<PAGE>
- --------------------------------------------------------------------------------
Dimensional Investment Group Inc.
DFA International Value Portfolio IV
Annual Report
Year Ended November 30, 1999
-------------------------------------
<PAGE>
DIMENSIONAL INVESTMENT GROUP INC.
DFA INTERNATIONAL VALUE PORTFOLIO IV
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................................. 10-16
Statement of Assets and Liabilities..................... 17
Statement of Operations................................. 18
Statements of Changes in Net Assets..................... 19
Financial Highlights.................................... 20
Notes to Financial Statements........................... 21-23
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 IV VS.
MSCI EAFE INDEX (NET DIVIDENDS)
SEPTEMBER 1997-NOVEMBER 1999
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
GROWTH OF $10,000
<S> <C> <C>
DFA INTERNATIONAL VALUE PORTFOLIO IV MSCI EAFE INDEX (NET DIVIDENDS)
$10,000 $10,000
Sep-97 $10,375 $10,560
Oct-97 $9,833 $9,749
Nov-97 $9,427 $9,650
Dec-97 $9,383 $9,734
Jan-98 $9,953 $10,178
Feb-98 $10,606 $10,832
Mar-98 $11,082 $11,165
Apr-98 $11,124 $11,254
May-98 $11,229 $11,198
Jun-98 $11,124 $11,284
Jul-98 $11,251 $11,398
Aug-98 $9,784 $9,985
Sep-98 $9,256 $9,680
Oct-98 $10,174 $10,688
Nov-98 $10,628 $11,236
Dec-98 $10,842 $11,680
Jan-99 $10,626 $11,644
Feb-99 $10,356 $11,367
Mar-99 $11,003 $11,841
Apr-99 $11,661 $12,321
May-99 $11,068 $11,686
Jun-99 $11,564 $12,142
Jul-99 $11,985 $12,503
Aug-99 $12,114 $12,549
Sep-99 $12,158 $12,676
Oct-99 $12,104 $13,145
Nov-99 $12,072 $13,601
</TABLE>
<TABLE>
<CAPTION>
ANNUALIZED ONE FROM
TOTAL RETURN (%) YEAR SEPTEMBER 1997
-----------------------------------------------
<S> <C> <C>
13.58 8.73
</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 MSCI EAFE INDEX MARKET CAPITALIZATION WEIGHT, WITH JAPAN LIMITED TO 38%.
- - THE PORTFOLIO'S RETURNS IN FISCAL 1999 REFLECTED THE PERFORMANCE OF LARGE,
NON-U.S. COMPANIES WITH HIGH BOOK-TO-MARKET RATIOS.
Past performance is not predictive of future performance.
MSCI EAFE Index (net dividends) courtesy of Morgan Stanley Capital International
Index.
- --------------------------------------------------------------------------------
1
<PAGE>
DIMENSIONAL INVESTMENT GROUP INC.
DFA INTERNATIONAL VALUE PORTFOLIO IV
STATEMENT OF ASSETS AND LIABILITIES
NOVEMBER 30, 1999
(AMOUNTS IN THOUSANDS, EXCEPT SHARE AMOUNTS)
<TABLE>
<S> <C>
ASSETS:
Investment in The DFA International Value Series of The DFA
Investment Trust Company (9,199,083 Shares, Cost $110,804
)++ at Value.............................................. $ 121,244
Receivable from Sponsor..................................... 39
Receivable for Fund Shares Sold............................. 1,477
Prepaid Expenses and Other Assets........................... 26
-----------
Total Assets............................................ 122,786
-----------
LIABILITIES:
Payable for Investment Securities Purchased................. 1,477
Accrued Expenses and Other Liabilities...................... 33
-----------
Total Liabilities....................................... 1,510
-----------
NET ASSETS.................................................. $ 121,276
===========
SHARES OUTSTANDING, $.01 PAR VALUE
(Authorized 200,000,000).................................. 10,838,316
===========
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE.... $ 11.19
===========
NET ASSETS CONSIST OF:
Paid-In Capital............................................. $ 110,313
Undistributed Net Investment Income......................... 2,232
Accumulated Net Realized Loss............................... (1,709)
Unrealized Appreciation of Investment Securities............ 10,440
-----------
Total Net Assets........................................ $ 121,276
===========
</TABLE>
<TABLE>
<C> <S>
- -----------------------------------------------------------------
++ The cost for federal income tax purposes is $112,845.
</TABLE>
See accompanying Notes to Financial Statements.
2
<PAGE>
DIMENSIONAL INVESTMENT GROUP INC.
DFA INTERNATIONAL VALUE PORTFOLIO IV
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED NOVEMBER 30, 1999
(AMOUNTS IN THOUSANDS)
<TABLE>
<S> <C>
INVESTMENT INCOME
Income Distributions Received from The DFA Investment
Trust Company........................................... $ 2,723
-------
EXPENSES
Administrative Services................................... 80
Accounting & Transfer Agent Fees.......................... 13
Legal Fees................................................ 5
Audit Fees................................................ 1
Filing Fees............................................... 13
Shareholders' Reports..................................... 13
Directors' Fees and Expenses.............................. 2
Other..................................................... 9
-------
Total Expenses........................................ 136
-------
NET INVESTMENT INCOME..................................... 2,587
-------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Capital Gain Distributions Received from The DFA
Investment Trust Company................................ 218
Net Realized Loss on Investment Securities................ (91)
Change in Unrealized Appreciation of Investment
Securities.............................................. 10,814
-------
NET GAIN ON INVESTMENT SECURITIES......................... 10,941
-------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........ $13,528
=======
</TABLE>
See accompanying Notes to Financial Statements.
3
<PAGE>
DIMENSIONAL INVESTMENT GROUP INC.
THE DFA INTERNATIONAL VALUE PORTFOLIO IV
STATEMENTS OF CHANGES IN NET ASSETS
(AMOUNTS IN THOUSANDS)
<TABLE>
<CAPTION>
YEAR YEAR
ENDED ENDED
NOV. 30, NOV. 30,
1999 1998
--------- ---------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net Investment Income..................................... $ 2,587 $ 2,246
Capital Gain Distributions Received from The DFA
Investment Trust Company................................ 218 259
Net Realized Loss on Investment Securities................ (91) (1,537)
Change in Unrealized Appreciation of Investment
Securities.............................................. 10,814 10,672
-------- --------
Net Increase in Net Assets Resulting from
Operations.......................................... 13,528 11,640
-------- --------
Distributions From:
Net Investment Income..................................... (2,113) (1,342)
Net Realized Gains........................................ -- --
-------- --------
Total Distributions................................... (2,113) (1,342)
-------- --------
Capital Share Transactions (1):
Shares Issued............................................. 28,755 15,403
Shares Issued in Lieu of Cash Distributions............... 2,113 1,342
Shares Redeemed........................................... (20,224) (26,324)
-------- --------
Net Increase (Decrease) From Capital Share
Transactions........................................ 10,644 (9,579)
-------- --------
Capital Contribution from Sponsor........................... 453 475
-------- --------
Total Increase........................................ 22,512 1,194
NET ASSETS
Beginning of Period....................................... 98,764 97,570
-------- --------
End of Period............................................. $121,276 $ 98,764
======== ========
(1) SHARES ISSUED AND REDEEMED:
Shares Issued............................................. 2,728 1,591
Shares Issued in Lieu of Cash Distributions............... 215 154
Shares Redeemed........................................... (1,913) (2,717)
-------- --------
1,030 (972)
======== ========
</TABLE>
See accompanying Notes to Financial Statements.
4
<PAGE>
DIMENSIONAL INVESTMENT GROUP INC.
THE DFA INTERNATIONAL VALUE PORTFOLIO IV
FINANCIAL HIGHLIGHTS
(FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD)
<TABLE>
<CAPTION>
YEAR YEAR
ENDED ENDED AUGUST 15,
NOV. 30, NOV. 30, TO NOV. 30,
1999 1998 1997
--------- --------- ------------
<S> <C> <C> <C>
Net Asset Value, Beginning of Period........................ $ 10.07 $ 9.05 $ 10.00
-------- ------- -------
INCOME FROM INVESTMENT OPERATIONS
Net Investment Income..................................... 0.30 0.23 0.08
Net Gains (Losses) on Securities (Realized and
Unrealized)............................................. 1.04 0.92 (1.03)
-------- ------- -------
Total from Investment Operations........................ 1.34 1.15 (0.95)
-------- ------- -------
LESS DISTRIBUTIONS
Net Investment Income..................................... (0.22) (0.13) --
Net Realized Gains........................................ -- -- --
-------- ------- -------
Total Distributions..................................... (0.22) (0.13) --
-------- ------- -------
Net Asset Value, End of Period.............................. $ 11.19 $ 10.07 $ 9.05
======== ======= =======
Total Return................................................ 13.58% 12.74% (9.50)%#
Net Assets, End of Period (thousands)....................... $121,276 $98,764 $97,570
Ratio of Expenses to Average Net Assets (1)................. 0.41%(a) 0.44%(a) 0.47%*(a)
Ratio of Net Investment Income to Average Net Assets........ 2.32%(a) 2.09%(a) 2.65%*(a)
Portfolio Turnover Rate..................................... N/A N/A N/A
Portfolio Turnover Rate of Master Fund Series............... 5.80% 15.41% 22.55%*(b)
</TABLE>
<TABLE>
<C> <S>
- -----------------------------------------------------------------
* Annualized
# Non-Annualized
(1) Represents the combined ratio for the Portfolio and its
respective pro-rata share of its Master Fund Series.
