2,908,388
-----------
TOTAL INVESTMENTS, AT VALUE
(Cost $12,753,444).............................. $13,475,700
-----------
-----------
Cost of investments for Federal income tax
purposes........................................ $12,799,623
-----------
-----------
Aggregate gross unrealized appreciation........... $ 959,295
Aggregate gross unrealized depreciation........... (283,218)
-----------
Aggregate net unrealized appreciation............. $ 676,077
-----------
-----------
+ Investment of cash collateral received for securities loaned in State Street
Bank and Trust Company of New Hampshire, NA Securities Lending Quality Trust.
The accompanying notes are an integral part of the financial statements.
6
<PAGE>
THE COUNTRYBASKETS(SM) INDEX FUND, INC.
FRANCE INDEX SERIES
SCHEDULE OF INVESTMENTS
OCTOBER 31, 1996
- --------------------------------------------------------------------------------
% OF
SECURITY DESCRIPTION SHARES VALUE NET ASSETS
- --------------------------------------------------------------------------------
L' Oreal................................ 7,209 $ 2,442,890 5.48%
Elf Aquitaine SA........................ 29,088 2,327,858 5.22%
Carrefour............................... 4,095 2,274,286 5.10%
LVMH (Moet Hennessy Louis Vuitton)...... 9,287 2,128,943 4.78%
Total 'B' Shares........................ 25,626 2,006,153 4.50%
Eaux Cie Generale....................... 13,098 1,566,672 3.51%
Alcatel Alsthom......................... 17,232 1,470,801 3.30%
AXA..................................... 20,597 1,287,463 2.89%
Cie de St Gobain........................ 9,234 1,247,299 2.80%
L' Air Liquide.......................... 7,724 1,193,029 2.68%
Danone.................................. 7,808 1,069,965 2.40%
Societe Generale SA..................... 9,706 1,046,944 2.35%
Rhone Poulenc SA........................ 34,990 1,037,740 2.33%
Sanofi.................................. 11,129 1,008,934 2.26%
Pinqust--Printemps/La Redoute........... 2,384 899,798 2.02%
Cie Finance Paribas..................... 13,309 857,182 1.92%
Banque Nationale de Paris............... 21,917 820,782 1.84%
Roussel Uclaf........................... 2,930 776,063 1.74%
Cie de Suez............................. 17,548 756,100 1.70%
Union des Assurances de Paris........... 36,125 751,042 1.68%
Schneider SA............................ 14,362 702,889 1.58%
Canal Plus.............................. 2,655 658,006 1.48%
Christian Dior.......................... 4,577 609,287 1.37%
Michelin CGDE........................... 12,442 600,397 1.35%
Lafarge................................. 9,957 598,020 1.34%
Peugeot SA.............................. 5,424 565,951 1.27%
Renault Regie Nationale................. 25,633 553,486 1.24%
Lyonnaise des Eaux SA................... 6,252 553,209 1.24%
Promodes................................ 1,998 539,767 1.21%
Synthelabo.............................. 5,204 497,152 1.12%
Valeo................................... 7,573 454,836 1.02%
Havas................................... 6,891 452,996 1.02%
Accor................................... 3,571 448,804 1.01%
BIC..................................... 2,888 433,635 0.97%
Erid Beghin Say......................... 2,705 431,046 0.97%
Assurances Generales de France.......... 14,140 417,429 0.94%
CSF Thomson............................. 12,682 395,986 0.89%
Legrand................................. 2,243 389,480 0.87%
Usinor Sacilor.......................... 25,448 377,869 0.85%
Pechiney 'A'............................ 8,335 358,156 0.80%
Credit Commerce France.................. 7,718 347,357 0.78%
Credit Local de Fractional.............. 3,946 339,738 0.76%
S.E.B. SA............................... 1,636 331,479 0.74%
Pernod Ricard........................... 5,895 318,511 0.71%
Lagardere Groupe........................ 10,008 316,411 0.71%
Cap. Gemini Sogeti*..................... 6,320 308,069 0.69%
Casino Guichard Perrachon............... 6,543 297,933 0.67%
Cie Bancaire............................ 2,953 294,826 0.66%
Castorama Dubois........................ 1,637 280,407 0.63%
Comptoirs Modernes...................... 552 264,318 0.59%
Imetal.................................. 1,599 249,482 0.56%
Bouygues................................ 2,492 244,409 0.55%
Saint Louis............................. 871 221,151 0.50%
Essilor International................... 816 214,854 0.48%
Sidel................................... 2,956 197,387 0.44%
Sagem SA................................ 303 188,626 0.42%
Worms & Cie............................. 3,539 181,515 0.41%
Eurafrance.............................. 396 173,262 0.39%
Euro Disney SCA*........................ 79,859 157,116 0.35%
Compagnie Generale d'Industrie et de
Participations........................ 695 155,376 0.35%
Salomon SA.............................. 1,650 147,938 0.33%
Simco................................... 1,616 137,298 0.31%
Fromageries Belgique.................... 154 136,569 0.31%
Sefimeg................................. 1,709 132,151 0.30%
Gaz Et Eaux............................. 297 125,237 0.28%
Unibail SA.............................. 1,014 101,039 0.23%
Club Mediterranee....................... 1,443 90,932 0.20%
Compagnie Parislenne de Reecompte....... 1,088 86,474 0.19%
Bongrain SA............................. 209 84,693 0.19%
Credit National......................... 1,548 81,821 0.18%
GTM Entrepose........................... 1,577 74,864 0.17%
Eurotunnel*............................. 49,515 72,215 0.16%
Labinal................................. 442 70,520 0.16%
Union Immobliere France................. 893 69,227 0.16%
Silic................................... 486 68,502 0.15%
Havas Advertising....................... 585 68,484 0.15%
Sommer Allibert......................... 2,306 64,103 0.14%
Bertrand Faure SA....................... 1,819 62,316 0.14%
Fonciere Lyonnaise...................... 587 61,019 0.14%
Casino Guichard Perrachon (preferred)... 1,841 60,908 0.14%
7
<PAGE>
THE COUNTRYBASKETS(SM) INDEX FUND, INC.
FRANCE INDEX SERIES
SCHEDULE OF INVESTMENTS (CONTINUED)
OCTOBER 31, 1996
- --------------------------------------------------------------------------------
% OF
SECURITY DESCRIPTION SHARES VALUE NET ASSETS
- --------------------------------------------------------------------------------
Moulinex................................ 3,022 $ 57,977 0.13%
Damart SA............................... 66 53,620 0.12%
UFB Locabail............................ 607 53,235 0.12%
Vallourec SA............................ 882 49,278 0.11%
Societe de Immeubles de France ......... 739 46,873 0.11%
Nord Est SA............................. 1,520 38,326 0.09%
Legris.................................. 926 36,056 0.08%
Interbail Societe Financiere............ 561 24,381 0.05%
Cie General Geophysique*................ 330 23,580 0.05%
Finextel Society Finance................ 1,212 19,456 0.04%
Dollfus-Mieg Ascie...................... 706 18,865 0.04%
Taittinger.............................. 66 18,747 0.04%
PORTFOLIO OF SECURITIES
(Cost $42,309,182).................... $ 44,327,276 99.45%
OTHER INVESTMENT+
(Cost $12,279,368).................... 12,279,368 27.55%
------------ -----------
TOTAL INVESTMENTS, AT VALUE
(Cost $54,588,550).................... 56,606,644 127.00%
LIABILITIES IN EXCESS OF OTHER ASSETS... (12,032,730) (27.00%)
------------ -----------
NET ASSETS.............................. $ 44,573,914 100.00%
------------ -----------
------------ -----------
* Non-income producing securities.
+ Investment of cash collateral received for securities loaned in State Street
Bank and Trust Company of New Hampshire, NA Securities Lending Quality
Trust.
The accompanying notes are an integral part of the financial statements.
8
<PAGE>
THE COUNTRYBASKETS(SM) INDEX FUND, INC.
FRANCE INDEX SERIES
SCHEDULE OF INVESTMENTS BY MARKET SECTOR
OCTOBER 31, 1996
- --------------------------------------------------------------------------------
% OF
INDUSTRY VALUE PORTFOLIO
- --------------------------------------------------------------------------------
Health and personal care.......................... $ 5,549,179 12.5%
Retail trade...................................... 4,617,416 10.4%
Oil............................................... 4,334,011 9.8%
Commercial banks and other banks.................. 3,534,244 8.0%
Construction and building materials............... 2,867,482 6.5%
Beverage industries and tobacco manufacturing..... 2,466,202 5.5%
Insurance--multiline and property and casualty.... 2,455,933 5.5%
Chemicals......................................... 2,230,769 5.0%
Utilities......................................... 2,119,880 4.8%
Food and grocery products......................... 1,943,424 4.4%
Computers and communications and office
equipment....................................... 1,787,212 4.0%
Financial institutions and services............... 1,536,855 3.5%
Media............................................. 1,179,487 2.7%
Automobiles....................................... 1,119,437 2.5%
Auto components................................... 1,117,550 2.5%
Entertainment and leisure toys.................... 844,791 1.9%
Mining, metals and minerals....................... 676,629 1.5%
Electrical equipment.............................. 578,106 1.3%
Diversified holdings.............................. 500,454 1.1%
Household durables and appliances................. 453,558 1.0%
Real estate....................................... 446,568 1.0%
Diversified consumer goods........................ 433,635 1.0%
Electronics and instrumentation................... 395,986 0.9%
Fabricated metal products......................... 358,156 0.8%
Business services and computer software........... 308,069 0.7%
Machinery and engineering services................ 233,443 0.5%
Textiles and wearing apparel...................... 72,485 0.2%
Transportation and storage........................ 72,215 0.2%
Aerospace and defense components.................. 70,520 0.2%
Non-oil energy equipment services................. 23,580 0.1%
----------- ----------
PORTFOLIO OF SECURITIES
(Cost $42,309,182).............................. 44,327,276 100.0%
----------
OTHER INVESTMENT+ ----------
(Cost $12,279,368).............................. 12,279,368
-----------
TOTAL INVESTMENTS, AT VALUE
(Cost $54,588,550).............................. $56,606,644
-----------
-----------
Cost of investments for Federal income tax
purposes........................................ $54,618,558
-----------
-----------
Aggregate gross unrealized appreciation........... $ 3,488,203
Aggregate gross unrealized depreciation........... (1,500,117)
-----------
Aggregate net unrealized appreciation............. $ 1,988,086
-----------
-----------
+ Investment of cash collateral received for securities loaned in State Street
Bank and Trust Company of New Hampshire, NA Securities Lending Quality Trust.
The accompanying notes are an integral part of the financial statements.
9
<PAGE>
THE COUNTRYBASKETS(SM) INDEX FUND, INC.
GERMANY INDEX SERIES
SCHEDULE OF INVESTMENTS
OCTOBER 31, 1996
- --------------------------------------------------------------------------------
% OF
SECURITY DESCRIPTION SHARES VALUE NET ASSETS
- --------------------------------------------------------------------------------
Allianz AG Holdings.......................... 1,130 $ 2,029,695 9.34%
Daimler Benz AG*............................. 24,860 1,460,514 6.72%
Siemens AG................................... 26,200 1,354,841 6.23%
Bayer AG..................................... 33,880 1,281,133 5.89%
VEBA AG...................................... 23,524 1,255,637 5.78%
Deutsche Bank AG (a)......................... 23,568 1,092,424 5.03%
Hoechst AG................................... 28,160 1,059,813 4.88%
Munchener Ruckversicherungs AG (registered).. 390 932,988 4.29%
BASF AG...................................... 28,980 926,929 4.26%
Mannesmann AG................................ 1,770 687,786 3.16%
RWE AG....................................... 15,644 644,492 2.97%
Dresdner Bank AG............................. 21,982 588,335 2.71%
Volkswagen AG (registered)................... 1,316 518,546 2.39%
Commerzbank AG............................... 23,060 516,609 2.38%
Bayerische Motoren Werke AG.................. 880 515,251 2.37%
Bayerische Vereinsbank....................... 11,358 427,463 1.97%
VIAG AG...................................... 978 361,934 1.67%
Bayerische Hypotheken--und Wechsel--Bank AG.. 12,300 360,497 1.66%
Metro AG*.................................... 4,359 357,792 1.65%
RWE AG (preferred)........................... 9,640 327,448 1.51%
SAP AG....................................... 2,124 286,063 1.32%
Thyssen AG................................... 1,506 269,710 1.24%
Schering AG.................................. 3,208 258,323 1.19%
Linde AG..................................... 394 244,101 1.12%
Lufthansa AG................................. 18,420 241,022 1.11%
Gehe AG...................................... 3,500 235,923 1.09%
VEW AG....................................... 642 213,830 0.98%
Beiersdorf AG................................ 4,080 206,534 0.95%
Preussag AG.................................. 774 186,492 0.86%
Adidas AG.................................... 2,106 180,649 0.83%
AMB Aachener & Muencher Beteil AG
(registered)............................... 198 179,262 0.82%
Degussa AG................................... 420 164,869 0.76%
Berliner Kraft und Licht AG.................. 522 154,544 0.71%
Altana AG.................................... 192 153,529 0.71%
Karstadt AG.................................. 414 151,105 0.70%
Hochtief AG.................................. 3,420 140,353 0.65%
Heidelberg Zement AG......................... 1,860 137,668 0.63%
Manitoba AG.................................. 540 131,502 0.61%
Henkel KGAA*................................. 2,840 127,529 0.59%
Rheinelektra AG.............................. 138 111,261 0.51%
VIAG AG...................................... 288 104,869 0.48%
Victoria Holding AG.......................... 164 104,044 0.48%
BHF Bank AG.................................. 4,038 100,069 0.46%
Metallgesellschaft AG........................ 5,246 96,620 0.44%
Volkswagen AG (preferred).................... 318 96,564 0.44%
CKAG Colonia Konzern AG...................... 1,260 94,092 0.43%
Continental AG............................... 4,656 81,538 0.38%
Bilfinger & Berger AG........................ 1,740 70,488 0.32%
Douglas Holding AG........................... 1,470 61,687 0.28%
Holzmann Philipp AG.......................... 216 53,529 0.25%
PWA Papier Waldhof AG........................ 348 49,905 0.23%
Manitoba AG (preferred)...................... 216 42,609 0.20%
AMB Aachener & Muencher Beteil AG C BEARER... 42 30,809 0.14%
AGIV AG...................................... 1,962 28,525 0.13%
Bayerische Motoren Werke AG (preferred)...... 60 24,901 0.11%
Metro AG* (preferred)........................ 384 23,220 0.11%
Deutsche Babcock AG.......................... 342 9,764 0.04%
----------- ----------
PORTFOLIO OF SECURITIES
(Cost $20,796,542)......................... 21,547,629 99.16%
OTHER INVESTMENT+
(Cost $1,099,739).......................... 1,099,739 5.06%
----------- ----------
TOTAL INVESTMENTS, AT VALUE
(Cost $21,896,281)......................... 22,647,368 104.22%
LIABILITIES IN EXCESS OF OTHER ASSETS........ (916,277) (4.22%)
----------- ----------
NET ASSETS................................... $21,731,091 100.00%
----------- ----------
----------- ----------
(a) Represents investment in an affiliate.
* Non-income producing securities.
+ Investment of cash collateral received for securities loaned in State Street
Bank and Trust Company of New Hampshire, NA Securities Lending Quality
Trust.
The accompanying notes are an integral part of the financial statements.
10
<PAGE>
THE COUNTRYBASKETS(SM) INDEX FUND, INC.
GERMANY INDEX SERIES
SCHEDULE OF INVESTMENTS BY MARKET SECTOR
OCTOBER 31, 1996
- --------------------------------------------------------------------------------
% OF
INDUSTRY VALUE PORTFOLIO
- --------------------------------------------------------------------------------
Chemicals......................................... $ 3,653,727 17.0%
Financial institutions and services............... 3,370,889 15.7%
Commercial banks and other banks.................. 3,085,397 14.3%
Automobiles....................................... 2,615,776 12.1%
Electrical equipment.............................. 1,466,102 6.8%
Utilities......................................... 1,340,314 6.2%
Diversified holding companies..................... 1,255,637 5.8%
Machinery and engineering services................ 1,115,763 5.2%
Mining, metals and minerals....................... 1,019,626 4.7%
Retail trade...................................... 593,804 2.8%
Construction and building materials............... 402,037 1.9%
Health and personal care.......................... 360,063 1.7%
Business services and computer software........... 286,063 1.3%
Transportation and storage........................ 241,022 1.1%
Wholesale trade................................... 235,923 1.1%
Entertainment and leisure toys.................... 180,649 0.8%
Precious metals and minerals...................... 164,869 0.8%
Auto components................................... 81,538 0.4%
Forestry and paper products....................... 49,905 0.2%
Diversified industrials........................... 28,525 0.1%
----------- ----------
PORTFOLIO OF SECURITIES
(Cost $20,796,542).............................. 21,547,629 100.0%
----------
OTHER INVESTMENT+ ----------
(Cost $1,099,739)............................... 1,099,739
-----------
TOTAL INVESTMENTS, AT VALUE
(Cost $21,896,281).............................. $22,647,368
-----------
-----------
Cost of investments for Federal income tax
purposes........................................ $21,896,398
-----------
-----------
Aggregate gross unrealized appreciation........... $ 1,405,244
Aggregate gross unrealized depreciation........... (654,274)
-----------
Aggregate net unrealized appreciation............. $ 750,970
-----------
-----------
+ Investment of cash collateral received for securities loaned in State Street
Bank and Trust Company of New Hampshire, NA Securities Lending Quality Trust.
The accompanying notes are an integral part of the financial statements.
11
<PAGE>
THE COUNTRYBASKETS(SM) INDEX FUND, INC.
HONG KONG INDEX SERIES
SCHEDULE OF INVESTMENTS
OCTOBER 31, 1996
- --------------------------------------------------------------------------------
% OF
SECURITY DESCRIPTION SHARES VALUE NET ASSETS
- --------------------------------------------------------------------------------
Sun Hung Kai Properties...................... 138,000 $ 1,570,552 9.79%
Hutchison Whampoa............................ 208,000 1,452,605 9.05%
Hang Seng Bank............................... 112,000 1,328,968 8.28%
Hong Kong Telecommunications................. 662,200 1,168,994 7.28%
Cheung Kong Holdings......................... 133,000 1,066,434 6.65%
Henderson Land Development................... 99,000 880,235 5.49%
New World Development Co..................... 102,000 593,613 3.70%
Citic Pacific Ltd............................ 122,000 593,251 3.70%
Wharf Holdings............................... 131,000 540,446 3.37%
China Light & Power.......................... 115,000 533,928 3.33%
Swire Pacific ('A').......................... 56,000 494,289 3.08%
Hong Kong Electric........................... 117,000 374,500 2.33%
Hong Kong Land Holdings...................... 154,000 343,420 2.14%
Cathay Pacific Air........................... 198,000 309,843 1.93%
Hong Kong & China Gas........................ 173,000 304,282 1.90%
Wheelock & Co................................ 115,000 258,784 1.61%
Swire Pacific ('B').......................... 176,500 247,665 1.54%
Bank of East Asia............................ 63,000 246,058 1.53%
Jardine Matheson............................. 42,000 237,300 1.48%
Jardine Strategic............................ 62,000 202,120 1.26%
Hysan Development............................ 60,000 192,439 1.20%
First Pacific Co............................. 133,000 183,186 1.14%
Henderson Investor........................... 165,000 180,315 1.12%
Amoy Properties.............................. 145,000 179,086 1.12%
Dao Heng Bank Group.......................... 40,000 175,885 1.10%
Sino Land Co................................. 154,000 171,281 1.07%
Hopewell Holdings............................ 253,000 170,143 1.06%
Hang Lung Development Co..................... 76,000 150,382 0.94%
Guoco Group.................................. 25,000 132,237 0.82%
Shangri La Asia Ltd.......................... 89,000 127,187 0.79%
Hong Kong & Shanghai Hotel................... 60,000 110,187 0.69%
National Mutual Asia......................... 129,000 108,441 0.68%
Chinese Estates.............................. 112,000 102,117 0.64%
Television Broadcasting...................... 25,000 87,619 0.55%
South China Morning Post..................... 102,000 87,063 0.54%
Great Eagle Holdings......................... 27,000 86,772 0.54%
New Asia Realty.............................. 20,000 81,476 0.51%
Miramar Hotel & Investor..................... 31,000 60,137 0.37%
CDL Hotels International..................... 114,000 58,973 0.37%
Shun Tak Holdings............................ 89,000 58,702 0.37%
Dairy Farm International..................... 97,000 58,685 0.37%
Dickson Concept.............................. 17,000 56,723 0.35%
Mandarin Oriental............................ 41,000 55,350 0.35%
Johnson Electric Holdings.................... 21,000 45,898 0.29%
Realty Development Corp...................... 11,000 42,109 0.26%
Kowloon Motor Bus............................ 21,800 36,511 0.23%
Semi Tech Global............................. 20,000 35,695 0.22%
Jardine International Motor.................. 28,000 35,125 0.22%
Sime Darby HK................................ 29,000 34,317 0.21%
Varitronix International..................... 15,000 27,353 0.17%
Hong Kong Aircraft........................... 10,000 25,478 0.16%
Harbour Centre Development................... 17,000 23,085 0.14%
Chen Hsong Holding........................... 39,000 22,445 0.14%
Shaw Brothers HK Ltd......................... 21,000 22,270 0.14%
Cross Harbour Tunnel......................... 10,000 21,727 0.14%
China Motor Bus Co........................... 2,000 19,787 0.12%
Wing On Company International Ltd............ 15,000 15,616 0.10%
Sun Hung Kai Co.............................. 40,000 10,475 0.07%
Winsor Property Holdings Ltd.*#.............. 7,500 8,730 0.05%
Winsor Industrial............................ 15,000 3,492 0.02%
Sun Hung Kai Co. (rights)*#.................. 16,000 0 0.00%
----------- ----------
PORTFOLIO OF SECURITIES
(Cost $14,755,328)......................... 15,851,786 98.81%
OTHER INVESTMENT+
(Cost $226,380)............................ 226,380 1.41%
----------- ----------
TOTAL INVESTMENTS, AT VALUE
(Cost $14,981,708)......................... 16,078,166 100.22%
LIABILITIES IN EXCESS OF OTHER ASSETS........ (34,948) (0.22)%
----------- ----------
NET ASSETS................................... $16,043,218 100.00%
----------- ----------
----------- ----------
# Fair valued security.
* Non-income producing securities.
+ Investment of cash collateral received for securities loaned in State Street
Bank and Trust Company of New Hampshire, NA Securities Lending Quality Trust.
The accompanying notes are an integral part of the financial statements.
12
<PAGE>
THE COUNTRYBASKETS(SM) INDEX FUND, INC.
