<PAGE>
- --------------------------------------------------------------------------------
Dimensional Investment Group Inc.
DFA International Value Portfolio IV
Semi-Annual Report
Six Months Ended May 31, 1999
(Unaudited)
-------------------------------------
<PAGE>
DIMENSIONAL INVESTMENT GROUP INC.
DFA INTERNATIONAL VALUE PORTFOLIO IV
SEMI-ANNUAL REPORT
(UNAUDITED)
TABLE OF CONTENTS
<TABLE>
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PAGE
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DIMENSIONAL INVESTMENT GROUP INC.
Statement of Assets and Liabilities................................. 1
Statement of Operations............................................. 2
Statements of Changes in Net Assets................................. 3
Financial Highlights................................................ 4
Notes to Financial Statements....................................... 5-6
THE DFA INVESTMENT TRUST COMPANY -- THE DFA INTERNATIONAL VALUE SERIES
Schedule of Investments............................................. 7-14
Statement of Assets and Liabilities................................. 15
Statement of Operations............................................. 16
Statements of Changes in Net Assets................................. 17
Financial Highlights................................................ 18
Notes to Financial Statements....................................... 19-20
</TABLE>
This report is submitted for the information of the Fund's shareholders. It is
not authorized for distribution to prospective investors unless preceded or
accompanied by an effective prospectus.
i
<PAGE>
DIMENSIONAL INVESTMENT GROUP INC.
DFA INTERNATIONAL VALUE PORTFOLIO IV
STATEMENT OF ASSETS AND LIABILITIES
(UNAUDITED)
MAY 31, 1999
(AMOUNTS IN THOUSANDS, EXCEPT SHARE AMOUNTS)
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ASSETS:
Investment in The DFA International Value Series of The DFA Investment Trust Company
(8,743,697 Shares, Cost $104,809)++ at Value.......................................... $ 107,985
Receivable from Sponsor................................................................. 113
Receivable for Fund Shares Sold......................................................... 236
Prepaid Expenses and Other Assets....................................................... 27
------------
Total Assets........................................................................ 108,361
------------
LIABILITIES:
Payable for Investment Securities Purchased............................................. 236
Accrued Expenses and Other Liabilities.................................................. 34
------------
Total Liabilities................................................................... 270
------------
NET ASSETS.............................................................................. $ 108,091
------------
------------
SHARES OUTSTANDING, $.01 PAR VALUE
(Authorized 100,000,000).............................................................. 10,534,869
------------
------------
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE................................ $ 10.26
------------
------------
NET ASSETS CONSIST OF:
Paid-In Capital......................................................................... $ 106,725
Accumulated Net Investment Loss......................................................... (35)
Accumulated Net Realized Loss........................................................... (1,775)
Unrealized Appreciation of Investment Securities........................................ 3,176
------------
Total Net Assets.................................................................... $ 108,091
------------
------------
</TABLE>
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++ The cost for federal income tax purposes is $106,828
See accompanying Notes to Financial Statements.
1
<PAGE>
DIMENSIONAL INVESTMENT GROUP INC.
DFA INTERNATIONAL VALUE PORTFOLIO IV
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED MAY 31, 1999
(UNAUDITED)
(AMOUNTS IN THOUSANDS)
<TABLE>
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INVESTMENT INCOME
Income Distributions Received from The DFA Investment Trust Company................. $ 395
---------
EXPENSES
Administrative Services............................................................. 40
Accounting & Transfer Agent Fees.................................................... 6
Legal Fees.......................................................................... 3
Audit Fees.......................................................................... 1
Filing Fees......................................................................... 11
Shareholders' Reports............................................................... 9
Directors' Fees and Expenses........................................................ 1
Organization Costs.................................................................. 3
Other............................................................................... 1
---------
Total Expenses.................................................................. 75
---------
NET INVESTMENT INCOME............................................................... 320
---------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Capital Gain Distributions Received from The DFA Investment Trust Company............... 218
Net Realized Loss on Investment Securities.............................................. (157)
Change in Unrealized Appreciation (Depreciation) of Investment Securities............... 3,550
---------
NET GAIN ON INVESTMENT SECURITIES................................................... 3,611
---------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS.................................... $ 3,931
---------
---------
</TABLE>
See accompanying Notes to Financial Statements.
2
<PAGE>
DIMENSIONAL INVESTMENT GROUP INC.
THE DFA INTERNATIONAL VALUE PORTFOLIO IV
STATEMENTS OF CHANGES IN NET ASSETS
(AMOUNTS IN THOUSANDS)
<TABLE>
<CAPTION>
SIX MONTHS YEAR
ENDED ENDED
MAY 31, NOV. 30,
1999 1998
------------ ----------
<S> <C> <C>
(UNAUDITED)
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net Investment Income................................................................... $ 320 $ 2,246
Capital Gain Distributions Received from The DFA Investment Trust Company............... 218 259
Net Realized Loss on Investment Securities.............................................. (157) (1,537)
Change in Unrealized Appreciation (Depreciation) of Investment Securities............... 3,550 10,672
------------ ----------
Net Increase in Net Assets Resulting from Operations................................ 3,931 11,640
------------ ----------
Distributions From:
Net Investment Income................................................................... (2,113) (1,342)
Net Realized Gains...................................................................... -- --
------------ ----------
Total Distributions................................................................. (2,113) (1,342)
------------ ----------
Capital Share Transactions (1):
Shares Issued........................................................................... 15,984 15,403
Shares Issued in Lieu of Cash Distributions............................................. 2,113 1,342
Shares Redeemed......................................................................... (10,812) (26,324)
------------ ----------
Net Increase (Decrease) From Capital Share Transactions............................. 7,285 (9,579)
------------ ----------
Capital Contribution from Sponsor........................................................... 224 475
------------ ----------
Total Increase...................................................................... 9,327 1,194
NET ASSETS
Beginning of Period..................................................................... 98,764 97,570
------------ ----------
End of Period........................................................................... $ 108,091 $ 98,764
------------ ----------
------------ ----------
(1) SHARES ISSUED AND REDEEMED:
Shares Issued........................................................................... 1,579 1,591
Shares Issued in Lieu of Cash Distributions............................................. 215 154
Shares Redeemed......................................................................... (1,067) (2,717)
------------ ----------
727 (972)
------------ ----------
------------ ----------
</TABLE>
See accompanying Notes to Financial Statements.
3
<PAGE>
DIMENSIONAL INVESTMENT GROUP INC.
THE DFA INTERNATIONAL VALUE PORTFOLIO IV
FINANCIAL HIGHLIGHTS
(FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD)
<TABLE>
<CAPTION>
SIX MONTHS YEAR AUGUST 15,
ENDED ENDED TO
MAY 31, NOV. 30, NOV. 30,
1999 1998 1997
---------- ---------- ----------
<S> <C> <C> <C>
(UNAUDITED)
Net Asset Value, Beginning of
Period........................... $ 10.07 $ 9.05 $ 10.00
---------- ---------- ----------
INCOME FROM INVESTMENT OPERATIONS
Net Investment Income............ -- 0.23 0.08
Net Gains (Losses) on Securities
(Realized and Unrealized)...... 0.32 0.92 (1.03)
---------- ---------- ----------
Total from Investment
Operations..................... 0.32 1.15 (0.95)
---------- ---------- ----------
LESS DISTRIBUTIONS
Net Investment Income............ (0.13) (0.13) --
Net Realized Gains............... -- -- --
---------- ---------- ----------
Total Distributions.............. (0.13) (0.13) --
---------- ---------- ----------
Net Asset Value, End of Period..... $ 10.26 $ 10.07 $ 9.05
---------- ---------- ----------
---------- ---------- ----------
Total Return....................... 4.14%# 12.74% (9.50)%#
Net Assets, End of Period
(thousands)...................... $ 108,091 $ 98,764 $ 97,570
Ratio of Expenses to Average Net
Assets (1)....................... 0.43%* 0.44%(a) 0.47%*(a)
Ratio of Net Investment Income to
Average Net Assets............... 0.61%* 2.09%(a) 2.65%*(a)
Portfolio Turnover Rate............ N/A N/A N/A
Portfolio Turnover Rate of Master
Fund Series...................... 6.60%* 15.41% 22.55%*(b)
</TABLE>
- --------------
* Annualized
# Non-Annualized
(1) Represents the combined ratio for the Portfolio and its respective pro-rata
share of its Master Fund Series.
(a) The plan's sponsor has voluntarily contributed to the portfolio an amount
equal to that portion of the aggregate fees and expenses incurred by the
portfolio relating to the plan's investment.
(b) Calculated for the year ended November 30, 1997.
N/A Refer to the respective Master Fund Series.
See accompanying Notes to Financial Statements.
4
<PAGE>
DIMENSIONAL INVESTMENT GROUP INC.
NOTES TO FINANCIAL STATEMENTS
(UNAUDITED)
A. ORGANIZATION:
Dimensional Investment Group Inc. (the "Fund") is an open-end management
investment company registered under the Investment Company Act of 1940, whose
shares are offered to institutional investors, retirement plans and clients of
registered investment advisors. The Fund currently offers thirteen portfolios,
of which The DFA International Value Portfolio IV (the "Portfolio") is presented
in this report.
The Portfolio invests all of its assets in The DFA International Value
Series (the "Series") a corresponding series of The DFA Investment Trust
Company. At May 31, 1999, the Portfolio owned 6% of the outstanding shares of
the Series. The financial statements of the Series are included elsewhere in
this report and should be read in conjunction with the financial statements of
the Portfolio.
