<PAGE>
THE COUNTRYBASKETS INDEX FUND, INC.
STATEMENTS OF ASSETS AND LIABILITIES
APRIL 30, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
AUSTRALIA FRANCE
INDEX INDEX
SERIES SERIES
---------- ----------
<S> <C> <C>
ASSETS
Cash . . . . . . . . . . . . . . . . . . . . . . $ 69,216 $ 72,620
---------- ----------
TOTAL ASSETS . . . . . . . . . . . . . . . . . . 69,216 72,620
---------- ----------
LIABILITIES
Accounts payable and accrued expenses. . . . . . 69,216 72,620
---------- ----------
TOTAL LIABILITIES. . . . . . . . . . . . . . . . 69,216 72,620
---------- ----------
NET ASSETS . . . . . . . . . . . . . . . . . . . $ 0 $ 0
---------- ----------
---------- ----------
Net asset value, offering and redemption price
per share. . . . . . . . . . . . . . . . . . . $ 0.00 $ 0.00
Shares outstanding at end of period. . . . . . . 0 0
</TABLE>
The accompanying notes are an integral part of the financial statements.
<PAGE>
THE COUNTRYBASKETS INDEX FUND, INC.
STATEMENTS OF ASSETS AND LIABILITIES
APRIL 30, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
GERMANY HONG KONG ITALY JAPAN SOUTH AFRICA
INDEX INDEX INDEX INDEX INDEX
SERIES SERIES SERIES SERIES SERIES
---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C>
ASSETS
Cash . . . . . . . . . . . . . . . . . . . . . . $ 69,539 $ 70,850 $ 68,447 $ 69,891 $ 63,613
---------- ---------- ---------- ---------- ----------
TOTAL ASSETS . . . . . . . . . . . . . . . . . . 69,539 70,850 68,447 69,891 63,613
---------- ---------- ---------- ---------- ----------
LIABILITIES
Accounts payable and accrued expenses. . . . . . 69,539 70,850 68,447 69,891 63,613
---------- ---------- ---------- ---------- ----------
TOTAL LIABILITIES. . . . . . . . . . . . . . . . 69,539 70,850 68,447 69,891 63,613
---------- ---------- ---------- ---------- ----------
NET ASSETS . . . . . . . . . . . . . . . . . . . $ 0 $ 0 $0 $ 0 $ 0
---------- ---------- ---------- ---------- ----------
---------- ---------- ---------- ---------- ----------
Net asset value, offering and redemption price
per share. . . . . . . . . . . . . . . . . . . $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 0.00
Shares outstanding at end of period. . . . . . . 0 0 0 0 0
</TABLE>
The accompanying notes are an integral part of the financial statements.
<PAGE>
THE COUNTRYBASKETS INDEX FUND, INC.
STATEMENTS OF ASSETS AND LIABILITIES
APRIL 30, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
UK US
INDEX INDEX
SERIES SERIES
---------- ----------
<S> <C> <C>
ASSETS
Cash . . . . . . . . . . . . . . . . . . . . . . $ 79,057 $ 91,692
---------- ----------
TOTAL ASSETS . . . . . . . . . . . . . . . . . . 79,057 91,692
---------- ----------
LIABILITIES
Accounts payable and accrued expenses. . . . . . 79,057 91,692
---------- ----------
TOTAL LIABILITIES. . . . . . . . . . . . . . . . 79,057 91,692
---------- ----------
NET ASSETS . . . . . . . . . . . . . . . . . . . $ 0 $ 0
---------- ----------
---------- ----------
Net asset value, offering and redemption price
per share. . . . . . . . . . . . . . . . . . . $ 0 $ 0
Shares outstanding at end of period. . . . . . . 0 0
</TABLE>
The accompanying notes are an integral part of the financial statements.
<PAGE>
THE COUNTRYBASKETS INDEX FUND, INC.
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED APRIL 30, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
AUSTRALIA FRANCE
INDEX INDEX
SERIES SERIES
---------- ----------
<S> <C> <C>
INVESTMENT INCOME
Dividend income. . . . . . . . . . . . . . . . . $ 81,633 $ 62,120
Less: foreign withholding taxes. . . . . . . . . (821) (6,156)
---------- ----------
Net dividend income. . . . . . . . . . . . . . 80,812 55,964
Interest income. . . . . . . . . . . . . . . . . 8,625 6,418
Interest income from securities lending. . . . . 10,101 35,497
---------- ----------
TOTAL INCOME . . . . . . . . . . . . . . . . 99,538 97,879
---------- ----------
EXPENSES
Investment management fees . . . . . . . . . . . 10,649 37,964
Distribution fees. . . . . . . . . . . . . . . . 7,837 21,657
Administration fees. . . . . . . . . . . . . . . 34,452 34,452
Custody and accounting fees. . . . . . . . . . . 35,245 37,808
Transfer agent fees. . . . . . . . . . . . . . . 11,867 11,867
Legal fees . . . . . . . . . . . . . . . . . . . 7,527 7,527
Audit fees . . . . . . . . . . . . . . . . . . . 1,805 1,943
Directors' fees and expenses . . . . . . . . . . 7,110 7,137
Reports to shareholders. . . . . . . . . . . . . 1,111 1,111
NYSE listing fees. . . . . . . . . . . . . . . . 1,984 1,984
Amortization of organization costs . . . . . . . 13,453 13,453
Other expenses . . . . . . . . . . . . . . . . . 9,133 11,304
---------- ----------
TOTAL EXPENSES . . . . . . . . . . . . . . . 142,173 188,207
Investment management fees waived by Adviser . . (10,649) (37,964)
Expenses borne by Adviser. . . . . . . . . . . . (101,132) (50,339)
---------- ----------
NET EXPENSES . . . . . . . . . . . . . . . . 30,392 99,904
---------- ----------
NET INVESTMENT INCOME (LOSS) . . . . . . . . 69,146 (2,025)
---------- ----------
REALIZED AND UNREALIZED GAIN
ON INVESTMENTS AND FOREIGN CURRENCY
Net realized gain (loss) on:
Investments. . . . . . . . . . . . . . . . . . . 971,505 4,406,936
Foreign currency transactions. . . . . . . . . . 51,689 (59,291)
Net change in unrealized appreciation
(depreciation) on:
Investments. . . . . . . . . . . . . . . . . . . (722,256) (2,018,094)
Foreign currency translations. . . . . . . . . . (257) (3,840)
---------- ----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS AND FOREIGN CURRENCY . . . . . . . 300,681 2,325,711
---------- ----------
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS. . . . . . . . . . . . . . . . . $ 369,827 $2,323,686
---------- ----------
---------- ----------
</TABLE>
The accompanying notes are an integral part of the financial statements.
<PAGE>
THE COUNTRYBASKETS INDEX FUND, INC.
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED APRIL 30, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
GERMANY HONG KONG
INDEX INDEX
SERIES SERIES
---------- ----------
<S> <C> <C>
INVESTMENT INCOME
Dividend income. . . . . . . . . . . . . . . . . $ 28,976 $ 104,898
Less: foreign withholding taxes. . . . . . . . . (2,898) 0
---------- ----------
Net dividend income. . . . . . . . . . . . . . 26,078 104,898
Interest income. . . . . . . . . . . . . . . . . 6,987 11,322
Interest income from securities lending. . . . . 4,989 2,321
---------- ----------
TOTAL INCOME . . . . . . . . . . . . . . . . 38,054 118,541
---------- ----------
EXPENSES
Investment management fees . . . . . . . . . . . 14,159 18,052
Distribution fees. . . . . . . . . . . . . . . . 10,313 9,637
Administration fees. . . . . . . . . . . . . . . 34,452 34,452
Custody and accounting fees. . . . . . . . . . . 35,303 37,285
Transfer agent fees. . . . . . . . . . . . . . . 11,867 11,867
Legal fees . . . . . . . . . . . . . . . . . . . 7,527 7,527
Audit fees . . . . . . . . . . . . . . . . . . . 1,760 1,805
Directors' fees and expenses . . . . . . . . . . 7,101 7,110
Reports to shareholders. . . . . . . . . . . . . 1,111 1,111
NYSE listing fees. . . . . . . . . . . . . . . . 1,984 1,984
Amortization of organization costs . . . . . . . 13,453 13,453
Other expenses . . . . . . . . . . . . . . . . . 11,207 11,381
---------- ----------
TOTAL EXPENSES . . . . . . . . . . . . . . . 150,237 155,664
Investment management fees waived by Adviser . . (14,159) (18,052)
Expenses borne by Adviser. . . . . . . . . . . . (81,954) (83,559)
---------- ----------
NET EXPENSES . . . . . . . . . . . . . . . . 54,124 54,053
---------- ----------
NET INVESTMENT INCOME (LOSS) . . . . . . . . (16,070) 64,488
---------- ----------
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS AND FOREIGN CURRENCY
Net realized gain (loss) on:
Investments. . . . . . . . . . . . . . . . . . . 2,199,259 1,949,979
Foreign currency transactions. . . . . . . . . . 6,529 555
Net change in unrealized appreciation
(depreciation) on:
Investments. . . . . . . . . . . . . . . . . . . (751,087) (1,096,458)
Foreign currency translations. . . . . . . . . . (1,448) 12
---------- ----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS AND FOREIGN CURRENCY . . . . . . 1,453,253 854,088
---------- ----------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING
FROM OPERATIONS. . . . . . . . . . . . . . . . . $1,437,183 $ 918,576
---------- ----------
---------- ----------
</TABLE>
The accompanying notes are an integral part of the financial statements.