(a) The plan's sponsor has voluntarily contributed to the
portfolio an amount equal to that portion of the aggregate
fees and expenses incurred by the portfolio relating to the
plan's investment.
(b) Calculated for the year ended November 30, 1997.
</TABLE>
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 consists of fifteen
portfolios, of which The DFA International Value Portfolio IV (the "Portfolio")
is presented in this report.
The Portfolio invests all of its assets in The DFA International Value
Series (the "Series") a corresponding series of The DFA Investment Trust
Company. At November 30, 1999, the Portfolio owned 7% 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 the preparation of its financial
statements. The preparation of financial statements in accordance with generally
accepted accounting principles may require management to make estimates and
assumptions that affect the reported amounts and disclosures in the financial
statements. Actual results could differ from those estimates.
1. SECURITY VALUATION: The shares of the Series held by the Portfolio are
valued at its respective daily net asset value.
2. FEDERAL INCOME TAXES: It is the Portfolio's intention to qualify as a
regulated investment company and distribute all of its taxable income.
Accordingly, no provision for Federal income tax is required in the financial
statements.
3. OTHER: Security transactions are accounted for on the date the
securities are purchased or sold. Costs used in determining realized gains and
losses on the sale of investment securities are those of specific securities
sold. Dividend income and distributions to shareholders are recorded on the
ex-dividend date. The components of net assets may be adjusted for current
period permanent book/tax differences which arose principally from differing
book/tax treatments of net short-term capital gain distribution from The DFA
Investment Trust Company and/or foreign currency and foreign taxes on capital
gains. 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, 1999, the
Portfolio's administrative fees were computed daily and paid monthly to the
Advisor based on an effective annual rate of 0.20 of 1% of the first $40 million
of average net assets.
Certain officers of the Portfolio are also officers, directors and
shareholders of the Advisor.
Each sponsor of a benefit plan which invests in the Portfolio has agreed to
make a voluntary monthly contribution to the Portfolio in an amount equal to
that portion of the aggregate fees and expenses incurred by the Portfolio
relating to the benefit plan's investment. Such contributions are made in
accordance with the sponsor's practice of bearing the expenses of administering
the benefit plan's investments and are recorded as an addition to paid-in
capital.
6
<PAGE>
D. INVESTMENTS:
At November 30, 1999, gross unrealized appreciation and depreciation for
federal income tax purposes of investment securities was as follows (amounts in
thousands):
<TABLE>
<S> <C>
Gross Unrealized Appreciation........................... $ 8,399
Gross Unrealized Depreciation........................... --
-------
Net................................................... $ 8,399
=======
</TABLE>
E. LINE OF CREDIT:
The Fund, together with other DFA-advised portfolios, has entered into a $50
million unsecured line of credit with its domestic custodian bank. Each
portfolio is permitted to borrow, subject to its investment limitations, up to a
maximum of $50 million. Borrowings under the line are charged interest at the
current overnight federal funds rate plus a variable rate determined at the date
of borrowing. Each portfolio is individually, and not jointly liable for its
particular advances under the line. There is no commitment fee on the unused
portion of the line of credit. There were no borrowings under the line of credit
by the Portfolio during the year ended November 30, 1999.
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, and
the related statements of operations and of changes in net assets and the
financial highlights present fairly, in all material respects, the financial
position of DFA International Value Portfolio IV (constituting a portfolio
within the Dimensional Investment Group Inc., hereafter referred to as the
"Fund") at November 30, 1999, and the results of its operations for the year
then ended, the changes in its net assets for each of the two years in the
period then ended and the 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, 1999 by correspondence with the custodian, provide a reasonable
basis for the opinion expressed above.
PricewaterhouseCoopers LLP
2400 Eleven Penn Center
Philadelphia, Pennsylvania
January 14, 2000
8
<PAGE>
THE DFA INVESTMENT TRUST COMPANY
PERFORMANCE CHART
- --------------------------------------------------------------------------------
DFA INTERNATIONAL VALUE SERIES VS.
MSCI EAFE INDEX (NET DIVIDENDS)
MARCH 1994-NOVEMBER 1999
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
GROWTH OF $10,000
<S> <C> <C>
DFA INTERNATIONAL VALUE SERIES MSCI EAFE INDEX (NET DIVIDENDS)
$10,000 $10,000
Mar-94 $9,733 $9,569
Apr-94 $10,060 $9,975
May-94 $10,119 $9,918
Jun-94 $10,239 $10,058
Jul-94 $10,438 $10,155
Aug-94 $10,598 $10,396
Sep-94 $10,228 $10,068
Oct-94 $10,658 $10,404
Nov-94 $10,099 $9,903
Dec-94 $10,159 $9,966
Jan-95 $9,757 $9,583
Feb-95 $9,736 $9,556
Mar-95 $10,312 $10,152
Apr-95 $10,633 $10,533
May-95 $10,573 $10,408
Jun-95 $10,463 $10,225
Jul-95 $11,052 $10,862
Aug-95 $10,676 $10,448
Sep-95 $10,740 $10,652
Oct-95 $10,536 $10,365
Nov-95 $10,826 $10,653
Dec-95 $11,351 $11,083
Jan-96 $11,464 $11,128
Feb-96 $11,537 $11,166
Mar-96 $11,698 $11,404
Apr-96 $12,154 $11,736
May-96 $12,040 $11,520
Jun-96 $12,083 $11,584
Jul-96 $11,760 $11,246
Aug-96 $11,811 $11,271
Sep-96 $12,019 $11,570
Oct-96 $11,904 $11,452
Nov-96 $12,434 $11,908
Dec-96 $12,271 $11,755
Jan-97 $11,861 $11,343
Feb-97 $11,969 $11,529
Mar-97 $12,013 $11,571
Apr-97 $11,948 $11,632
May-97 $12,855 $12,389
Jun-97 $13,413 $13,072
Jul-97 $13,598 $13,284
Aug-97 $12,706 $12,291
Sep-97 $13,174 $12,980
Oct-97 $12,483 $11,983
Nov-97 $11,955 $11,861
Dec-97 $11,907 $11,964
Jan-98 $12,627 $12,511
Feb-98 $13,456 $13,314
Mar-98 $14,051 $13,724
Apr-98 $14,095 $13,832
May-98 $14,227 $13,764
Jun-98 $14,089 $13,869
Jul-98 $14,245 $14,009
Aug-98 $12,382 $12,273
Sep-98 $11,716 $11,898
Oct-98 $12,883 $13,138
Nov-98 $13,448 $13,810
Dec-98 $13,711 $14,356
Jan-99 $13,439 $14,313
Feb-99 $13,099 $13,972
Mar-99 $13,906 $14,555
Apr-99 $14,732 $15,144
May-99 $13,985 $14,364
Jun-99 $14,616 $14,924
Jul-99 $15,144 $15,368
Aug-99 $15,292 $15,425
Sep-99 $15,347 $15,580
Oct-99 $15,278 $16,157
Nov-99 $15,231 $16,717
</TABLE>
<TABLE>
<CAPTION>
ANNUALIZED ONE FIVE FROM
TOTAL RETURN (%) YEAR YEARS MARCH 1994
-----------------------------------------------------
<S> <C> <C> <C>
13.25 8.56 7.59
</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 MSCI EAFE INDEX
MARKET CAPITALIZATION WEIGHT, WITH JAPAN LIMITED TO 38%.
- - THE SERIES' RETURNS IN FISCAL 1999 REFLECTED THE PERFORMANCE OF LARGE,
NON-U.S. COMPANIES WITH HIGH BOOK-TO-MARKET RATIOS.
Past performance is not predictive of future performance.
MSCI EAFE Index (net dividends) courtesy of Morgan Stanley Capital International
Index.