B. SIGNIFICANT ACCOUNTING POLICIES:
The following significant accounting policies are in conformity with
generally accepted accounting principles for investment companies. Such policies
are consistently followed by the Fund in preparation of its financial
statements. The preparation of financial statements in accordance with generally
accepted accounting principles may require management to make estimates and
assumptions that affect the reported amounts and disclosures in the financial
statements. Actual results could differ from those estimates.
1. SECURITY VALUATION: The shares of the Series held by the Portfolio are
valued at its respective daily net asset value.
2. FEDERAL INCOME TAXES: It is the Portfolio's intention to qualify as a
regulated investment company and distribute all of its taxable income.
Accordingly, no provision for Federal income tax is required in the financial
statements.
3. OTHER: Security transactions are accounted for on the date the
securities are purchased or sold. Costs used in determining realized gains and
losses on the sale of investment securities are those of specific securities
sold. Dividend income and distributions to shareholders are recorded on the
ex-dividend date. Expenses directly attributable to the Portfolio or to the
Series are directly charged. Common expenses are allocated using methods
determined by the Board of Directors.
C. INVESTMENT ADVISOR:
Dimensional Fund Advisors Inc. ("DFA" or the "Advisor") provides
administrative services to the Portfolio, including supervision of services
provided by others, providing information to the shareholders and to the Board
of Directors, and other administrative services. The Advisor provides investment
advisory services to the Series. For the six months ended May 31, 1999, the
Portfolio's administrative fees were computed daily and paid monthly to the
Advisor based on an effective annual rate of 0.20 of 1% of the first $40 million
of average net assets.
Certain officers of the Portfolio are also officers, directors and
shareholders of the Advisor.
Each sponsor of a benefit plan which invests in the Portfolio has agreed to
make a voluntary monthly contribution to the Portfolio in an amount equal to
that portion of the aggregate fees and expenses incurred by the Portfolio
relating to the benefit plan's investment. Such contributions are made in
accordance with the sponsor's practice of bearing the expenses of administering
the benefit plan's investments and are recorded as an addition to paid-in
capital.
5
<PAGE>
D. INVESTMENTS:
At May 31, 1999, gross unrealized appreciation and depreciation for federal
income tax purposes of investment securities was as follows (amounts in
thousands):
<TABLE>
<S> <C>
Gross Unrealized Appreciation............................ $ 1,157
Gross Unrealized Depreciation............................ --
---------
Net...................................................... $ 1,157
---------
---------
</TABLE>
At November 30, 1998, the Portfolio had a capital loss carryover for federal
income tax purposes of approximately $5,400, which expires on November 30, 2006.
E. LINE OF CREDIT:
The Fund, together with other DFA-advised portfolios, has entered into a $50
million unsecured line of credit with its domestic custodian bank. Each
portfolio is permitted to borrow, subject to its investment limitations, up to a
maximum of $50 million. Borrowings under the line are charged interest at the
current overnight federal funds rate plus a variable rate determined at the date
of borrowing. Each portfolio is individually, and not jointly liable for its
particular advances under the line. There is no commitment fee on the unused
portion of the line of credit. There were no borrowings under the line of credit
by the Portfolio during the six months ended May 31, 1999.
6
<PAGE>
THE DFA INTERNATIONAL VALUE SERIES
SCHEDULE OF INVESTMENTS
MAY 31, 1999
(UNAUDITED)
<TABLE>
<CAPTION>
SHARES VALUE+
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JAPAN -- (25.1%)
COMMON STOCKS -- (25.1%)
Aichi Bank, Ltd...................................... 10,500 $ 716,976
Aisin Seiki Co., Ltd................................. 137,000 1,496,772
Amada Co., Ltd....................................... 376,000 2,334,050
Amano Corp........................................... 115,000 869,020
#Aomori Bank, Ltd.................................... 170,000 638,801
Aoyama Trading Co., Ltd.............................. 41,100 1,245,042
Asahi Glass Co., Ltd................................. 140,000 907,300
#Ashikaga Bank, Ltd.................................. 808,000 1,558,219
Autobacs Seven Co., Ltd.............................. 700 27,231
Awa Bank, Ltd........................................ 189,600 894,488
Bank of Ikeda, Ltd................................... 13,000 596,093
Bank of Iwate, Ltd................................... 18,590 763,172
#Bank of Kinki, Ltd.................................. 225,000 519,574
Bank of Kyoto, Ltd................................... 347,400 1,638,950
Bank of Nagoya, Ltd.................................. 185,000 921,784
#Bank of Saga, Ltd................................... 215,000 713,582
Bank of Yokohama, Ltd................................ 978,000 2,590,299
#Best Denki Co., Ltd................................. 153,000 1,076,394
Canon Sales Co., Inc................................. 124,900 1,947,621
Casio Computer Co., Ltd.............................. 60,000 410,694
Chiba Bank, Ltd...................................... 941,000 3,707,300
Chiyoda Fire and Marine Insurance Co., Ltd........... 444,150 1,595,440
Chudenko Corp........................................ 84,460 1,506,466
Chugoku Bank, Ltd.................................... 199,000 2,556,265
Citizen Watch Co., Ltd............................... 317,000 2,335,126
Cosmo Oil Co., Ltd................................... 764,000 1,372,190
Dai Nippon Pharmaceutical Co., Ltd................... 203,000 1,075,318
Dai Tokyo Fire & Marine Insurance Co., Ltd........... 529,000 1,808,285
Daicel Chemical Industries, Ltd...................... 485,000 1,561,538
Daikin Industries, Ltd............................... 160,000 1,443,469
Daisan Bank, Ltd..................................... 78,000 258,235
#Daishi Bank, Ltd.................................... 350,000 1,187,717
Daito Trust Construction Co., Ltd.................... 180,784 1,994,579
#Daiwa Bank, Ltd..................................... 726,000 1,460,172
Daiwa House Industry Co., Ltd........................ 663,000 7,155,702
Daiwa Kosho Lease Co., Ltd........................... 193,000 742,799
Daiwa Securities Co., Ltd............................ 1,693,000 8,940,025
Denki Kagaku Kogyo KK................................ 469,000 830,707
Dowa Fire & Marine Insurance Co., Ltd................ 383,000 1,366,272
Ehime Bank, Ltd...................................... 143,000 544,446
#Eighteenth Bank, Ltd................................ 226,000 1,010,097
Ezaki Glico Co., Ltd................................. 174,600 1,008,697
Fuji Photo Film Co., Ltd............................. 355,000 12,693,261
#Fukui Bank, Ltd..................................... 343,000 846,002
#Fukuoka City Bank, Ltd.............................. 264,532 1,090,357
Fukuyama Transporting Co., Ltd....................... 266,000 1,351,796
Futaba Corp.......................................... 16,000 670,088
Futaba Industrial Co., Ltd........................... 85,000 1,132,677
Hanshin Electric Railway Co., Ltd.................... 141,000 521,660
Higo Bank, Ltd....................................... 308,000 1,312,862
Hino Motors, Ltd..................................... 398,000 1,871,081
Hiroshima Bank, Ltd.................................. 575,000 2,184,448
<CAPTION>
SHARES VALUE+
-------------- --------------
<S> <C> <C>
Hiroshima-Sogo Bank, Ltd............................. 136,000 $ 583,082
#Hitachi Construction Machinery Co., Ltd............. 64,000 415,825
#Hitachi Maxell, Ltd................................. 96,000 1,974,507
#Hitachi Metals, Ltd................................. 360,000 1,728,190
#Hitachi Transport System, Ltd....................... 138,000 920,609
Hitachi, Ltd......................................... 3,717,000 27,349,880
#Hokuetsu Bank....................................... 275,330 754,297
#Hokuetsu Paper Mills, Ltd........................... 162,000 820,592
Hokuriku Bank, Ltd................................... 891,000 1,696,159
House Foods Corp..................................... 115,000 1,715,196
Hyakugo Bank, Ltd. (105th Bank)...................... 258,000 1,057,027
Hyakujishi Bank, Ltd................................. 314,000 1,694,487
Inax Corp............................................ 309,000 2,102,284
Itochu Corp.......................................... 1,198,000 2,726,783
Itoham Foods, Inc.................................... 284,000 1,194,107
#Japan Pulp and Paper Co., Ltd....................... 93,000 308,666
Joyo Bank, Ltd....................................... 19,000 77,057
Jsr Corp., Tokyo..................................... 75,000 458,740
Juroku Bank, Ltd..................................... 349,000 1,291,202
#KDD Corporation..................................... 48,400 2,623,903
Kagoshima Bank, Ltd.................................. 262,000 975,832
#Kajima Corp......................................... 826,000 2,488,528
Kamigumi Co., Ltd.................................... 357,000 1,690,150
Kandenko Co., Ltd.................................... 266,000 1,664,426
Kansai Paint Co., Ltd., Osaka........................ 108,000 327,164
Katokichi Co., Ltd................................... 72,000 958,252
#Kikkoman Corp....................................... 256,000 1,875,186
Kinden Corp.......................................... 67,000 748,634
Kissei Pharmaceutical Co., Ltd....................... 40,000 844,231
Koa Fire & Marine Insurance Co., Ltd................. 45,000 145,257
#Kobe Steel, Ltd..................................... 2,632,000 2,243,800
Koito Manufacturing Co., Ltd......................... 146,000 696,044
#Kokusai Securities Co., Ltd......................... 330,000 3,709,154
Komatsu, Ltd......................................... 1,279,000 7,600,744
#Komori Corp......................................... 74,000 1,264,774
Konica Corp.......................................... 66,000 257,838
Koyo Seiko Co........................................ 198,000 1,230,740
Kureha Chemical Industry Co., Ltd.................... 263,000 653,037
