<PAGE>
World
Equity
Benchmark
Shares
[GRAPHIC OMITTED]
WEBS
AUGUST 31,
1999
ANNUAL REPORT
WEBS INDEX FUND, INC.
<PAGE>
WEBS INDEX FUND, INC.
================================================================================
Dear Shareholder:
We are pleased to present the Annual Report for WEBS Index Fund, Inc.
covering the year ended August 31, 1999. The report provides a review of the
performance of your investment, a management's discussion and analysis for each
WEBS Index Series from the Fund's adviser, Barclays Global Fund Advisors, and
important financial information.
As you know, each of the WEBS Index Series seeks generally to track the
investment performance of a Morgan Stanley Capital International (MSCI) index.
These indices provide broad-based exposure to a particular country's stock
market or to the stock markets of a given region. You will find information
about performance and tracking for each WEBS Index Series in the Investment
Advisor's discussion.
GROWTH ACTIVITY
As more and more investors discover their benefits, WEBS continue to grow
in asset size. As of August 31, 1999, net assets of the seventeen WEBS Index
Series stand at almost $1.6 billion, more than double their asset level of a
year ago. Because the value of total net assets fluctuates with the respective
foreign equity markets, however, we believe that the number of outstanding
shares offers a better indicator of WEBS' attractiveness. Share growth has also
been impressive: as of August 31, 1999, total outstanding shares number 124.5
million, up 42% over a year ago. This trend offers evidence of WEBS' growing
acceptance among investors as a way to access any of seventeen foreign equity
markets.
INTERNATIONAL PERFORMANCE
In many international equity markets, the past year was marked by
significant recovery, especially in Asia as investors reacted to signs of
government reform, corporate restructuring and improving economic outlooks in
many countries. At the same time, sluggish economic activity, a weakened Euro
and the Balkan war contributed to less positive performance in Europe. Against
this backdrop, all but two of the seventeen WEBS Index Series - Belgium at
(1.00%) and Austria at (8.69%) - produced positive returns, and eight posted
returns of more than 25% for the year ended August 31, 1999. Reflecting the
increases in their respective markets, notable examples included Singapore
(Free) +144.52%, Hong Kong +90.51% and Japan +58.14%. Mexico also posted an
impressive +66.92% return, propelled by economic reform and increased foreign
investment as well as the strong U.S. economy. While past performance does not
indicate future results, returns such as these illustrate the potential benefits
of diversifying internationally with WEBS.
SPECIAL NOTE WITH RESPECT TO MALAYSIA
On September 1, 1998, the Malaysian government imposed capital
restrictions that prompted the Fund to suspend sales and discourage redemptions
of Creation Units of the Malaysia (Free) Series. Since the capital restrictions
were imposed, the Fund applied for and received regulatory relief from Bank
Negara Malaysia, the Malaysian Central Bank. This relief permits the Fund to
honor requests, in proper form, for the redemption of Creation Units of the
Malaysia (Free) Series only through the delivery of Malaysian ringgits to a
redeeming investor's account at a duly licensed Malaysian institution. WEBS of
the Malaysia (Free) Series have frequently traded at significantly different
prices than their net asset values because of the disruption to the
creation/redemption mechanism. The Fund is continuing its efforts to resume "in
kind" creations and redemptions for the Malaysia (Free) Series, but there can be
no assurance that the required Malaysian approvals will be granted. The Fund is
also reviewing the possibility of offering Creation Units of WEBS of the
Malaysia (Free) Series for cash.
To review details of a supplement to the Prospectus dated February 17,
1999 as well as press releases on this topic, refer to the "What's New" section
of the Fund's website at www.websontheweb.com. Alternatively, you can speak to a
Fund representative at 1-800-810-9327.
CONCLUSION
WEBS have seen another growth year because investors like you have
recognized that they offer an efficient way to participate in the investment
opportunities available in a number of overseas markets. As always, we thank you
for your support of WEBS Index Fund, Inc. and hope you will continue to use the
various WEBS Index Series in your portfolio.
Sincerely,
/s/ Nathan Most
Nathan Most
Chairman and President
WEBS Index Fund, Inc.
1
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Introduction
Barclays Global Fund Advisors is the Investment Advisor for the WEBS Index
Series. Each WEBS Index Series holds a representative sample of the underlying
securities in a corresponding MSCI Index (using the analytic technique known as
"portfolio sampling" discussed below), as opposed to full replication of the
corresponding MSCI Index. In addition, certain WEBS Index Series may invest to a
limited extent in securities that are not in the relevant benchmark index.
Key market conditions
Although the key market conditions summaries for each WEBS Index Series
address certain specific issues affecting economic performance in the various
national markets, there are some broad world-wide events affecting performance
that should be considered at the outset. A year ago, following the near collapse
of a major US hedge fund, investors expected the world economy to plunge into
recession in 1999. A year later, fears of recession have been replaced by
concerns over rising inflation and higher interest rates. Activity in
continental Europe, Japan and the former tiger economies of South-east Asia is
recovering, and the US continues to defy those predicting a slowdown. A pick-up
in global activity usually heralds a rise in commodity prices, and this upturn
is no different. The price of oil has more than doubled from $10 since the start
of the year, and metals prices have risen sharply too. The expectation that this
rise in commodity prices will feed through into higher inflation has put
investors and central banks on alert.
Performance factors
When examining the performance review numbers of each WEBS Index Series,
remember that expenses are incurred by the WEBS Index Series, and that such
expenses impact performance. Expenses affect every WEBS Index Series. This is in
contrast to the corresponding MSCI Indices that do not bear any expenses. The
performance of each WEBS Index Series may also vary positively or negatively
from that of its corresponding MSCI Index during any period due to the impact of
portfolio sampling, revenue differential, and uninvested assets.
Portfolio sampling is a highly disciplined approach to creating a
portfolio. Its goal is to capture index returns through investment in a subset
of the stocks in an index. The portfolios are designed to reflect accurately the
market's size and industry profiles. No attempt is made to actively manage the
WEBS Index Series using economic or market analysis or to hedge foreign exchange
risk. Because of portfolio sampling, the composition of each WEBS Index Series
varies from that of its benchmark index. This will normally cause a WEBS Index
Series' performance to vary positively or negatively from that of its benchmark
during any period.
A number of regulatory constraints adversely impact the Investment
Advisor's ability to "optimize" the portfolios of certain WEBS Index Series
through the use of portfolio sampling. The principal regulatory constraints that
affect Fund performance are Internal Revenue Code requirements referred to as
the Single Issuer Rule and the 5/50 Rule in this discussion.
The Single Issuer Rule, which is a quarterly test, generally requires that
no issuer in a portfolio can have a weight of greater than 25%. This constraint
applies to all share classes of an issuer. In Mexico, for example, Telefonos de
Mexico has two share classes (A and L shares) which have a collective weighting
in the MSCI Mexico Index of 31.30%. As a result of the Single Issuer Rule, the
portfolio cannot hold any combination of the two share classes above 25%.
The 5/50 Rule, which is also a quarterly test, generally prohibits a WEBS
Index Series, with respect to 50% of the value of its total assets, from having
more than 5% of the value of its total assets invested in the securities of any
one issuer. If a security has more than one share class, then all of the share
classes must be considered as one security for 5/50 Rule purposes. Many of the
benchmark MSCI indices have a greater than 50% weighting of securities that
account for more than 5% of the respective index. For example, the sum of all of
the stocks with weightings of 5% or greater in the MSCI Switzerland Index was
89% on August 31, 1999. In such situations, a WEBS Index Series must be
underweight in some stocks relative to the benchmark, and therefore overweight
in others, in order to comply with the Rule.
2
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WEBS INDEX FUND, INC.
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The revenues of a WEBS Index Series differ from those of its benchmark
index. There are several reasons for this "revenue differential." The dividend
revenues received by the WEBS Index Series differ from those of the benchmark
MSCI indices in both amount (principally as a result of the portfolio sampling
techniques described above) and timing. The WEBS Index Series record dividend
revenues on the "ex" dates of the underlying stocks while the MSCI Indices
assume the monthly dividend revenue is equal to 1/12th of the previous 12 months
dividends. In addition, unlike the MSCI indices, the WEBS Index Series receive
interest on uninvested cash and, in the case of most WEBS Index Series, revenues
from the lending of portfolio securities.
With respect to revenue differential in Hong Kong and Singapore in this
period, the substantial returns in these markets resulted in a corresponding
decrease in dividend yields on the stock held by the Series. MSCI, however, uses
a 12-month rolling cycle to calculate the yield of the benchmark index, and as a
result the benchmark index's return reflected yields that were not attainable by
the index stocks in the 12-month period (since they reflected yields based on
much lower stock prices).
Finally, uninvested assets held in a WEBS Index Series affects performance
relative to the MSCI benchmark indices. Cash and deferred organizational
expenses are the principal "unequitized" assets of the WEBS Index Series. In
contrast, the MSCI Indices assume a 100% investment in the underlying stocks and
thus do not reflect any "unequitized" assets. The effect of uninvested assets
(referred to herein as "cash drag") will tend to cause each WEBS Index Series to
outperform its benchmark in falling markets and underperform the benchmark in
rising markets.
3
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PERFORMANCE REVIEW WEBS INDEX FUND, INC.
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Australia
- ---------
Performance Review
The total return of the Australia WEBS Index Series (the "Australia
Series") was 32.09% for the year ended August 31, 1999, while the corresponding
MSCI Index returned 31.50% over the same time period.
Significant Performance Factors
The Australia Series outperformed the benchmark by 0.59% during this
period as a result of the positive impact of portfolio sampling 1.78%, and
revenue differential, 0.36%, which more than offset the effects of expenses,
(1.00%), and cash drag, (0.55%). In particular, the portfolio was overweighted
in several of the stronger performing sectors including metals, which returned
70.69%.
Key Market Conditions
Boosted by improving economic prospects combined with a favorable
inflationary environment, the Australian stock market climbed upward for seven
consecutive months beginning in mid-October, 1998. The brakes were put on the
economy in May and again in July-August as concerns over rising interest rates,
extended valuations and unsustainable consumer demand (in the form of a rising
current account deficit) came to the forefront. Weakness in the US and Japanese
markets also slowed market appreciation.
Despite the increased market volatility at the end of the reporting
period, the Australian economy continued to demonstrate resilience. Second
quarter 1999 economic growth figures indicated an annualized growth rate of
4.1%. This represents nine consecutive quarters of growth exceeding 4% -- the
longest sustained period of GDP growth above 4% since the early 1970s. On the
other hand, the robust domestic economy coupled with weak foreign demand and
falling commodity prices fueled a record current account deficit in the second
quarter. However, financial markets focused on the positives as the prospects
for stronger global growth are expected to improve the export outlook.
Meanwhile, consumer wealth levels remained high and together with an improving
job market fueled spending on services and housing, the strongest areas of the
economy.
The resource sector was the most notable market performer, finally seeming
to overcome its three-year slump. Rising base metal prices, which have been
boosted by rejuvenated Asian demand, have driven much of the outperformance.
Share prices were also supported by the recent renewal of merger and takeover
activity.
Comparison of Change in Value of a $10,000 Investment in the
Australia WEBS Index Series vs. the MSCI Australia Index
[GRAPHIC OMITTED]
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
Australia WEBS Index MSCI Index
03/12/96 10,000 10,000
08/31/96 10,388 10,383
02/28/97 11,048 11,054
08/31/97 11,035 10,990
02/28/98 10,799 10,880
08/31/98 8,486 8,724
02/28/99 10,607 10,994
08/31/99 11,208 11,471
Past performance is not predictive of future performance
Value
August 31, 1999
---------------
Australia WEBS Index Series $11,208*
MSCI Australia Index $11,471
Average Annual Total Return
One Since
Year Inception
---------- ---------
Australia WEBS Index Series 32.09% 3.34%
MSCI Australia Index 31.50% 4.03%
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* The chart assumes a hypothetical $10,000 initial investment in the Australia
WEBS Index Series and reflects all expenses of the Index Series. Investors
should note that the Index Series is professionally managed while the relevant
MSCI Index is unmanaged, does not incur expenses and is not available for
investment.
4
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PERFORMANCE REVIEW WEBS INDEX FUND, INC.
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Austria
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Performance Review
The total return of the Austria WEBS Index Series (the "Austria Series")
was (8.69%) for the year ended August 31, 1999, while the corresponding MSCI
Index declined by 8.02% over the same time period.
Significant Performance Factors
The Austria Series underperformed the benchmark by .67% during this period
primarily as a result of expenses. The impact of expenses, (1.32%), was somewhat
mitigated by a revenue differential benefit of 1.00%. Revenue differential was
caused by misweights in the portfolio that arose as a result of regulatory
constraints. (The sum of all the weightings of 5% or greater in the MSCI Austria
Index at August 31, 1999 was 67.90%). More specifically, the Series'
overweighted positions in higher yielding securities led to its dividend revenue
outperforming that of the benchmark. Portfolio sampling and cash drag
contributed to the Austria Series' underperformance to a modest extent.
Key Market Conditions
Austria enjoys a relatively sound underlying economy. The shares of most
companies trade at low multiples and the government has undertaken an impressive
privatization program. And yet, the stock market's struggles are notable. It
just can't seem to shake its track record. For the past seven and a half years,
Austria's stock market has underperformed other European markets, climbing a
mere 19% (as measured by the Wiener Bourse Index) compared to 225% for the
Eurostoxx Index. The past 12 months were no exception.
One consideration in understanding Austria's recent poor performance is
the country's exposure to the economic slowdown in central and eastern Europe --
close to 15% of Austrian goods are exported to that region. Germany, Austria's
largest trading partner has also experienced sluggish growth. Against this
backdrop, Austria's economic growth in 1999 has been down somewhat from last
year's healthy pace of 3.3%. Growth this year is estimated at around 2.2%, a
figure in line with the European GDP average.
Comparison of Change in Value of a $10,000 Investment in the
Austria Webs Index Series vs. the MSCI Austria Index
[GRAPHIC OMITTED]
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
Austria WEBS MSCI
03/12/96 10,000 10,000
08/31/96 9,661 10,073
02/28/97 9,401 9,848
08/31/97 9,764 9,928
02/28/98 10,535 11,513
08/31/98 9,975 10,770
02/28/99 9,403 10,353
08/31/99 9,108 9,906
Past performance is not predictive of future performance
Value
August 31, 1999
---------------
Austria WEBS Index Series $9,108*
MSCI Austria Index $9,906
Average Annual Total Return
One Since
Year Inception
---------- ---------
Austria WEBS Index Series (8.69)% (2.65)%
MSCI Austria Index (8.02)% (0.27)%
- ----------
* The chart assumes a hypothetical $10,000 initial investment in the Austria
WEBS Index Series and reflects all expenses of the Index Series. Investors
should note that the Index Series is professionally managed while the relevant
MSCI Index is unmanaged, does not incur expenses and is not available for
investment.
5
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PERFORMANCE REVIEW WEBS INDEX FUND, INC.
================================================================================
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Belgium
- -------
Performance Review
The total return of the Belgium WEBS Index Series (the "Belgium Series")
was (1.00%) for the year ended August 31, 1999, while the corresponding MSCI
Index returned 3.12% over the same time period.
Significant Performance Factors
The Belgium Series underperformed the benchmark by 4.12% during this
period as a result of the impact of portfolio sampling, (3.10%), and expenses,
(1.24%). These were offset to a very limited degree by the positive effect of
cash drag, 0.26%. Of those factors, portfolio sampling had the most significant
impact on performance, accounting for over 75% of the underperformance.
As stated in the introduction, regulatory restrictions can adversely
affect the Investment Advisor's ability to optimize a WEBS Index Series'
portfolio. In the case of the Belgium Series, the 5/50 Rule made it difficult to
achieve index exposure to several key industries. It is important to note that
the sum weightings of 5% or greater in the MSCI Belgium Index at August 31, 1999
was 80.36%. In such circumstances, a number of large-cap stocks in the Series'
portfolio were significantly underweighted relative to the benchmark. This
resulted in the Belgium Series being overweighted in several of the poorly
performing sectors of the market such as electronic components, (42.81%) for the
12-month period, industrial components, (28.30%), metals-non ferrous, (18.64%),
and miscellaneous materials, (13.74%). On the large-cap side, the Belgium Series
was forced to underweight a number of industries, such as utilities which
enjoyed a return of 10.12% for the period.
Key Market Conditions
In contrast to the strong rally enjoyed by Belgian stocks over the last
three months of 1998, 1999 has been a difficult year. In August the market began
to improve, fueled by stronger corporate earnings and an improving global
environment. News of consolidation in the French retail sector also boosted
Belgian retailers.
The market's performance was influenced by several factors, including a
slowdown in merger and acquisition activity and an investment shift toward
European equities by Belgian financial institutions. In 1998, the market was
supported by speculation of possible acquisitions and restructurings. Many of
these anticipated transactions did not materialize in 1999, causing the
speculation to switch to opportunities in other European markets. A market
selloff was also driven by Belgian fund managers looking to raise cash to invest
in European blue chips. Following the run up in Belgian share prices last year,
many managers found themselves with significant positions.
Belgium's struggles were also in part a result of its efforts to meet the
Maastricht criteria for European Monetary Union ("EMU") membership. In last
year's build up to EMU, the Belgian government implemented an economic policy
characterized by a severe fiscal consolidation process. Its efforts to reduce
expenditures contributed to a reduction in private consumption with a negative
impact on GDP growth. The slowdown in several of its primary export markets,
including Germany and the Netherlands, also weighed on investor sentiment.
Comparison of Change in Value of a $10,000 Investment in the
Belgium WEBS Index Series vs. the MSCI Belgium Index
[GRAPHIC OMITTED]
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
Belgium WEBS MSCI
03/12/96 10,000 10,000
08/31/96 10,501 10,496
02/28/97 11,204 11,595
08/31/97 11,474 11,662
02/28/98 13,161 13,768
08/31/98 15,996 17,633
02/28/99 16,752 19,637
08/31/99 15,836 18,184
Past performance is not predictive of future performance
Value
August 31, 1999
---------------
Belgium WEBS Index Series $15,837*
MSCI Belgium Index $18,184
Average Annual Total Return
One Since
Year Inception
---------- ---------
Belgium WEBS Index Series (1.00)% 14.15%
MSCI Belgium Index 3.12% 18.78%
- ----------
* The chart assumes a hypothetical $10,000 initial investment in the Belgium
WEBS Index Series and reflects all expenses of the Index Series. Investors
should note that the Index Series is professionally managed while the relevant
MSCI Index is unmanaged, does not incur expenses and is not available for
investment.
6
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PERFORMANCE REVIEW WEBS INDEX FUND, INC.
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Canada
- ------
Performance Review
The total return of the Canada WEBS Index Series (the "Canada Series") was
39.71% for the year ended August 31, 1999, while the corresponding MSCI Index
returned 39.20% over the same time period.
Significant Performance Factors
The Canada Series outperformed the benchmark by 0.51% as a result of
portfolio sampling, although its contribution of 2.02% was somewhat offset by
the impact of expenses, (1.22%), revenue differential and cash drag.
The difference in returns as a result of portfolio sampling was
attributable to the Fund's underweighted position in insurance, which
underperformed on a relative basis over the 12-month period, returning 40.68%.
The Series' overweighting in the telecommunications sector contributed
positively to overall performance.
Key Market Conditions
The Canadian market overcame its shaky start to this year and recaptured
most of its prior losses, although it remained down from its April 1998 high.
With the Russian default of last August and depressed commodity prices seemingly
behind, consumer confidence recovered with stability in the exchange rate and
the ensuing reduction in interest rates in the spring. An equally important
driver of performance was the rebound in Japanese industrial production and the
related recovery in commodity prices. Of late, however, Canadian markets were
not immune to corrective pressures stemming from developments in the U.S.
market. Canadian equity markets spent most of July and August digesting fresh
economic data and anxiously awaited the U.S. Federal Reserve's next move on
interest rates.
With a strengthening global economy and the threat of rising rates, the
resource sectors performed well, while financials and utilities underperformed.
In the first eight months of 1999, the oil & gas, paper and metals groups were
up 42%, 39% and 32% respectively, while financial services were down 17%.
The recovery of domestic growth has also been positive for markets.
Increased consumer spending coupled with a surge in business investment and
strong demand for housing, propelled the economy to a solid second quarter
growth rate of 3.3% on an annualized basis. Consumer confidence also received a
boost from continued improvement in the unemployment rate.
Restructuring was another positive theme occurring in the Canadian
markets. From the financial services sector to forest products, oil & gas,
telecommunications, and media -- a flurry of activity provided support to a
recovery in operating earnings.
Comparison of Change in Value of a $10,000 Investment in the
Canada WEBS Index Series vs. the MSCI Canada Index
[GRAPHIC OMITTED]
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
Canada WEBS MSCI
03/12/96 10,000 10,000
08/31/96 10,463 10,521
02/28/97 12,569 12,713
08/31/97 13,445 13,745
02/28/98 14,322 14,679
08/31/98 10,529 10,921
02/28/99 12,717 13,205
08/31/99 14,711 15,203
Past performance is not predictive of future performance
Value
August 31, 1999
---------------
Canada WEBS Index Series $14,710*
MSCI Canada Index $15,203
Average Annual Total Return
One Since
Year Inception
---------- ---------
Canada WEBS Index Series 39.71% 11.75%
MSCI Canada Index 39.20% 12.82%
- ----------
* The chart assumes a hypothetical $10,000 initial investment in the Canada WEBS
Index Series and reflects all expenses of the Index Series. Investors should
note that the Index Series is professionally managed while the relevant MSCI
Index is unmanaged, does not incur expenses and is not available for investment.
7
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PERFORMANCE REVIEW WEBS INDEX FUND, INC.
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France
- ------
Performance Review
The total return of the France WEBS Index Series (the "France Series") was
21.01% for the year ended August 31, 1999, while the corresponding MSCI Index
returned 20.22% over the same time period.
Significant Performance Factors
The France Series outperformed the benchmark by 0.79%, primarily because
of portfolio sampling, which made a positive contribution to performance of
2.18%. Revenue differential had a smaller positive impact of 0.46%. These
effects were somewhat offset by the impact of expenses, (1.07%), and cash drag,
(0.78%). Positive contributions from portfolio sampling were a result of the
Series' underweighted position in some of the relatively poorer performing
sectors, such as electronics, which had a negative return of 0.38%. However, the
underweighting of the business and public services sector, which returned 7.61%,
still created a positive impact on performance as a result of the securities
that the Investment Adviser chose to hold. Cash drag detracted from the Series'
returns. A 1% position was held in cash during the summer months as a result of
dividends accrued; normally, the majority of European companies declare
dividends in the summer months. The cash position was temporarily further
increased as a result of the acquisition for cash of the Series shares of
Paribas by BNP.
Key Market Conditions
Supported by an improving domestic economy and a high level of acquisition
activity, the French market continued to demonstrate resilience. Strong gains
were enjoyed by the market and corporate earnings expectations trended
decisively upwards. Among the industries experiencing revisions in earnings
expectations were French financials, which were boosted by industry
consolidation as BNP's acquisition of Paribas prompted a wave of substantial
earnings upgrades.
Of the major Euro-zone economies, France has been the least affected by
the downturn in emerging markets and the quickest to recover. In fact, France
was the largest single contributor to Euroland growth last year, driven largely
by private consumption. While this is unlikely to be repeated, particularly in
light of a slowdown in the economy in the first half of 1999, signs are
surfacing that a pick-up in growth is resuming. A recent government report
suggests an expected growth rate of between 2.6% and 3% next year. Meanwhile, an
improved growth outlook in foreign markets is likely to be matched by an
improving external balance, with net trade deficits no longer expected to dampen
French real GDP growth. Other positive news includes an unemployment rate that
continues to fall and an inflation rate that is under 1%.
Comparison of Change in Value of a $10,000 Investment in the
France WEBS Index Series vs. the MSCI France Index
[GRAPHIC OMITTED]
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
France WEBS MSCI
03/12/96 10,000 10,000
08/31/96 10,495 10,371
02/28/97 12,177 12,210
08/31/97 12,237 12,194
02/28/98 14,880 14,933
08/31/98 16,492 16,500
02/28/99 18,010 18,103
08/31/99 19,957 19,836
Past performance is not predictive of future performance
Value
August 31, 1999
---------------
France WEBS Index Series $19,958*
MSCI France Index $19,836
Average Annual Total Return
One Since
Year Inception
---------- ---------
France WEBS Index Series 21.01% 22.01%
MSCI France Index 20.22% 21.79%
- ----------
* The chart assumes a hypothetical $10,000 initial investment in the France WEBS
Index Series and reflects all expenses of the Index Series. Investors should
note that the Index Series is professionally managed while the relevant MSCI
Index is unmanaged, does not incur expenses and is not available for investment.
8
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PERFORMANCE REVIEW WEBS INDEX FUND, INC.
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Germany
- -------
Performance Review
The total return of the Germany WEBS Index Series (the "Germany Series")
was 7.04% for the year ended August 31, 1999, while the corresponding MSCI Index
returned 6.27% over the same time period.
Significant Performance Factors
The Germany Series outperformed the benchmark by .77% during this period
as a result of the positive impact of portfolio sampling, 1.38%, and revenue
differential, 0.39%, which more than offset the negative impact of expenses of
1.00%. The Series' underweighted position in the poorly performing automobiles
sector, (17.11%) for the 12-month period, and the business and public services
sector which declined by 31.54%, caused returns to exceed the benchmark.
Additionally, the Series' overweighted position in telecommunications, which
returned 68.08%, contributed to the divergence.
Key Market Conditions
Weighed down by depressed consumer sentiment, earnings disappointments and
worries over the direction of interest rates in the United States, the German
market posted modest gains during the 12 months ending August 31, 1999. Few
sectors performed well in this environment. German industrials were hard hit by
industry specific concerns, such as falling electricity prices, in addition to
the introduction of the new accounting convention for goodwill write off. Among
last year's top performers, the German retail sector was depressed by a high
level of profit taking. Companies with interests in recreation and metals were
among the top performers in this difficult market.
The decline in overall business confidence in recent times was caused by a
combination of factors, including a collapse in two of Germany's major European
export markets, initially as a result of the Asian crisis in the second half of
1997 and then the Russian crisis in the autumn of 1998. Kosovo and the depressed
Euro were additional debilitating factors. With continued improvement in each of
these areas, there is increasing evidence that confidence and growth are
returning to Germany. After suffering a fall in its GDP in the fourth quarter,
Germany enjoyed a return to economic growth in the first quarter. More recently,
initial signs of recovery have been evident in the survey of business conditions
in Germany, which was above average in August for the first time this year and
marked the third consecutive month of improvement. Manufacturing orders were
also substantially above forecasts, rising by a strong 1.7% month-on-month in
June. Meanwhile, domestic demand was up 2.8% in the first half of 1999 - a
performance not seen since 1990.
Comparison of Change in Value of a $10,000 Investment in the
Germany WEBS Index Series vs. the MSCI Germany Index
[GRAPHIC OMITTED]
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
Germany WEBS MSCI
03/12/96 10,000 10,000
08/31/96 10,399 10,451
02/28/97 11,291 11,476
08/31/97 12,533 12,778
02/28/98 14,661 15,107
08/31/98 15,752 16,102
02/28/99 16,117 16,643
08/31/99 16,862 17,112
Past performance is not predictive of future performance
Value
August 31, 1999
---------------
Germany WEBS Index Series $16,861*
MSCI Germany Index $17,112
Average Annual Total Return
One Since
Year Inception
---------- ---------
Germany WEBS Index Series 7.04% 16.23%
MSCI Germany Index 6.27% 16.72%
- ----------
* The chart assumes a hypothetical $10,000 initial investment in the Germany
WEBS Index Series and reflects all expenses of the Index Series. Investors
should note that the Index Series is professionally managed while the relevant
MSCI Index is unmanaged, does not incur expenses and is not available for
investment.
9
<PAGE>
PERFORMANCE REVIEW WEBS INDEX FUND, INC.
================================================================================
- ---------
Hong Kong
- ---------
Performance Review
The total return of the Hong Kong WEBS Index Series (the "Hong Kong
Series") was 90.51% for the year ended August 31, 1999, while the corresponding
MSCI Index returned 95.35% over the same time period.
Significant Performance Factors
The Hong Kong Series underperformed the benchmark by 4.84% during this
period as a result of revenue differential, portfolio sampling and expenses,
which more than offset the slight benefit of cash drag. Of those three factors,
revenue differential had by far the most significant impact on performance with
an adverse effect of (2.90%). In addition, security sampling contributed (1.02%)
and expenses (1.01%). It is important to note that the extraordinary returns on
the Hong Kong Series caused even the smallest misweights to manifest themselves
into reportable return variances.
The significant increase in market prices over the period resulted in a
corresponding decrease in dividend yields on the stocks held by the Series.
MSCI, however, uses a 12-month rolling cycle to calculate the yield of the
benchmark index, and as a result the benchmark index's returned reflected yields
that were not attainable by the index stocks in the 12-month period (since they
reflected yields based on much lower stock prices.) This is the principal reason
for the relatively large negative revenue differential contribution to
performance.
As stated in the introduction, regulatory restrictions can adversely
affect the Investment Advisor's ability to optimize the portfolio of a WEBS
Index Series. In the case of the Hong Kong WEBS Index Series, the 5/50 Rule made
it difficult to achieve index exposure to several key industries. It is
important to note that the sum of all of the weightings of over 5% in the MSCI
Hong Kong Index was 70.63% at August 31, 1999. As a result, the Series was
overweighted in several of the relatively poorer performing sectors, such as
electronic components and telecommunications (up 21.18%and 28.57%, respectively
for the 12-month period). The Hong Kong Series was also underweighted in the
multi-industry and retail sectors, which enjoyed strong gains, 113.76% and
137.36%, respectively.
On the other hand, several sectors in which the Series was overweighted
relative to the benchmark, such as merchandising (up 798.15%), contributed
positively to its performance.
Key Market Conditions
A return to growth for the Hong Kong economy boosted investor sentiment,
which fueled impressive gains in the market. In turn, good news in the market
prompted higher spending, continuing the "feel good" cycle. Asian recovery has
also led to a resurgence of foreign capital inflows into the region, a
development that has particularly benefited Hong Kong's banking sector.