<PAGE>
THE COUNTRYBASKETS INDEX FUND, INC.
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED APRIL 30, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
ITALY JAPAN SOUTH AFRICA UK US
INDEX INDEX INDEX INDEX INDEX
SERIES SERIES SERIES SERIES SERIES
---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME
Dividend income. . . . . . . . . . . . . . . . . $15,629 $15,046 $51,853 $90,134 $83,497
Less: foreign withholding taxes. . . . . . . . . (2,344) (2,257) 0 (12,821) 0
---------- ---------- ---------- ---------- ----------
Net dividend income. . . . . . . . . . . . . . 13,285 12,789 51,853 77,313 83,497
Interest income. . . . . . . . . . . . . . . . . 5,874 12,240 2,839 8,882 11,420
Interest income from securities lending. . . . . 30,068 23,401 0 0 0
---------- ---------- ---------- ---------- ----------
TOTAL INCOME . . . . . . . . . . . . . . . . 49,227 48,430 54,692 86,195 94,917
---------- ---------- ---------- ---------- ----------
EXPENSES
Investment management fees . . . . . . . . . . . 30,631 49,115 12,734 9,064 7,772
Distribution fees. . . . . . . . . . . . . . . . 16,236 33,481 7,600 7,553 9,714
Administration fees. . . . . . . . . . . . . . . 34,452 34,452 34,452 34,452 34,452
Custody and accounting fees. . . . . . . . . . . 34,935 52,261 35,000 41,646 52,255
Transfer agent fees. . . . . . . . . . . . . . . 11,867 11,867 11,866 11,866 11,866
Legal fees . . . . . . . . . . . . . . . . . . . 7,527 7,527 7,527 7,527 7,527
Audit fees . . . . . . . . . . . . . . . . . . . 1,943 1,760 2,133 1,850 1,583
Directors' fees and expenses . . . . . . . . . . 7,137 7,101 7,175 7,119 7,067
Reports to shareholders. . . . . . . . . . . . . 1,111 1,111 1,111 1,111 1,111
NYSE listing fees. . . . . . . . . . . . . . . . 1,984 1,984 1,984 1,984 1,984
Amortization of organization costs . . . . . . . 13,453 13,453 13,453 13,453 13,453
Other expenses . . . . . . . . . . . . . . . . . 11,304 11,957 10,876 11,255 11,113
---------- ---------- ---------- ---------- ----------
TOTAL EXPENSES . . . . . . . . . . . . . . . 172,580 226,069 145,911 148,880 159,897
Investment management fees waived by Adviser . . (30,631) (49,115) (12,734) (9,064) (7,772)
Expenses borne by Adviser. . . . . . . . . . . . (67,846) (35,838) (90,791) (98,482) (101,668)
---------- ---------- ---------- ---------- ----------
NET EXPENSES . . . . . . . . . . . . . . . . 74,103 141,116 42,386 41,334 50,457
---------- ---------- ---------- ---------- ----------
NET INVESTMENT INCOME (LOSS) . . . . . . . . (24,876) (92,686) 12,306 44,861 44,460
---------- ---------- ---------- ---------- ----------
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS AND FOREIGN CURRENCY
Net realized gain (loss) on:
Investments. . . . . . . . . . . . . . . . . . . 7,187,621 (14,117,791) (2,496,487) 2,538,637 2,770,023
Foreign currency transactions. . . . . . . . . . (4,749) 51,874 (25,346) 12,830 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 translations. . . . . . . . . . 65 9,958 2,717 (5,288) 0
---------- ---------- ---------- ---------- ----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS AND FOREIGN CURRENCY . . . . . . 5,510,019 (7,622,733) (188,372) 905,399 1,539,304
---------- ---------- ---------- ---------- ----------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING
FROM OPERATIONS. . . . . . . . . . . . . . . . . $5,485,143 $(7,715,419) $(176,066) $950,260 $1,583,764
---------- ---------- ---------- ---------- ----------
---------- ---------- ---------- ---------- ----------
</TABLE>
The accompanying notes are an integral part of the financial statements.
<PAGE>
THE COUNTRYBASKETS-SM- INDEX FUND, INC.
STATEMENTS OF CHANGES IN NET ASSETS
(UNAUDITED)
<TABLE>
<CAPTION>
AUSTRALIA INDEX SERIES
------------------------------------
PERIOD FROM
MARCH 25, 1996
(COMMENCEMENT
SIX MONTHS ENDED OF OPERATIONS) TO
APRIL 30, 1997 OCTOBER 31, 1996
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income. . . . . . . . . . . . . . . . . . . $ 69,146 $ 279,620
Net realized gain (loss) on:
Investments. . . . . . . . . . . . . . . . . . . . . . . 971,505 22,714
Foreign currency transactions. . . . . . . . . . . . . . 51,689 (764)
Net change in unrealized appreciation (depreciation) on:
Investments. . . . . . . . . . . . . . . . . . . . . . . (722,256) 722,256
Foreign currency translation . . . . . . . . . . . . . . (257) 257
------------ ------------
Net increase in net assets resulting from operations . . . 369,827 1,024,083
------------ ------------
Dividends and distributions to Shareholders. . . . . . . . . (390,455) 0
------------ ------------
Capital share transactions (1):
Net proceeds from sale of shares . . . . . . . . . . . . . 0 13,772,077
Net cost of redemptions. . . . . . . . . . . . . . . . . . (10,775,373) (4,011,646)
------------ ------------
Net increase (decrease) in net assets from capital
share transactions . . . . . . . . . . . . . . . . . . . (10,775,373) 9,760,431
------------ ------------
Total increase (decrease). . . . . . . . . . . . . . . . . (10,796,001) 10,784,514
Net assets:
Beginning of period. . . . . . . . . . . . . . . . . . . . 10,796,001 11,487
------------ ------------
End of period (2). . . . . . . . . . . . . . . . . . . . . $ 0 $ 10,796,001
------------ ------------
------------ ------------
(1) Shares sold. . . . . . . . . . . . . . . . . . . . . . . 0 700,000
Shares redeemed. . . . . . . . . . . . . . . . . . . . . (500,584) (200,000)
------------ ------------
Net increase (decrease) in shares outstanding. . . . . . (500,584) 500,000
------------ ------------
------------ ------------
(2) Including undistributed net investment income. . . . . . $ 0 $ 278,856
</TABLE>
The accompanying notes are an integral part of the financial statements.
<PAGE>
THE COUNTRYBASKETS-SM- INDEX FUND, INC.
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
(UNAUDITED)
<TABLE>
<CAPTION>
FRANCE INDEX SERIES
------------------------------------
PERIOD FROM
MARCH 28, 1996
(COMMENCEMENT
SIX MONTHS ENDED OF OPERATIONS) TO
APRIL 30, 1997 OCTOBER 31, 1996
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss) . . . . . . . . . . . . . . . $ (2,025) $ 648,568
Net realized gain (loss) on:
Investments. . . . . . . . . . . . . . . . . . . . . . . 4,406,936 295,487
Foreign currency transactions. . . . . . . . . . . . . . (59,291) (7,188)
Net change in unrealized appreciation (depreciation) on:
Investments. . . . . . . . . . . . . . . . . . . . . . . (2,018,094) 2,018,094
Foreign currency translation . . . . . . . . . . . . . . (3,840) 3,840
------------ ------------
Net increase in net assets resulting from operations . . . 2,323,686 2,958,801
------------ ------------
Dividends and distributions to Shareholders. . . . . . . . . (1,017,344) 0
------------ ------------
Capital share transactions (1):
Net proceeds from sale of shares . . . . . . . . . . . . . 0 49,252,505
Net cost of redemptions. . . . . . . . . . . . . . . . . . (45,880,256) (7,648,891)
------------ ------------
Net increase (decrease) in net assets from capital
share transactions . . . . . . . . . . . . . . . . . . . (45,880,256) 41,603,614
------------ ------------
Total increase (decrease). . . . . . . . . . . . . . . . . (44,573,914) 44,562,415
Net assets:
Beginning of period. . . . . . . . . . . . . . . . . . . . 44,573,914 11,499
------------ ------------
End of period (2). . . . . . . . . . . . . . . . . . . . . $ 0 $44,573,914
------------ ------------
------------ ------------
(1) Shares sold. . . . . . . . . . . . . . . . . . . . . . . 0 1,300,000
Shares redeemed. . . . . . . . . . . . . . . . . . . . . (1,100,305) (200,000)
------------ ------------
Net increase (decrease) in shares outstanding. . . . . . (1,100,305) 1,100,000
------------ ------------
------------ ------------
(2) Including undistributed net investment income. . . . . . $0 $641,380
</TABLE>
The accompanying notes are an integral part of the financial statements.
<PAGE>
THE COUNTRYBASKETS-SM- INDEX FUND, INC.
