<PAGE>
- --------------------------------------------------------------------------------
Dimensional Investment Group Inc.
DFA International Value Portfolio III
Annual Report
Year Ended November 30, 1998
-------------------------------------
<PAGE>
DIMENSIONAL INVESTMENT GROUP INC.
DFA INTERNATIONAL VALUE PORTFOLIO III
ANNUAL REPORT
TABLE OF CONTENTS
<TABLE>
<CAPTION>
PAGE
------
<S> <C>
DIMENSIONAL INVESTMENT GROUP INC.
Performance Chart................................................... 1
Statement of Assets and Liabilities................................. 2
Statement of Operations............................................. 3
Statements of Changes in Net Assets................................. 4
Financial Highlights................................................ 5
Notes to Financial Statements....................................... 6-7
Report of Independent Accountants................................... 8
THE DFA INVESTMENT TRUST COMPANY -- THE DFA INTERNATIONAL VALUE SERIES
Performance Chart................................................... 9
Schedule of Investments............................................. 10-17
Statement of Assets and Liabilities................................. 18
Statement of Operations............................................. 19
Statements of Changes in Net Assets................................. 20
Financial Highlights................................................ 21
Notes to Financial Statements....................................... 22-23
Report of Independent Accountants................................... 24
</TABLE>
This report is submitted for the information of the Fund's shareholders. It is
not authorized for distribution to prospective investors unless preceded or
accompanied by an effective prospectus.
i
<PAGE>
DIMENSIONAL INVESTMENT GROUP INC.
PERFORMANCE CHART
- --------------------------------------------------------------------------------
DFA INTERNATIONAL VALUE PORTFOLIO III VS.
EAFE INDEX (NET DIVIDENDS)
MARCH 1995-NOVEMBER 1998
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
DFA International Value EAFE Index (net EAFE Index (gross
GROWTH OF $10,000 Portfolio III dividends) dividends)
<S> <C> <C> <C>
$10,000 $10,000 $10,000
Mar-95 $10,585 $10,623 $10,630
Apr-95 $10,918 $11,022 $11,034
May-95 $10,858 $10,891 $10,902
Jun-95 $10,737 $10,700 $10,716
Jul-95 $11,342 $11,366 $11,391
Aug-95 $10,959 $10,933 $10,958
Sep-95 $11,019 $11,146 $11,178
Oct-95 $10,808 $10,846 $10,876
Nov-95 $11,104 $11,148 $11,180
Dec-95 $11,642 $11,597 $11,639
Jan-96 $11,766 $11,645 $11,685
Feb-96 $11,837 $11,684 $11,732
Mar-96 $12,002 $11,933 $11,978
Apr-96 $12,465 $12,281 $12,326
May-96 $12,352 $12,055 $12,104
Jun-96 $12,393 $12,122 $12,177
Jul-96 $12,063 $11,768 $11,823
Aug-96 $12,115 $11,794 $11,847
Sep-96 $12,321 $12,108 $12,167
Oct-96 $12,207 $11,984 $12,045
Nov-96 $12,742 $12,461 $12,527
Dec-96 $12,582 $12,300 $12,364
Jan-97 $12,159 $11,870 $11,931
Feb-97 $12,265 $12,065 $12,134
Mar-97 $12,317 $12,108 $12,183
Apr-97 $12,243 $12,172 $12,256
May-97 $13,175 $12,965 $13,053
Jun-97 $13,747 $13,679 $13,770
Jul-97 $13,938 $13,901 $13,991
Aug-97 $13,017 $12,862 $12,955
Sep-97 $13,504 $13,582 $13,681
Oct-97 $12,795 $12,539 $12,628
Nov-97 $12,255 $12,411 $12,501
Dec-97 $12,201 $12,519 $12,614
Jan-98 $12,937 $13,092 $13,194
Feb-98 $13,781 $13,932 $14,038
Mar-98 $14,396 $14,361 $14,474
Apr-98 $14,439 $14,475 $14,589
May-98 $14,571 $14,404 $14,516
Jun-98 $14,428 $14,513 $14,633
Jul-98 $14,592 $14,660 $14,779
Aug-98 $12,684 $12,843 $12,946
Sep-98 $12,004 $12,450 $12,558
Oct-98 $13,199 $13,748 $13,877
Nov-98 $13,769 $14,452 $14,584
</TABLE>
<TABLE>
<CAPTION>
ANNUALIZED
TOTAL RETURN ONE FROM
(%) YEAR MARCH 1995
- ---------------------------------------
<S> <C> <C>
12.36 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.