Lion Corp............................................ 311,000 1,320,501
Long Term Credit Bank of Japan, Ltd.................. 994,000 0
Makita Corp.......................................... 209,000 2,276,477
Marubeni Corp........................................ 1,942,000 4,034,447
Maruichi Steel Tube, Ltd............................. 117,000 1,614,294
Matsushita Electric Industrial Co., Ltd.............. 1,933,000 35,037,819
Matsushita Electric Works, Ltd....................... 190,000 1,902,830
Matsushita Refrigeration Co.......................... 222,000 795,613
Matsuzakaya Co., Ltd................................. 30,000 135,325
Mazda Motor Corp..................................... 200,000 955,140
Meiji Seika Kaisha, Ltd. Tokyo....................... 231,000 1,269,525
Michinoku Bank, Ltd.................................. 187,000 855,909
Mitsubishi Chemical Corp............................. 2,129,000 6,044,089
*Mitsubishi Electric Corp............................ 1,683,000 5,362,977
Mitsubishi Gas Chemical Co., Inc..................... 548,000 1,542,129
</TABLE>
7
<PAGE>
THE DFA INTERNATIONAL VALUE SERIES
CONTINUED
<TABLE>
<CAPTION>
SHARES VALUE+
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<S> <C> <C>
Mitsubishi Materials Corp............................ 975,000 $ 1,936,765
*#Mitsubishi Motors Corp............................. 866,000 4,128,587
Mitsui Chemicals, Inc................................ 1,030,800 5,238,463
*Mitsui Engineering and Shipbuilding Co., Ltd........ 781,000 885,590
Mitsui Trust & Banking Co., Ltd...................... 1,030,000 1,560,089
Mori Seiki Co., Ltd.................................. 121,000 1,432,130
Musashino Bank, Ltd.................................. 26,000 1,073,829
NHK Spring Co., Ltd.................................. 315,000 1,486,095
NKK Corp............................................. 2,612,000 2,032,180
NSK, Ltd............................................. 467,000 2,237,982
NTN Corp............................................. 398,000 1,218,838
Namihaya Bank, Ltd................................... 27 54,080
Nanto Bank, Ltd...................................... 288,000 1,430,227
National House Industrial Co., Ltd................... 95,000 770,568
Nichicon Corp........................................ 100,000 1,386,360
Nichirei Corp........................................ 366,000 942,112
Nifco, Inc........................................... 45,000 383,628
Nikko Securities Co., Ltd............................ 1,910,000 8,346,961
*Nippon Credit Bank, Ltd............................. 1,683,000 0
Nippon Flour Mills Co., Ltd.......................... 21,000 53,013
#Nippon Mitsubishi Oil Company....................... 1,598,000 6,441,201
Nippon Sanso Corp.................................... 367,000 1,230,218
Nippon Sheet Glass Co., Ltd.......................... 567,000 1,867,786
Nippon Shokubai Co., Ltd............................. 163,000 961,918
#Nishimatsu Construction Co., Ltd.................... 359,000 1,978,927
Nishi-Nippon Bank, Ltd............................... 23,540 90,209
*Nissan Motor Co., Ltd............................... 38,000 167,323
Nissei Sangyo Co., Ltd............................... 110,050 1,041,112
Nisshin Flour Milling Co., Ltd....................... 89,000 685,069
Nisshin Steel Co., Ltd............................... 1,318,000 1,854,494
Nisshinbo Industries, Inc............................ 305,000 1,211,720
#Nissho Iwai Corp.................................... 544,000 495,282
#Obayashi Corp....................................... 499,000 2,358,293
Ogaki Kyoritsu Bank, Ltd............................. 50,000 209,402
Oita Bank, Ltd....................................... 145,000 684,075
Oji Paper Co., Ltd................................... 275,000 1,593,279
Oki Electric Industry Co., Ltd....................... 740,000 2,572,421
Okumura Corp......................................... 322,000 1,271,263
Penta-Ocean Construction Co., Ltd.................... 438,000 750,422
Pioneer Electronic................................... 182,000 3,020,278
#Q.P. Corp........................................... 168,000 1,222,248
Royal Co., Ltd....................................... 41,000 573,498
Ryosan Co., Ltd...................................... 53,000 943,138
Ryoyo Electro Corp................................... 26,000 271,147
Sakura Bank, Ltd..................................... 816,000 2,769,078
San In Godo Bank, Ltd................................ 222,000 1,282,536
Sanyo Electric....................................... 2,565,000 9,235,018
#Seino Transportation Co., Ltd....................... 197,000 1,206,588
Sekisui Chemical Co., Ltd............................ 557,000 3,448,402
Sekisui House, Ltd................................... 938,000 10,185,862
Sharp Corp. Osaka.................................... 460,000 5,109,418
#Shiga Bank, Ltd..................................... 268,000 1,213,342
Shimachu Co., Ltd.................................... 20,200 458,939
Shimadzu Corp........................................ 181,000 701,109
#Shimizu Corp........................................ 997,000 3,523,580
Shinwa Bank, Ltd..................................... 157,000 435,317
Shionogi & Co., Ltd.................................. 455,000 3,747,103
Showa Shell Sekiyu KK................................ 75,000 422,736
Snow Brand Milk Products Co., Ltd.................... 419,000 2,059,973
Stanley Electric Co., Ltd............................ 246,000 787,965
<CAPTION>
SHARES VALUE+
-------------- --------------
<S> <C> <C>
Sumitomo Corp........................................ 918,000 $ 6,321,601
Sumitomo Forestry Co., Ltd........................... 136,000 1,063,731
Sumitomo Metal Industries, Ltd. Osaka................ 1,481,000 1,949,006
Sumitomo Metal Mining Co., Ltd....................... 313,000 1,279,771
#Sumitomo Realty & Development Co., Ltd.............. 488,000 1,817,580
Sumitomo Trust & Banking Co., Ltd.................... 21,000 86,732
#Sumitomo Warehouse Co., Ltd......................... 67,000 261,190
#Suruga Bank, Ltd.................................... 256,000 1,432,345
TEC Corp............................................. 345,000 1,379,200
TOC Co., Ltd......................................... 66,950 590,148
Taiheiyo Cement Corp................................. 746,000 1,994,355
#Taisei Corp......................................... 1,325,000 2,993,916
Takara Standard Co., Ltd............................. 175,000 1,121,089
#Takashimaya Co., Ltd................................ 206,000 1,875,517
Tanabe Seiyaku Co., Ltd.............................. 164,000 973,249
Teijin, Ltd.......................................... 917,000 3,536,848
Teikoku Oil Co., Ltd................................. 346,000 1,151,233
Toagosei Co., Ltd.................................... 353,000 671,991
Toda Corp............................................ 418,000 2,075,815
Toho Bank, Ltd....................................... 236,000 802,814
Tokuyama Corp........................................ 248,000 796,424
*Tokyo Sowa Bank..................................... 199,000 271,768
Tokyo Steel Manufacturing Co., Ltd................... 202,800 938,298
Tokyo Style Co., Ltd................................. 133,000 1,464,079
#Tokyo Tomin Bank, Ltd............................... 30,900 705,876
Tostem Corp.......................................... 188,000 3,617,778
Toto, Ltd............................................ 247,000 1,903,302
Toyo Seikan Kaisha, Ltd.............................. 287,600 5,463,018
Toyo Suisan Kaisha, Ltd.............................. 116,000 1,015,792
#Toyo Trust & Banking Co., Ltd....................... 715,000 2,071,263
Toyobo Co., Ltd...................................... 468,000 708,856
Toyota Auto Body Co., Ltd............................ 86,000 615,709
Toyota Tsusho Corp................................... 314,000 938,205
#Victor Co. of Japan, Ltd............................ 246,000 1,714,385
Wacoal Corp.......................................... 149,000 1,605,678
Yakult Honsha Co., Ltd............................... 228,000 2,102,234
Yamagata Bank, Ltd................................... 153,700 686,956
Yamaguchi Bank....................................... 133,000 1,229,606
Yamatake-Honeywell Co., Ltd.......................... 87,000 817,290
*#Yasuda Trust & Banking Co., Ltd.................... 1,434,000 1,732,859
Yodogawa Steel Works, Ltd............................ 296,000 1,242,112
Yokogawa Electric Corp............................... 337,000 1,667,985
Yokohama Rubber Co., Ltd............................. 404,000 1,070,021
--------------
TOTAL COMMON STOCKS
(Cost $547,656,066).................................. 419,451,409
--------------
INVESTMENT IN CURRENCY -- (0.0%)
*Japanese Yen
(Cost $6,391)...................................... 6,454
--------------
TOTAL -- JAPAN
(Cost $547,662,457).................................. 419,457,863
--------------
UNITED KINGDOM -- (20.4%)
COMMON STOCKS -- (20.3%)
ASDA Group P.L.C..................................... 2,034,400 5,770,099
Aggregate Industries P.L.C........................... 1,285,488 1,617,005
Aggreko P.L.C........................................ 32,000 112,040
Allied Domecq P.L.C.................................. 146,994 1,409,735
Anglian Water P.L.C.................................. 151,281 1,675,082
</TABLE>
8
<PAGE>
THE DFA INTERNATIONAL VALUE SERIES
CONTINUED
<TABLE>
<CAPTION>
SHARES VALUE+
-------------- --------------
<S> <C> <C>
Antofagasta Holdings P.L.C........................... 38,000 $ 165,016
Arcadia Group P.L.C.................................. 110,588 427,956
Arjo Wiggins Appleton P.L.C.......................... 708,700 2,021,418
*Associated British Foods P.L.C...................... 668,096 5,082,501
Associated British Ports Holdings P.L.C.............. 375,400 1,660,263
BAA P.L.C............................................ 1,055,024 11,335,346
BG P.L.C............................................. 2,574,617 14,161,095
BOC Group P.L.C...................................... 139,300 2,383,944
BPB P.L.C............................................ 408,500 1,931,024
Barclays P.L.C....................................... 608,800 18,467,109
Barratt Developments P.L.C........................... 226,000 1,164,295
Bass P.L.C........................................... 672,200 9,920,459
Beazer Group P.L.C................................... 239,257 741,855
Berkeley Group P.L.C................................. 108,652 1,192,620