HONG KONG INDEX SERIES
SCHEDULE OF INVESTMENTS BY MARKET SECTOR
OCTOBER 31, 1996
- --------------------------------------------------------------------------------
% OF
INDUSTRY VALUE PORTFOLIO
- --------------------------------------------------------------------------------
Real estate....................................... $ 6,412,354 40.5%
Utilities......................................... 2,381,704 15.0%
Commercial banks and other banks.................. 1,750,912 11.0%
Diversified consumer goods and services........... 1,689,905 10.7%
Diversified holding companies..................... 1,667,707 10.5%
Entertainment and leisure toys.................... 460,681 2.9%
Transportation and storage........................ 446,569 2.8%
Retail trade...................................... 389,808 2.5%
Media............................................. 174,683 1.1%
Financial institutions and services............... 142,713 0.9%
Insurance--multiline and property and casualty.... 108,441 0.7%
Electrical equipment.............................. 45,898 0.3%
Automobiles....................................... 35,125 0.2%
Household durables and appliances................. 35,694 0.2%
Wholesale trade................................... 34,317 0.2%
Electronics and instrumentation................... 27,353 0.2%
Aerospace and defense composite................... 25,477 0.2%
Machinery and engineering services................ 22,445 0.1%
----------- ---------
PORTFOLIO OF SECURITIES
(Cost $14,755,328).............................. 15,851,786 100.0%
---------
OTHER INVESTMENT+ ---------
(Cost $226,380)................................. 226,380
-----------
TOTAL INVESTMENTS, AT VALUE
(Cost $14,981,708).............................. $16,078,166
-----------
-----------
Cost of investments for Federal income tax
purposes........................................ $14,981,708
-----------
-----------
Aggregate gross unrealized appreciation........... $ 1,464,405
Aggregate gross unrealized depreciation........... (367,947)
-----------
Aggregate net unrealized appreciation............. $ 1,096,458
-----------
-----------
+ Investment of cash collateral received for securities loaned in State Street
Bank and Trust Company of New Hampshire, NA Securities Lending Quality Trust.
The accompanying notes are an integral part of the financial statements.
13
<PAGE>
THE COUNTRYBASKETS(SM) INDEX FUND, INC.
ITALY INDEX SERIES
SCHEDULE OF INVESTMENTS
OCTOBER 31, 1996
- --------------------------------------------------------------------------------
% OF
SECURITY DESCRIPTION SHARES VALUE NET ASSETS
- --------------------------------------------------------------------------------
Telecom Italia............................ 1,373,805 $ 3,062,262 9.57%
Telecom Italia Mobile..................... 1,415,256 2,925,991 9.15%
Stet...................................... 776,747 2,684,178 8.39%
Assicurazioni Generali.................... 137,219 2,651,443 8.29%
Fiat SpA.................................. 659,846 1,764,551 5.52%
Instituto Nazionale Assicurazioni......... 997,061 1,377,546 4.31%
Eni SpA................................... 268,763 1,287,673 4.02%
Alleanza Assicurazioni.................... 175,592 1,239,051 3.87%
Istituto Mobilare Italiano................ 139,902 1,107,609 3.46%
Mediaset*................................. 233,200 1,096,525 3.43%
Istituto Bancario san Paolo di Torino..... 172,497 1,023,822 3.20%
Banca Commerce Italiana................... 412,587 711,521 2.22%
RAS....................................... 72,475 686,346 2.15%
Stet RISP................................. 250,559 667,562 2.09%
Italgas Society Italiana.................. 178,924 660,780 2.07%
Pirelli SpA............................... 372,292 660,445 2.06%
Montedison SpA*........................... 946,756 619,370 1.94%
Mediobanca SpA............................ 118,148 617,485 1.93%
Telecom Italia (savings).................. 249,859 476,204 1.49%
Sirti SpA................................. 79,230 476,002 1.49%
Saipem.................................... 90,806 463,507 1.45%
Credito Italiano.......................... 406,320 415,069 1.30%
Telecom Italia Mobile (savings)........... 344,513 393,054 1.23%
SAI SpA................................... 46,104 363,335 1.14%
Gemina*................................... 761,744 340,596 1.06%
Olivetti & Cia SpA........................ 999,063 290,557 0.91%
Alleanza Assicurazioni (savings).......... 54,594 282,988 0.88%
La Fondiaria Assicurazioni SpA............ 73,724 253,793 0.79%
Banca Ambros Veneto....................... 110,510 222,281 0.69%
Burgo Cartiere SpA........................ 43,398 219,373 0.69%
Toro Assicurazioni........................ 17,140 218,157 0.68%
La Rinascente SpA......................... 36,170 213,964 0.67%
IFI Instituto Finanziaro.................. 25,819 210,284 0.66%
RAS (savings)............................. 39,788 192,203 0.60%
Ifil 1st Finance Italia................... 116,459 187,397 0.59%
Ifil 1st Finance Italia (savings)......... 69,941 181,961 0.57%
Fiat SpA (preferred)...................... 117,793 167,016 0.52%
Marzotto & Figli.......................... 24,032 142,083 0.44%
Italcementi............................... 26,103 138,317 0.43%
Fiat SpA (savings)........................ 93,956 136,316 0.43%
Editor L'Espresso*........................ 49,684 124,509 0.39%
Cir Compagnie Industries*................. 248,372 117,442 0.37%
Unicem*................................... 16,937 112,813 0.35%
Magneti Marelli........................... 98,564 95,551 0.30%
Montedison SpA* (savings)................. 149,688 94,767 0.30%
Banca Ambros Veneto....................... 46,320 71,327 0.22%
Milano Assicurazioni...................... 29,904 66,756 0.21%
Toro Assicurazioni........................ 13,126 64,403 0.20%
SAI Society Assic (savings)............... 20,220 63,206 0.20%
Toro Assicurazioni (savings).............. 12,427 61,383 0.19%
Sasib..................................... 17,352 56,015 0.18%
Unicem (savings).......................... 14,328 36,757 0.11%
Sasib (savings)........................... 13,308 23,038 0.07%
Banca Commerce Italiana (savings)......... 10,228 18,617 0.06%
Cir Compagnie Industries* (savings)....... 59,256 12,896 0.04%
Rinascente SpA* (warrants)................ 1 0 0.00%
------------ ----------
PORTFOLIO OF SECURITIES
(Cost $30,175,179)...................... 31,848,097 99.57%
OTHER INVESTMENT+
(Cost $10,179,669)...................... 10,179,669 31.83%
------------ ----------
TOTAL INVESTMENTS, AT VALUE
(Cost $40,354,848)...................... 42,027,766 131.40%
LIABILITIES IN EXCESS OF OTHER ASSETS..... (10,042,886) (31.40%)
------------ ----------
NET ASSETS................................ $ 31,984,880 100.00%
------------ ----------
------------ ----------
* Non-income producing securities.
+ Investment of cash collateral received for securities loaned in State Street
Bank and Trust Company of New Hampshire, NA Securities Lending Quality Trust.
The accompanying notes are an integral part of the financial statements.
14
<PAGE>
THE COUNTRYBASKETS(SM) INDEX FUND, INC.
ITALY INDEX SERIES
SCHEDULE OF INVESTMENTS BY MARKET SECTOR
OCTOBER 31, 1996
- --------------------------------------------------------------------------------
% OF
INDUSTRY VALUE PORTFOLIO
- --------------------------------------------------------------------------------
Utilities......................................... $10,870,030 34.1%
Insurance--multiline and property and casualty.... 6,143,063 19.3%
Commercial banks and other banks.................. 2,462,637 7.7%
Automobiles....................................... 2,067,883 6.5%
Financial institutions and services............... 2,065,690 6.5%
Insurance--life and agents and brokers............ 1,377,546 4.3%
Oil............................................... 1,287,673 4.0%
Media............................................. 1,221,034 3.8%
Diversified holding companies..................... 1,054,759 3.3%
Computer and communications and office
equipment....................................... 766,559 2.4%
Auto components................................... 755,996 2.4%
Non-oil energy equipment and services............. 463,507 1.5%
Food and grocery products......................... 369,359 1.2%
Construction and building materials............... 287,887 0.9%
Forestry and paper products....................... 219,373 0.7%
Retail trade...................................... 213,965 0.6%
Textiles and wearing apparel...................... 142,083 0.5%
Machinery and engineering services................ 79,053 0.3%
----------- ----------
PORTFOLIO OF SECURITIES
(Cost $30,175,179).............................. 31,848,097 100.0%
----------
OTHER INVESTMENT+ ----------
(Cost $10,179,669).............................. 10,179,669
-----------
TOTAL INVESTMENTS, AT VALUE
(Cost $40,354,848).............................. $42,027,766
-----------
-----------
Cost of investments for Federal income tax
purposes........................................ $40,570,305
-----------
-----------
Aggregate gross unrealized appreciation........... $ 3,187,161
Aggregate gross unrealized depreciation........... (1,729,700)
-----------
Aggregate net unrealized appreciation............. $ 1,457,461
-----------
-----------
+ Investment of cash collateral received for securities loaned in State Street
Bank and Trust Company of New Hampshire, NA Securities Lending Quality Trust.
The accompanying notes are an integral part of the financial statements.
15
<PAGE>
THE COUNTRYBASKETS(SM) INDEX FUND, INC.
JAPAN INDEX SERIES
SCHEDULE OF INVESTMENTS
OCTOBER 31, 1996
- --------------------------------------------------------------------------------
% OF
SECURITY DESCRIPTION SHARES VALUE NET ASSETS
- --------------------------------------------------------------------------------
Bank of Tokyo Mitsubishi................... 127,800 $2,606,816 3.74%
Toyota Motor Corp.......................... 104,000 2,459,644 3.53%
Sumitomo Bank.............................. 88,000 1,547,388 2.22%
Fuji Bank.................................. 80,000 1,441,884 2.07%
Dai Ichi Kangyo Bank....................... 85,000 1,382,538 1.99%
Bank of Japan Industries................... 69,000 1,377,087 1.98%
Sanwa Bank................................. 80,000 1,364,515 1.96%
Sakura Bank................................ 96,000 911,552 1.31%
Matsushita Electric Industries............. 56,000 896,078 1.29%
Nomura Securities.......................... 53,000 876,033 1.26%
Tokyo Electric Power....................... 37,600 862,809 1.24%
Hitachi.................................... 94,000 834,710 1.20%
Mitsubishi Heavy Industry.................. 88,000 676,982 0.97%
Asahi Bank................................. 64,000 658,343 0.95%
Tokai Bank................................. 56,000 649,903 0.93%
Seven Eleven Japan......................... 11,000 640,232 0.92%
Sony Corp.................................. 10,400 624,512 0.90%
Honda Motor Co............................. 26,000 621,769 0.89%
Nippon Telephone & Telegraph Corp.......... 88 615,087 0.88%
Seibu Railway Co........................... 12,000 574,995 0.83%
Kansai Electric Power...................... 27,200 571,549 0.82%
Nippon Steel Corp.......................... 192,000 560,436 0.80%
Toshiba Corp............................... 88,000 550,870 0.79%
Ito Yokado Co.............................. 11,000 549,323 0.79%
Mitsubishi Trust & Banking................. 35,000 516,968 0.74%
East Japan Railway......................... 112 514,999 0.74%
Nippondenso Co............................. 24,000 497,978 0.72%
Nissan Motor Co............................ 64,000 484,473 0.70%
Sharp Corp................................. 30,000 456,304 0.66%
Mitsubishi Corp............................ 40,000 446,632 0.64%
Tokio Marine & Fire........................ 40,000 439,599 0.63%
NEC Corp................................... 40,000 436,082 0.63%
Chubu Electric Power....................... 20,800 429,752 0.62%
Long Term Credit Bank of Japan............. 64,000 424,828 0.61%
Fujitsu.................................... 48,000 422,015 0.61%
Canon Inc.................................. 22,000 421,663 0.61%
Takeda Chemical Industries................. 24,000 411,465 0.59%
Fuji Photo Film Co......................... 14,000 402,497 0.58%
Mitsubishi Estate.......................... 32,000 399,507 0.57%
Kyocera Corp............................... 6,000 396,166 0.57%
Daiwa Securities........................... 36,000 389,309 0.56%
Nikko Securities........................... 40,000 383,330 0.55%
Bridgestone Corp........................... 21,000 354,493 0.51%
Sumitomo Trust & Banking................... 32,000 354,493 0.51%
Asahi Glass Co............................. 32,000 337,612 0.48%
Dai Nippon Printing........................ 20,000 337,612 0.48%
Mitsubishi Electric Corp................... 56,000 324,459 0.47%
Mitsui & Co................................ 40,000 323,545 0.46%
Mitsui Trust & Banking..................... 32,000 309,478 0.44%
Kirin Brewery Co........................... 29,000 298,312 0.43%
Sankyo Co.................................. 12,000 297,521 0.43%
Tohoku Electric Power...................... 13,600 276,209 0.40%
Kinki Nippon Railway....................... 41,200 273,483 0.39%
Mitsui Fudosan Co.......................... 22,000 272,727 0.39%
Kawasaki Steel Corp........................ 88,000 271,567 0.39%
Kyushu Electric Power...................... 12,800 262,212 0.38%
Asahi Chemical Industries.................. 40,000 249,692 0.36%
Nippon Express Co.......................... 30,000 243,977 0.35%
Sumitomo Corp.............................. 30,000 242,395 0.35%
Sumitomo Metal Industries.................. 88,000 242,166 0.35%
Itochu Corp................................ 40,000 241,604 0.35%
NKK Corp.*................................. 96,000 241,393 0.35%
Shizuoka Bank.............................. 21,000 240,021 0.34%
Secom Co................................... 4,000 238,438 0.34%
Jusco Co................................... 8,000 237,735 0.34%
Bank of Yokohama........................... 32,000 237,454 0.34%
Rohm Co.................................... 4,000 237,383 0.34%
TDK Corp................................... 4,000 234,922 0.34%
Sanyo Electric Co.......................... 48,000 232,952 0.33%
Mitsubishi Chemical........................ 56,000 228,943 0.33%
Daiwa Bank................................. 40,000 226,833 0.33%
Murata Manufacturing Co.................... 7,000 225,250 0.32%
Tokyo Gas Co............................... 72,000 224,723 0.32%
Sumitomo Electric Industries .............. 16,000 211,007 0.30%
Chugoku Electric Power..................... 10,400 209,390 0.30%
Kajima Corp................................ 24,000 206,576 0.30%
Fanuc...................................... 6,400 205,381 0.29%
Tonen Corp................................. 16,000 205,381 0.29%
Nintendo Co................................ 3,200 204,818 0.29%
Mitsubishi Motor........................... 24,000 198,769 0.29%
Osaka Gas Co............................... 64,000 198,066 0.28%
Komatsu.................................... 24,000 196,659 0.28%
Toppan Printing Co......................... 16,000 195,534 0.28%
Toray Industries Inc....................... 32,000 193,283 0.28%
Shimizu Corp............................... 21,000 190,170 0.27%
Toyo Seikan Kaisha......................... 6,000 189,907 0.27%
Kao Corp................................... 16,000 188,500 0.27%
Toyo Trust & Banking....................... 22,000 188,008 0.27%
Marubeni Corp.............................. 40,000 185,335 0.27%
Nippon Oil Co.............................. 32,000 182,873 0.26%
Kubota Corp................................ 32,000 181,185 0.26%
Daiwa House Industries..................... 13,000 180,587 0.26%
Yamaichi Securities Co..................... 32,000 178,372 0.26%
Tostem Corp................................ 6,000 172,499 0.25%
Kobe Steel*................................ 72,000 170,916 0.25%
Sumitomo Chemical.......................... 40,000 170,916 0.25%
Ajinomoto Co. Inc.......................... 16,000 170,213 0.24%
Sekisui House.............................. 16,000 168,806 0.24%
Sekisui Chemical........................... 15,000 167,487 0.24%
Yamanouchi Pharmaceutical.................. 8,000 162,476 0.23%
Tokyu Corp................................. 24,000 161,421 0.23%
Hachijuni Bank............................. 16,000 160,366 0.23%
Nippon Yusen............................... 32,000 160,366 0.23%
Ricoh Co................................... 16,000 158,959 0.23%
Taisho Pharmaceutical Co................... 8,000 158,959 0.23%
16
<PAGE>
THE COUNTRYBASKETS(SM) INDEX FUND, INC.
JAPAN INDEX SERIES
SCHEDULE OF INVESTMENTS (CONTINUED)
OCTOBER 31, 1996
- --------------------------------------------------------------------------------
% OF
SECURITY DESCRIPTION SHARES VALUE NET ASSETS
- --------------------------------------------------------------------------------
Matsushita Electric Works.................. 16,000 $ 154,739 0.22%
Yasuda Fire & Marine Insurance............. 24,000 152,558 0.22%
Eisai Co................................... 8,400 150,659 0.22%
Marui Co................................... 8,000 148,409 0.21%
Toyoda Auto Loom........................... 8,000 148,409 0.21%
Ishi Kawajima-Harima Heavy Industry........ 32,000 147,705 0.21%
Taisei Corp................................ 24,000 147,705 0.21%
Kawasaki Heavy Industries.................. 32,000 146,580 0.21%
Shikoku Electric Power..................... 7,200 145,595 0.21%
Shin Etsu Chemical Co...................... 8,400 144,013 0.21%
Omron Corp................................. 8,000 142,782 0.21%
Daiei Inc.................................. 16,000 142,078 0.20%
Nippon Credit Bank......................... 47,000 141,735 0.20%
Isuzu Motors............................... 28,000 138,597 0.20%
Nippon Paper Industries.................... 24,000 135,467 0.19%
Tobu Railway Co............................ 24,000 135,256 0.19%
Suzuki Motor Corp.......................... 13,000 132,583 0.19%
Matsushita Commerce........................ 5,000 132,319 0.19%
Hoya Corp.................................. 4,000 131,528 0.19%
Bank of Fukuoka............................ 17,200 129,295 0.19%
Tokyo Electron............................. 5,000 128,802 0.18%
Yamazaki Baking Co......................... 8,000 127,308 0.18%
Japan Tobacco Inc.......................... 18 127,237 0.18%
Ono Pharmaceutical......................... 4,000 124,846 0.18%
Obayashi Corp.............................. 16,000 123,510 0.18%
Mycal Corp................................. 8,000 123,088 0.18%
Kinden Corp................................ 8,800 123,017 0.18%
Mitsukoshi................................. 14,000 121,980 0.18%
Yamaha Corp................................ 8,000 121,681 0.17%
Hankyu Corp................................ 24,000 120,696 0.17%
Chiba Bank................................. 16,000 120,415 0.17%
Yamaguchi Bank............................. 8,000 119,571 0.17%
Sumitomo Metal Mining...................... 15,000 117,769 0.17%
Hitachi Zosen Corp......................... 24,000 117,320 0.17%
New Oji Paper Co........................... 16,000 117,179 0.17%
Yasuda Trust & Banking..................... 24,000 117,109 0.17%
Aisin Seiki Co............................. 8,000 116,054 0.17%
Matsushita Kotobuk......................... 5,000 115,614 0.17%
Gunma Bank................................. 13,000 115,439 0.17%
Daiichi Pharmaceutical Co.................. 8,000 115,351 0.17%
Ebara Corp................................. 8,000 115,351 0.17%
Sumitomo Marine & Fire..................... 16,000 114,788 0.16%
Takashimaya Co............................. 8,000 114,647 0.16%
Hokkaido Electric Power.................... 5,600 112,256 0.16%
Hokuriku Electric Power.................... 5,600 111,764 0.16%
Teijin..................................... 24,000 111,201 0.16%
All Nippon Airways......................... 13,000 108,467 0.16%
Isetan Co.................................. 8,000 106,910 0.15%
Mitsubishi Materials....................... 24,000 106,770 0.15%
Mazda Motor Corp........................... 24,000 106,559 0.15%
Joyo Bank.................................. 16,000 105,785 0.15%
Nippon Meat Packer......................... 8,000 104,800 0.15%
Toto....................................... 8,000 104,800 0.15%
Mitsui Marine & Fire....................... 16,000 104,097 0.15%
Uny Co..................................... 6,000 103,921 0.15%
Terumo Corp................................ 8,000 102,690 0.15%
Banyu Pharmaceutical....................... 8,000 101,987 0.15%
Odakyu Electric Railway.................... 16,480 101,859 0.15%
Canon Sales Co. Inc........................ 4,000 101,635 0.15%
Familymart Co.............................. 2,400 100,440 0.14%
Yakult Honsha Co........................... 8,000 99,877 0.14%
NSK........................................ 15,000 99,437 0.14%
Kokuyo Co.................................. 4,000 99,173 0.14%
Pioneer Electronic......................... 5,000 98,910 0.14%
Sega Enterprises........................... 2,400 97,063 0.14%
Japan Telecom Co........................... 4 96,360 0.14%
Hankyu Department Stores................... 8,000 95,657 0.14%
Nissho Iwai Corp........................... 21,000 95,270 0.14%
Kandenko Co................................ 8,800 95,164 0.14%
Tokyo Dome Corp............................ 5,000 94,074 0.14%
Shiseido Co................................ 8,000 93,547 0.13%
Keyence Corp............................... 800 92,843 0.13%
Sony Music Entertainment................... 2,400 92,632 0.13%
Japan Air Lines Co......................... 16,000 91,437 0.13%
Nissin Food Products....................... 4,000 90,382 0.13%
Victor Co. of Japan........................ 8,000 90,030 0.13%
Oki Electric Industries.................... 16,000 89,186 0.13%
Nikon Corp................................. 8,000 88,623 0.13%
Kurita Water Industries.................... 4,400 88,588 0.13%
Hokuriku Bank.............................. 16,000 88,482 0.13%
Cosmo Oil Co............................... 16,000 86,654 0.12%
Hiroshima Bank............................. 16,000 86,513 0.12%
Ashikaga Bank.............................. 16,000 85,669 0.12%
Furukawa Electric.......................... 16,000 84,966 0.12%
Jgc Corp................................... 8,000 84,403 0.12%
Keio Teito Electric Railway................ 16,000 84,403 0.12%
Matsuzakaya Co............................. 8,000 84,403 0.12%
Nippon Fire & Marine....................... 16,000 84,403 0.12%
Kokusai Securities......................... 7,000 84,315 0.12%
Yamato Transport........................... 8,000 82,996 0.12%
Asahi Breweries............................ 8,000 82,293 0.12%
NGK Spark Plug Co.......................... 8,000 82,293 0.12%
Chuo Trust & Banking....................... 8,000 81,590 0.12%
NGK Insulators............................. 8,000 80,886 0.12%
Seiyu...................................... 8,000 80,886 0.12%
NCR Japan Ltd.............................. 8,000 80,183 0.12%
Japan Energy Corp.......................... 24,000 78,917 0.11%
Kuraray Co................................. 8,000 77,369 0.11%
Mitsubishi Logistics Corp.................. 5,000 76,930 0.11%
Toho Co.................................... 500 76,930 0.11%
Okuma Corp.*............................... 8,000 76,666 0.11%
Nippon Electric Glass...................... 5,000 76,490 0.11%
Chiyoda Corp............................... 8,000 75,963 0.11%
Daikin Industries.......................... 8,000 75,963 0.11%
17
<PAGE>
THE COUNTRYBASKETS(SM) INDEX FUND, INC.