- --------------------------------------------------------------------------------
1
<PAGE>
DIMENSIONAL INVESTMENT GROUP INC.
DFA INTERNATIONAL VALUE PORTFOLIO III
STATEMENT OF ASSETS AND LIABILITIES
NOVEMBER 30, 1998
(AMOUNTS IN THOUSANDS, EXCEPT SHARE AMOUNTS)
<TABLE>
<S> <C>
ASSETS:
Investment in The DFA International Value Series of The DFA Investment Trust Company
(24,080,390 Shares, Cost $252,315)++ at Value......................................... $ 287,761
Receivable for Investment Securities Sold............................................... 298
Prepaid Expenses and Other Assets....................................................... 20
------------
Total Assets........................................................................ 288,079
------------
LIABILITIES:
Payable for Fund Shares Redeemed........................................................ 298
Accrued Expenses and Other Liabilities.................................................. 43
------------
Total Liabilities................................................................... 341
------------
NET ASSETS.............................................................................. $ 287,738
------------
------------
SHARES OUTSTANDING, $.01 PAR VALUE
(Authorized 100,000,000).............................................................. 22,919,926
------------
------------
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE................................ $ 12.55
------------
------------
NET ASSETS CONSIST OF:
Paid-In Capital......................................................................... $ 247,257
Undistributed Net Investment Income..................................................... 5,216
Accumulated Net Realized Loss........................................................... (181)
Unrealized Appreciation of Investment Securities........................................ 35,446
------------
Total Net Assets.................................................................... $ 287,738
------------
------------
</TABLE>
- --------------
++ The cost for federal income tax purposes is $254,591.
See accompanying Notes to Financial Statements.
2
<PAGE>
DIMENSIONAL INVESTMENT GROUP INC.
DFA INTERNATIONAL VALUE PORTFOLIO III
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................. $ 6,804
---------
EXPENSES
Administrative Services............................................................. 30
Accounting & Transfer Agent Fees.................................................... 21
Legal Fees.......................................................................... 16
Audit Fees.......................................................................... 2
Filing Fees......................................................................... 40
Shareholders' Reports............................................................... 22
Directors' Fees and Expenses........................................................ 6
Organization Costs.................................................................. 9
Other............................................................................... 2
---------
Total Expenses.................................................................. 148
---------
NET INVESTMENT INCOME............................................................... 6,656
---------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Capital Gain Distributions Received from the DFA Investment Trust Company............... 749
Net Realized Gain on Investment Securities.............................................. 20
Change in Unrealized Appreciation (Depreciation) of Investment Securities............... 27,952
---------
NET GAIN ON INVESTMENT SECURITIES................................................... 28,721
---------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS.................................... $ 35,377
---------
---------
</TABLE>
See accompanying Notes to Financial Statements.
3
<PAGE>
DIMENSIONAL INVESTMENT GROUP INC.