- --------------------------------------------------------------------------------
9
<PAGE>
THE DFA INTERNATIONAL VALUE SERIES
SCHEDULE OF INVESTMENTS
NOVEMBER 30, 1999
<TABLE>
<CAPTION>
SHARES VALUE+
------ ------
<S> <C> <C>
JAPAN -- (28.2%)
COMMON STOCKS -- (28.2%)
Aichi Bank, Ltd....................................... 10,500 $ 813,818
Aisin Seiki Co., Ltd.................................. 137,000 2,083,456
Amada Co., Ltd........................................ 376,000 2,134,168
Amano Corp............................................ 115,000 804,668
#Aomori Bank, Ltd..................................... 170,000 707,051
Aoyama Trading Co., Ltd............................... 41,100 977,374
Asahi Glass Co., Ltd.................................. 140,000 1,124,822
*Ashikaga Bank, Ltd................................... 808,000 1,739,589
Awa Bank, Ltd......................................... 196,600 1,010,079
Bank of Ikeda, Ltd.................................... 13,000 720,066
Bank of Iwate, Ltd.................................... 18,590 827,758
*Bank of Kinki, Ltd................................... 225,000 616,529
#Bank of Kyoto, Ltd................................... 347,400 2,039,829
Bank of Nagoya, Ltd................................... 185,000 1,140,578
#Bank of Saga, Ltd.................................... 215,000 786,906
Bank of Yokohama, Ltd................................. 978,000 4,431,314
#Best Denki Co., Ltd.................................. 153,000 1,497,284
Canon Sales Co., Inc.................................. 124,900 1,711,210
Casio Computer Co., Ltd............................... 60,000 408,670
#Chiba Bank, Ltd...................................... 941,000 5,037,206
Chiyoda Fire and Marine Insurance Co., Ltd............ 444,150 1,443,047
Chudenko Corp......................................... 84,460 1,472,894
#Chugoku Bank, Ltd.................................... 199,000 2,243,460
Citizen Watch Co., Ltd................................ 317,000 1,941,987
Cosmo Oil Co., Ltd.................................... 764,000 1,196,261
Dai Nippon Pharmaceutical Co., Ltd.................... 203,000 1,358,829
Dai Tokyo Fire & Marine Insurance Co., Ltd............ 529,000 2,262,298
Daicel Chemical Industries, Ltd....................... 485,000 1,433,380
Daio Paper Corp....................................... 3,000 23,017
Daisan Bank, Ltd...................................... 68,000 299,457
Daishi Bank, Ltd...................................... 355,000 1,396,584
Daito Trust Construction Co., Ltd..................... 180,784 2,282,246
Daiwa Bank, Ltd....................................... 500,000 1,688,114
Daiwa House Industry Co., Ltd......................... 663,000 5,969,172
Daiwa Kosho Lease Co., Ltd............................ 193,000 746,049
*#Daiwa Securities Co., Ltd........................... 1,693,000 24,156,121
Dowa Fire & Marine Insurance Co., Ltd................. 383,000 993,247
Ehime Bank, Ltd....................................... 143,000 629,740
#Eighteenth Bank, Ltd................................. 226,000 875,823
Ezaki Glico Co., Ltd.................................. 174,600 837,246
Fuji Photo Film Co., Ltd.............................. 355,000 14,417,474
Fukui Bank, Ltd....................................... 343,000 899,584
#Fukuoka City Bank, Ltd............................... 264,532 1,255,546
#Fukuyama Transporting Co., Ltd....................... 266,000 1,900,278
Futaba Corp........................................... 16,000 613,789
Futaba Industrial Co., Ltd............................ 85,000 986,544
Hanshin Electric Railway Co., Ltd..................... 141,000 420,854
Higo Bank, Ltd........................................ 308,000 1,350,335
*Hino Motors, Ltd..................................... 398,000 1,265,841
Hiroshima Bank, Ltd................................... 593,000 2,303,870
Hitachi Construction Machinery Co., Ltd............... 64,000 328,815
#Hitachi Maxell, Ltd.................................. 96,000 2,574,154
Hitachi Metals, Ltd................................... 360,000 1,655,820
<CAPTION>
SHARES VALUE+
------ ------
<S> <C> <C>
#Hitachi Transport System, Ltd........................ 138,000 $ 767,079
Hitachi, Ltd.......................................... 3,717,000 51,289,020
#Hokuetsu Bank........................................ 275,330 811,022
#Hokuetsu Paper Mills, Ltd............................ 162,000 1,255,605
*Hokuriku Bank, Ltd................................... 891,000 2,101,394
House Foods Corp...................................... 115,000 1,632,969
Hyakugo Bank, Ltd. (105th Bank)....................... 258,000 1,232,118
#Hyakujishi Bank, Ltd................................. 314,000 2,021,940
Inax Corp............................................. 309,000 1,829,475
*Itochu Corp.......................................... 1,000,000 5,949,991
Itoham Foods, Inc..................................... 284,000 1,270,127
Japan Pulp and Paper Co., Ltd......................... 27,000 87,195
Joyo Bank, Ltd........................................ 45,000 207,418
Juroku Bank, Ltd...................................... 349,000 1,591,564
KDD Corporation....................................... 14,500 2,000,782
Kagoshima Bank, Ltd................................... 266,000 1,174,008
Kajima Corp........................................... 826,000 2,780,681
Kamigumi Co., Ltd..................................... 357,000 1,519,743
Kandenko Co., Ltd..................................... 266,000 1,400,479
Kansai Paint Co., Ltd., Osaka......................... 108,000 271,625
Katokichi Co., Ltd.................................... 72,000 1,807,310
*Kikkoman Corp........................................ 256,000 1,969,134
Kinden Corp........................................... 67,000 538,308
Kissei Pharmaceutical Co., Ltd........................ 40,000 670,157
Koa Fire & Marine Insurance Co., Ltd.................. 45,000 136,077
*Kobe Steel, Ltd...................................... 2,632,000 2,009,061
Koito Manufacturing Co., Ltd.......................... 146,000 685,815
Kokusai Securities Co., Ltd........................... 100,000 1,590,253
Komatsu, Ltd.......................................... 1,279,000 7,196,994
#Komori Corp.......................................... 74,000 1,451,974
Konica Corp........................................... 71,000 284,875
Koyo Seiko Co......................................... 198,000 1,937,662
Kureha Chemical Industry Co., Ltd..................... 263,000 710,358
Lion Corp............................................. 320,000 1,227,577
Makita Corp........................................... 209,000 1,902,138
*Marubeni Corp........................................ 1,942,000 7,544,882
Maruichi Steel Tube, Ltd.............................. 117,000 1,488,476
#Matsushita Electric Industrial Co., Ltd.............. 1,933,000 48,899,580
#Matsushita Electric Works, Ltd....................... 190,000 1,831,482
Michinoku Bank, Ltd................................... 187,000 1,125,458
Mitsubishi Chemical Corp.............................. 400,000 1,651,905
Mitsubishi Electric Corp.............................. 1,000,000 5,930,419
Mitsubishi Gas Chemical Co., Inc...................... 548,000 1,254,900
*Mitsubishi Materials Corp............................ 975,000 2,099,133
*#Mitsubishi Motors Corp.............................. 866,000 4,017,066
Mitsui Chemicals, Inc................................. 800 6,545
*Mitsui Engineering and Shipbuilding Co., Ltd......... 781,000 611,440
Mitsui Trust & Banking Co., Ltd....................... 1,030,000 3,175,123
#Mori Seiki Co., Ltd.................................. 121,000 1,657,777
Musashino Bank, Ltd................................... 26,000 1,208,592
*NKK Corp............................................. 2,612,000 2,070,479
NTN Corp.............................................. 398,000 1,382,688
Nanto Bank, Ltd....................................... 288,000 2,260,370
*National House Industrial Co., Ltd................... 95,000 669,374
Nichicon Corp......................................... 54,000 1,194,304
Nichirei Corp......................................... 366,000 1,020,795
Nifco, Inc............................................ 45,000 543,866
</TABLE>
10
<PAGE>
THE DFA INTERNATIONAL VALUE SERIES
CONTINUED
<TABLE>
<CAPTION>
SHARES VALUE+
------ ------
<S> <C> <C>
Nikko Securities Co., Ltd............................. 800,000 $ 9,942,748
*Nippon Credit Bank, Ltd.............................. 1,683,000 0
Nippon Mitsubishi Oil Company......................... 1,598,000 7,052,873
Nippon Sanso Corp..................................... 367,000 1,149,288
Nippon Sheet Glass Co., Ltd........................... 200,000 1,158,682
Nippon Shokubai Co., Ltd.............................. 163,000 749,718
#Nishimatsu Construction Co., Ltd..................... 359,000 1,612,575
#Nishi-Nippon Bank, Ltd............................... 23,540 100,900
Nissei Sangyo Co., Ltd................................ 110,050 1,626,222
Nisshin Flour Milling Co., Ltd........................ 96,000 702,725
Nisshin Steel Co., Ltd................................ 1,318,000 1,354,308
*Nisshinbo Industries, Inc............................ 305,000 1,540,147
*Nissho Iwai Corp..................................... 544,000 489,778
Obayashi Corp......................................... 520,000 2,666,535
Ogaki Kyoritsu Bank, Ltd.............................. 50,000 244,654
Oita Bank, Ltd........................................ 145,000 737,877
Oji Paper Co., Ltd.................................... 275,000 1,762,734
*Oki Electric Industry Co., Ltd....................... 400,000 2,372,167
Okumura Corp.......................................... 322,000 1,087,146