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
(UNAUDITED)
<TABLE>
<CAPTION>
GERMANY INDEX SERIES
------------------------------------
PERIOD FROM
MARCH 22, 1996
(COMMENCEMENT
SIX MONTHS ENDED OF OPERATIONS) TO
APRIL 30, 1997 OCTOBER 31, 1996
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss) . . . . . . . . . . . . . . . $ (16,070) $ 158,608
Net realized gain on:
Investments. . . . . . . . . . . . . . . . . . . . . . . 2,199,259 4,581
Foreign currency transactions. . . . . . . . . . . . . . 6,529 854
Net change in unrealized appreciation (depreciation) on:
Investments. . . . . . . . . . . . . . . . . . . . . . . (751,087) 751,087
Foreign currency translation . . . . . . . . . . . . . . (1,448) 1,448
------------ ------------
Net increase in net assets resulting from operations . . . 1,437,183 916,578
------------ ------------
Dividends and distributions to Shareholders. . . . . . . . . (180,099) 0
------------ ------------
Capital share transactions (1):
Net proceeds from sale of shares . . . . . . . . . . . . . 0 20,803,037
Net cost of redemptions. . . . . . . . . . . . . . . . . . (22,988,175) 0
------------ ------------
Net increase (decrease) in net assets from capital
share transactions . . . . . . . . . . . . . . . . . . . (22,988,175) 20,803,037
------------ ------------
Total increase (decrease). . . . . . . . . . . . . . . . . (21,731,091) 21,719,615
Net assets:
Beginning of period. . . . . . . . . . . . . . . . . . . . 21,731,091 11,476
------------ ------------
End of period (2). . . . . . . . . . . . . . . . . . . . . $ 0 $21,731,091
------------ ------------
------------ ------------
(1) Shares sold. . . . . . . . . . . . . . . . . . . . . . . 0 600,000
Shares redeemed. . . . . . . . . . . . . . . . . . . . . (600,331) 0
------------ ------------
Net increase (decrease)in shares outstanding . . . . . . (600,331) 600,000
------------ ------------
------------ ------------
(2) Including undistributed net investment income. . . . . . $ 0 $ 158,608
</TABLE>
The accompanying notes are an integral part of the financial statements.
<PAGE>
THE COUNTRYBASKETS-SM- INDEX FUND, INC.
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
(UNAUDITED)
<TABLE>
<CAPTION>
HONG KONG INDEX SERIES
------------------------------------
PERIOD FROM
MARCH 25, 1996
(COMMENCEMENT
SIX MONTHS ENDED OF OPERATIONS) TO
APRIL 30, 1997 OCTOBER 31, 1996
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income. . . . . . . . . . . . . . . . . . . $ 64,488 $ 591,058
Net realized gain (loss) on:
Investments. . . . . . . . . . . . . . . . . . . . . . . 1,949,979 374,442
Foreign currency transactions. . . . . . . . . . . . . . 555 (251)
Net change in unrealized appreciation (depreciation) on:
Investments. . . . . . . . . . . . . . . . . . . . . . . (1,096,458) 1,096,458
Foreign currency translation . . . . . . . . . . . . . . 12 (12)
------------ ------------
Net increase in net assets resulting from operations . . . 918,576 2,061,695
------------ ------------
Dividends and distributions to Shareholders. . . . . . . . . (810,639) 0
------------ ------------
Capital share transactions (1):
Net proceeds from sale of shares . . . . . . . . . . . . . 0 29,252,928
Net cost of redemptions. . . . . . . . . . . . . . . . . . (16,151,155) (15,282,886)
------------ ------------
Net increase (decrease) in net assets from capital
share transactions . . . . . . . . . . . . . . . . . . . (16,151,155) 13,970,042
------------ ------------
Total increase (decrease). . . . . . . . . . . . . . . . . (16,043,218) 16,031,737
Net assets:
Beginning of period. . . . . . . . . . . . . . . . . . . . 16,043,218 11,481
------------ ------------
End of period (2). . . . . . . . . . . . . . . . . . . . . $ 0 $ 16,043,218
------------ ------------
------------ ------------
(1) Shares sold. . . . . . . . . . . . . . . . . . . . . . . 0 1,000,000
Shares redeemed. . . . . . . . . . . . . . . . . . . . . (500,394) (500,000)
------------ ------------
Net increase (decrease) in shares outstanding. . . . . . (500,394) 500,000
------------ ------------
------------ ------------
(2) Including undistributed net investment income. . . . . . $ 0 $ 590,807
</TABLE>
The accompanying notes are an integral part of the financial statements.
<PAGE>
THE COUNTRYBASKETS-SM- INDEX FUND, INC.
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
(UNAUDITED)
<TABLE>
<CAPTION>
ITALY INDEX SERIES
------------------------------------
PERIOD FROM
MARCH 28, 1996
(COMMENCEMENT
SIX MONTHS ENDED OF OPERATIONS) TO
APRIL 30, 1997 OCTOBER 31, 1996
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss) . . . . . . . . . . . . . . . $ (24,876) $478,185
Net realized gain (loss) on:
Investments. . . . . . . . . . . . . . . . . . . . . . . 7,187,621 273,922
Foreign currency transactions. . . . . . . . . . . . . . (4,749) (2,457)
Net change in unrealized appreciation (depreciation) on:
Investments. . . . . . . . . . . . . . . . . . . . . . . (1,672,918) 1,672,918
Foreign currency translation . . . . . . . . . . . . . . 65 (65)
------------ ------------
Net increase in net assets resulting from operations . . . 5,485,143 2,422,503
------------ ------------
Dividends and distributions to Shareholders. . . . . . . . . (1,020,476) 0
------------ ------------
Capital share transactions (1):
Net proceeds from sale of shares . . . . . . . . . . . . . 0 29,550,884
Net cost of redemptions. . . . . . . . . . . . . . . . . . (36,449,547) 0
------------ ------------
Net increase (decrease) in net assets from capital
share transactions . . . . . . . . . . . . . . . . . . . (36,449,547) 29,550,884
------------ ------------
Total increase (decrease). . . . . . . . . . . . . . . . . (31,984,880) 31,973,387
Net assets:
Beginning of period. . . . . . . . . . . . . . . . . . . . 31,984,880 11,493
------------ ------------
End of period (2). . . . . . . . . . . . . . . . . . . . . $ 0 $ 31,984,880
------------ ------------
------------ ------------
(1) Shares sold. . . . . . . . . . . . . . . . . . . . . . . 0 1,200,000
Shares redeemed. . . . . . . . . . . . . . . . . . . . . (1,200,467) 0
------------ ------------
Net increase (decrease) in shares outstanding. . . . . . (1,200,467) 1,200,000
------------ ------------
------------ ------------
(2) Including undistributed net investment income. . . . . . $ 0 $ 475,728
</TABLE>
The accompanying notes are an integral part of the financial statements.
<PAGE>
THE COUNTRYBASKETS-SM- INDEX FUND, INC.
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
(UNAUDITED)
<TABLE>
<CAPTION>
JAPAN INDEX SERIES
------------------------------------
PERIOD FROM
MARCH 22, 1996
(COMMENCEMENT
SIX MONTHS ENDED OF OPERATIONS) TO
APRIL 30, 1997 OCTOBER 31, 1996
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss) . . . . . . . . . . . . . . . $ (92,686) 5,625
Net realized gain (loss) on:
Investments. . . . . . . . . . . . . . . . . . . . . . . (14,117,791) 100,861
Foreign currency transactions. . . . . . . . . . . . . . 51,874 (18,942)
Net change in unrealized appreciation (depreciation) on:
Investments. . . . . . . . . . . . . . . . . . . . . . . 6,433,226 (6,433,226)
Foreign currency translation . . . . . . . . . . . . . . 9,958 (9,958)
------------ ------------
Net (decrease) in net assets resulting from operations . . (7,715,419) (6,355,640)
------------ ------------
Dividends and distributions to Shareholders. . . . . . . . . (100,015) 0
------------ ------------
Capital share transactions (1):
Net proceeds from sale of shares . . . . . . . . . . . . . 0 75,972,110
Net cost of redemptions. . . . . . . . . . . . . . . . . . (61,812,506) 0
------------ ------------
Net increase (decrease) in net assets from capital
share transactions . . . . . . . . . . . . . . . . . . . (61,812,506) 75,972,110
------------ ------------
Total increase (decrease). . . . . . . . . . . . . . . . . (69,627,940) 69,616,470
Net assets:
Beginning of period. . . . . . . . . . . . . . . . . . . . 69,627,940 11,470
------------ ------------
End of period (2). . . . . . . . . . . . . . . . . . . . . $ 0 $ 69,627,940
------------ ------------
------------ ------------
(1) Shares sold. . . . . . . . . . . . . . . . . . . . . . . 0 2,000,000
Shares redeemed. . . . . . . . . . . . . . . . . . . . . (2,000,302) 0
------------ ------------
Net increase (decrease) in shares outstanding. . . . . . (2,000,302) 2,000,000
------------ ------------
------------ ------------
(2) Including undistributed net investment income. . . . . . $ 0 $ 0
</TABLE>
The accompanying notes are an integral part of the financial statements.
<PAGE>
THE COUNTRYBASKETS-SM- INDEX FUND, INC.