THE DFA INTERNATIONAL VALUE PORTFOLIO III
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
YEAR YEAR
ENDED ENDED
NOV. 30, NOV. 30,
1998 1997
----------- -----------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net Investment Income................................................................... $ 6,656 $ 5,113
Capital Gain Distributions Received from The DFA Investment Trust Company............... 749 4,853
Net Realized Gain (Loss) on Investment Securities....................................... 20 (769)
Change in Unrealized Appreciation (Depreciation) of Investment Securities............... 27,952 (20,727)
----------- -----------
Net Increase (Decrease) in Net Assets Resulting from Operations..................... 35,377 (11,530)
----------- -----------
Distributions From:
Net Investment Income................................................................... (6,204) (4,258)
Net Realized Gains...................................................................... (3,527) (2,442)
----------- -----------
Total Distributions................................................................. (9,731) (6,700)
----------- -----------
Capital Share Transactions (1):
Shares Issued........................................................................... 38,453 73,599
Shares Issued in Lieu of Cash Distributions............................................. 9,731 6,700
Shares Redeemed......................................................................... (68,910) (21,622)
----------- -----------
Net Increase (Decrease) From Capital Share Transactions............................. (20,726) 58,677
----------- -----------
Total Increase...................................................................... 4,920 40,447
NET ASSETS
Beginning of Period..................................................................... 282,818 242,371
----------- -----------
End of Period........................................................................... $ 287,738 $ 282,818
----------- -----------
----------- -----------
(1) SHARES ISSUED AND REDEEMED:
Shares Issued........................................................................... 3,131 6,101
Shares Issued in Lieu of Cash Distributions............................................. 895 569
Shares Redeemed......................................................................... (5,548) (1,790)
----------- -----------
(1,522) 4,880
----------- -----------
----------- -----------
</TABLE>
See accompanying Notes to Financial Statements.
4
<PAGE>
DIMENSIONAL INVESTMENT GROUP INC.
DFA INTERNATIONAL VALUE PORTFOLIO III
FINANCIAL HIGHLIGHTS
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED
NOV. 30, NOV. 30, NOV. 30, NOV. 30,
1998 1997 1996 1995
---------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
Net Asset Value, Beginning of
Period........................... $ 11.57 $ 12.39 $ 10.81 $ 10.00
---------- ---------- ---------- ----------
INCOME FROM INVESTMENT OPERATIONS
Net Investment Income............ 0.29 0.21 0.21 0.17
Net Gains (Losses) on Securities
(Realized and Unrealized)...... 1.10 (0.69) 1.38 0.84
---------- ---------- ---------- ----------
Total from Investment
Operations..................... 1.39 (0.48) 1.59 1.01
---------- ---------- ---------- ----------
LESS DISTRIBUTIONS
Net Investment Income............ (0.26) (0.22) (0.01) (0.17)
Net Realized Gains............... (0.15) (0.12) -- (0.03)
---------- ---------- ---------- ----------
Total Distributions.............. (0.41) (0.34) (0.01) (0.20)
---------- ---------- ---------- ----------
Net Asset Value, End of Period..... $ 12.55 $ 11.57 $ 12.39 $ 10.81
---------- ---------- ---------- ----------
---------- ---------- ---------- ----------
Total Return....................... 12.36% (3.91)% 14.76% 10.04%#
Net Assets, End of Period
(thousands)...................... $ 287,738 $ 282,818 $ 242,371 $ 146,952
Ratio of Expenses to Average Net
Assets (1)....................... 0.34% 0.38% 0.45% 0.51%*
Ratio of Net Investment Income to
Average Net Assets............... 2.21% 1.88% 2.03% 2.29%*
Portfolio Turnover Rate............ N/A N/A N/A N/A
Portfolio Turnover Rate of Master
Fund Series...................... 15.41% 22.55% 12.23% 9.75%(a)
</TABLE>
- --------------
* Annualized
# Non-Annualized
(1) Represents the respective combined ratio for the Portfolio and its
respective pro-rata share of its Master Fund Series.
(a) Master Fund Series Turnover calculated for the year ended November 30,
1995.
N/A Refer to the respective Master Fund Series.
See accompanying Notes to Financial Statements.
5
<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 The DFA International Value Portfolio III (the "Portfolio") is
presented in this report.
The Portfolio invests all of its assets in The DFA International Value
Series (the "Series") a corresponding series of The DFA Investment Trust
Company. At November 30, 1998, the Portfolio owned 17% of the outstanding shares
of the Series. The financial statements of the Series are included elsewhere in
this report and should be read in conjunction with the financial statements of
the Portfolio.
B. SIGNIFICANT ACCOUNTING POLICIES:
The following significant accounting policies are in conformity with
generally accepted accounting principles for investment companies. Such policies
are consistently followed by the Fund in preparation of its financial
statements. The preparation of financial statements in accordance with generally
accepted accounting principles may require management to make estimates and
assumptions that affect the reported amounts and disclosures in the financial
statements. Actual results could differ from those estimates.