Blue Circle Industries P.L.C......................... 326,000 2,020,327
Britannic P.L.C...................................... 119,300 1,886,823
British Airways P.L.C................................ 799,331 5,738,235
British Land Co. P.L.C............................... 471,081 4,151,757
British Steel P.L.C.................................. 1,706,900 3,624,079
British Telecommunications P.L.C..................... 250,000 4,170,272
British Vita P.L.C................................... 216,100 857,045
Brixton Estate P.L.C................................. 235,685 898,840
Burford Holdings P.L.C............................... 337,000 585,913
CGU P.L.C............................................ 1,226,541 17,924,645
Capital Shopping Centres P.L.C....................... 388,375 2,405,329
Caradon P.L.C........................................ 214,000 502,372
*Centrica P.L.C...................................... 810,000 1,641,909
Chelsfield P.L.C..................................... 236,036 1,180,067
Cookson Group P.L.C.................................. 583,000 1,690,911
Diageo P.L.C......................................... 807 8,489
Elementis P.L.C...................................... 621,791 996,364
Enterprise Oil P.L.C................................. 354,000 2,243,486
Glynwed International P.L.C.......................... 140,000 436,336
Grantchester Holdings P.L.C.......................... 12,930 33,565
Great Portland Estates P.L.C......................... 197,275 722,324
Great Universal Stores P.L.C......................... 814,600 8,693,452
Greenalls Group P.L.C................................ 255,461 1,387,708
Hammerson P.L.C...................................... 243,200 1,779,008
Hanson P.L.C......................................... 400,000 3,624,651
Hilton Group P.L.C................................... 1,251,117 5,483,135
Hyder P.L.C.......................................... 86,519 1,041,871
Imperial Chemical Industries P.L.C................... 477,000 5,258,725
Inchcape P.L.C....................................... 508,000 1,180,335
Invensys P.L.C....................................... 373,612 1,703,243
Johnson Matthey P.L.C................................ 178,000 1,554,498
Lasmo P.L.C.......................................... 815,235 1,724,370
Lex Service P.L.C.................................... 121,933 1,097,096
Lonmin P.L.C......................................... 229,794 1,844,803
Mersey Docks & Harbour Co. P.L.C..................... 53,050 437,790
Meyer International P.L.C............................ 102,281 756,380
Millennium and Copthorne Hotels P.L.C................ 122,000 1,118,226
Mirror Group P.L.C................................... 403,000 1,488,503
National Westminster Bank P.L.C...................... 1,135,608 26,058,242
Norwich Union P.L.C.................................. 731,000 5,183,276
Peel Holdings P.L.C.................................. 45,400 465,596
Pilkington P.L.C..................................... 995,666 1,164,690
Pillar Property Investments P.L.C.................... 25,000 132,599
Powergen P.L.C....................................... 443,177 4,821,927
RMC Group P.L.C...................................... 223,000 2,976,621
<CAPTION>
SHARES VALUE+
-------------- --------------
<S> <C> <C>
Rank Group P.L.C..................................... 793,530 $ 2,841,938
Rexam P.L.C.......................................... 337,343 1,329,782
Rio Tinto P.L.C...................................... 585,818 8,589,294
Rolls-Royce P.L.C.................................... 327,235 1,376,457
*Royal & Sun Alliance Insurance Group P.L.C.......... 1,402,039 11,469,104
Rugby Group P.L.C.................................... 549,000 994,087
Safeway P.L.C........................................ 954,040 3,948,031
Sainsbury (J.) P.L.C................................. 1,343,942 8,172,707
Scottish & Newcastle P.L.C........................... 235,300 2,731,706
Severn Trent P.L.C................................... 210,597 3,075,973
Shell Transport & Trading Co., P.L.C................. 2,222,545 16,088,752
Signet Group P.L.C................................... 803,000 656,235
Slough Estates P.L.C................................. 376,100 2,220,826
Smith (David S.) Holdings P.L.C...................... 298,000 625,549
Somerfield P.L.C..................................... 165,142 750,212
South West Water P.L.C............................... 43,473 704,278
Standard Chartered P.L.C............................. 70,124 1,061,310
Storehouse P.L.C..................................... 431,958 816,765
Tarmac P.L.C......................................... 948,643 1,808,937
Tate & Lyle P.L.C.................................... 353,500 2,322,453
Taylor Woodrow P.L.C................................. 388,747 1,115,048
Tesco P.L.C.......................................... 4,364,755 12,711,826
Thames Water P.L.C................................... 160,298 2,542,945
Thistle Hotels P.L.C................................. 405,707 1,170,196
Trinity P.L.C........................................ 76,800 706,394
Unigate P.L.C........................................ 229,400 1,562,270
*Unilever P.L.C...................................... 1,300,000 11,436,400
United Assurance Group P.L.C......................... 331,000 2,174,631
United Biscuits Holdings P.L.C....................... 467,329 1,484,600
United Utilities P.L.C............................... 265,595 3,206,836
Vickers P.L.C........................................ 194,300 496,600
Whitbread P.L.C...................................... 483,242 8,603,049
Wilson Bowden P.L.C.................................. 96,900 1,125,733
Wimpey (George) P.L.C................................ 348,650 888,302
Wolseley P.L.C....................................... 100,000 780,774
Yorkshire Water P.L.C................................ 161,510 1,136,155
--------------
TOTAL COMMON STOCKS
(Cost $251,715,750).................................. 338,660,850
--------------
INVESTMENT IN CURRENCY -- (0.1%)
*British Pound Sterling
(Cost $2,630,988).................................. 2,643,124
--------------
RIGHTS/WARRANTS -- (0.0%)
*Millenium and Copthorne Hotel P.L.C. Rights 06/06/99
(Cost $0).......................................... 79,300 124,530
--------------
TOTAL -- UNITED KINGDOM
(Cost $254,346,738).................................. 341,428,504
--------------
GERMANY -- (9.3%)
COMMON STOCKS -- (9.3%)
AGIV AG fuer Industrie & Verkehrswesen............... 57,800 1,226,855
Ava Allgemeine Handelsgesellschaft der Verbraucher
AG, Bielefeld...................................... 3,700 1,296,033
#BASF AG............................................. 640,050 24,460,808
BHF Bank AG.......................................... 116,900 3,801,407
*#BHW Holding AG, Berlin............................. 167,300 2,538,241
Bankgesellschaft Berlin AG........................... 233,550 3,418,829
#Bayer AG............................................ 168,100 6,433,071
</TABLE>
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THE DFA INTERNATIONAL VALUE SERIES
CONTINUED
<TABLE>
<CAPTION>
SHARES VALUE+
-------------- --------------
<S> <C> <C>
Bayerische Vereinsbank AG............................ 311,250 $ 16,630,288
Berliner Kraft & Licht Bewag AG...................... 177,600 3,025,057
Bilfinger & Berger Bau AG, Mannheim.................. 46,500 1,149,883
#Commerzbank AG...................................... 408,050 11,391,847
DBV-Winterthur Holding AG, Wiesbaden................. 4,400 1,587,235
Deutsche Bank AG..................................... 340,805 17,771,122
#Deutsche Lufthansa AG............................... 305,250 6,558,991
Deutsche Pfandbrief und Hypothekenbank AG, Depfa..... 46,400 4,002,593
Deutsche Telekom AG.................................. 170,000 6,807,963
#Dresdner Bank AG, Frankfurt......................... 315,000 11,330,224
Dyckerhoff AG........................................ 2,275 623,236
FPB Holding AG....................................... 5,789 998,751
Fresenius Medical Care AG............................ 16,900 848,198
GEA AG............................................... 11,800 296,117
Heidelberger Zement AG, Heidelberg................... 24,700 1,942,157
Hochtief AG.......................................... 91,150 4,002,907
Holzmann (Philipp) AG................................ 1,860 287,446
#Karstadt AG......................................... 8,350 3,474,874
Linde AG............................................. 5,700 3,254,146
MAN AG............................................... 140,000 4,098,789
Merck KGAA........................................... 58,000 1,998,264
PWA Papierwerke Waldhof-Aschaffenburg AG............. 3,550 649,585
Siemens AG........................................... 87,800 5,912,211
*Thyssen Krupp AG.................................... 108,750 2,126,378
Vereins & Westbank AG................................ 73,187 2,020,261
--------------
TOTAL -- GERMANY
(Cost $129,315,369).................................. 155,963,767
--------------
FRANCE -- (9.2%)
COMMON STOCKS -- (9.2%)
AGF (Assurances Generales de France SA).............. 62,514 3,107,463
Banque Nationale de Paris............................ 193,531 16,350,514
Banque Paribas....................................... 90,572 9,849,106
Bongrain SA.......................................... 1,653 604,937
*Christian Dior SA................................... 31,100 4,419,258
#Colas SA............................................ 5,070 959,524
Credit Commercial de France.......................... 50,191 5,536,660
ECIA (Equipements et Composants pour l'Industrie
Automobile)........................................ 3,000 351,325
Elf Aquitaine........................................ 140,000 20,318,284
*Eridania Beghin-Say SA.............................. 18,900 2,752,849
Esso SA.............................................. 8,476 744,457
#Euro Disney SCA..................................... 551,700 859,525
Fonciere Lyonnaise SA................................ 1,668 221,498
Fromageries Bel la Vache qui Rit..................... 275 197,829
*#GTM Entrepose...................................... 21,077 2,115,678
Generale des Establissements Michelin SA Series B.... 35,400 1,564,976
Groupe Danone........................................ 42,500 11,731,738
*Hachette Filipacchi Medias.......................... 1,300 340,503
*Imetal.............................................. 11,000 1,403,208
*LaFarge SA.......................................... 74,595 6,738,961