Pioneer Electronic.................................... 182,000 4,051,963
*#Q.P. Corp........................................... 168,000 1,175,515
#Ryosan Co., Ltd...................................... 53,000 1,296,667
Sakura Bank, Ltd...................................... 816,000 6,029,063
San In Godo Bank, Ltd................................. 222,000 1,640,260
Sanyo Electric........................................ 2,565,000 10,166,117
Seino Transportation Co., Ltd......................... 197,000 1,185,643
Sekisui Chemical Co., Ltd............................. 557,000 2,643,685
#Sekisui House, Ltd................................... 938,000 9,087,633
Sharp Corp. Osaka..................................... 200,000 4,080,833
#Shiga Bank, Ltd...................................... 272,000 1,330,919
Shimachu Co., Ltd..................................... 20,200 286,637
Shimadzu Corp......................................... 181,000 743,945
Shimizu Corp.......................................... 997,000 3,375,857
Shinwa Bank, Ltd...................................... 50,000 144,835
Shionogi & Co., Ltd................................... 455,000 5,387,775
Showa Shell Sekiyu KK................................. 75,000 427,900
Snow Brand Milk Products Co., Ltd..................... 419,000 1,701,668
#Stanley Electric Co., Ltd............................ 246,000 1,379,439
Sumitomo Corp......................................... 918,000 8,938,785
Sumitomo Forestry Co., Ltd............................ 136,000 971,571
*Sumitomo Metal Industries, Ltd. Osaka................ 1,481,000 1,420,345
*Sumitomo Metal Mining Co., Ltd....................... 313,000 713,696
#Sumitomo Realty & Development Co., Ltd............... 488,000 1,814,747
Sumitomo Trust & Banking Co., Ltd..................... 21,000 180,026
TEC Corp.............................................. 345,000 1,083,769
TOC Co., Ltd.......................................... 950 6,536
Taiheiyo Cement Corp.................................. 746,000 1,467,397
#Taisei Corp.......................................... 1,325,000 2,813,768
Takara Standard Co., Ltd.............................. 175,000 899,104
#Takashimaya Co., Ltd................................. 214,000 1,803,141
Tanabe Seiyaku Co., Ltd............................... 167,000 1,039,409
Teijin, Ltd........................................... 917,000 4,110,054
Teikoku Oil Co., Ltd.................................. 346,000 1,195,263
Toda Corp............................................. 418,000 1,587,160
Toho Bank, Ltd........................................ 240,000 1,087,439
Tokuyama Corp......................................... 248,000 944,091
Tokyo Style Co., Ltd.................................. 133,000 1,184,420
*Tokyo Tomin Bank, Ltd................................ 30,900 922,298
Tostem Corp........................................... 188,000 3,376,033
Toto, Ltd............................................. 247,000 1,510,740
<CAPTION>
SHARES VALUE+
------ ------
<S> <C> <C>
Toyo Seikan Kaisha, Ltd............................... 287,600 $ 5,150,539
Toyo Suisan Kaisha, Ltd............................... 116,000 896,805
#Toyo Trust & Banking Co., Ltd........................ 715,000 3,792,434
Toyobo Co., Ltd....................................... 468,000 677,829
Toyota Auto Body Co., Ltd............................. 86,000 683,388
#Toyota Tsusho Corp................................... 314,000 983,314
UNY Co., Ltd.......................................... 5,000 52,356
Victor Co. of Japan, Ltd.............................. 246,000 1,687,586
Wacoal Corp........................................... 149,000 1,328,365
Yamagata Bank, Ltd.................................... 153,700 782,150
#Yamaguchi Bank....................................... 133,000 1,145,373
Yamaha Corp........................................... 3,000 27,480
Yamatake-Honeywell Co., Ltd........................... 87,000 634,291
*Yasuda Trust & Banking Co., Ltd...................... 1,434,000 2,764,573
Yodogawa Steel Works, Ltd............................. 296,000 941,429
Yokogawa Electric Corp................................ 337,000 2,199,725
Yokohama Rubber Co., Ltd.............................. 404,000 937,006
--------------
TOTAL COMMON STOCKS
(Cost $490,065,450).................................. 467,032,699
--------------
INVESTMENT IN CURRENCY -- (0.0%)
*Japanese Yen
(Cost $740,472)..................................... 741,992
--------------
TOTAL -- JAPAN
(Cost $490,805,922).................................. 467,774,691
--------------
UNITED KINGDOM -- (17.5%)
COMMON STOCKS -- (17.5%)
Aggregate Industries P.L.C............................ 1,300,668 1,465,648
*Allied Domecq P.L.C. (New)........................... 146,994 781,372
Anglian Water P.L.C................................... 151,281 1,595,068
Antofagasta Holdings P.L.C............................ 38,000 255,104
Arjo Wiggins Appleton P.L.C........................... 814,500 2,477,771
Associated British Foods P.L.C........................ 766,096 3,816,078
Associated British Ports Holdings P.L.C............... 375,400 1,778,762
BAA P.L.C............................................. 1,083,993 7,656,968
BG P.L.C.............................................. 2,574,617 13,511,537
BOC Group P.L.C....................................... 143,513 2,955,469
BPB P.L.C............................................. 458,500 2,404,373
Barclays P.L.C........................................ 352,777 10,169,873
Barratt Developments P.L.C............................ 226,000 1,090,656
Bass P.L.C............................................ 682,070 7,680,427
Beazer Group P.L.C.................................... 239,257 558,263
Berkeley Group P.L.C.................................. 122,792 1,291,753
Blue Circle Industries P.L.C.......................... 338,731 1,940,852
Britannic P.L.C....................................... 181,600 3,065,903
British Airways P.L.C................................. 935,331 5,597,589
British Land Co. P.L.C................................ 502,381 3,620,666
British Vita P.L.C.................................... 216,100 831,206
Brixton Estate P.L.C.................................. 235,685 852,108
Burford Holdings P.L.C................................ 337,000 571,632
CGU P.L.C............................................. 1,226,541 18,558,479
Capital Shopping Centres P.L.C........................ 395,375 2,484,236
Caradon P.L.C......................................... 214,000 550,456
Carillion P.L.C....................................... 194,858 346,043
Chelsfield P.L.C...................................... 236,036 1,234,953
Chorion P.L.C......................................... 98,404 62,692
Cookson Group P.L.C................................... 598,560 2,357,115
*Corus Group P.L.C.................................... 2,724,027 5,531,696
Enterprise Oil P.L.C.................................. 354,000 2,537,187
Glynwed International P.L.C........................... 140,000 497,244
</TABLE>
11
<PAGE>
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CONTINUED
<TABLE>
<CAPTION>
SHARES VALUE+
------ ------
<S> <C> <C>
Great Portland Estates P.L.C.......................... 197,275 $ 596,984
Great Universal Stores P.L.C.......................... 814,600 5,455,658
Greenalls Group P.L.C................................. 255,461 1,196,213
Hammerson P.L.C....................................... 280,000 2,040,262
Hanson P.L.C.......................................... 400,000 3,335,135
Hilton Group P.L.C.................................... 1,251,117 4,015,223
Hyder P.L.C........................................... 90,415 616,341
Imperial Chemical Industries P.L.C.................... 300,000 3,058,003
Invensys P.L.C........................................ 379,594 1,765,383
Johnson Matthey P.L.C................................. 178,000 1,885,291
Lasmo P.L.C........................................... 936,935 1,850,410
Lex Service P.L.C..................................... 121,933 922,469
Lonmin P.L.C.......................................... 232,440 2,087,982
Marks & Spencer P.L.C................................. 158,500 634,898
Mersey Docks & Harbour Co. P.L.C...................... 53,050 374,728
Meyer International P.L.C............................. 102,281 608,446
Millennium and Copthorne Hotels P.L.C................. 219,300 1,336,001
National Westminster Bank P.L.C....................... 1,145,655 26,293,872
Norwich Union P.L.C................................... 871,000 6,155,924
Peel Holdings P.L.C................................... 45,400 415,777
Peninsular & Oriental Steam Navigation Co............. 68,000 997,482
Pilkington P.L.C...................................... 1,094,837 1,525,788
Pillar Property P.L.C................................. 21,250 108,304
Powergen P.L.C........................................ 443,177 3,808,074
RMC Group P.L.C....................................... 252,000 3,078,454
Rank Group P.L.C...................................... 793,530 2,474,012
Rexam P.L.C........................................... 402,813 1,599,099
Rio Tinto P.L.C....................................... 624,863 12,241,274
Rolls-Royce P.L.C..................................... 331,808 1,006,743
Royal & Sun Alliance Insurance Group P.L.C............ 1,446,370 8,880,563
Rugby Group P.L.C..................................... 549,000 1,112,671
Safeway P.L.C......................................... 1,069,564 3,142,967
Sainsbury (J.) P.L.C.................................. 1,547,284 7,627,240
Scottish & Newcastle P.L.C............................ 322,000 2,464,257
Severn Trent P.L.C.................................... 210,597 2,636,401
Shell Transport & Trading Co., P.L.C.................. 1,800,000 13,818,352