1. SECURITY VALUATION: The shares of the Series held by the Portfolio are
valued at its respective daily net asset value.
2. FEDERAL INCOME TAXES: It is the Portfolio's intention to 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.
Certain officers of the Portfolio are also officers, directors and
shareholders of the Advisor.
D. INVESTMENTS:
At November 30, 1998, gross unrealized appreciation and depreciation for
federal income tax purposes of investment securities was as follows (amounts in
thousands):
<TABLE>
<S> <C>
Gross Unrealized Appreciation........................... $ 33,170
Gross Unrealized Depreciation........................... --
---------
Net..................................................... $ 33,170
---------
---------
</TABLE>
6
<PAGE>
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.
7
<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., The DFA International Value Portfolio III,
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., The DFA International Value
Portfolio III 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
8
<PAGE>
THE DFA INVESTMENT TRUST COMPANY
PERFORMANCE CHART
- --------------------------------------------------------------------------------
DFA INTERNATIONAL VALUE SERIES VS.
EAFE INDEX (NET DIVIDENDS)
MARCH 1994-NOVEMBER 1998
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
DFA International Value EAFE Index (net EAFE Index (gross
GROWTH OF $10,000 Series dividends) 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
TOTAL RETURN ONE FROM
(%) 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.
- --------------------------------------------------------------------------------
9
<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>
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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
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#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
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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
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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
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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
--------------
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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
--------------
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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>
14
<PAGE>
THE DFA INTERNATIONAL VALUE SERIES
CONTINUED
<TABLE>
<CAPTION>
SHARES VALUE+
------------ --------------
<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>
15
<PAGE>
THE DFA INTERNATIONAL VALUE SERIES
CONTINUED
<TABLE>
<CAPTION>
SHARES VALUE+
------------ --------------
<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>
16
<PAGE>
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
--------------
FACE
AMOUNT
------------
(000)
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.
17
<PAGE>
THE DFA INVESTMENT TRUST COMPANY
THE DFA INTERNATIONAL VALUE SERIES
STATEMENT OF ASSETS AND LIABILITIES
NOVEMBER 30, 1998
(AMOUNTS IN THOUSANDS, EXCEPT SHARE AMOUNTS)
<TABLE>
<S> <C>
ASSETS:
Investments at Value................................................................... $ 1,711,336
Collateral for Securities Loaned....................................................... 135,315
Receivables
Dividends, Interest and Tax Reclaims................................................. 5,610
Investment Securities Sold........................................................... 5,025
Fund Shares Sold..................................................................... 136
Prepaid Expenses and Other Assets...................................................... 1
-------------
Total Assets....................................................................... 1,857,423
-------------
LIABILITIES:
Payable for Securities Loaned.......................................................... 135,315
Payable for Investment Securities Purchased............................................ 503
Payable for Fund Shares Redeemed....................................................... 899
Accrued Expenses and Other Liabilities................................................. 457
-------------
Total Liabilities.................................................................. 137,174
-------------
NET ASSETS............................................................................. $ 1,720,249
-------------
-------------
SHARES OUTSTANDING $.01 PAR VALUE
(Authorized 100,000,000)............................................................. 143,915,476
-------------
-------------
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE............................... $ 11.95
-------------
-------------
Investments at Cost.................................................................... $ 1,565,836
-------------
-------------
</TABLE>
See accompanying Notes to Financial Statements.
18
<PAGE>
THE DFA INVESTMENT TRUST COMPANY
THE DFA INTERNATIONAL VALUE SERIES
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED NOVEMBER 30, 1998
(AMOUNTS IN THOUSANDS)
<TABLE>
<S> <C>
INVESTMENT INCOME
Dividends (Net of Foreign Taxes Withheld of $3,217)................................ $ 35,489
Interest........................................................................... 1,070
Income from Securities Lending..................................................... 1,385
---------
Total Investment Income........................................................ 37,944
---------
EXPENSES
Investment Advisory Services....................................................... 3,466
Accounting & Transfer Agent Fees................................................... 837
Custodian's Fee.................................................................... 547
Legal Fees......................................................................... 39
Audit Fees......................................................................... 34
Shareholders' Reports.............................................................. 32
Trustees' Fees and Expenses........................................................ 7
Other.............................................................................. 109
---------
Total Expenses................................................................. 5,071
---------
NET INVESTMENT INCOME.............................................................. 32,873
---------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCY
Net Realized Gain on Investment Securities............................................. 11,162
Net Realized Gain on Foreign Currency Transactions..................................... 895
Change in Unrealized Appreciation (Depreciation) of:
Investment Securities and Foreign Currency......................................... 151,571
Translation of Foreign Currency Denominated Amounts................................ 158
---------
NET GAIN ON INVESTMENT SECURITIES AND FOREIGN CURRENCY............................. 163,786
---------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS................................... $ 196,659
---------
---------
</TABLE>
See accompanying Notes to Financial Statements.
