<PAGE>
- --------------------------------------------------------------------------------
Dimensional Investment Group Inc.
RWB/DFA U.S. High Book to Market Portfolio
RWB/DFA Two-Year Corporate Fixed Income Portfolio
RWB/DFA Two-Year Government Portfolio
DFA Investment Dimensions Group Inc.
RWB/DFA International High Book to Market Portfolio
Annual Report
Year Ended November 30, 1998
-------------------------------------
<PAGE>
DIMENSIONAL INVESTMENT GROUP INC.
ANNUAL REPORT
TABLE OF CONTENTS
<TABLE>
<CAPTION>
PAGE
---------
<S> <C>
DIMENSIONAL INVESTMENT GROUP INC.
Performance Charts............................................................................................... 1
Statement of Assets and Liabilities.............................................................................. 2
Statements of Net Assets......................................................................................... 3-5
Statements of Operations......................................................................................... 6
Statements of Changes in Net Assets.............................................................................. 7-8
Financial Highlights............................................................................................. 9-10
Notes to Financial Statements.................................................................................... 11-12
Report of Independent Accountants................................................................................ 13
DFA INVESTMENT DIMENSIONS GROUP INC.
Performance Chart................................................................................................ 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
Report of Independent Accountants................................................................................ 21
THE DFA INVESTMENT TRUST COMPANY
Performance Charts............................................................................................... 23
Schedule of Investments.......................................................................................... 24-33
Statements of Assets and Liabilities............................................................................. 34
Statements of Operations......................................................................................... 35
Statements of Changes in Net Assets.............................................................................. 36
Financial Highlights............................................................................................. 37-38
Notes to Financial Statements.................................................................................... 39-41
Report of Independent Accountants................................................................................ 42
</TABLE>
This report is submitted for the information of the Funds' shareholders. It is
not authorized for distribution to prospective investors unless preceded or
accompanied by an effective prospectus.
i
<PAGE>
DIMENSIONAL INVESTMENT GROUP INC.
PERFORMANCE CHARTS
- ------------------------------------------------------------
RWB/DFA U.S. High Book-to-Market Portfolio vs.
Russell 1000 Value Index
July 1996-November 1998
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
GROWTH OF $10,000 RWB/DFA U.S. HIGH BOOK-TO-MARKET PORTFOLIO RUSSELL 1000 VALUE INDEX
<S> <C> <C>
$10,000 $10,000
Jul-96 $9,554 $9,622
Aug-96 $9,927 $9,897
Sep-96 $10,116 $10,291
Oct-96 $10,439 $10,689
Nov-96 $11,198 $11,464
Dec-96 $11,084 $11,318
Jan-97 $11,474 $11,867
Feb-97 $11,706 $12,041
Mar-97 $11,168 $11,607
Apr-97 $11,528 $12,095
May-97 $12,428 $12,771
Jun-97 $12,801 $13,319
Jul-97 $14,088 $14,321
Aug-97 $13,875 $13,811
Sep-97 $14,605 $14,645
Oct-97 $13,858 $14,236
Nov-97 $13,997 $14,866
Dec-97 $14,191 $15,300
Jan-98 $14,380 $15,084
Feb-98 $15,633 $16,099
Mar-98 $16,510 $17,084
Apr-98 $16,599 $17,199
May-98 $16,454 $16,944
Jun-98 $16,418 $17,161
Jul-98 $15,839 $16,859
Aug-98 $12,954 $14,350
Sep-98 $13,613 $15,174
Oct-98 $14,719 $16,350
Nov-98 $15,648 $17,112
<CAPTION>
GROWTH OF $10,000 FAMA-FRENCH LARGE CAP VALUE INDEX
<S> <C>
$10,000
Jul-96 $9,481
Aug-96 $9,829
Sep-96 $10,075
Oct-96 $10,353
Nov-96 $11,108
Dec-96 $11,052
Jan-97 $11,420
Feb-97 $11,688
Mar-97 $11,148
Apr-97 $11,553
May-97 $12,456
Jun-97 $12,856
Jul-97 $14,069
Aug-97 $13,880
Sep-97 $14,606
Oct-97 $14,168
Nov-97 $14,530
Dec-97 $14,853
Jan-98 $14,978
Feb-98 $16,234
Mar-98 $17,205
Apr-98 $17,429
May-98 $17,472
Jun-98 $17,483
Jul-98 $16,880
Aug-98 $14,091
Sep-98 $14,954
Oct-98 $16,298
Nov-98 $17,121
</TABLE>
<TABLE>
<CAPTION>
Annualized One From
Total Return (%) Year July 1996
- --------------------------------------
<S> <C> <C>
11.80 20.36
</TABLE>
- - The portfolio seeks to capture return premiums associated with high
book-to-market ratios by investing in the U.S. Large Cap Value Series of the
DFA Investment Trust Company which in turn invests in U.S. large companies on
a market cap-weighted basis. The series invests in companies that have average
weighted markets capitalizations of approximately $18.7 billion and book-to-
market ratios in the upper 30% of publicly traded U.S. companies.
- - The portfolio's returns in fiscal 1998 reflected the performance of large U.S.
companies with high book-to-market ratios.
- - The Russell 1000 Value Index is a more widely recognized and more broadly
based securities index than the Fama-French Large Cap Value Index, and is
replacing the latter for comparison purposes.
Past performance is not predictive of future performance.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
RWB/DFA Two-Year Corporate Fixed Income Portfolio vs.
Merrill Lynch 1-3 Year Government
July 1996-November 1998
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
GROWTH OF $10,000 RWB/DFA INTERNATIONAL HIGH BOOK-TO-MARKET PORTFOLIO EAFE INDEX (NET DIVIDENDS)
<S> <C> <C>
$10,000 $10,000
Jul-93 $10,383 $10,350
Aug-93 $10,983 $10,909
Sep-93 $10,777 $10,663
Oct-93 $11,046 $10,992
Nov-93 $10,291 $10,031
Dec-93 $11,111 $10,755
Jan-94 $12,045 $11,664
Feb-94 $11,921 $11,632
Mar-94 $11,599 $11,130
Apr-94 $11,983 $11,602
May-94 $12,056 $11,536
Jun-94 $12,191 $11,699
Jul-94 $12,430 $11,812
Aug-94 $12,617 $12,092
Sep-94 $12,170 $11,711
Oct-94 $12,679 $12,101
Nov-94 $12,011 $11,519
Dec-94 $12,085 $11,592
Jan-95 $11,602 $11,147
Feb-95 $11,570 $11,115
Mar-95 $12,253 $11,808
Apr-95 $12,632 $12,252
May-95 $12,558 $12,106
Jun-95 $12,433 $11,893
Jul-95 $13,126 $12,634
Aug-95 $12,675 $12,153
Sep-95 $12,748 $12,390
Oct-95 $12,506 $12,056
Nov-95 $12,845 $12,391
Dec-95 $13,471 $12,891
Jan-96 $13,599 $12,944
Feb-96 $13,684 $12,988
Mar-96 $13,877 $13,264
Apr-96 $14,413 $13,650
May-96 $14,273 $13,399
Jun-96 $14,326 $13,474
Jul-96 $13,941 $13,081
Aug-96 $13,994 $13,110
Sep-96 $14,240 $13,458
Oct-96 $14,100 $13,321
Nov-96 $14,721 $13,851
Dec-96 $14,534 $13,672
Jan-97 $14,038 $13,194
Feb-97 $14,170 $13,410
Mar-97 $14,214 $13,459
Apr-97 $14,137 $13,530
May-97 $15,216 $14,411
Jun-97 $15,866 $15,205
Jul-97 $16,086 $15,451
Aug-97 $15,029 $14,297
Sep-97 $15,579 $15,097
Oct-97 $14,765 $13,938
Nov-97 $14,137 $13,796
Dec-97 $14,075 $13,916
Jan-98 $14,922 $14,552
Feb-98 $15,895 $15,486
Mar-98 $16,606 $15,963
Apr-98 $16,652 $16,089
May-98 $16,800 $16,010
Jun-98 $16,641 $16,132
Jul-98 $16,824 $16,295
Aug-98 $14,625 $14,276
Sep-98 $13,835 $13,839
Oct-98 $15,209 $15,281
Nov-98 $15,874 $16,064
<CAPTION>
GROWTH OF $10,000 EAFE INDEX (GROSS DIVIDENDS)
<S> <C>
$10,000
Jul-93 $10,350
Aug-93 $10,909
Sep-93 $10,669
Oct-93 $11,000
Nov-93 $10,043
Dec-93 $10,766
Jan-94 $11,681
Feb-94 $11,646
Mar-94 $11,145
Apr-94 $11,624
May-94 $11,555
Jun-94 $11,716
Jul-94 $11,833
Aug-94 $12,117
Sep-94 $11,742
Oct-94 $12,141
Nov-94 $11,558
Dec-94 $11,628
Jan-95 $11,186
Feb-95 $11,152
Mar-95 $11,855
Apr-95 $12,305
May-95 $12,158
Jun-95 $11,951
Jul-95 $12,704
Aug-95 $12,221
Sep-95 $12,466
Oct-95 $12,129
Nov-95 $12,469
Dec-95 $12,980
Jan-96 $13,032
Feb-96 $13,084
Mar-96 $13,359
Apr-96 $13,746
May-96 $13,499
Jun-96 $13,580
Jul-96 $13,186
Aug-96 $13,212
Sep-96 $13,569
Oct-96 $13,433
Nov-96 $13,970
Dec-96 $13,789
Jan-97 $13,306
Feb-97 $13,532
Mar-97 $13,587
Apr-97 $13,668
May-97 $14,557
Jun-97 $15,357
Jul-97 $15,603
Aug-97 $14,448
Sep-97 $15,257
Oct-97 $14,083
Nov-97 $13,942
Dec-97 $14,067
Jan-98 $14,714
Feb-98 $15,656
Mar-98 $16,141
Apr-98 $16,270
May-98 $16,189
Jun-98 $16,319
Jul-98 $16,482
Aug-98 $14,438
Sep-98 $14,005
Oct-98 $15,475
Nov-98 $16,265
</TABLE>
<TABLE>
<CAPTION>
Annualized One From
Total Return (%) Year July 1996
- --------------------------------------
<S> <C> <C>
5.63 6.02
</TABLE>
- - The portfolio seeks to maximize expected returns by shifting maturities based
on changes in the yield curve. Using current prices, the strategy creates a
matrix of expected returns from different buy and sell strategies and
identifies the optimal maturity range for the highest expected returns.
Maturities are shifted if sufficient premiums can be documented. Investments
are made in U.S. government and high-quality corporate securities with a
maximum maturity of two years.
- - The portfolio's returns in fiscal 1998 reflected the performance of its
strategy.
Past performance is not predictive of future performance.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
RWB/DFA Two-Year Government Portfolio vs.
Merrill Lynch 1-3 Year Government
July 1996-November 1998
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
GROWTH OF $10,000 RWB/DFA TWO-YEAR CORPORATE FIXED INCOME PORTFOLIO MERRILL LYNCH 1-3 YEAR GOVERNMENT
<S> <C> <C>
$10,000 $10,000
Jul-96 $10,040 $10,039
Aug-96 $10,090 $10,073
Sep-96 $10,157 $10,165
Oct-96 $10,257 $10,280
Nov-96 $10,318 $10,359
Dec-96 $10,342 $10,359
Jan-97 $10,393 $10,407
Feb-97 $10,424 $10,431
Mar-97 $10,428 $10,427
Apr-97 $10,501 $10,513
May-97 $10,573 $10,584
Jun-97 $10,640 $10,657
Jul-97 $10,713 $10,775
Aug-97 $10,744 $10,784
Sep-97 $10,808 $10,866
Oct-97 $10,871 $10,947
Nov-97 $10,903 $10,973
Dec-97 $10,954 $11,047
Jan-98 $11,020 $11,155
Feb-98 $11,064 $11,165
Mar-98 $11,121 $11,210
Apr-98 $11,166 $11,263
May-98 $11,221 $11,323
Jun-98 $11,271 $11,382
Jul-98 $11,326 $11,435
Aug-98 $11,371 $11,579
Sep-98 $11,426 $11,733
Oct-98 $11,472 $11,791
Nov-98 $11,517 $11,780
</TABLE>
<TABLE>
<CAPTION>
Annualized One From
Total Return (%) Year July 1996
- ----------------------------------------
<S> <C> <C>
5.56 6.00
</TABLE>
- - The portfolio seeks to maximize expected returns by shifting maturities based
on changes in the yield curve. Using current prices, the strategy creates a
matrix of expected returns from different buy and sell strategies and
identifies the optimal maturity range for the highest expected returns.
Maturities are shifted if sufficient premiums can be documented. Investments
are made in U.S. government securities with a maximum maturity of two years.
- - The portfolio's returns in fiscal 1998 reflected the performance of its
strategy.
Past performance is not predictive of future performance.
- --------------------------------------------------------------------------------
1
<PAGE>
DFA INVESTMENT DIMENSIONS GROUP INC.
RWB/DFA U.S. HIGH BOOK TO MARKET PORTFOLIO
STATEMENT OF ASSETS AND LIABILITIES
NOVEMBER 30, 1998
(AMOUNTS IN THOUSANDS, EXCEPT SHARE AMOUNTS)
<TABLE>
<S> <C>
ASSETS:
Investment in The U.S. Large Cap Value Series of The DFA Investment Trust Company
(7,732,084 Shares, Cost $120,953++) at Value.......................................... $ 145,286
Receivables for:
Fund Shares Sold...................................................................... 60
Investment Securities Sold............................................................ 32
Prepaid Expenses and Other Assets..................................................... 24
------------
Total Assets........................................................................ 145,402
------------
LIABILITIES:
Payable for Fund Shares Redeemed........................................................ 92
Accrued Expenses and Other Liabilities.................................................. 32
------------
Total Liabilities................................................................... 124
------------
NET ASSETS.............................................................................. $ 145,278
------------
------------
SHARES OUTSTANDING $.01 PAR VALUE
(Authorized 100,000,000).............................................................. 10,386,980
------------
------------
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE................................ $ 13.99
------------
------------
</TABLE>
<TABLE>
<C> <S>
- --------------
++ The cost for federal income tax purposes is $122,571.
</TABLE>
See accompanying Notes to Financial Statements.
2
<PAGE>
RWB/DFA TWO-YEAR CORPORATE FIXED INCOME PORTFOLIO
STATEMENT OF NET ASSETS
NOVEMBER 30, 1998
<TABLE>
<CAPTION>
FACE
AMOUNT VALUE+
------------ ------------
(000)
<S> <C> <C>
COMMERCIAL PAPER -- (86.1%)
BP America C.P.
5.100%, 12/11/98................................... $ 4,500 $ 4,493,837
Barton Capital Corp. C.P.
5.220%, 12/11/98................................... 500 499,315
5.420%, 01/13/99................................... 500 496,877
5.370%, 01/14/99................................... 1,500 1,490,412
5.400%, 02/09/99................................... 2,000 1,980,205
Bayer Corp. C.P.
5.070%, 01/20/99................................... 4,250 4,219,128
Beta Finance, Inc. C.P.
5.350%, 01/12/99................................... 3,500 3,478,644
CC (USA), Inc. C.P.
5.350%, 02/16/99................................... 4,500 4,451,009
Caisse Centrale des Jardins du Quebec C.P.
5.250%, 01/26/99................................... 4,500 4,463,740
Canadian Wheat Board C.P.
4.900%, 12/16/98................................... 3,450 3,442,913
5.050%, 01/27/99................................... 1,000 991,798
Ciesco L.P.C.P.
5.270%, 01/28/99................................... 3,000 2,974,963
Coca Cola Co. C.P.
5.030%, 01/15/99................................... 4,500 4,470,581
Commerzbank C.P.
5.280%, 01/12/99................................... 4,500 4,472,542
Corporate Asset Funding Corp. C.P.
5.380%, 01/27/99................................... 4,500 4,463,092
Dresdner U.S. Finance C.P.
5.120%, 01/25/99................................... 4,500 4,464,388
Electricite de France C.P.
4.950%, 02/22/99................................... 4,500 4,447,191
Enterprise Funding Corp. C.P.
5.050%, 12/10/98................................... 3,047 3,043,222
5.350%, 01/22/99................................... 1,500 1,488,712
Equipment Intermediation Partnership C.P.
5.350%, 12/07/98................................... 4,500 4,495,070
Gannett Co. C.P.
5.030%, 01/15/99................................... 4,500 4,470,413
Govco, Inc. C.P.
5.380%, 01/15/99................................... 4,500 4,470,300
KFW International Financial Corp. C.P.
5.100%, 12/03/98................................... 4,500 4,498,768
Koch Industries, Inc. C.P.
5.250%, 12/01/98................................... 1,500 1,500,000
Louis Dreyfus Corp. C.P.
4.930%, 12/14/98................................... 4,500 4,491,972
National Rural Utilities C.P.
5.050%, 02/18/99................................... 2,000 1,977,441
Nestle Capital C.P.
5.100%, 12/01/98................................... 4,500 4,500,000
<CAPTION>
FACE
AMOUNT VALUE+
------------ ------------
(000)
<S> <C> <C>
Oesterreich Kontrollbank C.P.
5.250%, 12/14/98................................... $ 2,500 $ 2,495,549
5.15%, 12/14/98.................................... 1,500 1,497,330
5.000%, 02/22/99................................... 500 494,132
Paccar Financial Corp. C.P.
5.050%, 01/21/99................................... 4,500 4,466,977
Procter & Gamble Co. C.P.
4.850%, 12/03/98................................... 1,345 1,344,632
Sheffield Receivables Corp. C.P.
5.340%, 01/27/99................................... 500 495,899
6.50%, 01/27/99.................................... 4,000 3,967,193
Shell Financial U.K. C.P.
5.160%, 02/17/99................................... 4,500 4,450,372
Sigma Finance Corp. C.P.
5.400%, 01/04/99................................... 3,500 3,482,712
5.440%, 01/07/99................................... 1,000 994,625
St. Michael Finance, Ltd. C.P.
5.280%, 01/14/99................................... 3,500 3,477,499
5.100%, 01/15/99................................... 1,000 993,425
Statoil Corp. C.P.
5.250%, 01/22/99................................... 3,750 3,721,941
Sweden Kingdom C.P.
4.950%, 12/09/98................................... 1,000 998,904
Swedish Export Credit Corp. C.P.
5.230%, 01/08/99................................... 4,500 4,475,157
Teco Finance, Inc. C.P.
5.220%, 01/04/99................................... 4,500 4,477,560
USAA Capital Corp. C.P.