Signet Group P.L.C.................................... 803,000 773,762
Slough Estates P.L.C.................................. 399,400 2,220,088
Smith (David S.) Holdings P.L.C....................... 298,000 821,106
Somerfield P.L.C...................................... 165,142 227,515
South West Water P.L.C................................ 44,765 578,937
Tarmac P.L.C.......................................... 197,367 1,741,495
Tate & Lyle P.L.C..................................... 443,200 3,022,970
Taylor Woodrow P.L.C.................................. 396,277 949,887
Tesco P.L.C........................................... 4,395,931 11,867,446
Thames Water P.L.C.................................... 165,347 2,295,094
Thistle Hotels P.L.C.................................. 466,707 1,319,409
Trinity P.L.C......................................... 220,450 1,929,365
Unigate P.L.C......................................... 233,600 1,117,101
Unilever P.L.C........................................ 800,000 5,835,689
United Assurance Group P.L.C.......................... 335,000 1,947,486
United Biscuits Holdings P.L.C........................ 484,668 1,760,013
United Utilities P.L.C................................ 265,595 2,474,642
Whitbread P.L.C....................................... 483,242 4,629,531
Wilson Bowden P.L.C................................... 96,900 1,049,468
<CAPTION>
SHARES VALUE+
------ ------
<S> <C> <C>
Wimpey (George) P.L.C................................. 348,650 $ 696,899
Wolseley P.L.C........................................ 100,678 741,222
Yorkshire Water P.L.C................................. 161,510 874,611
--------------
TOTAL COMMON STOCKS
(Cost $245,539,711).................................. 290,169,596
--------------
INVESTMENT IN CURRENCY -- (0.0%)
*British Pound Sterling
(Cost $360)......................................... 356
--------------
TOTAL -- UNITED KINGDOM
(Cost $245,540,071).................................. 290,169,952
--------------
FRANCE -- (10.0%)
COMMON STOCKS -- (10.0%)
AGF (Assurances Generales de France SA)............... 82,914 4,558,283
Banque Nationale de Paris............................. 324,843 29,764,301
*Banque Nationale de Paris Certified Value Rights
07/15/02............................................ 58,864 252,488
Bongrain SA........................................... 1,653 524,281
Christian Dior SA..................................... 31,100 5,589,583
Colas SA.............................................. 5,070 994,438
Credit Commercial de France........................... 30,000 3,655,000
Eridania Beghin-Say SA................................ 18,900 2,112,348
Esso SA............................................... 8,476 640,078
*#Euro Disney SCA..................................... 758,586 695,068
Faurecia SA........................................... 6,750 375,506
Fonciere Lyonnaise SA................................. 2,168 279,197
Fromageries Bel la Vache qui Rit...................... 275 192,857
GTM Entrepose......................................... 21,077 1,995,944
Generale des Establissements Michelin SA Series B..... 59,300 2,376,395
Groupe Danone......................................... 42,500 9,855,159
Hachette Filipacchi Medias............................ 6,500 334,438
Imetal................................................ 11,000 1,417,697
LaFarge SA............................................ 76,032 7,169,436
Labinal SA............................................ 6,400 702,404
#Lyonnais des Eaux SA................................. 30,000 4,419,228
Pechiney SA Series A.................................. 55,475 3,214,574
Pernod-Ricard......................................... 38,900 2,216,904
Peugeot SA............................................ 37,150 7,275,439
#Rallye SA............................................ 17,220 1,213,702
*Remy Cointreau SA.................................... 27,400 551,774
Rhone-Poulenc SA Series A............................. 156,000 9,660,075
SEB SA................................................ 9,000 518,345
Saint-Gobain.......................................... 65,436 11,134,846
Silic (Societe Immobiliere de Location pour
l'Industrie et le Commerce)......................... 200 33,207
Societe Generale Paris................................ 70,432 15,176,254
Sophia SA............................................. 7,700 303,221
Thomson-CSF........................................... 87,203 2,529,621
*Total SA............................................. 224,612 29,875,635
Union Assurances Federales SA......................... 7,500 906,198
Usinor................................................ 167,800 2,568,126
--------------
TOTAL COMMON STOCKS
(Cost $99,988,048)................................... 165,082,050
--------------
</TABLE>
12
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CONTINUED
<TABLE>
<CAPTION>
SHARES VALUE+
------ ------
<S> <C> <C>
RIGHTS/WARRANTS -- (0.0%)
*AGF (Assurances Generales de France SA) Warrants
06/15/00............................................ 41,214 $ 145,242
*Fonciere Lyonnaise SA Warrants 07/30/02.............. 868 271
--------------
TOTAL RIGHTS/WARRANTS
(Cost $180,303)...................................... 145,513
--------------
TOTAL -- FRANCE
(Cost $100,168,351).................................. 165,227,563
--------------
GERMANY -- (9.6%)
COMMON STOCKS -- (9.6%)
AGIV AG fuer Industrie & Verkehrswesen................ 57,800 1,073,754
#BASF AG.............................................. 640,050 29,419,512
BHW Holding AG, Berlin................................ 167,300 2,947,914
*Bankgesellschaft Berlin AG........................... 233,550 3,644,957
Bayer AG.............................................. 168,100 7,083,436
Bayerische Vereinsbank AG............................. 290,000 17,987,031
Berliner Kraft & Licht Bewag AG....................... 177,600 2,011,760
Bilfinger & Berger Bau AG, Mannheim................... 46,500 856,811
Commerzbank AG........................................ 408,050 13,147,529
Continental AG........................................ 44,100 870,313
DBV Holding AG........................................ 44,000 2,259,455
Deutsche Bank AG...................................... 359,305 23,389,049
Deutsche Lufthansa AG................................. 305,250 6,731,015
Deutsche Pfandbrief und Hypothekenbank AG, Depfa...... 46,400 3,499,295
Dresdner Bank AG...................................... 331,200 15,340,126
Dyckerhoff AG......................................... 22,750 733,014
FPB Holding AG........................................ 5,789 932,619
Fresenius Medical Care AG............................. 37,600 3,070,361
GEA AG................................................ 11,799 356,408
#Heidelberger Zement AG, Heidelberg................... 27,170 2,051,784
Hochtief AG........................................... 91,150 3,482,966
*Holzmann (Philipp) AG................................ 1,860 48,318
Karstadt Quelle AG.................................... 70,000 2,382,295
Linde AG.............................................. 76,000 3,787,909
*#MAN AG.............................................. 140,000 4,257,119
Merck KGAA............................................ 58,000 1,751,984
PWA Papierwerke Waldhof-Aschaffenburg AG.............. 3,550 714,890
*Thyssen Krupp AG..................................... 108,750 2,797,699
Vereins & Westbank AG................................. 73,187 2,092,826
--------------
TOTAL -- GERMANY
(Cost $121,446,796).................................. 158,722,149
--------------
NETHERLANDS -- (7.1%)
COMMON STOCKS -- (7.1%)
ABN Amro Holding NV................................... 1,320,538 32,137,222
Asr Verzekeringsgroep NV.............................. 41,171 2,379,491
Buhrmann NV........................................... 80,524 1,265,637
DSM NV................................................ 124,392 4,258,456
Fortis (NL)........................................... 558,051 19,121,265
Ing Groep NV.......................................... 732,972 41,218,420
KLM (Koninklijke Luchtvaart Mij) NV................... 61,019 1,492,980
Koninklijke KPN NV.................................... 20,966 1,167,419
*Koninklijke Vopak NV................................. 38,986 1,026,505
<CAPTION>
SHARES VALUE+
------ ------
<S> <C> <C>
NV Holdingsmij de Telegraaf........................... 6,800 $ 132,144
*Philips Electronics NV............................... 101,200 12,314,249
Vendex NV (non-food).................................. 11,391 300,500
--------------
TOTAL -- NETHERLANDS
(Cost $58,429,322)................................... 116,814,288
--------------
SWITZERLAND -- (6.7%)
COMMON STOCKS -- (6.7%)
Ascom Holding AG, Bern................................ 1,410 3,000,132
Baloise-Holding, Basel................................ 26,676 21,412,836
Banque Cantonale Vaudois.............................. 5,795 1,784,893
Bobst SA, Prilly...................................... 513 596,556
Ciba Spezialitaetenchemie Holding AG.................. 2,100 151,803
Financiere Richemont AG............................... 8,973 20,022,975
Fischer (Georg) AG, Schaffhausen (Namen).............. 12,987 4,036,804
Helvetia Patria Holding, St. Gallen................... 4,830 3,734,348
Holderbank Financiere Glarus AG, Glarus............... 936 1,172,589
Intershop Holding AG, Zuerich......................... 5,400 3,211,053
Jelmoli Holding AG, Zuerich........................... 500 557,867
*#Oerlikon-Buehrle Holding AG, Zuerich................ 44,781 7,684,560
Pargesa Holding SA, Geneve............................ 1,935 3,101,585
Roche Holding AG, Basel............................... 892 14,886,478