19
<PAGE>
THE DFA INVESTMENT TRUST COMPANY
THE DFA INTERNATIONAL VALUE SERIES
STATEMENTS 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............................................................... $ 32,873 $ 31,305
Net Realized Gain on Investment Securities.......................................... 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...................................... 151,571 (107,773)
Translation of Foreign Currency Denominated Amounts............................. 158 (44)
------------- -------------
Net Increase (Decrease) in Net Assets Resulting from Operations................. 196,659 (72,155)
------------- -------------
Distributions From:
Net Investment Income............................................................... (39,352) (29,074)
Net Realized Gains.................................................................. (4,181) (27,255)
------------- -------------
Total Distributions............................................................. (43,533) (56,329)
------------- -------------
Capital Share Transactions (1):
Shares Issued....................................................................... 161,527 409,256
Shares Issued in Lieu of Cash Distributions......................................... 43,533 56,329
Shares Redeemed..................................................................... (220,023) (111,867)
------------- -------------
Net Increase (Decrease) From Capital Share Transactions......................... (14,963) 353,718
------------- -------------
Total Increase.................................................................. 138,163 225,234
NET ASSETS
Beginning of Period................................................................. 1,582,086 1,356,852
------------- -------------
End of Period....................................................................... $ 1,720,249 $ 1,582,086
------------- -------------
------------- -------------
(1) SHARES ISSUED AND REDEEMED:
Shares Issued....................................................................... 13,637 34,790
Shares Issued in Lieu of Cash Distributions......................................... 3,743 4,875
Shares Redeemed..................................................................... (18,668) (9,587)
------------- -------------
(1,288) 30,078
------------- -------------
------------- -------------
</TABLE>
See accompanying Notes to Financial Statements.
20
<PAGE>
THE DFA INVESTMENT TRUST COMPANY
THE DFA INTERNATIONAL VALUE SERIES
FINANCIAL HIGHLIGHTS
(FOR A SHARE OUTSTANDING THROUGH EACH PERIOD)
<TABLE>
<CAPTION>
YEAR YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED 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.... $ 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>
- --------------
* 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%.
See accompanying Notes to Financial Statements.
21
<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 The DFA International Value
Series (the "Series") is presented in this report.
B. SIGNIFICANT ACCOUNTING POLICIES:
The following significant accounting policies are in conformity with
generally accepted accounting principles for investment companies. Such policies
are consistently followed by the Trust in preparation of its financial
statements. The preparation of financial statements in accordance with generally
accepted accounting principles may require management to make estimates and
assumptions that affect the reported amounts and disclosures in the financial
statements. Actual results could differ from those estimates.
1. SECURITY VALUATION: Securities held by the Series which are listed on a
securities exchange are valued at the last quoted sale price. Price information
on listed securities is taken from the exchange where the security is primarily
traded. Unlisted securities for which market quotations are readily available
are valued at the mean between the most recent bid and asked prices. Securities
for which quotations are not readily available are valued in good faith at fair
value using methods determined by the Board of Trustees.
2. FOREIGN CURRENCY TRANSLATION: Securities, other assets and liabilities
of The DFA International Value Series whose values are initially expressed in
foreign currencies are translated to U.S. dollars at the mean price of such
currency against U.S. dollars last quoted by a major bank. Dividend and interest
income and certain expenses are translated to U.S. dollars at the rate of
exchange on their respective accrual dates. Receivables and payables denominated
in foreign currencies are marked to market daily based on daily exchange rates
and exchange gains or losses are realized upon ultimate receipt or disbursement.