JAPAN INDEX SERIES
SCHEDULE OF INVESTMENTS (CONTINUED)
OCTOBER 31, 1996
- --------------------------------------------------------------------------------
% OF
SECURITY DESCRIPTION SHARES VALUE NET ASSETS
- --------------------------------------------------------------------------------
Nankai Electric Rail....................... 13,250 $ 75,837 0.11%
Chichibu Onoda Cement...................... 16,000 75,681 0.11%
77 Bank.................................... 8,000 75,259 0.11%
Ezaki Glico Co............................. 8,000 74,556 0.11%
Fuji Heavy Industries...................... 16,000 74,556 0.11%
Showa Shell Sekiyu......................... 8,000 74,556 0.11%
Nitto Denko Corp........................... 5,000 74,292 0.11%
Nisshin Steel Co........................... 24,000 74,275 0.11%
Nishimatsu Construction.................... 8,000 73,853 0.11%
Chugai Pharmaceutical Co................... 8,000 73,149 0.11%
Fujita Kanko Inc........................... 4,000 73,149 0.11%
Fuji Electric Co........................... 16,000 72,727 0.10%
Nippon Sharyo.............................. 8,000 72,446 0.10%
Noritake Co................................ 8,000 72,446 0.10%
National House Industrial.................. 5,000 72,094 0.10%
Olympus Optical Co......................... 8,000 71,743 0.10%
Nisshin Flour Mill......................... 6,300 71,452 0.10%
Shimano Inc................................ 4,000 71,391 0.10%
Yokogawa Electric.......................... 8,000 71,039 0.10%
Sumitomo Forestry.......................... 5,000 70,775 0.10%
Fujisawa Pharmaceutical Co................. 8,000 70,336 0.10%
Koyo Seiko Co.............................. 8,000 70,336 0.10%
Takara Shuzo Co............................ 8,000 70,336 0.10%
Sapporo Breweries.......................... 8,000 70,125 0.10%
Onward Kashiyama........................... 5,000 69,896 0.10%
Nisshinbo Industries Inc................... 8,000 69,703 0.10%
Sanyo Chemical Industries.................. 8,000 69,632 0.10%
Hitachi Credit Corp........................ 4,000 69,281 0.10%
House Food Corp............................ 4,000 69,281 0.10%
Kokusai Densetsu........................... 800 69,281 0.10%
Amada Co................................... 8,000 68,929 0.10%
Makita Corp................................ 5,000 68,577 0.10%
Dainippon Ink & Chemicals.................. 16,000 68,507 0.10%
Hino Motors................................ 8,000 68,296 0.10%
Nagase & Co................................ 8,000 68,226 0.10%
Inax Corp.................................. 8,000 68,085 0.10%
Fukuyama Transport......................... 8,000 67,804 0.10%
Minebea Co................................. 8,000 67,452 0.10%
Yoshitomi Pharmaceutical................... 8,400 67,354 0.10%
Hitachi Koki Co............................ 8,000 67,171 0.10%
Mitsui Osk Lines*.......................... 24,000 67,100 0.10%
Nippon Shokubai Co......................... 8,000 66,678 0.10%
Sanwa Shutter Corp......................... 8,000 66,186 0.10%
Hitachi Metals............................. 8,000 65,905 0.09%
Casio Computer Co.......................... 8,000 65,764 0.09%
Maeda Corp................................. 8,000 65,061 0.09%
Kyowa Hakko Kogyo.......................... 8,000 64,920 0.09%
Misawa Homes Co............................ 8,000 64,850 0.09%
Nagoya Railroad Co......................... 16,000 64,850 0.09%
Showa Denko K.K.*.......................... 24,000 63,935 0.09%
Toda Corp.................................. 8,000 63,373 0.09%
Autobacs Seven Co.......................... 800 63,162 0.09%
Mitsubishi Rayon........................... 16,000 62,880 0.09%
Tosoh Corp.*............................... 16,000 62,599 0.09%
Shionogi & Co.............................. 8,000 62,247 0.09%
General Sekiyu............................. 8,000 62,107 0.09%
Alps Electric Co........................... 5,000 61,983 0.09%
Mitsui Soko Co............................. 8,000 61,966 0.09%
Mizuno Corp................................ 8,000 61,966 0.09%
Tokyo Steel Manufacturing.................. 4,000 61,896 0.09%
Mercian Corp............................... 8,000 61,685 0.09%
Kyushu Matsushita.......................... 4,000 61,544 0.09%
Fujikura................................... 8,000 60,981 0.09%
Citizen Watch Co........................... 8,000 60,840 0.09%
Wacoal Corp................................ 5,000 59,785 0.09%
Tanabe Seiyaku Co.......................... 8,000 59,715 0.09%
Sanden Corp................................ 8,000 59,645 0.09%
Hirose Electric............................ 1,000 59,434 0.09%
Hitachi Maxell............................. 3,000 59,346 0.09%
Mitsubishi Oil Co.......................... 8,000 59,012 0.08%
Toei Co.................................... 8,000 58,871 0.08%
Seiko Corp.*............................... 8,000 58,379 0.08%
Sumitomo Realty & Development.............. 8,000 58,238 0.08%
Hitachi Cable.............................. 8,000 58,027 0.08%
Calsonic Corp.............................. 8,000 57,675 0.08%
Nippon Road Co............................. 8,000 57,464 0.08%
Nisshin Oil Mills.......................... 8,000 57,183 0.08%
Kikkoman Corp.............................. 8,000 56,761 0.08%
Sumitomo Heavy Industries* ................ 16,000 56,409 0.08%
Hokkaido Takushoku......................... 24,000 56,339 0.08%
Okumura Corp............................... 8,000 56,269 0.08%
Mitsui Toatsu Chemical..................... 16,000 55,987 0.08%
Nippon Hodo Co............................. 4,000 55,917 0.08%
Seino Transportation....................... 4,000 55,565 0.08%
Matsushita Refrigeration................... 8,000 55,214 0.08%
Yomiuri Land Co............................ 8,000 55,143 0.08%
Skylark Co................................. 3,000 54,334 0.08%
Kaken Pharmaceutical....................... 8,000 54,299 0.08%
Gakken Co.................................. 8,000 54,159 0.08%
Koito Manufacturing Co..................... 8,000 54,159 0.08%
Konica Corp................................ 8,000 53,526 0.08%
Japan Radio Co............................. 4,000 53,455 0.08%
Nok Corp................................... 8,000 53,315 0.08%
Nippon Kayaku Co........................... 8,000 53,104 0.08%
Japan Synthetic Rubber..................... 8,000 52,963 0.08%
Tomen Corp................................. 16,000 52,471 0.08%
Nichido Fire & Marine...................... 8,400 52,435 0.08%
Itoham Foods Inc........................... 8,000 52,048 0.07%
Sumitomo Bakelite.......................... 8,000 52,049 0.07%
Ube Industries............................. 16,000 51,767 0.07%
Tekken Corp................................ 8,000 51,064 0.07%
Fudo Construction.......................... 8,000 50,923 0.07%
Nihon Cement Co............................ 8,000 50,782 0.07%
Kumagai Gumi Co............................ 16,000 50,642 0.07%
Sumitomo Warehouse......................... 8,000 50,431 0.07%
18
<PAGE>
THE COUNTRYBASKETS(SM) INDEX FUND, INC.
JAPAN INDEX SERIES
SCHEDULE OF INVESTMENTS (CONTINUED)
OCTOBER 31, 1996
- --------------------------------------------------------------------------------
% OF
SECURITY DESCRIPTION SHARES VALUE NET ASSETS
- --------------------------------------------------------------------------------
Nissan Fire & Marine Insurance............. 8,000 $ 50,290 0.07%
Dai Tokyo Fire & Marine.................... 8,000 50,009 0.07%
Daikyo Inc................................. 8,000 49,798 0.07%
Maruichi Steel Tube........................ 3,000 49,587 0.07%
Snow Brand Milk............................ 8,000 49,587 0.07%
Marudai Food Co............................ 8,000 49,305 0.07%
Daifuku Co................................. 4,000 49,235 0.07%
Orient Corp................................ 8,000 49,165 0.07%
Teikoku Oil Co............................. 8,000 49,165 0.07%
Tsubakimoto Chain.......................... 8,000 49,165 0.07%
Toyobo Co.................................. 16,000 49,094 0.07%
Nissin Electric............................ 8,000 48,954 0.07%
Dainippon Pharmaceutical................... 5,000 48,795 0.07%
Oji Paper Co............................... 6,667 48,766 0.07%
Mitsui Petrochemical....................... 8,000 48,602 0.07%
Ntn Corp................................... 8,000 48,602 0.07%
Nippon Shinpan Co.......................... 8,000 48,461 0.07%
Minolta Co................................. 8,000 48,321 0.07%
Daimaru Inc................................ 8,000 48,250 0.07%
Japan Storage Battery Co................... 8,000 48,250 0.07%
Nichirei Corp.............................. 8,000 47,899 0.07%
Izumiya Co................................. 3,000 47,740 0.07%
Daishowa Paper Manufacturing*.............. 8,000 47,266 0.07%
CSK Corp................................... 1,600 47,125 0.07%
Zexel Corp................................. 8,000 46,914 0.07%
Meiji Milk Product......................... 8,000 46,844 0.07%
Stanley Electric........................... 8,000 46,773 0.07%
Toa Corp................................... 8,000 46,562 0.07%
Toyota Tsusho Corp......................... 8,000 46,492 0.07%
Tokyu Department Store..................... 8,000 45,718 0.07%
Tokyo Style Co............................. 3,000 45,630 0.07%
Mochida Pharmaceutical Co. ................ 4,000 45,367 0.06%
Gunze Ltd.................................. 8,000 45,015 0.06%
Kaneka Corp................................ 8,000 45,015 0.06%
Meiji Seika Kaisha......................... 8,000 44,734 0.06%
Penta Ocean Construction................... 8,000 44,452 0.06%
Tokuyama Corp.............................. 8,000 44,452 0.06%
Mori Seiki Co.............................. 3,000 44,312 0.06%
Nagasakiya Co.............................. 8,000 44,241 0.06%
Heiwa Corp................................. 2,500 43,740 0.06%
Yokohama Rubber Co......................... 8,000 43,608 0.06%
Bank of Kyoto.............................. 8,000 43,538 0.06%
Keihin Electric Express Railway............ 8,240 42,816 0.06%
Yuasa Corp.*............................... 8,000 42,553 0.06%
Kawasaki Kisen*............................ 16,000 42,483 0.06%
Hitachi Chemical........................... 5,000 42,289 0.06%
Showa Aluminium Co......................... 8,000 42,131 0.06%
Nippon Flour Mills......................... 8,000 41,498 0.06%
Toshoku.................................... 8,000 41,498 0.06%
Chiyoda Fire & Marine...................... 8,000 41,287 0.06%
Aoyama Trading Co.......................... 1,600 40,935 0.06%
Mitsubishi Steel........................... 8,000 40,865 0.06%
Shima Seiki Manufacturing.................. 800 40,865 0.06%
Mabuchi Motor Co........................... 800 40,795 0.06%
Mitsuboshi Belting......................... 8,000 40,795 0.06%
Lion Corp.................................. 8,000 40,724 0.06%
Daicel Chemical Industries................. 8,000 40,513 0.06%
Daito Trust Construct Co. Ltd.............. 3,200 40,513 0.06%
Mitsui Engineer & Shipbuilding............. 16,000 40,373 0.06%
Toyo Ink Manufacturing Co. ................ 8,000 40,373 0.06%
Anritsu Corp............................... 3,000 40,091 0.06%
Iwatani International Corp................. 8,000 40,091 0.06%
Brother Industries......................... 8,000 39,951 0.06%
Dowa Fire & Marine......................... 8,000 39,599 0.06%
Nissan Diesel Motor........................ 8,000 39,107 0.06%
Nippon Zeon Co............................. 8,000 39,036 0.06%
Mitsubishi Paper........................... 8,000 38,544 0.06%
Nippon Light Metal......................... 8,000 38,544 0.06%
Sato Kogyo Co.............................. 8,000 38,403 0.05%
Best Denki Co.............................. 3,000 37,981 0.05%
Showa Electric Wire........................ 8,000 37,841 0.05%
New Japan Securities*...................... 8,000 37,770 0.05%
Tokyu Land Corp.*.......................... 8,000 37,630 0.05%
Tokai Carbon Co............................ 8,000 37,489 0.05%
Iwatsu Electric Co......................... 8,000 37,348 0.05%
Kanematsu Corp............................. 8,000 37,348 0.05%
Orix Corp.................................. 1,000 37,278 0.05%
Yamamura Glass Co.......................... 8,000 37,278 0.05%
Ryobi...................................... 8,000 36,504 0.05%
Fuji Fire & Marine......................... 8,000 36,364 0.05%
Tokyo Car Corp............................. 8,000 36,334 0.05%
Kureha Chemical Industries Co.............. 8,000 36,293 0.05%
Amano Corp................................. 3,000 35,871 0.05%
Tokyo Rope Manufacturing Co................ 8,000 35,731 0.05%
Kansai Paint Co............................ 8,000 35,660 0.05%
Fujiya Co. Ltd.*........................... 8,000 35,590 0.05%
Morinaga Milk Industries................... 8,000 35,309 0.05%
Showa Sangyo Co............................ 8,000 34,957 0.05%
Takaoka Electric Manufacturing............. 8,000 34,887 0.05%
Dowa Mining Co............................. 8,000 34,605 0.05%
Nippon Paint Co............................ 8,000 34,535 0.05%
Asahi Optical Co.*......................... 8,000 34,465 0.05%
Toshiba Machine Co.*....................... 8,000 34,324 0.05%
Mitsubishi Plastic......................... 8,000 34,183 0.05%
Nippon Sanso Corp.......................... 8,000 34,113 0.05%
Gun Ei Chemical Industries................. 8,000 33,972 0.05%
Arabian Oil Co............................. 800 33,410 0.05%
Nippon Sheet Glass......................... 8,000 33,410 0.05%
19
<PAGE>
THE COUNTRYBASKETS(SM) INDEX FUND, INC.
JAPAN INDEX SERIES
SCHEDULE OF INVESTMENTS (CONTINUED)
OCTOBER 31, 1996
- --------------------------------------------------------------------------------
% OF
SECURITY DESCRIPTION SHARES VALUE NET ASSETS
- --------------------------------------------------------------------------------
Daido Steel Co............................. 8,000 $ 33,058 0.05%
Sankyu Inc................................. 8,000 33,058 0.05%
NHK Spring Co.............................. 8,000 32,917 0.05%
Mitsubishi Gas Chemical.................... 8,000 32,706 0.05%
Sumitomo Osaka Cement...................... 8,000 32,706 0.05%
Atsugi Nylon Industrial.................... 8,000 32,636 0.05%
Toyo Kanetsu............................... 8,000 32,636 0.05%
Hanshin Electric Railway*.................. 8,000 32,495 0.05%
Nachi Fujikoshi Co.*....................... 8,000 32,425 0.05%
Tokico Co.................................. 8,000 32,214 0.05%
Toyo Construction.......................... 8,000 31,792 0.05%
Toyo Tire & Rubber......................... 8,000 31,299 0.05%
Yaskawa Electric Corp.*.................... 8,000 30,877 0.04%
Tokyu Construction......................... 8,000 30,807 0.04%
Nippon Suisan*............................. 8,000 30,666 0.04%
Japan Metal & Chemical..................... 8,000 30,596 0.04%
Green Cross Corp........................... 8,000 29,822 0.04%
Yamato Kogyo Co............................ 3,000 29,805 0.04%
Fujita Corp................................ 8,000 29,682 0.04%
Iseki & Co.*............................... 8,000 29,541 0.04%
Nippon Yakin Kogyo......................... 8,000 29,189 0.04%
Mitsui Mining & Smelting................... 8,000 29,049 0.04%
Nihon Nosan Kogyo.......................... 8,000 28,767 0.04%
Nichiro Corp............................... 8,000 28,627 0.04%
Central Finance Co.*....................... 8,000 28,486 0.04%
Hazama Corp................................ 8,000 28,134 0.04%
Heiwa Real Estate.......................... 4,000 27,923 0.04%
Haseko Corp.*.............................. 8,000 27,220 0.04%
Sumitomo Light Metal* ..................... 8,000 26,798 0.04%
Tobishima Corp.*........................... 8,000 26,728 0.04%
Kurabo Industries.......................... 8,000 26,446 0.04%
Prima Meat Packers......................... 8,000 26,376 0.04%
York Benimaru Co........................... 800 26,306 0.04%
Central Glass Co.*......................... 8,000 25,391 0.04%
Renown Inc.*............................... 8,000 25,321 0.04%
Niigata England*........................... 8,000 25,180 0.04%
Japan Wool Textile......................... 3,000 25,057 0.04%
Maruha Corp.*.............................. 8,000 24,969 0.04%
Shokusan Jutaku Co.*....................... 8,000 24,055 0.03%
Ishihara Sangyo*........................... 8,000 23,985 0.03%
Hanwa Co.*................................. 8,000 23,562 0.03%
Makino Milling............................. 3,000 23,343 0.03%
Aoki Corp.*................................ 8,000 23,281 0.03%
Nippon TV Network.......................... 80 23,211 0.03%
Nitto Boseki Co.*.......................... 8,000 22,507 0.03%
Asics Corp................................. 8,000 22,015 0.03%
Settsu Corp.*.............................. 8,000 21,663 0.03%
Japan Steel Works.......................... 8,000 21,382 0.03%
Unitika*................................... 8,000 19,764 0.03%
Kanebo*.................................... 8,000 19,413 0.03%
Navix Line*................................ 8,000 19,131 0.03%
Joyo Bank (rights)*#....................... 1,600 0 0.00%
---------- -----------
PORTFOLIO OF SECURITIES
(Cost $75,743,854)....................... 69,310,628 99.55%
OTHER INVESTMENT+
(Cost $6,978,725)........................ 6,978,725 10.02%
---------- -----------
TOTAL INVESTMENTS, AT VALUE
(Cost $82,722,579)....................... 76,289,353 109.57%
LIABILITIES IN EXCESS OF OTHER ASSETS...... (6,661,413) (9.57%)
---------- -----------
NET ASSETS................................. $69,627,940 100.00%
---------- -----------
---------- -----------
# Fair Valued Security.
* Non-income producing securities.
+ Investment of cash collateral received for securities loaned in State Street
Bank and Trust Company of New Hampshire, NA Securities Lending Quality
Trust.
The accompanying notes are an integral part of the financial statements.
20
<PAGE>
THE COUNTRYBASKETS(SM) INDEX FUND, INC.
JAPAN INDEX SERIES
SCHEDULE OF INVESTMENTS BY MARKET SECTOR
OCTOBER 31, 1996
- --------------------------------------------------------------------------------
% OF
INDUSTRY VALUE PORTFOLIO
- --------------------------------------------------------------------------------
Commercial banks and other banks.................. $14,397,540 20.8%
Automobiles....................................... 4,324,352 6.2%
Electronics and instrumentation................... 4,207,225 6.1%
Utilities......................................... 4,115,771 5.9%
Financial institutions and services............... 3,749,444 5.4%
Transportation and storage........................ 3,392,719 4.9%
Retail trade...................................... 2,966,062 4.3%
Construction and building materials............... 2,955,582 4.3%
Household durables and appliances................. 2,876,981 4.2%
Health and personal care.......................... 2,348,608 3.4%
Chemicals......................................... 2,280,762 3.3%
Mining, metals and minerals....................... 2,179,549 3.2%
Wholesale trade................................... 1,899,612 2.8%
Auto components................................... 1,877,474 2.7%
Diversified industrials........................... 1,874,133 2.7%
Computers and communications and office
equipment....................................... 1,795,691 2.6%
Food and grocery products......................... 1,680,314 2.4%
Entertainment and leisure toys.................... 1,655,626 2.4%
Machinery and engineering services................ 1,553,516 2.2%
Insurance--multiline and property and casualty.... 1,165,429 1.7%
Electrical equipment.............................. 1,134,868 1.6%
Real estate....................................... 796,026 1.1%
Oil............................................... 782,908 1.1%
Beverage industry and tobacco manufacturing....... 709,987 1.0%
Media............................................. 610,515 0.9%
Textiles and wearing apparel...................... 512,520 0.7%
Fabricated metal products......................... 502,620 0.7%
Forestry and paper products....................... 479,661 0.7%
Business services and computer software........... 285,563 0.4%
Precious metals and minerals...................... 117,769 0.2%
Non-oil energy, equipment and services............ 81,801 0.1%
----------- ----------
PORTFOLIO OF SECURITIES
(Cost $75,743,854).............................. 69,310,628 100.0%
----------
OTHER INVESTMENT+ ----------
(Cost $6,978,725)............................... 6,978,725
-----------
TOTAL INVESTMENTS, AT VALUE
(Cost $82,722,579).............................. $76,289,353
-----------
-----------
Cost of investments for Federal income tax
purposes........................................ $82,725,412
-----------
-----------
Aggregate gross unrealized appreciation........... $ 776,917
Aggregate gross unrealized depreciation........... (7,212,976)
-----------
Aggregate net unrealized depreciation............. $(6,436,059)
-----------
-----------
+ Investment of cash collateral received for securities loaned in State Street
Bank and Trust Company of New Hampshire, NA Securities Lending Quality Trust.
The accompanying notes are an integral part of the financial statements.
21
<PAGE>
THE COUNTRYBASKETS(SM) INDEX FUND, INC.
SOUTH AFRICA INDEX SERIES
SCHEDULE OF INVESTMENTS
OCTOBER 31, 1996
- --------------------------------------------------------------------------------
% OF
SECURITY DESCRIPTION SHARES VALUE NET ASSETS
- --------------------------------------------------------------------------------
Anglo America Corp. SA....................... 29,734 $ 1,788,280 11.23%
DeBeers Centenary............................ 48,297 1,425,339 8.95%
South Africa Breweries....................... 40,754 1,059,445 6.65%
Sasol........................................ 77,395 944,141 5.93%
Liberty Life Associates...................... 31,716 866,731 5.44%
Gencor....................................... 189,557 658,379 4.13%
Standard Bank Investment Corp................ 15,329 587,942 3.69%
Rembrandt Group.............................. 66,198 578,332 3.63%
Liberty Holdings............................. 6,248 442,671 2.78%
Nedcor Ltd................................... 27,934 407,729 2.56%
Gold Fields of South Africa.................. 12,540 400,809 2.52%
Driefontein Consolidated Ltd. ............... 26,258 348,297 2.19%
Anglo America Industrial Corp................ 9,774 333,227 2.09%
Samancor Ltd................................. 24,037 313,715 1.97%
First National Bank.......................... 56,063 307,611 1.93%
Smith C.G.................................... 60,563 291,652 1.83%
Rembrandt Controlling Investor .............. 46,650 278,329 1.75%
Anglo America Gold........................... 3,101 270,255 1.70%
Rustenberg Platinum.......................... 17,037 264,104 1.66%
Southern Life Association.................... 23,938 258,864 1.63%
Nampak....................................... 65,556 258,424 1.62%
Tiger Oats................................... 19,426 255,605 1.60%
Johnnies Indiana Corp........................ 19,526 228,836 1.44%
Barlow Ltd................................... 26,252 228,788 1.44%
Iscor........................................ 314,571 224,549 1.41%
JCI Ltd...................................... 19,455 201,058 1.26%
Anglovaal Industries......................... 40,968 196,415 1.23%
Vaal Reefs Exploration & Mining.............. 2,472 192,260 1.21%
Anglovaal Industries......................... 6,005 183,617 1.15%
Sappi........................................ 20,288 179,405 1.13%
Safmarine & Rennie........................... 70,173 177,937 1.12%
Middle Witwatersrand......................... 41,808 174,608 1.10%
Kloof Gold Mining............................ 17,096 158,465 0.99%
Premier Group................................ 117,176 155,302 0.98%
Anglo America Plat Corp...................... 22,946 151,571 0.95%
Tongaat Hulett Group Ltd..................... 12,352 144,760 0.91%
Murray & Roberts............................. 41,661 141,592 0.89%
Free State Consolidated Gold Mines Ltd....... 15,021 131,229 0.82%
Western Deep Levels.......................... 3,567 107,549 0.68%
Impala Platinum.............................. 7,857 100,452 0.63%
Reunert...................................... 24,174 97,870 0.61%
Wooltru Limited 'A' Shares................... 26,653 97,684 0.61%
Wooltru Limited.............................. 20,349 76,097 0.48%
Highveld Steel & Vanadium.................... 11,718 46,193 0.29%
Anglo America Industrial Corp. (rights)#..... 1,065 2,927 0.02%
----------- ----------
TOTAL INVESTMENTS, AT VALUE
(Cost $18,069,789)......................... 15,739,045 98.83%
OTHER ASSETS LESS LIABILITIES................ 187,069 1.17%
----------- ----------
NET ASSETS................................... $15,926,114 100.0%
----------- ----------
----------- ----------
# Fair valued security.
The accompanying notes are an integral part of the financial statements.
22
<PAGE>
THE COUNTRYBASKETS(SM) INDEX FUND, INC.