Sairgroup, Zuerich.................................... 37,480 7,715,667
Schindler Holding AG, Hergiswil....................... 3,469 5,047,983
Sig Schweizerische Industrie-Gesellschaft Holding AG,
Neuhausen AM Rheinfall.............................. 8,066 4,431,311
Sika Finanz AG, Baar.................................. 1,280 411,948
*Sulzer AG, Winterthur................................ 8,280 5,157,824
United Bank of Switzerland............................ 7,000 1,914,035
--------------
TOTAL COMMON STOCKS
(Cost $83,540,662)................................... 110,033,247
--------------
INVESTMENT IN CURRENCY -- (0.0%)
*Swiss Francs
(Cost $195)......................................... 191
--------------
TOTAL -- SWITZERLAND
(Cost $83,540,857)................................... 110,033,438
--------------
ITALY -- (4.1%)
COMMON STOCKS -- (4.1%)
#Banca Commerciale Italiana SpA....................... 3,565,000 18,127,240
#Banca di Roma........................................ 7,168,500 9,599,767
Banca Toscana......................................... 607,000 2,163,579
*Beni Stabili SpA, Roma............................... 500,000 175,702
CIR SpA (Cie Industriale Riunite), Torino............. 885,000 2,129,717
Cartiere Burgo SpA.................................... 235,000 1,597,175
*Fabbrica Italiana Magneti Marelli SpA................ 350,000 1,180,575
Fiat SpA.............................................. 399,789 10,933,051
Ifil Finanziaria Partecipazioni SpA................... 510,187 3,955,496
#Italcementi Fabbriche Riunite Cemento SpA, Bergamo... 364,000 4,453,059
#Montedison SpA....................................... 2,836,600 4,341,327
#San Paolo-Imi SpA.................................... 500,000 6,242,700
</TABLE>
13
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CONTINUED
<TABLE>
<CAPTION>
SHARES VALUE+
------ ------
<S> <C> <C>
#Sirti SpA............................................ 25,000 $ 151,285
Toro Assicurazioni Cia Anonima d'Assicurazione di
Torino SpA.......................................... 168,350 1,879,860
--------------
TOTAL COMMON STOCKS
(Cost $46,599,116)................................... 66,930,533
--------------
RIGHTS/WARRANTS -- (0.0%)
*Finmeccanica SpA Warrants 06/30/00................... 2,406,375 107,821
--------------
TOTAL -- ITALY
(Cost $46,599,116)................................... 67,038,354
--------------
SPAIN -- (3.1%)
COMMON STOCKS -- (3.1%)
Aceralia Corporacion Siderurgica SA................... 22,500 263,477
Acerinox SA........................................... 154,740 4,759,865
Aumar (Autopistas del Mare Nostrum SA)................ 176,800 3,031,640
Autopistas Concesionaria Espanola SA.................. 453,789 4,646,818
Azucarera Ebro Agricolas SA........................... 111,600 1,794,527
Banco Pastor SA, La Coruna............................ 39,600 1,512,771
Cementos Portland SA.................................. 26,000 650,550
Cia Espanola de Petroleous SA......................... 449,382 4,524,769
Corporacion Mapfre Compania Internacional de
Reaseguros SA, Majadah Onda......................... 36,300 619,523
Cristaleria Espanola SA, Madrid....................... 40,544 1,694,164
ENDESA SA, Madrid..................................... 190,892 3,786,472
Grupo Dragados SA, Madrid............................. 456,567 4,183,374
Hidroelectrica del Cantabrico SA...................... 299,700 4,300,138
Iberdrola SA.......................................... 535,000 7,455,395
Metrovacesa SA........................................ 94,462 1,678,737
Union Electrica Fenosa SA............................. 230,000 3,876,717
Vallehermoso SA....................................... 240,000 1,783,398
--------------
TOTAL -- SPAIN
(Cost $46,334,105)................................... 50,562,335
--------------
AUSTRALIA -- (2.7%)
COMMON STOCKS -- (2.7%)
Amcor, Ltd............................................ 505,844 2,195,589
#Boral, Ltd........................................... 1,040,426 1,541,019
CSR, Ltd.............................................. 842,897 2,020,025
Colonial, Ltd......................................... 242,133 965,078
*GIO Australia Holdings, Ltd.......................... 161,533 251,575
Goodman Fielder, Ltd.................................. 329,786 295,592
MIM Holdings.......................................... 1,407,905 1,172,426
Mayne Nickless, Ltd................................... 92,828 241,938
News Corp., Ltd....................................... 1,169,358 10,116,878
Normandy Mining, Ltd.................................. 460,290 330,637
North, Ltd............................................ 420,283 825,546
Pacific Dunlop, Ltd................................... 756,467 1,014,643
*Pasminco, Ltd........................................ 292,385 278,796
Pioneer International, Ltd............................ 658,231 1,928,946
Quantas Airways, Ltd.................................. 906,085 2,378,811
Rio Tinto, Ltd........................................ 497,496 8,712,687
Santos, Ltd........................................... 157,503 420,513
#St. George Bank, Ltd................................. 120,080 731,269
Stockland Trust Group................................. 162,426 340,730
Suncorp-Metway Limited................................ 52,500 271,326
<CAPTION>
SHARES VALUE+
------ ------
<S> <C> <C>
WMC, Ltd.............................................. 844,189 $ 3,874,519
Westpac Banking Corp.................................. 715,661 4,815,475
--------------
TOTAL COMMON STOCKS
(Cost $40,727,467)................................... 44,724,018
--------------
INVESTMENT IN CURRENCY -- (0.0%)
*Australian Dollar
(Cost $12,183)...................................... 12,077
--------------
PREFERRED STOCKS -- (0.0%)
Village Roadshow, Ltd. 2.2% Class A
(Cost $126)......................................... 92 173
--------------
TOTAL -- AUSTRALIA
(Cost $40,739,776)................................... 44,736,268
--------------
SWEDEN -- (2.6%)
COMMON STOCKS -- (2.6%)
Assidomaen AB......................................... 213,850 3,597,272
*#Boliden, Ltd........................................ 57,213 154,793
Fastighets AB Balder.................................. 8,000 95,047
Gambro AB Series A.................................... 42,500 439,946
*Gambro AB Series B................................... 15,900 163,656
Invik and Co.......................................... 32 2,447
Invik and Co. AB Series B............................. 360 28,796
Kinnevik Industrifoervaltnings AB Series A............ 3,200 79,049
Kinnevik Industrifoervaltnings AB Series B............ 36,000 927,416
Mo Och Domsjoe AB Series A............................ 6,300 204,540
Mo Och Domsjoe AB Series B............................ 118,300 3,868,633
NCC AB Series A....................................... 45,400 469,966
NCC AB Series B....................................... 95,000 988,997
SSAB Swedish Steel Series A........................... 129,900 1,665,573
SSAB Swedish Steel Series B........................... 48,000 604,161
Skandinaviska Enskilda Banken Series A................ 100,000 952,825
Svedala Industri...................................... 28,700 481,088
Svenska Cellulosa AB Series A......................... 57,000 1,575,690
#Svenska Cellulosa AB Series B........................ 217,600 6,053,659
Svenska Handelsbanken Series A........................ 240,000 3,274,893
*Svenska Kullagerfabriken AB
Series A............................................ 68,400 1,460,362
Svenska Kullagerfabriken AB
Series B............................................ 89,700 1,999,538
Sydkraft AB Series C.................................. 6,600 117,233
Trelleborg AB Series B................................ 146,400 1,214,110
Volvo AB Series A..................................... 192,600 4,644,491
Volvo AB Series B..................................... 305,100 7,411,228
--------------
TOTAL COMMON STOCKS
(Cost $38,625,606)................................... 42,475,409
--------------
RIGHTS/WARRANTS -- (0.0%)
*Skandinaviska Enskilda Banken Series A Rights
12/14/99
(Cost $0)........................................... 100,000 108,222
--------------
INVESTMENT IN CURRENCY -- (0.0%)
*Swedish Krona
(Cost $4,023)....................................... 3,950
--------------
TOTAL -- SWEDEN
(Cost $38,629,629)................................... 42,587,581
--------------
</TABLE>
14
<PAGE>
THE DFA INTERNATIONAL VALUE SERIES
CONTINUED
<TABLE>
<CAPTION>
SHARES VALUE+
------ ------
<S> <C> <C>
HONG KONG -- (2.4%)
COMMON STOCKS -- (2.4%)
Amoy Properties, Ltd.................................. 4,570,500 $ 3,530,966
HKR International, Ltd................................ 1,077,384 690,148
Hang Lung Development Co., Ltd........................ 2,126,000 2,203,625
Hysan Development Co., Ltd............................ 1,683,822 2,005,471
Kerry Properties, Ltd................................. 1,261,000 1,501,881
New World Development Co., Ltd........................ 1,932,105 3,831,158
*Shangri-La Asia, Ltd................................. 2,982,000 3,494,038
*Sino Hotels (Holdings), Ltd.......................... 353,653 44,625
Sino Land Co., Ltd.................................... 4,915,200 2,341,647
Swire Pacific, Ltd. Series A.......................... 1,062,000 6,098,710
*Tsim Sha Tsui Properties, Ltd........................ 1,174,000 748,259
Wharf Holdings, Ltd................................... 3,776,914 9,580,361
#Wheelock and Co., Ltd................................ 3,243,000 3,298,774
--------------
TOTAL COMMON STOCKS
(Cost $53,728,027)................................... 39,369,663
--------------
INVESTMENT IN CURRENCY -- (0.0%)
*Hong Kong Dollars
(Cost $6,434)....................................... 6,440
--------------
TOTAL -- HONG KONG