5.120%, 12/17/98................................... 4,000 3,991,218
5.100%, 01/14/99................................... 500 496,804
------------
TOTAL COMMERCIAL PAPER
(Cost $136,554,410).................................. 136,558,462
------------
VARIABLE RATE
OBLIGATIONS -- (8.5%)
Chase Manhattan Corp.
***5.500%, 02/24/99................................ 4,500 4,500,000
General Electric Capital Corp.
***5.16%, 02/24/99................................. 4,500 4,500,000
Key Bank N.A.
***5.469%, 01/04/99................................ 4,500 4,498,662
------------
TOTAL VARIABLE RATE OBLIGATIONS
(Cost $13,495,409)................................... 13,498,662
------------
BONDS -- (4.5%)
Illinois Tool Works, Inc. Corporate Bonds
7.500%, 12/01/98................................... 3,700 3,700,000
Sara Lee Corp. Medium Term Notes
5.500%, 12/01/98................................... 3,500 3,500,000
------------
TOTAL BONDS
(Cost $7,200,000).................................... 7,200,000
------------
</TABLE>
3
<PAGE>
RWB/DFA TWO-YEAR CORPORATE FIXED INCOME PORTFOLIO
CONTINUED
<TABLE>
<CAPTION>
FACE
AMOUNT VALUE+
------------ ------------
(000)
<S> <C> <C>
TEMPORARY CASH INVESTMENTS -- (0.7%)
Repurchase Agreement, PNC Capital Markets Inc. 4.95%,
12/01/98 (Collateralized by U.S. Treasury Notes
6.25%, 08/31/02, valued at $1,051,488) to be
repurchased at $1,032,142
(Cost $1,032,000)................................... $ 1,032 $ 1,032,000
------------
TOTAL INVESTMENTS -- (99.8%) (Cost $158,281,819)++..... 158,289,124
------------
OTHER ASSETS AND LIABILITIES -- (0.2%)
Interest Receivable................................... 208,685
Receivable for Fund Shares Sold....................... 135,324
Payable for Fund Shares Redeemed...................... (34,897)
Other Liabilities in Excess of Other Liabilities...... (12,342)
------------
296,770
------------
NET ASSETS -- (100.0%) Applicable to 15,556,195
Outstanding $0.01 Par Value Shares (100,000,000
Shares Authorized)................................... $158,585,894
------------
------------
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER
SHARE................................................ $ 10.19
------------
------------
- --------------------
+ See Note B to Financial Statements.
*** Rates shown are the rates as of November 30, 1998, and maturities shown
are the next interest readjustment date.
++ Approximates cost for federal income tax purposes.
</TABLE>
See accompanying Notes to Financial Statements.
4
<PAGE>
RWB/DFA TWO-YEAR GOVERNMENT PORTFOLIO
STATEMENT OF NET ASSETS
NOVEMBER 30, 1998
<TABLE>
<CAPTION>
FACE
AMOUNT VALUE+
------------ ------------
(000)
<S> <C> <C>
AGENCY OBLIGATIONS -- (97.6%)
Federal Farm Credit Bank
4.720%, 12/02/98.................................... $ 27,500 $ 27,496,150
5.020%, 12/09/98.................................... 6,000 5,993,640
4.770%, 12/10/98.................................... 10,500 10,487,295
5.000%, 01/05/99.................................... 20,000 19,902,972
5.000%, 01/20/99.................................... 49,000 48,660,401
Federal Home Loan Bank
4.790%, 12/16/98.................................... 12,000 11,976,450
------------
TOTAL AGENCY OBLIGATIONS
(Cost $124,515,730)................................... 124,516,908
------------
TEMPORARY CASH INVESTMENTS -- (2.4%)
Repurchase Agreement, PNC Capital Markets Inc. 4.95%,
12/01/98 (Collateralized by U.S. Treasury Notes
6.25%, 08/31/02, valued at $3,063,725) to be
repurchased at $3,012,414 (Cost $3,012,000)......... 3,012 3,012,000
------------
TOTAL INVESTMENTS -- (100.0%)
(Cost $127,527,730)++................................ 127,528,908
------------
OTHER ASSETS AND LIABILITIES -- (0.0%)
Other Assets.......................................... 58,436
Other Liabilities..................................... (101,032)
------------
(42,596)
------------
NET ASSETS -- (100.0%) Applicable to 12,514,468
Outstanding $0.01 Par Value Shares (100,000,000
Shares Authorized)................................... $127,486,312
------------
------------
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER
SHARE................................................ $ 10.19
------------
------------
- --------------
+ See Note B to Financial Statements.
++ Approximates cost for federal income tax purposes.
</TABLE>
See accompanying Notes to Financial Statements.
5
<PAGE>
DIMENSIONAL INVESTMENT GROUP INC.
STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED NOVEMBER 30, 1998
(AMOUNTS IN THOUSANDS)
<TABLE>
<CAPTION>
RWB/DFA RWB/DFA
U.S. TWO-YEAR
HIGH CORPORATE RWB/DFA
BOOK TO FIXED TWO-YEAR
MARKET INCOME GOVERNMENT
PORTFOLIO PORTFOLIO PORTFOLIO
-------- -------- ----------------
<S> <C> <C> <C>
INVESTMENT INCOME
Interest.................................................. -- $8,976 $ 7,026
Income Distributions Received from The DFA Investment
Trust Company........................................... $2,422 -- --
-------- -------- -------
Total Investment Income............................... 2,422 8,976 7,026
-------- -------- -------
EXPENSES
Investment Advisory Services.............................. -- 235 192
Administrative Services................................... 14 -- --
Accounting & Transfer Agent Fees.......................... 16 76 69
Client Service Fee........................................ 127 59 48
Custodian's Fees.......................................... -- 15 12
Legal Fees................................................ 7 14 7
Audit Fees................................................ 1 18 16
Filing Fees............................................... 47 29 25
Shareholders' Reports..................................... 18 23 30
Directors' Fees and Expenses.............................. 3 3 2
Organization Costs........................................ 6 6 6
Other..................................................... 3 6 3
-------- -------- -------
Total Expenses........................................ 242 484 410
-------- -------- -------
NET INVESTMENT INCOME..................................... 2,180 8,492 6,616
-------- -------- -------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Capital Gains Distributions Received from The DFA
Investment Trust Company................................ 7,112 -- --
Net Realized Gain (Loss) on Investment Securities......... (1,408) 289 442
Change in Unrealized Appreciation (Depreciation) of
Investment Securities................................. 6,448 (147) (173)
-------- -------- -------
NET GAIN ON INVESTMENT SECURITIES......................... 12,152 142 269
-------- -------- -------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........ $14,332 $8,634 $ 6,885
-------- -------- -------
-------- -------- -------
</TABLE>
See accompanying Notes to Financial Statements.
6
<PAGE>
DIMENSIONAL INVESTMENT GROUP INC.
RWB/DFA U.S. HIGH BOOK TO MARKET PORTFOLIO
STATEMENT OF CHANGES IN NET ASSETS
(AMOUNTS IN THOUSANDS)
<TABLE>
<CAPTION>
YEAR YEAR
ENDED ENDED
NOV. 30, NOV. 30,
1998 1997
--------- ---------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net Investment Income............................................. $ 2,180 $ 1,506
Capital Gain Distributions Received from The DFA Investment Trust
Company......................................................... 7,112 2,333
Net Realized Loss on Investment Securities........................ (1,408) (84)
Change in Unrealized Appreciation of:
Investment Securities........................................... 6,448 14,338
--------- ---------
Net Increase in Net Assets Resulting from Operations.......... 14,332 18,093
--------- ---------
Distributions From:
Net Investment Income............................................. (2,119) (1,243)
Net Realized Gains................................................ (3,940) (391)
--------- ---------
Total Distributions........................................... (6,059) (1,634)
--------- ---------
Capital Share Transactions (1):
Shares Issued..................................................... 53,048 92,481
Shares Issued in Lieu of Cash Distributions....................... 5,586 1,421
Shares Redeemed................................................... (50,113) (22,585)
--------- ---------
Net Increase From Capital Share Transactions.................. 8,521 71,317
--------- ---------
Total Increase................................................ 16,794 87,776
NET ASSETS
Beginning of Period............................................... 128,484 40,708
--------- ---------
End of Period..................................................... $ 145,278 $ 128,484
--------- ---------
--------- ---------
(1) SHARES ISSUED AND REDEEMED:
Shares Issued.................................................... 3,826 7,748
Shares Issued in Lieu of Cash Distributions...................... 437 122
Shares Redeemed.................................................. (3,670) (1,857)
--------- ---------
593 6,013
--------- ---------
--------- ---------
</TABLE>
See accompanying Notes to Financial Statements.
7
<PAGE>
DIMENSIONAL INVESTMENT GROUP INC.
STATEMENTS OF CHANGES IN NET ASSETS
(AMOUNTS IN THOUSANDS)
<TABLE>
<CAPTION>
RWB/DFA TWO-YEAR RWB/DFA TWO-YEAR
CORPORATE FIXED GOVERNMENT
INCOME PORTFOLIO PORTFOLIO
-------------------- --------------------
YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED
NOV. 30, NOV. 30, NOV. 30, NOV. 30,
1998 1997 1998 1997
--------- --------- --------- ---------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net Investment Income............ $ 8,492 $ 8,171 $ 6,616 $ 6,464
Capital Gain Distributions
Received from The DFA
Investment Trust Company....... -- 651 -- --
Net Realized Gain (Loss) on
Investment Securities.......... 289 (57) 442 134
Change in Unrealized
Depreciation of
Investment Securities.......... (147) (945) (173) (183)
--------- --------- --------- ---------
Net Increase in Net Assets
Resulting from
Operations................. 8,634 7,820 6,885 6,415
--------- --------- --------- ---------
Distributions From:
Net Investment Income............ (9,123) (7,543) (6,917) (5,995)
Net Realized Gains............... (30) (164) (140) (506)
--------- --------- --------- ---------
Total Distributions.......... (9,153) (7,707) (7,057) (6,501)
--------- --------- --------- ---------
Capital Share Transactions (1):
Shares Issued.................... 51,880 59,648 39,162 57,459
Shares Issued in Lieu of Cash
Distributions.................. 444 312 187 73
Shares Redeemed.................. (46,991) (29,108) (42,757) (31,024)
--------- --------- --------- ---------
Net Increase (Decrease) From
Capital Share
Transactions............... 5,333 30,852 (3,408) 26,508
--------- --------- --------- ---------
Total Increase (Decrease).... 4,814 30,965 (3,580) 26,422
NET ASSETS
Beginning of Period.............. 153,772 122,807 131,066 104,644
--------- --------- --------- ---------
End of Period.................... $ 158,586 $ 153,772 $ 127,486 $ 131,066
--------- --------- --------- ---------
--------- --------- --------- ---------
(1) SHARES ISSUED AND REDEEMED:
Shares Issued................... 5,115 5,875 3,864 5,691
Shares Issued in Lieu of Cash
Distributions................. 44 31 19 7
Shares Redeemed................. (4,634) (2,866) (4,218) (3,075)
--------- --------- --------- ---------
525 3,040 (336) 2,623
--------- --------- --------- ---------
--------- --------- --------- ---------
</TABLE>
See accompanying Notes to Financial Statements.
8
<PAGE>
DIMENSIONAL INVESTMENT GROUP INC.
FINANCIAL HIGHLIGHTS
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
RWB/DFA RWB/DFA
U.S. HIGH BOOK TWO-YEAR CORPORATE
TO MARKET PORTFOLIO FIXED INCOME PORTFOLIO
------------------------------------ ---------------------------------------
YEAR YEAR JUNE 7 YEAR YEAR JUNE 7
ENDED ENDED TO ENDED ENDED TO
NOV. 30, NOV. 30, NOV. 30, NOV. 30, NOV. 30, NOV. 30,
1998 1997 1996 1998 1997 1996
-------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period.... $ 13.12 $ 10.77 $ 10.00 $ 10.23 $ 10.24 $ 10.00
-------- -------- -------- -------- -------- --------
INCOME FROM INVESTMENT OPERATIONS
Net Investment Income................. 0.21 0.20 0.08 0.55 0.57 0.26
Net Gains (Losses) on Securities
(Realized and Unrealized)........... 1.27 2.45 0.72 -- (0.01) 0.11
-------- -------- -------- -------- -------- --------
Total from Investment Operations.... 1.48 2.65 0.80 0.55 0.56 0.37
-------- -------- -------- -------- -------- --------
LESS DISTRIBUTIONS
Net Investment Income................. (0.21) (0.20) (0.03) (0.59) (0.56) (0.13)
Net Realized Gains.................... (0.40) (0.10) -- -- (0.01) --
-------- -------- -------- -------- -------- --------
Total Distributions................. (0.61) (0.30) (0.03) (0.59) (0.57) (0.13)
-------- -------- -------- -------- -------- --------
Net Asset Value, End of Period.......... $ 13.99 $ 13.12 $ 10.77 $ 10.19 $ 10.23 $ 10.24
-------- -------- -------- -------- -------- --------
-------- -------- -------- -------- -------- --------
Total Return............................ 11.78% 25.01% 8.06%# 5.64% 5.79% 3.69%#
Net Assets, End of Period (thousands)... $145,278 $128,484 $ 40,708 $158,586 $153,772 $122,807
Ratio of Expenses to Average Net
Assets................................ 0.33%(1) 0.36%(1) 0.71%*(1) 0.31% 0.34%(a)(1) 0.31%*(a)(1)
Ratio of Net Investment Income to
Average Net Assets.................... 1.54% 1.76% 2.70%* 5.43% 5.83%(a) 5.72%*(a)
Portfolio Turnover Rate................. N/A N/A N/A 15.98% N/A N/A
Portfolio Turnover Rate of Master Fund
Series................................ 24.70% 17.71% 20.12%(2) N/A 147.78% 81.97*(2)
</TABLE>
<TABLE>
<C> <S>
- ----------------
* Annualized
# Non-Annualized
(1) Represents the combined ratio for the Portfolio and its respective
pro-rata share of its Master Fund Series.
(2) Items calculated for the period ended November 30, 1996.
(a) Had certain waivers and assumption of expenses not been in effect, the
ratios of expenses to average net assets for the periods ended 1997 and
1996 would have been 0.35% and 0.34%, respectively, and the ratios of net
investment income to average net assets for the periods ended November 30,
1997 and 1996 would have been 5.82% and 5.69%, respectively.
</TABLE>
See accompanying Notes to Financial Statements.
9
<PAGE>
DIMENSIONAL INVESTMENT GROUP INC.
FINANCIAL HIGHLIGHTS
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
RWB/DFA
TWO-YEAR
GOVERNMENT PORTFOLIO
------------------------------------------
YEAR YEAR JUNE 7
ENDED ENDED TO
NOV. 30, NOV. 30, NOV. 30,
1998 1997 1996
--------- --------- ---------
<S> <C> <C> <C>
Net Asset Value, Beginning of Period........................ $ 10.20 $ 10.23 $ 10.00
--------- --------- ---------
INCOME FROM INVESTMENT OPERATIONS
Net Investment Income..................................... 0.53 0.54 0.26
Net Gains on Securities (Realized and Unrealized)......... 0.02 0.01 0.10
--------- --------- ---------
Total from Investment Operations........................ 0.55 0.55 0.36
--------- --------- ---------
LESS DISTRIBUTIONS
Net Investment Income..................................... (0.55) (0.53) (0.13)
Net Realized Gains........................................ (0.01) (0.05) --
--------- --------- ---------
Total Distributions..................................... (0.56) (0.58) (0.13)
--------- --------- ---------
Net Asset Value, End of Period.............................. $ 10.19 $ 10.20 $ 10.23
--------- --------- ---------
--------- --------- ---------
Total Return................................................ 5.54% 5.58% 3.60%#
Net Assets, End of Period (thousands)....................... $ 127,486 $ 131,066 $ 104,644
Ratio of Expenses to Average Net Assets..................... 0.32% 0.37%(1)(a) 0.38%*(1)(a)
Ratio of Net Investment Income to Average Net Assets........ 5.17% 5.53%(1)(a) 5.81%*(1)(a)
Portfolio Turnover Rate..................................... 69.51% N/A N/A
Portfolio Turnover Rate of Master Fund Series............... N/A 153.67% 200.59%*
</TABLE>
<TABLE>
<C> <S>
- ----------------
* Annualized
# Non-Annualized
(1) Represents the combined ratio for the Portfolio and its respective
pro-rata share of its Master Fund Series.
(a) Had certain waivers and assumption of expenses not been in effect, the
ratios of expenses to average net assets for the periods ended 1997 and
1996 would have been 0.38% and 0.41%, respectively, and the ratios of net
investment income to average net assets for the periods ended November 30,
1997 and 1996 would have been 5.52% and 5.78%, respectively.
</TABLE>
See accompanying Notes to Financial Statements.
10
<PAGE>
DIMENSIONAL INVESTMENT GROUP INC.
NOTES TO FINANCIAL STATEMENTS
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 three are presented in this report.
The RWB/DFA U.S. High Book to Market Portfolio invests all of its assets in
The U.S. Large Cap Value Series (the "Series"), a corresponding Series of The
DFA Investment Trust Company. At November 30, 1998, the Portfolio owned 8% of
the outstanding shares of the Series. The financial statements of the Series is
included elsewhere in this report and should be read in conjunction with the
financial statements of the Feeder Funds.
As of the close of business on November 30, 1997, RWB/DFA Two-Year Corporate
Fixed Income Portfolio and RWB/DFA Two-Year Government Portfolio redeemed their
entire interest in The DFA Two-Year Corporate Fixed Income Series and The DFA
Two-Year Government Series, respectively, and received their share of the assets
and liabilities of their Series. Immediately following this transaction, those
Series were terminated.
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 U.S. Large Cap Value Series held
by the RWB/DFA U.S. High Book to Market Portfolio are valued at its respective
daily net asset value. Securities held by the RWB/DFA Two-Year Corporate
Portfolio and the RWB/DFA Two-Year Government Portfolio are valued on the basis
of prices provided by a pricing service when such prices are believed to reflect
the fair market value of such securities.