3. FEDERAL INCOME TAXES: It is the Series' intention to continue to
qualify as a regulated investment company and distribute all of its taxable
income. Accordingly, no provision for Federal taxes is required in the financial
statements.
4. REPURCHASE AGREEMENTS: The Series may purchase money market instruments
subject to the seller's agreement to repurchase them at an agreed upon date and
price. The seller will be required on a daily basis to maintain the value of the
collateral subject to the agreement at not less than the repurchase price
(including accrued interest). The agreements are conditioned upon the collateral
being deposited under the Federal Reserve book-entry system with the Trust's
custodian or a third party sub-custodian. All open repurchase agreements were
entered into on November 30, 1998.
5. FOREIGN MARKET RISKS: Investments in foreign markets may involve
certain considerations and risks not typically associated with investments in
the United States, including the possibility of future political and economic
developments and the level of foreign government supervision and regulation of
foreign securities markets. These markets are generally smaller, less liquid and
more volatile than the major securities markets in the United States.
Consequently, acquisition and disposition of securities by the Fund may be
inhibited.
6. OTHER: Security transactions are accounted for on the date the
securities are purchased or sold. Costs used in determining realized gains and
losses on the sale of investment securities are those of specific securities
sold. Dividend income and distributions to shareholders are recorded on the
ex-dividend date. Interest income is recorded on the accrual basis. Discount and
premium on securities purchased are amortized over the lives of the respective
securities. Expenses directly attributable to a Series are directly charged.
Common expenses are allocated using methods determined by the Board of Trustees.
22
<PAGE>
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
Series' advisory fees were computed daily and paid monthly to the Advisor based
on an effective annual rate of 0.20 of 1% of average daily net assets.
Certain officers of the Series are also officers, directors and shareholders
of the Advisor.
D. PURCHASES AND SALES OF SECURITIES:
For the 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>
<S> <C>
Purchases.............................................. $ 261,205
Sales.................................................. 283,971
</TABLE>
E. INVESTMENT TRANSACTIONS:
At November 30, 1998, gross unrealized appreciation and depreciation for
federal income tax purposes of investment securities and foreign currencies was
as follows (amounts in thousands):
<TABLE>
<S> <C>
Gross Unrealized Appreciation......................... $ 413,521
Gross Unrealized Depreciation......................... (272,462)
----------
Net................................................... $ 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. There is no commitment fee on the unused
portion of the line of credit. There were no borrowings under the line of credit
by the Series during the year ended November 30, 1998.
G. SECURITIES LENDING:
Loans of international securities are required at all times to be secured by
collateral at least equal to 105% of the market value of the securities on loan.
However, in the event of default or bankruptcy by the other party to the
agreement, realization and/or retention of the collateral may be subject to
legal proceedings. In the event that the borrower fails to return loaned
securities, and cash collateral being maintained by the borrower is insufficient
to cover the value of loaned securities and provided such collateral
insufficiency is not the result of investment losses, the lending agent has
agreed to pay the amount of the shortfall to the Series or, at the option of the
lending agent, replace the loaned securities. Such cash collateral for November
30, 1998 was reinvested into overnight repurchase agreements with Salomon
Brothers, which was in turn collateralized by U.S. Government Treasury
Securities. At November 30, 1998, the market value of securities on loan to
brokers was $124,139,275, the related collateral cash received was $135,315,041
and the value of collateral on overnight repurchase agreements was $155,880,092.
H. COMPONENTS OF NET ASSETS:
At November 30, 1998, net assets consisted of (amounts in thousands):
<TABLE>
<S> <C>
Paid-In Capital...................................... $ 1,566,373
Accumulated Net Investment Loss...................... (5,619)
Undistributed Net Realized Gain...................... 12,960
Undistributed Net Realized Foreign Exchange Gain..... 895
Unrealized Appreciation of Investment Securities and
Foreign Currency.................................... 145,500
Unrealized Net Foreign Exchange Gain................. 140
-----------
$ 1,720,249
-----------
-----------
</TABLE>
23
<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 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 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
24