Following 1998's 5.1% economic decline, the GDP increase of 0.5%
year-on-year in the second quarter of 1999 was well received. This return to
growth has been accompanied by signs of improvement in various areas of the
economy: unemployment continues to fall, personal consumption improved
significantly in the second quarter, and July export figures indicated a
recovery after a poor first quarter. Meanwhile, as infrastructure spending gets
underway and companies fully factor in the improvement in sales, additional
support to the economy should be on its way.
More negatively, Hong Kong recently saw the first increase in the best
lending rate since January 1998, which could potentially restrain growth.
Moreover, compared to its Asian neighbors, Hong Kong's economic growth remains
fragile and fragmented. This primarily reflects the short-term cost of
maintaining the Hong Kong dollar peg. Finally, the sustainability of the wealth
effect, which has been generated by a rise in property and stock prices, as a
sustainable source of growth is an additional concern.
Comparison of Change in Value of a $10,000 Investment in the
Hong Kong WEBS Index Series vs. the MSCI Hong Kong Index
[GRAPHIC OMITTED]
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
Hong Kong WEBS MSCI
03/12/96 10,000 10,000
08/31/96 10,322 10,415
02/28/97 11,868 12,190
08/31/97 12,159 12,645
02/28/98 9,197 9,871
08/31/98 5,567 6,108
02/28/99 7,630 8,761
08/31/99 10,606 11,932
Past performance is not predictive of future performance
Value
August 31, 1999
---------------
Hong Kong WEBS Index Series $10,604*
MSCI Hong Kong Index $11,932
Average Annual Total Return
One Since
Year Inception
---------- ---------
Hong Kong WEBS Index Series 90.51% 1.70%
MSCI Hong Kong Index 95.35% 5.22%
- ----------
* The chart assumes a hypothetical $10,000 initial investment in the Hong Kong
WEBS Index Series and reflects all expenses of the Index Series. Investors
should note that the Index Series is professionally managed while the relevant
MSCI Index is unmanaged, does not incur expenses and is not available for
investment.
10
<PAGE>
PERFORMANCE REVIEW WEBS INDEX FUND, INC.
================================================================================
- -----
Italy
- -----
Performance Review
The total return of the Italy WEBS Index Series (the "Italy Series") was
5.14% for the year ended August 31, 1999, while the corresponding MSCI Index
returned 4.36% over the same time period.
Significant Performance Factors
The Italy Series outperformed the benchmark by 0.78% during this period as
a result of portfolio sampling and revenue differential. Of those factors,
portfolio sampling had the most significant impact on performance with a return
of 1.48% while revenue differential contributed 0.50% and the expense impact was
1.03%. In particular, the disparity in returns was a result of the Series'
underweighted position in some of the poorer performing sectors such as banking
and transportation, which returned (0.17%) and (17.70%), respectively. The
Series' overweighted position in the well performing broadcasting and publishing
sector, up 66.76%, also contributed to its relative outperformance.
Key Market Conditions
The market's recent underperformance follows years of outperformance in
Europe resulting from the considerable fall in long-term rates from 1995 to
1998. With stretched valuations and a slowdown in merger activity in the banking
and telecommunications sectors (which represent a significant part of the
market), the support the market had become accustomed to over the last several
years was no longer evident. Meanwhile, fears of an increase in the Fed Funds
rate dominated sentiment in August, driving down the market because of the
preponderance of interest rate-sensitive stocks. As such, the Italian market
suffered from relative earnings downgrades, with no support from any further
fall in long-term rates.
As the Italian market languished, it was also true that Italy was the
weakest economy within Euroland. First quarter growth rose by only 0.2%, largely
due to sluggish net exports and weak growth in world trade, while the
year-on-year change in industrial production remained firmly in negative
territory, (1.5%). Economic activity was poor as Italy was still feeling the
effects of the fiscal squeeze required to qualify for Euro entry and lost the
opportunity for a competitive devaluation. Moreover, its May deficit exceeded
the 2% of GDP target as stipulated by the EMU stability pact. Given that Italy
can not restore its competitiveness in the short term via currency devaluation
and is unable to revive the economy through fiscal relaxation, life has become
increasingly difficult for the Italian authorities. Meanwhile, consumer
confidence, which was robust in the first quarter, deteriorated between April
and June partly due to pension reform issues and partly due to pressure from
other Euroland governments. Business sentiment seemed to deteriorate throughout
the year.
While consumers fear pension reform, cheaper and more available credit
should boost growth in 2000. A much improved budgetary outlook in July confirms
higher than expected fiscal revenues from the government's campaign to clamp
down on taxes.
Comparison of Change in Value of a $10,000 Investment in the
Italy WEBS Index Series vs. the MSCI Italy Index
[GRAPHIC OMITTED]
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
Italy WEBS MSCI
03/12/96 10,000 10,000
08/31/96 10,411 10,333
02/28/97 11,151 11,102
08/31/97 12,845 12,862
02/28/98 17,250 17,297
08/31/98 18,968 19,129
02/28/99 21,328 21,666
08/31/99 19,943 19,963
Past performance is not predictive of future performance
Value
August 31, 1999
---------------
Italy WEBS Index Series $19,941*
MSCI Italy Index $19,963
Average Annual Total Return
One Since
Year Inception
---------- ---------
Italy WEBS Index Series 5.14% 21.98%
MSCI Italy Index 4.36% 22.02%
- ----------
* The chart assumes a hypothetical $10,000 initial investment in the Italy WEBS
Index Series and reflects all expenses of the Index Series. Investors should
note that the Index Series is professionally managed while the relevant MSCI
Index is unmanaged, does not incur expenses and is not available for investment.
11
<PAGE>
PERFORMANCE REVIEW WEBS INDEX FUND, INC.
================================================================================
- -----
Japan
- -----
Performance Review
The total return of the Japan WEBS Index Series (the "Japan Series") was
58.14% for the year ended August 31, 1999, while the corresponding MSCI Index
returned 62.65% over the same time period.
Significant Performance Factors
The Japan Series underperformed the benchmark by 4.51 % during this period
as a result of portfolio sampling, expenses, revenue differential and cash drag.
Of those factors, portfolio sampling had by far the most significant impact on
performance, (2.72%), while the expense impact was (0.95%), revenue differential
was (0.47%) and cash drag was (0.38%). In particular, the Series' underweighted
position in a well performing business and public services sector (up 148.44%)
contributed to the underperformance. Additionally, the Series was overweighted
in several of the relatively poorer performing sectors such as utilities and
automobiles, which were up 20.73% and 36.63%, respectively.
Key Market Conditions
When the poorest performing sector returns 20%, it is evident that the
12-month period was good for investors. Stronger economic growth, an inflow of
foreign capital and buoyant acquisition activity helped to maintain the market's
positive mood and allowed it to break loose from its four-year battle with
disappointing performance. The banking sector in particular raced ahead to
return more than 112%, as August saw the creation of the world's largest bank
through the consolidation of the Industrial Bank of Japan, Dai-Ichi Kangyo Bank
and Fuji Bank.
How long will the euphoria last? At this stage, many risks remain. During
July, for example, reality returned as a temporary setback in sentiment prompted
a correction in the market. In this instance, the strength of the yen outweighed
the optimism created by restructuring in the banking and other corporate
sectors. A stronger yen is a double blow to the economy as it makes Japan's
exports less competitive and cuts into profits overseas when repatriated.
There is reason for caution regarding the near-term outlook for the
Japanese economy. Despite data that suggest a real economic growth rate of 2.5%
for the first half of 1999, many are left questioning its implications and its
sustainability. Factors that have contributed to the stronger economy include a
rapidly recovering Asia, which has helped spur activity in Japan's manufacturing
sector. Additional support has been driven by government policy initiatives such
as expanded public spending and large-scale spending aimed at the financial
sector. On the other hand, this fragile increase in GDP has also been fueled by
increased consumption, which has fostered a decline in personal savings.
Comparison of Change in Value of a $10,000 Investment in the
Japan WEBS Index Series vs. the MSCI Japan Index
[GRAPHIC OMITTED]
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
Japan WEBS MSCI
03/12/96 10,000 10,000
08/31/96 9,689 9,720
02/28/97 8,060 8,117
08/31/97 8,529 8,596
02/28/98 7,366 7,438
08/31/98 5,682 5,785
02/28/99 6,867 7,031
08/31/99 8,986 9,409
Past performance is not predictive of future performance
Value
August 31, 1999
---------------
Japan WEBS Index Series $8,986*
MSCI Japan Index $9,409
Average Annual Total Return
One Since
Year Inception
---------- ---------
Japan WEBS Index Series 58.14% (3.03)%
MSCI Japan Index 62.65% (1.74)%
- ----------
* The chart assumes a hypothetical $10,000 initial investment in the Japan WEBS
Index Series and reflects all expenses of the Index Series. Investors should
note that the Index Series is professionally managed while the relevant MSCI
Index is unmanaged, does not incur expenses and is not available for investment.
12
<PAGE>
PERFORMANCE REVIEW WEBS INDEX FUND, INC.
================================================================================
- ---------------
Malaysia (Free)
- ---------------
Performance Review
The total return of the Malaysia (Free) WEBS Index Series (the "Malaysia
Series") was 185.81% for the year ended August 31, 1999, while the corresponding
MSCI Index returned 204.68% over the same time period.
Significant Performance Factors
The Malaysia Index Series underperformed the benchmark by a considerable
18.87%. Revenue differential contributed (3.74%) to the underperformance of the
Malaysia Series in the 12-month period. The significant increase in market
prices over the period resulted in a corresponding decrease in dividend yields
on the stocks held by the Series. MSCI, however, uses a 12-month rolling cycle
to calculate the yield of the benchmark index, and as a result the benchmark
index's return reflected yields that were not attainable by the index stocks in
the 12-month period (since they reflected yields based on much lower stock
prices.) Uncertain market conditions in Malaysia also prompted the Series to
maintain higher cash balances than normal (on the order of 3-6%) in order to
facilitate distributions and pay expenses. This cash drag had a negative impact
of 7.18%. Because of the high returns in the Malaysia market, any cash balance
had an exaggerated impact on tracking error.
Most of the remaining underperformance resulted from portfolio sampling.
In particular, the disparity in returns was a result of the performance of
specific securities in several sectors selected by the Investment Advisor. Some
of the areas impacted included: beverages and tobacco, which was overweighted
(this category returned 58.31% for the year); food and household products, which
returned 24.96%; miscellaneous materials, which returned 49.57%; and
multi-industry, which was underweighted (the sector returned 310.33%). The
Series' overweighted positions in leisure and tourism and machinery and
engineering helped offset some of the relative underperformance as the sectors
enjoyed returns of 228.38% and 794.19%, respectively.
Since the Malaysia Series and MSCI used the same exchange rate at the
beginning and end of the 12-month period, there was no exchange rate related
impact on performance compared to the benchmark.
Key Market Conditions
The 12-month period ended August 31, 1999 was a good time to have
investment exposure in Asia. Malaysia was no exception. The tremendous rise in
the Malaysian market, like that of its Asian neighbors, reflects the confluence
of many positive factors including a supportive interest rate environment,
improvement in corporate earnings, and a recovery in exports. A brighter
macroeconomic picture has been evident in the exceptionally strong second
quarter of 1999, which saw a GDP growth rate of 4.1% year over year. The rebound
has been led by recovery in the manufacturing, agricultural and services
sectors.
The market's impressive absolute returns, however, disguise some of the
prominent trends occurring in the market. Most recently, panic selling took hold
in July as heavy profit taking resulted from negative sentiment. The vicious
cycle reversed as rumors of Malaysia's proposed reinclusion in certain MSCI
indices stemmed the selling tide. In September, 1999, MSCI announced that,
effective February 2000, MSCI will be returning Malaysia to its Emerging Markets
Free Index and its All-Country Far East Free ex-Japan Index. MSCI had deleted
Malaysia from these indices in September, 1998 in reaction to Malaysia's
imposition of stringent capital controls.
Capital controls became less of an issue for investors after September 1,
1999. Foreign investors who had invested prior to September 1998 can now freely
repatriate their investments, but most have chosen not to do so. However, a
remaining exit tax of 10% of profits on money entering Malaysia or reinvested in
Malaysia after February 14, 1999 continues to be a source of irritation to
foreign investors.
Comparison of Change in Value of a $10,000 Investment in the
Malaysia (Free) WEBS Index Series vs. the MSCI Malaysia (Free) Index
[GRAPHIC OMITTED]
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
Malaysia WEBS MSCI
03/12/96 10,000 10,000
08/31/96 10,428 10,512
02/28/97 11,834 12,172
08/31/97 6,237 6,385
02/28/98 4,877 4,890
08/31/98 1,648 1,657
02/28/99 2,428 2,852
08/31/99 4,711 5,050
Past performance is not predictive of future performance
Value
August 31, 1999
---------------
Malaysia (Free) WEBS Index Series $4,711*
MSCI Malaysia (Free) Index $5,050
Average Annual Total Return
One Since
Year Inception
---------- ---------
Malaysia (Free) WEBS Index Series 185.81% (19.48)%
MSCI Malaysia (Free) Index 204.68% (17.86)%
- ----------
* The chart assumes a hypothetical $10,000 initial investment in the Malaysia
(Free) WEBS Index Series and reflects all expenses of the Index Series.
Investors should note that the Index Series is professionally managed while the
relevant MSCI Index is unmanaged, does not incur expenses and is not available
for investment.
13
<PAGE>
PERFORMANCE REVIEW WEBS INDEX FUND, INC.
================================================================================
- -------------
Mexico (Free)
- -------------
Performance Review
The total return of the Mexico (Free) WEBS Index Series (the "Mexico
Series") was 66.92% for the year ended August 31, 1999, while the corresponding
MSCI Index returned 75.29% over the same time period.
Significant Performance Factors
The Mexico Series underperformed the benchmark by 8.37% during this period
as a result of the impact of portfolio sampling, (5.08%), expenses, (1.25%),
revenue differential, (0.71%), and cash drag, (1.33%). Of these factors,
portfolio sampling had the most significant impact on performance, accounting
for most of the underperformance.
As stated in the introduction, regulatory restrictions can adversely
affect the Investment Advisor's ability to optimize the portfolio of a WEBS
Index Series. In the case of the Mexico (Free) WEBS Index Series, both the 5/50
and the Single Issuer Rules constrain the Investment Advisor's ability to
optimize the portfolio. It is important to note that the sum of all the
weightings of 5% or greater in the MSCI Mexico (Free) Index as of August 31,
1999 was 56.62%. In addition, Telefonos de Mexico A and L shares combined had a
29.51% weighting in the benchmark on such date. The Investment Advisor had to,
therefore, underweight the Telefonos de Mexico securities because of the Single
Issuer Rule. As a result of the Single Issuer and 5/50 Rules, the Investment
Advisor had to reallocate the Series' weight in favor of smaller-capitalization
stocks. As a result, it was underweighted in several of the better performing
sectors such as building materials up 114.45%, and overweighted in several of
the relatively poorer-performing sectors such as beverages and tobacco which
returned (13.21%). On the large-capitalization side, the Series was forced by
the Single Issuer Rule to underweight telecommunications, which enjoyed returns
of 108.37% for the period.
Additionally, cash drag impacted the Series relative performance.
Typically, the Series keeps .50-.75% of net assets in cash. However, due to
liquidity constraints, Empaques Ponderosa and Groupo Dina, which were both index
names, were placed in the cash component due to illiquidity which had prevented
authorized participants from creating new shares of the Series. Once liquidity
improved, the cash weights were reduced and these securities were returned to
the basket.
Key Market Conditions
Although recent fears of rising interest rates in the U.S. put pressure on
the market during July and August, continued positive news on Mexico's economic
growth and consumer sentiment provided a backdrop for impressive gains overall.
The banking, telecommunications and energy equipment sectors were among the
market's top performers, returning approximately 125%, 108% and 150%,
respectively.
Mexico is becoming increasingly sensitive to the direction of U.S.
interest rates. Higher U.S. rates pose a distinct threat to the peso's value and
to inflation. They would also pull much needed capital away from Mexico back
into the U.S. This would place additional pressure on the already weakened
currency. Moreover, because of the increasing dependence of Mexican entities on
U.S. financial markets, investment would likely suffer as well.
On the economic front, Mexico's GDP grew by 3.2% year-over-year in the
second quarter of 1999. The higher-than-expected growth rate was driven by
strong export growth thanks to sustained growth in the United States. Trade with
the U.S. accounts for 81% of Mexico's total external trade. The transport and
communications divisions of the services sector experienced the strongest gains,
up 8.5%.
Comparison of Change in Value of a $10,000 Investment in the
Mexico (Free) WEBS Index Series vs. the MSCI Mexico (Free) Index
Mexico WEBS MSCI
03/12/96 10,000 10,000
08/31/96 11,592 11,736
02/28/97 12,820 13,254
08/31/97 15,675 16,321
02/28/98 15,311 16,136
08/31/98 8,750 9,159
02/28/99 12,108 13,071
08/31/99 14,605 16,055
Past performance is not predictive of future performance
Value
August 31, 1999
---------------
Mexico (Free) WEBS Index Series $14,604*
MSCI Mexico (Free) Index $16,055
Average Annual Total Return
One Since
Year Inception
---------- ---------
Mexico (Free) WEBS Index Series 66.92% 11.52%
MSCI Mexico (Free) Index 75.29% 14.60%
- ----------
* The chart assumes a hypothetical $10,000 initial investment in the Mexico
(Free) WEBS Index Series and reflects all expenses of the Index Series.
Investors should note that the Index Series is professionally managed while the
relevant MSCI Index is unmanaged, does not incur expenses and is not available
for investment.
14
<PAGE>
PERFORMANCE REVIEW WEBS INDEX FUND, INC.
================================================================================
- -----------
Netherlands
- -----------
Performance Review
The total return of the Netherlands WEBS Index Series (the "Netherlands
Series") was 8.98% for the year ended August 31, 1999, while the corresponding
MSCI Index returned 12.11% over the same time period.
Significant Performance Factors
The Netherlands Series underperformed the benchmark by 3.13% during this
period as a result of portfolio sampling, (3.84%), and expenses, (1.07%). On the
other hand, the positive impact of revenue differential, which was 1.41%, helped
offset some of the relative underperformance. Revenue differential was caused by
misweights in the portfolio that arose as a result of regulatory constraints.
More specifically, the Series' overweighted position in higher yielding
securities led to its relative outperformance in this area.
Portfolio sampling had the most significant impact on returns, accounting
for approximately two-thirds of the underperformance. As stated in the
introduction, regulatory restrictions can adversely affect the Investment
Advisor's ability to optimize a WEBS Index Series portfolio. In the case of the
Netherlands Series, the 5/50 Rule made it difficult to achieve Index exposure to
several key industries. It is important to note that the sum of all of the
weightings of 5% or greater in the MSCI Netherlands Index at August 31, 1999,
was 74.24%. As a result, the Investment Advisor had to reallocate the weight of
several large-cap stocks in the benchmark in favor of smaller-cap stocks,
causing the Series to be overweighted in several of the poorly performing
sectors such as data processing and reproduction (down 39.30% for the period)
and wholesale and international trade (down 28.37%). Additionally, the Series
was underweighted in the energy sector, which returned 38.70%.
Key Market Conditions
Home to some of the world's leading banks, food retailers, financial
services, oil, chemical, and electronics companies, the Netherlands has long
attracted investors due to the openness of Dutch companies and the favorable
investment environment. Given the caliber of its companies, it is not surprising
that the Dutch stock market is showing significant upward revisions and enjoying
the most positive earnings surprises in the Euroland region. Since the
international crisis, which peaked in October of last year, earnings of Dutch
companies have been improving steadily; Dutch earnings per share growth is
expected to reach 24%, a figure that is double the European average of 12%. One
negative for investors is an apparent trend toward higher prices, with July CPI
figures significantly surpassing expectations and rising far above the Euroland
average.
Comparison of Change in Value of a $10,000 Investment in the Netherlands
WEBS Index Series vs. the MSCI Netherlands Index
Netherlands WEBS MSCI
03/12/96 10,000 10,000
08/31/96 11,118 10,974
02/28/97 12,934 12,949
08/31/97 14,237 14,680
02/28/98 16,811 17,273
08/31/98 16,716 16,824
02/28/99 16,952 17,573
08/31/99 18,209 18,862
Past performance is not predictive of future performance
Value
August 31, 1999
---------------
Netherlands WEBS Index Series $18,216*
MSCI Netherlands Index $18,862
Average Annual Total Return
One Since
Year Inception
---------- ---------
Netherlands WEBS Index Series 8.98% 18.84%
MSCI Netherlands Index 12.11% 20.04%
- ----------
* The chart assumes a hypothetical $10,000 initial investment in the Netherlands
WEBS Index Series and reflects all expenses of the Index Series. Investors
should note that the Index Series is professionally managed while the relevant
MSCI Index is unmanaged, does not incur expenses and is not available for
investment.
15
<PAGE>
PERFORMANCE REVIEW WEBS INDEX FUND, INC.
================================================================================
- ----------------
Singapore (Free)
- ----------------
Performance Review
The total return of the Singapore (Free) WEBS Index Series (the "Singapore
Series") was 144.52% for the year ended August 31, 1999, while the corresponding
MSCI Index returned 134.05% over the same time period.
Significant Performance Factors
The Singapore Series outperformed the benchmark by 10.47% during this
period as a result of portfolio sampling. While the impact of expenses, (0.97%),
revenue differential, (1.32%), and cash drag, (1.10%), mitigated returns,
portfolio sampling had a positive effect of 13.85% on performance.
The performance differential between the Singapore Series and the
benchmark index was driven by security-specific as well as sector-related
factors. In particular, the Series held shares in the Overseas Union Bank and
Sembawang Marine in the early part of the year, while the index did not.
Non-index names were held due to regulatory constraints placed on the Singapore
Series by the 5/50 Rule conflicting with the Series' former industry
concentration policy. The weight of all the non-index names, however, was less
than 5%. Due to changes in the industry concentration policy approved by
shareholders in October 1998, non-index positions were liquidated. Significant
share price gains in these stocks contributed to the discrepancy in relative
performance. Furthermore, extraordinary returns on the fund caused ordinary
misweights to manifest in the appearance of considerable return variances.
On the other hand, security specific issues in electronic components and
real estate mitigated returns. Sector-related issues also played a part. For
example, the Series' underweighted positions in transportation (road and rail,
and shipping) and multi-industry contributed to its outperformance, while
underweighting in telecommunications detracted from returns.
Revenue differential also contributed to the underperformance of the
Singapore Series in the 12-month period. The significant increase in market
prices over the period resulted in a corresponding decrease in dividend yields
on the stocks held by the Series. MSCI, however, uses a 12-month rolling cycle
to calculate the yield of the benchmark index, and as a result the benchmark
index's returned reflected yields that were not attainable by the index stocks
in the 12-month period (since they reflected yields based on much lower stock
prices).
Similarly, a cash drag existed due to the market's robust performance. The
Series held less than .8% in cash, but because the Series returned 144.52%, the
negative impact of cash drag was approximately 1.1%.
Key Market Conditions
At a 6.7% GDP growth rate for the second quarter of 1999, Singapore's
economic recovery is the most impressive in Asia after South Korea. The
country's broad-based rebound has been driven by strong exports, private
consumption and the cyclical recovery in the manufacturing sector. Low inflation
and a relatively benign interest rate environment provided an additional boost
to consumer sentiment. The market took all this positive news into account,
achieving impressive gains.
MSCI has recently announced certain changes in the MSCI Far East Free
Index that will result in a reduction in Singapore's weighting in such index,
effective February 2000, from 12.5% to 9%. This may result in some selling
pressure in the Singapore market as investors benchmarked to the MSCI Far East
Index reduce their investment allocation to Singapore. On the economic front,
inflation appears to be returning with the recovery in asset prices and the
potential restoration of pension cutbacks.
Comparison of Change in Value of a $10,000 Investment in the
Singapore (Free) WEBS Index Series vs. the MSCI Singapore (Free) Index
[GRAPHIC OMITTED]
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
Singapore WEBS MSCI
03/12/96 10,000 10,000
08/31/96 9,327 9,196
02/28/97 9,720 9,670
08/31/97 7,137 6,961
02/28/98 5,687 5,978
08/31/98 2,763 3,108
02/28/99 4,914 5,246
08/31/99 6,756 7,274
Past performance is not predictive of future performance
Value
August 31, 1999
---------------
Singapore (Free) WEBS Index Series $6,756*
MSCI Singapore (Free) Index $7,274
Average Annual Total Return
One Since
Year Inception
---------- ---------
Singapore (Free) WEBS Index Series 144.52% (10.67)%
MSCI Singapore (Free) Index 134.05% (8.76)%
- ----------
* The chart assumes a hypothetical $10,000 initial investment in the Singapore
(Free) WEBS Index Series and reflects all expenses of the Index Series.
Investors should note that the Index Series is professionally managed while the
relevant MSCI Index is unmanaged, does not incur expenses and is not available
for investment.
16
<PAGE>
PERFORMANCE REVIEW WEBS INDEX FUND, INC.
================================================================================
- -----
Spain
- -----
Performance Review
The total return of the Spain WEBS Index Series (the "Spain Series") was
13.39% for the year ended August 31, 1999, while the corresponding MSCI Index
returned 15.15% over the same time period.
Significant Performance Factors
The Spain Series underperformed the benchmark by 1.76% during this period.
The underperformance was primarily due to the impact of expenses, which was
(1.04%). Portfolio sampling and cash drag also had negative impacts of (0.37%)
and (0.26%), respectively.
Key Market Conditions
After gaining strength over the last three months of 1998, the Spanish
market struggled to achieve any further upside through August 31, 1999 and
lagged behind most European markets throughout the period. July in particular
was a poor month as Spain ended as the worst performing market in MSCI's Europe,
Australasia and Far East ("EAFE") Index. Hurt by fears of an interest rate
increase in the United States, the banking sector was especially hard hit and
larger cap stocks performed poorly, weighed down by concerns about Latin
America.
On the other hand, economic growth shows no sign of cooling. GDP growth
for 1999 is expected to be above the Euroland average with 3 to 3.5% growth
likely for 1999, compared to an expected 2% for Euroland as a whole. In the past
few years, better economic fundamentals have been reflected in Spain's relative
market outperformance. Meanwhile, despite the strong economic growth, the
economy shows few signs of overheating, with inflation remaining modest at just
above 2%, although somewhat higher than the Euroland average. Consumer
confidence has rebounded to match the highs achieved at the end of 1998. This
trend looks likely to continue, supported by another record year for tourism
(foreign tourism accounts for 29% of all exports of goods and services). The
arrival of European Monetary Union has also forced Spain to focus on fiscal
issues and helped the general government deficit to fall to 1.8 per cent last
year from a high of 7.1 per cent of GDP in 1995.
Comparison of Change in Value of a $10,000 Investment in the
Spain WEBS Index Series vs. the MSCI Spain Index
[GRAPHIC OMITTED]
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
Spain WEBS MSCI
03/12/96 10,000 10,000
08/31/96 10,845 10,917
02/28/97 12,893 13,066
08/31/97 15,092 15,379
02/28/98 20,478 21,053
08/31/98 20,009 20,589
02/28/99 24,389 24,970
08/31/99 22,687 23,707
Past performance is not predictive of future performance
Value
August 31, 1999
---------------
Spain WEBS Index Series $22,686*
MSCI Spain Index $23,707
Average Annual Total Return
One Since
Year Inception
---------- ---------
Spain WEBS Index Series 13.39% 26.59%
MSCI Spain Index 15.15% 28.21%
- ----------
* The chart assumes a hypothetical $10,000 initial investment in the Spain WEBS
Index Series and reflects all expenses of the Index Series. Investors should
note that the Index Series is professionally managed while the relevant MSCI
Index is unmanaged, does not incur expenses and is not available for investment.
17
<PAGE>
PERFORMANCE REVIEW WEBS INDEX FUND, INC.
================================================================================
- ------
Sweden
- ------
Performance Review
The total return of the Sweden WEBS Index Series (the "Sweden Series") was
25.09% for the year ended August 31, 1999, while the corresponding MSCI Index
returned 29.54% over the same time period.
Significant Performance Factors
The Sweden Series underperformed the benchmark by 4.45% during this period
primarily as a result of portfolio sampling, the impact of expenses, and revenue
differential. Portfolio sampling was the largest contributor to the
underperformance, with an impact of (2.82%). In particular, due to Single Issuer
Rule constraints, the Series was underweighted in Ericsson, which rose 38.20%.
The Series was also overweighted the business and public services sector which
underperformed the market, returning (2.71%).
Key Market Conditions
Strong domestic demand, improving international growth prospects, a solid
service sector and a healthy rebound of manufacturers' confidence were several
of the factors behind the impressive performance of the Swedish market in the
12-month period ended August 31, 1999.
As less restrictive monetary and fiscal policies stimulated both private
consumption and business investment, GDP growth is expected to reach 3.8% in
1999. Despite the robust growth, the main risk to the economy, higher inflation,
has not materialized. Increased competition, more deregulation and a more
flexible labor market have kept it at bay. More recently, the strong growth in
GDP has fueled debate on the Swedish budget surplus, which is expected to hit
3.1% of GDP in 2000, assuming no tax cuts. Since the official target is 2%,
there appears to be considerable room for tax cuts. If implemented, these cuts
would significantly boost consumer spending.
Comparison of Change in Value of a $10,000 Investment in the
Sweden WEBS Index Series vs. the MSCI Sweden Index
[GRAPHIC OMITTED]
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
Sweden WEBS Index
03/12/96 10,000 10,000
08/31/96 11,413 11,200
02/28/97 13,357 13,344
08/31/97 14,847 14,856
02/28/98 16,353 16,596
08/31/98 15,659 16,093
02/28/99 16,748 17,416
08/31/99 19,589 20,846
Past performance is not predictive of future performance
Value
August 31, 1999
---------------
Sweden WEBS Index Series $19,590*
MSCI Sweden Index $20,846
Average Annual Total Return
One Since
Year Inception
---------- ---------
Sweden WEBS Index Series 25.09% 21.36%
MSCI Sweden Index 29.54% 23.55%
- ----------
* The chart assumes a hypothetical $10,000 initial investment in the Sweden WEBS
Index Series and reflects all expenses of the Index Series. Investors should
note that the Index Series is professionally managed while the relevant MSCI
Index is unmanaged, does not incur expenses and is not available for investment.