(Cost $53,734,461)................................... 39,376,103
--------------
FINLAND -- (1.3%)
COMMON STOCKS -- (1.3%)
Asko Oyj.............................................. 20,000 318,176
#Enso Oy Series A..................................... 172,971 2,438,272
Enso Oy Series R...................................... 300,000 4,262,153
Kemira Oyj............................................ 229,200 1,333,900
Kesko Oyj............................................. 141,500 1,513,080
#Metra Oyj Series B................................... 43,200 725,539
#Metsa-Serla Oyj Series B............................. 337,500 3,330,279
*Metso Oyj............................................ 112,709 1,219,966
Outokumpu Oyj Series A................................ 301,300 3,412,970
Rautaruukki Oy Series K............................... 237,100 1,408,524
Upm-Kymmene Oyj....................................... 48,900 1,634,661
--------------
TOTAL -- FINLAND
(Cost $21,481,132)................................... 21,597,520
--------------
BELGIUM -- (1.3%)
COMMON STOCKS -- (1.3%)
Banque Bruxelles Lambert VVPR......................... 128 3
*Bekaert SA........................................... 34,000 1,727,114
Cimenteries CBR Cementsedrijoen....................... 11,500 1,175,289
Cofinimmo SA.......................................... 300 30,962
Credit Communal Holding Dexia Belgium................. 5,400 880,825
Electrafina SA........................................ 8,000 902,976
*Fortis AG............................................ 32,270 136,467
Fortis AG VVPR........................................ 290,430 2,924
Glaverbel SA.......................................... 14,812 1,312,433
Glaverbel SA VVPR..................................... 22 0
Groupe Bruxelles Lambert SA, Bruxelles................ 6,300 1,085,988
Nationale a Portefeuille.............................. 4,029 354,966
Sofina SA............................................. 10,500 396,568
Solvay SA............................................. 101,490 7,561,984
Suez Lyonnaise des Eaux............................... 19,080 2,806,786
*Suez Lyonnaise des Eaux SA VVPR...................... 19,080 192
<CAPTION>
SHARES VALUE+
------ ------
<S> <C> <C>
*Suez Lyonnaise ds Eaux CVG........................... 19,080 $ 230,537
Tessenderlo Chemie.................................... 14,400 643,763
Union Miniere SA...................................... 40,200 1,477,406
--------------
TOTAL -- BELGIUM
(Cost $19,005,474)................................... 20,727,183
--------------
DENMARK -- (1.0%)
COMMON STOCKS -- (1.0%)
Den Danske Bank A.S................................... 44,140 5,018,740
*Forsikringsselskabet Codan A.S. Issue 99............. 2,554 201,009
*Jyske Bank A.S....................................... 49,950 988,341
Kapital Holdings A.S.................................. 32,497 1,576,941
Tele Danmark A.S...................................... 60,000 3,865,817
Unidanmark A.S. Series A.............................. 72,884 5,524,632
--------------
TOTAL COMMON STOCKS
(Cost $13,665,852)................................... 17,175,480
--------------
INVESTMENT IN CURRENCY -- (0.0%)
*Danish Krone
(Cost $70).......................................... 68
--------------
TOTAL -- DENMARK
(Cost $13,665,922)................................... 17,175,548
--------------
SINGAPORE -- (0.7%)
COMMON STOCKS -- (0.7%)
Fraser & Neave, Ltd................................... 769,000 3,364,415
Keppel Corp., Ltd..................................... 1,379,000 3,660,960
Keppel Land, Ltd...................................... 600,000 971,440
Singapore Airlines, Ltd............................... 40,000 404,767
Singapore Land, Ltd................................... 1,048,000 2,470,315
--------------
TOTAL COMMON STOCKS
(Cost $13,906,783)................................... 10,871,897
--------------
INVESTMENT IN CURRENCY -- (0.0%)
*Singapore Dollars
(Cost $2,101)....................................... 2,086
--------------
TOTAL -- SINGAPORE
(Cost $13,908,884)................................... 10,873,983
--------------
NORWAY -- (0.5%)
COMMON STOCKS -- (0.5%)
#Bergesen Dy ASA Series A............................. 105,892 1,563,121
Den Norske Bank ASA Series A.......................... 589,194 2,382,640
*Kvaerner ASA......................................... 59,851 1,128,489
Norsk Hydro ASA....................................... 31,700 1,238,661
Norske Skogindustrier ASA Series A.................... 52,781 2,337,375
--------------
TOTAL COMMON STOCKS
(Cost $10,772,768)................................... 8,650,286
--------------
INVESTMENT IN CURRENCY -- (0.0%)
*Norwegian Krone
(Cost $181)......................................... 174
--------------
TOTAL -- NORWAY
(Cost $10,772,949)................................... 8,650,460
--------------
PORTUGAL -- (0.4%)
COMMON STOCKS -- (0.4%)
Banco Espirito Santo e Comercial de Lisboa............ 41,192 1,028,597
</TABLE>
15
<PAGE>
THE DFA INTERNATIONAL VALUE SERIES
CONTINUED
<TABLE>
<CAPTION>
SHARES VALUE+
------ ------
<S> <C> <C>
Cimpor Cimentos de Portugal SA........................ 85,253 $ 1,334,814
Portugal Telecom SA................................... 476,140 4,578,454
--------------
TOTAL -- PORTUGAL
(Cost $6,729,243).................................... 6,941,865
--------------
IRELAND -- (0.2%)
COMMON STOCKS -- (0.2%)
Independent Newspapers P.L.C.......................... 245,186 1,283,748
Irish Permanent P.L.C................................. 37,534 374,146
Jefferson Smurfit Group P.L.C......................... 877,165 2,384,656
--------------
TOTAL -- IRELAND
(Cost $3,512,365).................................... 4,042,550
--------------
AUSTRIA -- (0.2%)
COMMON STOCKS -- (0.2%)
Bank Austria AG....................................... 47,110 2,490,783
Voest-Alpine Stahl AG................................. 13,596 457,645
--------------
TOTAL -- AUSTRIA
(Cost $2,738,771).................................... 2,948,428
--------------
NEW ZEALAND -- (0.2%)
COMMON STOCKS -- (0.2%)
Carter Holt Harvey, Ltd............................... 1,509,500 1,831,153
*Lion Nathan, Ltd..................................... 476,400 1,056,272
--------------
TOTAL COMMON STOCKS
(Cost $3,178,163).................................... 2,887,425
--------------
INVESTMENT IN CURRENCY -- (0.0%)
*New Zealand Dollar
(Cost $72).......................................... 71
--------------
TOTAL -- NEW ZEALAND
(Cost $3,178,235).................................... 2,887,496
--------------
<CAPTION>
SHARES VALUE+
------ ------
<S> <C> <C>
EMU -- (0.0%)
INVESTMENT IN CURRENCY -- (0.0%)
*Euro Currency (Cost $476,119)........................ $ 465,213
--------------
MALAYSIA -- (0.0%)
COMMON STOCKS -- (0.0%)
*Rekapacific Berhad
(Cost $1,085,453)................................... 691,000 83,647
--------------
</TABLE>
<TABLE>
<CAPTION>
FACE
AMOUNT
------
(000)
<S> <C> <C>
TEMPORARY CASH
INVESTMENTS -- (0.2%)
Repurchase Agreement, PNC Capital Markets Inc. 5.30%,
12/01/99 (Collateralized by U.S. Treasury Notes
4.50%, 01/31/01, valued at $3,495,625) to be
repurchased at $3,437,506.
(Cost $3,437,000)................................... $ 3,437 3,437,000
--------------
TOTAL INVESTMENTS -- (100.0%)
(Cost $1,425,959,953)++.............................. $1,652,873,615
==============
</TABLE>
<TABLE>
<C> <S>
- --------------------------------------------------------------------------------
+ See Note B to Financial Statements.
* Non-Income Producing Securities
# Total or Partial Securities on Loan
++ The cost for federal income tax purposes is $1,426,309,289.
</TABLE>
See accompanying Notes to Financial Statements.
16
<PAGE>
THE DFA INVESTMENT TRUST COMPANY
THE DFA INTERNATIONAL VALUE SERIES
STATEMENT OF ASSETS AND LIABILITIES
NOVEMBER 30, 1999
(AMOUNTS IN THOUSANDS, EXCEPT SHARE AMOUNTS)
<TABLE>
<S> <C>
ASSETS:
Investments at Value........................................ $ 1,652,874
Collateral for Securities Loaned............................ 126,556
Receivables
Dividends, Interest and Tax Reclaims...................... 5,660
Investment Securities Sold................................ 4,068
Fund Shares Sold.......................................... 1,477
Prepaid Expenses and Other Assets........................... 91
------------
Total Assets............................................ 1,790,726
------------
LIABILITIES:
Payable for Collateral on Securities Loaned................. 126,556
Payable for Securities Purchased............................ 1,592
Payable for Fund Shares Redeemed............................ 1,731
Accrued Expenses and Other Liabilities...................... 470
------------
Total Liabilities....................................... 130,349
------------
NET ASSETS.................................................. $ 1,660,377
============
SHARES OUTSTANDING $.01 PAR VALUE
(Unlimited Number of Shares Authorized)................... 125,974,987
============
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE.... $ 13.18
============
Investments at Cost......................................... $ 1,425,960
============
COMPONENTS OF NET ASSETS:
Paid-In Capital............................................. 1,333,432
Undistributed Net Investment Gain........................... 2,072
Undistributed Net Realized Gain............................. 98,528
Accumulated Net Realized Foreign Exchange Loss.............. (341)
Unrealized Appreciation of Investment Securities and Foreign
Currency.................................................. 226,914
Unrealized Net Foreign Exchange Loss........................ (228)
------------
Total Net Assets............................................ $ 1,660,377
============
</TABLE>
See accompanying Notes to Financial Statements.