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
(UNAUDITED)
<TABLE>
<CAPTION>
SOUTH AFRICA INDEX SERIES
------------------------------------
PERIOD FROM
APRIL 1, 1996
(COMMENCEMENT
SIX MONTHS ENDED OF OPERATIONS) TO
APRIL 30, 1997 OCTOBER 31, 1996
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income. . . . . . . . . . . . . . . . . . . $ 12,306 $ 148,663
Net realized loss on:
Investments. . . . . . . . . . . . . . . . . . . . . . . (2,496,487) (15,281)
Foreign currency transactions. . . . . . . . . . . . . . (25,346) (15,557)
Net change in unrealized appreciation (depreciation) on:
Investments. . . . . . . . . . . . . . . . . . . . . . . 2,330,744 (2,330,744)
Foreign currency translation . . . . . . . . . . . . . . 2,717 (2,717)
------------ ------------
Net decrease in net assets resulting from operations . . . (176,066) (2,215,636)
------------ ------------
Dividends and distributions to Shareholders. . . . . . . . . (174,166) 0
------------ ------------
Capital share transactions (1):
Net proceeds from sale of shares . . . . . . . . . . . . . 0 18,130,256
Net cost of redemptions. . . . . . . . . . . . . . . . . . (15,575,882) 0
------------ ------------
Net increase (decrease) in net assets from capital
share transactions . . . . . . . . . . . . . . . . . . . (15,575,882) 18,130,256
------------ ------------
Total increase (decrease). . . . . . . . . . . . . . . . . (15,926,114) 15,914,620
Net assets:
Beginning of period. . . . . . . . . . . . . . . . . . . . 15,926,114 11,494
------------ ------------
End of period (2). . . . . . . . . . . . . . . . . . . . . $ 0 $ 15,926,114
------------ ------------
------------ ------------
(1) Shares sold. . . . . . . . . . . . . . . . . . . . . . . 0 900,000
Shares redeemed. . . . . . . . . . . . . . . . . . . . . (900,571) 0
------------ ------------
Net increase (decrease) in shares outstanding. . . . . . (900,571) 900,000
------------ ------------
------------ ------------
(2) Including undistributed net investment income. . . . . . $ 0 $ 133,106
</TABLE>
The accompanying notes are an integral part of the financial statements
<PAGE>
THE COUNTRYBASKETS-SM- INDEX FUND, INC.
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
(UNAUDITED)
<TABLE>
<CAPTION>
UK INDEX SERIES
------------------------------------
PERIOD FROM
MARCH 26, 1996
(COMMENCEMENT
SIX MONTHS ENDED OF OPERATIONS) TO
APRIL 30, 1997 OCTOBER 31, 1996
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income. . . . . . . . . . . . . . . . . . . $ 44,861 $ 213,332
Net realized gain on:
Investments. . . . . . . . . . . . . . . . . . . . . . . 2,538,637 30,567
Foreign currency transactions. . . . . . . . . . . . . . 12,830 5,931
Net change in unrealized appreciation (depreciation) on:
Investments. . . . . . . . . . . . . . . . . . . . . . . (1,640,780) 1,640,780
Foreign currency translation . . . . . . . . . . . . . . (5,288) 5,288
------------ ------------
Net increase in net assets resulting from operations . . . 950,260 1,895,898
------------ ------------
Dividends and distributions to Shareholders. . . . . . . . . (339,338) 0
------------ ------------
Capital share transactions (1):
Net proceeds from sale of shares . . . . . . . . . . . . . 0 11,527,715
Net cost of redemptions. . . . . . . . . . . . . . . . . . (14,046,023) 0
------------ ------------
Net increase (decrease) in net assets from capital
share transactions . . . . . . . . . . . . . . . . . . . (14,046,023) 11,527,715
------------ ------------
Total increase (decrease). . . . . . . . . . . . . . . . . (13,435,101) 13,423,613
Net assets:
Beginning of period. . . . . . . . . . . . . . . . . . . . 13,435,101 11,488
------------ ------------
End of period (2). . . . . . . . . . . . . . . . . . . . . $ 0 $ 13,435,101
------------ ------------
------------ ------------
(1) Shares sold. . . . . . . . . . . . . . . . . . . . . . . 0 300,000
Shares redeemed. . . . . . . . . . . . . . . . . . . . . (300,299) 0
------------ ------------
Net increase (decrease) in shares outstanding. . . . . . (300,299) 300,000
------------ ------------
------------ ------------
(2) Including undistributed net investment income. . . . . . $ 0 $ 213,332
</TABLE>
The accompanying notes are an integral part of the financial statements.
<PAGE>
THE COUNTRYBASKETS-SM- INDEX FUND, INC.
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
(UNAUDITED)
<TABLE>
<CAPTION>
US INDEX SERIES
------------------------------------
PERIOD FROM
MARCH 20, 1996
(COMMENCEMENT
SIX MONTHS ENDED OF OPERATIONS) TO
APRIL 30, 1997 OCTOBER 31, 1996
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income. . . . . . . . . . . . . . . . . . . $ 44,460 $ 182,438
Net realized gain on:
Investments. . . . . . . . . . . . . . . . . . . . . . . 2,770,023 321,969
Net change in unrealized appreciation (depreciation) on:
Investments. . . . . . . . . . . . . . . . . . . . . . . (1,230,719) 1,230,719
------------ ------------
Net increase in net assets resulting from operations . . . 1,583,764 1,735,126
------------ ------------
Dividends and distributions to Shareholders. . . . . . . . . (120,086) (117,084)
------------ ------------
Capital share transactions (1):
Net proceeds from sale of shares . . . . . . . . . . . . . 0 31,884,000
Net cost of redemptions. . . . . . . . . . . . . . . . . . (18,652,817) (16,324,381)
------------ ------------
Net increase (decrease) in net assets from capital
share transactions . . . . . . . . . . . . . . . . . . . (18,652,817) (15,559,619)
------------ ------------
Total increase (decrease). . . . . . . . . . . . . . . . . (17,189,139) 17,177,661
Net assets:
Beginning of period. . . . . . . . . . . . . . . . . . . . 17,189,139 11,478
------------ ------------
End of period (2). . . . . . . . . . . . . . . . . . . . . $ 0 $ 17,189,139
------------ ------------
------------ ------------
(1) Shares sold. . . . . . . . . . . . . . . . . . . . . . . 0 600,000
Shares redeemed. . . . . . . . . . . . . . . . . . . . . (300,216) (300,000)
------------ ------------
Net increase (decrease) in shares outstanding. . . . . . (300,216) 300,000
------------ ------------
------------ ------------
(2) Including undistributed net investment income. . . . . . $ 0 $ 65,354
</TABLE>
<PAGE>
COUNTRYBASKETS-SM- INDEX FUND, INC.
FINANCIAL HIGHLIGHTS (UNAUDITED)
SELECTED DATA FOR A SHARE OF COMMON STOCK OUTSTANDING
THROUGHOUT THE PERIODS INDICATED
<TABLE>
<CAPTION>
AUSTRALIA INDEX SERIES
----------------------
PERIOD FROM
MARCH 25, 1996
(COMMENCEMENT
SIX MONTHS ENDED OF OPERATIONS) TO
APRIL 30, 1997 OCTOBER 31, 1996
<S> <C> <C>
Net asset value at beginning of period . . . . . . . . . . . . . $ 21.57 $ 19.67
------- -------
INVESTMENT OPERATIONS:
Net investment income. . . . . . . . . . . . . . . . . . . . 0.22 0.56
Net realized and unrealized gain (loss)
on investments and foreign currency. . . . . . . . . . . . . 0.71 1.34
------- -------
INCREASE (DECREASE) FROM INVESTMENT
OPERATIONS . . . . . . . . . . . . . . . . . . . . . . . . . 0.93 1.90
------- -------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS. . . . . . . . . . . (0.78) 0.00
------- -------
LIQUIDATION REDEMPTION(g). . . . . . . . . . . . . . . . . . . . (21.72) 0.00
------- -------
NET ASSET VALUE AT END OF PERIOD . . . . . . . . . . . . . . . . $ 0.00 $ 21.57
------- -------
------- -------
MARKET PRICE AT END OF PERIOD. . . . . . . . . . . . . . . . . . $ 0.00 $ 21.50
------- -------
------- -------
TOTAL RETURN BASED ON:
Net asset value (c) . . . . . . . . . . . . . . . . . . . . 4.37% (a) (h) 9.66% (a)
RATIOS AND SUPPLEMENTAL DATA:
Net assets at end of period (000's). . . . . . . . . . . . . $ 0.000 $ 10,796
RATIO TO AVERAGE NET ASSETS:
Expenses (b) (d) . . . . . . . . . . . . . . . . . . . . . . 1.13% 1.00%
Net investment income (b). . . . . . . . . . . . . . . . . . 2.57% 3.76%
Portfolio turnover rate (a) (e). . . . . . . . . . . . . . . 0.24% 4.07%
Average brokerage commissions (f). . . . . . . . . . . . . . . $ 0.0091 $ 0.0074
</TABLE>
(a) Not annualized.
(b) Annualized.
(c) Total return based on net asset value, excluding the effect of shareholder
transaction charges, assumes a purchase of common stock at the opening
price on the commencement date of operations and a sale on the last day of
the period or upon liquidation date, whichever is applicable, also at net
asset value. During the period, total return based on net asset value would
have been lower had certain fees and expenses not been reimbursed and/or
waived by the Administrator and the Adviser.