18
<PAGE>
PERFORMANCE REVIEW WEBS INDEX FUND, INC.
================================================================================
- -----------
Switzerland
- -----------
Performance Review
The total return of the Switzerland WEBS Index Series (the "Switzerland
Series") was 1.47% for the year ended August 31, 1999, while the corresponding
MSCI Index returned 2.34% over the same time period.
Significant Performance Factors
The Switzerland Series underperformed the benchmark by .87% during this
period as a result of the impact of expenses and cash drag. These factors more
than offset the positive effect of revenue differential and portfolio sampling.
Key Market Conditions
The Swiss market has recorded relatively flat performance since
mid-January. This absolute result, however, conceals the underlying movements
taking place in the market. In the first half of the year, foreign investors
sold off their defensive positions in blue chip companies in order to reallocate
assets to other more cyclical markets. Within Switzerland, investors focused on
the small- and mid-cap growth stocks, driving up gains in these classes, while
in the summer months, rekindled interest-rate fears and the dollar's weakness
helped to drive up share prices of retail, food and transport-oriented
companies. For the past 12 months overall, electronics companies were among the
top performers, while the transportation and merchandising sectors were among
the laggards.
Underperforming exports, an uncompetitive exchange rate and the
disadvantage of not belonging to the European Union have long been the cause of
substandard economic growth in Switzerland relative to the rest of Europe. In
the first quarter of 1999, GDP edged up a mere 0.4% quarter-on-quarter, although
increasing signs of a recovery were evident in the second quarter. Fortunately,
the economic outlook for Euroland is improving, and the Swiss franc appears to
be losing strength. These factors may result in better economic performance for
the Swiss economy in 2000.
Comparison of Change in Value of a $10,000 Investment in the
Switzerland WEBS Index Series vs. the MSCI Switzerland Index
[GRAPHIC OMITTED]
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
Switzerland WEBS MSCI
03/12/96 10,000 10,000
08/31/96 10,260 10,319
02/28/97 10,210 10,347
08/31/97 11,972 11,998
02/28/98 15,124 16,271
08/31/98 14,515 15,609
02/28/99 15,019 16,706
08/31/98 14,727 15,974
Past performance is not predictive of future performance
Value
August 31, 1999
---------------
Switzerland WEBS Index Series $14,728*
MSCI Switzerland Index $15,974
Average Annual Total Return
One Since
Year Inception
---------- ---------
Switzerland WEBS Index Series 1.47% 11.79%
MSCI Switzerland Index 2.34% 14.43%
- ----------
* The chart assumes a hypothetical $10,000 initial investment in the Switzerland
WEBS Index Series and reflects all expenses of the Index Series. Investors
should note that the Index Series is professionally managed while the relevant
MSCI Index is unmanaged, does not incur expenses and is not available for
investment.
19
<PAGE>
PERFORMANCE REVIEW WEBS INDEX FUND, INC.
================================================================================
- --------------
United Kingdom
- --------------
Performance Review
The total return of the United Kingdom WEBS Index Series (the "United
Kingdom Series") was 15.33% for the year ended August 31, 1999, while the
corresponding MSCI Index returned 16.24% over the same time period.
Significant Performance Factors
The United Kingdom Series underperformed the benchmark by .91% during this
period primarily as a result of the impact of expenses and cash drag, which more
than offset the modest positive contributions of revenue differential and
portfolio sampling.
Key Market Conditions
While encouraging corporate results and optimism on interest rate cuts
fueled positive consumer sentiment and provided support to the UK market in the
first six months of the period, performance over the six months to August 31 was
considerably less robust. No longer supported by prospects of further interest
rate cuts at home coupled with fears of tighter money in the United States,
investor sentiment in July was depressed. Negative sentiment was reflected in
banking shares in particular, with the average bank stock in the benchmark Index
falling 6.3%. Sentiment turned positive again in August when a less hawkish than
expected Bank of England inflation report cheered the market, indicating that
interest rates were not likely to rise as much as expected. Additionally, the
realization that the interest rate environment in the United States had become
more benign, with the Federal Reserve announcing a `neutral' bias after a
much-anticipated 25 basis point hike, provided support to the market. Corporate
activity has also been an important source of market returns. Six of the ten
biggest takeovers in UK history have taken place in 1999.
Economic activity gathered pace in the second quarter of 1999 from the
slow growth experienced at the end of 1998 and into the first quarter of 1999.
Improving sentiment about the economy is also reflected in upgrades to 1999
consensus estimates of GDP growth, which rose from around 0.5% to 1.4% in the
last six months. In addition, consumer confidence has strengthened since the
beginning of the year.
Persistent sterling strength has been a problem and a key factor
supporting interest rate cuts earlier this year. But sterling fell significantly
against the U.S. dollar in August 1999, and, though this has been due more to
dollar strength than sterling weakness, it does begin to remove one of the
arguments for lower rates. Moreover, if the business and consumer confidence
surveys are to be believed, economic recovery in the United Kingdom now looks
well supported.
Comparison of Change in Value of a $10,000 Investment in the
United Kingdom WEBS Index Series vs. the MSCI United Kingdom Index
[GRAPHIC OMITTED]
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
United Kingdom WEBS MSCI
03/12/96 10,000 10,000
08/31/96 11,040 11,078
02/28/97 12,767 12,996
08/31/97 14,405 14,601
02/28/98 17,432 17,851
08/31/98 16,564 16,742
02/28/99 18,581 18,971
08/31/99 19,102 19,461
Past performance is not predictive of future performance
Value
August 31, 1999
---------------
United Kingdom WEBS Index Series $19,102*
MSCI United Kingdom Index $19,461
Average Annual Total Return
One Since
Year Inception
---------- ---------
United Kingdom WEBS Index Series 15.33% 20.48%
MSCI United Kingdom Index 16.24% 21.13%
- ----------
* The chart assumes a hypothetical $10,000 initial investment in the United
Kingdom WEBS Index Series and reflects all expenses of the Index Series.
Investors should note that the Index Series is professionally managed while the
relevant MSCIIndex is unmanaged, does not incur expenses and is not available
for investment.
20
<PAGE>
August 31, 1999
PORTFOLIO OF INVESTMENTS WEBS INDEX FUND, INC.
================================================================================
- ---------------------------
Australia WEBS Index Series
- ---------------------------
- ----------------------------------------------------------------------
NO. OF
SHARES SECURITY VALUE
- ------ -------- -----
COMMON STOCK - BASKET 99.96%
Appliances & Household
Durables 0.50%
153,900 Email Limited $ 274,582
-----------
Banking 13.85%
351,000 National Australia Bank Limited 5,298,439
378,000 Westpac Banking Corporation
Limited 2,288,185
-----------
7,586,624
-----------
Beverages & Tobacco 5.45%
278,100 Coca-Cola Amatil Limited 1,002,451
677,700 Foster's Brewing Group Limited 1,982,102
-----------
2,984,553
-----------
Broadcasting & Publishing 11.75%
542,700 News Corporation Limited 3,959,507
375,300 News Corporation Limited - Preferred 2,479,894
-----------
6,439,401
-----------
Building Materials &
Components 5.68%
450,900 Boral Limited 689,552
372,600 CSR Limited 949,683
175,500 James Hardie Industries Limited 466,214
394,200 Pioneer International Limited 1,004,737
-----------
3,110,186
-----------
Business & Public Services 4.25%
83,700 Brambles Industries Limited 2,327,907
-----------
Chemicals 1.05%
110,700 Orica Limited 573,474
-----------
Construction & Housing 0.35%
48,600 Leighton Holdings Limited 193,797
-----------
Energy Sources 10.67%
486,000 Broken Hill Proprietary Company
Limited 5,218,095
210,600 Santos Limited 628,029
-----------
5,846,124
-----------
Food & Household Products 0.77%
461,700 Goodman Fielder Limited 423,641
-----------
Forest Products & Paper 2.13%
224,100 Amcor Limited 1,165,934
-----------
Gold Mines 1.10%
108,000 Newcrest Mining Limited* 254,625
486,000 Normandy Mining Limited 346,841
-----------
601,466
-----------
Insurance 5.95%
297,000 AMP Limited 2,953,978
189,000 GIO Australia Holdings Limited 304,810
-----------
3,258,788
-----------
Leisure & Tourism 1.68%
135,000 TABCORP Holdings Limited 920,435
-----------
Merchandising 3.81%
375,300 Coles Myer Limited 2,090,333
-----------
Metals - Non Ferrous 8.23%
577,800 Mount Isa Mines Holdings Limited 452,854
288,900 North Limited 636,941
102,600 Rio Tinto Limited 1,758,634
378,000 WMC Limited 1,663,631
-----------
4,512,060
-----------
Multi-Industry 4.44%
102,600 Howard Smith Limited 817,209
372,600 Pacific Dunlop Limited 553,190
283,500 Southcorp Limited 1,065,090
-----------
2,435,489
-----------
Real Estate 7.60%
348,300 General Property Trust 590,352
151,200 Lend Lease Corporation Limited 1,844,229
261,900 Stockland Trust Group 600,611
556,200 Westfield Trust 1,130,570
-----------
4,165,762
-----------
Telecommunications 9.74%
1,027,728 Telstra Corporation Limited 5,337,177
-----------
Utilities - Electrical & Gas 0.96%
81,000 Australian Gas Light Company
Limited 525,422
-----------
TOTAL COMMON STOCK - BASKET
(Cost $56,077,529) 54,773,155
-----------
COMMON STOCK -
NON-BASKET 0.04%
Appliances & Household
Durables 0.00%
12,825 Email Limited Redemption Rights* 2,288
-----------
Gold Mines 0.04%
26,632 Goldfields Limited 18,497
-----------
TOTAL COMMON STOCK - NON-BASKET
(Cost $5,636) 20,785
-----------
Total Investments
(Cost $56,083,165)+ 100.00% $54,793,940
====== ===========
- ----------
* Non-income producing security.
+ Aggregate cost for Federal income tax purposes is $56,217,167.
The aggregate gross unrealized appreciation (depreciation) for all
securities is as follows:
Excess of value over tax cost $ 4,267,411
Excess of tax cost over value (5,690,638)
-----------
$(1,423,227)
===========
See accompanying notes to financial statements.
21
<PAGE>
August 31, 1999
PORTFOLIO OF INVESTMENTS WEBS INDEX FUND, INC.
================================================================================
- -------------------------
Austria WEBS Index Series
- -------------------------
- ----------------------------------------------------------------------
NO. OF
SHARES SECURITY VALUE
- ------ -------- -----
COMMON STOCK - BASKET 100.00%
Banking 22.50%
53,900 Bank Austria $ 2,860,964
-----------
Beverages & Tobacco 6.71%
9,800 Austria Tabakwerke 534,150
7,000 BBAG Oesterreichische Brau
Beteiligungs 319,425
-----------
853,575
-----------
Building Materials &
Components 4.71%
25,200 Wienerberger Baustoffindustrie 598,656
-----------
Business & Public Services 4.57%
14,700 Flughafen Wien 581,509
-----------
Chemicals 1.54%
3,500 Lenzing 195,944
-----------
Construction & Housing 3.41%
8,607 Bau Holding 300,477
1,512 Bau Holding Vorzug 51,428
2,422 Universale-Bau 81,868
-----------
433,773
-----------
Electronic Components,
Instruments 0.71%
2,408 Austria Mikro Systeme
International* 90,678
-----------
Energy Sources 7.84%
9,940 OMV 996,940
-----------
Insurance 4.71%
3,500 Generali Holding Vienna 598,923
-----------
Machinery & Engineering 8.45%
2,450 BWT 456,771
7,000 VA Technologie 617,408
-----------
1,074,179
-----------
Metals - Steel 4.50%
11,900 Boehler-Uddeholm 571,808
-----------
Miscellaneous Materials &
Commodities 9.31%
12,250 Mayr-Melnhof Karton 587,462
21,000 RHI 595,817
-----------
1,183,279
-----------
Transportation - Airlines 4.36%
23,800 Austrian Airlines 554,336
-----------
Utilities - Electrical & Gas 16.68%
14,140 Oesterreichische
Elektrizitaetswirtschafts -
Class A* 2,120,925
-----------
TOTAL COMMON STOCK - BASKET
(Cost $13,622,555) 12,715,489
-----------
Total Investments
(Cost $13,622,555)+ 100.00% $12,715,489
====== ===========
- ----------
* Non-income producing security.
+ Aggregate cost for Federal income tax purposes is $14,173,127.
The aggregate gross unrealized appreciation (depreciation) for all
securities is as follows:
Excess of value over tax cost $ 67,636
Excess of tax cost over value (1,525,274)
-----------
$(1,457,638)
===========
See accompanying notes to financial statements.
22
<PAGE>
August 31, 1999
PORTFOLIO OF INVESTMENTS WEBS INDEX FUND, INC.
================================================================================
- -------------------------
Belgium WEBS Index Series
- -------------------------
- ----------------------------------------------------------------------
NO. OF
SHARES SECURITY VALUE
- ------ -------- -----
COMMON STOCK - BASKET 100.00%
Automobiles 4.35%
1,218 D'Ieteren $ 566,093
-----------
Banking 9.19%
21,357 KBC Bancassurance Holding 1,195,649
-----------
Building Materials &
Components 4.49%
6,426 Cimenteries CBR Cementbedrijven 584,429
-----------
Chemicals 4.43%
8,190 Solvay 576,596
-----------
Electronic Components,
Instruments 5.01%
4,704 Barco NV 650,918
-----------
Energy Sources 3.68%
3,843 Electrafina 478,193
-----------
Health & Personal Care 4.31%
13,230 UCB 560,392
-----------
Industrial Components 3.89%
1,092 Bekaert NV 505,917
-----------
Insurance 18.15%
68,733 Fortis B 2,359,589
-----------
Merchandising 9.94%
1,050 Colruyt NV 699,852
6,972 Delhaize-Le Lion 592,845
-----------
1,292,697
-----------
Metals - Non Ferrous 1.58%
5,124 Union Miniere 205,187
-----------
Miscellaneous Materials &
Commodities 3.71%
4,704 Glaverbel 481,977
-----------
Multi-Industry 4.72%
3,213 Groupe Bruxelles Lambert 613,955
-----------
Utilities - Electrical & Gas 22.55%
4,746 Electrabel 1,585,676
7,371 Tractebel 1,346,198
-----------
2,931,874
-----------
TOTAL COMMON STOCK - BASKET
(Cost $12,883,290) 13,003,466
-----------
COMMON STOCK -
NON-BASKET 0.00%
Energy Sources 0.00%
5,103 Total Fina - Vvpr* 0
-----------
TOTAL COMMON STOCK - NON-BASKET
(Cost $0) 0
-----------
Total Investments
(Cost $12,883,290)+ 100.00% $13,003,466
====== ===========
- ----------
* Non-income producing security.
+ Aggregate cost for Federal income tax purposes is $13,491,940.
The aggregate gross unrealized appreciation (depreciation) for all
securities is as follows:
Excess of value over tax cost $ 203,615
Excess of tax cost over value (692,089)
-----------
$ (488,474)
===========
See accompanying notes to financial statements.
23
<PAGE>
August 31, 1999
PORTFOLIO OF INVESTMENTS WEBS INDEX FUND, INC.
================================================================================
- ------------------------
Canada WEBS Index Series
- ------------------------
- ------------------------------------------------------------------------
NO. OF
SHARES SECURITY VALUE
- ------ -------- -----
COMMON STOCK - BASKET 100.00%
Aerospace & Military Technology 3.23%
18,900 Bombardier Incorporated - Class B $ 294,481
700 Spar Aerospace Limited 5,348
----------
299,829
----------
Banking 13.93%
7,700 Bank Of Montreal 270,909
14,700 Bank Of Nova Scotia 319,180
12,600 Canadian Imperial Bank of
Commerce 274,005
5,600 National Bank Of Canada 67,926
8,400 Royal Bank Of Canada 358,866
----------
1,290,886
----------
Beverages & Tobacco 4.93%
2,800 Molson Company Limited - Class A 47,943
7,700 Seagram Company Limited 408,943
----------
456,886
----------
Broadcasting & Publishing 6.10%
2,100 Quebecor Incorporated - Class B 52,774
5,600 Rogers Communications
Incorporated - Class B* 98,512
14,000 Thomson Corporation 413,751
----------
565,037
----------
Business & Public Services 1.23%
2,800 Extendicare Incorporated -
Class A* 9,945
11,200 Laidlaw Incorporated 70,553
3,500 Moore Corporation Limited 32,955
----------
113,453
----------
Chemicals 1.92%
4,200 Agrium Incorporated 42,501
6,300 Methanex Corporation* 18,576
2,100 Potash Corporation Of
Saskatchewan Incorporated 117,230
----------
178,307
----------
Electrical & Electronics 17.43%
6,300 Newbridge Networks Corporation* 173,100
35,000 Nortel Networks Corporation 1,442,501
----------
1,615,601
----------
Energy Sources 11.88%
3,500 Alberta Energy Company Limited 107,894
3,500 Anderson Exploration Limited* 50,429
2,800 Canadian Natural Resources
Limited* 69,428
4,200 Canadian Occidental Petroleum
Limited 77,402
5,600 Enbridge Incorporated 119,716
7,000 Gulf Canada Resources Limited* 28,615
12,600 Imperial Oil Limited 265,139
3,500 Petro-Canada 52,657
4,200 Poco Petroleums Limited* 41,657
3,500 Ranger Oil Limited* 15,950
3,500 Renaissance Energy Limited* 53,947
2,800 Suncor Energy Incorporated 115,494
3,500 Talisman Energy Incorporated* 102,734
----------
1,101,062
----------
Financial Services 1.32%
7,000 Power Corporation of Canada 121,967
----------
Forest Products & Paper 2.07%
6,300 Abitibi Consolidated Incorporated 75,151
4,900 Domtar Incorporated 53,525
4,200 MacMillan Bloedel Limited 63,470
----------
192,146
----------
Gold Mines 3.20%
10,500 Barrick Gold Corporation 202,654
2,100 Cambior Incorporated 5,700
700 Echo Bay Mines Limited* 938
8,400 Placer Dome Incorporated 87,254
----------
296,546
----------
Health & Personal Care 0.45%
2,100 MDS Incorporated - Class B 41,868
----------
Industrial Components 1.13%
2,100 Magna International
Incorporated - Class A 104,282
----------
Insurance 0.25%
140 Fairfax Financial Holdings Limited* 23,361
----------
Machinery & Engineering 0.89%
3,500 United Dominion Industries Limited 82,563
----------
Merchandising 3.06%
3,500 Canadian Tire Corporation -
Class A 89,365
4,200 George Weston Limited 150,161
2,100 Hudson's Bay Company 27,443
1,400 Sobeys Canada Incorporated 17,028
----------
283,997
----------
Metals - Non Ferrous 6.77%
7,000 Alcan Aluminium Limited 230,331
2,100 Cameco Corporation 39,264
2,800 Cominco Limited 48,318
5,600 Inco Limited 115,025
2,100 Inco Limited VBN Shares 18,436
8,400 Noranda Incorporated 113,430
2,100 Rio Algom Limited 32,016
3,500 Teck Corporation - Class B 30,375
----------
627,195
----------
Metals - Steel 1.00%
4,200 Dofasco Incorporated 71,632
2,800 Stelco Incorporated Class A 21,485
----------
93,117
----------
Miscellaneous Materials &
Commodities 0.23%
2,100 CCL Industries Incorporated -
Class B 21,532
----------
Multi-Industry 7.46%
10,500 Canadian Pacific Limited 246,984
5,250 EdperBrascan Corporation -
Class A 76,523
14,000 Imasco Limited 368,248
----------
691,755
----------
See accompanying notes to financial statements.
24
<PAGE>
August 31, 1999
PORTFOLIO OF INVESTMENTS WEBS INDEX FUND, INC.
================================================================================
- ------------------------------------
Canada WEBS Index Series (concluded)
- ------------------------------------
- ------------------------------------------------------------------------
NO. OF
SHARES SECURITY VALUE
- ------ -------- -----
Telecommunications 7.43%
14,000 BCE Incorporated 652,996
1,652 BCT Telus Communications
Incorporated - A shares 35,704
----------
688,700
----------
Transportation - Airlines 0.64%
9,800 Air Canada Inc.* 59,436
----------
Utilities - Electrical & Gas 3.45%
6,300 Transalta Corporation 83,595
11,900 Transcanada Pipelines Limited 167,870
3,500 Westcoast Energy Incorporated 68,372
----------
319,837
----------
TOTAL COMMON STOCK - BASKET
(Cost $8,245,910) 9,269,363
----------
Total Investments
(Cost $8,245,910)+ 100.00% $9,269,363
====== ==========
- ----------
* Non-income producing security.
+ Aggregate cost for Federal income tax purposes is $8,245,910.
The aggregate gross unrealized appreciation (depreciation) for all
securities is as follows:
Excess of value over tax cost $1,506,383
Excess of tax cost over value (482,930)
----------
$1,023,453
==========
See accompanying notes to financial statements.
25
<PAGE>
August 31, 1999
PORTFOLIO OF INVESTMENTS WEBS INDEX FUND, INC.
================================================================================
- ------------------------
France WEBS Index Series
- ------------------------
- ------------------------------------------------------------------------
NO. OF
SHARES SECURITY VALUE
- ------ -------- -----
COMMON STOCK - BASKET 95.62%
Aerospace & Military Technology 0.72%
15,011 Thomson CSF $ 548,622
----------
Automobiles 1.47%
6,052 PSA Peugeot Citroen 1,112,335
----------
Banking 2.55%
25,347 Banque Nationale de Paris 1,938,442
----------
Beverages & Tobacco 1.30%
7,803 Pernod Ricard 598,392
7,089 Societe Nationale D'Exploitation 386,387
----------
984,779
----------
Broadcasting & Publishing 1.32%
14,592 Canal Plus 1,004,963
----------
Building Materials &
Components 4.30%
10,200 Compagnie de Saint Gobain 1,971,691
12,053 Lafarge 1,294,803
----------
3,266,494
----------
Business & Public Services 11.39%
7,650 Cap Gemini 1,313,114
3,604 Sodexho Alliance 591,974
14,450 Suez Lyonnaise des Eaux 2,410,114
56,202 Vivendi 4,339,671
----------
8,654,873
----------
Chemicals 1.63%
8,075 Air Liquide 1,238,502
----------
Construction & Housing 1.45%
3,145 Bouygues 867,059
2,125 Groupe GTM 232,096
----------
1,099,155
----------
Electrical & Electronics 6.30%
16,575 Alcatel 2,538,687
3,383 Legrand 804,030
476 Sagem 301,680
16,966 Schneider 1,137,996
----------
4,782,393
----------
Energy Equipment & Services 0.05%
680 Compagnie Generale de
Geophysique* 41,265
----------
Energy Sources 10.32%
27,200 Elf Aquitaine 4,769,410
23,800 Total - Class B 3,067,075
----------
7,836,485
----------
Financial Services 0.51%
1,887 CPR 85,709
493 Societe Eurafrance 302,559
----------
388,268
----------
Food & Household Products 3.19%
3,230 Eridania Beghin-Say 427,164
8,075 Groupe Danone 1,997,639
----------
2,424,803
----------
Health & Personal Care 11.93%
1,309 Essilor International 436,933
7,480 L'OREAL 4,831,541
37,400 Rhone-Poulenc 1,814,100
47,600 Sanofi-Synthelabo 1,981,029
----------
9,063,603
----------
Industrial Components 1.94%
15,300 Michelin - Class B 662,779
10,047 Valeo 811,868
----------
1,474,647
----------
Insurance 4.87%
29,750 AXA 3,701,859
----------
Leisure & Tourism 2.19%
4,675 Accor 1,124,923
1,751 Club Mediterranee* 181,259
3,060 Pathe 355,551
----------
1,661,733
----------
Machinery & Engineering 0.90%
2,261 Compagnie Francaise d'Etudes
de Construction Technip 249,816
3,910 Sidel 432,425
----------
682,241
----------
Merchandising 12.00%
25,500 Carrefour 4,148,093
5,100 Casino Guichard Perrachon 537,097
12,325 Pinault-Printemps-Redoute 2,135,101
2,431 Promodes 2,293,106
----------
9,113,397
----------
Metals - Steel 0.65%
31,875 Usinor 493,260
----------
Miscellaneous Materials &
Commodities 0.43%
2,057 Imetal 327,660
----------
Multi-Industry 0.70%
13,073 Lagardere S.C.A. 530,266
----------
Real Estate 0.55%
2,295 Simco 201,816
1,581 Union du Credit-Bail Immobilier 217,937
----------
419,753
----------
Recreation - Other Consumer
Goods 4.26%
9,350 LVMH (Louis Vuitton Moet
Hennessy) 2,845,395
7,412 Societe BIC 388,333
----------
3,233,728
----------
Telecommunications 8.70%
84,864 France Telecom 6,606,609
----------
TOTAL COMMON STOCK - BASKET
(Cost $62,445,969) 72,630,135
----------
See accompanying notes to financial statements.
26
<PAGE>
August 31, 1999
PORTFOLIO OF INVESTMENTS WEBS INDEX FUND, INC.
================================================================================
- ------------------------------------
France WEBS Index Series (concluded)
- ------------------------------------
- ------------------------------------------------------------------------
NO. OF
SHARES SECURITY VALUE
- ------ -------- -----
COMMON STOCK -
NON-BASKET 4.38%
Banking 4.03%
14,391 Compagnie Financiere de Paribas $ 1,530,763
7,800 Societe Generale - Class A 1,526,714
-----------
3,057,477
-----------
Electrical & Electronics 0.09%
261 Sagem 67,683
7 Sagem - New 4,436
-----------
72,119
-----------
Recreation - Other Consumer
Goods 0.26%
660 LVMH (Louis Vuitton Moet
Hennessy) NB 200,851
-----------
TOTAL COMMON STOCK - NON-BASKET
(Cost $2,858,357) 3,330,447
-----------
Total Investments
(Cost $65,304,326)+ 100.00% $75,960,582
====== ===========
- ----------
* Non-income producing security.
+ Aggregate cost for Federal income tax purposes is $65,361,706.
The aggregate gross unrealized appreciation (depreciation) for all
securities is as follows:
Excess of value over tax cost $11,077,308
Excess of tax cost over value (478,432)
-----------
$10,598,876
===========
See accompanying notes to financial statements.
27
<PAGE>
August 31, 1999
PORTFOLIO OF INVESTMENTS WEBS INDEX FUND, INC.
================================================================================
- -------------------------
Germany WEBS Index Series
- -------------------------
- ------------------------------------------------------------------------
NO. OF
SHARES SECURITY VALUE
- ------ -------- -----
COMMON STOCK - BASKET 100.00%
Automobiles 11.01%
108,800 DaimlerChrysler $ 8,205,683
40,000 Volkswagen 2,412,591
13,600 Volkswagen - Preferred 469,758
------------
11,088,032
------------
Banking 10.85%
59,600 Bayerische Hypo Vereinsbank 3,531,805
64,000 Deutsche Bank 4,373,931
65,600 Dresdner Bank 3,021,189
------------
10,926,925
------------
Building Materials &
Components 1.14%
20,800 Buderus 351,537
7,920 Heidelberger Zement 798,944
------------
1,150,481
------------
Business & Public Services 4.14%
6,400 SAP 2,244,428
4,800 SAP Vorzug 1,926,693
------------
4,171,121
------------
Chemicals 7.60%
76,800 BASF 3,480,215
96,000 Bayer 4,172,811
------------
7,653,026
------------
Construction & Housing 0.57%
6,400 Bilfinger & Berger Bau 154,135
9,600 Hochtief 416,774
------------
570,909
------------
Electrical & Electronics 6.42%
76,800 Siemens 6,457,463
------------
Health & Personal Care 2.81%
12,800 Beiersdorf 861,265
26,400 Merck KGAA 897,940
9,600 Schering 1,066,779
------------
2,825,984
------------
Industrial Components 0.35%
15,200 Continental 350,016
------------
Insurance 13.23%
30,400 Allianz 8,005,408
8,000 AMB Aachener & Muenchener
Beteiligungs 676,033
4,000 Axa Colonia Konzern 388,719
22,400 Muenchener
Rueckversicherung (NEW) 4,254,273
------------
13,324,433
------------
Machinery & Engineering 1.49%
12,800 Linde 781,494
16,000 MAN 540,826
8,000 MAN - Preferred 172,811
------------
1,495,131
------------
Merchandising 2.96%
4,800 Douglas Holding 207,880
1,600 Karstadt 757,156
35,200 Metro 2,018,971
------------
2,984,007
------------
Metals - Steel 1.11%
48,000 Thyssen 1,120,524
------------
Miscellaneous Materials &
Commodities 0.23%
3,200 SGL Carbon 233,231
------------
Multi-Industry 1.36%
24,000 Preussag 1,366,431
------------
Recreation - Other Consumer
Goods 0.74%
8,000 Adidas-Salomon 743,636
------------
Telecommunications 23.84%
376,000 Deutsche Telekom 16,641,386
48,000 Mannesmann 7,361,994
------------
24,003,380
------------
Transportation - Airlines 1.18%
61,600 Deutsche Lufthansa 1,190,747
------------
Utilities - Electrical & Gas 8.97%
61,520 RWE 2,654,581
22,800 RWE - Preferred 727,327
60,800 VEBA 3,872,652
83,200 Viag 1,770,867
------------
9,025,427
------------
TOTAL COMMON STOCK - BASKET
(Cost $99,603,410) $100,680,904
------------
Total Investments
(Cost $99,603,410)+ 100.00% $100,680,904
====== ============
- ----------
* Non-income producing security.
+ Aggregate cost for Federal income tax purposes is $100,013,218.
The aggregate gross unrealized appreciation (depreciation) for all
securities is as follows:
Excess of value over tax cost $ 8,675,876
Excess of tax cost over value (8,008,190)
------------
$ 667,686
============
See accompanying notes to financial statements.