17
<PAGE>
THE DFA INVESTMENT TRUST COMPANY
THE DFA INTERNATIONAL VALUE SERIES
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED NOVEMBER 30, 1999
(AMOUNTS IN THOUSANDS)
<TABLE>
<S> <C>
INVESTMENT INCOME
Dividends (Net of Foreign Taxes Withheld of $3,879)....... $ 40,657
Interest.................................................. 781
Income from Securities Lending............................ 1,324
--------
Total Investment Income............................... 42,762
--------
EXPENSES
Investment Advisory Services.............................. 3,481
Accounting & Transfer Agent Fees.......................... 839
Custodian's Fee........................................... 465
Legal Fees................................................ 34
Audit Fees................................................ 29
Shareholders' Reports..................................... 42
Trustees' Fees and Expenses............................... 7
Other..................................................... 114
--------
Total Expenses........................................ 5,011
--------
NET INVESTMENT INCOME..................................... 37,751
--------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND
FOREIGN CURRENCY
Net Realized Gain on Investment Securities................ 100,874
Net Realized Loss on Foreign Currency Transactions........ (341)
Change in Unrealized Appreciation (Depreciation) of:
Investment Securities and Foreign Currency............ 81,414
Translation of Foreign Currency Denominated Amounts... (368)
--------
NET GAIN ON INVESTMENT SECURITIES AND FOREIGN CURRENCY.... 181,579
--------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........ $219,330
========
</TABLE>
See accompanying Notes to Financial Statements.
18
<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,
1999 1998
----------- -----------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net Investment Income..................................... $ 37,751 $ 32,873
Net Realized Gain on Investment Securities................ 100,874 11,162
Net Realized Gain (Loss) on Foreign Currency
Transactions............................................ (341) 895
Change in Unrealized Appreciation (Depreciation) of:
Investment Securities and Foreign Currency.............. 81,414 151,571
Translation of Foreign Currency Denominated Amounts..... (368) 158
---------- ----------
Net Increase in Net Assets Resulting from
Operations.......................................... 219,330 196,659
---------- ----------
Distributions From:
Net Investment Income..................................... (42,454) (39,352)
Net Realized Gains........................................ (3,807) (4,181)
---------- ----------
Total Distributions................................... (46,261) (43,533)
---------- ----------
Capital Share Transactions (1):
Shares Issued............................................. 145,300 161,527
Shares Issued in Lieu of Cash Distributions............... 46,261 43,533
Shares Redeemed........................................... (424,502) (220,023)
---------- ----------
Net Decrease From Capital Share Transactions.......... (232,941) (14,963)
---------- ----------
Total Increase (Decrease)............................. (59,872) 138,163
NET ASSETS
Beginning of Period....................................... 1,720,249 1,582,086
---------- ----------
End of Period............................................. $1,660,377 $1,720,249
========== ==========
(1) SHARES ISSUED AND REDEEMED:
Shares Issued............................................ 11,508 13,637
Shares Issued in Lieu of Cash Distributions.............. 3,655 3,743
Shares Redeemed.......................................... (33,103) (18,668)
---------- ----------
(17,940) (1,288)
========== ==========
</TABLE>
See accompanying Notes to Financial Statements.
19
<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,
1999 1998 1997 1996 1995
----------- ----------- ----------- ----------- ---------
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period..... $ 11.95 $ 10.90 $ 11.79 $ 10.55 $ 10.06
---------- ---------- ---------- ---------- --------
INCOME FROM INVESTMENT OPERATIONS
Net Investment Income.................. 0.28 0.22 0.24 0.23 0.20
Net Gains (Losses) on Securities
(Realized and Unrealized)............ 1.29 1.13 (0.67) 1.32 0.52
---------- ---------- ---------- ---------- --------
Total from Investment Operations..... 1.57 1.35 (0.43) 1.55 0.72
---------- ---------- ---------- ---------- --------
LESS DISTRIBUTIONS
Net Investment Income.................. (0.31) (0.27) (0.22) (0.23) (0.21)
Net Realized Gains..................... (0.03) (0.03) (0.24) (0.08) (0.02)
---------- ---------- ---------- ---------- --------
Total Distributions.................. (0.34) (0.30) (0.46) (0.31) (0.23)
---------- ---------- ---------- ---------- --------
Net Asset Value, End of Period........... $ 13.18 $ 11.95 $ 10.90 $ 11.79 $ 10.55
========== ========== ========== ========== ========
Total Return............................. 13.27% 12.50% (3.84)% 14.85% 7.20%
Net Assets, End of Period (thousands).... $1,660,377 $1,720,249 $1,582,086 $1,356,852 $609,386
Ratio of Expenses to Average Net
Assets................................. 0.29% 0.29% 0.32% 0.36% 0.42%
Ratio of Net Investment Income to Average
Net Assets............................. 2.17% 1.90% 2.09% 2.23% 2.14%
Portfolio Turnover Rate.................. 5.80% 15.41% 22.55% 12.23% 9.75%
</TABLE>
See accompanying Notes to Financial Statements.
20
<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 consists of twenty-one 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 the 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, and 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. Exchange gains or losses are realized upon ultimate receipt or
disbursement.
3. FEDERAL INCOME TAXES: It is the Series' intention to continue to
qualify as a regulated investment company and distribute all of its taxable
income. Accordingly, no provision for Federal taxes is required in the financial
statements.
4. REPURCHASE AGREEMENTS: The Series may purchase money market instruments
subject to the seller's agreement to repurchase them at an agreed upon date and
price. The seller will be required on a daily basis to maintain the value of the
collateral subject to the agreement at not less than the repurchase price
(including accrued interest). The agreements are conditioned upon the collateral
being deposited under the Federal Reserve book-entry system or with the Trust's
custodian or a third party sub-custodian. All open repurchase agreements were
entered into on November 30, 1999.
5. FOREIGN MARKET RISKS: Investments in foreign markets may involve
certain considerations and risks not typically associated with investments in
the United States, including the possibility of future political and economic
developments and the level of foreign government supervision and regulation of
foreign securities markets. These markets are generally smaller, less liquid and
more volatile than the major securities markets in the United States.
Consequently, acquisition and disposition of securities by the Fund may be
inhibited.
6. OTHER: Security transactions are accounted for on the date the
securities are purchased or sold. Costs used in determining realized gains and
losses on the sale of investment securities are those of specific securities
sold. Dividend income and distributions to shareholders are recorded on the
ex-dividend date. The components of net assets may be adjusted for current
period permanent book/tax differences which arose principally from differing
book/tax treatments of foreign currency and foreign taxes on capital gains.
Interest income is recorded on the accrual
21
<PAGE>
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.
The Funds may be subject to taxes imposed by countries in which they invest,
with respect to their investments in issuers existing or operating in such
countries. Such taxes are generally based on income earned or repatriated and
capital gains realized on the sale of such investments. The Funds accrue such
taxes when the related income or capital gains are earned. Some countries
require governmental approval for the repatriation of investment income, capital
or the proceeds of sales of foreign investors. In addition, if there is a
deterioration in a country's balance of payments or for other reasons, a country
may impose temporary restrictions on foreign capital remittances abroad.
C. INVESTMENT ADVISOR:
Dimensional Fund Advisors Inc. ("DFA" or the "Advisor") provides investment
advisory services to the Series. For the year ended November 30, 1999, the
Series' advisory fees were computed daily and paid monthly to the Advisor based
on an effective annual rate of 0.20 of 1% of average daily net assets.
Certain officers of the Series are also officers, directors and shareholders
of the Advisor.
D. PURCHASES AND SALES OF SECURITIES:
For the year ended November 30, 1999, the Series made the following
purchases and sales of investment securities other than U.S. Government
Securities (amounts in thousands):
<TABLE>
<S> <C>
Purchases.................................................. $ 98,879
Sales...................................................... 349,360
</TABLE>
E. INVESTMENT TRANSACTIONS:
At November 30, 1999, gross unrealized appreciation and depreciation for
federal income tax purposes of investment securities and foreign currencies was
as follows (amounts in thousands):
<TABLE>
<S> <C>
Gross Unrealized Appreciation............................. $ 413,380
Gross Unrealized Depreciation............................. (186,816)
---------
Net................................................... $ 226,564
=========
</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, 1999.
G. SECURITIES LENDING:
Loans of international securities are required at all times to be secured by
collateral at least equal to 105% of the market value of the securities on loan.
However, in the event of default or bankruptcy by the other party to the
agreement, realization and/or retention of the collateral may be subject to
legal proceedings. In the event that the borrower fails to return loaned
securities, and cash collateral being maintained by the borrower is insufficient
to cover the value of loaned securities and provided such collateral
insufficiency is not the result of investment losses, the lending agent has
agreed to pay the amount of the shortfall to the Series or, at the option of the
lending agent, replace the loaned securities. Such cash collateral for November
30, 1999 was reinvested into overnight repurchase
22
<PAGE>
agreements with Fuji Securities, which was in turn collateralized by U.S.
Government Treasury Securities. At November 30, 1999, the market value of
securities on loan to brokers was $119,398,258, the related collateral cash
received was $126,555,611 and the value of collateral on overnight repurchase
agreements was $154,412,408.
F. MALAYSIA
During the year ended November 30, 1999 the Series repatriated funds from
Malaysia. In accordance with the Malaysian government's repatriation tax regime,
the Series paid repatriation taxes based on the market value at August 31, 1998
of securities sold as follows: a 30% tax on repatriations between September 1,
1998 and April 1, 1999, a 20% tax on repatriations between April 1, 1999 and
June 1, 1999 and a 10% tax on repatriations between June 1, 1999 and
September 1, 1999. Realized gains and losses on the sale of Malaysian securities
have been recorded net of applicable repatriation taxes for financial statement
purposes.
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, 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 International Value Series
(constituting a portfolio within The DFA Investment Trust Company, hereafter
referred to as the "Fund") at November 30, 1999, and the results of its
operations, the 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, 1999 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 14, 2000
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