Labinal SA........................................... 3,200 719,379
Lyonnais des Eaux SA................................. 40,000 6,645,894
*Pechiney SA Series A................................ 55,475 2,155,473
Pernod-Ricard........................................ 38,900 2,603,149
<CAPTION>
SHARES VALUE+
-------------- --------------
<S> <C> <C>
Peugeot SA........................................... 37,150 $ 5,515,904
#Rallye SA........................................... 17,220 1,001,100
Remy Cointreau SA.................................... 27,400 458,395
Rhone-Poulenc SA Series A............................ 176,126 8,379,235
SEB SA............................................... 9,000 722,255
*#Saint-Gobain....................................... 65,436 10,297,286
Silic (Societe Immobiliere de Location pour
l'Industrie et le Commerce)........................ 200 30,051
#Societe Generale Paris.............................. 70,432 12,828,849
*#Sommer-Allibert SA................................. 14,800 417,826
Sophia SA............................................ 7,700 316,412
*Thomson-CSF......................................... 87,203 2,813,824
*Total SA............................................ 40,000 4,872,540
Union Assurances Federales SA........................ 7,500 901,838
Usinor............................................... 167,800 2,291,420
--------------
TOTAL COMMON STOCKS
(Cost $102,146,678).................................. 153,139,123
--------------
RIGHTS/WARRANTS -- (0.0%)
*AGF (Assurances Generales de France SA) Warrants
06/15/00........................................... 41,214 374,916
*Fonciere Lyonnaise SA Warrants 07/30/02............. 868 572
--------------
TOTAL RIGHTS/WARRANTS
(Cost $180,303)...................................... 375,488
--------------
TOTAL -- FRANCE
(Cost $102,326,981).................................. 153,514,611
--------------
SWITZERLAND -- (7.5%)
COMMON STOCKS -- (7.5%)
#Ascom Holding AG, Bern.............................. 1,410 2,699,632
Baloise-Holding, Basel............................... 26,676 19,155,214
Banca del Gotthard................................... 5,470 4,925,955
Banque Cantonale Vaudois............................. 5,795 1,711,650
Bobst SA, Prilly..................................... 2,553 3,150,342
Ciba Spezialitaetenchemie Holding AG................. 2,100 156,101
Financiere Richemont AG.............................. 8,973 14,512,003
Fischer (Georg) AG, Schaffhausen (Namen)............. 12,987 4,245,093
Forbo Holding AG, Eglisau............................ 6,381 2,617,687
Helvetia Patria Holding, St. Gallen.................. 4,830 3,756,769
Holderbank Financiere Glarus AG, Glarus.............. 900 1,072,772
Intershop Holding AG, Zuerich........................ 5,400 3,189,960
Jelmoli Holding AG, Zuerich.......................... 500 466,023
#Oerlikon-Buehrle Holding AG, Zuerich................ 44,781 6,459,095
Pargesa Holding SA, Geneve........................... 1,935 2,668,431
Roche Holding AG, Basel.............................. 892 15,486,009
Sairgroup, Zuerich................................... 37,480 8,462,662
Schindler Holding AG, Hergiswil...................... 3,469 5,680,988
Schweizerische National Versicherungs Gesellschaft,
Basel.............................................. 1,606 3,109,686
Sig Schweizerische Industrie-Gesellschaft Holding AG,
Neuhausen AM Rheinfall............................. 8,066 5,013,687
Sika Finanz AG, Baar................................. 1,280 381,010
Sulzer AG, Winterthur................................ 8,280 4,853,229
</TABLE>
10
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THE DFA INTERNATIONAL VALUE SERIES
CONTINUED
<TABLE>
<CAPTION>
SHARES VALUE+
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<S> <C> <C>
United Bank of Switzerland........................... 37,000 $ 10,734,281
Von Roll Holding AG, Gerlafingen..................... 15,045 306,128
--------------
TOTAL COMMON STOCKS
(Cost $102,454,974).................................. 124,814,407
--------------
INVESTMENT IN CURRENCY -- (0.0%)
*Swiss Francs
(Cost $62,400)..................................... 62,382
--------------
TOTAL -- SWITZERLAND
(Cost $102,517,374).................................. 124,876,789
--------------
NETHERLANDS -- (6.5%)
COMMON STOCKS -- (6.5%)
ABN Amro Holding NV.................................. 1,304,435 28,983,504
Asr Verzekeringsgroep NV............................. 40,528 2,798,965
Buhrmann NV.......................................... 80,524 1,347,146
DSM NV............................................... 40,983 3,826,703
#Fortis (NL)......................................... 547,320 17,826,615
Ing Groep NV......................................... 732,972 39,278,127
KLM (Koninklijke Luchtvaart Mij NV).................. 79,274 2,304,332
Koninklijke Hoogovens NV............................. 34,857 1,352,177
Koninklijke Philips Electronics...................... 110,000 9,460,152
Pakhoed NV........................................... 38,986 900,887
Stork NV............................................. 27,615 584,709
Vendex NV (non-food)................................. 9,646 282,407
--------------
TOTAL COMMON STOCKS
(Cost $59,000,403)................................... 108,945,724
--------------
RIGHTS/WARRANTS -- (0.0%)
*Asr Verzekerings Groep NV Rights 06/02/99........... 40,528 0
*Fortis (NL) Rights 06/17/99......................... 547,320 0
*Ing Groep NV Rights 06/07/99........................ 732,972 0
--------------
TOTAL RIGHTS/WARRANTS
(Cost $0)............................................ 0
--------------
TOTAL -- NETHERLANDS
(Cost $59,000,403)................................... 108,945,724
--------------
ITALY -- (5.1%)
COMMON STOCKS -- (5.1%)
Banca Commerciale Italiana SpA....................... 3,565,000 25,683,149
#Banca di Roma....................................... 7,168,500 10,493,632
*#Banca Toscana...................................... 607,000 2,665,677
#CIR SpA (Cie Industriale Riunite), Torino........... 885,000 1,175,213
*#Cartiere Burgo SpA................................. 235,000 1,511,167
#Cia Assicuratrice Unipol SpA........................ 116,134 506,367
#Fiat SpA............................................ 3,997,899 12,916,945
*Finmeccanica SpA.................................... 2,000,000 1,838,181
#Ifil Finanziaria Partecipazioni SpA, Torino......... 1,020,375 3,478,139
*Ing C.Olivetti & C SpA, Ivrea....................... 1,200,000 3,751,647
#Italcementi Fabbriche Riunite Cemento SpA,
Bergamo............................................ 364,000 4,148,560
Italmobiliare SpA, Milano............................ 14,330 382,081
#Magneti Marelli SpA................................. 700,000 933,206
#Montedison SpA...................................... 5,455,000 4,853,934
San Paolo-Imi SpA.................................... 657,000 8,896,202
<CAPTION>
SHARES VALUE+
-------------- --------------
<S> <C> <C>
Sirti SpA............................................ 25,000 $ 124,689
#Toro Assicurazioni Cia Anonima d'Assicurazione di
Torino SpA......................................... 168,350 2,270,766
--------------
TOTAL COMMON STOCKS
(Cost $49,565,807)................................... 85,629,555
--------------
RIGHTS/WARRANTS -- (0.0%)
*Finmeccanica SpA Warrants 06/30/00
(Cost $0).......................................... 2,406,375 130,839
--------------
TOTAL -- ITALY
(Cost $49,565,807)................................... 85,760,394
--------------
SPAIN -- (3.3%)
COMMON STOCKS -- (3.3%)
*Acerinox SA......................................... 154,740 4,449,434
Aumar (Autopistas del Mare Nostrum SA)............... 176,800 3,972,722
#Autopistas Concesionaria Espanola SA................ 432,180 5,526,633
*Azucarera Ebro Agricolas SA......................... 111,600 1,748,016
*Banco Pastor SA, La Coruna.......................... 39,600 2,061,611
Cementos Portland SA................................. 26,000 948,786
Compania Espanola de Petroleos SA, Madrid............ 149,794 4,722,275
*#Corporacion Mapfre Compania Internacional de
Reaseguros SA, Majadah Onda........................ 36,300 754,178
*Cristaleria Espanol SA Em 98........................ 5,792 297,116
Cristaleria Espanola SA, Madrid...................... 34,752 1,820,485
FESCA (Fuerzas Electricas de Cataluna SA) Series A... 180,000 1,644,953
#Grupo Dragados...................................... 152,189 5,275,168
#Hidroelectrica del Cantabrico SA, Oviedo............ 99,900 4,324,494
Iberdrola SA......................................... 535,000 7,686,171
*Metrovacesa SA...................................... 89,964 2,029,030
Portland Valderrivas SA.............................. 2,784 89,658
Sevillana de Electricidad SA......................... 210,000 2,437,316
Union Electrica Fenosa SA............................ 230,000 3,010,937
Uralita SA........................................... 24,500 226,202
*Vallehermoso SA..................................... 240,000 2,351,367
--------------
TOTAL -- SPAIN
(Cost $46,396,415)................................... 55,376,552
--------------
HONG KONG -- (2.4%)
COMMON STOCKS -- (2.4%)
Amoy Properties, Ltd................................. 4,570,500 3,772,163
HKR International, Ltd............................... 1,077,384 729,418
Hang Lung Development Co., Ltd....................... 2,126,000 2,467,474
Hysan Development Co., Ltd........................... 1,683,823 2,486,272
Kerry Properties, Ltd................................ 1,261,000 1,300,924
New World Development Co., Ltd....................... 1,932,105 4,721,573
Shangri-la Asia, Ltd................................. 2,982,000 3,191,777
*Sino Hotels (Holdings), Ltd......................... 391,653 50,001
Sino Land Co., Ltd................................... 4,915,200 2,646,333
Swire Pacific, Ltd. Series A......................... 1,062,000 5,067,258
Tsim Sha Tsui Properties, Ltd........................ 1,174,000 764,550
</TABLE>
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CONTINUED
<TABLE>
<CAPTION>
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<S> <C> <C>
Wharf Holdings, Ltd.................................. 3,672,000 $ 9,352,259
Wheelock and Co., Ltd................................ 3,243,000 3,680,242
--------------
TOTAL COMMON STOCKS
(Cost $53,398,479)................................... 40,230,244
--------------
INVESTMENT IN CURRENCY -- (0.0%)
*Hong Kong Dollars
(Cost $39,272)..................................... 39,272
--------------