28
<PAGE>
August 31, 1999
PORTFOLIO OF INVESTMENTS WEBS INDEX FUND, INC.
================================================================================
- ---------------------------
Hong Kong WEBS Index Series
- ---------------------------
- ------------------------------------------------------------------------
NO. OF
SHARES SECURITY VALUE
- ------ -------- -----
COMMON STOCK - BASKET 100.00%
Aerospace & Military Technology 0.96%
417,600 Hong Kong Aircraft Engineering
Company Limited $ 736,764
-----------
Banking 15.66%
1,078,800 Bank Of East Asia Limited 2,486,803
669,900 Hang Seng Bank Limited 7,570,150
487,200 Wing Lung Bank 2,014,001
-----------
12,070,954
-----------
Broadcasting & Publishing 4.03%
4,350,000 Oriental Press Group 560,192
1,566,000 South China Morning Post
Holdings Limited 993,220
348,000 Television Broadcasts Limited 1,550,610
-----------
3,104,022
-----------
Electrical & Electronics 2.55%
435,000 Johnson Electric Holdings Limited 1,960,671
-----------
Electronic Components,
Instruments 0.69%
3,045,000 Elec & Eltek International
Holdings Limited 533,302
-----------
Leisure & Tourism 2.54%
1,609,500 Hong Kong & Shanghai Hotels
Limited 1,274,716
870,000 Regal Hotels International Limited* 92,992
522,000 Shangri-La Asia Limited 591,562
-----------
1,959,270
-----------
Merchandising 1.15%
957,000 Giordano International Limited 887,344
-----------
Miscellaneous Materials &
Commodities 0.99%
348,000 Varitronix International Limited 766,342
-----------
Multi-Industry 21.57%
435,000 Hopewell Holdings Limited 302,503
1,305,000 Hutchison Whampoa Limited 12,730,355
696,000 Swire Pacific Limited - Class A 3,594,189
-----------
16,627,047
-----------
Real Estate 24.74%
348,000 Cheung Kong Holdings Limited 3,025,035
3,828,000 Chinese Estates Holdings Limited* 626,070
1,305,000 Hang Lung Development
Company Limited 1,504,115
870,000 Hysan Development Company
Limited 1,131,587
174,000 Miramar Hotel & Investment
Limited 188,224
1,479,000 New World Development
Company Limited 3,561,698
696,000 Sun Hung Kai Properties Limited 5,960,439
1,131,000 Wharf Holdings Limited 3,073,211
-----------
19,070,379
-----------
Telecommunications 12.01%
4,071,600 Hong Kong Telecommunications
Limited 9,254,590
-----------
Transportation - Airlines 3.45%
1,566,000 Cathay Pacific Airways Limited 2,662,031
-----------
Transportation - Shipping 0.52%
1,914,000 Shun Tak Holdings Limited 404,234
-----------
Utilities - Electrical & Gas 9.14%
739,500 CLP Holdings Limited 3,504,559
2,523,000 Hong Kong & China Gas Company
Limited 3,541,531
-----------
7,046,090
-----------
TOTAL COMMON STOCK - BASKET
(Cost $57,148,028) 77,083,040
-----------
COMMON STOCK -
NON-BASKET 0.00%
Financial Services 0.00%
276,000 Peregrine Investment Holdings
Limited*/** 0
-----------
TOTAL COMMON STOCK - NON-BASKET
(Cost $397,590) 0
-----------
Total Investments
(Cost $57,545,618)+ 100.00% $77,083,040
====== ===========
- ----------
* Non-income producing security.
** Fair valued security.
+ Aggregate cost for Federal income tax purposes is $62,026,344.
The aggregate gross unrealized appreciation (depreciation) for all
securities is as follows:
Excess of value over tax cost $15,604,382
Excess of tax cost over value (547,686)
-----------
$15,056,696
===========
See accompanying notes to financial statements.
29
<PAGE>
August 31, 1999
PORTFOLIO OF INVESTMENTS WEBS INDEX FUND, INC.
================================================================================
- -----------------------
Italy WEBS Index Series
- -----------------------
- ------------------------------------------------------------------------
NO. OF
SHARES SECURITY VALUE
- ------ -------- -----
COMMON STOCK - BASKET 100.00%
Automobiles 5.29%
69,138 Fiat SpA $ 2,244,958
54,000 Fiat SpA-Priv 850,185
-----------
3,095,143
-----------
Banking 19.48%
306,000 Banca Commerciale Italiana SpA 2,091,609
83,754 Banca Popolare di Milano SpA 610,439
446,544 Banco Intesa SpA 1,893,343
178,632 Banco Intesa SpA Rnc 360,396
198,000 Istituto Bancario San Paolo di
Torino SpA 2,666,841
108,000 Mediobanca SpA 1,118,103
576,000 Unicredito Italiano SpA 2,664,920
-----------
11,405,651
-----------
Broadcasting & Publishing 4.48%
36,000 Arnoldo Mondadori Editore SpA 581,506
230,058 Mediaset SpA 2,040,316
-----------
2,621,822
-----------
Building Materials &
Components 0.85%
36,000 Italcementi SpA 495,071
-----------
Construction & Housing 0.76%
85,572 Sirti SpA 443,000
-----------
Energy Sources 14.25%
1,386,000 ENI SpA 8,344,988
-----------
Food & Household Products 0.84%
382,302 Parmalat Finanziaria SpA 495,091
-----------
Industrial Components 1.47%
342,000 Pirelli SpA 858,703
-----------
Insurance 14.95%
142,020 Assicurazioni Generali SpA 4,811,008
810,000 Istituto Nazionale delle
Assicurazioni SpA 1,966,177
90,000 Riunione Adriatica di Sicurta SpA 846,857
68,436 Riunione Adriatica di Sicurta
SpA Rnc 561,252
53,928 Societa Assicuratrice Industriale
SpA 567,022
-----------
8,752,316
-----------
Merchandising 0.74%
54,072 La Rinascente SpA 431,399
-----------
Multi-Industry 2.44%
630,396 Montedison SPA 951,554
145,890 Montedison SpA Rnc 172,596
270,000 SNIA BPD SpA 304,024
-----------
1,428,174
-----------
Real Estate 0.72%
882,558 Unione Immobiliare SpA 420,630
-----------
Recreation - Other Consumer
Goods 0.77%
69,444 Bulgari SpA 453,840
-----------
Telecommunications 27.48%
564,804 Olivetti SpA* 1,314,913
1,152,000 Telecom Italia Mobile SpA 6,689,071
249,408 Telecom Italia Mobile SpA Rnc 866,750
630,000 Telecom Italia SpA 6,367,878
148,860 Telecom Italia SpA Rnc 849,887
-----------
16,088,499
-----------
Textiles & Apparel 1.48%
360,000 Benetton Group SpA 692,469
23,598 Marzotto SpA 176,455
-----------
868,924
-----------
Transportation - Airlines 0.80%
174,186 Alitalia SpA 466,422
-----------
Utilities - Electrical & Gas 3.20%
138,870 Edison SpA 1,161,480
170,334 Italgas SpA 712,139
-----------
1,873,619
-----------
TOTAL COMMON STOCK - BASKET
(Cost $52,292,226) 58,543,292
-----------
COMMON STOCK -
NON-BASKET 0.00%
Automobiles 0.00%
11 Fiat SPA 357
-----------
Multi-Industry 0.00%
9 Montedison SPA 14
-----------
TOTAL COMMON STOCK - NON-BASKET
(Cost $374) 371
-----------
Total Investments
(Cost $52,292,600)+ 100.00% $58,543,663
====== ===========
- ----------
* Non-income producing security.
+ Aggregate cost for Federal income tax purposes is $53,029,375.
The aggregate gross unrealized appreciation (depreciation) for all
securities is as follows:
Excess of value over tax cost $ 6,815,848
Excess of tax cost over value (1,301,560)
-----------
$ 5,514,288
===========
See accompanying notes to financial statements.
30
<PAGE>
August 31, 1999
PORTFOLIO OF INVESTMENTS WEBS INDEX FUND, INC.
================================================================================
- -----------------------
Japan WEBS Index Series
- -----------------------
- ------------------------------------------------------------------------
NO. OF
SHARES SECURITY VALUE
- ------ -------- -----
COMMON STOCK - BASKET 99.99%
Appliances & Household
Durables 7.17%
810,000 Matsushita Electric Industrial
Company Limited $ 15,956,952
90,000 Pioneer Corporation 1,594,054
810,000 Sanyo Electric Company Limited 3,509,052
450,000 Sharp Corporation 6,853,938
180,000 Sony Corporation 23,278,763
------------
51,192,759
------------
Automobiles 8.39%
360,000 Honda Motor Company Limited 14,446,623
990,000 Nissan Motor Company Limited* 5,760,591
1,350,000 Toyota Motor Corporation 39,769,255
------------
59,976,469
------------
Banking 13.33%
810,000 Asahi Bank Limited 4,949,610
450,000 Ashikaga Bank Limited 923,435
1,620,000 Bank Of Tokyo-Mitsubishi Limited 24,157,052
450,000 Bank Of Yokohama Limited 1,395,412
360,000 Chiba Bank Limited 1,349,446
990,000 Fuji Bank Limited 10,202,928
180,000 Gunma Bank Limited 1,165,580
270,000 Hokuriku Bank Limited* 544,211
990,000 Industrial Bank of Japan Limited 10,067,491
360,000 Joyo Bank Limited 1,444,662
540,000 Mitsubishi Trust & Banking
Corporation 5,663,733
450,000 Mitsui Trust & Banking Company
Limited 927,539
1,260,000 Sakura Bank Limited 6,665,147
180,000 Seventy-Seven Bank Limited 1,758,220
360,000 Shizuoka Bank Limited 3,939,988
1,080,000 Sumitomo Bank Limited 14,774,956
720,000 Tokai Bank Limited 4,570,386
90,000 Yamaguchi Bank Limited 701,810
------------
95,201,606
------------
Beverages & Tobacco 1.25%
180,000 Asahi Breweries Limited 2,731,725
450,000 Kirin Brewery Company Limited 5,458,525
180,000 Sapporo Breweries Limited 755,164
------------
8,945,414
------------
Building Materials &
Components 1.04%
180,000 Inax Corporation 1,326,463
180,000 Sekisui Chemical Company
Limited 1,001,414
90,000 Sumitomo Forestry Company
Limited 712,481
450,000 Taiheiyo Cement Corporation 1,177,892
90,000 Tostem Corporation 1,846,869
180,000 Toto Limited 1,329,746
------------
7,394,865
------------
Business & Public Services 1.62%
270,000 Dai Nippon Printing Company
Limited 4,407,862
180,000 Kamigumi Company Limited 1,083,497
90,000 Kokuyo Company Limited 1,600,620
90,000 Mitsubishi Logistics Corporation 1,009,622
270,000 Toppan Printing Company Limited 3,447,490
------------
11,549,091
------------
Chemicals 3.20%
540,000 Asahi Chemical Industry Company
Limited 2,881,116
360,000 Dainippon Ink & Chemicals
Incorporated 1,395,412
180,000 Kuraray Company Limited 2,160,427
900,000 Mitsubishi Chemical Corporation 3,020,658
270,000 Mitsubishi Rayon Company Limited 760,910
90,000 Shin-Etsu Chemical Company
Limited 3,660,906
450,000 Showa Denko 615,623
630,000 Sumitomo Chemical Company
Limited 3,229,149
360,000 Teijin Limited 1,526,745
540,000 Toray Industries Incorporated 2,767,842
270,000 Tosoh Corporation 849,560
------------
22,868,348
------------
Construction & Housing 2.10%
180,000 Daiwa House Industry Company
Limited 1,805,828
630,000 Kajima Corporation 2,717,771
90,000 Kandenko Company Limited 532,719
90,000 Kinden Corporation 902,914
630,000 Kumagai Gumi Company Limited* 660,769
180,000 Nishimatsu Construction Company
Limited 1,042,455
270,000 Obayashi Corporation 1,455,333
270,000 Sekisui House Limited 2,898,354
450,000 Shimizu Corporation 2,006,931
450,000 Taisei Corporation 1,005,518
------------
15,028,592
------------
Data Processing & Reproduction 4.05%
360,000 Canon Incorporated 10,506,635
630,000 Fujitsu Limited 18,444,069
------------
28,950,704
------------
Electrical & Electronics 3.99%
1,260,000 Hitachi Limited 12,767,203
90,000 Makita Corportion 1,067,080
810,000 Mitsubishi Electric Corporation 4,092,663
540,000 NEC Corporation 8,766,474
90,000 Omron Corporation 1,834,557
------------
28,527,977
------------
Electronic Components,
Instruments 4.37%
90,000 Fanuc Limited 5,417,484
90,000 Kyocera Corporation 5,909,982
90,000 Murata Manufacturing Company
Limited 7,223,312
180,000 Nikon Corporation 3,046,924
180,000 Olympus Optical Company Limited 2,677,550
90,000 Tokyo Electron Limited 6,320,398
90,000 Yokogawa Electric Corporation 627,936
------------
31,223,586
------------
Energy Sources 0.54%
270,000 Cosmo Oil Company Limited 492,499
450,000 Japan Energy Corporation 574,582
630,000 Nippon Mitsubishi Oil Corporation 2,786,721
------------
3,853,802
------------
See accompanying notes to financial statements.
31
<PAGE>
August 31, 1999
PORTFOLIO OF INVESTMENTS WEBS INDEX FUND, INC.
================================================================================
- -----------------------------------
Japan WEBS Index Series (continued)
- -----------------------------------
- ------------------------------------------------------------------------
NO. OF
SHARES SECURITY VALUE
- ------ -------- -----
Financial Services 3.72%
90,000 Acom Company Limited $ 9,119,431
90,000 Credit Saison Company Limited 2,027,452
540,000 Daiwa Securities Group
Incorporated 4,880,660
720,000 Nomura Securities Company Limited 10,539,468
-----------
26,567,011
-----------
Food & Household Products 2.01%
270,000 Ajinomoto Company Incorporated 3,080,578
180,000 Kao Corporation 5,105,568
180,000 Meiji Seika Incorporated 1,346,163
90,000 Nippon Meat Packers Incorporated 1,231,246
90,000 Nissin Food Products Company
Limited 2,380,409
90,000 Yamazaki Baking Company Limited 1,190,205
-----------
14,334,169
-----------
Forest Products & Paper 0.77%
360,000 Nippon Paper Industries Company 2,363,993
450,000 Oji Paper Company Limited 3,119,157
-----------
5,483,150
-----------
Health & Personal Care 5.56%
90,000 Daiichi Pharmaceutical Company
Limited 1,388,025
90,000 Eisai Company Limited 2,076,702
180,000 Kyowa Hakko Kogyo Company
Limited 1,362,579
180,000 Sankyo Company Limited 5,007,068
180,000 Shionogi & Company Limited 1,543,162
180,000 Shiseido Company Limited 2,511,742
90,000 Taisho Pharmaceutical Company
Limited 3,784,030
360,000 Takeda Chemical Industries 18,058,279
90,000 Yamanouchi Pharmaceutical
Company Limited 4,005,655
-----------
39,737,242
-----------
Industrial Components 4.32%
270,000 Bridgestone Corporation 7,633,727
360,000 Denso Corporation 8,011,309
180,000 Fujikura Limited 1,152,447
270,000 Furukawa Electric Company
Limited 1,526,745
180,000 Minebea Company Limited 2,166,993
180,000 NGK Insulators Limited 1,887,911
90,000 NGK Spark Plug Company Limited 922,614
270,000 NSK Limited 1,733,595
270,000 NTN Corporation 935,747
360,000 Sumitomo Electric Industries 4,892,152
-----------
30,863,240
-----------
Insurance 2.03%
360,000 Mitsui Marine & Fire Insurance
Company Limited 1,973,277
180,000 Nichido Fire & Marine Insurance
Company Limited 861,872
270,000 Nippon Fire & Marine Insurance
Company Limited 886,497
360,000 Sumitomo Marine & Fire Insurance
Company Limited 2,331,160
720,000 Tokio Marine & Fire Insurance
Company Limited 8,470,975
-----------
14,523,781
-----------
Leisure & Tourism 0.07%
90,000 Tokyo Dome Corporation* 505,632
-----------
Machinery & Engineering 3.02%
180,000 Amada Company Limited 1,510,329
180,000 Daikin Industries Limited 1,969,994
90,000 Ebara Corporation 1,108,122
450,000 Hitachi Zosen Corporation* 529,436
540,000 Kawasaki Heavy Industries Limited 1,231,246
450,000 Komatsu Limited 2,872,908
630,000 Kubota Corporation 1,988,052
90,000 Kurita Water Industries Limited 1,630,170
1,260,000 Mitsubishi Heavy Industries Limited 5,481,509
540,000 Mitsui Engineering & Shipbuilding
Company Limited* 581,148
360,000 Sumitomo Heavy Industries Limited* 1,208,263
90,000 Toyoda Automatic Loom Works
Limited 1,470,929
-----------
21,582,106
-----------
Merchandising 3.45%
270,000 Daiei Incorporated* 1,149,984
90,000 Hankyu Department Stores 625,473
90,000 Isetan Company Limited
Incorporated 800,310
180,000 Ito-Yokado Company Limited 13,231,794
90,000 Jusco Company Limited 1,731,953
180,000 Marui Company Limited 3,004,241
180,000 Mitsukoshi Limited* 1,067,080
90,000 Mycal Corporation 541,748
90,000 Seiyu Limited* 453,099
90,000 Takashimaya Company Limited 804,414
90,000 Uny Company Limited 1,231,246
-----------
24,641,342
-----------
Metals - Non Ferrous 0.34%
450,000 Mitsubishi Materials Corporation* 1,268,184
360,000 Nippon Light Metal Company
Limited 495,782
180,000 Sumitomo Metal Mining Company 699,348
-----------
2,463,314
-----------
Metals - Steel 1.56%
810,000 Kawasaki Steel Corporation 1,846,869
2,340,000 Nippon Steel Corporation 6,125,040
1,260,000 NKK Corporation* 1,172,146
1,170,000 Sumitomo Metal Industries Limited* 1,568,608
90,000 Tokyo Steel Manufacturing
Company Limited 420,265
-----------
11,132,928
-----------
Miscellaneous Materials &
Commodities 1.15%
450,000 Asahi Glass Company Limited 2,840,075
90,000 Nitto Denko Corporation 2,487,118
90,000 Toyo Seikan Kaisha Limited 2,093,119
360,000 Ube Industries Limited 794,564
-----------
8,214,876
-----------
Real Estate 1.09%
540,000 Mitsubishi Estate Company Limited 5,575,083
270,000 Mitsui Fudosan Company Limited 2,194,081
-----------
7,769,164
-----------
See accompanying notes to financial statements.
32
<PAGE>
August 31, 1999
PORTFOLIO OF INVESTMENTS WEBS INDEX FUND, INC.
================================================================================
- -----------------------------------
Japan WEBS Index Series (concluded)
- -----------------------------------
- ------------------------------------------------------------------------
NO. OF
SHARES SECURITY VALUE
- ------ -------- -----
Recreation - Other Consumer
Goods 1.85%
180,000 Casio Computer Company Limited $ 1,250,946
180,000 Citizen Watch Company Limited 1,546,445
180,000 Fuji Photo Film Company 6,566,647
180,000 Konica Corporation 723,973
90,000 Shimano Incorporated 2,150,577
90,000 Yamaha Corporation 984,997
------------
13,223,585
------------
Telecommunications 7.21%
45,900 Nippon Telegraph & Telephone
Corporation 51,490,720
------------
Textiles & Apparel 0.21%
90,000 Nisshinbo Industries Incorporated 468,694
630,000 Toyobo Company Limited 1,005,518
------------
1,474,212
------------
Transportation - Airlines 0.39%
720,000 Japan Airlines Company Limited 2,764,558
------------
Transportation - Road & Rail 3.73%
1,440 East Japan Railway Company 8,707,374
450,000 Hankyu Corporation 1,596,516
180,000 Keihin Electric Express Railway
Company Limited 645,173
540,000 Kinki Nippon Railway Company Limited 2,698,892
360,000 Nagoya Railroad Company Limited 1,073,647
270,000 Nankai Electric Railway Company Limited 1,108,122
360,000 Nippon Express Company Limited 2,748,142
270,000 Odakyu Electric Railway Company 866,797
90,000 Seino Transportation Company Limited 572,940
360,000 Tobu Railway Company Limited 1,113,047
450,000 Tokyu Corporation 1,181,996
180,000 Yamato Transport Company Limited 4,350,404
------------
26,663,050
------------
Transportation - Shipping 0.42%
540,000 Mitsui O.S.K. Lines Limited 1,034,247
540,000 Nippon Yusen Kabushiki Kaisha 1,969,994
------------
3,004,241
------------
Utilities - Electrical & Gas 3.94%
360,000 Kansai Electric Power Company
Incorporated 6,894,979
990,000 Osaka Gas Company Limited 3,160,199
180,000 Tohoku Electric Power Company
Incorporated 2,856,491
540,000 Tokyo Electric Power Company 12,558,712
1,080,000 Tokyo Gas Company Limited 2,659,492
------------
28,129,873
------------
Wholesale & International Trade 2.10%
540,000 Itochu Corporation 1,649,870
540,000 Marubeni Corporation 1,275,571
540,000 Mitsubishi Corporation 4,486,662
720,000 Mitsui & Company Limited 5,062,885
360,000 Sumitomo Corporation 2,560,992
------------
15,035,980
------------
TOTAL COMMON STOCK - BASKET
(Cost $618,935,784) 714,317,387
------------
COMMON STOCK -
NON-BASKET 0.01%
Electronic Components,
Instruments 0.01%
352 Tokyo Electron Limited 24,720
------------
Energy Sources 0.00%
500 Nippon Mitsubishi Oil Corporation 2,211
------------
Financial Services 0.00%
400 Credit Saison Company Limited 9,011
------------
TOTAL COMMON STOCK - NON-BASKET
(Cost $21,578) 35,942
------------
Total Investments
(Cost $618,957,362)+ 100.00% $714,353,329
====== ============
- ----------
* Non-income producing security.
+ Aggregate cost for Federal income tax purposes is $624,313,812.
The aggregate gross unrealized appreciation (depreciation) for all
securities is as follows:
Excess of value over tax cost $ 99,918,660
Excess of tax cost over value (9,879,143)
------------
$ 90,039,517
============
See accompanying notes to financial statements.
33
<PAGE>
August 31, 1999
PORTFOLIO OF INVESTMENTS WEBS INDEX FUND, INC.
================================================================================
- ---------------------------------
Malaysia (Free) WEBS Index Series
- ---------------------------------
- ------------------------------------------------------------------------
NO. OF
SHARES SECURITY VALUE
- ------ -------- -----
COMMON STOCK - BASKET 99.68%
Automobiles 5.41%
454,000 Edaran Otomobil Nasional $ 1,672,632
454,000 Oriental Holdings 997,605
681,000 Perusahaan Otomobil Nasional 1,353,039
1,589,000 Tan Chong Motor Holdings 945,037
-----------
4,968,313
-----------
Banking 17.40%
1,135,000 Commerce Asset Holdings 2,613,487
2,951,000 Malayan Banking 9,707,237
2,043,000 Public Bank 1,924,721
2,043,000 RHB Capital* 1,741,926
-----------
15,987,371
-----------
Beverages & Tobacco 4.82%
1,135,000 Guinness Anchor 1,266,421
454,000 Rothmans of Pall Mall 3,166,053
-----------
4,432,474
-----------
Broadcasting & Publishing 1.08%
454,000 New Straits Times Press* 991,632
-----------
Building Materials &
Components 1.90%
681,000 Hume Industries (Malaysia) 663,079
908,000 Malayan Cement 296,295
2,043,000 Pan Malaysia Corporation 790,318
-----------
1,749,692
-----------
Construction & Housing 3.64%
227,000 Ekran* 107,526
1,589,000 YTL Corporation 3,240,724
-----------
3,348,250
-----------
Electrical & Electronics 0.27%
681,000 Time Engineering* 247,310
-----------
Electronic Components,
Instruments 1.77%
454,000 Malaysian Pacific Industries 1,624,842
-----------
Energy Sources 0.95%
681,000 Shell Refining Company 874,547
-----------
Financial Services 2.48%
681,000 AMMB Holdings 1,218,632
1,135,000 MBF Capital* 382,316
908,000 Rashid Hussain 673,832
-----------
2,274,780
-----------
Food & Household Products 2.69%
454,000 Nestle (Malaysia) 1,756,263
681,000 Perlis Plantations 713,258
-----------
2,469,521
-----------
Industrial Components 0.39%
908,000 Leader Universal Holdings* 363,200
-----------
Leisure & Tourism 8.47%
2,951,000 Magnum Corporation 2,593,774
2,043,000 Resorts World 5,188,145
-----------
7,781,919
-----------
Machinery & Engineering 1.60%
681,000 UMW Holdings 1,469,526
-----------
Metals - Steel 0.71%
2,497,000 Amsteel Corporation 653,820
-----------
Miscellaneous Materials &
Commodities 5.09%
2,043,000 Golden Hope Plantations 1,677,410
1,589,000 Highlands & Lowlands 965,945
681,000 IOI Corporation* 413,976
227,000 Kian Joo Can Factory 409,197
908,000 Kuala Lumpur Kepong 1,206,684
-----------
4,673,212
-----------
Multi-Industry 9.49%
3,178,000 Berjaya Group 928,310
454,000 Land & General* 259,258
1,816,000 Malaysia Mining Corporation 855,432
1,589,000 Multi-Purpose Holdings* 961,763
2,724,000 Sime Darby 3,584,211
1,135,000 United Engineers (Malaysia)* 2,135,592
-----------
8,724,566
-----------
Real Estate 1.80%
2,043,000 Hong Leong Properties 639,782
1,135,000 Malaysian Resources Corporation* 1,015,526
-----------
1,655,308
-----------
Telecommunications 14.75%
2,043,000 Technology Resources Industries 1,403,218
4,086,000 Telekom Malaysia 12,150,474
-----------
13,553,692
-----------
Transportation - Airlines 0.83%
681,000 Malaysian Airline System 763,437
-----------
Transportation - Shipping 3.39%
2,043,000 Malaysia International Shipping 3,118,263
-----------
Utilities - Electrical & Gas 10.75%
4,313,000 Tenaga Nasional 9,874,500
-----------
TOTAL COMMON STOCK - BASKET
(Cost $69,800,040) 91,600,175
-----------
COMMON STOCK -
NON-BASKET 0.32%
Building Materials &
Components 0.10%
5,448,000 Malayan Cement Berhad Rights*
expiration 9/9/99 93,189
-----------
Financial Services 0.22%
1,135,000 Idris Hydraulic (Malaysia)*/** 198,625
-----------
Metals - Steel 0.00%
35,944 Silverstone BHD*/** 0
-----------
TOTAL COMMON STOCK - NON-BASKET
(Cost $511,737) 291,814
-----------
Total Investments
(Cost $70,311,777)+ 100.00% $91,891,989
====== ===========
- ----------
* Non-income producing security.
** Fair valued security.
+ Aggregate cost for Federal income tax purposes is $72,936,931.
The aggregate gross unrealized appreciation (depreciation) for all
securities is as follows:
Excess of value over tax cost $23,657,753
Excess of tax cost over value (4,702,695)
-----------
$18,955,058
===========
See accompanying notes to financial statements.
34
<PAGE>
August 31, 1999
PORTFOLIO OF INVESTMENTS WEBS INDEX FUND, INC.
================================================================================
- -------------------------------
Mexico (Free) WEBS Index Series
- -------------------------------
- ------------------------------------------------------------------------
NO. OF
SHARES SECURITY VALUE
- ------ -------- -----
COMMON STOCK - BASKET 100.00%
Banking 6.23%
16,000 Grupo Financiero Banamex
Accival SA de CV - Series L* $ 28,406
368,000 Grupo Financiero Banamex
Accival SA de CV - Series O* 708,449
1,552,000 Grupo Financiero Bancomer SA
de CV - Series O 378,456
176,000 Grupo Financiero Banorte SA
de CV - Series O* 210,824
-----------
1,326,135
-----------
Beverages & Tobacco 18.83%
304,000 Fomento Economico Mexicano
SA de CV - Series UBD 999,786
156,800 Grupo Continental SA 216,334
768,000 Grupo Modelo SA de CV -
Series C 2,057,583
128,000 Savia SA de CV* 736,513
-----------
4,010,216
-----------
Broadcasting & Publishing 6.79%
80,000 Grupo Televisa SA - Series CPO* 1,445,989
-----------
Building Materials &
Components 6.75%
80,000 Apasco SA de CV 440,642
80,000 Cemex SA de CV - Series A 356,791
96,000 Cemex SA de CV - Series B 427,123
48,000 Cemex SA de CV - Series CPO 212,535
-----------
1,437,091
-----------
Chemicals 0.32%
48,000 Cydsa SA de CV - Series A 68,791
-----------
Construction & Housing 1.05%
32,000 Corporacion GEO SA de CV -
Series B* 106,267
192,000 Empresas ICA Sociedad
Controladora SA de CV 118,280
-----------
224,547
-----------
Energy Equipment & Services 0.87%
16,000 Tubos de Acero de Mexico SA 185,669
-----------
Financial Services 0.75%
1,488,000 Grupo Financiero Probursa
SA de CV - Series B* 159,144
-----------
Food & Household Products 4.90%
112,000 Grupo Herdez SA - Series B* 34,019
400,000 Grupo Industrial Bimbo
SA de CV - Series A 843,636
256,000 Grupo Industrial Maseca
SA de CV - Series B 165,921
-----------
1,043,576
-----------
Health & Personal Care 4.54%
304,000 Kimberly-Clark de Mexico
SA de CV - Series A 965,647
-----------
Merchandising 9.82%
128,000 Cifra SA de CV - Series C* 194,396
880,000 Cifra SA de CV - Series V* 1,460,706
288,000 Controladora Comercial
Mexicana SA de CV - Series UBC 271,059
352,000 Grupo Elektra SA de CV -
Series CPO 164,141
-----------
2,090,302
-----------
Metals - Non Ferrous 5.59%
176,000 Grupo Mexico SA - Series B 763,294
160,000 Industrias Penoles SA - Series CPO 427,808
-----------
1,191,102
-----------
Miscellaneous Materials &
Commodities 0.64%
96,000 Vitro SA - Series A 136,556
-----------
Multi-Industry 8.70%
144,000 Alfa SA de CV - Series A 546,738
400,000 Desc SA de CV - Series B 372,193
240,000 Grupo Carso SA de CV - Series A1* 933,048
-----------
1,851,979
-----------
Telecommunications 24.22%
256,000 Telefonos de Mexico SA -
Series A 948,706
1,136,000 Telefonos de Mexico SA -
Series L 4,209,882
-----------
5,158,588
-----------
TOTAL COMMON STOCK - BASKET
(Cost $20,830,535) 21,295,332
-----------
Total Investments
(Cost $20,830,535)+ 100.00% $21,295,332
====== ===========
- ----------
* Non-income producing security.