2. FEDERAL INCOME TAXES: It is the Portfolios' intention to continue to
qualify as a regulated investment company and distribute all of their 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 Portfolios, 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 year ended November 30, 1998, the
Portfolios' administrative fees were computed daily and paid monthly to the
Advisor based on the following effective annual rates of average daily net
assets for each Portfolio:
<TABLE>
<S> <C>
RWB/DFA U.S. High Book to Market Portfolio................................ 0.01%
RWB/DFA Two-Year Corporate Fixed Income Portfolio......................... 0.15%
RWB/DFA Two-Year Government Portfolio..................................... 0.15%
</TABLE>
11
<PAGE>
In addition, pursuant to a Client Service Agreement with Reinhardt Werba
Bowen Advisory Services ("RWBAS"), the Portfolios pay to RWBAS fees at the
following effective annual rates of their average daily net assets:
<TABLE>
<S> <C>
RWB/DFA U.S. High Book to Market Portfolio................................ 0.09%
RWB/DFA Two-Year Corporate Fixed Income Portfolio......................... 0.04%
RWB/DFA Two-Year Government Portfolio..................................... 0.04%
</TABLE>
Certain officers of the Portfolios' are also officers, directors and
shareholders of the Advisor.
D. PURCHASES AND SALES OF SECURITIES:
For the year ended November 30, 1998, the following portfolios made the
following purchases and sales of Investment Securities:
<TABLE>
<CAPTION>
OTHER
U.S. GOVERNMENT INVESTMENT
SECURITIES SECURITIES
---------------------- ----------------------
PURCHASES SALES PURCHASES SALES
----------- --------- ----------- ---------
(000) (000) (000) (000)
<S> <C> <C> <C> <C>
The RWB/DFA Two-Year Corporate
Fixed Income Portfolio.................................. -- -- $ 17,995 $ 63,549
The RWB/DFA Two-Year
Government Portfolio.................................... $ 35,064 $ 137,997 -- --
</TABLE>
E. INVESTMENT TRANSACTIONS:
At November 30, 1998, gross unrealized appreciation and depreciation for
federal income tax purposes of investment securities for each Portfolio were as
follows:
<TABLE>
<CAPTION>
GROSS
UNREALIZED GROSS UNREALIZED
APPRECIATION DEPRECIATION NET
--------------- ----------------- ---------
(000) (000) (000)
<S> <C> <C> <C>
The RWB/DFA U.S. High Book to Market Portfolio.............. $ 24,333 -- $ 24,333
The RWB/DFA Two-Year Corporate Fixed Income Portfolio....... 17 $ (10) 7
The RWB/DFA Two-Year Government Portfolio................... 1 -- 1
</TABLE>
F. 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 Portfolios during the year ended November 30, 1998.
G. COMPONENTS OF NET ASSETS:
At November 30, 1998, net assets consisted of (amounts in thousands):
<TABLE>
<CAPTION>
RWB/DFA U.S. RWB/DFA RWB/DFA
HIGH BOOK TO TWO-YEAR TWO-YEAR
MARKET PORTFOLIO CORPORATE PORTFOLIO GOVERNMENT PORTFOLIO
---------------- ------------------- ---------------------
<S> <C> <C> <C>
Paid-In Capital................................................ $ 116,825 $ 156,314 $ 125,500
Undistributed Net Investment Income............................ 500 1,574 1,551
Undistributed Net Realized Gain................................ 3,620 691 434
Unrealized Appreciation of Investment Securities............... 24,333 7 1
---------------- ---------- ----------
$ 145,278 $ 158,586 $ 127,486
---------------- ---------- ----------
---------------- ---------- ----------
</TABLE>
12
<PAGE>
REPORT OF INDEPENDENT ACCOUNTANTS
TO THE SHAREHOLDERS AND BOARD OF DIRECTORS OF
DIMENSIONAL INVESTMENT GROUP INC.:
In our opinion, the accompanying statement of assets and liabilities of
Dimensional Investment Group Inc., RWB/ DFA U.S. High Book to Market Portfolio,
statements of net assets of Dimensional Investment Group Inc., RWB/DFA Two-Year
Corporate Fixed Income Portfolio RWB/DFA Two-Year Government Portfolio, and the
related statements of operations, and of changes in net assets and the financial
highlights present fairly, in all material respects, the financial position of
Dimensional Investment Group Inc., RWB/DFA U.S. High Book to Market Portfolio,
RWB/DFA Two-Year Corporate Fixed Income Portfolio and RWB/DFA Two-Year
Government Portfolio at November 30, 1998, the results of its operations,
changes in its net assets and its financial highlights for each of the periods
presented, in conformity with generally accepted accounting principles. These
financial statements and financial highlights (hereafter referred to as
"financial statements") are the responsibility of the Fund's management; our
responsibility is to express an opinion on these financial statements based on
our audits. We conducted our audits of these financial statements in accordance
with generally accepted auditing standards which require that we plan and
perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements, assessing the accounting principles used and significant estimates
made by management, and evaluating the overall financial statement presentation.
We believe that our audits, which included confirmation of securities at
November 30, 1998 by correspondence with the custodian and brokers, provide a
reasonable basis for the opinion expressed above.
PricewaterhouseCoopers LLP
2400 Eleven Penn Center
Philadelphia, Pennsylvania
January 15, 1999
13
<PAGE>
DFA INVESTMENT DIMENSIONS GROUP INC.
PERFORMANCE CHART
- --------------------------------------------------------------------------------
RWB/DFA International High Book-to-Market Portfolio vs.
EAFE Index (net dividends)
July 1993-November 1998
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
GROWTH OF $10,000 RWB/DFA TWO-YEAR GOVERNMENT PORTFOLIO MERRILL LYNCH 1-3 YEAR GOVERNMENT
<S> <C> <C>
$10,000 $10,000
Jul-96 $10,050 $10,039
Aug-96 $10,080 $10,073
Sep-96 $10,158 $10,165
Oct-96 $10,258 $10,280
Nov-96 $10,329 $10,359
Dec-96 $10,329 $10,359
Jan-97 $10,381 $10,407
Feb-97 $10,412 $10,431
Mar-97 $10,396 $10,427
Apr-97 $10,479 $10,513
May-97 $10,542 $10,584
Jun-97 $10,616 $10,657
Jul-97 $10,721 $10,775
Aug-97 $10,743 $10,784
Sep-97 $10,810 $10,866
Oct-97 $10,874 $10,947
Nov-97 $10,906 $10,973
Dec-97 $10,965 $11,047
Jan-98 $11,030 $11,155
Feb-98 $11,074 $11,165
Mar-98 $11,124 $11,210
Apr-98 $11,169 $11,263
May-98 $11,224 $11,323
Jun-98 $11,271 $11,382
Jul-98 $11,326 $11,435
Aug-98 $11,370 $11,579
Sep-98 $11,421 $11,733
Oct-98 $11,467 $11,791
Nov-98 $11,512 $11,780
</TABLE>
<TABLE>
<CAPTION>
Annualized
Total Return One Five From
(%) Year Years July 1993
- ------------------------------------------------
<S> <C> <C> <C>
12.28 9.06 8.90
</TABLE>
- - The portfolio invests in the DFA International Value Series of the DFA
Investment Trust Company which in turn invests in companies with market
capitalization of at least $800 million and book-to-market ratios in the upper
30% of large publicly traded non-U.S. companies. Country weightings reflect
the EAFE Index
market capitalization weight, with Japan limited to 38%.
- - The portfolio's returns in fiscal 1998 reflected the performance of large,
non-U.S. companies with high book-to-market ratios.
- - The EAFE Index (net dividends) is a more appropriate measure of the dividend
that foreign investors can attain due to foreign withholding taxes than the
EAFE Index (gross dividends), and is replacing the latter for comparison
purposes.
Past performance is not predictive of future performance.
- --------------------------------------------------------------------------------
14
<PAGE>
DFA INVESTMENT DIMENSIONS GROUP INC.
RWB/DFA INTERNATIONAL HIGH BOOK TO MARKET PORTFOLIO
STATEMENT OF ASSETS AND LIABILITIES
NOVEMBER 30, 1998
(AMOUNTS IN THOUSANDS, EXCEPT SHARE AMOUNTS)
<TABLE>
<S> <C>
ASSETS:
Investments in The DFA International Value Series of The DFA Investment Trust Company
(24,002,587 Shares, Cost $241,687++) at Value......................................... $ 286,831
Receivable for Fund Shares Sold......................................................... 118
Prepaid Expenses and Other Assets....................................................... 7
------------
Total Assets........................................................................ 286,956
------------
LIABILITIES:
Payable for Investment Securities Purchased............................................. 18
Payable for Fund Shares Redeemed........................................................ 100
Accrued Expenses and Other Liabilities.................................................. 48
------------
Total Liabilities................................................................... 166
------------
NET ASSETS.............................................................................. $ 286,790
------------
------------
SHARES OUTSTANDING $.01 PAR VALUE....................................................... 20,691,814
------------
------------
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE................................ $ 13.86
------------
------------
NET ASSETS CONSIST OF:
Paid-In Capital..................................................................... $ 239,193
Undistributed Net Investment Income................................................. 4,813
Accumulated Net Realized Loss....................................................... (2,360)
Unrealized Appreciation of Investment Securities.................................... 45,144
------------
Total Net Assets.................................................................... $ 286,790
------------
------------
</TABLE>
<TABLE>
<C> <S>
- --------------
++ The adjusted cost for federal income tax purposes is $244,963.
</TABLE>
See accompanying Notes to Financial Statements.
15
<PAGE>
DFA INVESTMENT DIMENSIONS GROUP INC.
RWB/DFA INTERNATIONAL HIGH BOOK TO MARKET PORTFOLIO
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED NOVEMBER 30, 1998
(AMOUNTS IN THOUSANDS)
<TABLE>
<S> <C>
INVESTMENT INCOME
Income Distributions Received From The DFA
Investment Trust Company...................... $ 6,657
-----------
EXPENSES
Administrative Services......................... 29
Accounting & Transfer Agent Fees................ 20
Client Service Fee.............................. 382
Legal Fees...................................... 4
Audit Fees...................................... 1
Filing Fees..................................... 31
Shareholders' Reports........................... 12
Directors' Fees and Expenses.................... 4
Organization Costs.............................. 5
Other........................................... 2
-----------
Total Expenses.............................. 490
-----------
NET INVESTMENT INCOME........................... 6,167
-----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS AND FOREIGN CURRENCY................
Capital Gain Distributions Received from The DFA
Investment Trust Company...................... 721
Net Realized Loss on Investment Securities...... (1,829)
Change in Unrealized Appreciation of Investment
Securities.................................... 28,043
-----------
NET GAIN ON INVESTMENT SECURITIES AND FOREIGN
CURRENCY...................................... 26,935
-----------
NET INCREASE IN NET ASSETS RESULTING FROM
OPERATIONS...................................... $33,102
-----------
-----------
</TABLE>
See accompanying Notes to Financial Statements.
16
<PAGE>
DFA INVESTMENT DIMENSIONS GROUP INC.
RWB/DFA INTERNATIONAL HIGH BOOK TO MARKET PORTFOLIO
STATEMENT OF CHANGES IN NET ASSETS
(AMOUNTS IN THOUSANDS)
<TABLE>
<CAPTION>
YEAR YEAR
ENDED ENDED
NOV. 30, NOV. 30,
1998 1997
--------- ---------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net Investment Income............................................. $ 6,167 $ 4,718
Capital Gain Distributions Received from The DFA Investment Trust
Company......................................................... 721 5,179
Net Realized Gain (Loss) on Investment Securities................. (1,829) 44
Change in Unrealized Appreciation (Depreciation) of:
Investment Securities and Foreign Currency...................... 28,043 (21,705)
--------- ---------
Net Increase (Decrease) in Net Assets Resulting from
Operations.................................................. 33,102 (11,764)
--------- ---------
Distributions From:
Net Investment Income............................................. (5,715) (4,329)
Net Realized Gains................................................ (4,682) (2,675)
--------- ---------
Total Distributions........................................... (10,397) (7,004)
--------- ---------
Capital Share Transactions (1):
Shares Issued..................................................... 73,216 101,480
Shares Issued in Lieu of Cash Distributions....................... 10,397 7,004
Shares Redeemed................................................... (94,585) (72,030)
--------- ---------
Net Decrease From Capital Share Transactions.................. (10,972) (36,454)
--------- ---------
Total Increase................................................ 11,733 17,686
NET ASSETS
Beginning of Period............................................... 275,057 257,371
--------- ---------
End of Period..................................................... $ 286,790 $ 275,057
--------- ---------
--------- ---------
(1) SHARES ISSUED AND REDEEMED:
Shares Issued.................................................... 5,385 7,480
Shares Issued in Lieu of Cash Distributions...................... 865 535
Shares Redeemed.................................................. (6,978) (5,300)
--------- ---------
(728) 2,715
--------- ---------
--------- ---------
</TABLE>
See accompanying Notes to Financial Statements.
17
<PAGE>
DIMENSIONAL INVESTMENT GROUP INC.
RWB/DFA INTERNATIONAL HIGH BOOK TO MARKET PORTFOLIO
FINANCIAL HIGHLIGHTS
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
YEAR
ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
NOV. 30, NOV. 30, NOV. 30, NOV. 30, NOV. 30,
1998 1997 1996 1995 1994
--------- ---------- ---------- ---------- ------------
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period.... $ 12.84 $ 13.76 $ 12.02 $ 11.44 $ 9.92
--------- ---------- ---------- ---------- ------------
INCOME FROM INVESTMENT OPERATIONS
Net Investment Income................. 0.30 0.22 0.22 0.19 0.14
Net Gains (Losses) on Securities
(Realized and Unrealized)........... 1.21 (0.77) 1.53 0.60 1.52
--------- ---------- ---------- ---------- ------------
Total from Investment Operations.... 1.51 (0.55) 1.75 0.79 1.66
--------- ---------- ---------- ---------- ------------
LESS DISTRIBUTIONS
Net Investment Income................. (0.27) (0.23) (0.01) (0.19) (0.14)
Net Realized Gains.................... (0.22) (0.14) -- (0.02) --
--------- ---------- ---------- ---------- ------------
Total Distributions................. (0.49) (0.37) (0.01) (0.21) (0.14)
--------- ---------- ---------- ---------- ------------
Net Asset Value, End of Period.......... $ 13.86 $ 12.84 $ 13.76 $ 12.02 $ 11.44
--------- ---------- ---------- ---------- ------------
--------- ---------- ---------- ---------- ------------
Total Return............................ 12.28% (4.04)% 14.61% 6.95% 16.71%
Net Assets, End of Period (thousands)... $ 286,790 $ 275,057 $ 257,371 $ 172,017 $ 112,952
Ratio of Expenses to Average Net
Assets................................ 0.17% 0.50% 0.54% 0.68% 0.69%(a)
Ratio of Net Investment Income to
Average Net Assets.................... 2.10% 1.72% 1.88% 1.85% 1.39%(a)
Portfolio Turnover Rate................. N/A N/A N/A N/A 0.15%*(b)
Portfolio Turnover Rate of Master Fund
Series................................ 15.41% 22.55% 12.23% 9.75% 1.90%*(c)
</TABLE>
<TABLE>
<C> <S>
- ----------------
* Annualized.
(a) Had certain waivers and assumption of expenses not been in effect, the
ratios of expenses to average net assets for the year ended November 30,
1994 would have been 0.73%, and the ratio of net investment income to
average net assets for the year ended November 30, 1994 would have been
1.38%.
(b) Portfolio turnover rate calculated for the period ended February 15, 1994
(through date of Exchange Transaction).
(c) Master Fund Series turnover calculated for the period February 16 to
November 30, 1994.
</TABLE>
See accompanying Notes to Financial Statements.
18
<PAGE>
INVESTMENT DIMENSIONS GROUP INC.
NOTES TO FINANCIAL STATEMENTS
A. ORGANIZATION:
Investment Dimensions 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 thirty portfolios, of
which the RWB/DFA International High Book to Market 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 November 30, 1998, the Portfolio owned 17% of the outstanding shares
of the Series. The financial statements of the Master Funds are included
elsewhere in this report and should be read in conjunction with the financial
statements of the Feeder Funds.
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 continue 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 year ended November 30, 1998, the
Portfolio's administrative fees were computed daily and paid monthly to the
Advisor based on an effective annual rate of 0.01 of 1% of average daily net
assets for each Fund.
In addition, pursuant to a Client Service Agreement with Reinhardt Werba
Bowen Advisory Services ("RWBAS"), the Portfolio pays to RWBAS a fee at the
effective annual rate of 0.04% of its average daily net assets for each fund.
Certain officers of the Portfolio are also officers, directors and
shareholders of the Advisor.
19
<PAGE>
D. INVESTMENT TRANSACTIONS:
At November 30, 1998, gross unrealized appreciation and depreciation for
federal income tax purposes of investment securities was as follows:
<TABLE>
<S> <C>
Gross Unrealized Appreciation........................... $ 41,868
Gross Unrealized Depreciation........................... --
-----------
Net..................................................... $ 41,868
-----------
-----------
</TABLE>
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 year ended November 30, 1998.
20
<PAGE>
REPORT OF INDEPENDENT ACCOUNTANTS
TO THE SHAREHOLDERS AND BOARD OF DIRECTORS OF
DFA INVESTMENT DIMENSIONS GROUP INC.:
In our opinion, the accompanying statement of assets and liabilities of DFA
Investment Dimensions Group Inc., RWB/DFA International High Book to Market
Portfolio, and the related statements of operations, and of changes in net
assets and the financial highlights present fairly, in all material respects,
the financial position of DFA Investment Dimensions Group Inc., RWB/DFA
International High Book to Market Portfolio at November 30, 1998, the results of
its operations, changes in its net assets and its financial highlights for each
of the periods presented, in conformity with generally accepted accounting
principles. These financial statements and financial highlights (hereafter
referred to as "financial statements") are the responsibility of the Fund's
management; our responsibility is to express an opinion on these financial
statements based on our audits. We conducted our audits of these financial
statements in accordance with generally accepted auditing standards which
require that we plan and perform the audit to obtain reasonable assurance about
whether the financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements, assessing the accounting principles
used and significant estimates made by management, and evaluating the overall
financial statement presentation. We believe that our audits, which included
confirmation of securities at November 30, 1998 by correspondence with the
custodian and brokers, provide a reasonable basis for the opinion expressed
above.
PricewaterhouseCoopers LLP
2400 Eleven Penn Center
Philadelphia, Pennsylvania
January 15, 1999
21
<PAGE>
[THIS PAGE INTENTIONALLY LEFT BLANK]
22
<PAGE>
THE DFA INVESTMENT TRUST COMPANY
PERFORMANCE CHARTS
- ------------------------------------------------------------
U.S. Large Cap Value Series vs.