(d) Net of certain fees and expenses reimbursed and/or waived by the
Administrator for the period ended October 31, 1996 and the Adviser for the
period ended October 31, 1996 and April 30, 1997. Had the Administrator and
the Adviser not undertaken to reimburse and/waive such fees and expenses,
the ratio of expenses to average net assets would have been 5.29% for 1997
and 4.47% for 1996.
(e) Excludes securities received or delivered as a result of processing capital
share transactions in Creation Unit(s).
(f) Represents average brokerage commission rate per share of total security
trades on which brokerage commissions were charged.
(g) See Note 8 in the Notes to Financial Statements.
(h) The total return is calculated through liquidation (See note 8).
<PAGE>
THE COUNTRYBASKETS-SM- INDEX FUND, INC.
FINANCIAL HIGHLIGHTS (CONTINUED) (UNAUDITED)
SELECTED DATA FOR A SHARE OF COMMON STOCK OUTSTANDING THROUGHOUT
THE PERIODS INDICATED
<TABLE>
<CAPTION>
FRANCE INDEX SERIES
-------------------
PERIOD FROM
MARCH 28, 1996
(COMMENCEMENT
SIX MONTHS ENDED OF OPERATIONS) TO
APRIL 30, 1997 OCTOBER 31, 1996
<S> <C> <C>
Net asset value at beginning of period . . . . . . . . . . . . . . . . $ 40.51 $ 37.70
------- -------
INVESTMENT OPERATIONS:
Net investment income . . . . . . . . . . . . . . . . . . . . . . 0.55 0.59
Net realized and unrealized gain (loss)
on investments and foreign currency. . . . . . . . . . . . . . . 2.30 2.22
------- -------
INCREASE (DECREASE) FROM INVESTMENT
OPERATIONS. . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.85 2.81
------- -------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS. . . . . . . . . . . . . . (1.13) 0.00
------- -------
LIQUIDATION REDEMPTION(g). . . . . . . . . . . . . . . . . . . . . . . (42.23) 0.00
------- -------
NET ASSET VALUE AT END OF PERIOD . . . . . . . . . . . . . . . . . . . $ 0.00 $ 40.51
------- -------
------- -------
MARKET PRICE AT END OF PERIOD. . . . . . . . . . . . . . . . . . . . . $ 0.00 $40.625
------- -------
------- -------
TOTAL RETURN BASED ON:
Net asset value (c) . . . . . . . . . . . . . . . . . . . . . . . 7.13% (a) (h) 7.45% (a)
RATIOS AND SUPPLEMENTAL DATA:
Net assets at end of period (000's) . . . . . . . . . . . . . . . $ 0.000 $ 44,574
RATIO TO AVERAGE NET ASSETS:
Expenses (b) (d) . . . . . . . . . . . . . . . . . . . . . . . 1.10% 1.00%
Net investment income (b). . . . . . . . . . . . . . . . . . . (0.02%) 2.72%
Portfolio turnover rate (a) (e) . . . . . . . . . . . . . . . . . 0.00% 7.82%
Average brokerage commissions (f) . . . . . . . . . . . . . . . . $ 0.0172 $ 0.0530
</TABLE>
(a) Not annualized.
(b) Annualized.
(c) Total return based on net asset value, excluding the effect of shareholder
transaction charges, assumes a purchase of common stock at the opening
price on the commencement date of operations and a sale on the last day of
the period or upon liquidation date, whichever is applicable, also at net
asset value. During the period, total return based on net asset value would
have been lower had certain fees and expenses not been reimbursed and/or
waived by the Administrator and the Adviser.
(d) Net of certain fees and expenses reimbursed and/or waived by the
Administrator for the period ended October 31, 1996 and the Adviser for the
period ended October 31, 1996 and April 30, 1997. Had the Administrator and
the Adviser not undertaken to reimburse and/waive such fees and expenses,
the ratio of expenses to average net assets would have been 2.07% for 1997
and 1.93% for 1996.
(e) Excludes securities received or delivered as a result of processing capital
share transactions in Creation Unit(s).
(f) Represents average brokerage commission rate per share of total security
trades on which brokerage commissions were charged.
(g) See Note 8 in the Notes to Financial Statements.
(h) The total return is calculated through liquidation (See note 8).
<PAGE>
THE COUNTRYBASKETS-SM- INDEX FUND, INC.
FINANCIAL HIGHLIGHTS (CONTINUED) (UNAUDITED)
SELECTED DATA FOR A SHARE OF COMMON STOCK OUTSTANDING THROUGHOUT
THE PERIODS INDICATED
<TABLE>
<CAPTION>
GERMANY INDEX SERIES
--------------------
PERIOD FROM
MARCH 22, 1996
(COMMENCEMENT OF
SIX MONTHS ENDED OPERATIONS) TO
APRIL 30, 1997 OCTOBER 31, 1996
<S> <C> <C>
Net asset value at beginning of period . . . . . . . . . . . . . . . . . . $ 36.20 $ 34.67
------- ------
INVESTMENT OPERATIONS:
Net investment income . . . . . . . . . . . . . . . . . . . . . . . . 0.04 0.26
Net realized and unrealized gain (loss)
on investments and foreign currency. . . . . . . . . . . . . . . . . 3.19 1.27
------- -------
INCREASE (DECREASE) FROM INVESTMENT
OPERATIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.23 1.53
------- -------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS. . . . . . . . . . . . . . . . (0.30) 0.00
------- -------
LIQUIDATION REDEMPTION(g). . . . . . . . . . . . . . . . . . . . . . . . . (39.13) 0.00
------- -------
NET ASSET VALUE AT END OF PERIOD . . . . . . . . . . . . . . . . . . . . . $ 0.00 $ 36.20
------- -------
------- -------
TOTAL RETURN BASED ON
Net asset value (c) . . . . . . . . . . . . . . . . . . . . . . . . . 8.95% (a) (h) 4.41% (a)
RATIOS AND SUPPLEMENTAL DATA:
Net assets at end of period (000's) . . . . . . . . . . . . . . . . . $ 0.000 $ 21,731
RATIO TO AVERAGE NET ASSETS:
Expenses (b) (d) . . . . . . . . . . . . . . . . . . . . . . . . . 1.19% 1.00%
Net investment income (b). . . . . . . . . . . . . . . . . . . . . (.35%) 1.24%
Portfolio turnover rate (a) (e) . . . . . . . . . . . . . . . . . . . 4.86% 2.83%
Average brokerage commissions (f) . . . . . . . . . . . . . . . . . . $ 0.0636 $ 0.0951
</TABLE>
(a) Not annualized.
(b) Annualized.
(c) Total return based on net asset value, excluding the effect of shareholder
transaction charges, assumes a purchase of common stock at the opening
price on the commencement date of operations and a sale on the last day of
the period or upon liquidation date, whichever is applicable, also at net
asset value. During the period, total return based on net asset value would
have been lower had certain fees and expenses not been reimbursed and/or
waived by the Administrator and the Adviser.
(d) Net of certain fees and expenses reimbursed and/or waived by the
Administrator for the period ended October 31, 1996 and the Adviser for the
period ended October 31, 1996 and April 30, 1997. Had the Administrator and
the Adviser not undertaken to reimburse and/waive such fees and expenses,
the ratio of expenses to average net assets would have been 3.31% for 1997
and 2.86% for 1996.
(e) Excludes securities received or delivered as a result of processing capital
share transactions in Creation Unit(s).
(f) Represents average brokerage commission rate per share of total security
trades on which brokerage commissions were charged.
(g) See Note 8 in the Notes to Financial Statements.
(h) The total return is calculated through liquidation (See note 8).
<PAGE>
THE COUNTRYBASKETS-SM- INDEX FUND, INC.
FINANCIAL HIGHLIGHTS (CONTINUED) (UNAUDITED)
SELECTED DATA FOR A SHARE OF COMMON STOCK OUTSTANDING THROUGHOUT
THE PERIODS INDICATED
<TABLE>
<CAPTION>
HONG KONG INDEX SERIES
----------------------
PERIOD FROM
MARCH 25, 1996
(COMMENCEMENT
SIX MONTHS ENDED OF OPERATIONS) TO
APRIL 30, 1997 OCTOBER 31, 1996
<S> <C> <C>
Net asset value at beginning of period . . . . . . . . . . . . . . . . $ 32.06 $ 29.14
------- -------
INVESTMENT OPERATIONS:
Net investment income . . . . . . . . . . . . . . . . . . . . . . 0.44 1.18
Net realized and unrealized gain (loss)
on investments and foreign currency. . . . . . . . . . . . . . . 0.75 1.74
------- -------
INCREASE (DECREASE) FROM INVESTMENT
OPERATIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.19 2.92
------- -------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS. . . . . . . . . . . . . . (1.62) 0.00
------- -------
LIQUIDATION REDEMPTION(g). . . . . . . . . . . . . . . . . . . . . . . (31.63) 0.00
------- -------
NET ASSET VALUE AT END OF PERIOD . . . . . . . . . . . . . . . . . . . $ 0.00 $ 32.06
------- -------
------- -------
MARKET PRICE AT END OF PERIOD. . . . . . . . . . . . . . . . . . . . . $ 0.00 $ 32.00
------- -------
------- -------
TOTAL RETURN BASED ON
Net asset value (c) . . . . . . . . . . . . . . . . . . . . . . . 3.39%(a) (h) 10.02% (a)
RATIOS AND SUPPLEMENTAL DATA:
Net assets at end of period (000's) . . . . . . . . . . . . . . . $ 0.000 $ 16,043
RATIO TO AVERAGE NET ASSETS:
Expenses (b) (d) . . . . . . . . . . . . . . . . . . . . . . . 1.22% 1.00%
Net investment income (b). . . . . . . . . . . . . . . . . . . 1.45% 3.62%
Portfolio turnover rate (a) (e) . . . . . . . . . . . . . . . . . 0.00% 3.22%
Average brokerage commissions (f) . . . . . . . . . . . . . . . . $ 0.0055 $ 0.0041
</TABLE>
(a) Not annualized.