SOUTH AFRICA INDEX SERIES
SCHEDULE OF INVESTMENTS BY MARKET SECTOR
OCTOBER 31, 1996
- --------------------------------------------------------------------------------
% OF
INDUSTRY VALUE INVESTMENTS
- --------------------------------------------------------------------------------
Precious metals and minerals...................... $ 6,372,654 40.5%
Beverage industry and tobacco manufacturing....... 1,637,777 10.4%
Insurance--life and agents and brokers............ 1,568,266 10.0%
Diversified holding companies..................... 1,514,956 9.6%
Commercial banks and other banks.................. 1,303,283 8.3%
Oil............................................... 944,141 6.0%
Mining, metals and minerals....................... 584,456 3.7%
Food and grocery products......................... 555,667 3.5%
Forestry and paper products....................... 437,829 2.8%
Construction and building materials............... 370,428 2.4%
Transportation and storage........................ 177,937 1.1%
Retail trade...................................... 173,781 1.1%
Electrical equipment.............................. 97,870 0.6%
----------- ------------
TOTAL INVESTMENTS, AT VALUE
(Cost $18,069,789).............................. $15,739,045 100.0%
----------- ------------
----------- ------------
Cost of investments for Federal income tax
purposes........................................ $18,071,931
-----------
-----------
Aggregate gross unrealized appreciation........... $ 241,206
Aggregate gross unrealized depreciation........... (2,574,092)
-----------
Aggregate net unrealized depreciation............. $(2,332,886)
-----------
-----------
The accompanying notes are an integral part of the financial statements.
23
<PAGE>
THE COUNTRYBASKETS(SM) INDEX FUND, INC.
UK INDEX SERIES
SCHEDULE OF INVESTMENTS
OCTOBER 31, 1996
- --------------------------------------------------------------------------------
% OF
SECURITY DESCRIPTION SHARES VALUE NET ASSETS
- --------------------------------------------------------------------------------
British Petroleum.......................... 58,279 $ 627,299 4.67%
Glaxo Wellcome............................. 36,471 572,513 4.26%
Shell Transport & Trading.................. 34,228 561,549 4.17%
British Telecom............................ 65,413 378,673 2.82%
HSBC HKD 10 Holdings....................... 18,381 376,839 2.80%
Smithkline Beecham......................... 28,261 349,063 2.60%
Lloyds TSB Group........................... 52,664 334,456 2.49%
Zeneca Group............................... 9,647 262,657 1.96%
Barclays Plc............................... 15,594 244,918 1.82%
Marks & Spencer............................ 28,859 242,254 1.80%
BAT Industries Plc......................... 31,659 220,649 1.64%
Reuters Holdings........................... 17,305 215,432 1.60%
National Westminster....................... 17,313 197,770 1.47%
Cable & Wireless........................... 23,923 190,496 1.42%
HSBC Holdings (ordinary)................... 8,882 186,578 1.39%
Unilever................................... 8,649 181,825 1.35%
RTZ Corp................................... 11,340 181,429 1.35%
General Electric........................... 28,347 175,178 1.30%
British Sky Broadcasting................... 18,198 171,431 1.28%
Grand Metropolitan......................... 22,218 167,693 1.25%
BTR........................................ 39,693 166,438 1.24%
Prudential Corp............................ 20,689 156,321 1.16%
Abbey National............................. 14,363 149,454 1.11%
Guinness................................... 20,738 148,587 1.11%
British Gas................................ 47,479 148,058 1.10%
Granada Group.............................. 9,054 130,407 0.97%
Vodafone Group............................. 32,427 125,410 0.93%
Tesco...................................... 22,863 123,790 0.92%
Bass....................................... 9,327 119,682 0.89%
J Sainsbury Plc............................ 19,410 115,050 0.86%
Reed International......................... 6,006 111,787 0.83%
Standard Chartered......................... 10,335 111,580 0.83%
Royal Sun Alliance Group................... 16,126 110,684 0.82%
Great University Stores.................... 10,674 106,375 0.79%
Rentokil Group............................. 14,924 100,247 0.75%
Imperial Chemical Industries............... 7,692 98,827 0.74%
Boots Co................................... 9,119 92,660 0.69%
EMI Group.................................. 4,569 89,840 0.67%
BAA........................................ 10,980 88,952 0.66%
Cadbury Schweppes.......................... 10,545 87,746 0.65%
National Power............................. 13,063 86,576 0.64%
Allied Domecq Plc.......................... 10,995 85,045 0.63%
Siebe...................................... 5,151 81,069 0.60%
Commercial Union........................... 7,368 77,807 0.58%
Kingfisher................................. 7,107 75,630 0.56%
Lloyds Abbey Life.......................... 7,413 75,627 0.56%
Pearson.................................... 5,907 73,104 0.54%
Hanson..................................... 55,083 72,430 0.54%
BOC Group.................................. 5,112 72,131 0.54%
Safeway Plc................................ 12,117 71,921 0.54%
Royal Bank of Scotland Group............... 8,583 71,211 0.53%
GKN........................................ 3,705 69,684 0.52%
Legal & General Group...................... 13,095 68,983 0.51%
Scot & Newcastle........................... 6,504 67,624 0.50%
Associated British Foods................... 9,546 65,599 0.49%
Powergen................................... 7,728 64,180 0.48%
Land Securities............................ 5,415 63,135 0.47%
Peninsula & Oriental Steam................. 6,420 63,092 0.47%
Lucas Varity*.............................. 15,306 61,937 0.46%
General Accident........................... 5,091 60,726 0.45%
Whitbread.................................. 5,127 60,195 0.45%
British Steel.............................. 21,600 60,059 0.45%
Scottish Power............................. 11,666 59,745 0.44%
Asda Group................................. 31,038 59,387 0.44%
Rank Group................................. 8,841 58,810 0.44%
Bank of Scotland........................... 12,552 57,844 0.43%
United News & Media Plc.................... 4,947 54,255 0.40%
Tomkins.................................... 12,603 52,949 0.39%
National Grid Group........................ 17,949 52,903 0.39%
Reckitt & Colman........................... 4,506 52,170 0.39%
United Utilities........................... 5,547 51,487 0.38%
Blue Circle Industries..................... 7,782 50,499 0.38%
RMC Group.................................. 2,834 50,095 0.37%
Carlton Communications..................... 6,183 49,536 0.37%
3I Group................................... 6,240 49,129 0.37%
Wolseley................................... 6,262 48,640 0.36%
Enterprise Oil............................. 5,232 47,413 0.35%
TI Group................................... 4,983 46,130 0.34%
Smiths Industries.......................... 3,207 42,823 0.32%
Ladbroke Group............................. 12,378 40,212 0.30%
Guardian Royal Exchange Plc................ 9,546 39,406 0.29%
Severn Trent............................... 3,891 39,157 0.29%
Thames Water............................... 4,284 38,682 0.29%
Dixons Group............................... 4,263 38,076 0.28%
Argos...................................... 3,018 37,915 0.28%
Redland.................................... 5,511 37,781 0.28%
Burmah Castrol Plc......................... 2,160 37,759 0.28%
Burton Group............................... 15,114 36,733 0.27%
Williams Holdings.......................... 6,159 36,406 0.27%
Schroders.................................. 1,599 36,323 0.27%
Next....................................... 3,972 36,221 0.27%
Tate & Lyle................................ 4,641 36,049 0.27%
Lasmo...................................... 10,248 35,712 0.27%
Smith & Nephew............................. 11,691 35,696 0.27%
Mercury Asset Manitoba Group............... 1,938 35,645 0.27%
Vendome Luxury Group SA.................... 3,702 34,874 0.26%
British Land Co............................ 4,572 34,136 0.25%
Hays....................................... 4,000 33,447 0.25%
Orange..................................... 11,000 33,227 0.25%
Imperial Tobacco........................... 5,508 32,156 0.24%
Premier Farnell Plc........................ 2,858 31,996 0.24%
Courtaulds................................. 4,302 31,944 0.24%
24
<PAGE>
THE COUNTRYBASKETS(SM) INDEX FUND, INC.
UK INDEX SERIES
SCHEDULE OF INVESTMENTS (CONTINUED)
OCTOBER 31, 1996
- --------------------------------------------------------------------------------
% OF
SECURITY DESCRIPTION SHARES VALUE NET ASSETS
- --------------------------------------------------------------------------------
BPB Industries............................. 5,355 $ 31,610 0.24%
MEPC....................................... 4,530 31,535 0.23%
Rexam...................................... 5,346 30,556 0.23%
Electrocomponents.......................... 4,494 30,260 0.23%
Compass Group.............................. 3,000 29,800 0.22%
Pilkington................................. 10,653 29,664 0.22%
Greenalls Group............................ 3,159 29,244 0.22%
Southern Electric.......................... 2,703 28,324 0.21%
Foreign & Colonial Investor Trust.......... 11,154 27,290 0.20%
Cookson Group.............................. 7,227 26,655 0.20%
Inchcape................................... 5,604 26,418 0.20%
WPP Group.................................. 7,000 25,989 0.19%
Thorn*..................................... 4,569 25,780 0.19%
BBA Group.................................. 4,392 25,640 0.19%
British Aerospace.......................... 1,341 25,440 0.19%
Anglian Water.............................. 2,853 25,389 0.19%
Caradon Plc................................ 6,363 25,023 0.19%
Securicor.................................. 5,500 24,943 0.19%
Johnson Matthey............................ 2,492 24,693 0.18%
Laporte.................................... 2,049 23,940 0.18%
Arjo Wiggins Apple......................... 8,712 23,408 0.17%
Emap....................................... 2,000 23,302 0.17%
NFC........................................ 7,377 23,185 0.17%
IMI........................................ 3,648 23,108 0.17%
Sears...................................... 16,158 23,023 0.17%
British Airways............................ 2,547 22,977 0.17%
De La Rue.................................. 2,373 22,779 0.17%
Yorkshire Electric Group................... 1,885 22,392 0.17%
Smith (WH) Group........................... 2,979 22,290 0.17%
Telewest*.................................. 9,762 22,017 0.16%
Provident Financial........................ 2,868 21,506 0.16%
British Biotech*........................... 5,800 21,392 0.16%
Hillsdown Holdings......................... 7,422 21,211 0.16%
BICC....................................... 4,442 21,158 0.16%
FKI........................................ 5,988 20,477 0.15%
Stagecoach Holdings........................ 2,200 20,366 0.15%
Storehouse................................. 4,446 20,163 0.15%
Lonrho..................................... 8,259 20,106 0.15%
Northern Foods............................. 6,147 19,919 0.15%
London Electricity......................... 2,006 19,893 0.15%
Daily Mail & General Trust................. 900 19,580 0.15%
United Biscuits............................ 5,613 19,012 0.14%
Rolls Royce................................ 4,596 19,010 0.14%
Hammerson Plc.............................. 3,009 18,693 0.14%
East Midlands Electric..................... 2,106 18,605 0.14%
Coats Viyella.............................. 7,443 18,544 0.14%
Alliance Trust............................. 500 18,470 0.14%
Scottish Hydro............................. 4,077 18,257 0.14%
Bunzl...................................... 4,716 18,239 0.14%
Morgan Crucible Co......................... 2,346 18,146 0.14%
Associates British Ports................... 4,050 17,905 0.13%
Unigate.................................... 2,499 17,580 0.13%
Witan Investment........................... 3,984 17,484 0.13%
Edinburgh Investor Trust................... 3,117 17,308 0.13%
Slough Estates............................. 4,146 16,743 0.12%
Vickers.................................... 3,540 16,717 0.12%
Millennium Chemicals Inc.*................. 787 15,935 0.12%
Bowthorpe.................................. 2,055 15,812 0.12%
Booker..................................... 2,394 15,788 0.12%
Harrisons & Crosfield...................... 7,545 15,726 0.12%
Dalgety.................................... 3,066 15,552 0.12%
Glynwed International...................... 2,589 14,840 0.11%
M & G Group................................ 792 14,393 0.11%
Tarmac..................................... 9,819 14,390 0.11%
Scottish Mortgage and Trust Plc............ 3,000 13,471 0.10%
Allied Colloids............................ 5,655 13,398 0.10%
Spirax Sarco Engineering................... 1,084 12,948 0.10%
Hepworth................................... 2,589 12,521 0.09%
Electra Investor Trust..................... 1,836 12,512 0.09%
Barratt Development........................ 2,959 12,311 0.09%
Charter.................................... 921 12,260 0.09%
Racal Electronics.......................... 2,700 12,179 0.09%
Sedgwick Group............................. 5,799 11,757 0.09%
T & N...................................... 5,637 11,749 0.09%
Cowie Group Plc............................ 2,000 11,692 0.09%
Rugby Group................................ 6,798 11,181 0.08%
Invesco Plc................................ 2,835 10,733 0.08%
Scapa Group................................ 2,532 10,617 0.08%
Great Portland Estates Plc................. 3,432 10,535 0.08%
Taylor Woodrow............................. 4,095 10,336 0.08%
First Leisure Corp......................... 1,737 10,310 0.08%
English China Clay......................... 3,252 9,956 0.07%
McKechnie Plc.............................. 1,044 9,741 0.07%
Halma...................................... 2,838 9,428 0.07%
Meyer International........................ 1,344 9,050 0.07%
Schroders (non-voting)..................... 468 8,955 0.07%
Willis Corroon Group....................... 4,452 8,845 0.07%
Kwik Save Group............................ 1,650 8,558 0.06%
Fleming Mercantile Investment Trust........ 1,533 8,163 0.06%
Wimpey George.............................. 3,840 7,848 0.06%
City of London Trust....................... 2,799 7,748 0.06%
Marley..................................... 3,564 7,632 0.06%
Highland Distilleries...................... 1,413 7,605 0.06%
Hambros.................................... 1,878 7,554 0.06%
Brixton Estate............................. 2,478 7,203 0.05%
Eurotunnel SA*............................. 4,881 7,034 0.05%
Christies International.................... 1,743 7,025 0.05%
Trust Small Companies Investor Trust....... 1,890 6,956 0.05%
Bryant Group............................... 2,970 6,577 0.05%
Vaux Group................................. 1,494 6,094 0.05%
25
<PAGE>
THE COUNTRYBASKETS(SM) INDEX FUND, INC.
UK INDEX SERIES
SCHEDULE OF INVESTMENTS (CONTINUED)
OCTOBER 31, 1996
- --------------------------------------------------------------------------------
% OF
SECURITY DESCRIPTION SHARES VALUE NET ASSETS
- --------------------------------------------------------------------------------
Bradford Property Trust.................... 1,551 $ 5,986 0.04%
Wilson C Holdings.......................... 2,097 5,327 0.04%
Courtaulds Textile......................... 1,101 5,002 0.04%
Albert Fisher Group........................ 7,563 4,926 0.04%
Diploma.................................... 594 3,806 0.03%
Amstrad.................................... 1,236 3,069 0.02%
---------- -----------
TOTAL INVESTMENTS, AT VALUE
(Cost $11,617,142)....................... 13,257,922 98.68%
OTHER ASSETS LESS LIABILITIES.............. 177,179 1.32%
---------- -----------
NET ASSETS................................. $13,435,101 100.00%
---------- -----------
---------- -----------
* Non-income producing securities.
The accompanying notes are an integral part of the financial statements.
26
<PAGE>
THE COUNTRYBASKETS(SM) INDEX FUND, INC.
UK INDEX SERIES
SCHEDULE OF INVESTMENTS BY MARKET SECTOR
OCTOBER 31, 1996
- --------------------------------------------------------------------------------
% OF
INDUSTRY VALUE INVESTMENTS
- --------------------------------------------------------------------------------
Commercial banks and other banks.................. $ 1,730,649 13.0%
Utilities......................................... 1,448,415 10.9%
Oil............................................... 1,309,731 9.9%
Health and personal care.......................... 1,293,492 9.7%
Retail trade...................................... 1,142,851 8.6%
Beverage industry and tobacco manufacturing....... 944,575 7.1%
Media............................................. 857,036 6.5%
Food and grocery products......................... 480,281 3.6%
Construction and building materials............... 392,700 3.0%
Chemicals......................................... 383,078 2.9%
Diversified industrials........................... 324,426 2.4%
Insurance--life and agents and brokers............ 321,532 2.4%
Financial institutions............................ 313,640 2.4%
Insurance--multiline and property and casualty.... 288,623 2.2%
Entertainment and leisure toys.................... 269,538 2.0%
Electronics and instrumentation................... 260,121 2.0%
Transportation and storage........................ 255,204 1.9%
Mining, metals and minerals....................... 241,488 1.8%
Real estate....................................... 187,965 1.4%
Auto components................................... 157,260 1.2%
Machinery and engineering services................ 120,539 0.9%
Diversified holdings.............................. 92,537 0.7%
Aerospace and defense components.................. 87,272 0.7%
Fabricated metal products......................... 85,798 0.6%
Forestry and paper products....................... 72,203 0.5%
Wholesale trade................................... 47,071 0.4%
Diversified consumer goods........................ 34,874 0.3%
Business services and computer software........... 33,447 0.3%
Precious metals................................... 24,693 0.2%
Textiles and wearing apparel...................... 23,546 0.2%
Electrical equipment.............................. 21,158 0.2%
Computers and office equipment.................... 12,179 0.1%
----------- ------------
TOTAL INVESTMENTS, AT VALUE
(Cost $11,617,142).............................. $13,257,922 100.0%
----------- ------------
----------- ------------
Cost of investments for Federal income tax
purposes........................................ $11,634,735
-----------
-----------
Aggregate gross unrealized appreciation........... $ 1,848,210
Aggregate gross unrealized depreciation........... (225,023)
-----------
Aggregate net unrealized appreciation............. $ 1,623,187
-----------
-----------
The accompanying notes are an integral part of the financial statements.
27
<PAGE>
THE COUNTRYBASKETS(SM) INDEX FUND, INC.
US INDEX SERIES
SCHEDULE OF INVESTMENTS
OCTOBER 31, 1996
- --------------------------------------------------------------------------------
% OF
SECURITY DESCRIPTION SHARES VALUE NET ASSETS
- --------------------------------------------------------------------------------
General Electric Co........................ 4,998 $ 483,556 2.81%
Coca Cola Co............................... 7,641 385,870 2.24%
Exxon Corp................................. 3,759 333,141 1.94%
Intel Corp................................. 2,481 272,600 1.59%
Merck & Co. Inc............................ 3,667 271,816 1.58%
Microsoft Corp.*........................... 1,788 245,403 1.43%
Philip Morris Companies, Inc............... 2,544 235,638 1.37%
International Business Machines............ 1,633 210,657 1.23%
Procter & Gamble Co........................ 2,085 206,415 1.20%
Johnson & Johnson.......................... 4,035 198,724 1.16%
Wal Mart Stores Inc........................ 6,951 185,070 1.08%
AT & T Corp................................ 4,815 167,923 0.98%
Bristol Myers Squibb Co.................... 1,533 162,115 0.94%
Pfizer Inc................................. 1,917 158,632 0.92%
American International Group Inc........... 1,437 156,094 0.91%
Du Pont (E I) De Nemours & Co.............. 1,662 154,150 0.90%
Citicorp................................... 1,488 147,312 0.86%
Pepsico Inc................................ 4,806 142,378 0.83%
Mobil Corp................................. 1,194 139,399 0.81%
Hewlett Packard Co......................... 3,075 135,684 0.79%
Disney (Walt) Co........................... 2,049 134,978 0.79%
Chevron Corp............................... 1,974 129,790 0.76%
Berkshire Hathaway Inc.*................... 4 129,600 0.75%
Federal National Mortgage Association...... 3,306 129,347 0.75%
Abbott Laboratories........................ 2,430 123,019 0.72%
GTE Corp................................... 2,919 122,963 0.72%
Cisco Systems Inc.*........................ 1,986 122,884 0.71%
Bellsouth Corp............................. 3,012 122,739 0.71%
General Motors Corp........................ 2,247 121,057 0.70%
Lilly Eli & Co............................. 1,671 117,805 0.69%
Ford Motor Co.............................. 3,643 113,844 0.66%
Chase Manhattan Corp....................... 1,324 113,533 0.66%
American Home Products Corp................ 1,833 112,271 0.65%
Amoco Corp................................. 1,467 111,125 0.65%
BankAmerica Corp........................... 1,155 105,682 0.61%
Gillette Co................................ 1,338 100,015 0.58%
Minnesota Mining & Manufacturing Co........ 1,275 97,697 0.57%
Boeing Co.................................. 1,023 97,569 0.57%
McDonald's Corp............................ 2,103 93,321 0.54%
Ameritech Corp............................. 1,680 91,980 0.54%
Lucent Technologies Inc.................... 1,925 90,497 0.53%
SBC Communications Inc..................... 1,851 90,005 0.52%
Nationsbank Corp........................... 891 83,977 0.49%
Oracle Systems Corp. *..................... 1,977 83,652 0.49%
Eastman Kodak Co........................... 1,044 83,259 0.48%
Motorola Inc............................... 1,788 82,248 0.48%
Texaco Inc................................. 801 81,402 0.47%
Wells Fargo & Co........................... 302 80,672 0.47%
Chrysler Corp.............................. 2,379 79,994 0.47%
Bell Atlantic Corp......................... 1,320 79,530 0.46%
Home Depot Inc............................. 1,440 78,840 0.46%
Kimberly Clark Corp........................ 837 78,050 0.45%
Travelers Group Inc........................ 1,437 77,957 0.45%
Allstate Corp.............................. 1,359 76,274 0.44%
Schlumberger Ltd........................... 723 71,667 0.42%
Columbia/HCA Healthcare Corp............... 1,993 71,250 0.41%
American Express Co........................ 1,488 69,936 0.41%
Schering Plough Corp....................... 1,089 69,696 0.41%
Monsanto Co................................ 1,746 69,185 0.40%
Electronic Data Systems Corp. (new)........ 1,485 66,825 0.39%
Computer Associates International Inc...... 1,095 64,742 0.38%
Dow Chemical Co............................ 831 64,610 0.38%
Atlantic Richfield Co...................... 486 64,395 0.37%
Time Warner Inc............................ 1,716 63,930 0.37%
First Union Corp........................... 870 63,292 0.37%
Campbell Soup Co........................... 759 60,720 0.35%
Anheuser Busch Cos., Inc................... 1,572 60,522 0.35%
Emerson Electric Co........................ 675 60,075 0.35%
NYNEX Corp................................. 1,281 57,004 0.33%
Sears Roebuck & Co......................... 1,170 56,599 0.33%
Allied Signal Inc.......................... 858 56,199 0.33%
Compaq Computer Corp.*..................... 804 55,978 0.33%
Federal Home Loan Mortgage Corp............ 552 55,752 0.32%
Banc One Corp.............................. 1,290 54,664 0.32%
Sprint Corp................................ 1,389 54,518 0.32%
Pharmacia & Upjohn Inc..................... 1,509 54,324 0.32%
Lockheed Martin Corp....................... 603 54,044 0.31%
First Data Corp............................ 672 53,592 0.31%
Sara Lee Corp.............................. 1,461 51,865 0.30%
Warner Lambert Co.......................... 813 51,727 0.30%
MCI Communications Corp.................... 2,034 51,104 0.30%
Nike Inc................................... 864 50,868 0.30%
First Chicago NBD Corp..................... 981 50,031 0.29%
WMX Technologies Inc....................... 1,446 49,706 0.29%
Morgan (J P) & Co. Inc..................... 567 48,975 0.28%
Amgen Inc.*................................ 789 48,376 0.28%
United Technologies Corp................... 372 47,895 0.28%
Norwest Corp............................... 1,029 45,147 0.26%
Xerox Corp................................. 972 45,076 0.26%
Medtronic Inc.............................. 699 44,998 0.26%
Southern Co................................ 2,004 44,338 0.26%
Pacific Telesis Group...................... 1,299 44,166 0.26%
Kellogg Co................................. 675 42,862 0.25%
U.S. West Inc.............................. 1,410 42,829 0.25%
Fleet Financial Group Inc.................. 816 40,698 0.24%
Colgate Palmolive Co....................... 441 40,572 0.24%
28
<PAGE>
THE COUNTRYBASKETS(SM) INDEX FUND, INC.