TOTAL -- HONG KONG
(Cost $53,437,751)................................... 40,269,516
--------------
AUSTRALIA -- (2.4%)
COMMON STOCKS -- (2.4%)
Amcor, Ltd........................................... 505,844 2,695,480
#Boral, Ltd.......................................... 1,009,742 1,650,488
CSR, Ltd............................................. 842,897 2,267,808
George Weston Foods, Ltd............................. 65,489 295,447
Goodman Fielder, Ltd................................. 152,399 149,463
MIM Holdings......................................... 1,394,796 756,921
News Corp., Ltd...................................... 1,167,569 9,664,472
North, Ltd........................................... 420,283 763,921
Pacific Dunlop, Ltd.................................. 756,467 1,351,735
Pasminco, Ltd........................................ 134,947 132,348
Pioneer International, Ltd........................... 658,231 1,532,111
Quantas Airways, Ltd................................. 906,085 2,665,897
Rio Tinto, Ltd....................................... 492,912 6,928,987
Santos, Ltd.......................................... 72,627 225,555
#St. George Bank, Ltd................................ 55,421 386,163
Stockland Trust Group................................ 157,092 353,325
*Stockland Trust Group Issue 99...................... 5,334 12,102
#Suncorp-Metway Limited.............................. 52,500 304,813
WMC, Ltd............................................. 844,189 3,135,089
Westpac Banking Corp................................. 700,000 4,801,041
--------------
TOTAL COMMON STOCKS
(Cost $37,814,352)................................... 40,073,166
--------------
INVESTMENT IN CURRENCY -- (0.0%)
*Australian Dollar
(Cost $27,951)..................................... 28,682
--------------
PREFERRED STOCKS -- (0.0%)
Village Roadshow, Ltd. 2.2% Class A
(Cost $6,026)...................................... 1,867 2,808
--------------
TOTAL -- AUSTRALIA
(Cost $37,848,329)................................... 40,104,656
--------------
SWEDEN -- (2.3%)
COMMON STOCKS -- (2.3%)
*#Assidomaen AB...................................... 164,500 3,309,828
*#Boliden, Ltd....................................... 57,213 128,796
Fastighets AB Balder................................. 8,000 83,981
Gambro AB Series A................................... 42,500 426,322
*Gambro AB Series B.................................. 15,900 160,422
Kinnevik Industrifoervaltnings AB Series A........... 3,200 63,453
*#Kinnevik Industrifoervaltnings AB Series B......... 36,000 751,633
Mo Och Domsjoe AB Series A........................... 6,300 161,664
Mo Och Domsjoe AB Series B........................... 118,300 2,814,916
NCC AB Series A...................................... 45,400 460,708
#NCC AB Series B..................................... 95,000 991,738
SSAB Swedish Steel Series A.......................... 129,900 1,469,709
<CAPTION>
SHARES VALUE+
-------------- --------------
<S> <C> <C>
SSAB Swedish Steel Series B.......................... 48,000 $ 537,481
Skandinaviska Enskilda Banken Series A............... 100,000 1,213,064
#Svedala Industri.................................... 28,700 466,989
Svenska Cellulosa AB Series A........................ 57,000 1,343,002
Svenska Cellulosa AB Series B........................ 217,600 5,076,207
Svenska Handelsbanken Series A....................... 80,000 2,897,357
Svenska Kullagerfabriken AB Series A................. 68,400 1,029,192
#Svenska Kullagerfabriken AB Series B................ 89,700 1,407,230
Sydkraft AB Series C................................. 6,600 117,399
#Trelleborg AB Series B.............................. 146,400 1,306,330
Volvo AB Series A.................................... 192,600 4,863,676
Volvo AB Series B.................................... 305,100 7,757,989
--------------
TOTAL COMMON STOCKS
(Cost $38,625,606)................................... 38,839,086
--------------
INVESTMENT IN CURRENCY -- (0.0%)
*Swedish Krona
(Cost $52,294)..................................... 52,439
--------------
RIGHTS/WARRANTS -- (0.0%)
*Kinnevik Industrifoervaltnings AB Series A Rights
06/17/99........................................... 3,200 2,075
*Kinnevik Industrifoervaltnings AB Series B Rights
06/17/99........................................... 36,000 25,195
--------------
TOTAL RIGHTS/WARRANTS
(Cost $0)............................................ 27,270
--------------
TOTAL -- SWEDEN
(Cost $38,677,900)................................... 38,918,795
--------------
BELGIUM -- (1.3%)
COMMON STOCKS -- (1.3%)
*Banque Bruxelles Lambert VVPR....................... 128 3
Bekaert SA........................................... 3,400 1,422,029
Cimenteries CBR Cementsedrijoen...................... 2,900 264,717
#Credit Communal Holding Dexia Belgium............... 5,400 836,216
Electrafina SA....................................... 8,000 903,407
*Fortis AG........................................... 32,270 182,543
Fortis AG Class B.................................... 90,000 2,893,724
*Fortis AG Strips.................................... 290,430 3,037
*Generale de Banque SA VVPR.......................... 630 16
*#Glaverbel SA....................................... 14,812 1,445,764
*Glaverbel SA VVPR................................... 22 1
#Groupe Bruxelles Lambert SA, Bruxelles.............. 6,300 1,100,086
#Nationale a Portefeuille............................ 4,700 380,863
Sofina SA............................................ 10,500 395,240
Solvay SA............................................ 101,490 6,786,304
Suez Lyonnaise des Eaux.............................. 19,080 3,152,136
*Suez Lyonnaise des Eaux SA VVPR..................... 19,080 200
*Suez Lyonnaise ds Eaux CVG.......................... 19,080 182,744
*Tessenderlo Chemie.................................. 3,700 155,640
Union Miniere SA..................................... 40,200 1,477,478
--------------
TOTAL -- BELGIUM
(Cost $19,144,906)................................... 21,582,148
--------------
FINLAND -- (1.1%)
COMMON STOCKS -- (1.1%)
#Asko Oyj............................................ 48,100 849,965
</TABLE>
12
<PAGE>
THE DFA INTERNATIONAL VALUE SERIES
CONTINUED
<TABLE>
<CAPTION>
SHARES VALUE+
-------------- --------------
<S> <C> <C>
Kemira Oyj........................................... 229,200 $ 1,411,560
#Kesko Oyj........................................... 104,300 1,385,025
Metra Oyj Series B................................... 43,200 964,387
#Metsa-Serla Oyj Series B............................ 249,500 1,917,465
Outokumpu Oyj Series A............................... 221,600 2,289,266
Rauma Oyj............................................ 25,900 287,062
Rautaruukki Oy Series K.............................. 237,100 1,462,693
Stora Enso AB Series A............................... 172,971 1,763,386
Stora Enso AB Series B............................... 436,189 4,460,495
#Upm-Kymmene Oyj..................................... 48,900 1,436,761
Valmet Corp. - (FIM)................................. 84,500 865,869
--------------
TOTAL -- FINLAND
(Cost $21,503,897)................................... 19,093,934
--------------
DENMARK -- (1.1%)
COMMON STOCKS -- (1.1%)
Den Danske Bank A.S.................................. 44,140 4,745,889
Forsikringsselskabet Codan A.S....................... 7,662 789,305
Jyske Bank A.S....................................... 9,990 799,963
Kapital Holdings A.S................................. 32,497 1,216,513
Tele Danmark A.S. Series B........................... 50,000 5,122,634
Tryg Baltica Forsikring A.S.......................... 56,055 1,443,635
Unidanmark A.S. Series A............................. 51,864 3,649,454
--------------
TOTAL COMMON STOCKS
(Cost $15,654,407)................................... 17,767,393
--------------
INVESTMENT IN CURRENCY -- (0.0%)
*Danish Krone
(Cost $28,882)..................................... 28,036
--------------
TOTAL -- DENMARK
(Cost $15,683,289)................................... 17,795,429
--------------
SINGAPORE -- (0.7%)
COMMON STOCKS -- (0.7%)
Fraser & Neave, Ltd.................................. 769,000 3,031,895
Industrial & Commercial Bank, Ltd.................... 13,000 29,697
Keppel Corp., Ltd.................................... 1,379,000 3,933,764
Keppel Land, Ltd..................................... 600,000 1,019,290
Singapore Airlines, Ltd. (Foreign)................... 40,000 357,157
Singapore Land, Ltd.................................. 1,048,000 2,880,173
--------------
TOTAL COMMON STOCKS
(Cost $13,954,087)................................... 11,251,976
--------------
INVESTMENT IN CURRENCY -- (0.0%)
*Singapore Dollars
(Cost $62)......................................... 62
--------------
TOTAL -- SINGAPORE
(Cost $13,954,149)................................... 11,252,038
--------------
NORWAY -- (0.5%)
COMMON STOCKS -- (0.5%)
#Bergesen Dy ASA Series A............................ 105,892 1,584,277
Den Norske Bank ASA Series A......................... 589,194 2,039,421
#Kvaerner ASA........................................ 59,851 990,303
#Norsk Hydro ASA..................................... 31,700 1,247,978
#Norske Skogindustrier ASA Series A.................. 52,781 1,840,332
--------------
TOTAL COMMON STOCKS
(Cost $10,772,769)................................... 7,702,311
--------------
<CAPTION>
SHARES VALUE+
-------------- --------------
<S> <C> <C>
RIGHTS/WARRANTS -- (0.0%)
*Kvaerner ASA Rights 06/09/99
(Cost $0).......................................... 59,851 $ 28,836
--------------
INVESTMENT IN CURRENCY -- (0.0%)
*Norwegian Krone
(Cost $5).......................................... 5
--------------
TOTAL -- NORWAY
(Cost $10,772,774)................................... 7,731,152
--------------
MALAYSIA -- (0.3%)
COMMON STOCKS -- (0.3%)
Berjaya Group Berhad................................. 750,000 173,684
*Berjaya Industrial Berhad........................... 691,000 66,918
Berjaya Land Berhad.................................. 235,000 83,116
Genting Berhad....................................... 750,000 2,131,579
Golden Hope Plantations Berhad....................... 1,340,000 947,874
Hap Seng Consolidated Berhad......................... 70,000 33,453
Highlands and Lowlands Berhad........................ 607,000 368,034
Hong Leong Credit Berhad............................. 309,000 310,951
IOI Corp. Berhad..................................... 436,000 237,735
Kuala Lumpur Kepong Berhad........................... 677,000 791,021