(b) Annualized.
(c) Total return based on net asset value, excluding the effect of shareholder
transaction charges, assumes a purchase of common stock at the opening
price on the commencement date of operations and a sale on the last day of
the period or upon liquidation date, whichever is applicable, also at net
asset value. During the period, total return based on net asset value would
have been lower had certain fees and expenses not been reimbursed and/or
waived by the Administrator and the Adviser.
(d) Net of certain fees and expenses reimbursed and/or waived by the
Administrator for the period ended October 31, 1996 and the Adviser for the
period ended October 31, 1996 and April 30, 1997. Had the Administrator and
the Adviser not undertaken to reimburse and/waive such fees and expenses,
the ratio of expenses to average net assets would have been 3.51% for 1997
and 2.57% for 1996.
(e) Excludes securities received or delivered as a result of processing capital
share transactions in Creation Unit(s).
(f) Represents average brokerage commission rate per share of total security
trades on which brokerage commissions were charged.
(g) See Note 8 in the Notes to Financial Statements.
(h) The total return is calculated through liquidation (See note 8).
<PAGE>
THE COUNTRYBASKETS-SM- INDEX FUND, INC.
FINANCIAL HIGHLIGHTS (CONTINUED) (UNAUDITED)
SELECTED DATA FOR A SHARE OF COMMON STOCK OUTSTANDING THROUGHOUT
THE PERIODS INDICATED
<TABLE>
<CAPTION>
ITALY INDEX SERIES
------------------
PERIOD FROM
MARCH 28, 1997
(COMMENCEMENT
SIX MONTHS ENDED OF OPERATIONS) TO
APRIL 30, 1997 OCTOBER 31, 1996
<S> <C> <C>
Net asset value at beginning of period . . . . . . . . . . . . . . . . $ 26.64 $ 24.61
------- -------
INVESTMENT OPERATIONS:
Net investment income . . . . . . . . . . . . . . . . . . . . . . 0.62 0.40
Net realized and unrealized gain (loss)
on investments and foreign currency. . . . . . . . . . . . . . . 4.80 1.63
------- -------
INCREASE (DECREASE) FROM INVESTMENT
OPERATIONS. . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.42 2.03
------- -------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS. . . . . . . . . . . . . . (1.02) 0.00
------- -------
LIQUIDATION REDEMPTION(g). . . . . . . . . . . . . . . . . . . . . . . (31.04) 0.00
------- -------
NET ASSET VALUE AT END OF PERIOD . . . . . . . . . . . . . . . . . . . $ 0.00 $ 26.64
------- -------
------- -------
MARKET PRICE AT END OF PERIOD. . . . . . . . . . . . . . . . . . . . . $ 0.00 $ 26.75
------- -------
------- -------
TOTAL RETURN BASED ON
Net asset value(c). . . . . . . . . . . . . . . . . . . . . . . . 20.77%(a) (h) 8.25% (a)
RATIOS AND SUPPLEMENTAL DATA:
Net assets at end of period (000's) . . . . . . . . . . . . . . . $ 0.000 $ 31,985
RATIO TO AVERAGE NET ASSETS:
Expenses (b) (d) . . . . . . . . . . . . . . . . . . . . . . . 1.09% 1.00%
Net investment income (b). . . . . . . . . . . . . . . . . . . (0.37%) 2.43%
Portfolio turnover rate (a) (e) . . . . . . . . . . . . . . . . . 14.42% 18.49%
Average brokerage commissions (f) . . . . . . . . . . . . . . . . $ 0.0035 $ 0.0030
</TABLE>
(a) Not annualized.
(b) Annualized.
(c) Total return based on net asset value, excluding the effect of shareholder
transaction charges, assumes a purchase of common stock at the opening
price on the commencement date of operations and a sale on the last day of
the period or upon liquidation date, whichever is applicable, also at net
asset value. During the period, total return based on net asset value would
have been lower had certain fees and expenses not been reimbursed and/or
waived by the Administrator and the Adviser.
(d) Net of certain fees and expenses reimbursed and/or waived by the
Administrator for the period ended October 31, 1996 and the Adviser for the
period ended October 31, 1996 and April 30, 1997. Had the Administrator and
the Adviser not undertaken to reimburse and/waive such fees and expenses,
the ratio of expenses to average net assets would have been 2.54% for 1997
and 2.18% for 1996.
(e) Excludes securities received or delivered as a result of processing capital
share transactions in Creation Unit(s).
(f) Represents average brokerage commission rate per share of total security
trades on which brokerage commissions were charged.
(g) See Note 8 in the Notes to Financial Statements.
(h) The total return is calculated through liquidation (See note 8).
<PAGE>
THE COUNTRYBASKETS-SM- INDEX FUND, INC.
FINANCIAL HIGHLIGHTS (CONTINUED) (UNAUDITED)
SELECTED DATA FOR A SHARE OF COMMON STOCK OUTSTANDING THROUGHOUT
THE PERIODS INDICATED
<TABLE>
<CAPTION>
JAPAN INDEX SERIES
------------------
PERIOD FROM
MARCH 22, 1996
(COMMENCEMENT
SIX MONTHS ENDED OF OPERATIONS) TO
APRIL 30, 1997 OCTOBER 31, 1996
<S> <C> <C>
Net asset value at beginning of period . . . . . . . . . . . . . . . . $ 34.81 $ 37.98
------- -------
INVESTMENT OPERATIONS:
Net investment income . . . . . . . . . . . . . . . . . . . . . . 0.05 0.00
Net realized and unrealized gain (loss)
on investments and foreign currency. . . . . . . . . . . . . . . (5.60) (3.17)
------- -------
INCREASE (DECREASE) FROM INVESTMENT
OPERATIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (5.55) (3.17)
------- -------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS. . . . . . . . . . . . . . (0.05) 0.00
------- -------
LIQUIDATION REDEMPTION(g). . . . . . . . . . . . . . . . . . . . . . . (29.21) 0.00
------- -------
NET ASSET VALUE AT END OF PERIOD . . . . . . . . . . . . . . . . . . . $ 0.00 $ 34.81
------- -------
------- -------
MARKET PRICE AT END OF PERIOD. . . . . . . . . . . . . . . . . . . . . $ 0.00 $34.875
------- -------
------- -------
TOTAL RETURN BASED ON
Net asset value(c). . . . . . . . . . . . . . . . . . . . . . . . (15.99)% (a) (h) (8.35)% (a)
RATIOS AND SUPPLEMENTAL DATA:
Net assets at end of period (000's) . . . . . . . . . . . . . . . $ 0.000 $ 69,628
RATIO TO AVERAGE NET ASSETS:
Expenses (b) (d) . . . . . . . . . . . . . . . . . . . . . . . 1.00% 1.00%
Net investment income (b). . . . . . . . . . . . . . . . . . . (0.66%) 0.01%
Portfolio turnover rate (a) (e) . . . . . . . . . . . . . . . . . 0.68% 5.31%
Average brokerage commissions (f) . . . . . . . . . . . . . . . . $ 0.0112 $ 0.0156
</TABLE>
(a) Not annualized.
(b) Annualized.
(c) Total return based on net asset value, excluding the effect of shareholder
transaction charges, assumes a purchase of common stock at the opening
price on the commencement date of operations and a sale on the last day of
the period or upon liquidation date, whichever is applicable, also at net
asset value. During the period, total return based on net asset value would
have been lower had certain fees and expenses not been reimbursed and/or
waived by the Administrator and the Adviser.
(d) Net of certain fees and expenses reimbursed and/or waived by the
Administrator for the period ended October 31, 1996 and the Adviser for the
period ended October 31, 1996 and April 30, 1997. Had the Administrator and
the Adviser not undertaken to reimburse and/waive such fees and expenses,
the ratio of expenses to average net assets would have been 1.60% for 1997
and 1.46% for 1996.
(e) Excludes securities received or delivered as a result of processing capital
share transactions in Creation Unit(s).
(f) Represents average brokerage commission rate per share of total security
trades on which brokerage commissions were charged.
(g) See Note 8 in the Notes to Financial Statements.
(h) The total return is calculated through liquidation (See note 8).
<PAGE>
THE COUNTRYBASKETS-SM- INDEX FUND, INC.