Russell 1000 Value Index
March 1993-November 1998
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
GROWTH OF $10,000 U.S. LARGE CAP VALUE SERIES RUSSELL 1000 VALUE INDEX FAMA-FRENCH LARGE CAP VALUE INDEX
<S> <C> <C> <C>
$10,000 $10,000 $10,000
Mar-93 $10,109 $10,295 $10,302
Apr-93 $10,080 $10,163 $10,247
May-93 $10,189 $10,368 $10,333
Jun-93 $10,406 $10,596 $10,501
Jul-93 $10,553 $10,714 $10,623
Aug-93 $10,810 $11,101 $10,980
Sep-93 $10,622 $11,119 $10,869
Oct-93 $10,750 $11,111 $10,907
Nov-93 $10,650 $10,882 $10,742
Dec-93 $10,906 $11,089 $11,018
Jan-94 $11,219 $11,508 $11,242
Feb-94 $10,714 $11,114 $10,748
Mar-94 $10,280 $10,701 $10,273
Apr-94 $10,441 $10,906 $10,418
May-94 $10,370 $11,032 $10,291
Jun-94 $10,155 $10,768 $10,097
Jul-94 $10,605 $11,103 $10,542
Aug-94 $10,911 $11,422 $10,821
Sep-94 $10,592 $11,043 $10,423
Oct-94 $10,799 $11,196 $10,621
Nov-94 $10,315 $10,744 $10,137
Dec-94 $10,440 $10,867 $10,178
Jan-95 $10,680 $11,202 $10,445
Feb-95 $11,285 $11,645 $11,127
Mar-95 $11,457 $11,900 $11,299
Apr-95 $11,877 $12,276 $11,695
May-95 $12,495 $12,792 $12,249
Jun-95 $12,769 $12,966 $12,564
Jul-95 $13,328 $13,418 $13,146
Aug-95 $13,730 $13,607 $13,451
Sep-95 $14,205 $14,099 $13,854
Oct-95 $13,621 $13,960 $13,274
Nov-95 $14,366 $14,667 $13,963
Dec-95 $14,469 $15,036 $14,118
Jan-96 $14,880 $15,505 $14,462
Feb-96 $15,102 $15,623 $14,675
Mar-96 $15,627 $15,888 $15,108
Apr-96 $15,884 $15,949 $15,432
May-96 $16,152 $16,148 $15,672
Jun-96 $15,682 $16,161 $15,272
Jul-96 $14,986 $15,550 $14,479
Aug-96 $15,581 $15,995 $15,011
Sep-96 $15,892 $16,631 $15,386
Oct-96 $16,412 $17,275 $15,811
Nov-96 $17,595 $18,527 $16,965
Dec-96 $17,423 $18,290 $16,878
Jan-97 $18,047 $19,177 $17,440
Feb-97 $18,406 $19,459 $17,850
Mar-97 $17,563 $18,759 $17,026
Apr-97 $18,141 $19,546 $17,644
May-97 $19,548 $20,639 $19,023
Jun-97 $20,150 $21,525 $19,634
Jul-97 $22,170 $23,143 $21,485
Aug-97 $21,844 $22,319 $21,198
Sep-97 $22,995 $23,667 $22,306
Oct-97 $21,818 $23,007 $21,637
Nov-97 $22,049 $24,024 $22,191
Dec-97 $22,357 $24,725 $22,684
Jan-98 $22,655 $24,377 $22,874
Feb-98 $24,635 $26,017 $24,793
Mar-98 $26,017 $27,610 $26,276
Apr-98 $26,160 $27,795 $26,617
May-98 $25,940 $27,383 $26,684
Jun-98 $25,878 $27,734 $26,700
Jul-98 $24,980 $27,246 $25,779
Aug-98 $20,434 $23,192 $21,520
Sep-98 $21,470 $24,523 $22,837
Oct-98 $23,224 $26,423 $24,890
Nov-98 $24,677 $27,655 $26,147
</TABLE>
<TABLE>
<CAPTION>
Annualized One Five From
Total Return (%) Year Years March 1993
- ---------------------------------------------------
<S> <C> <C> <C>
11.92 18.30 17.01
</TABLE>
- - The series seeks to capture return premiums associated with high
book-to-market ratios and market capitalization by investing in U.S. large
companies on a market cap-weighted basis. The series invests in companies that
have average weighted markets capitalizations of approximately $18.7 billion
and book-to-market ratios in the upper 30% of publicly traded U.S. companies.
- - The series' returns in fiscal 1998 reflected the performance of large cap high
book-to-market U.S. companies.
- - The Russell 1000 Value Index is a more widely recognized and more broadly
based securities index than the Fama-French Large Cap Value Index, and is
replacing the latter for comparison purposes.
Past performance is not predictive of future performance.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
DFA International Value Series vs.
EAFE Index (net dividends)
March 1994-November 1998
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
GROWTH OF $10,000 DFA INTERNATIONAL VALUE SERIES EAFE INDEX (NET DIVIDENDS) EAFE INDEX (GROSS DIVIDENDS)
<S> <C> <C> <C>
$10,000 $10,000 $10,000
Mar-94 $9,733 $9,569 $9,570
Apr-94 $10,060 $9,975 $9,982
May-94 $10,119 $9,918 $9,922
Jun-94 $10,239 $10,058 $10,061
Jul-94 $10,438 $10,155 $10,161
Aug-94 $10,598 $10,396 $10,405
Sep-94 $10,228 $10,068 $10,082
Oct-94 $10,658 $10,404 $10,425
Nov-94 $10,099 $9,903 $9,925
Dec-94 $10,159 $9,966 $9,984
Jan-95 $9,757 $9,583 $9,605
Feb-95 $9,736 $9,556 $9,576
Mar-95 $10,312 $10,152 $10,179
Apr-95 $10,633 $10,533 $10,566
May-95 $10,573 $10,408 $10,439
Jun-95 $10,463 $10,225 $10,262
Jul-95 $11,052 $10,862 $10,909
Aug-95 $10,676 $10,448 $10,494
Sep-95 $10,740 $10,652 $10,704
Oct-95 $10,536 $10,365 $10,415
Nov-95 $10,826 $10,653 $10,706
Dec-95 $11,351 $11,083 $11,145
Jan-96 $11,464 $11,128 $11,190
Feb-96 $11,537 $11,166 $11,235
Mar-96 $11,698 $11,404 $11,471
Apr-96 $12,154 $11,736 $11,803
May-96 $12,040 $11,520 $11,591
Jun-96 $12,083 $11,584 $11,660
Jul-96 $11,760 $11,246 $11,322
Aug-96 $11,811 $11,271 $11,345
Sep-96 $12,019 $11,570 $11,651
Oct-96 $11,904 $11,452 $11,535
Nov-96 $12,434 $11,908 $11,996
Dec-96 $12,271 $11,755 $11,840
Jan-97 $11,861 $11,343 $11,426
Feb-97 $11,969 $11,529 $11,620
Mar-97 $12,013 $11,571 $11,667
Apr-97 $11,948 $11,632 $11,737
May-97 $12,855 $12,389 $12,499
Jun-97 $13,413 $13,072 $13,187
Jul-97 $13,598 $13,284 $13,398
Aug-97 $12,706 $12,291 $12,406
Sep-97 $13,174 $12,980 $13,101
Oct-97 $12,483 $11,983 $12,092
Nov-97 $11,955 $11,861 $11,971
Dec-97 $11,907 $11,964 $12,079
Jan-98 $12,627 $12,511 $12,635
Feb-98 $13,456 $13,314 $13,443
Mar-98 $14,051 $13,724 $13,860
Apr-98 $14,095 $13,832 $13,971
May-98 $14,227 $13,764 $13,901
Jun-98 $14,089 $13,869 $14,012
Jul-98 $14,245 $14,009 $14,153
Aug-98 $12,382 $12,273 $12,398
Sep-98 $11,716 $11,898 $12,026
Oct-98 $12,883 $13,138 $13,288
Nov-98 $13,448 $13,810 $13,966
</TABLE>
<TABLE>
<CAPTION>
Annualized One From
Total Return (%) Year March 1994
- ----------------------------------------
<S> <C> <C>
12.49 6.44
</TABLE>
- - The series invests in companies with market capitalization of at least $800
million and book-to-market ratios in the upper 30% of large publicly traded
non-U.S. companies. Country weightings reflect the EAFE index market
capitalization weight, with Japan limited to 38%.
- - The series' returns in fiscal 1998 reflected the performance of large,
non-U.S. companies with high book-to-market ratios.
- - The EAFE Index (net dividends) is a more appropriate measure of the dividend
that foreign investors can attain due to foreign withholding taxes than the
EAFE Index (gross dividends), and is replacing the latter for comparison
purposes.
Past performance is not predictive of future performance.
- --------------------------------------------------------------------------------
23
<PAGE>
THE U.S. LARGE CAP VALUE SERIES
SCHEDULE OF INVESTMENTS
NOVEMBER 30, 1998
<TABLE>
<CAPTION>
SHARES VALUE+
------------ ------------
<S> <C> <C>
COMMON STOCKS -- (99.0%)
AK Steel Holding Corp................................. 156,800 $ 3,008,600
*AMR Corp............................................. 453,000 29,869,687
AVX Corp.............................................. 177,100 3,442,381
*Adaptec, Inc......................................... 50,800 828,675
*Advanced Micro Devices, Inc.......................... 485,900 13,453,356
Aetna, Inc............................................ 544,726 42,114,129
*Airgas, Inc.......................................... 28,800 291,600
*Alaska Air Group, Inc................................ 21,200 793,675
Albemarle Corp........................................ 97,500 1,815,937
Alexander & Baldwin, Inc.............................. 109,700 2,509,387
*Alleghany Corp....................................... 8,432 1,621,052
Aluminium Co. of America.............................. 69,271 5,134,713
Ambac, Inc............................................ 150,200 9,162,200
Amerada Hess Corp..................................... 179,900 9,984,450
*America West Holdings Corp. Class B.................. 85,700 1,210,512
American Financial Group, Inc. (New).................. 75,000 2,948,437
American General Corp................................. 440,707 31,042,299
American Greetings Corp. Class A...................... 19,400 820,862
American National Insurance Co........................ 21,900 1,828,650
Amerus Life Holdings, Inc. Class A.................... 28,000 617,750
Apache Corp........................................... 186,600 4,291,800
Arch Coal, Inc........................................ 12,600 241,762
Archer-Daniels Midland Co............................. 1,299,935 23,886,306
*Arrow Electronics, Inc............................... 287,600 6,255,300
Asarco, Inc........................................... 104,900 2,032,437
*Associated Group, Inc. Class A....................... 6,500 243,344
Astoria Financial Corp................................ 23,800 1,071,744
Atlantic Richfield Co................................. 221,200 14,709,800
*Atmel Corp........................................... 131,200 1,594,900
Avnet, Inc............................................ 115,600 6,726,475
*BJ Services, Co...................................... 228,200 3,152,012
Baker Hughes, Inc..................................... 75,400 1,380,762
Ball Corp............................................. 112,500 4,809,375
Bancwest Corp......................................... 98,600 4,264,450
Bankers Trust New York Corp........................... 211,700 18,417,900
Bear Stearns Companies, Inc........................... 249,637 10,484,754
Berkley (W.R.) Corp................................... 47,400 1,589,381
*Bethlehem Steel Corp................................. 285,500 2,355,375
*Beverly Enterprises.................................. 296,100 1,702,575
Black & Decker Corp................................... 168,800 9,146,850
Block Drug Co., Inc. Class A.......................... 37,588 1,426,026
Boise Cascade Corp.................................... 162,100 5,136,544
Borg Warner Automotive, Inc........................... 46,300 2,309,212
Bowater, Inc.......................................... 141,300 5,581,350
*Brinker International, Inc........................... 18,700 475,681
Brunswick Corp........................................ 273,500 6,017,000
Burlington Coat Factory Warehouse Corp................ 10,000 145,000
Burlington Northern Santa Fe Corp..................... 940,100 31,963,400
CIGNA Corp............................................ 294,324 22,902,086
*CNA Financial Corp................................... 422,500 18,061,875
CSX Corp.............................................. 484,500 20,197,594
*Cabletron Systems, Inc............................... 438,500 6,139,000
Capital Re Corp....................................... 26,600 525,350
Carpenter Technology Corp............................. 21,900 773,344
*Case Corp............................................ 166,300 4,032,775
#Champion International Corp.......................... 206,000 8,561,875
Chesapeake Corp....................................... 15,100 523,781
Chicago Title Corp.................................... 14,996 701,063
Chiquita Brands International, Inc.................... 111,200 1,251,000
*Chris-Craft Industries, Inc.......................... 68,808 3,182,370
Cincinnati Financial Corp............................. 333,380 13,012,238
*Circus Circus Enterprises, Inc....................... 271,300 3,136,906
<CAPTION>
SHARES VALUE+
------------ ------------
<S> <C> <C>
Citizens Corp......................................... 94,700 $ 3,131,019
Commerce Group, Inc................................... 54,700 1,873,475
Comsat Corp. Series 1................................. 96,600 3,441,375
Consolidated Papers, Inc.............................. 101,000 2,581,812
Cooper Tire & Rubber Co............................... 95,100 1,860,394
Coors (Adolph) Co. Class B............................ 80,500 4,007,391
*Corporate Express, Inc............................... 33,200 192,975
Countrywide Credit Industries, Inc.................... 258,600 12,800,700
Crown Cork & Seal Co., Inc............................ 393,100 13,267,125
Cummins Engine Co., Inc............................... 108,800 4,039,200
*Cypress Semiconductor Corp........................... 184,700 1,881,631
Cyprus Amax Minerals Co., Inc......................... 238,900 2,717,487
*Daimlerchrysler...................................... 881,271 80,801,535
Dana Corp............................................. 27,414 1,069,146
Darden Restaurants, Inc............................... 356,000 5,629,250
*Delphi Financial Group, Inc. Class A................. 816 38,097
#Devon Energy Corp.................................... 26,100 859,669
Dillards, Inc. Class A................................ 321,700 11,058,437
*EEX Corp............................................. 434,154 1,546,674
ENSCO International, Inc.............................. 236,600 2,262,487
#Enhance Financial Services Group, Inc................ 26,400 775,500
Enron Corp............................................ 7,800 409,987
Enron Oil & Gas Corp.................................. 217,800 3,267,000
*Everest Reinsurance Holdings, Inc.................... 22,800 856,425
*Extended Stay America, Inc........................... 140,300 1,403,000
*Federated Department Stores, Inc..................... 606,300 25,275,131
Financial Security Assurance Holdings, Ltd............ 41,800 2,293,775
First Citizens Bancshares, Inc. NC.................... 10,100 872,072
Florida East Coast Industries, Inc.................... 54,600 1,870,050
Ford Motor Co......................................... 2,655,700 146,727,425
*Fruit of The Loom, Inc. Class A...................... 120,600 1,778,850
GATX Corp............................................. 84,400 3,191,375
General Motors Corp................................... 1,528,500 106,995,000
General Motors Corp. Class H.......................... 217,546 8,266,748
Georgia-Pacific Corp.................................. 191,500 10,867,625
Georgia-Pacific Corp. Timber Group.................... 50,200 1,154,600
*Golden State Bancorp, Inc............................ 144,900 2,789,325
Golden West Financial Corp............................ 90,800 8,597,625
Goodrich (B.F.) Co.................................... 95,400 3,619,237
Great Atlantic & Pacific Tea Co., Inc................. 126,700 3,460,494
Great Lakes Chemical Corp............................. 23,900 954,506
Greenpoint Financial Corp............................. 127,600 4,856,775
Harris Corp........................................... 13,300 504,569
Helmerich & Payne, Inc................................ 104,300 1,799,175
Hilton Hotels Corp.................................... 545,500 11,864,625
Hollinger International, Inc. Class A................. 147,100 1,903,106
IBP, Inc.............................................. 288,400 7,318,150
IMC Global, Inc....................................... 257,400 5,888,025
*IVAX Corp............................................ 361,000 3,429,500
Ikon Office Solutions, Inc............................ 247,900 2,417,025
Inland Steel Industries, Inc.......................... 64,592 1,182,841
Integrated Health Services, Inc....................... 87,100 974,431
International Paper Co................................ 687,800 29,876,312
*International Speciality Products, Inc............... 252,000 3,307,500
*K Mart Corp.......................................... 1,417,400 21,615,350
Kerr-McGee Corp....................................... 58,300 2,302,850
*LSI Logic Corp....................................... 458,000 7,099,000
LTV Corp.............................................. 225,900 1,242,450
Lafarge Corp.......................................... 136,700 5,066,444
*Lam Research Corp.................................... 113,900 2,032,403
Lehman Brothers Holdings, Inc......................... 297,600 14,861,400
Lennar Corp........................................... 1,900 42,275
Liberty Corp.......................................... 35,900 1,741,150
</TABLE>
24
<PAGE>
THE U.S. LARGE CAP VALUE SERIES
CONTINUED
<TABLE>
<CAPTION>
SHARES VALUE+
------------ ------------
<S> <C> <C>
Liberty Financial Companies, Inc...................... 121,500 $ 3,531,094
Lincoln National Corp................................. 223,050 18,666,497
Loews Corp............................................ 235,300 23,530,000
Longs Drug Stores Corp................................ 53,000 1,888,125
Louisiana-Pacific Corp................................ 298,100 5,067,700
*Lubrizol Corp........................................ 182,000 4,936,750
#*MGM Grand, Inc...................................... 52,928 1,359,588
Mallinckrodt, Inc..................................... 205,200 6,630,525
Mark IV Industries, Inc............................... 45,300 764,437
Mead Corp............................................. 281,000 8,517,812
Media General, Inc. Class A........................... 16,900 801,694
Metris Companies, Inc................................. 33,999 1,138,966
*Micron Technology, Inc............................... 499,900 20,652,119
*Millennium Chemicals, Inc............................ 10,500 250,687
Mitchell Energy & Development Corp. Class A........... 68,500 890,500
Mitchell Energy & Development Corp. Class B........... 41,600 551,200
Morgan (J.P.) & Co., Inc.............................. 292,700 31,282,312
Morton International, Inc............................. 11,000 323,812
Murphy Oil Corp....................................... 31,700 1,264,037
NAC RE Corp........................................... 26,000 1,241,500
Nabisco Holdings Corp................................. 71,900 2,867,012
*National Semiconductor Corp.......................... 458,600 6,592,375
*Navistar International Corp.......................... 216,700 5,607,112
*Nextel Communications Corp. Class A.................. 162,515 3,499,151
Noble Affiliates, Inc................................. 108,000 2,733,750
Norfolk Southern Corp................................. 749,500 22,766,062
*Novell, Inc.......................................... 883,000 14,597,094
Occidental Petroleum Corp............................. 650,800 13,178,700
*Officemax, Inc....................................... 367,200 3,901,500
Ogden Corp............................................ 151,696 4,029,425
#Ohio Casualty Corp................................... 106,900 4,342,812
Old Republic International Corp....................... 373,275 7,955,423
Olsten Corp........................................... 13,300 99,750
Orion Capital Corp.................................... 10,000 361,250
Overseas Shipholding Group, Inc....................... 37,500 592,969
Pacific Century Financial Corp........................ 124,500 2,661,187
*Pacificare Health Systems, Inc. Class A.............. 12,040 837,532
*Pacificare Health Systems, Inc. Class B.............. 39,256 2,962,601
Pennzoil Co........................................... 55,600 2,064,150
Pep Boys - Manny, Moe & Jack.......................... 151,100 2,134,288
Phelps Dodge Corp..................................... 122,900 6,966,894
Pioneer Natural Resources Co.......................... 333,000 4,412,250
Potlatch Corp......................................... 94,600 3,577,063
Provident Companies, Inc.............................. 550,808 21,171,683
Pulte Corp............................................ 71,400 1,816,238
*Quantum Corp......................................... 311,100 6,892,809
Questar Corp.......................................... 36,500 700,344
RJR Nabisco Holdings Corp............................. 640,380 18,450,949
Rayonier, Inc......................................... 83,000 3,527,500
Reynolds Metals Co.................................... 140,300 7,698,963
*Rowan Companies, Inc................................. 64,500 632,906
Russell Corp.......................................... 137,400 3,271,838
Ryder System, Inc..................................... 195,800 5,592,538
Safeco Corp........................................... 334,200 14,360,156
Saint Paul Companies, Inc............................. 583,026 20,551,667
*Seagate Technology, Inc.............................. 603,100 17,791,450
*Silicon Graphics, Inc................................ 456,700 5,594,575
*Smurfit-Stone Container Corp......................... 235,026 3,327,087
Springs Industries, Inc. Class A...................... 5,000 194,688
#*Sprint Corp. (PCS Group)............................ 5,850 93,600
St. Joe Corp.......................................... 78,400 1,847,300
TIG Holdings, Inc..................................... 185,700 2,611,406
<CAPTION>
SHARES VALUE+
------------ ------------
<S> <C> <C>
Tecumseh Products Co. Class A......................... 58,300 $ 2,893,138
Tecumseh Products Co. Class B......................... 5,700 288,563
*Tektronix, Inc....................................... 26,800 718,575
*Tele-Communications Liberty Media Group Class A...... 19,952 804,939
Telephone & Data Systems, Inc......................... 152,900 6,536,475
Temple-Inland, Inc.................................... 138,200 7,419,613
Tenneco, Inc.......................................... 324,700 11,567,438
Terra Industries, Inc................................. 61,400 333,863
*Thermo-Electron Corp................................. 28,300 477,563
Tidewater, Inc........................................ 63,700 1,469,081
Timken Co............................................. 167,800 3,230,150
*Toys R Us, Inc....................................... 613,800 12,122,550
Transamerica Corp..................................... 231,400 24,586,250
Travelers Property Casualty Corp...................... 171,000 5,888,813
Tyson Foods, Inc. Class A............................. 13,000 268,938
UMB Financial Corp.................................... 34,000 1,530,000
USX-Marathon Group, Inc............................... 448,450 12,724,769
USX-US Steel Group.................................... 314,400 7,683,150
Ultramar Diamond Shamrock Corp........................ 62,100 1,599,075
Union Camp Corp....................................... 152,600 9,871,313
Union Pacific Corp.................................... 585,300 28,460,213
Union Pacific Resources Group, Inc.................... 394,600 4,414,588
Unionbancal Corp...................................... 48,600 4,850,888
*United States Cellular Corp.......................... 141,300 5,325,244
Unitrin, Inc.......................................... 111,900 7,930,913
Valero Energy Corp.................................... 133,300 2,799,300
Valhi, Inc............................................ 85,600 941,600
*Venator Group, Inc................................... 494,500 3,894,188
*Viacom, Inc. Class A................................. 122,400 8,040,150
*Viacom, Inc. Class B................................. 805,200 53,596,125
*Vishay Intertechnology, Inc.......................... 127,564 1,809,814
Wallace Computer Services, Inc........................ 31,000 695,563
Weis Markets, Inc..................................... 20,800 793,000
Wesco Financial Corp.................................. 8,500 2,992,000
#*Western Digital Corp................................ 28,100 367,056
Westvaco Corp......................................... 211,250 5,941,406
Weyerhaeuser Co....................................... 442,100 22,160,263
Whirlpool Corp........................................ 69,000 3,864,000
Willamette Industries, Inc............................ 298,600 10,432,338
Worthington Industries, Inc........................... 126,900 1,558,491
Xtra Corp............................................. 6,200 294,888
*Zale Corp............................................ 27,100 775,738
------------
TOTAL COMMON STOCKS
(Cost $1,399,206,000)................................ 1,730,831,533
------------
</TABLE>
<TABLE>
<CAPTION>
FACE
AMOUNT VALUE+
------------ ------------
(000)
<S> <C> <C>
TEMPORARY CASH INVESTMENTS -- (1.0%)
Repurchase Agreement, PNC Capital Markets Inc. 4.95%,
12/01/98 (Collateralized by U.S. Treasury Notes
6.25%, 08/31/02, valued at $18,136,825) to be
repurchased at $17,866,456.