Sime Darby Berhad (Malaysia)......................... 621,000 651,069
--------------
TOTAL -- MALAYSIA
(Cost $12,228,624)................................... 5,795,434
--------------
PORTUGAL -- (0.3%)
COMMON STOCKS -- (0.3%)
Banco Espirito Santo e Comercial de Lisboa........... 41,192 1,012,163
Cimpor Cimentos de Portugal SA....................... 26,885 717,960
Portugal Telecom SA.................................. 63,528 2,882,866
--------------
TOTAL -- PORTUGAL
(Cost $4,634,237).................................... 4,612,989
--------------
NEW ZEALAND -- (0.2%)
COMMON STOCKS -- (0.2%)
Carter Holt Harvey, Ltd.............................. 1,370,700 1,572,659
Lion Nathan, Ltd..................................... 432,600 1,039,065
--------------
TOTAL COMMON STOCKS
(Cost $2,915,295).................................... 2,611,724
--------------
INVESTMENT IN CURRENCY -- (0.0%)
*New Zealand Dollar
(Cost $179)........................................ 186
--------------
TOTAL -- NEW ZEALAND
(Cost $2,915,474).................................... 2,611,910
--------------
IRELAND -- (0.2%)
COMMON STOCKS -- (0.2%)
Greencore Group P.L.C................................ 52,764 193,097
Independent Newspapers P.L.C......................... 112,098 580,193
Irish Permanent P.L.C................................ 37,534 480,762
Jefferson Smurfit Group P.L.C........................ 475,872 1,243,941
--------------
TOTAL -- IRELAND
(Cost $1,997,369).................................... 2,497,993
--------------
</TABLE>
13
<PAGE>
THE DFA INTERNATIONAL VALUE SERIES
CONTINUED
<TABLE>
<CAPTION>
SHARES VALUE+
-------------- --------------
<S> <C> <C>
AUSTRIA -- (0.1%)
COMMON STOCKS -- (0.1%)
#Bank Austria AG..................................... 24,052 $ 1,234,816
Voest-Alpine Stahl AG................................ 9,900 277,317
--------------
TOTAL -- AUSTRIA
(Cost $1,416,673).................................... 1,512,133
--------------
EMU -- (0.1%)
INVESTMENT IN CURRENCY -- (0.1%)
*Euro Currency (Cost $1,222,382)..................... 1,222,134
--------------
<CAPTION>
FACE
AMOUNT VALUE+
-------------- --------------
TEMPORARY CASH
INVESTMENTS -- (0.6%)
Repurchase Agreement, PNC Capital Markets Inc. 4.60%,
06/01/99 (Collateralized by U.S. Treasury Notes
6.75%, 04/30/00, valued at $10,710,000) to be
repurchased at $10,554,392.
(Cost $10,549,000)................................. $ 10,549 $ 10,549,000
--------------
TOTAL INVESTMENTS -- (100.0%) (Cost
$1,537,118,298)++.................................... $1,670,873,465
--------------
--------------
- --------------------
+ See Note B to Financial Statements.
* Non-Income Producing Securities
# Total or Partial Securities on Loan
++ Approximates cost for federal income tax purposes.
</TABLE>
See accompanying Notes to Financial Statements.
14
<PAGE>
THE DFA INVESTMENT TRUST COMPANY
THE DFA INTERNATIONAL VALUE SERIES
STATEMENT OF ASSETS AND LIABILITIES
MAY 31, 1999
(UNAUDITED)
(AMOUNTS IN THOUSANDS, EXCEPT SHARE AMOUNTS)
<TABLE>
<S> <C>
ASSETS:
Investments at Value................................................................... $ 1,670,873
Collateral for Securities Loaned....................................................... 227,054
Receivables
Dividends, Interest and Tax Reclaims................................................. 12,282
Investment Securities Sold........................................................... 22,817
Fund Shares Sold..................................................................... 1,314
Prepaid Expenses and Other Assets...................................................... 26
-------------
Total Assets....................................................................... 1,934,366
-------------
LIABILITIES:
Payable for Securities Loaned.......................................................... 227,054
Payable for Fund Shares Redeemed....................................................... 1,006
Accrued Expenses and Other Liabilities................................................. 495
-------------
Total Liabilities.................................................................. 228,555
-------------
NET ASSETS............................................................................. $ 1,705,811
-------------
-------------
SHARES OUTSTANDING $.01 PAR VALUE
(Authorized 100,000,000)............................................................. 138,093,497
-------------
-------------
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE............................... $ 12.35
-------------
-------------
Investments at Cost.................................................................... $ 1,537,118
-------------
-------------
COMPONENTS OF NET ASSETS:
Paid-In Capital........................................................................ 1,494,885
Undistributed Net Investment Income.................................................... 11,491
Undistributed Net Realized Gain........................................................ 66,312
Accumulated Net Realized Foreign Exchange Loss......................................... (429)
Unrealized Appreciation of Investment Securities and Foreign Currency.................. 133,755
Unrealized Net Foreign Exchange Loss................................................... (203)
-------------
Total Net Assets....................................................................... $ 1,705,811
-------------
-------------
</TABLE>
See accompanying Notes to Financial Statements.
15
<PAGE>
THE DFA INVESTMENT TRUST COMPANY
THE DFA INTERNATIONAL VALUE SERIES
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED MAY 31, 1999
(UNAUDITED)
(AMOUNTS IN THOUSANDS)
<TABLE>
<S> <C>
INVESTMENT INCOME
Dividends (Net of Foreign Taxes Withheld of $2,623)................................ $ 24,515
Interest........................................................................... 355
Income from Securities Lending..................................................... 700
---------
Total Investment Income........................................................ 25,570
---------
EXPENSES
Investment Advisory Services....................................................... 1,726
Accounting & Transfer Agent Fees................................................... 417
Custodian's Fee.................................................................... 232
Legal Fees......................................................................... 19
Audit Fees......................................................................... 17
Shareholders' Reports.............................................................. 16
Trustees' Fees and Expenses........................................................ 4
Other.............................................................................. 57
---------
Total Expenses................................................................. 2,488
---------
NET INVESTMENT INCOME.............................................................. 23,082
---------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCY
Net Realized Gain on Investment Securities............................................. 57,159
Net Realized Loss on Foreign Currency Transactions..................................... (429)
Change in Unrealized Appreciation (Depreciation) of:
Investment Securities and Foreign Currency......................................... (11,745)
Translation of Foreign Currency Denominated Amounts................................ (343)
---------
NET GAIN ON INVESTMENT SECURITIES AND FOREIGN CURRENCY............................. 44,642
---------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS................................... $ 67,724
---------
---------
</TABLE>
See accompanying Notes to Financial Statements.
16
<PAGE>
THE DFA INVESTMENT TRUST COMPANY
THE DFA INTERNATIONAL VALUE SERIES
STATEMENTS OF CHANGES IN NET ASSETS
(AMOUNTS IN THOUSANDS)
<TABLE>
<CAPTION>
SIX MONTHS YEAR
ENDED ENDED
MAY 31, NOV. 30,
1999 1998
------------- -------------
<S> <C> <C>
(UNAUDITED)
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net Investment Income............................................................... $ 23,082 $ 32,873
Net Realized Gain on Investment Securities.......................................... 57,159 11,162
Net Realized Gain (Loss) on Foreign Currency Transactions........................... (429) 895
Change in Unrealized Appreciation (Depreciation) of:
Investment Securities and Foreign Currency...................................... (11,745) 151,571
Translation of Foreign Currency Denominated Amounts............................. (343) 158
------------- -------------
Net Increase in Net Assets Resulting from Operations............................ 67,724 196,659
------------- -------------
Distributions From:
Net Investment Income............................................................... (6,867) (39,352)
Net Realized Gains.................................................................. (3,807) (4,181)
------------- -------------
Total Distributions............................................................. (10,674) (43,533)
------------- -------------
Capital Share Transactions (1):
Shares Issued....................................................................... 74,411 161,527
Shares Issued in Lieu of Cash Distributions......................................... 10,674 43,533
Shares Redeemed..................................................................... (156,573) (220,023)
------------- -------------
Net Decrease From Capital Share Transactions.................................... (71,488) (14,963)
------------- -------------
Total Increase (Decrease)....................................................... (14,438) 138,163
NET ASSETS
Beginning of Period................................................................. 1,720,249 1,582,086
------------- -------------
End of Period....................................................................... $ 1,705,811 $ 1,720,249
------------- -------------
------------- -------------
(1) SHARES ISSUED AND REDEEMED:
Shares Issued....................................................................... 6,110 13,637
Shares Issued in Lieu of Cash Distributions......................................... 902 3,743
Shares Redeemed..................................................................... (12,834) (18,668)
------------- -------------
(5,822) (1,288)
------------- -------------
------------- -------------
</TABLE>
See accompanying Notes to Financial Statements.