FINANCIAL HIGHLIGHTS (CONTINUED) (UNAUDITED)
SELECTED DATA FOR A SHARE OF COMMON STOCK OUTSTANDING THROUGHOUT
THE PERIODS INDICATED
<TABLE>
<CAPTION>
SOUTH AFRICA INDEX SERIES
-------------------------
PERIOD FROM
APRIL 1, 1996
(COMMENCEMENT
SIX MONTHS ENDED OF OPERATIONS) TO
APRIL 30, 1997 OCTOBER 31, 1996
<S> <C> <C>
Net asset value at beginning of period . . . . . . . . . . . . . . . . $ 17.68 $ 20.13
------- -------
INVESTMENT OPERATIONS:
Net investment income . . . . . . . . . . . . . . . . . . . . . . 0.14 0.17
Net realized and unrealized gain (loss)
on investments and foreign currency. . . . . . . . . . . . . . . 0.75 (2.62)
------- -------
INCREASE (DECREASE) FROM INVESTMENT
OPERATIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.89 (2.45)
------- -------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS. . . . . . . . . . . . . . (0.29) 0.00
------- -------
LIQUIDATION REDEMPTION(g). . . . . . . . . . . . . . . . . . . . . . . (18.28) 0.00
------- -------
NET ASSET VALUE AT END OF PERIOD . . . . . . . . . . . . . . . . . . . $ 0.00 $ 17.68
------- -------
------- -------
MARKET PRICE AT END OF PERIOD. . . . . . . . . . . . . . . . . . . . . $ 0.00 $ 17.75
------- -------
------- -------
TOTAL RETURN BASED ON
Net asset value (c) . . . . . . . . . . . . . . . . . . . . . . . 5.17% (a) (h) (12.17%) (a)
RATIOS AND SUPPLEMENTAL DATA:
Net assets at end of period (000's) . . . . . . . . . . . . . . . $ 0.000 $ 15,926
RATIO TO AVERAGE NET ASSETS:
Expenses (b) (d) . . . . . . . . . . . . . . . . . . . . . . . 1.40% 1.00%
Net investment income (b). . . . . . . . . . . . . . . . . . . 0.41% 1.53%
Portfolio turnover rate (a) (e) . . . . . . . . . . . . . . . . . 0.64% 2.19%
Average brokerage commissions (f) . . . . . . . . . . . . . . . . $ 0.0906 $ 0.0163
</TABLE>
(a) Not annualized.
(b) Annualized.
(c) Total return based on net asset value, excluding the effect of shareholder
transaction charges, assumes a purchase of common stock at the opening
price on the commencement date of operations and a sale on the last day of
the period or upon liquidation date, whichever is applicable, also at net
asset value. During the period, total return based on net asset value would
have been lower had certain fees and expenses not been reimbursed and/or
waived by the Administrator and the Adviser.
(d) Net of certain fees and expenses reimbursed and/or waived by the
Administrator for the period ended October 31, 1996 and the Adviser for the
period ended October 31, 1996 and April 30, 1997. Had the Administrator and
the Adviser not undertaken to reimburse and/waive such fees and expenses,
the ratio of expenses to average net assets would have been 4.84% for 1997
and 3.59% for 1996.
(e) Excludes securities received or delivered as a result of processing capital
share transactions in Creation Unit(s).
(f) Represents average brokerage commission rate per share of total security
trades on which brokerage commissions were charged.
(g) See Note 8 in the Notes to Financial Statements.
(h) The total return is calculated through liquidation (See note 8).
<PAGE>
COUNTRYBASKETS-SM- INDEX FUND, INC.
FINANCIAL HIGHLIGHTS (CONTINUED) (UNAUDITED)
SELECTED DATA FOR A SHARE OF COMMON STOCK OUTSTANDING THROUGHOUT
THE PERIODS INDICATED
<TABLE>
<CAPTION>
UK INDEX SERIES
---------------
PERIOD FROM
MARCH 26, 1996
(COMMENCEMENT
SIX MONTHS ENDED OF OPERATIONS) TO
APRIL 30, 1997 OCTOBER 31, 1996
<S> <C> <C>
Net asset value at beginning of period . . . . . . . . . . . . . . . . $ 44.74 $ 38.42
------- -------
INVESTMENT OPERATIONS:
Net investment income. . . . . . . . . . . . . . . . . . . . . 0.42 0.71
Net realized and unrealized gain (loss)
on investments and foreign currency. . . . . . . . . . . . . . 2.98 5.61
------- -------
INCREASE (DECREASE) FROM INVESTMENT
OPERATIONS . . . . . . . . . . . . . . . . . . . . . . . . . . 3.40 6.32
------- -------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS. . . . . . . . . . . . . . (1.13) 0.00
------- -------
LIQUIDATION REDEMPTION(g). . . . . . . . . . . . . . . . . . . . . . . (47.01) 0.00
------- -------
NET ASSET VALUE AT END OF PERIOD . . . . . . . . . . . . . . . . . . . $ 0.00 $ 44.74
------- -------
------- -------
MARKET PRICE AT END OF PERIOD. . . . . . . . . . . . . . . . . . . . . $ 0.00 $ 45.00
------- -------
------- -------
TOTAL RETURN BASED ON
Net asset value (c) . . . . . . . . . . . . . . . . . . . . . . . 7.75% (a) (h) 16.45% (a)
RATIOS AND SUPPLEMENTAL DATA:
Net assets at end of period (000's) . . . . . . . . . . . . . . . $ 0.000 $ 13,435
RATIO TO AVERAGE NET ASSETS:
Expenses (b) (d) . . . . . . . . . . . . . . . . . . . . . . . 1.20% 1.00%
Net investment income (b). . . . . . . . . . . . . . . . . . . 1.30% 2.91%
Portfolio turnover rate (a) (e) . . . . . . . . . . . . . . . . . 0.96% 3.19%
Average brokerage commissions (f) . . . . . . . . . . . . . . . . $ 0.0120 $ 0.0080
</TABLE>
(a) Not annualized.
(b) Annualized.
(c) Total return based on net asset value, excluding the effect of shareholder
transaction charges, assumes a purchase of common stock at the opening
price on the commencement date of operations and a sale on the last day of
the period or upon liquidation date, whichever is applicable, also at net
asset value. During the period, total return based on net asset value would
have been lower had certain fees and expenses not been reimbursed and/or
waived by the Administrator and the Adviser.
(d) Net of certain fees and expenses reimbursed and/or waived by the
Administrator for the period ended October 31, 1996 and the Adviser for the
period ended October 31, 1996 and April 30, 1997. Had the Administrator and
the Adviser not undertaken to reimburse and/waive such fees and expenses,
the ratio of expenses to average net assets would have been 4.32% for 1997
and 4.61% for 1996.
(e) Excludes securities received or delivered as a result of processing capital
share transactions in Creation Unit(s).
(f) Represents average brokerage commission rate per share of total security
trades on which brokerage commissions were charged.
(g) See Note 8 in the Notes to Financial Statements.
(h) The total return is calculated through liquidation (See note 8).
<PAGE>
THE COUNTRYBASKETS-SM- INDEX FUND, INC.
FINANCIAL HIGHLIGHTS (CONTINUED) (UNAUDITED)
SELECTED DATA FOR A SHARE OF COMMON STOCK OUTSTANDING THROUGHOUT
THE PERIODS INDICATED
<TABLE>
<CAPTION>
US INDEX SERIES
---------------
PERIOD FROM
MARCH 20, 1996
(COMMENCEMENT
SIX MONTHS ENDED OF OPERATIONS) TO
APRIL 30, 1997 OCTOBER 31, 1996
<S> <C> <C>
Net asset value at beginning of period . . . . . . . . . . . . . . . . $ 57.26 $ 53.14
------- -------
INVESTMENT OPERATIONS:
Net investment income . . . . . . . . . . . . . . . . . . . . . . 0.18 0.61
Net realized and unrealized gain (loss)
on investments and foreign currency. . . . . . . . . . . . . . . 8.42 3.90
------- -------
INCREASE (DECREASE) FROM INVESTMENT
OPERATIONS. . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.60 4.51
------- -------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS. . . . . . . . . . . . . . (0.40) (0.39)
------- -------
LIQUIDATION REDEMPTION(g). . . . . . . . . . . . . . . . . . . . . . . (65.46) (0.00)
------- -------
NET ASSET VALUE AT END OF PERIOD . . . . . . . . . . . . . . . . . . . $ 0.00 $ 57.26
------- -------
------- -------
MARKET PRICE AT END OF PERIOD. . . . . . . . . . . . . . . . . . . . . $ 0.00 $ 57.00
------- -------
------- -------
TOTAL RETURN BASED ON
Net asset value (c) . . . . . . . . . . . . . . . . . . . . . . . 15.08% (a) (h) 8.50% (a)
Market price (a) (c). . . . . . . . . . . . . . . . . . . . . . . --( i) 7.29%
RATIOS AND SUPPLEMENTAL DATA:
Net assets at end of period (000's) . . . . . . . . . . . . . . . $ 0.000 $ 17,189
RATIO TO AVERAGE NET ASSETS:
Expenses (b) (d) . . . . . . . . . . . . . . . . . . . . . . . 1.13% 1.00%
Net investment income (b). . . . . . . . . . . . . . . . . . . 0.99% 1.09%
Portfolio turnover rate (a) (e) . . . . . . . . . . . . . . . . . 0.00% 1.45%
Average brokerage commissions (f) . . . . . . . . . . . . . . . . $ 0.0717 $ 0.0419
</TABLE>
(a) Not annualized.