US INDEX SERIES
SCHEDULE OF INVESTMENTS (CONTINUED)
OCTOBER 31, 1996
- --------------------------------------------------------------------------------
% OF
SECURITY DESCRIPTION SHARES VALUE NET ASSETS
- --------------------------------------------------------------------------------
Caterpillar Inc............................ 588 $ 40,351 0.23%
H.J. Heinz Co.............................. 1,116 39,618 0.23%
Airtouch Communications Inc.*.............. 1,491 38,952 0.23%
Merrill Lynch & Co. Inc.................... 543 38,146 0.22%
McDonnell Douglas Corp..................... 699 38,095 0.22%
Bank of New York Inc....................... 1,149 38,061 0.22%
International Paper Co..................... 888 37,962 0.22%
Conagra Inc................................ 756 37,705 0.22%
PNC Bank Corp.............................. 1,032 37,410 0.22%
General Re Corp............................ 252 37,107 0.22%
Automatic Data Processing Inc.............. 885 36,838 0.21%
Raytheon Co................................ 744 36,642 0.21%
Norfolk Southern Corp...................... 408 36,363 0.21%
Archer Daniels Midland Co. ................ 1,655 35,996 0.21%
Rockwell International Corp. .............. 654 35,970 0.21%
May Department Stores Co................... 753 35,673 0.21%
Penney (J.C.) Co., Inc..................... 675 35,437 0.21%
Burlington Northern Santa Fe .............. 429 35,339 0.21%
Enron Corp................................. 759 35,293 0.21%
CPC International Inc...................... 444 35,021 0.20%
Union Pacific Corp......................... 618 34,685 0.20%
Keycorp (new).............................. 732 34,130 0.20%
Baxter International Inc................... 819 34,091 0.20%
PPG Industries Inc......................... 597 34,029 0.20%
Sun Microsystems Inc.*..................... 552 33,672 0.20%
Deere & Co................................. 798 33,317 0.19%
3Com Corp.*................................ 492 33,272 0.19%
Phillips Petroleum Co...................... 792 32,472 0.19%
Aluminum Co. America....................... 549 32,185 0.19%
Suntrust Banks Inc......................... 687 32,031 0.19%
Gannett Inc................................ 420 31,868 0.19%
Boston Scientific Corp.*................... 581 31,592 0.18%
Viacom Inc.*............................... 966 31,516 0.18%
Dean Witter Discover & Co. ................ 528 31,086 0.18%
Duke Power Co.............................. 621 30,351 0.18%
Aetna Inc.................................. 453 30,294 0.18%
CUC International Inc.*.................... 1,236 30,282 0.18%
First Bank Systems Inc..................... 456 30,096 0.18%
Loews Corp................................. 363 29,993 0.17%
Pacific Gas & Electric Co.................. 1,275 29,963 0.17%
Boatmens Bancshares Inc.................... 491 29,828 0.17%
Cigna Corp................................. 228 29,754 0.17%
Dun & Bradstreet Corp...................... 513 29,690 0.17%
Bank of Boston Corp........................ 457 29,248 0.17%
Corestates Financial Corp.................. 594 28,883 0.17%
Weyerhaeuser Co............................ 624 28,626 0.17%
Mellon Bank Corp........................... 438 28,525 0.17%
American Brands Inc........................ 597 28,507 0.17%
Worldcom Inc.*............................. 1,164 28,373 0.17%
Walgreen Co................................ 747 28,199 0.16%
Wachovia Corp. (new)....................... 522 28,058 0.16%
Toys R Us Inc.*............................ 825 27,947 0.16%
Texas Utilities Co......................... 684 27,702 0.16%
Texas Instruments Inc...................... 573 27,576 0.16%
CSX Corp................................... 636 27,428 0.16%
General Mills Inc.......................... 477 27,249 0.16%
Unocal Corp................................ 741 27,139 0.16%
Safeway Inc.*.............................. 630 27,011 0.16%
Rhone Poulenc Rorer Inc.................... 402 26,984 0.16%
Corning Inc................................ 693 26,854 0.16%
Household International Inc. .............. 303 26,816 0.16%
Edison International....................... 1,356 26,781 0.16%
Albertsons Inc............................. 771 26,503 0.15%
National City Corp......................... 609 26,415 0.15%
Chubb Corp................................. 522 26,100 0.15%
FPL Group Inc.............................. 567 26,082 0.15%
Tenneco Inc................................ 525 25,988 0.15%
Pitney Bowes Inc........................... 465 25,982 0.15%
Carnival Corp.............................. 846 25,486 0.15%
MBNA Corp.................................. 675 25,481 0.15%
Gap Inc.................................... 876 25,404 0.15%
Mattel Inc................................. 837 24,168 0.14%
Morgan Stanley Group Inc................... 480 24,120 0.14%
Honeywell Inc.............................. 387 24,042 0.14%
Duracell International Inc................. 360 24,030 0.14%
Textron Inc................................ 270 23,963 0.14%
RJR Nabisco Holdings Corp. ................ 828 23,909 0.14%
Tele Communications Inc. (new)*............ 1,917 23,843 0.14%
Dell Computer Corp.*....................... 291 23,680 0.14%
Occidental Petroleum Corp.................. 960 23,520 0.14%
American Electric Power Inc. .............. 561 23,282 0.14%
Marsh & Mclennan Cos., Inc. ............... 222 23,116 0.13%
Hershey Foods Corp......................... 474 22,930 0.13%
Tyco Interest Ltd.......................... 462 22,927 0.13%
American General Corp...................... 615 22,909 0.13%
Tellabs Inc.*.............................. 267 22,728 0.13%
Avon Products Inc.......................... 417 22,622 0.13%
Illinois Tool Works Inc.................... 321 22,550 0.13%
Dayton Hudson Corp......................... 651 22,541 0.13%
Amp Inc.................................... 660 22,358 0.13%
U.S. West Inc.*............................ 1,428 22,313 0.13%
ITT Hartford Group Inc..................... 351 22,113 0.13%
Barnett Banks Inc.......................... 576 21,960 0.13%
Ralston Purina Co.......................... 324 21,425 0.12%
Conrail Inc................................ 225 21,403 0.12%
Wrigley (WM) Jr. Co........................ 354 21,329 0.12%
Westinghouse Electric Corp................. 1,245 21,321 0.12%
Marriot International Inc.................. 372 21,158 0.12%
Georgia Pacific Corp....................... 279 20,925 0.12%
Goodyear Tire & Rubber..................... 456 20,919 0.12%
Consolidated Edison Co. New York Inc....... 708 20,709 0.12%
Service Corp. International................ 708 20,178 0.12%
29
<PAGE>
THE COUNTRYBASKETS(SM) INDEX FUND, INC.
US INDEX SERIES
SCHEDULE OF INVESTMENTS (CONTINUED)
OCTOBER 31, 1996
- --------------------------------------------------------------------------------
% OF
SECURITY DESCRIPTION SHARES VALUE NET ASSETS
- --------------------------------------------------------------------------------
Air Products & Chemicals Inc............... 336 $ 20,160 0.12%
Bankers Trust New York Corp................ 237 20,027 0.12%
Public Service Enterprise Group............ 738 19,834 0.12%
Dominion Resources Inc..................... 525 19,819 0.12%
Federated Department Stores Inc.*.......... 600 19,800 0.12%
Comerica Inc............................... 369 19,603 0.11%
Halliburton Co............................. 345 19,536 0.11%
Entergy Corp............................... 687 19,236 0.11%
Genentech Inc.*............................ 357 19,233 0.11%
Freeport McMoran Copper & Gold............. 633 19,227 0.11%
Burlington Resources Inc................... 381 19,193 0.11%
USX Marathon Group......................... 873 19,097 0.11%
Sysco Corp................................. 561 19,074 0.11%
Delta Air Lines Inc........................ 269 19,065 0.11%
U.S. Healthcare Corp....................... 501 18,975 0.11%
Fifth Third Bancorp........................ 300 18,787 0.11%
Pacificorp................................. 885 18,696 0.11%
Seagate Technology*........................ 279 18,623 0.11%
Parametric Technology Corp.*............... 381 18,621 0.11%
Aon Corp................................... 321 18,538 0.11%
American Stores Co. (new).................. 447 18,495 0.11%
Houston Industries Inc..................... 798 18,254 0.11%
Dresser Industries Inc..................... 555 18,246 0.11%
TRW Inc.................................... 201 18,190 0.11%
Aflac Inc.................................. 453 18,177 0.11%
Lowes Cos., Inc............................ 450 18,169 0.11%
Union Carbide Corp......................... 426 18,158 0.11%
Alco Standard Corp......................... 387 17,947 0.10%
Crown Cork & Seal Inc...................... 369 17,712 0.10%
UST Inc.................................... 612 17,671 0.10%
Dover Corp................................. 342 17,570 0.10%
Hilton Hotels Corp......................... 576 17,496 0.10%
Morton International Inc................... 444 17,482 0.10%
Alltel Corp................................ 573 17,476 0.10%
Carolina Power & Light Co. ................ 483 17,448 0.10%
U.S. Bancorp (Oregon)...................... 435 17,400 0.10%
Clorox Co.................................. 159 17,351 0.10%
Franklin Resources Inc..................... 246 17,343 0.10%
Panenergy Corp............................. 450 17,325 0.10%
Pioneer Hawaii Bred International Inc...... 258 17,318 0.10%
Computer Sciences Corp.*................... 232 17,226 0.10%
Tribune Co. (new).......................... 210 17,167 0.10%
Student Loan Marketing Association......... 207 17,129 0.10%
Becton Dickinson & Co...................... 393 17,095 0.10%
Browning Ferris Industries Inc............. 645 16,931 0.10%
Unicom Corp................................ 651 16,926 0.10%
Peco Energy Co............................. 669 16,892 0.10%
Fluor Corp................................. 255 16,702 0.10%
Genuine Parts Co........................... 378 16,537 0.10%
Central & South West Corp. ................ 621 16,456 0.10%
Hercules Inc............................... 345 16,431 0.10%
Green Tree Financial Corp.................. 414 16,405 0.10%
State Street Boston Corp................... 258 16,351 0.10%
Kroger Co.*................................ 366 16,333 0.10%
Praxair Inc................................ 366 16,195 0.09%
Coca Cola Enterprises Inc.................. 378 16,112 0.09%
United States Robotics Corp. .............. 255 16,033 0.09%
Times Mirror Co. (new)..................... 345 15,956 0.09%
AMR Corp.*................................. 189 15,876 0.09%
E M C Corp.*............................... 603 15,829 0.09%
Cinergy Corp............................... 477 15,801 0.09%
Micron Technology Inc...................... 621 15,758 0.09%
Transamerica Corp.......................... 207 15,706 0.09%
Grace (W R) & Company Delaware*............ 294 15,582 0.09%
Winn Dixie Stores Inc...................... 465 15,519 0.09%
Williams Companies, Inc.................... 297 15,518 0.09%
ITT Corp. (new)*........................... 369 15,498 0.09%
Amerada Hess Corp.......................... 279 15,450 0.09%
Baker Hughes Inc........................... 432 15,390 0.09%
General Motors Corp........................ 288 15,372 0.09%
Limited Inc................................ 834 15,325 0.09%
Masco Corp................................. 486 15,248 0.09%
Lincoln National Corp...................... 312 15,132 0.09%
Consolidated Natural Gas Co. .............. 282 14,981 0.09%
Progressive Corp........................... 216 14,850 0.09%
Rohm & Haas Co............................. 207 14,775 0.09%
Salomon Inc................................ 327 14,756 0.09%
Equifax Inc................................ 486 14,458 0.08%
Safeco Corp................................ 381 14,383 0.08%
Applied Materials Inc.*.................... 543 14,356 0.08%
McGraw Hill Cos., Inc...................... 306 14,344 0.08%
Quaker Oats Co............................. 402 14,271 0.08%
St. Paul Companies, Inc.................... 261 14,192 0.08%
Eaton Corp................................. 237 14,161 0.08%
Donnelley (R R) & Sons Co. ................ 465 14,124 0.08%
Allegheny Teldyne Inc...................... 658 14,065 0.08%
International Flavours..................... 339 14,026 0.08%
Federal Express Corp.*..................... 174 14,007 0.08%
Providian Corp............................. 297 13,959 0.08%
Phelps Dodge Corp.......................... 222 13,958 0.08%
Ingersoll Rand Co.......................... 333 13,861 0.08%
UNUM Corp.................................. 219 13,770 0.08%
Coastal Corp............................... 318 13,674 0.08%
Newell Co.................................. 480 13,620 0.08%
Digital Equipment Corp.*................... 459 13,540 0.08%
Cabletron Systems Inc.*.................... 216 13,473 0.08%
Charles Schwab Corp........................ 528 13,200 0.08%
30
<PAGE>
THE COUNTRYBASKETS(SM) INDEX FUND, INC.
US INDEX SERIES
SCHEDULE OF INVESTMENTS (CONTINUED)
OCTOBER 31, 1996
- --------------------------------------------------------------------------------
% OF
SECURITY DESCRIPTION SHARES VALUE NET ASSETS
- --------------------------------------------------------------------------------
DTE Energy Co.............................. 438 $ 13,195 0.08%
General Dynamics Corp...................... 192 13,176 0.08%
Eastman Chemical Co........................ 249 13,135 0.08%
Equitable Cos., Inc........................ 555 13,042 0.08%
Cooper Industries Inc...................... 324 13,041 0.08%
Republic New York Corp..................... 171 13,039 0.08%
Thermo Electron Corp....................... 354 12,921 0.08%
Champion International Corp. .............. 297 12,919 0.08%
Sherwin Williams Co........................ 255 12,782 0.07%
Tenet Healthcare Corp...................... 612 12,775 0.07%
K Mart Corp.*.............................. 1,308 12,753 0.07%
V F Corp................................... 195 12,748 0.07%
ADC Telecommunications Inc.*............... 186 12,718 0.07%
Sonat Inc.................................. 258 12,706 0.07%
Nucor Corp................................. 267 12,649 0.07%
Newmont Mining Corp........................ 273 12,626 0.07%
Baltimore Gas & Electric Co. .............. 450 12,262 0.07%
Sunamerica Inc............................. 324 12,150 0.07%
Mirage Resorts Inc.*....................... 552 12,144 0.07%
Jefferson Pilot Corp....................... 213 12,114 0.07%
Union Electric Co.......................... 312 12,051 0.07%
Melville Corp.............................. 321 11,957 0.07%
MGIC Investment Corp....................... 174 11,941 0.07%
GPU Inc.................................... 363 11,934 0.07%
Price Costco Inc.*......................... 588 11,686 0.07%
Golden West Financial Corp................. 180 11,677 0.07%
Great Western Financial Corp............... 414 11,592 0.07%
Rubbermaid Inc............................. 498 11,578 0.07%
Ahmanson H F & Co.......................... 369 11,577 0.07%
Grainger (W W), Inc........................ 156 11,563 0.07%
Readers Digest Association Inc............. 324 11,542 0.07%
Anadarko Petroleum Corp.................... 180 11,452 0.07%
Scripps (E W) Co........................... 240 11,370 0.07%
Omnicom Group.............................. 228 11,343 0.07%
Willamette Industries Inc.................. 168 11,340 0.07%
Firstar Corp. (new)........................ 231 11,319 0.07%
Autozone Inc.*............................. 441 11,301 0.07%
Huntington Bancshares Inc.................. 470 11,280 0.07%
Chiron Corp.*.............................. 492 11,254 0.07%
Summit Bancorp............................. 275 11,241 0.07%
Western Atlas Inc.*........................ 162 11,239 0.07%
Northern Trust Corp........................ 162 11,218 0.07%
Interpublic Group Cos., Inc................ 231 11,203 0.07%
MBIA Inc................................... 126 11,167 0.06%
P P & L Resources Inc...................... 474 11,080 0.06%
Bay Networks Inc.*......................... 546 11,056 0.06%
Harcourt General Inc....................... 222 11,044 0.06%
Reynolds Metals Co......................... 195 10,969 0.06%
Molex Inc.................................. 303 10,908 0.06%
Southern National Corp..................... 315 10,907 0.06%
Dillard Department Stores Inc.............. 342 10,858 0.06%
Washington Post Co......................... 33 10,857 0.06%
Allegheny Power Systems Inc................ 363 10,845 0.06%
Comcast Corp............................... 735 10,841 0.06%
Knight Ridder Inc.......................... 288 10,764 0.06%
Novell Inc.*............................... 1,158 10,711 0.06%
Avery Dennison Corp........................ 162 10,672 0.06%
First America Bank Corp.................... 195 10,603 0.06%
Torchmark Inc.............................. 219 10,594 0.06%
Circus Circus Enterprises Inc.*............ 306 10,557 0.06%
Whirlpool Corp............................. 222 10,489 0.06%
LSI Logic Corp. *.......................... 393 10,414 0.06%
New York Times Co.......................... 288 10,404 0.06%
Synovus Financial Corp..................... 348 10,396 0.06%
Union Camp Corp............................ 213 10,384 0.06%
Hasbro Inc................................. 267 10,380 0.06%
IMC Global Inc............................. 276 10,350 0.06%
Great Lakes Chemical Corp. ................ 198 10,321 0.06%
Raychem Corp............................... 132 10,312 0.06%
Northrop Grumman Corp...................... 126 10,174 0.06%
Informix Corp.............................. 450 9,984 0.06%
Kerr Mcgee Corp............................ 159 9,977 0.06%
Case Corp.................................. 210 9,765 0.06%
Black & Decker Corp........................ 261 9,755 0.06%
Southwest Airlines Co...................... 432 9,720 0.06%
Florida Progress Corp...................... 291 9,712 0.06%
Mallinckrodt Inc. (new).................... 222 9,657 0.06%
Ohio Edison Co............................. 462 9,644 0.06%
Circuit City Stores Inc.................... 294 9,628 0.06%
Dow Jones & Co. Inc........................ 291 9,603 0.06%
Regions Financial Corp..................... 192 9,600 0.06%
Northern States Power Co................... 204 9,588 0.06%
Tupperware Corp............................ 186 9,556 0.06%
Mead Corp.................................. 168 9,534 0.06%
Ceridian Corp.*............................ 192 9,528 0.06%
Liz Claiborne.............................. 225 9,506 0.06%
Cincinnati Financial Corp.................. 165 9,487 0.06%
First USA Inc.............................. 165 9,487 0.06%
Beneficial Corp............................ 162 9,477 0.06%
American Re Corp........................... 144 9,270 0.05%
Marshall & Ilsley Corp..................... 288 9,252 0.05%
Wheelabrator Technologies Inc.............. 594 9,207 0.05%
Johnson Controls Inc....................... 126 9,198 0.05%
Office Depot Inc.*......................... 468 9,184 0.05%
Potomac Electric Power Co.................. 357 9,148 0.05%
Washington Mutual Inc...................... 216 9,126 0.05%
General Instrument Corp.*.................. 453 9,117 0.05%
Dana Corp.................................. 306 9,065 0.05%
31
<PAGE>
THE COUNTRYBASKETS(SM) INDEX FUND, INC.
US INDEX SERIES
SCHEDULE OF INVESTMENTS (CONTINUED)
OCTOBER 31, 1996
- --------------------------------------------------------------------------------
% OF
SECURITY DESCRIPTION SHARES VALUE NET ASSETS
- --------------------------------------------------------------------------------
Wisconsin Energy Corp...................... 333 $ 9,033 0.05%
Sigma Aldrich.............................. 153 8,989 0.05%
Bear Stearns Cos., Inc..................... 380 8,977 0.05%
Pall Corp.................................. 348 8,917 0.05%
Analog Devices Inc.*....................... 342 8,892 0.05%
Humana Inc.*............................... 486 8,869 0.05%
Countrywide Credit Industries Inc.......... 309 8,806 0.05%
Temple Inland Inc.......................... 171 8,764 0.05%
Nordstrom Inc.............................. 243 8,763 0.05%
Silicon Graphics Inc.*..................... 468 8,658 0.05%
Teco Energy Inc............................ 351 8,643 0.05%
TJX Cos., Inc. (new)....................... 216 8,640 0.05%
Rite Aid Corp.............................. 252 8,568 0.05%
Apple Computer............................. 372 8,556 0.05%
Westvaco Corp.............................. 300 8,550 0.05%
Northwest Airlines Corp.*.................. 258 8,546 0.05%
CMS Energy Corp............................ 270 8,539 0.05%
ITT Industries Inc......................... 366 8,509 0.05%
Reebok International Ltd................... 237 8,473 0.05%
Woolworth Corp.*........................... 402 8,442 0.05%
Parker Hannifin Corp....................... 222 8,408 0.05%
Amsouth BanCorp............................ 180 8,347 0.05%
Andrew Corp.*.............................. 171 8,336 0.05%
Lehman Brothers Holdings Inc............... 330 8,291 0.05%
Ashland Inc................................ 195 8,287 0.05%
Southtrust Corp............................ 249 8,248 0.05%
Pinnacle West Capital Corp................. 267 8,244 0.05%
De Luxe Corp............................... 252 8,221 0.05%
Star Banc Corp............................. 90 8,100 0.05%
James River Corp. of Virginia.............. 255 8,033 0.05%
Columbia Gas Systems Inc................... 132 8,019 0.05%
Freeport McMoran Copper & Gold............. 276 8,004 0.05%
FMC Corp.*................................. 108 7,952 0.05%
Engelhard Corp............................. 435 7,939 0.05%
Pacific Enterprises........................ 258 7,934 0.05%
Tandy Corp................................. 210 7,901 0.05%
Enova Corp................................. 351 7,898 0.05%
Hillenbrand Industries Inc................. 213 7,881 0.05%
Sundstrand Corp............................ 195 7,849 0.05%
Block H & R Inc............................ 315 7,796 0.05%
Diebold Inc................................ 135 7,763 0.05%
Whitman Corp............................... 318 7,712 0.04%
Adobe Systems Inc.......................... 222 7,687 0.04%
Stanley Works.............................. 267 7,543 0.04%
UAL Corp.*................................. 159 7,533 0.04%
Harris Corp................................ 120 7,515 0.04%
Atmel Corp.*............................... 294 7,460 0.04%
Advanced Micro Devices Inc. ............... 420 7,455 0.04%
Linear Technology Corp..................... 222 7,437 0.04%
Greenpoint Financial Corp.................. 159 7,394 0.04%
Viacom Inc.*............................... 225 7,341 0.04%
First Tennessee National Corp.............. 201 7,311 0.04%
Nalco Chemical Co.......................... 201 7,311 0.04%
Manor Care Inc............................. 186 7,301 0.04%
Sonoco Products Co......................... 273 7,269 0.04%
Armstrong World Industries Inc............. 108 7,209 0.04%
Paine Webber Group Inc..................... 306 7,191 0.04%
Pennzoil Co................................ 141 7,191 0.04%
Dole Food Inc.............................. 183 7,137 0.04%
St. Jude Medical Inc.*..................... 180 7,110 0.04%
Perkin Elmer Corp.......................... 132 7,079 0.04%
Ecolab Inc................................. 192 7,008 0.04%
Leggett & Platt Inc........................ 234 6,991 0.04%
Ryder Systems Inc.......................... 234 6,962 0.04%
Xilinx Inc.*............................... 210 6,878 0.04%
Mckesson Corp. (new)....................... 138 6,866 0.04%
Goodrich (B F) Co.......................... 162 6,865 0.04%
Tyson Foods Inc............................ 231 6,815 0.04%
Old Kent Financial Corp.................... 151 6,814 0.04%
DQE........................................ 237 6,814 0.04%
Maytag Corp................................ 342 6,797 0.04%
USX United States Steel Group.............. 249 6,785 0.04%
Consolidated Papers Inc.................... 135 6,767 0.04%
Ambac Inc.................................. 108 6,750 0.04%
Louisiana Pacific Corp..................... 321 6,701 0.04%
American Greetings Corp.................... 228 6,683 0.04%
New England Electric Systems............... 198 6,683 0.04%
Avnet Inc.................................. 132 6,650 0.04%
Long Island Lighting Co.................... 366 6,634 0.04%
Brunswick Corp............................. 282 6,627 0.04%
First Security Corp........................ 225 6,609 0.04%
Vulcan Materials Co........................ 108 6,561 0.04%
Loctite Corp............................... 111 6,507 0.04%
Meditrust.................................. 180 6,480 0.04%
National Semiconductor Corp.*.............. 336 6,468 0.04%
Olin Corp.................................. 150 6,375 0.04%
Food Lion Inc.............................. 744 6,371 0.04%
Paccar Inc................................. 114 6,356 0.04%
Kansas City Southern Industries Inc........ 135 6,345 0.04%
Litton Industries Inc.*.................... 141 6,327 0.04%
Cyprus Amax Minerals Co.................... 279 6,312 0.04%
Illinova Corp.............................. 231 6,295 0.04%
Mercantile BanCorp. Inc.................... 126 6,253 0.04%
St. Joe Paper Co........................... 93 6,231 0.04%
PMI Group Inc.............................. 108 6,170 0.04%
Capital One Financial Corp................. 198 6,163 0.04%
32
<PAGE>
THE COUNTRYBASKETS(SM) INDEX FUND, INC.