(Cost $17,864,000)................................... $ 17,864 17,864,000
------------
TOTAL INVESTMENTS -- (100.0%) (Cost
$1,417,070,000)++.................................... $1,748,695,533
------------
------------
- --------------------
+ 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.
25
<PAGE>
THE DFA INTERNATIONAL VALUE SERIES
SCHEDULE OF INVESTMENTS
NOVEMBER 30, 1998
<TABLE>
<CAPTION>
SHARES VALUE+
------------ ------------
<S> <C> <C>
JAPAN -- (22.8%)
COMMON STOCKS -- (22.8%)
Aichi Bank, Ltd...................................... 10,500 $ 707,289
Aisin Seiki Co., Ltd................................. 137,000 1,471,200
Amada Co., Ltd....................................... 376,000 1,881,223
Amano Corp........................................... 115,000 982,346
#Aomori Bank, Ltd.................................... 170,000 652,782
Aoyama Trading Co., Ltd.............................. 41,100 1,130,149
Asahi Glass Co., Ltd................................. 420,000 2,446,469
#Ashikaga Bank, Ltd.................................. 808,000 1,354,116
Autobacs Seven Co., Ltd.............................. 700 20,501
Awa Bank, Ltd........................................ 189,600 883,833
Bank of Ikeda, Ltd................................... 13,000 537,260
Bank of Iwate, Ltd................................... 18,590 855,999
Bank of Kinki, Ltd................................... 225,000 527,172
Bank of Kyoto, Ltd................................... 347,400 1,783,350
Bank of Nagoya, Ltd.................................. 185,000 967,743
#Bank of Saga, Ltd................................... 215,000 769,606
Bank of Yokohama, Ltd................................ 978,000 2,068,662
#Best Denki Co., Ltd................................. 153,000 1,009,461
Canon Sales Co., Inc................................. 124,900 1,792,414
Casio Computer Co., Ltd.............................. 60,000 464,692
Chiba Bank, Ltd...................................... 941,000 3,552,098
#Chiyoda Fire and Marine Insurance Co., Ltd.......... 444,150 1,445,330
Chudenko Corp........................................ 82,000 1,734,461
Chugai Pharmaceutical Co., Ltd....................... 114,000 974,731
Chugoku Bank, Ltd.................................... 199,000 2,642,108
Chukyo Coca-Cola Bottling Co., Ltd................... 22,000 186,137
Chukyo Sogo Bank, Ltd................................ 67,000 225,659
Citizen Watch Co., Ltd............................... 317,000 2,024,446
#Cosmo Oil Co., Ltd.................................. 764,000 1,149,853
Dai Tokyo Fire & Marine Insurance Co., Ltd........... 529,000 1,747,266
Daicel Chemical Industries, Ltd...................... 485,000 1,203,425
Daikin Industries, Ltd............................... 218,000 1,915,392
Dainippon Pharmaceutical Co., Ltd.................... 203,000 850,512
#Daisan Bank, Ltd.................................... 131,000 477,449
#Daishi Bank, Ltd.................................... 350,000 1,181,663
Daito Trust Construction Co., Ltd.................... 180,784 1,467,803
#Daiwa Bank, Ltd..................................... 726,000 1,228,506
Daiwa House Industry Co., Ltd........................ 655,000 6,953,911
Daiwa Kosho Lease Co., Ltd........................... 193,000 745,810
#Daiwa Securities Co., Ltd........................... 1,673,000 5,974,999
Denki Kagaku Kogyo KK................................ 469,000 744,020
Dowa Fire & Marine Insurance Co., Ltd................ 383,000 1,327,351
Ehime Bank, Ltd...................................... 143,000 542,125
#Eighteenth Bank, Ltd................................ 226,000 919,297
Ezaki Glico Co., Ltd................................. 174,600 894,874
Fuji Fire & Marine Insurance Co., Ltd................ 173,000 320,892
Fuji Photo Film Co., Ltd............................. 355,000 13,285,060
Fujisawa Pharmaceutical Co., Ltd..................... 170,000 2,039,944
#Fukui Bank, Ltd..................................... 343,000 756,207
#Fukuoka City Bank, Ltd.............................. 264,532 1,071,729
#Fukuyama Transporting Co., Ltd...................... 266,000 1,203,189
Futaba Corp.......................................... 16,000 576,635
<CAPTION>
SHARES VALUE+
------------ ------------
<S> <C> <C>
Futaba Industrial Co., Ltd........................... 85,000 $ 1,127,156
Hanshin Electric Railway Co., Ltd.................... 141,000 429,011
Higo Bank, Ltd....................................... 308,000 1,280,410
#Hino Motors, Ltd.................................... 398,000 1,110,592
Hiroshima Bank, Ltd.................................. 575,000 1,997,437
Hiroshima-Sogo Bank, Ltd............................. 136,000 652,782
#Hitachi Construction Machinery Co., Ltd............. 64,000 205,662
#Hitachi Maxell, Ltd................................. 96,000 1,620,566
Hitachi Metals, Ltd.................................. 360,000 1,060,201
#Hitachi Transport System, Ltd....................... 138,000 926,212
Hitachi, Ltd......................................... 3,691,000 22,250,491
#Hokuetsu Bank....................................... 275,330 768,290
#Hokuetsu Paper Mills, Ltd........................... 162,000 767,035
#Hokuriku Bank, Ltd.................................. 891,000 1,587,447
House Foods Corp..................................... 115,000 1,758,867
#Hyakugo Bank, Ltd. (105th Bank)..................... 258,000 1,131,321
Hyakujishi Bank, Ltd................................. 314,000 1,726,846
Inax Corp............................................ 309,000 1,699,349
Itochu Corp.......................................... 1,198,000 2,290,351
Itoham Foods, Inc.................................... 284,000 1,356,231
#Japan Pulp and Paper Co., Ltd....................... 93,000 310,202
Joyo Bank, Ltd....................................... 19,000 69,557
Jsr Corp., Tokyo..................................... 150,000 694,354
Juroku Bank, Ltd..................................... 349,000 1,476,407
Kagawa Bank, Ltd..................................... 40,650 202,390
Kagoshima Bank, Ltd.................................. 262,000 1,012,447
#Kajima Corp......................................... 826,000 2,204,100
Kamigumi Co., Ltd.................................... 357,000 1,617,710
Kandenko Co., Ltd.................................... 266,000 1,774,487
Kaneka Corp.......................................... 344,000 2,468,336
Kansai Paint Co., Ltd., Osaka........................ 108,000 272,372
Katokichi Co., Ltd................................... 72,000 1,037,943
Kawasaki Steel Corp.................................. 500,000 752,522
Kikkoman Corp........................................ 256,000 1,647,380
Kinden Corp.......................................... 67,000 899,365
Kirin Brewery Co., Ltd............................... 150,000 1,559,551
Kissei Pharmaceutical Co., Ltd....................... 40,000 592,906
Koa Fire & Marine Insurance Co., Ltd................. 45,000 146,071
#Kobe Steel, Ltd..................................... 2,632,000 1,969,931
Koito Manufacturing Co., Ltd......................... 146,000 610,511
#Kokusai Denshin Denwa Co., Ltd...................... 48,400 1,744,321
#Kokusai Securities Co., Ltd......................... 330,000 2,789,374
Komatsu, Ltd......................................... 1,279,000 6,565,643
#Komori Corp......................................... 74,000 1,538,154
Konica Corp.......................................... 66,000 291,018
Koyo Seiko Co........................................ 198,000 1,158,168
Kureha Chemical Industry Co., Ltd.................... 263,000 691,092
Lion Corp............................................ 311,000 1,214,448
Long Term Credit Bank of Japan, Ltd.................. 994,000 16,173
Makita Corp.......................................... 209,000 2,312,398
Marubeni Corp........................................ 1,942,000 3,538,951
Maruichi Steel Tube, Ltd............................. 117,000 1,398,251
Matsushita Electric Industrial Co., Ltd.............. 1,933,000 31,136,829
#Matsushita Electric Works, Ltd...................... 286,000 2,745,525
</TABLE>
26
<PAGE>
THE DFA INTERNATIONAL VALUE SERIES
CONTINUED
<TABLE>
<CAPTION>
SHARES VALUE+
------------ ------------
<S> <C> <C>
Matsushita Refrigeration Co.......................... 222,000 $ 812,723
Matsushita Seiko Co., Ltd............................ 72,000 246,014
#Matsuzakaya Co., Ltd................................ 30,000 151,318
*Mazda Motor Corp.................................... 400,000 1,545,720
Meija Seika Kaisha, Ltd. Tokyo....................... 366,000 1,384,559
Michinoku Bank, Ltd.................................. 187,000 947,779
#Mitsubishi Chemical Corp............................ 2,129,000 3,983,647
Mitsubishi Electric Corp............................. 1,683,000 4,271,851
Mitsubishi Gas Chemical Co., Inc..................... 548,000 1,462,284
Mitsubishi Materials Corp............................ 975,000 1,745,037
#Mitsubishi Motors Corp.............................. 866,000 2,479,921
Mitsui Chemicals, Inc................................ 1,030,800 3,522,095
*#Mitsui Engineering and Shipbuilding Co., Ltd....... 781,000 787,862
#Mitsui Trust & Banking Co., Ltd..................... 1,030,000 1,382,606
Mori Seiki Co., Ltd.................................. 121,000 1,294,459
Musashino Bank, Ltd.................................. 26,000 1,053,368
NGK Spark Plug Co., Ltd.............................. 201,000 1,860,868
NHK Spring Co., Ltd.................................. 315,000 948,177
NKK Corp............................................. 2,612,000 1,869,964
NSK, Ltd............................................. 467,000 1,842,621
NTN Corp............................................. 398,000 1,233,631
*#Namihaya Bank Ltd.................................. 27 51,180
Nanto Bank, Ltd...................................... 288,000 1,370,647
National House Industrial Co., Ltd................... 95,000 741,946
Nichicon Corp........................................ 100,000 1,231,695
Nichirei Corp........................................ 366,000 866,466
Nifco, Inc........................................... 45,000 360,600
Nihon Unisys, Ltd.................................... 41,000 430,280
#Nikko Securities Co., Ltd........................... 1,910,000 6,464,040
*Nippon Credit Bank, Ltd............................. 1,683,000 2,382,378
Nippon Flour Mills Co., Ltd.......................... 21,000 55,524
Nippon Meat Packers, Inc., Osaka..................... 140,000 1,949,886
#Nippon Oil Co., Ltd................................. 1,598,000 5,265,130
Nippon Sanso Corp.................................... 367,000 1,098,731
Nippon Sheet Glass Co., Ltd.......................... 567,000 1,259,282
Nippon Shokubai Co., Ltd............................. 163,000 958,745
Nishimatsu Construction Co., Ltd..................... 359,000 1,971,404
#Nishi-Nippon Bank, Ltd.............................. 23,540 92,881
Nissei Sangyo Co., Ltd............................... 110,050 914,099
Nisshin Flour Milling Co., Ltd....................... 89,000 724,772
Nisshin Steel Co., Ltd............................... 1,318,000 1,458,249
Nisshinbo Industries, Inc............................ 305,000 1,106,654
#Nissho Iwai Corp.................................... 544,000 482,395
#Obayashi Corp....................................... 499,000 2,257,110
Ogaki Kyoritsu Bank, Ltd............................. 50,000 218,435
Oita Bank, Ltd....................................... 145,000 743,166
Oji Paper Co., Ltd................................... 275,000 1,237,186
#Oki Electric Industry Co., Ltd...................... 740,000 2,028,799
Okumura Corp......................................... 322,000 1,388,382
#Penta-Ocean Construction Co., Ltd................... 438,000 951,399
Pioneer Electronic................................... 182,000 2,998,291
#Q.P. Corp........................................... 168,000 1,182,232
Royal Co., Ltd....................................... 41,000 512,000
Ryosan Co., Ltd...................................... 53,000 881,752
Ryoyo Electro Corp................................... 26,000 243,248
#Sakura Bank, Ltd.................................... 758,000 1,936,316
San In Godo Bank, Ltd................................ 222,000 1,399,690
Sanyo Electric....................................... 2,536,000 7,179,692
Sapporo Breweries, Ltd............................... 33,000 146,315
<CAPTION>
SHARES VALUE+
------------ ------------
<S> <C> <C>
#Seino Transportation Co., Ltd....................... 197,000 $ 1,097,828
Sekisui Chemical Co., Ltd............................ 557,000 3,398,551
#Seksui House........................................ 928,000 9,044,449
Sharp Corp. Osaka.................................... 460,000 4,064,106
#Shiga Bank, Ltd..................................... 268,000 1,118,483
Shimachu Co., Ltd.................................... 20,200 377,969
Shimadzu Corp........................................ 181,000 633,176
Shimizu Bank, Ltd.................................... 6,300 316,230
#Shimizu Corp........................................ 997,000 3,284,941
#Shinwa Bank, Ltd.................................... 157,000 480,247
Shionogi & Co., Ltd.................................. 455,000 3,198,177
Showa Electric Wire & Cable Co., Ltd., Kawasaki...... 64,000 104,133
Showa Shell Sekiyu KK................................ 75,000 437,480
Snow Brand Milk Products Co., Ltd.................... 419,000 1,619,142
#Stanley Electric Co., Ltd........................... 246,000 842,548
Sumitomo Corp........................................ 918,000 5,026,146
#Sumitomo For........................................ 136,000 940,449
#Sumitomo Metal Industries, Ltd. Osaka............... 1,481,000 1,771,127
Sumitomo Metal Mining Co., Ltd....................... 313,000 1,130,589
Sumitomo Realty & Development Co., Ltd............... 488,000 1,778,587
#Sumitomo Warehouse Co., Ltd......................... 67,000 273,080
#Suruga Bank, Ltd.................................... 256,000 1,260,006
TEC Corp............................................. 345,000 990,766
TOC Co., Ltd......................................... 66,950 570,262
#Taiheiyo Cement Corp................................ 746,000 1,753,937
#Taisei Corp......................................... 1,325,000 2,533,151
Takara Standard Co., Ltd............................. 175,000 1,267,084
Takashimaya Co., Ltd................................. 206,000 1,719,459
Tanabe Seiyaku Co., Ltd.............................. 164,000 893,915
*Teijin, Ltd......................................... 917,000 3,289,919
Teikoku Oil Co., Ltd................................. 346,000 1,027,416
Toagosei Co., Ltd.................................... 353,000 649,024
#Toda Corp........................................... 418,000 1,938,333
Toho Bank, Ltd....................................... 236,000 833,257
Tokuyama Corp........................................ 248,000 728,343
*Tokyo Sowa Bank..................................... 199,000 467,873
Tokyo Steel Manufacturing Co., Ltd................... 202,800 940,416
Tokyo Style Co., Ltd................................. 133,000 1,428,246
#Tokyo Tomin Bank, Ltd............................... 30,900 904,979
Tostem Corp.......................................... 188,000 3,135,372
#Toto, Ltd........................................... 247,000 1,848,682
Towa Bank, Ltd....................................... 73,000 243,492
#Toyo Seikan Kaisha, Ltd............................. 287,600 4,796,452
Toyo Suisan Kaisha, Ltd.............................. 116,000 755,906
#Toyo Trust & Banking Co., Ltd....................... 715,000 2,222,014
Toyobo Co., Ltd...................................... 468,000 574,910
Toyota Auto Body Co., Ltd............................ 86,000 545,721
Toyota Tsusho Corp................................... 314,000 896,632
#Victor Co. of Japan, Ltd............................ 246,000 1,771,152
Wacoal Corp.......................................... 149,000 1,686,129
#Yakult Honsha Co., Ltd.............................. 228,000 1,341,067
Yamagata Bank, Ltd................................... 153,700 670,218
Yamaguchi Bank....................................... 133,000 1,255,125
Yamatake-Honeywell Co., Ltd.......................... 87,000 879,767
*#Yasuda Trust & Banking Co., Ltd.................... 1,434,000 1,364,936
Yodogawa Steel Works, Ltd............................ 296,000 1,119,752
Yokogawa Electric Corp............................... 337,000 1,677,871
</TABLE>
27
<PAGE>
THE DFA INTERNATIONAL VALUE SERIES
CONTINUED
<TABLE>
<CAPTION>
SHARES VALUE+
------------ ------------
<S> <C> <C>
Yokohama Rubber Co., Ltd............................. 404,000 $ 963,000
------------
TOTAL COMMON STOCKS
(Cost $564,071,652).................................. 391,123,816
------------
INVESTMENT IN
CURRENCY -- (0.0%)
*Japanese Yen (Cost $12,312)......................... 12,330
------------
TOTAL -- JAPAN
(Cost $564,083,964).................................. 391,136,146
------------
UNITED KINGDOM -- (19.9%)
COMMON STOCKS -- (19.9%)
ASDA Group P.L.C..................................... 1,719,300 4,469,656
Abbey National P.L.C................................. 240,000 4,852,764
Aggreko P.L.C........................................ 32,000 101,149
Allied Domecq P.L.C.................................. 142,317 1,212,128
*Anglian Water P.L.C................................. 151,281 2,154,949
Antofagasta Holdings P.L.C........................... 38,000 110,706
Arcadia Group P.L.C.................................. 110,588 537,570
Arjo Wiggins Appleton P.L.C.......................... 659,100 1,240,218