(b) Annualized.
(c) Total return based on net asset value, excluding the effect of shareholder
transaction charges, assumes a purchase of common stock at the opening
price on the commencement date of operations and a sale on the last day of
the period or upon liquidation date, whichever is applicable, also at net
asset value. During the period, total return based on net asset value would
have been lower had certain fees and expenses not been reimbursed and/or
waived by the Administrator and the Adviser.
(d) Net of certain fees and expenses reimbursed and/or waived by the
Administrator for the period ended October 31, 1996 and the Adviser for the
period ended October 31, 1996 and April 30, 1997. Had the Administrator and
the Adviser not undertaken to reimburse and/waive such fees and expenses,
the ratio of expenses to average net assets would have been 3.57% for 1997
and 2.34% for 1996.
(e) Excludes securities received or delivered as a result of processing capital
share transactions in Creation Unit(s).
(f) Represents average brokerage commission rate per share of total security
trades on which brokerage commissions were charged.
(g) See Note 8 in the Notes to Financial Statements.
(h) The total return is calculated through liquidation (See note 8).
<PAGE>
THE COUNTRYBASKETS-SM- INDEX FUND, INC.
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
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 organized in series ("Series"). As more fully described in
Note 8, effective February 7, 1997, the stockholders approved a Plan of Complete
Liquidation and Dissolution of the Fund, and on April 11, 1997, the Fund was
dissolved as a Maryland Corporation.
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:
INVESTMENT TRANSACTIONS: Investment transactions have been recorded on the
trade date. Cost of securities sold delivered has been calculated using the
identified cost method. Dividend income has been recorded on the ex-dividend
date and interest income on an accrual basis. Such dividend income and interest
income was recorded net of the unrecoverable portion of any applicable foreign
withholding tax.
FOREIGN CURRENCY TRANSLATION: The books and records of the Fund have been
maintained in US dollars. Assets and liabilities denominated in foreign currency
amounts were 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 were reported at the prevailing
exchange rate on the respective dates of such transactions. The resultant gains
and losses arising from exchange rate fluctuations have been identified
separately in the Statement 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.
EXPENSES: Expenses have been recorded on an accrual basis. Expenses of the
Series which were directly identifiable to a specific Series were allocated to
that Series. Expenses not directly attributed to a specific Series were
allocated among the Series in such a manner as deemed equitable by the Board of
Directors.
DISTRIBUTION TO STOCKHOLDERS: Dividends from net investment income, of all
Series other than the US Index Series were declared and paid at least annually
and, in the case of the US Index Series, quarterly. Capital gains of each
Series, if any, were distributed at least annually. Dividends and capital gains
distributions were distributed by each Series in US dollars. The Fund recorded
all distributions to stockholders on the ex-dividend date.
Income and capital gain distributions were 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 were not affected.
DEFERRED ORGANIZATION COSTS: The costs of organizing the Fund were paid by
Deutsche Morgan Grenfell Inc. ("DMG"), investment adviser to the Fund (the
"Adviser").
The initial shares of each Series issued to the Fund's distributor, ALPS Mutual
Fund Services, Inc., were redeemed on each Series' liquidation date.
LOANS OF PORTFOLIO SECURITIES: Each Series of the Fund, with the exception of
the UK Index Series, loaned portfolio securities while it continued to earn
dividends on such securities loaned. In connection with the lending of the
portfolio of securities, the Series received 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 was marked-
to-market on a
<PAGE>
daily basis and additional collateral was requested from the borrower, as
necessary, to ensure that its value was at least equal to 100 percent of the
securities loaned at all times. Cash collateral received was 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, was recorded on an accrual
basis. Income earned on non-cash collateral was based on a percentage of the
market value of the securities loaned and was 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 entered into an Investment Management Agreement (the "Management
Agreement") with DMG, an indirect subsidiary of Deutsche Bank AG. As the
Adviser, DMG provided investment advisory, management and certain administrative
services, including services in connection with the lending of portfolio
securities. For its services, DMG was 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
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 provided that DMG be reimbursed for out-of-pocket
expenses incurred in providing certain administrative services.
The Fund entered into an Administration Agreement with State Street Bank and
Trust Company (the "Administrator"). Under the Administration Agreement, the
Fund paid 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 served as
custodian and transfer agent of the Fund.
ALPS Mutual Fund Services, Inc. ("the Distributor") served as distributor of the
shares of the Series. The Fund established a Rule 12b-1 plan for each Series
(each, a "Plan"), pursuant to which each Series paid 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 was
also paid a marketing fee, received contributions from the Fund toward certain
bonus payments made to the Distributor, and was reimbursed for certain expenses.
Each Series also paid certain expenses relating to printing and distributing
prospectuses and made payments due to dealers and other persons for marketing
and stockholder services, including payments to each such person entered 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 were made under the Plan of such Series and did not exceed in the
aggregate, on an annualized basis, .25% of the average daily net assets of the
Series.
For the period ending April 30, 1997, DMG received brokerage commissions as a
result of executing agency transactions in portfolio securities on the Italy
Index Series of $833. Certain directors and officers of the Fund were also
directors and officers of the Adviser.
FEE WAIVERS AND EXPENSE REIMBURSEMENTS: To limit the per share expenses
absorbed by stockholders who continued to hold shares of the Series ("CB
shares") through the liquidation period, DMG 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 remained at 1.00%. After
December 31, 1996, the expense cap for each Series was as follows:
<PAGE>
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
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 April 30,1997, were as follows:
<TABLE>
<CAPTION>
Securities Sales Securities
Series Purchases Received Proceeds Delivered
- -------------------------- --------------- ---------------- --------------- -----------------
<S> <C> <C> <C> <C>
Australia Index Series $ 20,588 $ 0 $ 4,414,961 $ 6,422,188
France Index Series 0 0 5,079,114 41,637,004
Germany Index Series 642,702 0 4,562,036 19,076,467
Hong Kong Index Series 0 0 7,542,004 9,163,303
Italy Index Series 2,884,433 0 7,014,187 33,233,046
Japan Index Series 258,180 0 10,463,465 51,420,778
South Africa Index Series 57,679 0 1,904,522 13,726,459
UK Index Series 90,968 0 4,926,273 9,320,474
US Index Series 0 0 6,517,407 12,071,238
</TABLE>
NOTE 5 - PORTFOLIO SECURITIES LOANED
As of April 30, 1997, there were no securities on loan.
NOTE 6 -- CAPITAL
The Fund was authorized to issue 5,000,000,000 shares of common stock. The Board
had authorized nine Series of stock and allocated 200,000,000 shares to each
Series. The Fund sold and redeemed shares of each Series at their respective net
asset value, principally for an in-kind portfolio of equity securities of the
relevant Financial Times Index component, together with a cash component. The
Fund sold and redeemed 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 was 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 imposed 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 were as
follows:
<PAGE>
Percentage fee
Percentage fee imposed on cash
imposed on cash portion of
Series portion of 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 and paid 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 -- LIQUIDATION
On December 20, 1996, the Board of Directors authorized and on February 7, 1997,
the stockholders of the Fund approved at a special meeting of stockholders held
on such date a Plan of Complete Liquidation and Dissolution of the Fund (the
"Plan"). On April 11, 1997, Articles of Dissolution of the Fund were filed with
the Maryland State Department of Assessments and Taxation. Investment
operations of the Australia Index Series, Hong Kong Index Series, UK Index
Series and US Index Series ceased on March 13, 1997 and each such Series paid on
March 14, 1997 a liquidating distribution to stockholders in the amount of the
net asset value of its shares as of the close of business on March 13, 1997.
The distribution amounts were as follows:
SERIES AMOUNT PER SHARE
----------------------- ----------------- -----------------
Australia Index Series $ 4,356,285.37 $ 21.718010
Hong Kong Index Series 6,338,364.05 31.629510
UK Index Series 4,714,777.88 47.007227
US Index Series 6,560,306.02 65.461663
<PAGE>
The France Index Series, German Index Series, Italy Index Series, South Africa
Index Series and Japan Index Series ceased investment operations on March 20,
1997 and on March 21, 1997 each paid a liquidating distribution to stockholders
in the amount of the net asset value of its shares as of the close of business
on March 20, 1997. The distribution amounts were as follows:
SERIES AMOUNT PER SHARE
--------------------- ---------------- ----------------
France Index Series $ 4,236,101.22 $ 42.232204
Germany Index Series 3,926,317.54 39.133643
Italy Index Series 3,118,510.95 31.040152
Japan Index Series 7,311,984.47 29.212649
South Africa Index Series 1,838,842.38 18.284022
In connection with the adoption of the Plan by the Board of Directors of the
Fund, the Adviser agreed to assume all costs of the Fund related to the
liquidation, including any unamortized organizational expenses and the costs of
the Fund's solicitation of proxies for the stockholders meeting, as well as all
liabilities of the Fund arising or becoming known after the Fund's first
liquidation distribution and not provided for on the Fund's books at such time.
As of April 30, 1997, the Fund plans to use the remaining cash to pay
outstanding expenses.