US INDEX SERIES
SCHEDULE OF INVESTMENTS (CONTINUED)
OCTOBER 31, 1996
- --------------------------------------------------------------------------------
% OF
SECURITY DESCRIPTION SHARES VALUE NET ASSETS
- --------------------------------------------------------------------------------
Supervalu Inc.............................. 207 $ 6,158 0.04%
Battle Mountain Gold Co.................... 805 6,138 0.04%
Food Lion Inc.............................. 732 6,131 0.04%
Provident Cos., Inc........................ 165 6,126 0.04%
Illinois Central Corp...................... 189 6,119 0.04%
Mercury Finance Co......................... 528 6,072 0.04%
Oryx Energy Co.*........................... 315 6,064 0.04%
Owens Corning.............................. 156 6,045 0.04%
USF& G Corp................................ 318 6,042 0.04%
Unitrin Inc................................ 117 6,026 0.04%
Arrow Electronics Inc.*.................... 126 6,001 0.03%
Echlin Inc................................. 183 5,970 0.03%
Snap On Inc................................ 184 5,911 0.03%
Crestar Financial Corp..................... 96 5,904 0.03%
American Power Conversion Corp.*........... 276 5,900 0.03%
Ivax Corp.................................. 357 5,891 0.03%
Lubrizol Corp.............................. 198 5,891 0.03%
Reliastar Financial Corp................... 111 5,883 0.03%
Bausch & Lomb Inc.......................... 174 5,873 0.03%
Host Marriott Corp......................... 378 5,812 0.03%
Worthington Industries..................... 273 5,665 0.03%
A G Edwards Inc............................ 189 5,646 0.03%
Louisiana Land & Exploration Co............ 99 5,631 0.03%
Polaroid Corp.............................. 138 5,606 0.03%
Homestake Mining Co........................ 390 5,558 0.03%
Harnischfeger Industries Inc. ............. 138 5,520 0.03%
Hubbell Inc................................ 135 5,518 0.03%
General Signal Corp........................ 135 5,501 0.03%
Citizens Utilities Co...................... 496 5,394 0.03%
American Financial Group Inc............... 150 5,381 0.03%
TIG Holdings Inc........................... 186 5,371 0.03%
Mercantile Stores Inc...................... 108 5,360 0.03%
Mylan Labs Inc............................. 354 5,354 0.03%
Old Republic International Corp............ 216 5,346 0.03%
Nicor Inc.................................. 153 5,336 0.03%
Brown Forman Corp.......................... 123 5,320 0.03%
American National Insurance Co............. 81 5,306 0.03%
Noram Energy Corp.......................... 342 5,258 0.03%
Allmerica Property & Casualty Companies,
Inc...................................... 189 5,221 0.03%
Witco Corp................................. 168 5,208 0.03%
Harrahs Entertainment Inc.*................ 309 5,176 0.03%
Sun Inc.................................... 231 5,169 0.03%
Cabot Corp................................. 213 5,139 0.03%
Cummins Engine Inc......................... 123 5,120 0.03%
Signet Banking Corp........................ 177 5,111 0.03%
National Service Industries Inc............ 147 5,072 0.03%
Bancorp Hawaii Inc......................... 126 4,993 0.03%
Transatlantic Holdings Inc................. 69 4,968 0.03%
Tri Continental Corp....................... 195 4,899 0.03%
Wendys International Inc................... 237 4,888 0.03%
Shaw Industries Inc........................ 414 4,865 0.03%
Security Capital Pacific Trust............. 216 4,860 0.03%
Molex Inc.................................. 150 4,856 0.03%
Millipore Corp............................. 138 4,830 0.03%
DSC Communications Corp.*.................. 342 4,745 0.03%
Central Fidelity Banks Inc................. 186 4,720 0.03%
Santa Fe Pacific Gold Corp................. 396 4,703 0.03%
Stone Container Corp....................... 303 4,621 0.03%
Tambrands Inc.............................. 108 4,604 0.03%
Simon De Bartolo Group Inc................. 174 4,589 0.03%
First Virginia Banks Inc................... 102 4,565 0.03%
Tandem Computers Inc.*..................... 354 4,469 0.03%
Bowater Inc................................ 126 4,457 0.03%
Enserch Corp............................... 204 4,386 0.03%
Boise Cascade Corp......................... 141 4,371 0.03%
Trinity Industries Inc..................... 126 4,363 0.03%
Centerior Energy Corp...................... 447 4,358 0.03%
Leucadia National Corp..................... 183 4,323 0.03%
Puget Sound Power & Light Co............... 195 4,314 0.03%
Brooklyn Union Gas Co...................... 147 4,263 0.02%
Weis Markets Inc........................... 135 4,134 0.02%
Bandag Inc................................. 87 4,133 0.02%
Equity Income Fund......................... 54 4,124 0.02%
Tektronix Inc.............................. 105 4,108 0.02%
Viad Corp.................................. 282 4,089 0.02%
Northeast Utilities........................ 378 4,064 0.02%
Pacificare Health Systems Inc.*............ 57 4,004 0.02%
Darden Restaurants Inc..................... 477 3,995 0.02%
Teradyne Inc.*............................. 249 3,953 0.02%
King World Productions Inc.* .............. 108 3,888 0.02%
Premark International Inc.................. 183 3,820 0.02%
Foster Wheeler Corp........................ 93 3,813 0.02%
Belo (A H) Corp............................ 96 3,744 0.02%
Rouse Co................................... 147 3,730 0.02%
Niagara Mohawk Power Corp.................. 435 3,698 0.02%
Delmarva Power & Light Co.................. 186 3,697 0.02%
Sensormatic Electrics Corp................. 225 3,684 0.02%
Amdahl Corp.*.............................. 357 3,659 0.02%
Beverly Enterprises Inc.*.................. 294 3,638 0.02%
KLA Instruments Corp.*..................... 150 3,638 0.02%
Peoples Energy Corp........................ 102 3,596 0.02%
Pittston Brinks Group...................... 126 3,591 0.02%
Brown Forman Corp.......................... 84 3,581 0.02%
Great Atlantic & Pacific Tea Inc........... 117 3,510 0.02%
33
<PAGE>
THE COUNTRYBASKETS(SM) INDEX FUND, INC.
US INDEX SERIES
SCHEDULE OF INVESTMENTS (CONTINUED)
OCTOBER 31, 1996
- --------------------------------------------------------------------------------
% OF
SECURITY DESCRIPTION SHARES VALUE NET ASSETS
- --------------------------------------------------------------------------------
Russell Corp............................... 123 $ 3,490 0.02%
Briggs & Stratton Corp..................... 87 3,480 0.02%
Shared Medical System...................... 72 3,474 0.02%
Chris Craft Industries Inc.*............... 87 3,426 0.02%
Alexander & Baldwin Inc.................... 138 3,398 0.02%
Scientific Atlanta Inc..................... 234 3,393 0.02%
Comsat Corp................................ 141 3,314 0.02%
Asarco Inc................................. 126 3,308 0.02%
USLIFE Corp................................ 105 3,281 0.02%
Advanta Corp............................... 69 3,226 0.02%
Unisys Corp.*.............................. 513 3,206 0.02%
USAir Group Inc.*.......................... 183 3,180 0.02%
Consolidated Freightways Inc............... 129 3,096 0.02%
EG & G Inc................................. 174 3,067 0.02%
Washington Gas Light Co.................... 132 2,954 0.02%
Ethyl Corp................................. 357 2,945 0.02%
McDermott International Inc. .............. 162 2,876 0.02%
Cypress Semiconductor Corp.*............... 267 2,870 0.02%
Trinova Corp............................... 87 2,860 0.02%
Autodesk Inc............................... 123 2,814 0.02%
Bethlehem Steel Corp.*..................... 345 2,803 0.02%
Safety Kleen Corp.......................... 177 2,766 0.02%
Pacificare Health Systems Inc.*............ 39 2,623 0.02%
Advanta Corp............................... 54 2,609 0.02%
Gaylord Entertainment Co................... 119 2,350 0.01%
Inland Steel Industries Inc................ 144 2,322 0.01%
Arco Chemical Co........................... 48 2,292 0.01%
Citizens Utilities Co...................... 207 2,277 0.01%
Ball Corp.................................. 93 2,244 0.01%
Freeport McMoran Inc....................... 69 2,199 0.01%
Navistar International Corp. Inc.*......... 219 2,026 0.01%
Caliber Systems Inc........................ 120 2,025 0.01%
Alexander & Alexander Services............. 132 2,013 0.01%
Fleming Companies, Inc..................... 111 1,929 0.01%
Comcast Corp............................... 120 1,725 0.01%
Cincinnati Milacron Inc.................... 87 1,664 0.01%
Mentor Graphics Corp.*..................... 183 1,556 0.01%
NL Industries Inc.......................... 156 1,326 0.01%
Armco Inc.*................................ 321 1,204 0.01%
Imation Corp.*............................. 1 16 0.00%
Allegiance Corp.*.......................... 1 15 0.00%
Footstar Inc.*............................. 0 9 0.00%
----------- -----------
TOTAL INVESTMENTS, AT VALUE
(Cost $15,818,622)....................... 17,049,341 99.19%
OTHER ASSETS LESS LIABILITIES 139,798 0.81%
----------- -----------
NET ASSETS................................. $17,189,139 100.00%
----------- -----------
----------- -----------
* Non-income producing securities.
The accompanying notes are an integral part of the financial statements.
34
<PAGE>
THE COUNTRYBASKETS(SM) INDEX FUND, INC.
US INDEX SERIES
SCHEDULE OF INVESTMENTS BY MARKET SECTOR
OCTOBER 31, 1996
- --------------------------------------------------------------------------------
% OF
INDUSTRY VALUE INVESTMENTS
- --------------------------------------------------------------------------------
Health and personal care.......................... $ 1,869,711 11.0%
Utilities......................................... 1,748,956 10.3%
Commercial and other banks........................ 1,553,473 9.1%
Oil............................................... 1,079,670 6.3%
Computer and communications and office
equipment....................................... 966,607 5.7%
Beverage industries and tobacco manufacturing..... 919,508 5.4%
Retail trade...................................... 797,421 4.7%
Food and grocery products......................... 714,310 4.2%
Business services and computer software........... 686,232 4.0%
Electrical equipment.............................. 652,156 3.8%
Financial institutions and services............... 629,112 3.7%
Chemicals......................................... 569,634 3.3%
Insurance--multiline and property and casualty.... 563,491 3.3%
Electronics and instrumentation................... 562,357 3.3%
Entertainment and leisure toys.................... 482,898 2.8%
Media............................................. 387,598 2.3%
Aerospace and defense composite................... 315,219 1.8%
Automobiles....................................... 314,895 1.8%
Forestry and paper products....................... 293,450 1.7%
Diversified industrials........................... 265,040 1.6%
Transportation and storage........................ 264,680 1.6%
Machinery and engineering services................ 228,136 1.3%
Diversified holding companies..................... 183,711 1.1%
Non-oil energy, and equipment services............ 136,077 0.8%
Diversified consumer goods and services........... 134,992 0.8%
Insurance--life and agents and brokers............ 134,767 0.8%
Auto components................................... 144,638 0.7%
Mining, metals and minerals....................... 98,160 0.6%
Textiles and wearing apparel...................... 85,085 0.5%
Household durables and appliances................. 67,716 0.4%
Precious metals and minerals...................... 58,455 0.3%
Construction and building materials............... 46,669 0.3%
Wholesale trade................................... 45,713 0.3%
Fabricated metal products......................... 39,567 0.2%
Real estate....................................... 19,659 0.1%
Heavy engineering and shipbuilding................ 19,578 0.1%
----------- ------------
TOTAL INVESTMENTS, AT VALUE
(Cost $15,818,622).............................. $17,049,341 100.0%
----------- ------------
----------- ------------
Cost of investments for Federal income tax
purposes........................................ $15,818,647
-----------
-----------
Aggregate gross unrealized appreciation........... $ 1,833,217
Aggregate gross unrealized depreciation........... (602,523)
-----------
Aggregate net unrealized appreciation............. $ 1,230,694
-----------
-----------
The accompanying notes are an integral part of the financial statements.
35
<PAGE>
THE COUNTRYBASKETS(SM) INDEX FUND, INC.
STATEMENTS OF ASSETS AND LIABILITIES
OCTOBER 31, 1996
AUSTRALIA FRANCE
INDEX INDEX
SERIES SERIES
----------- -----------
ASSETS
Investments, at value......................... $13,475,700 $56,606,644
Foreign currency.............................. 135,859 95,750
Cash.......................................... 18,044 7,480
Interest receivable........................... 1,608 5,341
Dividends receivable.......................... 53,271 4,349
Foreign withholding tax reclaim receivable.... 0 234,031
Deferred organization costs................... 218,104 218,512
Prepaid expenses.............................. 1,102 3,616
Receivable from Adviser for expense
reimbursement.............................. 912 0
----------- -----------
TOTAL ASSETS............................... 13,904,600 57,175,723
----------- -----------
LIABILITIES
Payable upon return of securities loaned...... 2,908,388 12,279,368
Distribution fees payable..................... 3,212 18,222
Organization costs payable.................... 0 93,953
Accounts payable and accrued expenses......... 196,999 210,266
----------- -----------
TOTAL LIABILITIES.......................... 3,108,599 12,601,809
----------- -----------
NET ASSETS................................. $10,796,001 $44,573,914
----------- -----------
----------- -----------
NET ASSETS CONSIST OF:
Paid-in capital, $.001 par value (Authorized
200,000,000 shares per Series)............. $ 9,795,011 $41,715,353
Undistributed net investment income........... 278,856 641,380
Undistributed and accumulated net realized
gain (loss) on investments and foreign
currency................................... (379) 195,247
Net unrealized appreciation (depreciation) of
investments and foreign currency........... 722,513 2,021,934
----------- -----------
NET ASSETS................................. $10,796,001 $44,573,914
----------- -----------
----------- -----------
Shares outstanding at end of period........... 500,584 1,100,305
Net asset value, offering and redemption price
per share.................................. $ 21.57 $ 40.51
Cost of investments........................... $12,753,444 $54,588,550
Cost of foreign currency...................... $ 135,680 $ 94,799
The accompanying notes are an integral part of the financial statements.
36
<PAGE>
<TABLE>
<CAPTION>
SOUTH
GERMANY HONG KONG ITALY JAPAN AFRICA
INDEX INDEX INDEX INDEX INDEX
SERIES SERIES SERIES SERIES SERIES
----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C>
ASSETS
Investments, at value....................... $22,647,368 $16,078,166 $42,027,766 $76,289,353 $15,739,045
Foreign currency............................ 153,218 129,155 178,245 338,153 122,884
Cash........................................ 13,877 40,786 19,205 17,272 31,859
Interest receivable......................... 541 823 4,025 3,848 0
Dividends receivable........................ 0 69,139 0 213,687 35,628
Foreign withholding tax reclaim receivable.. 39,080 0 0 0 0
Deferred organization costs................. 217,697 218,104 218,512 217,696 219,055
Prepaid expenses............................ 1,854 2,497 2,983 6,776 1,519
Receivable from Adviser for expense
reimbursement............................ 0 0 0 0 0
----------- ----------- ----------- ----------- -----------
TOTAL ASSETS............................. 23,073,635 16,538,670 42,450,736 77,086,785 16,149,990
----------- ----------- ----------- ----------- -----------
LIABILITIES
Payable upon return of securities loaned.... 1,099,739 226,380 10,179,669 6,978,725 0
Distribution fees payable................... 7,929 9,709 14,003 35,486 5,510
Organization costs payable.................. 34,399 51,372 67,883 166,321 22,679
Accounts payable and accrued expenses....... 200,477 207,991 204,301 278,313 195,687
----------- ----------- ----------- ----------- -----------
TOTAL LIABILITIES........................ 1,342,544 495,452 10,465,856 7,458,845 223,876
----------- ----------- ----------- ----------- -----------
NET ASSETS............................... $21,731,091 $16,043,218 $31,984,880 $69,627,940 $15,926,114
----------- ----------- ----------- ----------- -----------
----------- ----------- ----------- ----------- -----------
NET ASSETS CONSIST OF:
Paid-in capital, $.001 par value (Authorized
200,000,000 shares per Series)........... $20,814,513 $14,343,271 $29,562,377 $75,983,580 $18,141,750
Undistributed net investment income......... 158,608 590,807 475,728 0 133,106
Undistributed and accumulated net realized
gain (loss) on investments and foreign
currency................................. 5,435 12,694 273,922 87,544 (15,281)
Net unrealized appreciation (depreciation) of
investments and foreign currency......... 752,535 1,096,446 1,672,853 (6,443,184) (2,333,461)
----------- ----------- ----------- ----------- -----------
NET ASSETS............................... $21,731,091 $16,043,218 $31,984,880 $69,627,940 $15,926,114
----------- ----------- ----------- ----------- -----------
----------- ----------- ----------- ----------- -----------
Shares outstanding at end of period......... 600,331 500,394 1,200,467 2,000,302 900,571
Net asset value, offering and redemption
price per share.......................... $ 36.20 $ 32.06 $ 26.64 $ 34.81 $ 17.68
Cost of investments......................... $21,896,281 $14,981,708 $40,354,848 $82,722,579 $18,069,789
Cost of foreign currency.................... $ 152,199 $ 129,164 $ 178,310 $ 342,290 $ 123,073
</TABLE>
37
<PAGE>
THE COUNTRYBASKETS(SM) INDEX FUND, INC.
STATEMENTS OF ASSETS AND LIABILITIES
OCTOBER 31, 1996
UK US
INDEX INDEX
SERIES SERIES
------------ ------------
ASSETS
Investments, at value......................... $ 13,257,922 $ 17,049,341
Foreign currency.............................. 57,489 0
Cash.......................................... 15,366 163,855
Interest receivable........................... 195 0
Dividends receivable.......................... 74,238 24,632
Foreign withholding tax reclaim receivable.... 16,972 0
Deferred organization costs................... 218,240 217,425
Prepaid expenses.............................. 1,095 2,388
Receivable from Adviser for expense
reimbursement.............................. 10,794 0
------------ ------------
TOTAL ASSETS............................... 13,652,311 17,457,641
------------ ------------
LIABILITIES
Payable upon return of securities loaned...... 0 0
Distribution fees payable..................... 3,542 9,476
Organization costs payable.................... 0 43,213
Accounts payable and accrued expenses......... 213,668 215,813
------------ ------------
TOTAL LIABILITIES.......................... 217,210 268,502
------------ ------------
NET ASSETS................................. $ 13,435,101 $ 17,189,139
------------ ------------
------------ ------------
NET ASSETS CONSIST OF:
Paid-in capital, $.001 par value (Authorized
200,000,000 shares per Series)............. $ 11,539,203 $ 15,873,881
Undistributed net investment income........... 213,332 65,354
Undistributed net realized gain on investments
and foreign currency....................... 36,498 19,185
Net unrealized appreciation of investments and
foreign currency........................... 1,646,068 1,230,719
------------ ------------
NET ASSETS................................. $ 13,435,101 $ 17,189,139
------------ ------------
------------ ------------
Shares outstanding at end of period........... 300,299 300,216
Net asset value, offering and redemption price
per share.................................. $ 44.74 $ 57.26
Cost of investments........................... $ 11,617,142 $ 15,818,622
Cost of foreign currency...................... $ 55,593 $ 0
The accompanying notes are an integral part of the financial statements.
38
<PAGE>
THE COUNTRYBASKETS(SM) INDEX FUND, INC.
STATEMENTS OF OPERATIONS
FOR THE PERIOD FROM COMMENCEMENT OF OPERATIONS TO OCTOBER 31, 1996
<TABLE>
<CAPTION>
AUSTRALIA FRANCE
INDEX INDEX
SERIES SERIES
---------- ----------
(3/25/96 - (3/28/96 -
10/31/96) 10/31/96)
<S> <C> <C>
INVESTMENT INCOME
Dividend income.................................... $ 352,753 $ 976,642
Less: foreign withholding taxes.................... (6,218) (122,817)
---------- ----------
Net dividend income............................. 346,535 853,825
Interest income.................................... 1,394 823
Interest income from securities lending............ 6,067 32,452
---------- ----------
TOTAL INCOME.................................... 353,996 887,100
---------- ----------
EXPENSES
Investment management fees......................... 24,739 84,540
Distribution fees.................................. 18,594 59,633
Administration fees................................ 63,046 62,186
Custody and accounting fees........................ 62,462 63,510
Transfer agent fees................................ 26,369 26,010
Legal fees......................................... 28,521 28,520
Audit fees......................................... 18,500 26,500
Directors' fees and expenses....................... 6,297 6,297
Reports to shareholders............................ 20,842 20,842
Registration fees.................................. 3,227 12,878
NYSE listing fees.................................. 11,319 17,303
Amortization of organization costs................. 29,896 29,488
Other expenses..................................... 18,441 22,779
---------- ----------
TOTAL EXPENSES.................................. 332,253 460,486
Administration fees waived by Administrator........ (10,316) (9,457)
Investment management fees waived by Adviser....... (24,739) (84,540)
Expenses borne by Adviser.......................... (222,822) (127,957)
---------- ----------
NET EXPENSES.................................... 74,376 238,532
---------- ----------
NET INVESTMENT INCOME........................... 279,620 648,568
---------- ----------
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS AND FOREIGN CURRENCY
Net realized gain (loss) on:
Investments........................................ 22,714 295,487
Foreign currency transactions...................... (764) (7,188)
Net change in unrealized appreciation/depreciation
on:
Investments........................................ 722,256 2,018,094
Foreign currency translation....................... 257 3,840
---------- ----------
NET REALIZED AND UNREALIZED GAIN ON
INVESTMENTS AND FOREIGN CURRENCY.............. 744,463 2,310,233
---------- ----------
NET INCREASE IN NET ASSETS RESULTING FROM
OPERATIONS......................................... $1,024,083 $2,958,801
---------- ----------
---------- ----------
</TABLE>
The accompanying notes are an integral part of the financial statements.