Associated British Foods P.L.C....................... 733,200 7,418,648
Associated British Ports Holdings P.L.C.............. 369,200 1,916,568
BAA P.L.C............................................ 1,028,463 11,373,793
BG P.L.C............................................. 2,574,617 17,657,349
BOC Group P.L.C...................................... 139,300 2,024,521
BPB P.L.C............................................ 217,300 746,045
BTR P.L.C............................................ 697,300 1,427,195
Barclays P.L.C....................................... 640,523 14,537,150
Bardon Group P.L.C................................... 1,033,471 1,249,533
Barratt Developments P.L.C........................... 222,000 831,803
Bass P.L.C........................................... 600,000 8,279,410
Beazer Group P.L.C................................... 167,257 472,087
Berkeley Group P.L.C................................. 78,622 634,592
Blue Circle Industries P.L.C......................... 326,000 1,646,573
British Airways P.L.C................................ 347,331 2,350,549
British Land Co. P.L.C............................... 462,081 3,981,351
British Steel P.L.C.................................. 1,575,000 2,547,701
British Telecommunications P.L.C..................... 1,200,000 16,449,880
British Vita P.L.C................................... 212,300 791,955
Brixton Estate P.L.C................................. 235,685 686,623
Burford Holdings P.L.C............................... 337,000 478,377
Capital Shopping Centres P.L.C....................... 381,375 2,234,716
Caradon P.L.C........................................ 214,000 363,825
*Centrica P.L.C...................................... 2,662,900 5,527,194
Chelsfield P.L.C..................................... 230,258 999,568
Commercial Union P.L.C............................... 1,181,319 18,738,396
Cookson Group P.L.C.................................. 258,000 570,645
Debenhams P.L.C...................................... 115,175 727,163
Diageo P.L.C......................................... 73,440 823,084
Elementis P.L.C...................................... 604,112 747,860
English China Clays P.L.C............................ 249,062 709,150
Glynwed International P.L.C.......................... 140,000 388,221
Grantchester Holdings P.L.C.......................... 12,930 30,626
Great Portland Estates P.L.C......................... 197,275 631,707
Great Universal Stores P.L.C......................... 814,600 8,477,569
Greenalls Group P.L.C................................ 283,846 1,681,973
Guardian Royal Exchange P.L.C........................ 853,882 4,651,078
Hambro Countrywide P.L.C............................. 102,322 192,538
Hanson P.L.C......................................... 624,950 4,641,941
Hyder P.L.C.......................................... 84,763 1,136,767
<CAPTION>
SHARES VALUE+
------------ ------------
<S> <C> <C>
Imperial Chemical Industries P.L.C................... 477,000 $ 4,409,083
Inchcape P.L.C....................................... 508,000 1,048,131
Johnson Matthey P.L.C................................ 93,000 633,211
Ladbroke Group P.L.C................................. 966,745 3,741,938
Lasmo P.L.C.......................................... 613,035 1,414,096
Lex Service P.L.C.................................... 109,433 730,649
Lonrho P.L.C......................................... 197,094 984,916
Mersey Docks & Harbour Co. P.L.C..................... 53,050 445,702
Meyer International P.L.C............................ 102,281 568,096
Millennium and Copthorne Hotels P.L.C................ 85,000 575,936
Mirror Group P.L.C................................... 403,000 971,180
National Westminster Bank P.L.C...................... 1,159,229 21,162,463
Norwich Union P.L.C.................................. 170,000 1,192,558
Peel Holdings P.L.C.................................. 45,400 397,167
Pilkington P.L.C..................................... 995,666 1,076,457
Pillar Property Investments P.L.C.................... 25,000 104,607
Powergen P.L.C....................................... 443,177 6,126,379
RMC Group P.L.C...................................... 223,000 2,907,862
Racal Electronics P.L.C.............................. 274,000 1,438,201
Rank Group P.L.C..................................... 793,530 2,816,071
*Rexam P.L.C......................................... 165,665 534,588
Rio Tinto P.L.C...................................... 336,900 3,948,219
Rolls-Royce P.L.C.................................... 322,674 1,304,884
Royal & Sun Alliance Insurance Group, Inc. P.L.C..... 1,518,386 12,681,615
Rugby Group P.L.C.................................... 417,000 560,965
Safeway P.L.C........................................ 744,840 3,676,004
Sainsbury (J.) P.L.C................................. 968,542 8,113,278
Scottish & Newcastle P.L.C........................... 168,500 2,149,915
Scottish Hydro-Electric P.L.C........................ 374,000 4,339,791
Severn Trent P.L.C................................... 210,597 3,597,778
Shell Transport & Trading Co., P.L.C................. 2,222,545 13,408,487
*Signet Group P.L.C.................................. 552,000 289,284
Slough Estates P.L.C................................. 376,100 1,688,551
Smith (David S.) Holdings P.L.C...................... 298,000 573,039
Somerfield P.L.C..................................... 165,142 1,241,617
South West Water P.L.C............................... 42,833 789,014
Stakis P.L.C......................................... 733,194 1,282,823
Standard Chartered P.L.C............................. 69,000 733,461
Storehouse P.L.C..................................... 420,380 974,900
Tarmac P.L.C......................................... 948,643 1,769,388
Tate & Lyle P.L.C.................................... 241,900 1,525,250
Taylor Woodrow P.L.C................................. 388,747 1,033,082
*Telewest Communications P.L.C....................... 845,915 1,829,110
Tesco P.L.C.......................................... 4,364,755 12,895,992
*Thames Water PLC.................................... 157,951 3,021,674
*Thistle Hotels P.L.C................................ 268,421 598,125
Trinity P.L.C........................................ 58,430 420,498
Unigate P.L.C........................................ 229,400 1,800,469
Unilever P.L.C....................................... 1,600,000 16,651,253
United Assurance Group P.L.C......................... 331,000 3,045,893
United Biscuits Holdings P.L.C....................... 452,411 1,799,667
United Utilities P.L.C............................... 265,595 3,870,993
Vickers P.L.C........................................ 194,300 575,677
Whitbread P.L.C...................................... 478,879 6,481,589
Wilson Bowden P.L.C.................................. 96,900 878,088
Wimpey (George) P.L.C................................ 236,750 451,350
Wolseley P.L.C....................................... 100,000 632,180
</TABLE>
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<TABLE>
<CAPTION>
SHARES VALUE+
------------ ------------
<S> <C> <C>
Yorkshire Water P.L.C................................ 161,510 $ 1,456,906
------------
TOTAL COMMON STOCKS
(Cost $242,283,166).................................. 340,824,964
------------
INVESTMENT IN
CURRENCY -- (0.0%)
*British Pound Sterling (Cost $227,337).............. 227,345
------------
TOTAL -- UNITED KINGDOM
(Cost $242,510,503).................................. 341,052,309
------------
GERMANY -- (10.8%)
COMMON STOCKS -- (10.8%)
AGIV AG fuer Industrie & Verkehrswesen............... 57,800 1,329,812
*Ava Allgemeine Handelsgesellschaft der Verbraucher
AG, Bielefeld...................................... 3,700 1,461,810
BASF AG.............................................. 640,050 24,700,589
BHF Bank AG.......................................... 116,900 4,632,359
BHW Holding AG, Berlin............................... 167,300 2,770,556
Bankgesellschaft Berlin AG........................... 233,550 4,005,814
Bayer AG............................................. 146,900 6,290,328
Bayerische Vereinsbank AG............................ 311,250 28,073,212
Berliner Kraft & Licht Bewag AG...................... 88,800 4,884,373
Bilfinger & Berger Bau AG, Mannheim.................. 46,500 1,072,582
Commerzbank AG....................................... 408,050 13,635,615
DBV-Winterthur Holding AG, Wiesbaden................. 4,400 1,509,363
Deutsche Bank AG..................................... 298,400 19,360,579
Deutsche Hypoteken Bank AG, Frankfurt/Hamburg........ 5,000 161,168
Deutsche Lufthansa AG................................ 305,250 6,788,228
Deutsche Pfandbrief und Hypothekenbank AG, Depfa..... 46,400 3,842,014
Deutsche Telekom AG.................................. 313,200 9,261,997
Dresdner Bank AG, Frankfurt.......................... 315,000 14,587,646
Dyckerhoff AG........................................ 2,275 719,187
FPB Holding AG....................................... 5,789 1,078,517
Fresenius Medical Care AG............................ 4,000 242,492
Heidelberger Zement AG, Heidelberg................... 23,800 1,844,001
Hochtief AG.......................................... 90,300 3,484,826
*#Holzmann (Philipp) AG.............................. 1,860 214,516
IVG Holding AG....................................... 5,500 265,114
Karstadt AG.......................................... 8,350 4,000,225
Lahmeyer AG, Frankfurt............................... 38,500 1,878,571
Linde AG............................................. 5,600 3,232,591
Man AG, Muechen...................................... 14,000 4,131,821
Merck KGAA........................................... 58,000 2,418,410
PWA Papierwerke Waldhof-Aschaffenburg AG............. 3,550 678,178
Siemens AG........................................... 87,800 6,236,636
Thuega AG............................................ 267 109,751
#Thyssen AG.......................................... 7,750 1,436,985
Thyssen Industrie AG Essen........................... 2,500 561,871
Vereins & Westbank AG................................ 67,960 2,049,918
Volkswagen AG........................................ 20,000 1,684,430
------------
TOTAL COMMON STOCKS
(Cost $130,895,316).................................. 184,636,085
------------
<CAPTION>
SHARES VALUE+
------------ ------------
<S> <C> <C>
INVESTMENT IN
CURRENCY -- (0.0%)
*German Marks (Cost $129,339)........................ $ 130,721
------------
RIGHTS/WARRANTS -- (0.0%)
*Holzmann (Philipp) AG Rights 12/07/98 (Cost $0)..... 1,860 440
------------
TOTAL -- GERMANY
(Cost $131,024,655).................................. 184,767,246
------------
FRANCE -- (8.8%)
COMMON STOCKS -- (8.8%)
AGF (Assurances Generales de France SA).............. 48,014 2,853,133
AXA-UAP.............................................. 5,000 648,010
Accor SA............................................. 1,500 330,617
Banque Nationale de Paris............................ 193,531 14,844,449
*Banque Paribas...................................... 90,572 8,097,038
Bongrain SA.......................................... 1,653 714,690
Bouygues............................................. 4,000 747,636
Christian Dior SA.................................... 31,100 3,394,496
*Club Mediterranee SA................................ 7,000 580,493
Colas SA............................................. 5,070 1,127,320
Credit Commercial de France.......................... 50,191 4,331,258
ECIA (Equipements et Composants pour l'Industrie
Automobile)........................................ 3,000 426,893
Elf Aquitaine........................................ 140,000 17,502,438
Eridania Beghin-Say SA............................... 18,900 3,512,584
Esso SA.............................................. 8,476 747,283
*#Euro Disney SCA.................................... 551,700 778,247
Filipacchi Medias SA................................. 300 63,214
Fonciere Lyonnaise SA................................ 868 141,575
Fromageries Bel la Vache qui Rit..................... 275 225,966
#GTM Entrepose....................................... 21,077 2,385,987
Generale des Establissements Michelin SA Series B.... 17,600 761,883
Groupe Danone........................................ 42,500 12,440,026
Imetal............................................... 11,000 1,027,999
LaFarge SA........................................... 74,595 7,050,157
Labinal SA........................................... 3,200 807,447
Lyonnais des Eaux SA................................. 57,442 11,374,533
Pechiney SA Series A................................. 55,475 1,852,685
Pernod-Ricard........................................ 38,900 2,538,592
Peugeot SA........................................... 36,550 5,800,350
#Rallye SA........................................... 17,220 1,138,342
*#Remy Cointreau SA.................................. 27,400 480,726
Rhone-Poulenc SA Series A............................ 176,126 8,804,421
Saint-Gobain......................................... 64,336 9,529,226
Silic (Societe Immobiliere de Location pour
l'Industrie et le Commerce)........................ 200 38,793
Societe Generale Paris............................... 70,432 11,127,620
Sommer-Allibert SA................................... 14,800 420,157
Sophia SA............................................ 7,700 323,005
*Thomson-CSF......................................... 87,203 3,290,557
Total SA............................................. 40,000 4,972,484
Union Assurances Federales SA........................ 5,900 783,378
Usinor............................................... 167,800 1,893,635
------------
TOTAL COMMON STOCKS
(Cost $102,282,755).................................. 149,909,343
------------
</TABLE>
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<TABLE>
<CAPTION>
SHARES VALUE+
------------ ------------
<S> <C> <C>
RIGHTS/WARRANTS -- (0.0%)
*AGF (Assurances Generales de France SA) Warrants
06/15/00........................................... 41,214 $ 340,833
*Fonciere Lyonnaise SA Warrants 07/30/02............. 868 1,102
------------
TOTAL RIGHTS/WARRANTS
(Cost $180,304)...................................... 341,935
------------
INVESTMENT IN
CURRENCY -- (0.0%)
*French Francs (Cost $17,509)........................ 17,230
------------
TOTAL -- FRANCE
(Cost $102,480,568).................................. 150,268,508
------------
SWITZERLAND -- (8.1%)
COMMON STOCKS -- (8.1%)
Ascom Holding AG, Bern............................... 1,410 2,512,990
Baloise-Holding, Basel............................... 26,676 24,922,062
Banca del Gotthard................................... 5,470 4,548,211
Banque Cantonale Vaudois............................. 5,795 2,082,300
Bobst SA, Prilly..................................... 2,553 3,485,975
Danzas Holding AG.................................... 7,700 2,346,262
Financiere Richemont AG Units -A-.................... 8,813 13,135,676
Fischer (Georg) AG, Schaffhausen (Namen)............. 12,987 4,442,585
*Forbo Holding AG, Eglisau........................... 6,381 2,820,225
Helvetia Patria Holding, St. Gallen.................. 4,830 4,512,429
Holderbank Financiere Glarus AG, Glarus.............. 900 1,045,211
Intershop Holding AG, Zuerich........................ 6,840 4,379,794
Jelmoli Holding AG, Zuerich.......................... 500 574,923
Oerlikon-Buehrle Holding AG, Zuerich................. 44,781 5,728,405
Pargesa Holding SA, Geneve........................... 1,935 3,267,900
Roche Holding AG, Basel.............................. 892 16,042,012
*Sairgroup, Zuerich.................................. 37,480 8,309,496
Schindler Holding AG, Hergiswil...................... 3,469 5,733,925
Schweizerische National Versicherungs Gesellschaft,
Basel.............................................. 1,606 3,860,660
Sig Schweizerische Industrie-Gesellschaft Holding AG,
Neuhausen AM Rheinfall............................. 8,066 5,216,998
Sika Finanz AG, Baar................................. 1,280 362,432
Sulzer AG, Winterthur................................ 8,280 4,694,910
*United Bank of Switzerland.......................... 43,001 12,979,195
Von Roll Holding AG, Gerlafingen..................... 15,045 419,511
------------
TOTAL COMMON STOCKS
(Cost $105,839,774).................................. 137,424,087
------------
INVESTMENT IN
CURRENCY -- (0.0%)
*Swiss Francs (Cost $386,306)........................ 393,304
------------
TOTAL -- SWITZERLAND
(Cost $106,226,080).................................. 137,817,391
------------
NETHERLANDS -- (6.5%)
COMMON STOCKS -- (6.5%)
ABN Amro Holding NV.................................. 1,286,318 26,582,115
Asr Verzekeringsgroep NV............................. 40,139 3,273,723
Bijenkorf Beheer KBB NV, Amsterdam................... 10,648 921,503
*Buhrmann NV......................................... 77,840 1,269,721
<CAPTION>
SHARES VALUE+
------------ ------------
<S> <C> <C>
DSM NV............................................... 39,466 $ 3,699,071
Fortis Amev NV....................................... 273,660 20,166,597
Ing Groep NV......................................... 730,272 41,941,478
KLM (Koninklijke Luchtvaart Mij NV).................. 79,274 2,174,590
Koninklijke Hoogovens NV............................. 33,566 1,052,800
Nationale Investeringsbank NV........................ 45,925 1,264,601
Pakhoed NV........................................... 37,037 913,016
Philips Electronics NV............................... 110,000 6,981,087
Stork NV............................................. 27,615 705,373