+ Aggregate cost for Federal income tax purposes is $20,871,167.
The aggregate gross unrealized appreciation (depreciation) for all
securities is as follows:
Excess of value over tax cost $ 2,059,186
Excess of tax cost over value (1,635,021)
-----------
$ 424,165
===========
See accompanying notes to financial statements.
35
<PAGE>
August 31, 1999
PORTFOLIO OF INVESTMENTS WEBS INDEX FUND, INC.
================================================================================
- -----------------------------
Netherlands WEBS Index Series
- -----------------------------
- ------------------------------------------------------------------------
NO. OF
SHARES SECURITY VALUE
- ------ -------- -----
COMMON STOCK - BASKET 100.00%
Appliances & Household
Durables 4.81%
14,904 Philips Electronics $ 1,535,740
-----------
Banking 5.35%
70,200 ABN Amro Holding 1,709,211
-----------
Beverages & Tobacco 4.00%
25,650 Heineken 1,278,842
-----------
Broadcasting & Publishing 5.14%
48,600 Elsevier 559,565
29,160 Wolters Klumer - CVA 1,084,221
-----------
1,643,786
-----------
Business & Public Services 6.53%
16,119 Getronics 789,179
43,200 TNT Post Group 1,065,512
13,500 Vedior 233,152
-----------
2,087,843
-----------
Chemicals 3.70%
25,380 Akzo Nobel 1,180,933
-----------
Construction & Housing 1.23%
19,710 Hollandsche Beton Groep 233,181
3,429 IHC Caland 161,363
-----------
394,544
-----------
Data Processing & Reproduction 2.65%
39,825 Oce 845,550
-----------
Energy Equipment & Services 0.85%
10,530 Koninklijke Pakhoed 270,841
-----------
Energy Sources 22.38%
116,370 Royal Dutch/Shell Group 7,154,045
-----------
Financial Services 8.71%
50,760 Ing Groep 2,782,765
-----------
Food & Household Products 6.20%
28,485 Unilever 1,981,343
-----------
Insurance 9.86%
36,045 Aegon 3,152,557
-----------
Machinery & Engineering 1.71%
25,353 Stork 547,659
-----------
Merchandising 4.84%
43,200 Koninklijke Ahold 1,546,931
-----------
Metals - Steel 1.47%
8,100 Koninklijke Hoogovens 468,443
-----------
Telecommunications 4.92%
35,100 Koninklijke Kpn 1,572,029
-----------
Transportation - Airlines 1.97%
22,950 KLM - Koninklijke Luchvaart Mij 630,295
-----------
Transportation - Road & Rail 0.96%
10,800 Koninklijke Nedlloyd 308,017
-----------
Wholesale & International
Trade 2.72%
15,120 Buhrmann 266,720
24,300 Hagemeyer 603,201
-----------
869,921
-----------
TOTAL COMMON STOCK - BASKET
(Cost $31,660,520) 31,961,295
-----------
Total Investments
(Cost $31,660,520)+ 100.00% $31,961,295
====== ===========
- ----------
+ Aggregate cost for Federal income tax purposes is $31,982,325.
The aggregate gross unrealized appreciation (depreciation) for all
securities is as follows:
Excess of value over tax cost $ 2,183,296
Excess of tax cost over value (2,204,326)
-----------
$ (21,030)
===========
See accompanying notes to financial statements.
36
<PAGE>
August 31, 1999
PORTFOLIO OF INVESTMENTS WEBS INDEX FUND, INC.
================================================================================
- ----------------------------------
Singapore (Free) WEBS Index Series
- ----------------------------------
- ------------------------------------------------------------------------
NO. OF
SHARES SECURITY VALUE
- ------ -------- -----
COMMON STOCK - BASKET 98.58%
Automobiles 1.77%
286,000 Cycle & Carriage Limited $ 1,613,133
286,000 Inchcape Motors Limited 387,152
------------
2,000,285
------------
Banking 23.09%
858,000 Development Bank of Singapore
Limited 9,831,621
1,573,000 Oversea-Chinese Banking
Corporation Limited 11,020,246
715,000 United Overseas Bank
Limited 5,306,359
------------
26,158,226
------------
Beverages & Tobacco 2.40%
715,000 Fraser & Neave Limited 2,716,856
------------
Broadcasting & Publishing 4.20%
286,000 Singapore Press Holdings
Limited 4,754,497
------------
Business & Public Services 1.06%
572,000 Parkway Holdings Limited 1,202,209
------------
Electronic Components,
Instruments 2.46%
143,000 Creative Technology Limited 1,417,859
143,000 Venture Manufacturing
(Singapore) Limited 1,366,918
------------
2,784,777
------------
Leisure & Tourism 3.22%
572,000 Hotel Properties Limited 526,391
429,000 Overseas Union Enterprise
Limited 1,207,303
858,000 Shangri-La Hotel Limited 1,915,383
------------
3,649,077
------------
Machinery & Engineering 3.80%
3,575,000 Singapore Technologies
Engineering Limited 4,308,763
------------
Merchandising 0.40%
143,000 Robinson & Company Limited 449,979
------------
Metals - Steel 0.54%
286,000 Natsteel Limited 607,896
------------
Multi-Industry 10.34%
572,000 Haw Par Corporation Limited 950,900
1,430,000 Keppel Corporation Limited 4,627,145
2,574,000 Sembcorp Industries Limited 3,423,238
2,288,000 Straits Trading Company Limited 2,716,856
------------
11,718,139
------------
Real Estate 13.40%
858,000 City Developments Limited 5,195,986
2,002,000 DBS Land Limited 4,564,318
429,000 First Capital Corporation Limited 596,010
4,004,000 United Industrial Corporation
Limited 2,294,045
2,717,000 United Overseas Land Limited 2,532,619
------------
15,182,978
------------
Telecommunications 14.11%
9,008,994 Singapore Telecommunications
Limited 15,992,930
------------
Transportation - Airlines 11.84%
1,430,000 Singapore Airlines Limited 13,414,475
------------
Transportation - Road & Rail 2.36%
5,291,000 Comfort Group Limited* 2,670,160
------------
Transportation - Shipping 3.59%
3,146,000 Neptune Orient Lines Limited* 4,071,887
------------
TOTAL COMMON STOCK - BASKET
(Cost $79,962,515) 111,683,134
------------
COMMON STOCK -
NON-BASKET 1.42%
Banking 1.41%
139,854 Development Bank of Singapore
Limited 1,602,554
------------
Broadcasting & Publishing 0.01%
700 Singapore Press Holdings
Limited 11,637
------------
TOTAL COMMON STOCK - NON-BASKET
(Cost $1,010,605) 1,614,191
------------
Total Investments
(Cost $80,973,120)+ 100.00% $113,297,325
====== ============
- ----------
* Non-income producing security.
+ Aggregate cost for Federal income tax purposes is $85,340,163.
The aggregate gross unrealized appreciation (depreciation) for all
securities is as follows:
Excess of value over tax cost $ 29,338,368
Excess of tax cost over value (1,381,206)
------------
$ 27,957,162
============
See accompanying notes to financial statements.
37
<PAGE>
August 31, 1999
PORTFOLIO OF INVESTMENTS WEBS INDEX FUND, INC.
================================================================================
- -----------------------
Spain WEBS Index Series
- -----------------------
- ------------------------------------------------------------------------
NO. OF
SHARES SECURITY VALUE
- ------ -------- -----
COMMON STOCK - BASKET 99.90%
Banking 28.20%
76,000 Argentaria Corp SA $ 1,730,010
266,000 Banco Bilbao Vizcaya SA 3,545,917
535,154 Banco Santander Central
Hispano SA 5,375,847
-----------
10,651,774
-----------
Beverages & Tobacco 3.15%
21,166 El Aguila SA* 203,455
51,300 Tabacalera SA 984,600
-----------
1,188,055
-----------
Building Materials &
Components 1.49%
13,300 Portland Valderrivas SA 393,507
19,000 Uralita SA 167,381
-----------
560,888
-----------
Business & Public Services 4.76%
47,880 Aguas de Barcelona 788,981
76,000 Autopistas Concesionaria
Espanola SA 850,153
16,112 Prosegur Cia de Seguridad SA 158,959
-----------
1,798,093
-----------
Chemicals 0.26%
126,977 Ercros SA* 96,571
-----------
Construction & Housing 4.96%
9,500 Actividades de Construccion y
Servicios SA 265,823
17,100 Fomento de Construcciones y
Contratas SA 1,014,223
48,279 Groupo Dragados 593,097
-----------
1,873,143
-----------
Energy Sources 5.16%
93,100 Repsol SA 1,950,114
-----------
Food & Household Products 1.48%
24,491 Azucarera Ebro Agricolas SA 360,626
380,000 Puleva SA* 196,683
-----------
557,309
-----------
Forest Products & Paper 0.40%
7,600 Empresa Nacional de Celulosas
SA 152,530
-----------
Health & Personal Care 0.61%
19,000 Fabrica Espanola de Productos
y Farmaceuticos SA 231,805
-----------
Insurance 1.05%
21,128 Corporacion Mapfre 398,368
-----------
Leisure & Tourism 1.55%
28,500 Sol Melia SA 388,048
38,000 TelePizza SA* 198,289
-----------
586,337
-----------
Machinery & Engineering 1.17%
17,100 Zardoya Otis SA 442,718
-----------
Merchandising 1.44%
19,000 Cortefiel SA 542,284
-----------
Metals - Non Ferrous 0.69%
19,000 Asturiana de Zinc* 260,505
-----------
Metals - Steel 1.46%
16,625 Acerinox SA 550,713
-----------
Miscellaneous Materials &
Commodities 1.01%
38,000 Viscofan 381,325
-----------
Multi-Industry 1.93%
24,738 Corporacion Financiera Alba 727,742
-----------
Real Estate 2.89%
9,937 Metrovacesa SA 213,603
46,322 Urbis Ser 1, 2, 3 296,026
62,244 Vallehermoso SA 581,873
-----------
1,091,502
-----------
Telecommunications 20.75%
491,454 Telefonica SA* 7,838,761
-----------
Utilities - Electrical & Gas 15.49%
79,800 Endesa SA 1,601,563
68,400 Gas Natural SDG SA 1,609,029
114,000 Iberdrola SA 1,637,689
70,300 Union Electrica Fenosa SA 1,002,482
-----------
5,850,763
-----------
TOTAL COMMON STOCK - BASKET
(Cost $37,862,990) 37,731,300
-----------
COMMON STOCK -
NON-BASKET 0.10%
Business & Public Services 0.10%
3,600 Autopistas Concesionaria
Espanola SA 39,465
-----------
Real Estate 0.00%
13 Metrovacesa SA 280
-----------
TOTAL COMMON STOCK - NON-BASKET
(Cost $54,060) 39,745
-----------
Total Investments
(Cost $37,917,050)+ 100.00% $37,771,045
====== ===========
- ----------
* Non-income producing security.
+ Aggregate cost for Federal income tax purposes is $37,917,050.
The aggregate gross unrealized appreciation (depreciation) for all
securities is as follows:
Excess of value over tax cost $ 2,484,700
Excess of tax cost over value (2,630,705)
-----------
$ (146,005)
===========
See accompanying notes to financial statements.
38
<PAGE>
August 31, 1999
PORTFOLIO OF INVESTMENTS WEBS INDEX FUND, INC.
================================================================================
- ------------------------
Sweden WEBS Index Series
- ------------------------
- ------------------------------------------------------------------------
NO. OF
SHARES SECURITY VALUE
- ------ -------- -----
COMMON STOCK - BASKET 100.00%
Appliances & Household
Durables 4.10%
42,000 Electrolux AB - B $ 844,170
-----------
Automobiles 7.35%
18,000 Volvo AB - A 506,720
36,000 Volvo AB - B 1,006,901
-----------
1,513,621
-----------
Banking 13.13%
57,600 ForeningsSparbanken AB 864,802
80,400 Skandinaviska Enskilda
Banken AB - A 832,328
64,800 Svenska Handelsbanken AB - A 898,365
8,400 Svenska Handelsbanken AB - B 107,810
-----------
2,703,305
-----------
Beverages & Tobacco 0.78%
39,600 Swedish Match AB 159,666
-----------
Business & Public Services 6.60%
10,800 Esselte AB - A 88,921
10,800 Esselte AB - B 90,883
42,000 Securitas AB - B 600,073
15,600 WM-Data AB - B 578,932
-----------
1,358,809
-----------
Chemicals 3.44%
20,400 AGA AB - A 344,569
21,600 AGA AB - B 364,838
-----------
709,407
-----------
Construction & Housing 2.05%
10,800 Skanska AB - B 422,376
-----------
Electrical & Electronics 24.77%
158,400 Ericsson LM - B 5,101,635
-----------
Financial Services 0.40%
7,200 Om Gruppen AB 81,511
-----------
Forest Products & Paper 3.05%
21,600 Svenska Cellulosa AB - B 627,679
-----------
Industrial Components 3.08%
14,400 SKF AB - A 306,865
14,400 SKF AB - B 327,788
-----------
634,653
-----------
Insurance 7.23%
73,200 Skandia Forsakrings AB 1,488,994
-----------
Machinery & Engineering 7.91%
12,000 Atlas Copco AB - A 345,805
4,800 Atlas Copco AB - B 136,869
27,600 Sandvik AB - A 751,907
14,400 Sandvik AB - B 394,915
-----------
1,629,496
-----------
Merchandising 10.59%
86,400 Hennes Mauritz AB - B 2,181,184
-----------
Metals - Steel 1.05%
10,800 SSAB Svenskt Stal AB - A 150,381
4,800 SSAB Svenskt Stal AB - B 65,674
-----------
216,055
-----------
Multi-Industry 1.46%
33,600 Trelleborg AB - B 301,053
-----------
Real Estate 0.45%
10,800 Drott AB - B 93,498
-----------
Telecommunications 2.56%
15,600 NetCom AB - B* 526,989
-----------
TOTAL COMMON STOCK - BASKET
(Cost $17,182,468) 20,594,101
-----------
Total Investments
(Cost $17,182,468)+ 100.00% $20,594,101
====== ===========
- ----------
* Non-income producing security.
+ Aggregate cost for Federal income tax purposes is $17,197,433.
The aggregate gross unrealized appreciation (depreciation) for all
securities is as follows:
Excess of value over tax cost $ 3,977,566
Excess of tax cost over value (580,898)
-----------
$ 3,396,668
============
See accompanying notes to financial statements.
39
<PAGE>
August 31, 1999
PORTFOLIO OF INVESTMENTS WEBS INDEX FUND, INC.
================================================================================
- -----------------------------
Switzerland WEBS Index Series
- -----------------------------
- ------------------------------------------------------------------------
NO. OF
SHARES SECURITY VALUE
- ------ -------- -----
COMMON STOCK - BASKET 100.00%
Banking 17.65%
2,480 Banque Cantonale Vaudoise $ 777,506
12,760 Credit Suisse Group 2,408,659
11,860 UBS AG 3,346,413
240 Vontobel Holding AG 396,013
-----------
6,928,591
-----------
Building Materials &
Components 6.16%
1,460 Forbo Holding AG 578,180
660 Holderbank Financiere Glarus
AG - Bearer 812,422
3,060 Holderbank Financiere Glarus
AG - Registered 1,028,011
-----------
2,418,613
-----------
Business & Public Services 3.16%
2,220 Adecco SA 1,223,484
60 SGS Societe Generale de
Surveillance Holding SA* 16,039
-----------
1,239,523
-----------
Chemicals 3.89%
260 EMS-Chemie Holding AG* 1,261,303
880 Sika Finanz AG 265,144
-----------
1,526,447
-----------
Electrical & Electronics 4.30%
16,540 ABB Ltd. 1,686,641
-----------
Financial Services 2.51%
320 Julius Baer Holding Limited AG 986,338
-----------
Food & Household Products 4.52%
900 Nestle SA 1,776,120
-----------
Health & Personal Care 32.19%
3,860 Novartis AG 5,553,957
60 Roche Holding AG - Bearer 1,069,236
520 Roche Holding AG - Genussein 6,013,068
-----------
12,636,261
-----------
Insurance 8.42%
840 Schweizerische
Rueckversicherungs (Swiss Re) 1,638,308
2,840 Zurich Allied AG 1,666,398
-----------
3,304,706
-----------
Leisure & Tourism 0.16%
140 Moevenpick Holding AG 61,910
-----------
Machinery & Engineering 1.87%
200 Georg Fischer AG 61,382
40 Schindler Holding AG -
Participation Certificates 60,933
300 Schindler Holding AG - Registered 485,117
200 Sulzer AG 125,536
-----------
732,968
-----------
Merchandising 3.84%
680 Jelmoni Holding AG - Bearer 688,931
480 Jelmoni Holding AG - Registered 98,845
2,860 Valora Holding AG 721,088
-----------
1,508,864
-----------
Multi-Industry 4.18%
1,380 Alusuisse Lonza Group AG 1,639,496
-----------
Recreation - Other Consumer
Goods 1.73%
2,180 Tag Heuer International SA 237,050
600 The Swatch Group AG - B 441,159
-----------
678,209
-----------
Telecommunications 4.40%
5,240 Swisscom AG 1,727,530
-----------
Transportation - Airlines 1.02%
1,900 SairGroup 399,413
-----------
TOTAL COMMON STOCK - BASKET
(Cost $39,688,503) 39,251,630
-----------
COMMON STOCK -
NON-BASKET 0.00%
Electrical & Electronics 0.00%
10 ABB Ltd. 1,020
-----------
TOTAL COMMON STOCK - NON-BASKET
(Cost $816) 1,020
-----------
Total Investments
(Cost $39,689,319)+ 100.00% $39,252,650
====== ===========
- ----------
* Non-income producing security.
+ Aggregate cost for Federal income tax purposes is $40,074,203.
The aggregate gross unrealized appreciation (depreciation) for all
securities is as follows:
Excess of value over tax cost $ 1,291,059
Excess of tax cost over value (2,112,612)
-----------
$ (821,553)
===========
See accompanying notes to financial statements.
40
<PAGE>
August 31, 1999
PORTFOLIO OF INVESTMENTS WEBS INDEX FUND, INC.
================================================================================
- --------------------------------
United Kingdom WEBS Index Series
- --------------------------------
- ------------------------------------------------------------------------
NO. OF
SHARES SECURITY VALUE
- ------ -------- -----
COMMON STOCK - BASKET 100.00%
Aerospace & Military
Technology 1.35%
146,160 British Aerospace Plc $ 1,067,602
131,880 Rolls-Royce Plc 524,326
-----------
1,591,928
-----------
Banking 15.63%
104,720 Abbey National Plc 1,798,403
98,280 Barclays Plc 2,923,633
153,832 Halifax Group Plc 1,717,928
457,800 HSBC Holdings Plc 5,664,616
370,104 Lloyds TSB Group Plc 5,121,070
56,700 Royal Bank of Scotland Group Plc 1,177,963
-----------
18,403,613
-----------
Beverages & Tobacco 3.91%
120,456 British American Tobacco Plc 1,013,984
155,120 Cadbury Schweppes Plc 979,648
257,628 Diageo Plc 2,609,875
-----------
4,603,507
-----------
Broadcasting & Publishing 2.11%
111,916 British Sky Broadcasting Group Plc 1,059,970
44,772 Pearson Plc 924,395
75,040 Reed International Plc 499,249
-----------
2,483,614
-----------
Building Materials &
Components 1.87%
75,880 Blue Circle Industries Plc 522,834
42,280 BPB Plc 256,648
41,132 Caradon Plc 114,753
54,852 Hanson Plc 466,589
22,260 Hepworth Plc 81,610
23,660 RMC Group Plc 387,872
46,620 Wolseley Plc 371,826
-----------
2,202,132
-----------
Business & Public Services 4.15%
15,792 Anglian Water Plc 187,912
67,480 British Airport Authority Plc 705,301
33,208 Compass Group Plc 310,245
15,680 De La Rue Plc 94,550
5,880 Misys Plc 52,050
33,600 Railtrack Group Plc 643,483
136,976 Rentokil Initial Plc 550,093
109,592 Reuters Group Plc 1,606,281
19,908 Thames Water Plc 286,188
38,192 United Utilities Plc 453,533
-----------
4,889,636
-----------
Chemicals 1.24%
38,360 BOC Group Plc 808,046
57,260 Imperial Chemical Industries Plc 650,964
-----------
1,459,010
-----------
Construction & Housing 0.11%
43,540 Taylor Woodrow Plc 129,173
-----------
Electrical & Electronics 1.83%
215,880 General Electric Company Plc 2,159,180
-----------
Electronic Components,
Instruments 1.39%
21,700 Bowthorpe Plc 209,710
222,936 Invensys Plc 1,138,177
51,044 Williams Plc 289,738
-----------
1,637,625
-----------
Energy Sources 11.02%
671,160 BP Amoco Plc 12,465,052
15,036 Burmah Castrol Plc 286,024
94,640 Lasmo Plc 232,837
-----------
12,983,913
-----------
Financial Services 0.82%
26,992 Provident Financial Plc 347,225
25,620 Schroders Plc 553,687
18,956 St. James Place Capital Plc 62,639
-----------
963,551
-----------
Food & Household Products 2.31%
65,800 Associated British Foods Plc 451,264
229,740 Unilever Plc 2,168,507
32,956 United Biscuits Holdings Plc 102,807
-----------
2,722,578
-----------
Forest Products & Paper 0.20%
68,600 Arjo Wiggins Appleton Plc 238,819
-----------
Gold Mines 0.12%
15,904 Lonmin Plc 145,770
-----------
Health & Personal Care 13.19%
123,200 Astrazeneca Plc 4,893,208
217,840 Glaxo Wellcome Plc 5,730,691
376,600 Smithkline Beecham Plc 4,908,168
-----------
15,532,067
-----------
Industrial Components 0.43%
50,540 BBA Group Plc 414,468
48,020 BICC Plc 87,254
-----------
501,722
-----------
Insurance 5.61%
120,204 Allied Zurich AG Plc 1,469,955
70,280 CGU Plc 1,047,040
396,144 Legal & General Group Plc 1,087,677
140,000 Prudential Corporation Plc 2,090,239
109,452 Royal & Sun Alliance
Insurance Group 911,674
-----------
6,606,585
-----------
Leisure & Tourism 3.19%
73,500 Bass Plc 988,643
44,800 Carlton Communications Plc 339,661
140,000 Granada Group Plc 1,250,542
84,000 Hilton Group Plc 321,134
77,980 Rank Organisation Plc 323,824
54,460 Scottish & Newcastle Plc 537,252
-----------
3,761,056
-----------
Machinery & Engineering 1.01%
50,400 GKN Plc 772,342
28,000 Smith Industries Plc 419,399
-----------
1,191,741
-----------
See accompanying notes to financial statements.
41
<PAGE>
August 31, 1999
PORTFOLIO OF INVESTMENTS WEBS INDEX FUND, INC.
================================================================================
- --------------------------------------------
United Kingdom WEBS Index Series (concluded)
- --------------------------------------------
- ------------------------------------------------------------------------
NO. OF
SHARES SECURITY VALUE
- ------ -------- -----
Merchandising 5.87%
66,780 Boots Company Plc $ 824,696
63,224 Great Universal Stores Plc 637,434
90,384 Kingfisher Plc 1,087,851
209,244 Marks & Spencer Plc 1,398,009
28,560 Next Plc 338,004
99,680 Safeway Plc 413,536
126,728 Sainsbury Plc 874,210
451,220 Tesco Plc 1,336,848
------------
6,910,588
------------
Metals - Non Ferrous 1.26%
82,320 Rio Tinto Plc 1,482,550
------------
Metals - Steel 0.33%
147,280 British Steel Plc 386,619
------------
Miscellaneous Materials &
Commodities 0.28%
99,120 Pilkington Plc 172,136
34,384 Rexam Plc 162,275
------------
334,411
------------
Multi-Industry 0.28%
40,796 TI Group Plc 329,148
------------
Real Estate 0.86%
50,820 British Land Company Plc 425,754
23,520 Land Securities Plc 330,737
30,408 MEPC Plc 255,971
------------
1,012,462
------------
Recreation - Other Consumer
Goods 0.48%
65,772 EMI Group Plc 559,478
------------
Telecommunications 13.92%
441,140 British Telecommunications Plc 6,760,135
171,780 Cable & Wireless Plc 1,972,227
380,240 Vodafone Group Plc 7,667,281
------------
16,399,643
------------
Textiles & Apparel 0.06%
89,460 Coats Viyella Plc 75,882
------------
Transportation - Airlines 0.47%
84,840 British Airways Plc 555,581
------------
Transportation - Shipping 0.74%
52,920 Peninsular & Oriental Steam
Navigation Company Plc 868,398
------------
Utilities - Electrical & Gas 3.96%
267,484 BG Plc 1,609,703
302,260 Centrica Plc 805,601
107,016 National Grid Group Plc 714,569
88,060 National Power Plc 626,582
30,100 Scottish and Southern Energy Plc 276,369
69,160 Scottish Power Plc 636,673
------------
4,669,497
------------
TOTAL COMMON STOCK - BASKET
(Cost $111,092,951) 117,791,477
------------
Total Investments
(Cost $111,092,951)+ 100.00% $117,791,477
====== ============
- ----------
+ Aggregate cost for Federal income tax purposes is $111,256,036.
The aggregate gross unrealized appreciation (depreciation) for all
securities is as follows:
Excess of value over tax cost $ 10,897,271
Excess of tax cost over value (4,361,830)
------------
$ 6,535,441
============
See accompanying notes to financial statements.
42
<PAGE>
(THIS PAGE INTENTIONALLY LEFT BLANK.)
<PAGE>
August 31, 1999
STATEMENTS OF ASSETS AND LIABILITIES WEBS INDEX FUND, INC.
FOREIGN FUND, INC.