39
<PAGE>
THE COUNTRYBASKETS(SM) INDEX FUND, INC.
STATEMENTS OF OPERATIONS
FOR THE PERIOD FROM COMMENCEMENT OF OPERATIONS TO OCTOBER 31, 1996
<TABLE>
<CAPTION>
GERMANY HONG KONG
INDEX INDEX
SERIES SERIES
--------- ----------
(3/22/96 - (3/25/96 -
10/31/96) 10/31/96)
<S> <C> <C>
INVESTMENT INCOME
Dividend income..................................... $ 315,009 $ 750,018
Less: foreign withholding taxes..................... (31,501) 0
--------- ----------
Net dividend income.............................. 283,508 750,018
Interest income..................................... 369 294
Interest income from securities lending............. 2,320 3,817
--------- ----------
TOTAL INCOME..................................... 286,197 754,129
--------- ----------
EXPENSES
Investment management fees.......................... 39,231 74,908
Distribution fees................................... 31,919 40,767
Administration fees................................. 63,905 63,045
Custody and accounting fees......................... 63,030 72,974
Transfer agent fees................................. 26,729 26,369
Legal fees.......................................... 28,521 28,521
Audit fees.......................................... 18,500 18,500
Directors' fees and expenses........................ 6,297 6,297
Reports to shareholders............................. 20,842 20,842
Registration fees................................... 6,571 4,501
NYSE listing fees................................... 9,849 11,316
Amortization of organization costs.................. 30,303 29,896
Other expenses...................................... 19,810 20,897
--------- ----------
TOTAL EXPENSES................................... 365,507 418,833
Administration fees waived by Administrator......... (11,176) (10,316)
Investment management fees waived by Adviser........ (39,231) (74,908)
Expenses borne by Adviser........................... (187,511) (170,538)
--------- ----------
NET EXPENSES..................................... 127,589 163,071
--------- ----------
NET INVESTMENT INCOME............................ 158,608 591,058
--------- ----------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND
FOREIGN CURRENCY
Net realized gain (loss) on:
Investments......................................... 4,581 374,442
Foreign currency transactions....................... 854 (251)
Net change in unrealized appreciation/depreciation on:
Investments......................................... 751,087 1,096,458
Foreign currency translation........................ 1,448 (12)
--------- ----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS AND FOREIGN CURRENCY............... 757,970 1,470,637
--------- ----------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS.......................................... $ 916,578 $2,061,695
--------- ----------
--------- ----------
</TABLE>
The accompanying notes are an integral part of the financial statements.
40
<PAGE>
<TABLE>
<CAPTION>
SOUTH
ITALY JAPAN AFRICA UK US
INDEX INDEX INDEX INDEX INDEX
SERIES SERIES SERIES SERIES SERIES
---------- ----------- ---------- ---------- ---------
(3/28/96 (3/22/96 - (4/1/96 - (3/26/96 - (3/20/96 -
10/31/96) 10/31/96) 10/31/96) 10/31/96) 10/31/96)
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME
Dividend income.................................... $ 755,098 $ 536,079 $ 245,526 $333,663 $349,538
Less: foreign withholding taxes.................... (109,766) (80,413) 0 (48,243) 0
---------- ----------- ----------- ---------- ----------
Net dividend income............................. 645,332 455,666 245,526 285,420 349,538
Interest income.................................... 3,523 0 0 1,283 0
Interest income from securities lending............ 25,815 16,787 0 0 0
---------- ----------- ----------- ---------- ----------
TOTAL INCOME.................................... 674,670 472,453 245,526 286,703 349,538
---------- ----------- ----------- ---------- ----------
EXPENSES
Investment management fees......................... 69,272 146,763 43,588 22,011 33,415
Distribution fees.................................. 49,121 116,707 24,216 18,343 41,768
Administration fees................................ 62,186 63,905 61,039 62,759 64,470
Custody and accounting fees........................ 61,227 83,618 60,249 68,414 83,966
Transfer agent fees................................ 26,010 26,729 25,530 26,249 26,969
Legal fees......................................... 28,521 28,521 28,521 28,521 28,521
Audit fees......................................... 26,500 36,500 18,500 18,500 18,500
Directors' fees and expenses....................... 6,297 6,297 6,297 6,297 6,297
Reports to shareholders............................ 20,842 20,842 20,842 20,842 20,842
Registration fees.................................. 9,222 23,289 5,761 3,761 4,982
NYSE listing fees.................................. 18,874 68,289 5,414 14,238 9,847
Amortization of organization costs................. 29,488 30,304 28,945 29,760 30,575
Other expenses..................................... 21,681 28,590 19,090 18,421 20,801
---------- ----------- ----------- ---------- ----------
TOTAL EXPENSES.................................. 429,241 680,354 347,992 338,116 390,953
Administration fees waived by Administrator........ (9,457) (11,176) (8,310) (10,030) (11,742)
Investment management fees waived by Adviser....... (69,272) (146,763) (43,588) (22,011) (33,415)
Expenses borne by Adviser.......................... (154,027) (55,587) (199,231) (232,704) (178,696)
---------- ----------- ----------- ---------- ----------
NET EXPENSES.................................... 196,485 466,828 96,863 73,371 167,100
---------- ----------- ----------- ---------- ----------
NET INVESTMENT INCOME........................... 478,185 5,625 148,663 213,332 182,438
---------- ----------- ----------- ---------- ----------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
AND FOREIGN CURRENCY
Net realized gain (loss) on:
Investments........................................ 273,922 100,861 (15,281) 30,567 321,969
Foreign currency transactions...................... (2,457) (18,942) (15,557) 5,931 0
Net change in unrealized appreciation/depreciation on:
Investments........................................ 1,672,918 (6,433,226) (2,330,744) 1,640,780 1,230,719
Foreign currency translation....................... (65) (9,958) (2,717) 5,288 0
---------- ----------- ----------- ---------- ----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS AND FOREIGN CURRENCY.............. 1,944,318 (6,361,265 ) (2,364,299 ) 1,682,566 1,552,688
---------- ----------- ----------- ---------- ----------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS......................................... $2,422,503 $(6,355,640) $(2,215,636) $1,895,898 $1,735,126
---------- ----------- ----------- ---------- ----------
---------- ----------- ----------- ---------- ----------
</TABLE>
41
<PAGE>
THE COUNTRYBASKETS(SM) INDEX FUND, INC.
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE PERIOD FROM COMMENCEMENT OF OPERATIONS TO OCTOBER 31, 1996
<TABLE>
<CAPTION>
AUSTRALIA FRANCE
INDEX INDEX
SERIES SERIES
--------------------- ---------------------
<S> <C> <C>
(3/25/96 - 10/31/96) (3/28/96 - 10/31/96)
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income........................ $ 279,620 $ 648,568
Net realized gain (loss) on:
Investments................................ 22,714 295,487
Foreign currency transactions.............. (764) (7,188)
Net change in unrealized
appreciation/depreciation on:
Investments................................ 722,256 2,018,094
Foreign currency translation............... 257 3,840
--------------------- ---------------------
Net increase (decrease) in net assets
resulting from operations.................. 1,024,083 2,958,801
--------------------- ---------------------
Dividends and distributions to shareholders
from:
Net investment income........................ 0 0
--------------------- ---------------------
Capital share transactions (1):
Net proceeds from sale of shares............. 13,772,077 49,252,505
Net cost of redemptions...................... (4,011,646) (7,648,891)
--------------------- ---------------------
Net increase in net assets from capital share
transactions............................... 9,760,431 41,603,614
--------------------- ---------------------
Total increase............................... 10,784,514 44,562,415
Net assets:
Beginning of period.......................... 11,487 11,499
--------------------- ---------------------
End of period (2)............................ $10,796,001 $44,573,914
--------------------- ---------------------
--------------------- ---------------------
(1) Shares sold............................... 700,000 1,300,000
Shares redeemed........................... (200,000) (200,000)
--------------------- ---------------------
Net increase in shares outstanding......... 500,000 1,100,000
--------------------- ---------------------
--------------------- ---------------------
(2) Including undistributed net investment
income.................................... $ 278,856 $ 641,380
</TABLE>
The accompanying notes are an integral part of the financial statements.
42
<PAGE>
<TABLE>
<CAPTION>
GERMANY HONG KONG ITALY
INDEX INDEX INDEX
SERIES SERIES SERIES
------------------- ------------------- -------------------
<S> <C> <C> <C>
(3/22/96 - (3/25/96 - (3/28/96 -
10/31/96) 10/31/96) 10/31/96)
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income........................ $ 158,608 $ 591,058 $ 478,185
Net realized gain (loss) on:
Investments................................ 4,581 374,442 273,922
Foreign currency transactions.............. 854 (251) (2,457)
Net change in unrealized
appreciation/depreciation on:
Investments................................ 751,087 1,096,458 1,672,918
Foreign currency translation............... 1,448 (12) (65)
------------------- ------------------- -------------------
Net increase (decrease) in net assets
resulting from operations.................. 916,578 2,061,695 2,422,503
------------------- ------------------- -------------------
Dividends and distributions to shareholders
from:
Net investment income........................ 0 0 0
------------------- ------------------- -------------------
Capital share transactions (1):
Net proceeds from sale of shares............. 20,803,037 29,252,928 29,550,884
Net cost of redemptions...................... 0 (15,282,886) 0
------------------- ------------------- -------------------
Net increase in net assets from capital share
transactions............................... 20,803,037 13,970,042 29,550,884
------------------- ------------------- -------------------
Total increase............................... 21,719,615 16,031,737 31,973,387
Net assets:
Beginning of period.......................... 11,476 11,481 11,493
------------------- ------------------- -------------------
End of period (2)............................ $21,731,091 $16,043,218 $31,984,880
------------------- ------------------- -------------------
------------------- ------------------- -------------------
(1) Shares sold............................... 600,000 1,000,000 1,200,000
Shares redeemed........................... 0 (500,000) 0
------------------- ------------------- -------------------
Net increase in shares outstanding......... 600,000 500,000 1,200,000
------------------- ------------------- -------------------
------------------- ------------------- -------------------
(2) Including undistributed net investment
income.................................... $ 158,608 $ 590,807 $ 475,728
<CAPTION>
JAPAN SOUTH AFRICA
INDEX INDEX
SERIES SERIES
------------------- -------------------
<S> <C> <C>
(3/22/96 -
10/31/96) (4/1/96 - 10/31/96)
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income........................ $ 5,625 $ 148,663
Net realized gain (loss) on:
Investments................................ 100,861 (15,281)
Foreign currency transactions.............. (18,942) (15,557)
Net change in unrealized
appreciation/depreciation on:
Investments................................ (6,433,226) (2,330,744)
Foreign currency translation............... (9,958) (2,717)
------------------- -------------------
Net increase (decrease) in net assets
resulting from operations.................. (6,355,640) (2,215,636)
------------------- -------------------
Dividends and distributions to shareholders
from:
Net investment income........................ 0 0
------------------- -------------------
Capital share transactions (1):
Net proceeds from sale of shares............. 75,972,110 18,130,256
Net cost of redemptions...................... 0 0
------------------- -------------------
Net increase in net assets from capital share
transactions............................... 75,972,110 18,130,256
------------------- -------------------
Total increase............................... 69,616,470 15,914,620
Net assets:
Beginning of period.......................... 11,470 11,494
------------------- -------------------
End of period (2)............................ $69,627,940 $15,926,114
------------------- -------------------
------------------- -------------------
(1) Shares sold............................... 2,000,000 900,000
Shares redeemed........................... 0 0
------------------- -------------------
Net increase in shares outstanding......... 2,000,000 900,000
------------------- -------------------
------------------- -------------------
(2) Including undistributed net investment
income.................................... $ 0 $ 133,106
43
<PAGE>
THE COUNTRYBASKETS(SM) INDEX FUND, INC.
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE PERIOD FROM COMMENCEMENT OF OPERATIONS TO OCTOBER 31, 1996
</TABLE>
<TABLE>
<CAPTION>
UK US
INDEX INDEX
SERIES SERIES
-------------------- -------------------
(3/26/96 - 10/31/96) (3/20/96 - 10/31/96)
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income........................ $ 213,332 $ 182,438
Net realized gain on:
Investments................................ 30,567 321,969
Foreign currency transactions.............. 5,931 0
Net change in unrealized
appreciation/depreciation on:
Investments................................ 1,640,780 1,230,719
Foreign currency translation............... 5,288 0
-------------------- --------------------
Net increase in net assets resulting from
operations................................. 1,895,898 1,735,126
-------------------- --------------------
Dividends and distributions to shareholders
from:
Net investment income...................... 0 (117,084)
-------------------- --------------------
Capital share transactions (1):
Net proceeds from sale of shares........... 11,527,715 31,884,000
Net cost of redemptions.................... 0 (16,324,381)
-------------------- --------------------
Net increase in net assets from capital
share transactions......................... 11,527,715 15,559,619
-------------------- --------------------
Total increase............................. 13,423,613 17,177,661
Net assets:
Beginning of period.......................... 11,488 11,478
-------------------- --------------------
End of period (2)............................ $ 13,435,101 $ 17,189,139
-------------------- --------------------
-------------------- --------------------
(1) Shares sold............................... 300,000 600,000
Shares redeemed........................... 0 (300,000)
-------------------- --------------------
Net increase in shares outstanding......... 300,000 300,000
-------------------- --------------------
-------------------- --------------------
(2) Including undistributed net investment
income.................................... $ 213,332 $ 65,354
</TABLE>
The accompanying notes are an integral part of the financial statements.
44
<PAGE>
THE COUNTRYBASKETS(SM) INDEX FUND, INC.
FINANCIAL HIGHLIGHTS
SELECTED DATA FOR A SHARE OF COMMON STOCK OUTSTANDING THROUGHOUT THE PERIOD
INDICATED
<TABLE>
<CAPTION>
AUSTRALIA FRANCE
INDEX INDEX
SERIES SERIES
---------------------- ----------------------
(3/25/96 - 10/31/96) (3/28/96 - 10/31/96)
<S> <C> <C>
Net asset value at beginning of period............ $ 19.67 $ 37.70
---------- ----------
INVESTMENT OPERATIONS:
Net investment income (a).................. 0.56 0.59
Net realized and unrealized gain on
investments and foreign currency........ 1.34 2.22
---------- ----------
INCREASE FROM INVESTMENT OPERATIONS............... 1.90 2.81
---------- ----------
DISTRIBUTIONS FROM NET INVESTMENT INCOME.......... 0.00 0.00
---------- ----------
NET ASSET VALUE AT END OF PERIOD.................. $ 21.57 $ 40.51
---------- ----------
---------- ----------
MARKET PRICE AT END OF PERIOD..................... $ 21.50 $ 40.625
---------- ----------
---------- ----------
TOTAL RETURN BASED ON:
Net asset value *(b)....................... 9.66% 7.45%
Market price *(b).......................... 7.50% 5.52%
RATIOS AND SUPPLEMENTAL DATA:
Net assets at end of period (000's)........ $ 10,796 $ 44,574
Ratios to average net assets:
Expenses **(a).......................... 1.00% 1.00%
Net investment income **(a)............. 3.76% 2.72%
Portfolio turnover rate *(c)............... 4.07% 7.82%
Average brokerage commissions (d).......... $ 0.0074 $ 0.0530
</TABLE>
* Not annualized.
** Annualized.
(a) Net of certain fees and expenses waived and/or reimbursed by the
Administrator and the Adviser. Had the Administrator and the Adviser not
undertaken to waive and/or reimburse such fees and expenses, net investment
income per share and the ratios of expenses to average net assets would have
been as follows: Australia Index Series, $0.04 and 4.47% and France Index
Series, $0.39 and 1.93%, respectively.
(b) Total return based on net asset value, excluding the effect of shareholder
transaction charges, assumes a purchase of common stock at the net asset
value on the commencement date of operations and a sale on the last day of
the period, also at net asset value. Total return based on market price,
excluding the effect of brokerage commissions, assumes a purchase of common
stock at the opening price on the New York Stock Exchange on the
commencement date of trading and a sale on the last day of the period at the
closing market price. During the period, total return based on net asset
value would have been lower had certain fees and expenses not been waived
and/or reimbursed by the Administrator and the Adviser.
(c) Excludes securities received or delivered resulting from capital share
transactions in Creation Unit(s).
(d) Represents average brokerage commission rate per share of total security
trades on which brokerage commissions were charged.
The accompanying notes are an integral part of the financial statements.
45
<PAGE>
THE COUNTRYBASKETS(SM) INDEX FUND, INC.
FINANCIAL HIGHLIGHTS
SELECTED DATA FOR A SHARE OF COMMON STOCK OUTSTANDING THROUGHOUT THE PERIOD
INDICATED
<TABLE>
<CAPTION>
GERMANY HONG KONG
INDEX INDEX
SERIES SERIES
---------------------- ----------------------
(3/22/96 - 10/31/96) (3/25/96 - 10/31/96)
<S> <C> <C>
Net asset value at beginning of period............ $ 34.67 $ 29.14
---------- ----------
INVESTMENT OPERATIONS:
Net investment income (a).................. 0.26 1.18
Net realized and unrealized gain (loss) on
investments and foreign currency........ 1.27 1.74
---------- ----------
INCREASE (DECREASE) FROM INVESTMENT OPERATIONS.... 1.53 2.92
---------- ----------
DISTRIBUTIONS FROM NET INVESTMENT INCOME.......... 0.00 0.00
---------- ----------
NET ASSET VALUE AT END OF PERIOD.................. $ 36.20 $ 32.06
---------- ----------
---------- ----------
MARKET PRICE AT END OF PERIOD..................... $ 36.125 $ 32.00
---------- ----------
---------- ----------
TOTAL RETURN BASED ON:
Net asset value *(b)....................... 4.41% 10.02%
Market price *(b).......................... 3.21% 8.02%
RATIOS AND SUPPLEMENTAL DATA:
Net assets at end of period (000's)........ $ 21,731 $ 16,043
Ratios to average net assets:
Expenses **(a).......................... 1.00% 1.00%
Net investment income **(a)............. 1.24% 3.62%
Portfolio turnover rate *(c)............... 2.83% 3.22%
Average brokerage commissions (d).......... $ 0.0951 $ 0.0041
</TABLE>
* Not annualized.
** Annualized.
(a) Net of certain fees and expenses waived and/or reimbursed by the
Administrator and the Adviser. Had the Administrator and the Adviser not
undertaken to waive and/or reimburse such fees and expenses, net investment
income per share and the ratios of expenses to average net assets would have
been as follows: Germany Index Series, $(0.13) and 2.86%; Hong Kong Index
Series, $0.67 and 2.57%; Italy Index Series, $0.20 and 2.18%; Japan Index
Series, $(0.10) and 1.46%; South Africa Index Series, $(0.11) and 3.59%; UK
Index Series, $(0.17) and 4.61%; and US Index Series, $(0.14) and 2.34%.
(b) Total return based on net asset value, excluding the effect of shareholder
transaction charges, assumes a purchase of common stock at the net asset
value on the commencement date of operations and a sale on the last day of
the period, also at net asset value. Total return based on market price,
excluding the effect of brokerage commissions, assumes a purchase of common
stock at the opening price on the New York Stock Exchange on the
commencement date of trading and a sale on the last day of the period at the
closing market price. During the period, total return based on net asset
value would have been lower had certain fees and expenses not been waived
and/or reimbursed by the Administrator and the Adviser.
(c) Excludes securities received or delivered resulting from capital share
transactions in Creation Unit(s).
(d) Represents average brokerage commission rate per share of total security
trades on which brokerage commissions were charged.
The accompanying notes are an integral part of the financial statements.
46
<PAGE>
<TABLE>
<CAPTION>
ITALY JAPAN SOUTH AFRICA
INDEX INDEX INDEX
SERIES SERIES SERIES
--------------------- --------------------- --------------------
(3/28/96 - 10/31/96) (3/22/96 - 10/31/96) (4/1/96 - 10/31/96)
<S> <C> <C>
Net asset value at beginning of period............ $ 24.61 $ 37.98 $ 20.13
---------- ---------- ----------
INVESTMENT OPERATIONS:
Net investment income (a).................. 0.40 0.00 0.17
Net realized and unrealized gain (loss) on
investment and foreign currency......... 1.63 (3.17) (2.62)
---------- ---------- ----------
INCREASE (DECREASE) FROM INVESTMENT OPERATIONS.... 2.03 (3.17) (2.45)
---------- ---------- ----------
DISTRIBUTIONS FROM NET INVESTMENT INCOME.......... 0.00 0.00 0.00
---------- ---------- ----------
NET ASSET VALUE AT END OF PERIOD.................. $ 26.64 $ 34.81 $ 17.68
---------- ---------- ----------
---------- ---------- ----------
MARKET PRICE AT END OF PERIOD..................... $ 26.75 $34.875 $ 17.75
---------- ---------- ----------
---------- ---------- ----------
TOTAL RETURN BASED ON:
Net asset value *(b)....................... 8.25% (8.35)% (12.17%)
Market price *(b).......................... 7.00% (10.86)% (10.13%)
RATIOS AND SUPPLEMENTAL DATA:
Net assets at end of period (000's)........ $ 31,985 $69,628 $ 15,926
Ratios to average net assets:
Expenses **(a).......................... 1.00% 1.00% 1.00%
Net investment income **(a)............. 2.43% 0.01% 1.53%
Portfolio turnover rate *(c)............... 18.49% 5.31% 2.19%
Average brokerage commissions (d).......... $ 0.0030 $0.0156 $ 0.0163
<CAPTION>
UK US
INDEX INDEX
SERIES SERIES
--------------------- --------------------
(3/26/96) - 10/31/96) (3/20/96 - 10/31/96)
<S> <C> <C>
Net asset value at beginning of period............ $ 38.42 $ 53.14
---------- ----------
INVESTMENT OPERATIONS:
Net investment income (a).................. 0.71 0.61
Net realized and unrealized gain (loss) on
investments and foreign currency........ 5.61 3.90
---------- ----------
INCREASE (DECREASE) FROM INVESTMENT OPERATIONS.... 6.32 4.51
---------- ----------
DISTRIBUTIONS FROM NET INVESTMENT INCOME.......... 0.00 (0.39)
---------- ----------
NET ASSET VALUE AT END OF PERIOD.................. $ 44.74 $ 57.26
---------- ----------
---------- ----------
MARKET PRICE AT END OF PERIOD..................... $ 45.00 $ 57.00
---------- ----------
---------- ----------
TOTAL RETURN BASED ON:
Net asset value *(b)....................... 16.45% 8.50%
Market price *(b).......................... 17.65% 7.29%
RATIOS AND SUPPLEMENTAL DATA:
Net assets at end of period (000's)........ $13,435 $17,189
Ratios to average net assets:
Expenses **(a).......................... 1.00% 1.00%
Net investment income **(a)............. 2.91% 1.09%
Portfolio turnover rate *(c)............... 3.19% 1.45%
Average brokerage commissions (d).......... $0.0080 $0.0419
</TABLE>
47
<PAGE>
THE COUNTRYBASKETS(SM) INDEX FUND, INC.
NOTES TO FINANCIAL STATEMENTS
OCTOBER 31, 1996
NOTE 1 -- ORGANIZATION
The CountryBaskets(SM) Index Fund, Inc. (the 'Fund') was incorporated under the
laws of the State of Maryland on August 8, 1994. The Fund is registered under
the Investment Company Act of 1940 as an open-end, non-diversified management
investment company. The Fund currently has outstanding shares of nine common
stock series: the Australia Index Series; the France Index Series; the Germany
Index Series; the Hong Kong Index Series; the Italy Index Series; the Japan
Index Series; the South Africa Index Series; the UK Index Series; and the US
Index Series (each, a 'Series').