------------
TOTAL COMMON STOCKS
(Cost $59,345,479)................................... 110,945,675
------------
INVESTMENT IN
CURRENCY -- (0.0%)
*Netherlands Guilder (Cost $4)....................... 4
------------
TOTAL -- NETHERLANDS
(Cost $59,345,483)................................... 110,945,679
------------
ITALY -- (5.9%)
COMMON STOCKS -- (5.9%)
Banca Commerciale Italiana SpA....................... 3,565,000 24,467,251
*#Banca di Roma...................................... 7,168,500 12,438,844
Banca Toscana........................................ 607,000 2,867,945
*CIR SpA (Cie Industriale Riunite), Torino........... 885,000 973,730
Cartiere Burgo SpA................................... 235,000 1,473,882
Cia Assicuratrice Unipol SpA......................... 116,134 491,132
#Fiat SpA............................................ 3,967,399 12,204,464
*Finmeccanica SpA.................................... 4,331,475 4,010,265
Ifil Finanziaria Partecipazioni SpA, Torino.......... 1,020,375 4,181,090
*Ing C.Olivetti & C SpA, Ivrea....................... 2,400,000 6,307,678
#Italcementi Fabbriche Riunite Cemento SpA,
Bergamo............................................ 364,000 3,676,636
Italmobiliare SpA, Milano............................ 14,330 453,657
Magneti Marelli SpA.................................. 700,000 1,223,009
Montedison SpA....................................... 5,375,000 6,437,222
San Paolo-Imi SpA.................................... 1,003,500 16,513,708
Sirti SpA............................................ 25,000 144,252
#Toro Assicurazioni Cia Anonima d'Assicurazione di
Torino SpA......................................... 168,350 2,730,163
------------
TOTAL COMMON STOCKS
(Cost $53,907,829)................................... 100,594,928
------------
RIGHTS/WARRANTS -- (0.0%)
*Finmeccanica SpA Warrants 06/30/00 (Cost $0)........ 2,406,375 188,296
------------
INVESTMENT IN
CURRENCY -- (0.0%)
*Italian Lira (Cost $962)............................ 963
------------
TOTAL -- ITALY
(Cost $53,908,791)................................... 100,784,187
------------
SPAIN -- (3.7%)
COMMON STOCKS -- (3.7%)
Acerinox SA.......................................... 154,740 3,688,894
Autopistas Concesionaria Espanola SA................. 432,180 6,608,255
Autopistas del Mare Nostrum SA....................... 176,800 4,300,805
Azucarera Ebro Agricolas SA.......................... 111,600 2,644,953
Banco Pastor SA, La Coruna........................... 39,600 2,477,064
</TABLE>
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<TABLE>
<CAPTION>
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<S> <C> <C>
Cementos Portland SA................................. 26,000 $ 1,145,677
Compania Espanola de Petroleos SA, Madrid............ 149,794 5,413,738
Corporacion Mapfre Compania Internacional de
Reaseguros SA, Majadah Onda........................ 36,300 1,009,174
Cristaleria Espanola SA, Madrid...................... 40,544 2,817,911
DRACONSA (Dragados y Construcciones SA).............. 152,189 4,934,400
FESCA (Fuerzas Electricas de Cataluna SA) Series A... 180,000 2,082,985
Hidroelectrica del Cantabrico SA, Oviedo............. 99,900 4,846,412
Iberdrola SA......................................... 535,000 8,886,917
Metrovacesa SA....................................... 89,964 2,482,325
Portland Valderrivas SA.............................. 2,784 113,001
Sevillana de Electricidad SA......................... 210,000 2,955,587
Union Electrica Fenosa SA............................ 230,000 3,412,913
Uralita SA........................................... 24,500 271,598
Vallehermoso SA...................................... 240,000 2,835,696
------------
TOTAL COMMON STOCKS
(Cost $46,442,580)................................... 62,928,305
------------
INVESTMENT IN
CURRENCY -- (0.0%)
*Spanish Peseta (Cost $9,200)........................ 9,150
------------
TOTAL -- SPAIN
(Cost $46,451,780)................................... 62,937,455
------------
AUSTRALIA -- (2.6%)
COMMON STOCKS -- (2.6%)
Amcor, Ltd........................................... 505,844 2,207,439
#Boral, Ltd.......................................... 978,032 1,463,669
CSR, Ltd............................................. 842,897 2,029,953
Fosters Brewing Group, Ltd........................... 1,570,209 4,117,241
GIO Australia Holdings, Ltd.......................... 480,488 1,568,060
George Weston Foods, Ltd............................. 65,489 280,021
MIM Holdings......................................... 1,367,660 670,788
News Corp., Ltd...................................... 1,166,134 8,192,774
North, Ltd........................................... 411,303 770,710
Pacific Dunlop, Ltd.................................. 756,467 1,346,137
Pioneer International, Ltd........................... 658,231 1,398,968
Publishing and Broadcasting, Ltd..................... 176,912 770,353
Qantas Airways, Ltd.................................. 889,612 1,578,594
#Rio Tinto, Ltd...................................... 481,023 6,200,582
*Stockland Trust Group............................... 5,261 12,240
Stockland Trust Group................................ 151,831 379,021
#Suncorp Metway Limited.............................. 35,000 183,987
WMC, Ltd............................................. 844,189 2,664,217
Westpac Banking Corp................................. 1,327,595 8,865,493
------------
TOTAL COMMON STOCKS
(Cost $44,621,954)................................... 44,700,247
------------
RIGHTS/WARRANTS -- (0.0%)
*Suncorp Metway, Limited Rights 12/23/98 (Cost $0)... 17,500 36,973
------------
INVESTMENT IN
CURRENCY -- (0.0%)
*Australian Dollar (Cost $14,375).................... 14,143
------------
<CAPTION>
SHARES VALUE+
------------ ------------
<S> <C> <C>
PREFERRED STOCKS -- (0.0%)
Village Roadshow, Ltd. 2.2% Class A
(Cost $6,026)...................................... 1,867 $ 2,700
------------
TOTAL -- AUSTRALIA
(Cost $44,642,355)................................... 44,754,063
------------
SWEDEN -- (2.4%)
COMMON STOCKS -- (2.4%)
Assidomaen AB........................................ 164,500 2,879,384
*Asticus AB.......................................... 30,685 260,988
Electrolux AB Series B............................... 44,500 680,185
*Fastighets AB Balder................................ 8,000 75,932
Kinnevik Industrifoervaltnings AB Series A........... 3,200 88,752
Kinnevik Industrifoervaltnings AB Series B........... 36,000 1,025,085
Mo Och Domsjoe AB Series A........................... 6,300 145,997
Mo Och Domsjoe AB Series B........................... 118,300 2,712,333
NCC AB Series A...................................... 45,400 391,741
NCC AB Series B...................................... 95,000 819,723
SSAB Swedish Steel Series A.......................... 129,900 1,168,900
SSAB Swedish Steel Series B.......................... 48,000 443,760
Skandinaviska Enskilda Banken Series A............... 100,000 1,140,216
Stora Kopparbergs Bergslags AB Series A.............. 340,300 4,194,761
Stora Kopparbergs Bergslags AB Series B.............. 79,400 978,736
Svedala Industri..................................... 28,700 428,068
Svenska Cellulosa AB Series A........................ 57,000 1,243,636
#Svenska Cellulosa AB Series B....................... 217,600 4,787,870
Svenska Handelsbanken Series A....................... 80,000 3,234,515
Svenska Kullagerfabriken AB Series A................. 68,400 876,869
#Svenska Kullagerfabriken AB Series B................ 89,700 1,160,986
Sydkraft AB Series C................................. 6,600 134,237
Trelleborg AB Series B............................... 146,400 1,236,166
Volvo AB Series A.................................... 192,600 4,356,499
Volvo AB Series B.................................... 305,100 7,108,031
------------
TOTAL COMMON STOCKS
(Cost $44,388,488)................................... 41,573,370
------------
INVESTMENT IN
CURRENCY -- (0.0%)
*Swedish Krona (Cost $1,987)......................... 2,011
------------
TOTAL -- SWEDEN
(Cost $44,390,475)................................... 41,575,381
------------
HONG KONG -- (2.0%)
COMMON STOCKS -- (2.0%)
Amoy Properties, Ltd................................. 4,570,500 3,305,541
HKR International, Ltd............................... 1,077,384 723,543
Hang Lung Development Co., Ltd....................... 2,126,000 2,457,407
Hysan Development Co., Ltd........................... 1,646,000 2,402,144
Kerry Properties, Ltd................................ 1,261,000 1,017,855
New World Development Co. Ltd........................ 1,502,105 3,647,110
Shangri-la Asia, Ltd................................. 2,982,000 2,657,342
Sino Hotels (Holdings), Ltd.......................... 391,653 47,547
Sino Land Co., Ltd................................... 4,915,200 2,523,301
</TABLE>
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<TABLE>
<CAPTION>
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<S> <C> <C>
Swire Pacific, Ltd. Series A......................... 1,018,000 $ 4,614,723
Tsim Sha Tsui Properties, Ltd........................ 1,174,000 1,743,639
Wharf Holdings, Ltd.................................. 3,672,000 5,809,376
#Wheelock and Co., Ltd............................... 3,243,000 2,952,751
------------
TOTAL COMMON STOCKS
(Cost $52,390,260)................................... 33,902,279
------------
INVESTMENT IN
CURRENCY -- (0.0%)
*Hong Kong Dollars (Cost $3)......................... 3
------------
TOTAL -- HONG KONG
(Cost $52,390,263)................................... 33,902,282
------------
BELGIUM -- (1.9%)
COMMON STOCKS -- (1.9%)
*Banque Bruxelles Lambert VVPR....................... 128 4
Bekaert SA........................................... 3,400 1,832,041
#Credit Communal Holding Dexia Belgium............... 5,400 910,059
Electrabel SA........................................ 4,600 1,793,062
Electrafina SA....................................... 8,000 1,098,308
Fortis AG............................................ 32,270 10,266,454
Fortis AG VVPR....................................... 32,270 925
*Fortis AG CVG....................................... 32,270 184,056
Generale de Banque SA VVPR........................... 630 18
#Glaverbel SA........................................ 14,812 1,914,647
Glaverbel SA VVPR.................................... 22 1
#Groupe Bruxelles Lambert SA, Bruxelles.............. 6,300 1,186,327
Nationale a Portefeuille............................. 4,700 422,313
Sofina SA............................................ 10,500 556,749
Solvay SA............................................ 101,490 7,155,779
Suez Lyonnaise des Eaux.............................. 19,080 3,828,027
*Suez Lyonnaise des Eaux SA VVPR..................... 19,080 547
*Suez Lyonnaise ds Eaux CVG.......................... 19,080 136,715
Union Miniere SA..................................... 40,200 1,843,506
------------
TOTAL COMMON STOCKS
(Cost $23,211,779)................................... 33,129,538
------------
INVESTMENT IN
CURRENCY -- (0.0%)
*Belgian Francs...................................... 11,575
------------
TOTAL -- BELGIUM
(Cost $23,314,256)................................... 33,141,113
------------
DENMARK -- (1.3%)
COMMON STOCKS -- (1.3%)
Den Danske Bank A.S.................................. 44,140 5,699,445
Forsikringsselskabet Codan A.S....................... 7,662 893,975
Jyske Bank A.S....................................... 9,990 948,020
#Kapital Holdings A.S................................ 32,497 1,819,985
Tele Danmark A.S. Series B........................... 70,184 7,861,270
Tryg Baltica Forsikring A.S.......................... 56,055 1,395,264
Unidanmark A.S. Series A............................. 51,864 4,243,985
------------
TOTAL COMMON STOCKS
(Cost $16,803,513)................................... 22,861,944
------------
<CAPTION>
SHARES VALUE+
------------ ------------
<S> <C> <C>
INVESTMENT IN
CURRENCY -- (0.0%)
*Danish Krone (Cost $8,726).......................... $ 9,017
------------
TOTAL -- DENMARK
(Cost $16,812,239)................................... 22,870,961
------------
FINLAND -- (0.7%)
COMMON STOCKS -- (0.7%)
#Asko Oyj............................................ 48,100 763,348
#Enso Oy Series A.................................... 74,500 659,257
#Enso Oy Series R.................................... 157,400 1,392,847
Kemira Oyj........................................... 197,000 1,329,484
#Kesko Oyj........................................... 88,600 1,188,968
#Metsa-Serla Oyj Series B............................ 214,600 1,673,638
Outokumpu Oyj Series A............................... 190,500 1,815,426
Rauma Oyj............................................ 25,900 365,195
#Rautaruukki Oy Series K............................. 203,800 1,307,993
#Upm-Kymmene Oyj..................................... 48,900 1,283,896
Valmet Corp.......................................... 20,000 272,280
------------
TOTAL COMMON STOCKS
(Cost $15,587,453)................................... 12,052,332
------------
INVESTMENT IN
CURRENCY -- (0.0%)
*Finnish Markka (Cost $1,470)........................ 1,542
------------
TOTAL -- FINLAND
(Cost $15,588,923)................................... 12,053,874
------------
SINGAPORE -- (0.5%)
COMMON STOCKS -- (0.5%)
Fraser & Neave, Ltd.................................. 682,000 2,360,320
Industrial & Commercial Bank, Ltd.................... 13,000 21,312
Keppel Corp., Ltd.................................... 1,011,000 2,664,112
*Sembcorp Industries, Ltd............................ 272,112 323,829
Singapore Airlines, Ltd. (Foreign)................... 40,000 279,299
Singapore Land, Ltd.................................. 1,048,000 2,507,086
------------
TOTAL COMMON STOCKS
(Cost $12,184,739)................................... 8,155,958
------------
INVESTMENT IN
CURRENCY -- (0.0%)
*Singapore Dollars (Cost $4,255)..................... 4,462
------------
TOTAL -- SINGAPORE
(Cost $12,188,994)................................... 8,160,420
------------
NORWAY -- (0.4%)
COMMON STOCKS -- (0.4%)
Bergesen Dy ASA Series A............................. 105,892 1,305,119
Den Norske Bank ASA Series A......................... 589,194 2,289,052
Kvaerner ASA......................................... 59,851 906,044
Norsk Hydro ASA...................................... 31,700 1,193,342
Norske Skogindustrier ASA Series A................... 52,781 1,449,542
------------
TOTAL COMMON STOCKS
(Cost $10,772,769)................................... 7,143,099
------------
INVESTMENT IN
CURRENCY -- (0.0%)
*Norwegian Krone (Cost $182)......................... 180
------------
TOTAL -- NORWAY
(Cost $10,772,951)................................... 7,143,279
------------
</TABLE>
32
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THE DFA INTERNATIONAL VALUE SERIES
CONTINUED
<TABLE>
<CAPTION>
SHARES VALUE+
------------ ------------
<S> <C> <C>
MALAYSIA -- (0.3%)(##)
COMMON STOCKS -- (0.3%)
Berjaya Group Berhad................................. 1,302,500 $ 155,916
*Berjaya Industrial Berhad........................... 691,000 58,538
Berjaya Leisure Berhad............................... 235,000 80,064
Genting Berhad....................................... 750,000 1,111,878
Golden Hope Plantations Berhad....................... 1,340,000 769,945
Hap Seng Consolidated Berhad......................... 70,000 32,615
Highlands and Lowlands Berhad........................ 607,000 279,466
Hong Leong Credit Berhad............................. 309,000 168,442
IOI Corp. Berhad..................................... 436,000 167,816
Kuala Lumpur Kepong Berhad........................... 677,000 660,792
Malaysian Resources Corp. Berhad..................... 332,000 95,381
*Renong Berhad....................................... 783,000 183,133
Sime Darby Berhad (Malaysia)......................... 621,000 404,851
Southern Bank Berhad (Foreign)....................... 292,500 95,345
Tenaga Nasional Berhad............................... 193,000 179,494
------------
TOTAL -- MALAYSIA
(Cost $15,724,172)................................... 4,443,676
------------
NEW ZEALAND -- (0.1%)
COMMON STOCKS -- (0.1%)
Carter Holt Harvey, Ltd.............................. 1,176,400 1,123,517
Lion Nathan, Ltd..................................... 372,400 951,045
------------
TOTAL COMMON STOCKS
(Cost $2,576,882).................................... 2,074,562
------------
INVESTMENT IN
CURRENCY -- (0.0%)
*New Zealand Dollar (Cost $102)...................... 107
------------
TOTAL -- NEW ZEALAND
(Cost $2,576,984).................................... 2,074,669
------------
IRELAND -- (0.1%)
COMMON STOCKS -- (0.1%)
Greencore Group P.L.C................................ 51,690 220,228
<CAPTION>
SHARES VALUE+
------------ ------------
<S> <C> <C>
Independent Newspapers P.L.C......................... 67,749 $ 243,859
Irish Life P.L.C..................................... 60,824 518,289
Jefferson Smurfit Group P.L.C........................ 292,012 583,457
------------
TOTAL COMMON STOCKS
(Cost $1,461,157).................................... 1,565,833
------------
INVESTMENT IN
CURRENCY -- (0.0%)
*Irish Punt (Cost $7,838)............................ 7,673
------------
TOTAL -- IRELAND
(Cost $1,468,995).................................... 1,573,506
------------
</TABLE>
<TABLE>
<CAPTION>
FACE
AMOUNT VALUE+
------------ ---------------
(000)
<S> <C> <C>
TEMPORARY CASH INVESTMENTS -- (1.2%)
Repurchase Agreement, PNC Capital Markets Inc. 4.95%,
12/01/98 (Collateralized by U.S. Treasury Notes
6.125%, 12/31/01, valued at $20,240,325) to be
repurchased at $19,936,741.