================================================================================
<TABLE>
<CAPTION>
Australia Austria Belgium Canada France
WEBS WEBS WEBS WEBS WEBS
Index Index Index Index Index
Series Series Series Series Series
------------- ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C>
Assets
Investments, at value .................... $ 54,793,940 $ 12,715,489 $ 13,003,466 $ 9,269,363 $ 75,960,582
Cash and foreign currency (at value) ..... 27,268 22,546 2,090,561 315,340 1,477,675
Cash collateral for securities loaned .... 2,500,470 -- 420,951 -- 1,000,000
Dividends receivable ..................... 112,844 38,480 58,823 12,107 412,004
Interest receivable ...................... 712 20 276 42 1,192
Receivable for securities sold ........... -- 56,395 -- -- --
Deferred organization cost ............... 51,037 37,954 16,577 36,050 98,946
Prepaid expenses ......................... 7,051 1,431 1,560 1,759 7,541
------------- ------------- ------------- ------------- -------------
Total assets ......................... 57,493,322 12,872,315 15,592,214 9,634,661 78,957,940
------------- ------------- ------------- ------------- -------------
Liabilities
Payable for securities loaned ............ 2,500,470 -- 420,951 -- 1,000,000
Advisory fee payable ..................... 13,044 2,941 3,169 2,212 16,213
Administration fee payable ............... 10,448 2,355 2,538 1,772 12,981
Distribution fee payable ................. 9,662 2,178 2,347 1,639 12,009
Custody fee payable ...................... 4,169 2,090 3,569 -- 11,596
Accrued expenses ......................... 13,373 4,472 531 3,091 19,907
Advances under loan arrangement .......... 985,000 82,000 1,663,000 373,000 --
------------- ------------- ------------- ------------- -------------
Total liabilities .................... 3,536,166 96,036 2,096,105 381,714 1,072,706
------------- ------------- ------------- ------------- -------------
Net Assets
Capital stock, $0.001 par value .......... 5,400 1,400 840 700 3,401
Paid-in capital .......................... 56,667,587 14,663,343 13,986,478 8,213,467 67,250,158
Accumulated net investment income/(loss) . (3,799) 7,062 (36,463) 15,655 (38,451)
Accumulated net realized gain/(loss)
on investments ......................... (1,422,189) (988,593) (596,138) -- --
Net unrealized appreciation/(depreciation)
on investments and translation of other
assets and liabilities denominated in
foreign currencies ..................... (1,289,843) (906,933) 141,392 1,023,125 10,670,126
------------- ------------- ------------- ------------- -------------
Net Assets ............................... $ 53,957,156 $ 12,776,279 $ 13,496,109 $ 9,252,947 $ 77,885,234
============= ============= ============= ============= =============
Shares of common stock issued and
outstanding ............................ 5,400,030 1,400,030 840,030 700,030 3,401,000
============= ============= ============= ============= =============
Net Asset Value Per Share ................ $ 9.99 $ 9.13 $ 16.07 $ 13.22 $ 22.90
============= ============= ============= ============= =============
<CAPTION>
Malaysia
Germany Hong Kong Italy Japan (Free)
WEBS WEBS WEBS WEBS WEBS
Index Index Index Index Index
Series Series Series Series Series
------------- ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C>
Assets
Investments, at value .................... $ 100,680,904 $ 77,083,040 $ 58,543,663 $ 714,353,329 $ 91,891,989
Cash and foreign currency (at value) ..... 2,091,759 1,364,960 4,404,052 44,264 3,383,041
Cash collateral for securities loaned .... 4,187,400 2,805,236 12,695,909 75,265,450 --
Dividends receivable ..................... 68,431 158,870 674 118,335 31,658
Interest receivable ...................... 1,394 2,086 7,396 20,097 1,776
Receivable for securities sold ........... -- -- -- -- --
Deferred organization cost ............... 94,004 26,202 49,827 207,446 27,773
Prepaid expenses ......................... 12,209 9,583 9,981 41,618 5,848
------------- ------------- ------------- ------------- -------------
Total assets ......................... 107,136,101 81,449,977 75,711,502 790,050,539 95,342,085
------------- ------------- ------------- ------------- -------------
Liabilities
Payable for securities loaned ............ 4,187,400 2,805,236 12,695,909 75,265,450 --
Advisory fee payable ..................... 22,738 18,243 14,715 160,885 21,237
Administration fee payable ............... 18,209 14,613 11,786 128,845 17,003
Distribution fee payable ................. 16,843 13,513 10,900 119,174 15,731
Custody fee payable ...................... 10,328 19,136 9,057 47,823 7,926
Accrued expenses ......................... 25,349 8,919 14,289 217,292 29,290
Advances under loan arrangement .......... 1,210,000 1,370,000 4,731,000 458,000 --
------------- ------------- ------------- ------------- -------------
Total liabilities .................... 5,490,867 4,249,660 17,487,656 76,397,469 91,187
------------- ------------- ------------- ------------- -------------
Net Assets
Capital stock, $0.001 par value .......... 4,801 6,526 2,700 54,001 17,025
Paid-in capital .......................... 100,941,870 69,779,582 52,648,848 624,461,761 88,268,321
Accumulated net investment income/(loss) . 3,642 (154,629) (716,071) (3,466,264) (47,967)
Accumulated net realized gain/(loss)
on investments ......................... (409,809) (11,968,428) (10,621) (2,800,315) (14,625,066)
Net unrealized appreciation/(depreciation)
on investments and translation of other
assets and liabilities denominated in
foreign currencies ..................... 1,104,730 19,537,266 6,298,990 95,403,887 21,638,585
------------- ------------- ------------- ------------- -------------
Net Assets ............................... $ 101,645,234 $ 77,200,317 $ 58,223,846 $ 713,653,070 $ 95,250,898
============= ============= ============= ============= =============
Shares of common stock issued and
outstanding ............................ 4,801,000 6,526,000 2,700,030 54,001,000 17,025,030
============= ============= ============= ============= =============
Net Asset Value Per Share ................ $ 21.17 $ 11.83 $ 21.56 $ 13.22 $ 5.59
============= ============= ============= ============= =============
<CAPTION>
Mexico Singapore
(Free) Netherlands (Free) Spain Sweden
WEBS WEBS WEBS WEBS WEBS
Index Index Index Index Index
Series Series Series Series Series
------------- ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C>
Assets
Investments, at value .................... $ 21,295,332 $ 31,961,295 $ 113,297,325 $ 37,771,045 $ 20,594,101
Cash and foreign currency (at value) ..... 195,319 1,927,382 92,420 615 7,727
Cash collateral for securities loaned .... 977,400 11,374,090 35,437,500 2,068,750 672,300
Dividends receivable ..................... -- 181,032 135,472 29,507 --
Interest receivable ...................... 281 1,637 16,152 443 291
Receivable for securities sold ........... -- -- -- -- --
Deferred organization cost ............... 28,059 23,499 33,350 41,197 26,821
Prepaid expenses ......................... 1,415 3,561 13,575 5,931 2,248
------------- ------------- ------------- ------------- -------------
Total assets ......................... 22,497,806 45,472,496 149,025,794 39,917,488 21,303,488
------------- ------------- ------------- ------------- -------------
Liabilities
Payable for securities loaned ............ 977,400 11,374,090 35,437,500 2,068,750 672,300
Advisory fee payable ..................... 5,041 7,382 25,123 8,388 4,639
Administration fee payable ............... 4,036 5,912 20,122 6,717 3,716
Distribution fee payable ................. 3,734 5,468 18,610 6,213 3,436
Custody fee payable ...................... 3,556 4,780 13,240 7,242 3,568
Accrued expenses ......................... 7,419 9,706 17,801 10,638 4,050
Advances under loan arrangement .......... 67,000 2,380,000 56,000 1,341,000 578,000
------------- ------------- ------------- ------------- -------------
Total liabilities .................... 1,068,186 13,787,338 35,588,396 3,448,948 1,269,709
------------- ------------- ------------- ------------- -------------
Net Assets
Capital stock, $0.001 par value .......... 1,600 1,351 14,300 1,425 900
Paid-in capital .......................... 21,086,994 31,736,511 93,597,941 36,626,873 16,626,342
Accumulated net investment income/(loss) . 8,648 (49,327) (267,912) (14,323) 9,771
Accumulated net realized gain/(loss)
on investments ......................... (132,938) (321,804) (12,230,986) -- (14,965)
Net unrealized appreciation/(depreciation)
on investments and translation of other
assets and liabilities denominated in
foreign currencies ..................... 465,316 318,427 32,324,055 (145,435) 3,411,731
------------- ------------- ------------- ------------- -------------
Net Assets ............................... $ 21,429,620 $ 31,685,158 $ 113,437,398 $ 36,468,540 $ 20,033,779
============= ============= ============= ============= =============
Shares of common stock issued and
outstanding ............................ 1,600,030 1,351,000 14,300,030 1,425,030 900,030
============= ============= ============= ============= =============
Net Asset Value Per Share ................ $ 13.39 $ 23.45 $ 7.93 $ 25.59 $ 22.26
============= ============= ============= ============= =============
<CAPTION>
United
Switzerland Kingdom
WEBS WEBS
Index Index
Series Series
------------- -------------
<S> <C> <C>
Assets
Investments, at value .................... $ 39,252,650 $ 117,791,477
Cash and foreign currency (at value) ..... 16,558 21,773
Cash collateral for securities loaned .... 1,012,044 --
Dividends receivable ..................... 97,774 642,262
Interest receivable ...................... 340 211
Receivable for securities sold ........... -- --
Deferred organization cost ............... 63,326 59,783
Prepaid expenses ......................... 5,490 12,485
------------- -------------
Total assets ......................... 40,448,182 118,527,991
------------- -------------
Liabilities
Payable for securities loaned ............ 1,012,044 --
Advisory fee payable ..................... 8,733 26,574
Administration fee payable ............... 6,994 21,285
Distribution fee payable ................. 6,469 19,685
Custody fee payable ...................... 6,899 8,622
Accrued expenses ......................... 10,654 35,768
Advances under loan arrangement .......... 897,000 5,014,000
------------- -------------
Total liabilities .................... 1,948,793 5,125,934
------------- -------------
Net Assets
Capital stock, $0.001 par value .......... 2,501 5,601
Paid-in capital .......................... 39,324,689 106,900,608
Accumulated net investment income/(loss) . (6,433) (95,600)
Accumulated net realized gain/(loss)
on investments ......................... (384,883) (108,893)
Net unrealized appreciation/(depreciation)
on investments and translation of other
assets and liabilities denominated in
foreign currencies ..................... (436,485) 6,700,341
------------- -------------
Net Assets ............................... $ 38,499,389 $ 113,402,057
============= =============
Shares of common stock issued and
outstanding ............................ 2,501,000 5,601,000
============= =============
Net Asset Value Per Share ................ $ 15.39 $ 20.25
============= =============
</TABLE>
See accompanying notes to financial statements.
44-45
<PAGE>
For the year ended August 31, 1999
STATEMENTS OF OPERATIONS WEBS INDEX FUND, INC.
FOREIGN FUND, INC.
================================================================================
<TABLE>
<CAPTION>
Australia Austria Belgium Canada
WEBS WEBS WEBS WEBS
Index Index Index Index
Series Series Series Series
------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
Investment income:
Dividends (net of foreign withholding taxes) .................. $ 1,504,225 $ 229,161 $ 269,894 $ 210,791
Interest ...................................................... 17,352 6,858 10,528 4,812
------------- ------------- ------------- -------------
Total investment income ..................................... 1,521,577 236,019 280,422 215,603
------------- ------------- ------------- -------------
Expenses:
Advisory fees ................................................. 135,613 27,123 44,906 33,205
Administration fees ........................................... 110,319 22,059 36,546 27,026
Distribution fees ............................................. 100,454 20,091 33,264 24,597
Custodian fees and expenses ................................... 40,033 16,871 21,409 9,189
Transfer agent fees ........................................... 8,930 7,280 10,930 7,180
Directors' fees ............................................... 9,347 1,965 3,176 1,837
Legal fees .................................................... 13,128 3,029 5,345 2,573
Audit fees .................................................... 19,644 3,437 11,204 7,867
Federal and state registration fees ........................... 3,424 2,141 -- 723
Amortization of deferred organization costs ................... 24,957 18,560 8,107 17,629
Insurance ..................................................... 7,049 797 3,768 3,053
Printing ...................................................... 7,117 1,452 2,703 1,859
Licensing fees ................................................ 15,068 3,014 4,990 3,689
Amex listing fee .............................................. 934 120 391 309
Interest expense .............................................. 175 1,283 18,533 2,146
Miscellaneous expenses ........................................ 6,475 2,799 788 8,150
------------- ------------- ------------- -------------
Total expenses .............................................. 502,667 132,021 206,060 151,032
------------- ------------- ------------- -------------
Net investment income/(loss) .................................. 1,018,910 103,998 74,362 64,571
------------- ------------- ------------- -------------
Net realized and unrealized gain/(loss) on Investments and
Foreign Currency Related Transactions and Translation of
Other Assets and Liabilities Denominated in Foreign Currencies:
Net realized gain/(loss) on investments ....................... (1,159,901) (960,861) 1,189,653 400,975
Net realized gain/(loss) on investments on
in-kind redemptions ......................................... 81,915 -- 2,320,440 974,624
Net realized gain/(loss) on foreign currency
related transactions ........................................ 27,827 (6,384) (10,343) 9,337
------------- ------------- ------------- -------------
(1,050,159) (967,245) 3,499,750 1,384,936
Net change in unrealized appreciation/(depreciation) on
investments and translation of other assets and
liabilities denominated in foreign currencies ............... 11,353,376 36,686 (2,955,479) 2,309,528
------------- ------------- ------------- -------------
Net realized and unrealized gain/(loss) on investments and
foreign currency related transactions and translation
of other assets and liabilities denominated in
foreign currencies .......................................... 10,303,217 (930,559) 544,271 3,694,464
------------- ------------- ------------- -------------
Net increase/(decrease) in net assets resulting
from operations ............................................. $ 11,322,127 $ (826,561) $ 618,633 $ 3,759,035
============= ============= ============= =============
<CAPTION>
France Germany Hong Kong Italy
WEBS WEBS WEBS WEBS
Index Index Index Index
Series Series Series Series
------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
Investment income:
Dividends (net of foreign withholding taxes) .................. $ 873,650 $ 1,219,822 $ 2,682,214 $ 1,095,808
Interest ...................................................... 10,068 58,980 134,523 96,641
------------- ------------- ------------- -------------
Total investment income ..................................... 883,718 1,278,802 2,816,737 1,192,449
------------- ------------- ------------- -------------
Expenses:
Advisory fees ................................................. 137,387 219,901 197,467 186,292
Administration fees ........................................... 111,716 178,860 160,647 151,590
Distribution fees ............................................. 101,768 162,890 146,272 137,994
Custodian fees and expenses ................................... 45,456 66,856 88,127 58,298
Transfer agent fees ........................................... 9,980 12,030 29,980 10,930
Directors' fees ............................................... 9,960 16,361 14,200 13,174
Legal fees .................................................... 15,918 24,602 18,654 17,204
Audit fees .................................................... 15,947 25,022 23,931 27,702
Federal and state registration fees ........................... 6,826 7,186 -- 1,763
Amortization of deferred organization costs ................... 48,386 45,969 12,813 24,366
Insurance ..................................................... 3,780 6,312 6,239 9,610
Printing ...................................................... 7,488 11,629 9,645 9,912
Licensing fees ................................................ 15,265 24,433 21,941 20,699
Amex listing fee .............................................. 790 1,177 999 1,137
Interest expense .............................................. 1,659 3,795 8,141 29,461
Miscellaneous expenses ........................................ 8,200 7,700 1,513 7,348
------------- ------------- ------------- -------------
Total expenses .............................................. 540,526 814,723 740,569 707,480
------------- ------------- ------------- -------------
Net investment income/(loss) .................................. 343,192 464,079 2,076,168 484,969
------------- ------------- ------------- -------------
Net realized and unrealized gain/(loss) on Investments and
Foreign Currency Related Transactions and Translation of
Other Assets and Liabilities Denominated in Foreign Currencies:
Net realized gain/(loss) on investments ....................... 159,487 1,463,921 (3,934,301) 6,638,229
Net realized gain/(loss) on investments on
in-kind redemptions ......................................... 3,436,647 7,601,953 (348,039) 5,587,888
Net realized gain/(loss) on foreign currency
related transactions ........................................ (16,147) (19,265) (1,233) (5,952)
------------- ------------- ------------- -------------
3,579,987 9,046,609 (4,283,573) 12,220,165
Net change in unrealized appreciation/(depreciation) on
investments and translation of other assets and
liabilities denominated in foreign currencies ............... 5,565,223 (4,137,292) 45,476,872 (9,880,532)
------------- ------------- ------------- -------------
Net realized and unrealized gain/(loss) on investments and
foreign currency related transactions and translation
of other assets and liabilities denominated in
foreign currencies .......................................... 9,145,210 4,909,317 41,193,299 2,339,633
------------- ------------- ------------- -------------
Net increase/(decrease) in net assets resulting
from operations ............................................. $ 9,488,402 $ 5,373,396 $ 43,269,467 $ 2,824,602
============= ============= ============= =============
<CAPTION>
Malaysia Mexico
Japan (Free) (Free) Netherlands
WEBS WEBS WEBS WEBS
Index Index Index Index
Series Series Series Series
------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
Investment income:
Dividends (net of foreign withholding taxes) .................. $ 2,436,545 $ 1,033,309 $ 248,993 $ 808,167
Interest ...................................................... 279,811 114,117 8,616 16,556
------------- ------------- ------------- -------------
Total investment income ..................................... 2,716,356 1,147,426 257,609 824,723
------------- ------------- ------------- -------------
Expenses:
Advisory fees ................................................. 1,096,060 176,782 39,012 68,016
Administration fees ........................................... 890,839 143,744 31,717 55,318
Distribution fees ............................................. 811,896 130,950 28,898 50,383
Custodian fees and expenses ................................... 234,451 77,551 28,857 26,682
Transfer agent fees ........................................... 46,230 30,880 8,730 8,030
Directors' fees ............................................... 77,221 10,394 2,713 4,928
Legal fees .................................................... 122,422 270,210 3,974 7,622
Audit fees .................................................... 108,365 29,977 6,367 8,732
Federal and state registration fees ........................... 97,948 -- 3,211 3,232
Amortization of deferred organization costs ................... 101,444 13,581 13,721 11,491
Insurance ..................................................... 26,367 7,471 2,102 2,254
Printing ...................................................... 56,144 11,296 2,075 3,710
Licensing fees ................................................ 121,784 19,642 4,335 7,557
Amex listing fee .............................................. 7,588 1,071 371 396
Interest expense .............................................. 81 -- 1,346 7,128
Miscellaneous expenses ........................................ 32,600 9,507 4,500 3,877
------------- ------------- ------------- -------------
Total expenses .............................................. 3,831,440 933,056 181,929 269,356
------------- ------------- ------------- -------------
Net investment income/(loss) .................................. (1,115,084) 214,370 75,680 555,367
------------- ------------- ------------- -------------
Net realized and unrealized gain/(loss) on Investments and
Foreign Currency Related Transactions and Translation of
Other Assets and Liabilities Denominated in Foreign Currencies:
Net realized gain/(loss) on investments ....................... (198,628) (12,770,274) (124,916) 1,779,092
Net realized gain/(loss) on investments on
in-kind redemptions ......................................... (18,814,684) -- (176,163) 850,582
Net realized gain/(loss) on foreign currency
related transactions ........................................ 341,777 (65,970) 13,072 (49,350)
------------- ------------- ------------- -------------
(18,671,535) (12,836,244) (288,007) 2,580,324
Net change in unrealized appreciation/(depreciation) on
investments and translation of other assets and
liabilities denominated in foreign currencies ............... 178,555,572 75,448,531 5,395,343 (767,104)
------------- ------------- ------------- -------------
Net realized and unrealized gain/(loss) on investments and
foreign currency related transactions and translation
of other assets and liabilities denominated in
foreign currencies .......................................... 159,884,037 62,612,287 5,107,336 1,813,220
------------- ------------- ------------- -------------
Net increase/(decrease) in net assets resulting
from operations ............................................. $ 158,768,953 $ 62,826,657 $ 5,183,016 $ 2,368,587
============= ============= ============= =============
<CAPTION>
Singapore
(Free) Spain Sweden Switzerland
WEBS WEBS WEBS WEBS
Index Index Index Index
Series Series Series Series
------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
Investment income:
Dividends (net of foreign withholding taxes) .................. $ 1,363,960 $ 452,270 $ 250,421 $ 448,281
Interest ...................................................... 271,963 11,930 10,456 16,048
------------- ------------- ------------- -------------
Total investment income ..................................... 1,635,923 464,200 260,877 464,329
------------- ------------- ------------- -------------
Expenses:
Advisory fees ................................................. 255,259 92,868 43,348 93,758
Administration fees ........................................... 207,640 75,553 35,257 76,274
Distribution fees ............................................. 189,081 68,791 32,110 69,451
Custodian fees and expenses ................................... 91,366 30,386 18,579 36,413
Transfer agent fees ........................................... 34,030 10,030 6,805 8,205
Directors' fees ............................................... 18,528 6,711 3,071 6,675
Legal fees .................................................... 23,907 9,913 4,774 9,177
Audit fees .................................................... 26,421 10,876 6,025 12,142
Federal and state registration fees ........................... -- 3,578 1,586 3,508
Amortization of deferred organization costs ................... 16,308 20,148 13,116 30,967
Insurance ..................................................... 7,209 2,999 1,831 3,773
Printing ...................................................... 12,048 4,810 2,377 5,006
Licensing fees ................................................ 28,362 10,318 4,816 10,418
Amex listing fee .............................................. 1,117 483 310 555
Interest expense .............................................. 10 4,286 2,575 7,626
Miscellaneous expenses ........................................ 6,237 5,599 5,150 5,399
------------- ------------- ------------- -------------
Total expenses .............................................. 917,523 357,349 181,730 379,347
------------- ------------- ------------- -------------
Net investment income/(loss) .................................. 718,400 106,851 79,147 84,982
------------- ------------- ------------- -------------
Net realized and unrealized gain/(loss) on Investments and
Foreign Currency Related Transactions and Translation of
Other Assets and Liabilities Denominated in Foreign Currencies:
Net realized gain/(loss) on investments ....................... 1,737,289 1,785,678 549,798 415,196
Net realized gain/(loss) on investments on
in-kind redemptions ......................................... 3,653,370 1,139,310 -- 549,128
Net realized gain/(loss) on foreign currency
related transactions ........................................ 158,170 (21,693) 4,498 42,256
------------- ------------- ------------- -------------
5,548,829 2,903,295 554,296 1,006,580
Net change in unrealized appreciation/(depreciation) on
investments and translation of other assets and
liabilities denominated in foreign currencies ............... 62,353,180 (665,542) 3,068,134 (1,316,317)
------------- ------------- ------------- -------------
Net realized and unrealized gain/(loss) on investments and
foreign currency related transactions and translation
of other assets and liabilities denominated in
foreign currencies .......................................... 67,902,009 2,237,753 3,622,430 (309,737)
------------- ------------- ------------- -------------
Net increase/(decrease) in net assets resulting
from operations ............................................. $ 68,620,409 $ 2,344,604 $ 3,701,577 $ (224,755)
============= ============= ============= =============
<CAPTION>
United
Kingdom
WEBS
Index
Series
-------------
<S> <C>
Investment income:
Dividends (net of foreign withholding taxes) .................. $ 2,829,640
Interest ...................................................... 18,236
-------------
Total investment income ..................................... 2,847,876
-------------
Expenses:
Advisory fees ................................................. 245,947
Administration fees ........................................... 200,033
Distribution fees ............................................. 182,183
Custodian fees and expenses ................................... 55,929
Transfer agent fees ........................................... 10,130
Directors' fees ............................................... 17,214
Legal fees .................................................... 26,250
Audit fees .................................................... 28,307
Federal and state registration fees ........................... 13,151
Amortization of deferred organization costs ................... 29,235
Insurance ..................................................... 7,929
Printing ...................................................... 12,428
Licensing fees ................................................ 27,327
Amex listing fee .............................................. 1,446
Interest expense .............................................. 6,895
Miscellaneous expenses ........................................ 16,948
-------------
Total expenses .............................................. 881,352
-------------
Net investment income/(loss) .................................. 1,966,524
-------------
Net realized and unrealized gain/(loss) on Investments and
Foreign Currency Related Transactions and Translation of
Other Assets and Liabilities Denominated in Foreign Currencies:
Net realized gain/(loss) on investments ....................... 3,268,152
Net realized gain/(loss) on investments on
in-kind redemptions ......................................... 3,423,935
Net realized gain/(loss) on foreign currency
related transactions ........................................ (31,853)
-------------
6,660,234
Net change in unrealized appreciation/(depreciation) on
investments and translation of other assets and
liabilities denominated in foreign currencies ............... 1,407,869
-------------
Net realized and unrealized gain/(loss) on investments and
foreign currency related transactions and translation
of other assets and liabilities denominated in
foreign currencies .......................................... 8,068,103
-------------
Net increase/(decrease) in net assets resulting
from operations ............................................. $ 10,034,627
=============
</TABLE>
See accompanying notes to financial statements.
46-47
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS WEBS INDEX FUND, INC.
FOREIGN FUND, INC.
================================================================================
<TABLE>
<CAPTION>
Australia Austria
WEBS WEBS
Index Index
Series Series
------------------------------ ------------------------------
For the For the For the For the
year year year year
ended ended ended ended
08/31/99 08/31/98 08/31/99 08/31/98
------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
Operations:
Net investment income/(loss) ....................... $ 1,018,910 $ 1,004,449 $ 103,998 $ 33,653
Net realized gain/(loss) on investments and
foreign currency related transactions ............ (1,050,159) (813,545) (967,245) 483,280
Net change in unrealized appreciation/(depreciation)
on investments and translation of other assets and
liabilities denominated in foreign currencies .... 11,353,376 (11,081,054) 36,686 (922,261)
------------- ------------- ------------- -------------
Net increase/(decrease) in net assets resulting
from operations .................................. 11,322,127 (10,890,150) (826,561) (405,328)
------------- ------------- ------------- -------------
Distributions:
Net investment income .............................. (1,018,910) (1,004,449) (103,998) (33,653)
In excess of net investment income ................. (7,396) (19,218) (13,614) (10,327)
Net realized gains ................................. -- -- -- (483,280)
In excess of net realized gains .................... -- -- -- (2,230)
Return of capital .................................. (319,842) -- (25,471) (1,490)
------------- ------------- ------------- -------------
Net decrease in net assets from distributions ...... (1,346,148) (1,023,667) (143,083) (530,980)
------------- ------------- ------------- -------------
Capital Share Transactions:
Net proceeds from sale of shares ................... 14,143,418 14,115,736 5,660,757 4,816,685
Cost of shares redeemed ............................ (4,261,441) (9,508,450) -- --
------------- ------------- ------------- -------------
Net increase/(decrease) in net assets derived from
capital share transactions ....................... 9,881,977 4,607,286 5,660,757 4,816,685
------------- ------------- ------------- -------------
Total increase/(decrease) in net asets ............. 19,857,956 (7,306,531) 4,691,113 3,880,377
Net assets:
Beginning of year .................................. 34,099,200 41,405,731 8,085,166 4,204,789
------------- ------------- ------------- -------------
End of year ........................................ $ 53,957,156 $ 34,099,200 $ 12,776,279 $ 8,085,166
============= ============= ============= =============
Capital Share Transactions:
Shares sold ........................................ 1,400,000 1,400,000 600,000 400,000
Shares redeemed .................................... (400,000) (1,000,000) -- --
------------- ------------- ------------- -------------
Net increase/(decrease) in shares .................. 1,000,000 400,000 600,000 400,000
============= ============= ============= =============
<CAPTION>
Belgium Canada
WEBS WEBS
Index Index
Series Series
------------------------------ ------------------------------
For the For the For the For the
year year year year
ended ended ended ended
08/31/99 08/31/98 08/31/99 08/31/98
------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
Operations:
Net investment income/(loss) ....................... $ 74,362 $ 383,039 $ 64,571 $ 97,330
Net realized gain/(loss) on investments and
foreign currency related transactions ............ 3,499,750 4,866,929 1,384,936 4,111,037
Net change in unrealized appreciation/(depreciation)
on investments and translation of other assets and
liabilities denominated in foreign currencies .... (2,955,479) 3,689,571 2,309,528 (5,251,304)
------------- ------------- ------------- -------------
Net increase/(decrease) in net assets resulting
from operations .................................. 618,633 8,939,539 3,759,035 (1,042,937)
------------- ------------- ------------- -------------
Distributions:
Net investment income .............................. -- (383,039) (64,571) (92,345)
In excess of net investment income ................. (7,001) (1,697,275) (6,549) --
Net realized gains ................................. (997,661) (2,779,100) (385,919) (468,666)
In excess of net realized gains .................... -- -- -- --
Return of capital .................................. (770,321) (139,253) -- --
------------- ------------- ------------- -------------
Net decrease in net assets from distributions ...... (1,774,983) (4,998,667) (457,039) (561,011)
------------- ------------- ------------- -------------
Capital Share Transactions:
Net proceeds from sale of shares ................... 2,006,880 9,993,974 7,126,953 --
Cost of shares redeemed ............................ (13,118,955) (20,697,973) (8,107,562) (15,632,312)
------------- ------------- ------------- -------------
Net increase/(decrease) in net assets derived from
capital share transactions ....................... (11,112,075) (10,703,999) (980,609) (15,632,312)
------------- ------------- ------------- -------------
Total increase/(decrease) in net asets ............. (12,268,425) (6,763,127) 2,321,387 (17,236,260)
Net assets:
Beginning of year .................................. 25,764,534 32,527,661 6,931,560 24,167,820
------------- ------------- ------------- -------------
End of year ........................................ $ 13,496,109 $ 25,764,534 $ 9,252,947 $ 6,931,560
============= ============= ============= =============
Capital Share Transactions:
Shares sold ........................................ 120,000 560,000 600,000 --
Shares redeemed .................................... (680,000) (1,240,000) (600,000) (1,100,000)
------------- ------------- ------------- -------------
Net increase/(decrease) in shares .................. (560,000) (680,000) -- (1,100,000)
============= ============= ============= =============
<CAPTION>
France Germany
WEBS WEBS
Index Index
Series Series
------------------------------ ------------------------------
For the For the For the For the
year year year year
ended ended ended ended
08/31/99 08/31/98 08/31/99 08/31/98
------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
Operations:
Net investment income/(loss) ....................... $ 343,192 $ 435,172 $ 464,079 $ 626,103
Net realized gain/(loss) on investments and
foreign currency related transactions ............ 3,579,987 312,674 9,046,609 39,489
Net change in unrealized appreciation/(depreciation)
on investments and translation of other assets and
liabilities denominated in foreign currencies .... 5,565,223 3,937,546 (4,137,292) 2,623,288
------------- ------------- ------------- -------------
Net increase/(decrease) in net assets resulting
from operations .................................. 9,488,402 4,685,392 5,373,396 3,288,880
------------- ------------- ------------- -------------
Distributions:
Net investment income .............................. (343,192) (435,172) (464,079) (626,103)
In excess of net investment income ................. (70,988) (62,742) (47,802) (12,798)
Net realized gains ................................. (157,628) (312,674) (1,463,921) (39,489)
In excess of net realized gains .................... -- (13,549) (380,445) (12,490)
Return of capital .................................. (271,980) (178,534) (37,182) (290,393)
------------- ------------- ------------- -------------
Net decrease in net assets from distributions ...... (843,788) (1,002,671) (2,393,429) (981,273)
------------- ------------- ------------- -------------
Capital Share Transactions:
Net proceeds from sale of shares ................... 34,466,929 27,720,237 50,334,147 46,140,403
Cost of shares redeemed ............................ (11,147,991) -- (24,602,755) --
------------- ------------- ------------- -------------
Net increase/(decrease) in net assets derived from
capital share transactions ....................... 23,318,938 27,720,237 25,731,392 46,140,403
------------- ------------- ------------- -------------
Total increase/(decrease) in net asets ............. 31,963,552 31,402,958 28,711,359 48,448,010
Net assets:
Beginning of year .................................. 45,921,682 14,518,724 72,933,875 24,485,865
------------- ------------- ------------- -------------
End of year ........................................ $ 77,885,234 $ 45,921,682 $ 101,645,234 $ 72,933,875
============= ============= ============= =============
Capital Share Transactions:
Shares sold ........................................ 1,600,000 1,400,000 2,400,000 2,100,000
Shares redeemed .................................... (600,000) -- (1,200,000) --
------------- ------------- ------------- -------------
Net increase/(decrease) in shares .................. 1,000,000 1,400,000 1,200,000 2,100,000
============= ============= ============= =============
<CAPTION>
Hong Kong Italy
WEBS WEBS
Index Index
Series Series
------------------------------ ------------------------------
For the For the For the For the
year year year year
ended ended ended ended
08/31/99 08/31/98 08/31/99 08/31/98
------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
Operations:
Net investment income/(loss) ....................... $ 2,076,168 $ 1,733,479 $ 484,969 $ 455,253
Net realized gain/(loss) on investments and
foreign currency related transactions ............ (4,283,573) (9,056,025) 12,220,165 9,664,471
Net change in unrealized appreciation/(depreciation)
on investments and translation of other assets and
liabilities denominated in foreign currencies .... 45,476,872 (25,681,723) (9,880,532) 11,937,409
------------- ------------- ------------- -------------
Net increase/(decrease) in net assets resulting
from operations .................................. 43,269,467 (33,004,269) 2,824,602 22,057,133
------------- ------------- ------------- -------------
Distributions:
Net investment income .............................. (2,076,168) (1,733,479) (179,682) (455,253)
In excess of net investment income ................. (331,861) (12,675) -- (2,610,741)
Net realized gains ................................. -- -- (6,161,860) (1,763,418)
In excess of net realized gains .................... -- -- -- --
Return of capital .................................. -- (983,923) (689,335) --
------------- ------------- ------------- -------------
Net decrease in net assets from distributions ...... (2,408,029) (2,730,077) (7,030,877) (4,829,412)
------------- ------------- ------------- -------------
Capital Share Transactions:
Net proceeds from sale of shares ................... 4,990,436 65,939,721 18,459,343 24,566,181
Cost of shares redeemed ............................ (18,624,427) (5,649,119) (14,397,461) (15,920,335)
------------- ------------- ------------- -------------
Net increase/(decrease) in net assets derived from
capital share transactions ....................... (13,633,991) 60,290,602 4,061,882 8,645,846
------------- ------------- ------------- -------------
Total increase/(decrease) in net asets ............. 27,227,447 24,556,256 (144,393) 25,873,567
Net assets:
Beginning of year .................................. 49,972,870 25,416,614 58,368,239 32,494,672
------------- ------------- ------------- -------------
End of year ........................................ $ 77,200,317 $ 49,972,870 $ 58,223,846 $ 58,368,239
============= ============= ============= =============
Capital Share Transactions:
Shares sold ........................................ 525,000 6,600,000 750,000 1,200,000
Shares redeemed .................................... (1,800,000) (525,000) (600,000) (600,000)
------------- ------------- ------------- -------------
Net increase/(decrease) in shares .................. (1,275,000) 6,075,000 150,000 600,000
============= ============= ============= =============
</TABLE>
See accompanying notes to financial statements.