The primary investment objective of each Series is to provide investment results
that substantially correspond to the price and yield performance of a
broad-based index of publicly traded equity securities in a particular country.
To achieve this investment objective, each Series seeks to provide investment
results that substantially correspond to the price and yield performance of its
respective country component of the FT/S&P Actuaries World Indices(Trademark)
(the 'FT Index').
The Series commenced operations on the following dates: the Australia Index
Series, March 25, 1996; the France Index Series, March 28, 1996; the Germany
Index Series, March 22, 1996; the Hong Kong Index Series, March 25, 1996; the
Italy Index Series, March 28, 1996; the Japan Index Series, March 22, 1996; the
South Africa Index Series, April 1, 1996; the UK Index Series, March 26, 1996;
and the US Index Series, March 20, 1996.
NOTE 2 -- SIGNIFICANT ACCOUNTING POLICIES
The preparation of financial statements in conformity 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. The following is a summary of
significant accounting policies followed by the Fund:
SECURITY VALUATION: Portfolio securities of each Series other than equity
securities held by the UK Index Series are valued at the last quoted sales price
on the securities exchange or national securities market on which such
securities are primarily traded. Equity securities held by the UK Index Series
are valued based on the arithmetic mean of the closing bid and asked prices on
the London Stock Exchange. Securities not listed on an exchange or national
securities market, or securities for which there were no purchase or sale
transactions, are valued at the arithmetic mean of the most recent bid and asked
prices, or if no asked price is available, at the bid price. When market
quotations are not readily available, portfolio securities are valued based on
their fair value as determined in good faith by the Board of Directors. Other
investments are valued at their redemption value.
48
<PAGE>
INVESTMENT TRANSACTIONS: Investment transactions are recorded on the trade
date. Cost of securities sold/delivered is calculated using the identified cost
method. Dividend income is recorded on the ex-dividend date and interest income
is recorded on an accrual basis. Such dividend income and interest income is
recorded net of the unrecoverable portion of any applicable foreign withholding
tax.
FOREIGN CURRENCY TRANSLATION: The books and records of the Fund are maintained
in US dollars. Assets and liabilities denominated in foreign currency amounts
are translated into US dollars at the relevant foreign exchange rate for each
Series in effect at 4:00 p.m., London time. Purchases and sales of investment
securities, income and expenses are reported at the prevailing exchange rate on
the respective dates of such transactions. The resultant gains and losses
arising from exchange rate fluctuations are identified separately in the
Statements of Operations, except for such amounts attributable to investments
which are included in net realized and unrealized gains and losses on
investments. Foreign investments may involve certain considerations and risks
not typically associated with those of domestic origin as a result of, among
others, the possibility of political and economic developments and the level of
governmental supervision and regulation of foreign securities markets.
FEDERAL INCOME TAXES: It is the policy of the Fund for each Series to qualify
for and elect treatment as a 'regulated investment company' under Subchapter M
of the Internal Revenue Code, as amended. Accordingly, each Series would not be
subject to U.S. federal income taxes to the extent it distributes all of its
taxable income including any net realized capital gains for each fiscal year. In
addition, by distributing, during each calendar year, substantially all of its
net investment income and capital gains, if any, each Series would not be
subject to U.S. federal excise tax.
As of October 31, 1996, the following Series had net capital loss carryforwards
which may be used to offset future capital gains:
EXPIRATION DATE
SERIES AMOUNT OCTOBER 31,
- -------------------------- ------- ----------------
Australia Index Series $ 379 2004
South Africa Index Series 13,139 2004
EXPENSES: Expenses are recorded on an accrual basis. Expenses of the Series
which are directly identifiable to a specific Series are allocated to that
Series. Expenses not directly attributed to a specific Series are allocated
among the Series in such a manner as deemed equitable by the Board of Directors.
DISTRIBUTION TO SHAREHOLDERS: Dividends from net investment income of all
Series other than the US Index Series are declared and paid at least annually
and, in the case of the US Index Series, quarterly. Capital gains of each
Series, if any, are distributed at least annually. Dividends and capital gains
distributions are distributed by each Series in US dollars. The Fund records all
distributions to shareholders on the ex-dividend date.
Income and capital gain distributions are determined in accordance with income
tax regulations which may differ from generally accepted accounting principles.
These differences, which could be temporary or permanent in nature, may result
in reclassification of distributions; however, net investment income, net
realized gains and net assets are not affected.
49
<PAGE>
During the period ended October 31, 1996, the Fund reclassified permanent book
and tax differences as follows:
<TABLE>
<CAPTION>
INCREASE (DECREASE) IN
-----------------------------------------------
UNDISTRIBUTED AND
ACCUMULATED NET
REALIZED GAIN
UNDISTRIBUTED (LOSS) ON
NET INVESTMENT INVESTMENTS AND PAID-IN
SERIES INCOME FOREIGN CURRENCY CAPITAL
- -------------------------------------------------------- -------------- ----------------- --------
<S> <C> <C> <C>
Australia Index Series.................................. $ (764) $ (22,329) $ 23,093
France Index Series..................................... (7,188) (93,052) 100,240
Germany Index series.................................... 0 0 0
Hong Kong Index Series.................................. (251) (361,497) 361,748
Italy Index Series...................................... (2,457) 2,457 0
Japan Index Series...................................... (5,625) 5,625 0
South Africa Index Series............................... (15,557) 15,557 0
UK Index Series......................................... 0 0 0
US Index Series......................................... 0 (302,784) 302,784
</TABLE>
DEFERRED ORGANIZATION COSTS: The costs of organizing the Fund were paid by
Deutsche Morgan Grenfell Inc. ('DMG'), investment adviser to the Fund (the
'Adviser'). Such organization costs, for which DMG will be reimbursed by the
Fund, have been deferred and are being amortized ratably over a period of sixty
months from the respective commencement of operations for each of the Series. As
of October 31, 1996, the amounts of organization costs payable to DMG, net of
its investment management fees waivers and expense reimbursements, are shown in
the statements of assets and liabilities.
In the event that during the amortization period the initial shares of each
Series issued to the Fund's distributor, ALPS Mutual Funds Services, Inc., are
redeemed, the redemption proceeds will be reduced by the pro rata share of the
unamortized organization costs as of the date of such redemption.
LOANS OF PORTFOLIO SECURITIES: Each Series of the Fund, with the exception of
the UK Index Series, may lend portfolio securities while it continues to earn
dividends on such securities loaned. In connection with the lending of the
portfolio of securities, the Series receives total collateral in an amount at
least equal to 105 percent of the market value of the securities loaned at the
inception of the loan. The value of the portfolio securities loaned is
marked-to-market on a daily basis and additional collateral is requested from
the borrower, as necessary, to ensure that its value is at least equal to 100
percent of the securities loaned at all times. Cash collateral received is
invested in a short-term instrument, State Street Bank and Trust Company of New
Hampshire, NA Securities Lending Quality Trust. Interest income earned on the
investment of the collateral plus reimbursement for management fees associated
with such investment, in excess of rebates to the borrower, is recorded on an
accrual basis. Income earned on non-cash collateral is based on a percentage of
the market value of the securities loaned and is recorded on an accrual basis.
If the borrower defaults and the value of the portfolio securities increases in
excess of the collateral received or if bankruptcy proceedings commence with
respect to the borrower of the security, realization of the value of the
securities loaned may be delayed or limited.
NOTE 3 -- SIGNIFICANT AGREEMENTS AND TRANSACTIONS WITH AFFILIATES
The Fund has entered into an Investment Management Agreement (the 'Management
Agreement') with DMG, an indirect subsidiary of Deutsche Bank AG. As the
Adviser, DMG provides investment advisory, management and certain administrative
services, including services in connection with the lending of portfolio
securities. For its services, DMG is entitled to receive a fee from each Series
at an annual rate of .20% of the average daily net assets, in the case of the US
Index Series, .45% of the average daily net assets in the case of the Hong Kong
50
<PAGE>
Index Series and the South Africa Index Series, and .30% of the average daily
net assets of each other Series, plus, in the case of each Series, 40% of the
gross investment income less dividends on securities held in the portfolio. The
Management Agreement also provides that DMG will be reimbursed for out-of-pocket
expenses incurred in providing certain administrative services.
The Fund has entered into an Administration Agreement with State Street Bank and
Trust Company (the 'Administrator'). Under the Administration Agreement, the
Fund pays compensation to the Administrator at the following annual rates based
on the average daily net assets of each Series taken separately: .08% of the
first $125 million of each Series' average daily net assets, .06% of the next
$125 million of each Series' average daily net assets and .04% of each Series'
average daily net assets in excess of $250 million, subject to a minimum annual
fee of $95,000 per Series. State Street Bank and Trust Company also serves as
custodian and transfer agent of the Fund, and the fees paid for such services
are shown in the statements of operations.
ALPS Mutual Funds Services, Inc. (the 'Distributor') serves as distributor of
the shares of the Series. The Fund has established a Rule 12b-1 plan for each
Series (each, a 'Plan'), pursuant to which each Series pays the Distributor a
distribution services fee for activities intended to result in the sale of
shares of the Series. Under a separate marketing agreement, the Distributor is
also paid a marketing fee, receives contributions from the Fund toward certain
bonus payments to be made to the Distributor, and is reimbursed for certain
expenses. Each Series also pays certain expenses relating to printing and
distributing prospectuses and makes payments due to dealers and other persons
for marketing and stockholder services, including payments to each such person
entering into an investor services agreement with the Distributor. All payments
to the Distributor and such dealers and other persons by each Series, and all
reimbursements to the Distributor or the Adviser for their respective costs
incurred in producing advertising or marketing material prepared at the request
of the Series, are made under the Plan of such Series and will not exceed in the
aggregate, on an annualized basis, .25% of the average daily net assets of the
Series.
Pursuant to the Management Agreement with the Fund, DMG has entered into a
Securities Lending Agency Agreement (the 'Lending Agreement') with State Street
Bank and Trust Company ('SSBT' or the 'Lending Agent'), whereby DMG has
authorized SSBT as its agent to lend available portfolio securities of each
Series to, and receive and invest cash collateral from, approved borrowers in
accordance with terms set forth in the Lending Agreement. In consideration of
the Lending Agent's services rendered, SSBT is entitled to an agency fee (for
lending available securities) and a management fee (for the investment of cash
collateral).
As of October 31, 1996 DMG, or affiliates of DMG, owned the following shares of
common stock (the 'CB Shares') in each Series:
SERIES SHARES
- -------------------------- -------
Australia Index Series 311,300
France Index Series 364,995
Germany Index Series 320,787
Hong Kong Index Series 325,755
Italy Index Series 319,415
Japan Index Series 752,495
South Africa Index Series 299,500
UK Index Series 53,647
US Index Series 282,302
For the period ending October 31, 1996, DMG received brokerage commissions as a
result of executing agency transactions in portfolio securities of the following
Series: Australia Index Series, $1,481; France Index Series,
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<PAGE>
$384; Germany Index Series, $570; Hong Kong Index Series, $2,078; Italy Index
Series, $0; Japan Index Series, $1,497; South Africa Index Series, $270; UK
Index Series, $94; and US Index Series, $57. Certain directors and officers of
the Fund are also directors and officers of the Adviser.
FEE WAIVERS AND EXPENSE REIMBURSEMENTS: In order to maintain an expense
limitation of 1.00% of the average daily net assets for each Series, the
Administrator and the Adviser agreed to waive all or a portion of their
respective fees. The Adviser waived its investment management fees and made
reimbursements so that the annualized ratio of operating expenses to average
daily net assets of each Series would not exceed 1.00% for the fiscal period
ended October 31, 1996.
NOTE 4 -- PORTFOLIO SECURITIES
Purchases and proceeds from the sale of securities, other than obligations of
the US government and its agencies and short-term securities, and the value of
portfolio securities received and delivered in exchange for CB Shares issued and
redeemed, respectively, for the period ending October 31, 1996, were as follows:
<TABLE>
<CAPTION>
SECURITIES SALES SECURITIES
SERIES PURCHASES RECEIVED PROCEEDS DELIVERED
- -------------------------- ---------- ----------- ----------- ----------
<S> <C> <C> <C> <C>
Australia Index Series $ 829,057 $13,501,490 $ 508,009 $4,000,196
France Index Series 3,398,152 49,367,460 3,121,560 7,630,357
Germany Index Series 602,655 20,779,723 590,417 0
Hong Kong Index Series 2,645,472 28,635,566 841,446 16,058,706
Italy Index Series 8,202,324 27,643,605 5,944,672 0
Japan Index Series 4,644,995 75,042,566 4,044,568 0
South Africa Index Series 990,985 17,454,241 360,156 0
UK Index Series 552,917 11,418,074 384,416 0
US Index Series 388,997 31,804,231 406,293 16,290,282
</TABLE>
NOTE 5 -- PORTFOLIO SECURITIES LOANED
As of October 31, 1996, the market value of the securities loaned and the amount
of collateral received with respect to such loans were as follows:
MARKET
VALUE OF
SECURITIES COLLATERAL
SERIES LOANED RECEIVED
- -------------------------- ----------- -----------
Australia Index Series $ 2,730,104 $ 2,933,436
France Index Series 11,772,231 12,331,358
Germany Index Series 1,188,803 1,265,827
Hong Kong Index Series 212,996 226,380
Italy Index Series 9,375,695 10,179,669
Japan Index Series 6,689,044 7,043,475
South Africa Index Series 0 0
UK Index Series 0 0
US Index Series 0 0
52
<PAGE>
NOTE 6 -- CAPITAL
The Fund is authorized to issue 5,000,000,000 shares of common stock. Currently
the Board has authorized nine Series of stock and allocated 200,000,000 shares
to each Series. The Fund sells and redeems Shares of each Series at their
respective net asset value, principally for an in-kind portfolio of equity
securities of the relevant FT Index component, together with a cash component.
The Fund sells and redeems CB Shares of each Series only in aggregations of a
specified number of shares (each, a 'Creation Unit'). The number of CB Shares
constituting a Creation Unit is currently 250,000 CB Shares in the case of the
Japan Index Series and 100,000 CB Shares in the case of each other Series.
The Fund imposes transaction fees on the cash portion of each purchase and
redemption of Series shares (other than shares of the US Index Series). The
percentage fee imposed on the cash portion of purchases and redemptions are as
follows:
PERCENTAGE FEE PERCENTAGE FEE
IMPOSED ON CASH IMPOSED ON CASH
PORTION OF PORTION OF
SERIES PURCHASES REDEMPTIONS
- -------------------------- --------------- ---------------
Australia Index Series 1.15% 1.15%
France Index Series 1.00 1.00
Germany Index Series 1.00 1.00
Hong Kong Index Series 1.20 1.20
Italy Index Series 1.00 1.00
Japan Index Series 1.32 1.32
South Africa Index Series 2.00 1.00
UK Index Series 1.50 1.00
US Index Series 0.00 0.00
NOTE 7 -- DIVIDENDS
On December 4, 1996, the Board of Directors of the Fund declared the following
dividend for each Series to stockholders of record December 4, 1996, payable on
January 6, 1997:
PER SHARE
SERIES AMOUNT
- -------------------------- ----------
Australia Index Series $ 0.78
France Index Series 1.13
Germany Index Series 0.30
Hong Kong Index Series 1.62
Italy Index Series 1.02
Japan Index Series 0.05
South Africa Index Series 0.29
UK Index Series 1.13
US Index Series 0.40
NOTE 8 -- SUBSEQUENT EVENT
On December 20, 1996, the Board of Directors approved and will recommend to
stockholders a Plan of Complete Liquidation and Dissolution of the Fund (the
'Plan'). A special stockholders' meeting to consider the Plan is scheduled for
February 7, 1997 for stockholders of record on January 7, 1997. If a majority of
the outstanding
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<PAGE>
shares of the Fund vote to approve the Plan, the Fund will be liquidated and the
remaining net assets of each Series of the Fund will be distributed to the
stockholders of that Series as soon as practicable.
Prior to approval of the Plan by stockholders, trading of the CB Shares on the
New York Stock Exchange is expected to continue as before so long as publicly
held shares are outstanding. Redemptions of Creation Units at their net asset
value will continue to be made in accordance with usual procedures until
stockholder approval of the Plan.
The Board of Directors approved the Plan on the recommendation of Deutsche
Morgan Grenfell Inc. ('DMG'), the Fund's Adviser. DMG based its recommendation,
among other reasons, on the continuing inability of the Fund to attract
significant levels of assets.
To limit the per-share expenses absorbed by stockholders who continue to hold CB
Shares through the liquidation period, DMG has agreed to maintain a cap on the
annualized operating expense ratio of each Series by waiving its investment
management fees and reimbursing the Fund for certain other expenses. Through
December 31, 1996, the expense cap for all Series will remain at the current
1.00% level. After December 31, 1996, the expense cap for each Series will be
revised as follows:
REVISED
SERIES EXPENSE CAP
- -------------------------- -----------
Australia Index Series 2.50%
France Index Series 1.93
Germany Index Series 2.50
Hong Kong Index Series 2.50
Italy Index Series 2.18
Japan Index Series 1.46
South Africa Index Series 2.50
UK Index Series 2.50
US Index Series 2.33
The revised expense cap for each Series is equal to the operating expense ratio
for that Series during fiscal year 1996, excluding the effect of the 1.0% cap in
effect at that time, subject to a maximum of 2.5% per annum. DMG will continue
to maintain the revised expense caps through the completion of the distribution
of the net assets of each Series or, if the Plan is not approved by
stockholders, through the date of the stockholders' meeting. DMG has also
undertaken to pay the costs of the liquidation, including the expenses of the
stockholders' meeting. If the Plan is not approved by stockholders at the
special meeting, the Board expects to consider the alternatives then available
for the Fund and its stockholders.
54
<PAGE>
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REPORT OF INDEPENDENT ACCOUNTANTS
- --------------------------------------------------------------------------------
To the Board of Directors and Shareholders of
The CountryBaskets(Service Mark) Index Fund, Inc.
In our opinion, the accompanying statements of assets and liabilities,
including the schedules of investments, and the related statements of operations
and of changes in net assets and the financial highlights present fairly, in all
material respects, the financial position of the Australia Index Series, the
France Index Series, the Germany Index Series, the Hong Kong Index Series, the
Italy Index Series, the Japan Index Series, the South Africa Index Series, the
UK Index Series, and the US Index Series (collectively, the 'Series', which
constitute The CountryBaskets(Service Mark) Index Fund, Inc. hereafter referred
to as the 'Fund') at October 31, 1996 and the results of each of their
operations, the changes in each of their net assets and the financial highlights
for the period from each Series' commencement of operations through October 31,
1996, in conformity with generally accepted accounting principles. These
financial statements and financial highlights (hereafter referred to as
'financial statements') are the responsibility of the Fund's management; our
responsibility is to express an opinion on these financial statements based on
our audit. We conducted our audit of these financial statements in accordance
with generally accepted auditing standards which require that we plan and
perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements, assessing the accounting principles used and significant estimates
made by management, and evaluating the overall financial statement presentation.
We believe that our audit, which included confirmation of securities at October
31, 1996 by correspondence with the custodian, provides a reasonable basis for
the opinion expressed above.
As discussed in Note 8, on December 20, 1996, the Board of Directors
approved a plan of liquidation for the Fund.
Price Waterhouse LLP
1177 Avenue of the Americas
New York, New York 10036
December 24, 1996
55
<PAGE>
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1996 U.S. TAX INFORMATION (UNAUDITED)
- --------------------------------------------------------------------------------
Each Series intends to make an election under Internal Revenue Code Section
853 to pass through foreign taxes paid by the Series to its shareholders. During
the period ended October 31, 1996, the total amount of foreign taxes that will
be passed through to the shareholders and the foreign source income for
information reporting purposes are as follows:
<TABLE>
<CAPTION>
FOREIGN FOREIGN
SERIES TAXES PAID SOURCE INCOME
- --------------------------------------------------- ---------- -------------
<S> <C> <C>
Australia Index Series $ 5,424 $ 281,024
France Index Series 122,818 658,464
Germany Index Series 48,782 201,778
Hong Kong Index Series 0 588,066
Italy Index Series 80,072 411,455
Japan Index Series 47,204 83,188
South Africa Index Series 0 148,663
UK Index Series 37,581 261,575
US Index Series 0 0
</TABLE>
This information is given to meet certain requirements of the Internal
Revenue Code. Shareholders should refer to their Form 1099-DIV to determine the
amounts includable on their respective tax returns for 1996.
56
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<PAGE>
[This page intentionally left blank]
<PAGE>
INVESTMENT ADVISER
Deutsche Morgan Grenfell Inc.
(formerly named 'Deutsche Morgan Grenfell/
C.J. Lawrence Inc.')
31 West 52nd Street
New York, New York 10019
ADMINISTRATOR, CUSTODIAN AND TRANSFER AGENT
State Street Bank and Trust Company
225 Franklin Street
Boston, Massachusetts 02110
DISTRIBUTOR
ALPS Mutual Funds Services, Inc.
370 Seventeenth Street, Suite 2700
Denver, Colorado 80202
LEGAL COUNSEL
Sullivan & Cromwell
125 Broad Street
New York, New York 10004
INDEPENDENT ACCOUNTANTS
Price Waterhouse LLP
1177 Avenue of the Americas
New York, New York 10036
DIRECTORS AND OFFICERS
W. Carter McClelland, Chairman and Director
Joseph A. La Corte, President and Director
*+Warner Heineman, Director
*+Lawrence C. McQuade, Director
*+Karl M. von der Heyden, Director
*+Robert H. Wadsworth, Director
Thomas A. Curtis, Vice President and Secretary
Joseph M. Cheung, Vice President and Treasurer
* Directors who are not 'interested persons' of the Fund as such term is used
in the Investment Company Act of 1940.
+ Member of the Audit Committee.
This report, including the financial statements
herein, is intended for the information of
shareholders of the Fund. It may be distributed to
prospective investors only when preceded or
accompanied by a current prospectus which contains
important information concerning the Fund.
<PAGE>
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SUMMARY OF GENERAL INFORMATION
- --------------------------------------------------------------------------------
The CountryBaskets(SM) Index Fund, Inc. (the 'Fund') is a non-diversified
management investment company organized as a series fund. The Fund currently has
nine series (each, a 'Series'): the Australia Index Series, the France Index
Series, the Germany Index Series, the Hong Kong Index Series, the Italy Index
Series, the Japan Index Series, the South Africa Index Series, the UK Index
Series and the US Index Series.
The primary investment objective of each Series is to provide investment
results that substantially correspond to the price and yield performance of a
broad-based index of publicly traded equity securities in a particular country.
To achieve this investment objective, each Series seeks to provide investment
results that substantially correspond to the price and yield performance of its
respective country component of the FT/S&P Actuaries World Indices(Trademark).
Shares of each Series (the 'CB Shares(SM)') are listed on the New York
Stock Exchange with the following trading symbols:
TRADING
SERIES SYMBOL
------ -------
Australia CB Shares(SM) GXA
France CB Shares(SM) GXF
Germany CB Shares(SM) GXG
Hong Kong CB Shares(SM) GXH
Italy CB Shares(SM) GXI
Japan CB Shares(SM) GXJ
South Africa CB Shares(SM) GXR
UK CB Shares(SM) GXK
US CB Shares(SM) GXU
SHAREHOLDER INFORMATION
Information about the Fund may be obtained from the Fund's Distributor,
ALPS Mutual Funds Services, Inc. (1-888-8CB-INFO).
- --------------------------------------------------------------------------------
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[LOGO]
THE COUNTRYBASKETS(SM)
INDEX FUND, INC.
ANNUAL REPORT
OCTOBER 31, 1996
- --------------------------------------------------------------------------------
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