(Cost $19,934,000)................................. $ 19,934 19,934,000
---------------
TOTAL INVESTMENTS -- (100.0%)
(Cost $1,565,836,431)++.............................. $ 1,711,336,145
---------------
---------------
- --------------------
+ See Note B to Financial Statements.
* Non-Income Producing Securities
# Total or Partial Securities on Loan
++ The cost for federal income tax purposes is $1,570,276,932.
## Illiquid securities fair valued by the Board of Trustees.
</TABLE>
See accompanying Notes to Financial Statements.
33
<PAGE>
THE DFA INVESTMENT TRUST COMPANY
STATEMENTS OF ASSETS AND LIABILITIES
NOVEMBER 30, 1998
(AMOUNTS IN THOUSANDS, EXCEPT SHARE AMOUNTS)
<TABLE>
<CAPTION>
THE U.S. LARGE CAP THE DFA INTERNATIONAL
VALUE SERIES VALUE SERIES
----------------------- -------------------------
<S> <C> <C>
ASSETS:
Investments at Value..................................................... $ 1,748,696 $ 1,711,336
Collateral for Securities Loaned......................................... 9,885 135,315
Receivables
Dividends, Interest and Tax Reclaims................................... 4,466 5,610
Investment Securities Sold............................................. 13,411 5,025
Fund Shares Sold....................................................... 112 136
Prepaid Expenses and Other Assets........................................ 1 1
----------------------- -------------------------
Total Assets......................................................... 1,776,571 1,857,423
----------------------- -------------------------
LIABILITIES:
Payable for Securities Loaned............................................ 9,885 135,315
Payable for Investment Securities Purchased.............................. 9,191 503
Payable for Fund Shares Redeemed......................................... 1,281 899
Accrued Expenses and Other Liabilities................................... 307 457
----------------------- -------------------------
Total Liabilities.................................................... 20,664 137,174
----------------------- -------------------------
NET ASSETS............................................................... $ 1,755,905 $ 1,720,249
----------------------- -------------------------
----------------------- -------------------------
SHARES OUTSTANDING $.01 PAR VALUE
(Authorized 100,000,000)............................................... 93,435,456 143,915,476
----------------------- -------------------------
----------------------- -------------------------
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE................. $ 18.79 $ 11.95
----------------------- -------------------------
----------------------- -------------------------
Investments at Cost...................................................... $ 1,417,070 $ 1,565,836
----------------------- -------------------------
----------------------- -------------------------
</TABLE>
See accompanying Notes to Financial Statements.
34
<PAGE>
THE DFA INVESTMENT TRUST COMPANY
STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED NOVEMBER 30, 1998
(AMOUNTS IN THOUSANDS)
<TABLE>
<CAPTION>
THE U.S. THE DFA
LARGE CAP INTERNATIONAL
VALUE SERIES VALUE SERIES
------------ ----------------
<S> <C> <C>
INVESTMENT INCOME:
Dividends (Net of Foreign Taxes Withheld of $0
and $3,217, respectively)..................... $ 29,635 $ 35,489
Interest........................................ 775 1,070
Income from Securities Lending.................. 210 1,385
------------ ----------------
Total Investment Income..................... 30,620 37,944
------------ ----------------
EXPENSES
Investment Advisory Services.................... 1,667 3,466
Accounting & Transfer Agent Fees................ 688 837
Custodian's Fee................................. 246 547
Legal Fees...................................... 21 39
Audit Fees...................................... 31 34
Shareholders' Reports........................... 30 32
Trustees' Fees and Expenses..................... 7 7
Other........................................... 26 109
------------ ----------------
Total Expenses.............................. 2,716 5,071
------------ ----------------
NET INVESTMENT INCOME........................... 27,904 32,873
------------ ----------------
------------ ----------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS
Net Realized Gain on Investment Securities...... 136,077 11,162
Net Realized Gain on Foreign Currency
Transactions.................................. -- 895
Change in Unrealized Appreciation of:
Investment Securities....................... 12,481 151,571
Translation of Foreign Currency Denominated
Amounts................................... -- 158
------------ ----------------
NET GAIN ON INVESTMENT SECURITIES............... 148,558 163,786
------------ ----------------
NET INCREASE IN ASSETS RESULTING FROM
OPERATIONS...................................... $ 176,462 $ 196,659
------------ ----------------
------------ ----------------
</TABLE>
See accompanying Notes to Financial Statements.
35
<PAGE>
THE DFA INVESTMENT TRUST COMPANY
STATEMENTS OF CHANGES IN NET ASSETS
(AMOUNTS IN THOUSANDS)
<TABLE>
<CAPTION>
THE U.S. LARGE CAP VALUE THE DFA INTERNATIONAL
SERIES VALUE SERIES
------------------------ ------------------------
YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED
NOV. 30, NOV. 30, NOV. 30, NOV. 30,
1998 1997 1998 1997
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net Investment Income............................. $ 27,904 $ 24,622 $ 32,873 $ 31,305
Net Realized Gain on Investment Securities........ 136,077 82,623 11,162 6,023
Net Realized Gain (Loss) on Foreign Currency
Transactions.................................... -- -- 895 (1,666)
Change in Unrealized Appreciation (Depreciation)
of:
Investment Securities and Foreign Currency...... 12,481 172,274 151,571 (107,773)
Translation of Foreign Currency Denominated
Amounts....................................... -- -- 158 (44)
----------- ----------- ----------- -----------
Net Increase (Decrease) in Net Assets
Resulting from Operations................... 176,462 279,519 196,659 (72,155)
----------- ----------- ----------- -----------
Distributions From:
Net Investment Income............................. (28,682) (23,401) (39,352) (29,074)
Net Realized Gains................................ (82,634) (52,566) (4,181) (27,255)
----------- ----------- ----------- -----------
Total Distributions........................... (111,316) (75,967) (43,533) (56,329)
----------- ----------- ----------- -----------
Capital Share Transactions (1):
Shares Issued..................................... 281,067 320,473 161,527 409,256
Shares Issued in Lieu of Cash Distributions....... 91,193 64,945 43,533 56,329
Shares Redeemed................................... (171,495) (86,916) (220,023) (111,867)
----------- ----------- ----------- -----------
Net Increase (Decrease) from Capital Share
Transactions................................ 200,765 298,502 (14,963) 353,718
----------- ----------- ----------- -----------
Total Increase................................ 265,911 502,054 138,163 225,234
NET ASSETS
Beginning of Period............................... 1,489,996 987,942 1,582,086 1,356,852
----------- ----------- ----------- -----------
End of Period..................................... $ 1,755,907 $ 1,489,996 $ 1,720,249 $ 1,582,086
----------- ----------- ----------- -----------
----------- ----------- ----------- -----------
(1) SHARES ISSUED AND REDEEMED:
Shares Issued.................................... 15,137 19,550 13,637 34,790
Shares Issued in Lieu of Cash Distributions...... 5,270 4,236 3,743 4,875
Shares Redeemed.................................. (9,356) (5,069) (18,668) (9,587)
----------- ----------- ----------- -----------
11,051 18,717 (1,288) 30,078
----------- ----------- ----------- -----------
----------- ----------- ----------- -----------
</TABLE>
See accompanying Notes to Financial Statements.
36
<PAGE>
THE DFA INVESTMENT TRUST COMPANY
THE U.S. LARGE CAP VALUE SERIES
FINANCIAL HIGHLIGHTS
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
YEAR YEAR YEAR YEAR YEAR
ENDED NOV. ENDED NOV. ENDED NOV. ENDED NOV. ENDED NOV.
30, 1998 30, 1997 30, 1996 30, 1995 30, 1994
------------ ------------ ---------- ---------- ----------
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period.... $ 18.09 $ 15.52 $ 13.29 $ 9.92 $ 10.59
------------ ------------ ---------- ---------- ----------
INCOME FROM INVESTMENT OPERATIONS
Net Investment Income................. 0.31 0.32 0.31 0.32 0.33
Net Gains (Losses) on Securities
(Realized and Unrealized)........... 1.71 3.38 2.57 3.53 (0.65)
------------ ------------ ---------- ---------- ----------
Total from Investment Operations.... 2.02 3.70 2.88 3.85 (0.32)
------------ ------------ ---------- ---------- ----------
LESS DISTRIBUTIONS
Net Investment Income................. (0.32) (0.31) (0.31) (0.31) (0.35)
Net Realized Gains.................... (1.00) (0.82) (0.34) (0.17) --
------------ ------------ ---------- ---------- ----------
Total Distributions................. (1.32) (1.13) (0.65) (0.48) (0.35)
------------ ------------ ---------- ---------- ----------
Net Asset Value, End of Period.......... $ 18.79 $ 18.09 $ 15.52 $ 13.29 $ 9.92
------------ ------------ ---------- ---------- ----------
------------ ------------ ---------- ---------- ----------
Total Return............................ 11.93% 25.31% 22.48% 39.26% (3.13)%
Net Assets, End of Period (thousands)... $ 1,755,907 $ 1,489,996 $ 987,942 $ 423,027 $ 198,848
Ratio of Expenses to Average Net
Assets................................ 0.16% 0.18% 0.19% 0.21% 0.22%
Ratio of Net Investment Income to
Average Net Assets.................... 1.67% 1.96% 2.37% 2.84% 3.72%
Portfolio Turnover Rate................. 24.70% 17.71% 20.12% 29.41% 39.33%
</TABLE>
See accompanying Notes to Financial Statements.
37
<PAGE>
THE DFA INVESTMENT TRUST COMPANY
THE DFA INTERNATIONAL VALUE SERIES
FINANCIAL HIGHLIGHTS
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
YEAR FEB. 16
YEAR YEAR YEAR ENDED TO
ENDED NOV. ENDED NOV. ENDED NOV. NOV. 30, NOV. 30,
30, 1998 30, 1997 30, 1996 1995 1994
---------- ---------- ---------- -------- --------
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period.... $ 10.90 $ 11.79 $ 10.55 $ 10.06 $ 10.00
---------- ---------- ---------- -------- --------
INCOME FROM INVESTMENT OPERATIONS
Net Investment Income................. 0.22 0.24 0.23 0.20 0.13
Net Gains (Losses) on Securities
(Realized and Unrealized)........... 1.13 (0.67) 1.32 0.52 0.07
---------- ---------- ---------- -------- --------
Total from Investment Operations.... 1.35 (0.43) 1.55 0.72 0.20
---------- ---------- ---------- -------- --------
LESS DISTRIBUTIONS
Net Investment Income................. (0.27) (0.22) (0.23) (0.21) (0.13)
Net Realized Gains.................... (0.03) (0.24) (0.08) (0.02) (0.01)
---------- ---------- ---------- -------- --------
Total Distributions................. (0.30) (0.46) (0.31) (0.23) (0.14)
---------- ---------- ---------- -------- --------
Net Asset Value, End of Period.......... $ 11.95 $ 10.90 $ 11.79 $ 10.55 $ 10.06
---------- ---------- ---------- -------- --------
---------- ---------- ---------- -------- --------
Total Return............................ 12.50% (3.84)% 14.85% 7.20% 1.99%#
Net Assets, End of Period (thousands)... $1,720,249 $1,582,086 $1,356,852 $609,386 $348,381
Ratio of Expenses to Average Net
Assets................................ 0.29% 0.32% 0.36% 0.42% 0.45%*(a)
Ratio of Net Investment Income to
Average Net Assets.................... 1.90% 2.09% 2.23% 2.14% 1.84%*(a)
Portfolio Turnover Rate................. 15.41% 22.55% 12.23% 9.75% 1.90%*
</TABLE>
<TABLE>
<C> <S>
- ----------------
* Annualized
# Non-Annualized
(a) Had certain waivers not been in effect, the ratio of expenses to average
net assets for the period ended November 30, 1994 would have been 0.48%,
and the ratio of net investment income to average net assets for the
period ended November 30, 1994 would have been 1.81%.
</TABLE>
See accompanying Notes to Financial Statements.
38
<PAGE>
THE DFA INVESTMENT TRUST COMPANY
NOTES TO FINANCIAL STATEMENTS
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 sixteen series, of which two are 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 and for which market quotations are readily available are
valued at the last quoted sale price of the day, or if there is no such reported
sale, at the mean between the most recent bid and asked prices. 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. 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.
3. 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 November 30, 1998.
4. 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.
C. INVESTMENT ADVISOR:
Dimensional Fund Advisors Inc. ("DFA" or the "Advisor") provides investment
advisory services to the Series. For the year ended November 30, 1998, the
advisory fees were computed daily and paid monthly to the Advisor based on an
effective annual rate of 0.10 of 1% and 0.20 of 1% of average daily net assets
for The U.S. Large Cap Value Series and The DFA International Value Series,
respectively.
Certain officers of the Series are also officers, directors and shareholders
of the Advisor.
39
<PAGE>
D. PURCHASES AND SALES OF SECURITIES:
For the year ended November 30, 1998, the Series made the following
purchases and sales of investment securities other than U.S. Government
Securities (amounts in thousands):
<TABLE>
<CAPTION>
PURCHASES SALES
--------- ---------
(000) (000)
<S> <C> <C>
The U.S. Large Cap Value Series................................. $ 503,556 $ 404,421
The DFA International Value Series.............................. 261,205 283,971
</TABLE>
E. INVESTMENT TRANSACTIONS:
At November 30, 1998, gross unrealized appreciation and depreciation for
financial reporting and federal income tax purposes of investment securities was
as follows (amounts in thousands):
<TABLE>
<CAPTION>
GROSS GROSS
UNREALIZED UNREALIZED
APPRECIATION DEPRECIATION NET
-------------- -------------- ---------
(000) (000) (000)
<S> <C> <C> <C>
The U.S. Large Cap Value Series............................ $ 425,729 $ (94,103) $ 331,626
The DFA International Value Series......................... 413,521 (272,462) 141,059
</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. The DFA International Value Series had no
borrowings under the line of credit during the year ended November 30, 1998.
Borrowings under the line of credit for The U.S. Large Cap Value Series during
the year ending November 30, 1998 were as follows:
<TABLE>
<CAPTION>
WEIGHTED WEIGHTED NUMBER OF INTEREST MAXIMUM AMOUNT
AVERAGE AVERAGE DAYS EXPENSE BORROWED DURING
INTEREST RATE LOAN BALANCE OUTSTANDING INCURRED THE PERIOD
- --------------- -------------- ------------------- ----------- -----------------
<S> <C> <C> <C> <C>
6.08% $ 3,038,667 3 $ 1,539 $ 3,596,000
</TABLE>
There were no outstanding borrowings under the line of credit at November
30, 1998.
G. COMPONENTS OF NET ASSETS:
At November 30, 1998, net assets consisted of (amounts in thousands):
<TABLE>
<CAPTION>
THE U.S. LARGE THE DFA INTERNATIONAL
CAP VALUE SERIES VALUE SERIES
----------------- ---------------------
<S> <C> <C>
Paid-In Capital.................................................................... $ 1,287,321 $ 1,566,373
Undistributed Net Investment Income................................................ 971 (5,619)
Undistributed Net Realized Gain.................................................... 135,989 12,960
Unrealized Appreciation of Investment Securities................................... 331,626 145,500
Undistributed Net Realized Foreign Exchange Gain................................... -- 895
Unrealized Net Foreign Exchange Gain............................................... -- 140
----------------- ---------------------
Total Net Assets................................................................... $ 1,755,907 $ 1,720,249
----------------- ---------------------
----------------- ---------------------
</TABLE>
40
<PAGE>
H. SECURITIES LENDING:
Loans of domestic securities are required at all times to be secured by
collateral at least equal to 102% of the market value of the securities on loan.
Loans of international securities are required at all time 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 November
30, 1998 was reinvested into overnight repurchase agreements with Warburg Dillon
Reed and Lehman Brothers, which was in turn collateralized by U.S. Government
Treasury Securities. As of November 30, 1998, the market value of securities on
loan to brokers, the related collateral cash received and the value of
collateral on overnight repurchase agreements was as follows:
<TABLE>
<CAPTION>
VALUE OF COLLATERAL
VALUE OF COLLATERAL ON OVERNIGHT
VALUE OF SECURITIES AND INDEMNIFICATION REPURCHASE AGREEMENTS
------------------- -------------------- ------------------------
<S> <C> <C> <C>
The U.S. Large Cap Value Series.......................... $ 9,473,197 $ 9,885,206 $ 9,688,577
The DFA International Value Series....................... 124,139,275 135,315,041 155,080,092
</TABLE>
41
<PAGE>
REPORT OF INDEPENDENT ACCOUNTANTS
TO THE SHAREHOLDERS AND BOARD OF TRUSTEES OF
THE DFA INVESTMENT TRUST COMPANY:
In our opinion, the accompanying statement of assets and liabilities, including
the schedule of investments, of The DFA Investment Trust Company, The U.S. Large
Cap Value Series and The DFA International Value Series, and the related
statements of operations, and of changes in net assets and the financial
highlights present fairly, in all material respects, the financial position of
The DFA Investment Trust Company, The U.S. Large Cap Value Series and The DFA
International Value Series at November 30, 1998, the results of its operations,
changes in its net assets and its financial highlights for each of the periods
presented, in conformity with generally accepted accounting principles. These
financial statements and financial highlights (hereafter referred to as
"financial statements") are the responsibility of the Fund's management; our
responsibility is to express an opinion on these financial statements based on
our audits. We conducted our audits of these financial statements in accordance
with generally accepted auditing standards which require that we plan and
perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements, assessing the accounting principles used and significant estimates
made by management, and evaluating the overall financial statement presentation.
We believe that our audits, which included confirmation of securities at
November 30, 1998 by correspondence with the custodian and brokers, provide a
reasonable basis for the opinion expressed above.
PricewaterhouseCoopers LLP
2400 Eleven Penn Center
Philadelphia, Pennsylvania
January 15, 1999
42