17
<PAGE>
THE DFA INVESTMENT TRUST COMPANY
THE DFA INTERNATIONAL VALUE SERIES
FINANCIAL HIGHLIGHTS
(FOR A SHARE OUTSTANDING THROUGH EACH PERIOD)
<TABLE>
<CAPTION>
SIX MONTHS YEAR YEAR YEAR YEAR FEB. 16
ENDED ENDED ENDED ENDED ENDED TO
MAY 31, NOV. 30, NOV. 30, NOV. 30, NOV. 30, NOV. 30,
1999 1998 1997 1996 1995 1994
---------- ---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
(UNAUDITED)
Net Asset Value, Beginning of Period.... $ 11.95 $ 10.90 $ 11.79 $ 10.55 $ 10.06 $ 10.00
---------- ---------- ---------- ---------- ---------- ----------
INCOME FROM INVESTMENT OPERATIONS
Net Investment Income................. 0.17 0.22 0.24 0.23 0.20 0.13
Net Gains (Losses) on Securities
(Realized and Unrealized)........... 0.31 1.13 (0.67) 1.32 0.52 0.07
---------- ---------- ---------- ---------- ---------- ----------
Total from Investment Operations...... 0.48 1.35 (0.43) 1.55 0.72 0.20
---------- ---------- ---------- ---------- ---------- ----------
LESS DISTRIBUTIONS
Net Investment Income................. (0.05) (0.27) (0.22) (0.23) (0.21) (0.13)
Net Realized Gains.................... (0.03) (0.03) (0.24) (0.08) (0.02) (0.01)
---------- ---------- ---------- ---------- ---------- ----------
Total Distributions................... (0.08) (0.30) (0.46) (0.31) (0.23) (0.14)
---------- ---------- ---------- ---------- ---------- ----------
Net Asset Value, End of Period.......... $ 12.35 $ 11.95 $ 10.90 $ 11.79 $ 10.55 $ 10.06
---------- ---------- ---------- ---------- ---------- ----------
---------- ---------- ---------- ---------- ---------- ----------
Total Return............................ 4.00%# 12.50% (3.84)% 14.85% 7.20% 1.99%#
Net Assets, End of Period (thousands)... $1,705,811 $1,720,249 $1,582,086 $1,356,852 $609,386 $348,381
Ratio of Expenses to Average Net
Assets................................ 0.29%* 0.29% 0.32% 0.36% 0.42% 0.45%*
Ratio of Expenses to Average Net Assets
(excluding waivers and assumption of
expenses)............................. 0.29%* 0.29% 0.32% 0.36% 0.42% 0.48%*
Ratio of Net Investment Income to
Average Net Assets.................... 2.68%* 1.90% 2.09% 2.23% 2.14%* 1.84%*
Ratio of Net Investment Income to
Average Net Assets (excluding waivers
and assumption of expenses)........... 2.68%* 1.90% 2.09% 2.23% 2.14% 1.81%*
Portfolio Turnover Rate................. 6.60%* 15.41% 22.55% 12.23% 9.75% 1.90%*
</TABLE>
- --------------
* Annualized
# Non-Annualized
See accompanying Notes to Financial Statements.
18
<PAGE>
THE DFA INVESTMENT TRUST COMPANY
NOTES TO FINANCIAL STATEMENTS
(UNAUDITED)
A. ORGANIZATION:
The DFA Investment Trust Company (the "Trust") is an open-end management
investment company registered under the Investment Company Act of 1940. The
Trust currently offers seventeen series, of which The DFA International Value
Series (the "Series") is presented in this report.
B. SIGNIFICANT ACCOUNTING POLICIES:
The following significant accounting policies are in conformity with
generally accepted accounting principles for investment companies. Such policies
are consistently followed by the Trust in preparation of its financial
statements. The preparation of financial statements in accordance with generally
accepted accounting principles may require management to make estimates and
assumptions that affect the reported amounts and disclosures in the financial
statements. Actual results could differ from those estimates.
1. SECURITY VALUATION: Securities held by the Series which are listed on a
securities exchange are valued at the last quoted sale price. Price information
on listed securities is taken from the exchange where the security is primarily
traded. Unlisted securities for which market quotations are readily available
are valued at the mean between the most recent bid and asked prices. Securities
for which quotations are not readily available are valued in good faith at fair
value using methods determined by the Board of Trustees.
2. FOREIGN CURRENCY TRANSLATION: Securities, other assets and liabilities
of The DFA International Value Series whose values are initially expressed in
foreign currencies are translated to U.S. dollars at the mean price of such
currency against U.S. dollars last quoted by a major bank. Dividend and interest
income and certain expenses are translated to U.S. dollars at the rate of
exchange on their respective accrual dates. Receivables and payables denominated
in foreign currencies are marked to market daily based on daily exchange rates
and exchange gains or losses are realized upon ultimate receipt or disbursement.
3. FEDERAL INCOME TAXES: It is the Series' intention to continue to
qualify as a regulated investment company and distribute all of its taxable
income. Accordingly, no provision for Federal taxes is required in the financial
statements.
4. REPURCHASE AGREEMENTS: The Series may purchase money market instruments
subject to the seller's agreement to repurchase them at an agreed upon date and
price. The seller will be required on a daily basis to maintain the value of the
collateral subject to the agreement at not less than the repurchase price
(including accrued interest). The agreements are conditioned upon the collateral
being deposited under the Federal Reserve book-entry system or with the Trust's
custodian or a third party sub-custodian. All open repurchase agreements were
entered into on May 28, 1999.
5. FOREIGN MARKET RISKS: Investments in foreign markets may involve
certain considerations and risks not typically associated with investments in
the United States, including the possibility of future political and economic
developments and the level of foreign government supervision and regulation of
foreign securities markets. These markets are generally smaller, less liquid and
more volatile than the major securities markets in the United States.
Consequently, acquisition and disposition of securities by the Fund may be
inhibited.
6. OTHER: Security transactions are accounted for on the date the
securities are purchased or sold. Costs used in determining realized gains and
losses on the sale of investment securities are those of specific securities
sold. Dividend income and distributions to shareholders are recorded on the
ex-dividend date. Interest income is recorded on the accrual basis. Discount and
premium on securities purchased are amortized over the lives of the respective
securities. Expenses directly attributable to a Series are directly charged.
Common expenses are allocated using methods determined by the Board of Trustees.
19
<PAGE>
C. INVESTMENT ADVISOR:
Dimensional Fund Advisors Inc. ("DFA" or the "Advisor") provides investment
advisory services to the Series. For the six months ended May 31, 1999, the
Series' advisory fees were computed daily and paid monthly to the Advisor based
on an effective annual rate of 0.20 of 1% of average daily net assets.
Certain officers of the Series are also officers, directors and shareholders
of the Advisor.
D. PURCHASES AND SALES OF SECURITIES:
For the six months ended May 31, 1999, the Series made the following
purchases and sales of investment securities other than U.S. Government
Securities (amounts in thousands):
<TABLE>
<S> <C>
Purchases.............................................. $ 55,994
Sales.................................................. 134,228
</TABLE>
E. INVESTMENT TRANSACTIONS:
At May 31, 1999, gross unrealized appreciation and depreciation for federal
income tax purposes of investment securities and foreign currencies was as
follows (amounts in thousands):
<TABLE>
<S> <C>
Gross Unrealized Appreciation......................... $ 352,500
Gross Unrealized Depreciation......................... (218,745)
----------
Net................................................... $ 133,755
----------
----------
</TABLE>
F. LINE OF CREDIT:
The Trust, together with other DFA-advised portfolios, has entered into a
$50 million unsecured line of credit with its domestic custodian bank. Each
series is permitted to borrow, subject to its investment limitations, up to a
maximum of $50 million. Borrowings under the line are charged interest at the
current overnight federal funds rate plus a variable rate determined at the date
of borrowing. Each series is individually, and not jointly liable for its
particular advances under the line. There is no commitment fee on the unused
portion of the line of credit. There were no borrowings under the line of credit
by the Series during the six months ended May 31, 1999.
G. SECURITIES LENDING:
Loans of international securities are required at all times to be secured by
collateral at least equal to 105% of the market value of the securities on loan.
However, in the event of default or bankruptcy by the other party to the
agreement, realization and/or retention of the collateral may be subject to
legal proceedings. In the event that the borrower fails to return loaned
securities, and cash collateral being maintained by the borrower is insufficient
to cover the value of loaned securities and provided such collateral
insufficiency is not the result of investment losses, the lending agent has
agreed to pay the amount of the shortfall to the Series or, at the option of the
lending agent, replace the loaned securities. Such cash collateral for May 31,
1999 was reinvested into overnight repurchase agreements with Fuji Securities,
which was in turn collateralized by U.S. Government Treasury Securities. At May
31, 1999, the market value of securities on loan to brokers was $211,296,713 the
related collateral cash received was $227,053,514 and the value of collateral on
overnight repurchase agreements was $258,880,663.
20