48-49
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS (continued) WEBS INDEX FUND, INC.
FOREIGN FUND, INC.
================================================================================
<TABLE>
<CAPTION>
Japan Malaysia (Free)
WEBS WEBS
Index Index
Series Series
------------------------------ ------------------------------
For the For the For the For the
year year year year
ended ended ended ended
08/31/99 08/31/98 08/31/99 08/31/98
------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
Operations:
Net investment income/(loss) ..... $ (1,115,084) $ (343,352) $ 214,370 $ 691,076
Net realized gain/(loss) on
investments and foreign
currency related transactions .. (18,671,535) (4,044,653) (12,836,244) (4,401,103)
Net change in unrealized
appreciation/(depreciation)
on investments and translation
of other assets and liabilities
denominated in foreign
currencies ..................... 178,555,572 (68,401,659) 75,448,531 (44,926,346)
------------- ------------- ------------- -------------
Net increase/(decrease)
in net assets resulting from
operations ..................... 158,768,953 (72,789,664) 62,826,657 (48,636,373)
------------- ------------- ------------- -------------
Distributions:
Net investment income ............ -- -- (116,388) (688,802)
In excess of net investment income (2,424,032) -- -- --
Net realized gains ............... -- (8,383) -- --
In excess of net realized gains .. -- -- -- --
Return of capital ................ (265,218) (259,229) (3,326,074) (450,458)
------------- ------------- ------------- -------------
Net decrease in net assets from
distributions .................. (2,689,250) (267,612) (3,442,462) (1,139,260)
------------- ------------- ------------- -------------
Capital Stock Transactions:
Net proceeds from sale of shares . 383,655,690 121,696,694 -- 74,873,951
Cost of shares redeemed .......... (27,567,601) (6,110,956) -- (1,570,595)
------------- ------------- ------------- -------------
Net increase/(decrease) in net
assets derived from capital
share transactions ............. 356,088,089 115,585,738 -- 73,303,356
------------- ------------- ------------- -------------
Total increase/(decrease) in
net assets ..................... 512,167,792 42,528,462 59,384,195 23,527,723
Net assets:
Beginning of year ................ 201,485,278 158,956,816 35,866,703 12,338,980
------------- ------------- ------------- -------------
End of year ...................... $ 713,653,070 $ 201,485,278 $ 95,250,898 $ 35,866,703
============= ============= ============= =============
Capital Share Transactions:
Shares sold .................... 33,000,000 12,000,000 -- 15,825,000
Shares redeemed ................ (3,000,000) (600,000) -- (300,000)
------------- ------------- ------------- -------------
Net increase/(decrease) in shares 30,000,000 11,400,000 -- 15,525,000
============= ============= ============= =============
<CAPTION>
Mexico (Free) Netherlands
WEBS WEBS
Index Index
Series Series
------------------------------ ------------------------------
For the For the For the For the
year year year year
ended ended ended ended
08/31/99 08/31/98 08/31/99 08/31/98
------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
Operations:
Net investment income/(loss) ..... $ 75,680 $ 85,136 $ 555,367 $ 165,472
Net realized gain/(loss) on
investments and foreign
currency related transactions .. (288,007) 1,577,042 2,580,324 1,632,091
Net change in unrealized
appreciation/(depreciation)
on investments and translation
of other assets and liabilities
denominated in foreign
currencies ..................... 5,395,343 (7,542,851) (767,104) (840,046)
------------- ------------- ------------- -------------
Net increase/(decrease)
in net assets resulting from
operations ..................... 5,183,016 (5,880,673) 2,368,587 957,517
------------- ------------- ------------- -------------
Distributions:
Net investment income ............ (75,680) (83,213) (555,367) (154,868)
In excess of net investment income (21,243) -- (17,097) --
Net realized gains ............... -- (261,068) (1,779,092) (1,331,940)
In excess of net realized gains .. (8,020) -- (319,338) --
Return of capital ................ (89,641) -- (111,506) (68,776)
------------- ------------- ------------- -------------
Net decrease in net assets from
distributions .................. (194,584) (344,281) (2,782,400) (1,555,584)
------------- ------------- ------------- -------------
Capital Stock Transactions:
Net proceeds from sale of shares . 11,363,778 1,486,432 13,324,865 14,394,424
Cost of shares redeemed .......... (2,218,426) (4,592,150) (3,575,197) (1,108,188)
------------- ------------- ------------- -------------
Net increase/(decrease) in net
assets derived from capital
share transactions ............. 9,145,352 (3,105,718) 9,749,668 13,286,236
------------- ------------- ------------- -------------
Total increase/(decrease) in
net assets ..................... 14,133,784 (9,330,672) 9,335,855 12,688,169
Net assets:
Beginning of year ................ 7,295,836 16,626,508 22,349,303 9,661,134
------------- ------------- ------------- -------------
End of year ...................... $ 21,429,620 $ 7,295,836 $ 31,685,158 $ 22,349,303
============= ============= ============= =============
Capital Share Transactions:
Shares sold .................... 900,000 100,000 550,000 550,000
Shares redeemed ................ (200,000) (300,000) (150,000) (50,000)
------------- ------------- ------------- -------------
Net increase/(decrease) in shares 700,000 (200,000) 400,000 500,000
============= ============= ============= =============
<CAPTION>
Singapore (Free) Spain
WEBS WEBS
Index Index
Series Series
------------------------------ ------------------------------
For the For the For the For the
year year year year
ended ended ended ended
08/31/99 08/31/98 08/31/99 08/31/98
------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
Operations:
Net investment income/(loss) ..... $ 718,400 $ 519,573 $ 106,851 $ 121,310
Net realized gain/(loss) on
investments and foreign
currency related transactions .. 5,548,829 (15,780,309) 2,903,295 1,661,273
Net change in unrealized
appreciation/(depreciation)
on investments and translation
of other assets and liabilities
denominated in foreign
currencies ..................... 62,353,180 (25,054,420) (665,542) (84,559)
------------- ------------- ------------- -------------
Net increase/(decrease)
in net assets resulting from
operations ..................... 68,620,409 (40,315,156) 2,344,604 1,698,024
------------- ------------- ------------- -------------
Distributions:
Net investment income ............ (718,400) (519,573) (106,851) (121,310)
In excess of net investment income (901,448) (92,309) (25,193) (12,880)
Net realized gains ............... -- -- (1,779,176) (573,744)
In excess of net realized gains .. -- -- -- --
Return of capital ................ (151,866) (211,720) (52,032) (67,213)
------------- ------------- ------------- -------------
Net decrease in net assets from
distributions .................. (1,771,714) (823,602) (1,963,252) (775,147)
------------- ------------- ------------- -------------
Capital Stock Transactions:
Net proceeds from sale of shares . 25,731,770 76,731,080 15,098,787 17,901,806
Cost of shares redeemed .......... (26,391,185) (3,065,766) (4,040,953) (2,116,697)
------------- ------------- ------------- -------------
Net increase/(decrease) in net
assets derived from capital
share transactions ............. (659,415) 73,665,314 11,057,834 15,785,109
------------- ------------- ------------- -------------
Total increase/(decrease) in
net assets ..................... 66,189,280 32,526,556 11,439,186 16,707,986
Net assets:
Beginning of year ................ 47,248,118 14,721,562 25,029,354 8,321,368
------------- ------------- ------------- -------------
End of year ...................... $ 113,437,398 $ 47,248,118 $ 36,468,540 $ 25,029,354
============= ============= ============= =============
Capital Share Transactions:
Shares sold .................... 3,800,000 13,100,000 525,000 675,000
Shares redeemed ................ (3,800,000) (500,000) (150,000) (75,000)
------------- ------------- ------------- -------------
Net increase/(decrease) in shares -- 12,600,000 375,000 600,000
============= ============= ============= =============
<CAPTION>
Sweden Switzerland
WEBS WEBS
Index Index
Series Series
------------------------------ ------------------------------
For the For the For the For the
year year year year
ended ended ended ended
08/31/99 08/31/98 08/31/99 08/31/98
------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
Operations:
Net investment income/(loss) ..... 79,147 $ 64,048 $ 84,982 $ (6,909)
Net realized gain/(loss) on
investments and foreign
currency related transactions .. 554,296 639,667 1,006,580 2,711,388
Net change in unrealized
appreciation/(depreciation)
on investments and translation
of other assets and liabilities
denominated in foreign
currencies ..................... 3,068,134 (858,611) (1,316,317) (117,545)
------------- ------------- ------------- -------------
Net increase/(decrease)
in net assets resulting from
operations ..................... 3,701,577 (154,896) (224,755) 2,586,934
------------- ------------- ------------- -------------
Distributions:
Net investment income ............ (79,147) (64,048) (84,982) --
In excess of net investment income (9,823) (5,006) (90,051) (13,567)
Net realized gains ............... (549,798) (639,667) (415,196) (2,272,030)
In excess of net realized gains .. (11,025) (9,750) (360,924) --
Return of capital ................ (11,369) (13,138) (27,488) (53,400)
------------- ------------- ------------- -------------
Net decrease in net assets from
distributions .................. (661,162) (731,609) (978,641) (2,338,997)
------------- ------------- ------------- -------------
Capital Stock Transactions:
Net proceeds from sale of shares . 3,202,043 6,434,414 18,201,550 17,011,012
Cost of shares redeemed .......... -- -- (7,661,744) (1,901,034)
------------- ------------- ------------- -------------
Net increase/(decrease) in net
assets derived from capital
share transactions ............. 3,202,043 6,434,414 10,539,806 15,109,978
------------ ------------- ------------- -------------
Total increase/(decrease) in
net assets ..................... 6,242,458 5,547,909 9,336,410 15,357,915
Net assets:
Beginning of year ................ 13,791,321 8,243,412 29,162,979 13,805,064
------------- ------------- ------------- -------------
End of year ...................... $ 20,033,779 $ 13,791,321 $ 38,499,389 $ 29,162,979
============= ============= ============= =============
Capital Share Transactions:
Shares sold .................... 150,000 300,000 1,125,000 1,000,000
Shares redeemed ................ -- -- (500,000) (125,000)
------------- ------------- ------------- -------------
Net increase/(decrease) in shares 150,000 300,000 625,000 875,000
============= ============= ============= =============
<CAPTION>
United Kingdom
WEBS
Index
Series
------------------------------
For the For the
year year
ended ended
08/31/99 08/31/98
------------- -------------
<S> <C> <C>
Operations:
Net investment income/(loss) ..... $ 1,966,524 $ 963,424
Net realized gain/(loss) on
investments and foreign
currency related transactions .. 6,660,234 438,393
Net change in unrealized
appreciation/(depreciation)
on investments and translation
of other assets and liabilities
denominated in foreign
currencies ..................... 1,407,869 1,989,733
------------- -------------
Net increase/(decrease)
in net assets resulting from
operations ..................... 10,034,627 3,391,550
------------- -------------
Distributions:
Net investment income ............ (1,966,524) (963,424)
In excess of net investment income (30,855) (151,877)
Net realized gains ............... (3,268,152) (387,328)
In excess of net realized gains .. (100,408) --
Return of capital ................ (479,427) (228,725)
------------- -------------
Net decrease in net assets from
distributions .................. (5,845,366) (1,731,354)
------------- -------------
Capital Stock Transactions:
Net proceeds from sale of shares . 57,840,429 31,463,983
Cost of shares redeemed .......... (11,473,166) --
------------- -------------
Net increase/(decrease) in net
assets derived from capital
share transactions ............. 46,367,263 31,463,983
------------- -------------
Total increase/(decrease) in
net assets ..................... 50,556,524 33,124,179
Net assets:
Beginning of year ................ 62,845,533 29,721,354
------------- -------------
End of year ...................... $ 113,402,057 $ 62,845,533
============= =============
Capital Share Transactions:
Shares sold .................... 2,800,000 1,600,000
Shares redeemed ................ (600,000) --
------------- -------------
Net increase/(decrease) in shares 2,200,000 1,600,000
============= =============
</TABLE>
See accompanying notes to financial statements.
50-51
<PAGE>
FINANCIAL HIGHLIGHTS WEBS INDEX FUND, INC.
FOREIGN FUND, INC.
================================================================================
(For a share outstanding throughout the period)
<TABLE>
<CAPTION>
Australia
WEBS
Index
Series
--------------------------------------------
For the For the For the
year year year
ended ended ended
08/31/99 08/31/98 08/31/97
---------- ---------- ----------
<S> <C> <C> <C>
Per Share Operating Performance
Net asset value, beginning of period ............................................. $ 7.75 $ 10.35 $ 10.15
---------- ---------- ----------
Net investment income/(loss) (+) ................................................. 0.20 0.23 0.17
Net realized and unrealized gain/(loss) on investments and foreign currency
related transactions and translation of other assets and liabilities denominated
in foreign currencies .......................................................... 2.29 (2.60) 0.47
---------- ---------- ----------
Net increase/(decrease) in net assets resulting from operations .............. 2.49 (2.37) 0.64
---------- ---------- ----------
Less Distributions
Dividends from net investment income ............................................. (0.19) (0.23) (0.16)
Dividends in excess of net investment income ..................................... 0.00** 0.00** (0.04)
Distributions from net realized gains ............................................ -- -- (0.04)
Distributions in excess of net realized gains .................................... -- -- --
Return of capital ................................................................ (0.06) -- (0.20)
---------- ---------- ----------
Total dividends and distributions ............................................ (0.25) (0.23) (0.44)
---------- ---------- ----------
Net asset value, end of period ................................................... $ 9.99 $ 7.75 $ 10.35
========== ========== ==========
Total Investment Return (2) ......................................................... 32.09% (23.11)% 6.23%
Ratios/ Supplemental Data
Net assets, end of period (in 000's) ............................................. $ 53,957 $ 34,099 $ 41,406
Ratios of expenses to average net assets (5) ..................................... 1.00% 1.05% 1.33%
Ratios of net investment income/(loss) to average net assets (5) ................. 2.03% 2.38% 1.57%
Portfolio turnover (6) ........................................................... 13.83% 1.49% 5.30%
* Commencement of operations.
** Less than one cent per share.
+ Based on average shares outstanding throughout the period.
(1) Net asset value per share on March 12, 1996 (commencement of operations).
(2) Total investment return is calculated assuming a purchase of capital stock at
net asset value per share on the first day and a sale at the net asset value
per share on the last day of the period reported. Dividends and distributions,
if any, are assumed, for purposes of this calculation, to be reinvested at the
net asset value per share on the ex-dividend date.
(3) Annualized.
(4) Not Annualized.
(5) Includes voluntary waivers through December 31, 1996. If such waivers had not
been made the ratios of expenses to average net assets and ratios of net
investment income/(loss) to average net assets would have been as follows:
Ratios of expenses to average net assets before waivers ...................... -- -- 1.33%
Ratios of net investment income/(loss) to average
net assets before waivers ................................................. -- -- 1.57%
(6) Excludes portfolio securities received or delivered as a result of processing
capital share transactions in Creation Unit(s).
<CAPTION>
Australia Austria
WEBS WEBS
Index Index
Series Series
---------- ----------------------------
For the For the For the
period year year
03/12/96*- ended ended
08/31/96 08/31/99 08/31/98
---------- ---------- ----------
<S> <C> <C> <C>
Per Share Operating Performance
Net asset value, beginning of period ............................................. $ 9.95(1) $ 10.11 $ 10.51
---------- ---------- ----------
Net investment income/(loss) (+) ................................................. 0.10 0.10 0.06
Net realized and unrealized gain/(loss) on investments and foreign currency
related transactions and translation of other assets and liabilities denominated
in foreign currencies .......................................................... 0.29 (0.98) 0.20
---------- ---------- ----------
Net increase/(decrease) in net assets resulting from operations .............. 0.39 (0.88) 0.26
---------- ---------- ----------
Less Distributions
Dividends from net investment income ............................................. (0.08) (0.07) (0.04)
Dividends in excess of net investment income ..................................... (0.05) (0.01) (0.01)
Distributions from net realized gains ............................................ (0.02) -- (0.61)
Distributions in excess of net realized gains .................................... -- -- 0.00**
Return of capital ................................................................ (0.04) (0.02) 0.00**
---------- ---------- ----------
Total dividends and distributions ............................................ (0.19) (0.10) (0.66)
---------- ---------- ----------
Net asset value, end of period ................................................... $ 10.15 $ 9.13 $ 10.11
========== ========== ==========
Total Investment Return (2) ......................................................... 3.88%(4) (8.69)% 2.16%
Ratios/ Supplemental Data
Net assets, end of period (in 000's) ............................................. $ 12,177 $ 12,776 $ 8,085
Ratios of expenses to average net assets (5) ..................................... 1.59%(3) 1.31% 1.41%
Ratios of net investment income/(loss) to average net assets (5) ................. 2.18%(3) 1.04% 0.51%
Portfolio turnover (6) ........................................................... 8.84%(4) 49.95% 36.14%
* Commencement of operations.
** Less than one cent per share.
+ Based on average shares outstanding throughout the period.
(1) Net asset value per share on March 12, 1996 (commencement of operations).
(2) Total investment return is calculated assuming a purchase of capital stock at
net asset value per share on the first day and a sale at the net asset value
per share on the last day of the period reported. Dividends and distributions,
if any, are assumed, for purposes of this calculation, to be reinvested at the
net asset value per share on the ex-dividend date.
(3) Annualized.
(4) Not Annualized.
(5) Includes voluntary waivers through December 31, 1996. If such waivers had not
been made the ratios of expenses to average net assets and ratios of net
investment income/(loss) to average net assets would have been as follows:
Ratios of expenses to average net assets before waivers ...................... 1.60%(3) -- --
Ratios of net investment income/(loss) to average
net assets before waivers ................................................. 2.17%(3) -- --
(6) Excludes portfolio securities received or delivered as a result of processing
capital share transactions in Creation Unit(s).
<CAPTION>
Austria Belgium
WEBS WEBS
Index Index
Series Series
------------------------- ----------
For the For the For the
year period year
ended 03/12/96*- ended
08/31/97 08/31/96 08/31/99
---------- ---------- ----------
<S> <C> <C> <C>
Per Share Operating Performance
Net asset value, beginning of period ............................................. $ 10.40 $ 10.91(1) $ 18.40
---------- ---------- ----------
Net investment income/(loss) (+) ................................................. (0.02) 0.04 0.08
Net realized and unrealized gain/(loss) on investments and foreign currency
related transactions and translation of other assets and liabilities denominated
in foreign currencies .......................................................... 0.13 (0.41) (0.30)
---------- ---------- ----------
Net increase/(decrease) in net assets resulting from operations .............. 0.11 (0.37) (0.22)
---------- ---------- ----------
Less Distributions
Dividends from net investment income ............................................. -- (0.02) --
Dividends in excess of net investment income ..................................... -- (0.01) (0.01)
Distributions from net realized gains ............................................ -- (0.03) (1.19)
Distributions in excess of net realized gains .................................... -- -- --
Return of capital ................................................................ -- (0.08) (0.91)
---------- ---------- ----------
Total dividends and distributions ............................................ -- (0.14) (2.11)
---------- ---------- ----------
Net asset value, end of period ................................................... $ 10.51 $ 10.40 $ 16.07
========== ========== ==========
Total Investment Return (2) ......................................................... 1.06% (3.39)%(4) (1.00)%
Ratios/ Supplemental Data
Net assets, end of period (in 000's) ............................................. $ 4,205 $ 13,520 $ 13,496
Ratios of expenses to average net assets (5) ..................................... 1.68% 1.56%(3) 1.24%
Ratios of net investment income/(loss) to average net assets (5) ................. (0.22)% 0.87%(3) 0.45%
Portfolio turnover (6) ........................................................... 28.47% 9.60%(4) 62.99%
* Commencement of operations.
** Less than one cent per share.
+ Based on average shares outstanding throughout the period.
(1) Net asset value per share on March 12, 1996 (commencement of operations).
(2) Total investment return is calculated assuming a purchase of capital stock at
net asset value per share on the first day and a sale at the net asset value
per share on the last day of the period reported. Dividends and distributions,
if any, are assumed, for purposes of this calculation, to be reinvested at the
net asset value per share on the ex-dividend date.
(3) Annualized.
(4) Not Annualized.
(5) Includes voluntary waivers through December 31, 1996. If such waivers had not
been made the ratios of expenses to average net assets and ratios of net
investment income/(loss) to average net assets would have been as follows:
Ratios of expenses to average net assets before waivers ...................... 1.69% 1.57%(3) --
Ratios of net investment income/(loss) to average
net assets before waivers ................................................. (0.22)% 0.86%(3) --
(6) Excludes portfolio securities received or delivered as a result of processing
capital share transactions in Creation Unit(s).
<CAPTION>
Belgium
WEBS
Index
Series
----------------------------------------
For the For the For the
year year period
ended ended 03/12/96*-
08/31/98 08/31/97 08/31/96
---------- ---------- ----------
<S> <C> <C> <C>
Per Share Operating Performance
Net asset value, beginning of period ............................................. $ 15.64 $ 14.99 $ 14.92(1)
---------- ---------- ----------
Net investment income/(loss) (+) ................................................. 0.24 0.77 0.40
Net realized and unrealized gain/(loss) on investments and foreign currency
related transactions and translation of other assets and liabilities denominated
in foreign currencies .......................................................... 6.09 0.62 0.36
---------- ---------- ----------
Net increase/(decrease) in net assets resulting from operations .............. 6.33 1.39 0.76
---------- ---------- ----------
Less Distributions
Dividends from net investment income ............................................. (0.27) (0.33) (0.54)
Dividends in excess of net investment income ..................................... (1.21) (0.28) (0.09)
Distributions from net realized gains ............................................ (1.99) (0.12) (0.06)
Distributions in excess of net realized gains .................................... -- -- --
Return of capital ................................................................ (0.10) (0.01) --
---------- ---------- ----------
Total dividends and distributions ............................................ (3.57) (0.74) (0.69)
---------- ---------- ----------
Net asset value, end of period ................................................... $ 18.40 $ 15.64 $ 14.99
========== ========== ==========
Total Investment Return (2) ......................................................... 39.42% 9.26% 5.01%(4)
Ratios/ Supplemental Data
Net assets, end of period (in 000's) ............................................. $ 25,765 $ 32,528 $ 1,800
Ratios of expenses to average net assets (5) ..................................... 1.04% 1.24% 2.29%(3)
Ratios of net investment income/(loss) to average net assets (5) ................. 1.28% 4.63% 5.67%(3)
Portfolio turnover (6) ........................................................... 50.46% 16.83% 6.25%(4)
* Commencement of operations.
** Less than one cent per share.
+ Based on average shares outstanding throughout the period.
(1) Net asset value per share on March 12, 1996 (commencement of operations).
(2) Total investment return is calculated assuming a purchase of capital stock at
net asset value per share on the first day and a sale at the net asset value
per share on the last day of the period reported. Dividends and distributions,
if any, are assumed, for purposes of this calculation, to be reinvested at the
net asset value per share on the ex-dividend date.
(3) Annualized.
(4) Not Annualized.
(5) Includes voluntary waivers through December 31, 1996. If such waivers had not
been made the ratios of expenses to average net assets and ratios of net
investment income/(loss) to average net assets would have been as follows:
Ratios of expenses to average net assets before waivers ...................... -- 1.24% 2.30%(3)
Ratios of net investment income/(loss) to average
net assets before waivers ................................................. -- 4.63% 5.66%(3)
(6) Excludes portfolio securities received or delivered as a result of processing
capital share transactions in Creation Unit(s).
</TABLE>
See accompanying notes to financial statements.
52-53
<PAGE>
FINANCIAL HIGHLIGHTS (continued) WEBS INDEX FUND, INC.
FOREIGN FUND, INC.
================================================================================
(For a share outstanding throughout the period)
<TABLE>
<CAPTION>
Canada
WEBS
Index
Series
-------------------------------------------
For the For the For the
year year year
ended ended ended
08/31/99 08/31/98 08/31/97
----------- ----------- -----------
<S> <C> <C> <C>
Per Share Operating Performance
Net asset value, beginning of period ............................................. $ 9.90 $ 13.43 $ 10.60
----------- ----------- -----------
Net investment income/(loss) (+) ................................................. 0.07 0.07 0.05
Net realized and unrealized gain/(loss) on investments and foreign currency
related transactions and translation of other assets and liabilities denominated
in foreign currencies .......................................................... 3.87 (2.89) 2.97
----------- ----------- -----------
Net increase/(decrease) in net assets resulting from operations .............. 3.94 (2.82) 3.02
----------- ----------- -----------
Less Distributions
Dividends from net investment income ............................................. (0.08) (0.13) (0.05)
Dividends in excess of net investment income ..................................... (0.01) (0.00)** (0.00)**
Distributions from net realized gains ............................................ (0.53) (0.58) (0.14)
Distributions in excess of net realized gains .................................... -- -- --
Return of capital ................................................................ -- -- --
----------- ----------- -----------
Total dividends and distributions ............................................ (0.62) (0.71) (0.19)
----------- ----------- -----------
Net asset value, end of period ................................................... $ 13.22 $ 9.90 $ 13.43
=========== =========== ===========
Total Investment Return (2) ......................................................... 39.71% (21.69)% 28.50%
Ratios/ Supplemental Data
Net assets, end of period (in 000's) ............................................. $ 9,253 $ 6,932 $ 24,168
Ratios of expenses to average net assets (5) ..................................... 1.23% 1.14% 1.35%
Ratios of net investment income/(loss) to average net assets (5) ................. 0.53% 0.46% 0.39%
Portfolio turnover (6) ........................................................... 11.66% 3.70% 11.02%
* Commencement of operations.
** Less than one cent per share.
+ Based on average shares outstanding throughout the period.
(1) Net asset value per share on March 12, 1996 (commencement of operations).
(2) Total investment return is calculated assuming a purchase of capital stock at
net asset value per share on the first day and a sale at the net asset value
per share on the last day of the period reported. Dividends and distributions,
if any, are assumed, for purposes of this calculation, to be reinvested at the
net asset value per share on the ex-dividend date.
(3) Annualized.
(4) Not Annualized.
(5) Includes voluntary waivers through December 31, 1996. If such waivers had not
been made the ratios of expenses to average net assets and ratios of net
investment income/(loss) to average net assets would have been as follows:
Ratios of expenses to average net assets before waivers ...................... -- -- 1.36%
Ratios of net investment income/(loss) to average
net assets before waivers ................................................. -- -- 0.39%
(6) Excludes portfolio securities received or delivered as a result of processing
capital share transactions in Creation Unit(s).
<CAPTION>
Canada France
WEBS WEBS
Index Index
Series Series
----------- ---------------------------
For the For the For the
period year year
03/12/96*- ended ended
08/31/96 08/31/99 08/31/98
----------- ----------- -----------
<S> <C> <C> <C>
Per Share Operating Performance
Net asset value, beginning of period ............................................. $ 10.17(1) $ 19.13 $ 14.50
----------- ----------- -----------
Net investment income/(loss) (+) ................................................. 0.04 0.14 0.30
Net realized and unrealized gain/(loss) on investments and foreign currency
related transactions and translation of other assets and liabilities denominated
in foreign currencies .......................................................... 0.43 3.88 4.76
----------- ----------- -----------
Net increase/(decrease) in net assets resulting from operations .............. 0.47 4.02 5.06
----------- ----------- -----------
Less Distributions
Dividends from net investment income ............................................. (0.03) (0.10) (0.19)
Dividends in excess of net investment income ..................................... (0.01) (0.02) (0.03)
Distributions from net realized gains ............................................ -- (0.05) (0.13)
Distributions in excess of net realized gains .................................... 0.00** -- (0.01)
Return of capital ................................................................ 0.00** (0.08) (0.07)
----------- ----------- -----------
Total dividends and distributions ............................................ (0.04) (0.25) (0.43)
----------- ----------- -----------
Net asset value, end of period ................................................... $ 10.60 $ 22.90 $ 19.13
=========== =========== ===========
Total Investment Return (2) ......................................................... 4.63%(4) 21.01% 34.77%
Ratios/ Supplemental Data
Net assets, end of period (in 000's) ............................................. $ 13,776 $ 77,885 $ 45,922
Ratios of expenses to average net assets (5) ..................................... 1.44%(3) 1.06% 1.18%
Ratios of net investment income/(loss) to average net assets (5) ................. 0.79%(3) 0.67% 1.58%
Portfolio turnover (6) ........................................................... 0.00%(4) 0.00% 5.65%
* Commencement of operations.
** Less than one cent per share.
+ Based on average shares outstanding throughout the period.
(1) Net asset value per share on March 12, 1996 (commencement of operations).
(2) Total investment return is calculated assuming a purchase of capital stock at
net asset value per share on the first day and a sale at the net asset value
per share on the last day of the period reported. Dividends and distributions,
if any, are assumed, for purposes of this calculation, to be reinvested at the
net asset value per share on the ex-dividend date.
(3) Annualized.
(4) Not Annualized.
(5) Includes voluntary waivers through December 31, 1996. If such waivers had not
been made the ratios of expenses to average net assets and ratios of net
investment income/(loss) to average net assets would have been as follows:
Ratios of expenses to average net assets before waivers ...................... 1.45%(3) -- --
Ratios of net investment income/(loss) to average
net assets before waivers ................................................. 0.78%(3) -- --
(6) Excludes portfolio securities received or delivered as a result of processing
capital share transactions in Creation Unit(s).
<CAPTION>
France Germany
WEBS WEBS
Index Index
Series Series
--------------------------- -----------
For the For the For the
year period year
ended 03/12/96*- ended
08/31/97 08/31/96 08/31/99
----------- ----------- -----------
<S> <C> <C> <C>
Per Share Operating Performance
Net asset value, beginning of period ............................................. $ 12.73 $ 12.42(1) $ 20.25
----------- ----------- -----------
Net investment income/(loss) (+) ................................................. 0.17 0.17 0.12
Net realized and unrealized gain/(loss) on investments and foreign currency
related transactions and translation of other assets and liabilities denominated
in foreign currencies .......................................................... 1.95 0.45 1.31
----------- ----------- -----------
Net increase/(decrease) in net assets resulting from operations .............. 2.12 0.62 1.43
----------- ----------- -----------
Less Distributions
Dividends from net investment income ............................................. (0.15) (0.09) (0.10)
Dividends in excess of net investment income ..................................... -- (0.01) (0.01)
Distributions from net realized gains ............................................ (0.20) 0.00** (0.31)
Distributions in excess of net realized gains .................................... -- -- (0.08)
Return of capital ................................................................ -- (0.21) (0.01)
----------- ----------- -----------
Total dividends and distributions ............................................ (0.35) (0.31) (0.51)
----------- ----------- -----------
Net asset value, end of period ................................................... $ 14.50 $ 12.73 $ 21.17
=========== =========== ===========
Total Investment Return (2) ......................................................... 16.60% 4.95%(4) 7.04%
Ratios/ Supplemental Data
Net assets, end of period (in 000's) ............................................. $ 14,519 $ 22,930 $ 101,645
Ratios of expenses to average net assets (5) ..................................... 1.52% 1.84%(3) 1.00%
Ratios of net investment income/(loss) to average net assets (5) ................. 1.17% 2.72%(3) 0.57%
Portfolio turnover (6) ........................................................... 7.13% 0.00%(4) 13.67%
* Commencement of operations.
** Less than one cent per share.
+ Based on average shares outstanding throughout the period.
(1) Net asset value per share on March 12, 1996 (commencement of operations).
(2) Total investment return is calculated assuming a purchase of capital stock at
net asset value per share on the first day and a sale at the net asset value
per share on the last day of the period reported. Dividends and distributions,
if any, are assumed, for purposes of this calculation, to be reinvested at the
net asset value per share on the ex-dividend date.
(3) Annualized.
(4) Not Annualized.
(5) Includes voluntary waivers through December 31, 1996. If such waivers had not
been made the ratios of expenses to average net assets and ratios of net
investment income/(loss) to average net assets would have been as follows:
Ratios of expenses to average net assets before waivers ...................... 1.52% 1.85%(3) --
Ratios of net investment income/(loss) to average
net assets before waivers ................................................. 1.17% 2.71%(3) --
(6) Excludes portfolio securities received or delivered as a result of processing
capital share transactions in Creation Unit(s).
<CAPTION>
Germany
WEBS
Index
Series
----------------------------------------
For the For the For the
year year period
ended ended 03/12/96*-
08/31/98 08/31/97 08/31/96
---------- ----------- -----------
<S> <C> <C> <C>
Per Share Operating Performance
Net asset value, beginning of period ............................................. $ 16.31 $ 13.64 $ 13.23(1)
----------- ----------- -----------
Net investment income/(loss) (+) ................................................. 0.29 0.03 0.06
Net realized and unrealized gain/(loss) on investments and foreign currency
related transactions and translation of other assets and liabilities denominated
in foreign currencies .......................................................... 3.92 2.77 0.47
----------- ----------- -----------
Net increase/(decrease) in net assets resulting from operations .............. 4.21 2.80 0.53
----------- ----------- -----------
Less Distributions
Dividends from net investment income ............................................. (0.17) (0.03) (0.03)
Dividends in excess of net investment income ..................................... (0.01) (0.01) (0.01)
Distributions from net realized gains ............................................ (0.01) (0.07) --
Distributions in excess of net realized gains .................................... 0.00** -- (0.01)
Return of capital ................................................................ (0.08) (0.02) (0.07)
----------- ----------- -----------
Total dividends and distributions ............................................ (0.27) (0.13) (0.12)
----------- ----------- -----------
Net asset value, end of period ................................................... $ 20.25 $ 16.31 $ 13.64
=========== =========== ===========
Total Investment Return (2) ......................................................... 25.69% 20.51% 4.00%(4)
Ratios/ Supplemental Data
Net assets, end of period (in 000's) ............................................. $ 72,934 $ 24,486 $ 28,664
Ratios of expenses to average net assets (5) ..................................... 1.08% 1.37% 1.68%(3)
Ratios of net investment income/(loss) to average net assets (5) ................. 1.43% 0.23% 1.00%(3)
Portfolio turnover (6) ........................................................... 0.64% 9.04% 0.00%(4)
* Commencement of operations.
** Less than one cent per share.
+ Based on average shares outstanding throughout the period.
(1) Net asset value per share on March 12, 1996 (commencement of operations).
(2) Total investment return is calculated assuming a purchase of capital stock at
net asset value per share on the first day and a sale at the net asset value
per share on the last day of the period reported. Dividends and distributions,
if any, are assumed, for purposes of this calculation, to be reinvested at the
net asset value per share on the ex-dividend date.
(3) Annualized.
(4) Not Annualized.
(5) Includes voluntary waivers through December 31, 1996. If such waivers had not
been made the ratios of expenses to average net assets and ratios of net
investment income/(loss) to average net assets would have been as follows:
Ratios of expenses to average net assets before waivers ...................... -- 1.37% 1.69%(3)
Ratios of net investment income/(loss) to average
net assets before waivers ................................................. -- 0.22% 0.99%(3)
(6) Excludes portfolio securities received or delivered as a result of processing
capital share transactions in Creation Unit(s).
</TABLE>
See accompanying notes to financial statements.
54-55
<PAGE>
FINANCIAL HIGHLIGHTS (continued) WEBS INDEX FUND, INC.
FOREIGN FUND, INC.
===============================================================================
(For a share outstanding throughout the period)
<TABLE>
<CAPTION>
Hong Kong
WEBS
Index
Series
----------------------------------------------
For the For the For the
year year year
ended ended ended
08/31/99 08/31/98 08/31/97
----------- ----------- -----------
<S> <C> <C> <C>
Per Share Operating Performance
Net asset value, beginning of period ............................................. $ 6.41 $ 14.73 $ 13.05
----------- ----------- -----------
Net investment income/(loss) (+) ................................................. 0.29 0.35 0.26
Net realized and unrealized gain/(loss) on investments and foreign currency
related transactions and translation of other assets and liabilities denominated
in foreign currencies .......................................................... 5.49 (8.27) 2.12
----------- ----------- -----------
Net increase/(decrease) in net assets resulting from operations .............. 5.78 (7.92) 2.38
----------- ----------- -----------
Less Distributions
Dividends from net investment income ............................................. (0.31) (0.28) (0.21)
Dividends in excess of net investment income ..................................... (0.05) 0.00** (0.01)
Distributions from net realized gains ............................................ -- -- (0.34)
Distributions in excess of net realized gains .................................... -- -- 0.00**
Return of capital ................................................................ -- (0.12) (0.14)
----------- ----------- -----------
Total dividends and distributions ............................................ (0.36) (0.40) (0.70)
----------- ----------- -----------
Net asset value, end of period ................................................... $ 11.83 $ 6.41 $ 14.73
=========== =========== ===========
Total Investment Return (2) ......................................................... 90.51% (54.22)% 17.80%
Ratios/ Supplemental Data
Net assets, end of period (in 000's) ............................................. $ 77,200 $ 49,973 $ 25,417
Ratios of expenses to average net assets (5) ..................................... 1.01% 1.09% 1.43%
Ratios of net investment income/(loss) to average net assets (5) ................. 2.84% 3.76% 1.71%
Portfolio turnover (6) ........................................................... 42.89% 21.50% 22.90%
* Commencement of operations.
** Less than one cent per share.
+ Based on average shares outstanding throughout the period.
(1) Net asset value per share on March 12, 1996 (commencement of operations).
(2) Total investment return is calculated assuming a purchase of capital stock at
net asset value per share on the first day and a sale at the net asset value
per share on the last day of the period reported. Dividends and distributions,
if any, are assumed, for purposes of this calculation, to be reinvested at the
net asset value per share on the ex-dividend date.
(3) Annualized.
(4) Not Annualized.
(5) Includes voluntary waivers through December 31, 1996. If such waivers had not
been made the ratios of expenses to average net assets and ratios of net
investment income/(loss) to average net assets would have been as follows:
Ratios of expenses to average net assets before waivers ...................... -- -- 1.43%
Ratios of net investment income/(loss) to average
net assets before waivers ................................................. -- -- 1.71%
(6) Excludes portfolio securities received or delivered as a result of processing
capital share transactions in Creation Unit(s).
<CAPTION>
Hong Kong Italy
WEBS WEBS
Index Index
Series Series
----------- ----------------------------
For the For the For the
period year year
03/12/96*- ended ended
08/31/96 08/31/99 08/31/98
----------- ----------- -----------
<S> <C> <C> <C>
Per Share Operating Performance
Net asset value, beginning of period ............................................. $ 12.83(1) $ 22.89 $ 16.66
----------- ----------- -----------
Net investment income/(loss) (+) ................................................. 0.15 0.17 0.18
Net realized and unrealized gain/(loss) on investments and foreign currency
related transactions and translation of other assets and liabilities denominated
in foreign currencies .......................................................... 0.27 1.05 7.94
----------- ----------- -----------
Net increase/(decrease) in net assets resulting from operations .............. 0.42 1.22 8.12
----------- ----------- -----------
Less Distributions
Dividends from net investment income ............................................. (0.13) (0.06) (0.18)
Dividends in excess of net investment income ..................................... (0.02) -- (1.02)
Distributions from net realized gains ............................................ (0.01) (2.24) (0.69)
Distributions in excess of net realized gains .................................... -- -- --
Return of capital ................................................................ (0.04) (0.25) --
----------- ----------- -----------
Total dividends and distributions ............................................ (0.20) (2.55) (1.89)
----------- ----------- -----------
Net asset value, end of period ................................................... $ 13.05 $ 21.56 $ 22.89
=========== =========== ===========
Total Investment Return (2) ......................................................... 3.22%(4) 5.14% 47.66%
Ratios/ Supplemental Data
Net assets, end of period (in 000's) ............................................. $ 7,845 $ 58,224 $ 58,368
Ratios of expenses to average net assets (5) ..................................... 1.52%(3) 1.03% 1.02%
Ratios of net investment income/(loss) to average net assets (5) ................. 2.37%(3) 0.70% 0.76%
Portfolio turnover (6) ........................................................... 0.00%(4) 7.89% 8.16%
* Commencement of operations.
** Less than one cent per share.
+ Based on average shares outstanding throughout the period.
(1) Net asset value per share on March 12, 1996 (commencement of operations).
(2) Total investment return is calculated assuming a purchase of capital stock at
net asset value per share on the first day and a sale at the net asset value
per share on the last day of the period reported. Dividends and distributions,
if any, are assumed, for purposes of this calculation, to be reinvested at the
net asset value per share on the ex-dividend date.
(3) Annualized.
(4) Not Annualized.
(5) Includes voluntary waivers through December 31, 1996. If such waivers had not
been made the ratios of expenses to average net assets and ratios of net
investment income/(loss) to average net assets would have been as follows:
Ratios of expenses to average net assets before waivers ...................... 1.53%(3) -- --
Ratios of net investment income/(loss) to average
net assets before waivers ................................................. 2.36%(3) -- --
(6) Excludes portfolio securities received or delivered as a result of processing
capital share transactions in Creation Unit(s).
<CAPTION>
Italy Japan
WEBS WEBS
Index Index
Series Series
---------------------------- -----------
For the For the For the
year period year
ended 03/12/96*- ended
08/31/97 08/31/96 08/31/99
----------- ----------- -----------
<S> <C> <C> <C>
Per Share Operating Performance
Net asset value, beginning of period ............................................. $ 13.79 $ 13.62(1) $ 8.39
----------- ----------- -----------
Net investment income/(loss) (+) ................................................. 0.12 0.25 (0.03)
Net realized and unrealized gain/(loss) on investments and foreign currency
related transactions and translation of other assets and liabilities denominated
in foreign currencies .......................................................... 3.10 0.31 4.91
----------- ----------- -----------
Net increase/(decrease) in net assets resulting from operations .............. 3.22 0.56 4.88
----------- ----------- -----------
Less Distributions
Dividends from net investment income ............................................. (0.11) (0.14) --
Dividends in excess of net investment income ..................................... (0.24) (0.03) (0.04)
Distributions from net realized gains ............................................ -- (0.14) --
Distributions in excess of net realized gains .................................... -- -- --
Return of capital ................................................................ -- (0.08) (0.01)
----------- ----------- -----------
Total dividends and distributions ............................................ (0.35) (0.39) (0.05)
----------- ----------- -----------
Net asset value, end of period ................................................... $ 16.66 $ 13.79 $ 13.22
=========== =========== ===========
Total Investment Return (2) ......................................................... 23.37% 4.11%(4) 58.14%
Ratios/ Supplemental Data
Net assets, end of period (in 000's) ............................................. $ 32,495 $ 35,170 $ 713,653
Ratios of expenses to average net assets (5) ..................................... 1.33% 1.43%(3) 0.94%
Ratios of net investment income/(loss) to average net assets (5) ................. 0.76% 3.69%(3) (0.27)%
Portfolio turnover (6) ........................................................... 13.70% 19.80%(4) 0.00%
* Commencement of operations.
** Less than one cent per share.
+ Based on average shares outstanding throughout the period.
(1) Net asset value per share on March 12, 1996 (commencement of operations).
(2) Total investment return is calculated assuming a purchase of capital stock at
net asset value per share on the first day and a sale at the net asset value
per share on the last day of the period reported. Dividends and distributions,
if any, are assumed, for purposes of this calculation, to be reinvested at the
net asset value per share on the ex-dividend date.
(3) Annualized.
(4) Not Annualized.
(5) Includes voluntary waivers through December 31, 1996. If such waivers had not
been made the ratios of expenses to average net assets and ratios of net
investment income/(loss) to average net assets would have been as follows:
Ratios of expenses to average net assets before waivers ...................... 1.33% 1.44%(3) --
Ratios of net investment income/(loss) to average
net assets before waivers ................................................. 0.76% 3.68%(3) --
(6) Excludes portfolio securities received or delivered as a result of processing
capital share transactions in Creation Unit(s).
<CAPTION>
Japan
WEBS
Index
Series
-----------------------------------------
For the For the For the
year year period
ended ended 03/12/96*-
08/31/98 08/31/97 08/31/96
----------- ----------- -----------
<S> <C> <C> <C>
Per Share Operating Performance
Net asset value, beginning of period ............................................. $ 12.61 $ 14.33 $ 14.79(1)
----------- ----------- -----------
Net investment income/(loss) (+) ................................................. (0.02) (0.06) (0.07)
Net realized and unrealized gain/(loss) on investments and foreign currency
related transactions and translation of other assets and liabilities denominated
in foreign currencies .......................................................... (4.19) (1.65) (0.39)
----------- ----------- -----------
Net increase/(decrease) in net assets resulting from operations .............. (4.21) (1.71) (0.46)
----------- ----------- -----------
Less Distributions
Dividends from net investment income ............................................. -- -- --
Dividends in excess of net investment income ..................................... -- -- --
Distributions from net realized gains ............................................ 0.00** -- --
Distributions in excess of net realized gains .................................... -- (0.01) --
Return of capital ................................................................ (0.01) -- --
----------- ----------- -----------
Total dividends and distributions ............................................ (0.01) (0.01) --
----------- ----------- -----------
Net asset value, end of period ................................................... $ 8.39 $ 12.61 $ 14.33
=========== =========== ===========
Total Investment Return (2) ......................................................... (33.38)% (11.97)% (3.11)%(4)
Ratios/ Supplemental Data
Net assets, end of period (in 000's) ............................................. $ 201,485 $ 158,957 $ 103,164
Ratios of expenses to average net assets (5) ..................................... 1.04% 1.19% 1.37%(3)
Ratios of net investment income/(loss) to average net assets (5) ................. (0.21)% (0.48)% (1.01)%(3)
Portfolio turnover (6) ........................................................... 0.00% 12.90% 21.54%(4)
* Commencement of operations.
** Less than one cent per share.
+ Based on average shares outstanding throughout the period.
(1) Net asset value per share on March 12, 1996 (commencement of operations).
(2) Total investment return is calculated assuming a purchase of capital stock at
net asset value per share on the first day and a sale at the net asset value
per share on the last day of the period reported. Dividends and distributions,
if any, are assumed, for purposes of this calculation, to be reinvested at the
net asset value per share on the ex-dividend date.
(3) Annualized.
(4) Not Annualized.
(5) Includes voluntary waivers through December 31, 1996. If such waivers had not
been made the ratios of expenses to average net assets and ratios of net
investment income/(loss) to average net assets would have been as follows:
Ratios of expenses to average net assets before waivers ...................... -- 1.19% 1.38%(3)
Ratios of net investment income/(loss) to average
net assets before waivers ................................................. -- (0.48)% (1.02)%(3)
(6) Excludes portfolio securities received or delivered as a result of processing
capital share transactions in Creation Unit(s).
</TABLE>
See accompanying notes to financial statements.
56-57
<PAGE>
FINANCIAL HIGHLIGHTS (continued) WEBS INDEX FUND, INC.
FOREIGN FUND, INC.
================================================================================
(For a share outstanding throughout the period)
<TABLE>
<CAPTION>
Malaysia (Free)
WEBS
Index
Series
----------------------------------------
For the For the For the
year year year
ended ended ended
08/31/99 08/31/98 08/31/97
---------- ---------- ----------
<S> <C> <C> <C>
Per Share Operating Performance
Net asset value, beginning of period ............................................. $ 2.11 $ 8.23 $ 13.80
---------- ---------- ----------
Net investment income/(loss) (+) ................................................. 0.01 0.06 0.01
Net realized and unrealized gain/(loss) on investments and foreign currency
related transactions and translation of other assets and liabilities denominated
in foreign currencies .......................................................... 3.67 (6.10) (5.55)
---------- ---------- ----------
Net increase/(decrease) in net assets resulting from operations .............. 3.68 (6.04) (5.54)
---------- ---------- ----------
Less Distributions
Dividends from net investment income ............................................. (0.01) (0.05) 0.00**
Dividends in excess of net investment income ..................................... -- -- (0.01)
Distributions from net realized gains ............................................ -- -- --
Distributions in excess of net realized gains .................................... -- -- --
Return of capital ................................................................ (0.19) (0.03) (0.02)
---------- ---------- ----------
Total dividends and distributions ............................................ (0.20) (0.08) (0.03)
---------- ---------- ----------
Net asset value, end of period ................................................... $ 5.59 $ 2.11 $ 8.23
========== ========== ==========
Total Investment Return (2) ......................................................... 185.81% (73.57)% (40.20)%
Ratios/ Supplemental Data
Net assets, end of period (in 000's) ............................................. $ 95,251 $ 35,867 $ 12,339
Ratios of expenses to average net assets (5) ..................................... 1.43% 1.09% 1.46%
Ratios of net investment income/(loss) to average net assets (5) ................. 0.33% 1.40% 0.04%
Portfolio turnover (6) ........................................................... 7.24% 2.11% 0.00%
* Commencement of operations.
** Less than one cent per share.
+ Based on average shares outstanding throughout the period.
(1) Net asset value per share on March 12, 1996 (commencement of operations).
(2) Total investment return is calculated assuming a purchase of capital stock at
net asset value per share on the first day and a sale at the net asset value
per share on the last day of the period reported. Dividends and distributions,
if any, are assumed, for purposes of this calculation, to be reinvested at the
net asset value per share on the ex-dividend date.
(3) Annualized.
(4) Not Annualized.
(5) Includes voluntary waivers through December 31, 1996. If such waivers had not
been made the ratios of expenses to average net assets and ratios of net
investment income/(loss) to average net assets would have been as follows:
Ratios of expenses to average net assets before waivers ...................... -- -- 1.47%
Ratios of net investment income/(loss) to average
net assets before waivers ................................................. -- -- 0.04%
(6) Excludes portfolio securities received or delivered as a result of processing
capital share transactions in Creation Unit(s).
<CAPTION>
Malaysia (Free) Mexico (Free)
WEBS WEBS
Index Index
Series Series
-------------- ---------------------------
For the For the For the
period year year
03/12/96*- ended ended
08/31/96 08/31/99 08/31/98
---------- ---------- ----------
<S> <C> <C> <C>
Per Share Operating Performance
Net asset value, beginning of period ............................................. $ 13.24(1) $ 8.11 $ 15.11
---------- ---------- ----------
Net investment income/(loss) (+) ................................................. (0.02) 0.06 0.09
Net realized and unrealized gain/(loss) on investments and foreign currency
related transactions and translation of other assets and liabilities denominated
in foreign currencies .......................................................... 0.59 5.36 (6.71)
---------- ---------- ----------
Net increase/(decrease) in net assets resulting from operations .............. 0.57 5.42 (6.62)
---------- ---------- ----------
Less Distributions
Dividends from net investment income ............................................. -- (0.06) (0.09)
Dividends in excess of net investment income ..................................... -- (0.01) --
Distributions from net realized gains ............................................ -- -- (0.29)
Distributions in excess of net realized gains .................................... -- (0.01) --
Return of capital ................................................................ (0.01) (0.06) --
---------- ---------- ----------
Total dividends and distributions ............................................ (0.01) (0.14) (0.38)
---------- ---------- ----------
Net asset value, end of period ................................................... $ 13.80 $ 13.39 $ 8.11
========== ========== ==========
Total Investment Return (2) ......................................................... 4.28%(4) 66.92% (44.18)%
Ratios/ Supplemental Data
Net assets, end of period (in 000's) ............................................. $ 9,318 $ 21,430 $ 7,296
Ratios of expenses to average net assets (5) ..................................... 1.58%(3) 1.26% 1.34%
Ratios of net investment income/(loss) to average net assets (5) ................. (0.35)%(3) 0.52% 0.60%
Portfolio turnover (6) ........................................................... 0.00%(4) 18.36% 14.05%
* Commencement of operations.
** Less than one cent per share.
+ Based on average shares outstanding throughout the period.
(1) Net asset value per share on March 12, 1996 (commencement of operations).
(2) Total investment return is calculated assuming a purchase of capital stock at
net asset value per share on the first day and a sale at the net asset value
per share on the last day of the period reported. Dividends and distributions,
if any, are assumed, for purposes of this calculation, to be reinvested at the
net asset value per share on the ex-dividend date.
(3) Annualized.
(4) Not Annualized.
(5) Includes voluntary waivers through December 31, 1996. If such waivers had not
been made the ratios of expenses to average net assets and ratios of net
investment income/(loss) to average net assets would have been as follows:
Ratios of expenses to average net assets before waivers ...................... 1.59%(3) -- --
Ratios of net investment income/(loss) to average
net assets before waivers ................................................. (0.36)%(3) -- --
(6) Excludes portfolio securities received or delivered as a result of processing
capital share transactions in Creation Unit(s).
<CAPTION>
Mexico (Free) Netherlands
WEBS WEBS
Index Index
Series Series
------------------------- -----------
For the For the For the
year period year
ended 03/12/96*- ended
08/31/97 08/31/96 08/31/99
---------- ---------- ----------
<S> <C> <C> <C>
Per Share Operating Performance
Net asset value, beginning of period ............................................. $ 11.52 $ 9.95(1) $ 23.50
---------- ---------- ----------
Net investment income/(loss) (+) ................................................. 0.02 0.00** 0.53
Net realized and unrealized gain/(loss) on investments and foreign currency
related transactions and translation of other assets and liabilities denominated
in foreign currencies .......................................................... 4.07 1.59 1.60
---------- ---------- ----------
Net increase/(decrease) in net assets resulting from operations .............. 4.09 1.59 2.13
---------- ---------- ----------
Less Distributions
Dividends from net investment income ............................................. (0.01) -- (0.43)
Dividends in excess of net investment income ..................................... (0.01) (0.01) (0.01)
Distributions from net realized gains ............................................ (0.44) -- (1.42)
Distributions in excess of net realized gains .................................... -- -- (0.24)
Return of capital ................................................................ (0.04) (0.01) (0.08)
---------- ---------- ----------
Total dividends and distributions ............................................ (0.50) (0.02) (2.18)
---------- ---------- ----------
Net asset value, end of period ................................................... $ 15.11 $ 11.52 $ 23.45
========== ========== ==========
Total Investment Return (2) ......................................................... 35.21% 15.93%(4) 8.98%
Ratios/ Supplemental Data
Net assets, end of period (in 000's) ............................................. $ 16,627 $ 5,759 $ 31,685
Ratios of expenses to average net assets (5) ..................................... 1.63% 1.75%(3) 1.07%
Ratios of net investment income/(loss) to average net assets (5) ................. 0.14% 0.01%(3) 2.20%
Portfolio turnover (6) ........................................................... 22.80% 0.00%(4) 32.13%
* Commencement of operations.
** Less than one cent per share.
+ Based on average shares outstanding throughout the period.
(1) Net asset value per share on March 12, 1996 (commencement of operations).
(2) Total investment return is calculated assuming a purchase of capital stock at
net asset value per share on the first day and a sale at the net asset value
per share on the last day of the period reported. Dividends and distributions,
if any, are assumed, for purposes of this calculation, to be reinvested at the
net asset value per share on the ex-dividend date.
(3) Annualized.
(4) Not Annualized.
(5) Includes voluntary waivers through December 31, 1996. If such waivers had not
been made the ratios of expenses to average net assets and ratios of net
investment income/(loss) to average net assets would have been as follows:
Ratios of expenses to average net assets before waivers ...................... 1.63% 1.76%(3) --
Ratios of net investment income/(loss) to average
net assets before waivers ................................................. 0.13% 0.00%(3) --
(6) Excludes portfolio securities received or delivered as a result of processing
capital share transactions in Creation Unit(s).
<CAPTION>
Netherlands
WEBS
Index
Series
---------------------------------------
For the For the For the
year year period
ended ended 03/12/96*-
08/31/98 08/31/97 08/31/96
---------- ---------- ----------
<S> <C> <C> <C>
Per Share Operating Performance
Net asset value, beginning of period ............................................. $ 21.42 $ 17.36 $ 15.91(1)
---------- ---------- ----------
Net investment income/(loss) (+) ................................................. 0.25 0.11 0.24
Net realized and unrealized gain/(loss) on investments and foreign currency
related transactions and translation of other assets and liabilities denominated
in foreign currencies .......................................................... 3.53 4.79 1.54
---------- ---------- ----------
Net increase/(decrease) in net assets resulting from operations .............. 3.78 4.90 1.78
---------- ---------- ----------
Less Distributions
Dividends from net investment income ............................................. (0.16) (0.10) (0.14)
Dividends in excess of net investment income ..................................... -- (0.01) (0.01)
Distributions from net realized gains ............................................ (1.47) (0.71) (0.08)
Distributions in excess of net realized gains .................................... -- -- (0.01)
Return of capital ................................................................ (0.07) (0.02) (0.09)
---------- ---------- ----------
Total dividends and distributions ............................................ (1.70) (0.84) (0.33)
---------- ---------- ----------
Net asset value, end of period ................................................... $ 23.50 $ 21.42 $ 17.36
========== ========== ==========
Total Investment Return (2) ......................................................... 17.41% 28.04% 11.19%(4)
Ratios/ Supplemental Data
Net assets, end of period (in 000's) ............................................. $ 22,349 $ 9,661 $ 6,962
Ratios of expenses to average net assets (5) ..................................... 1.12% 1.46% 1.63%(3)
Ratios of net investment income/(loss) to average net assets (5) ................. 1.00% 0.54% 2.93%(3)
Portfolio turnover (6) ........................................................... 15.81% 12.68% 4.32%(4)
* Commencement of operations.
** Less than one cent per share.
+ Based on average shares outstanding throughout the period.
(1) Net asset value per share on March 12, 1996 (commencement of operations).
(2) Total investment return is calculated assuming a purchase of capital stock at
net asset value per share on the first day and a sale at the net asset value
per share on the last day of the period reported. Dividends and distributions,
if any, are assumed, for purposes of this calculation, to be reinvested at the
net asset value per share on the ex-dividend date.
(3) Annualized.
(4) Not Annualized.
(5) Includes voluntary waivers through December 31, 1996. If such waivers had not
been made the ratios of expenses to average net assets and ratios of net
investment income/(loss) to average net assets would have been as follows:
Ratios of expenses to average net assets before waivers ...................... -- 1.46% 1.64%(3)
Ratios of net investment income/(loss) to average
net assets before waivers ................................................. -- 0.53% 2.92%(3)
(6) Excludes portfolio securities received or delivered as a result of processing
capital share transactions in Creation Unit(s).
</TABLE>
See accompanying notes to financial statements.
58-59
<PAGE>
FINANCIAL HIGHLIGHTS (continued) WEBS INDEX FUND, INC.
FOREIGN FUND, INC.
================================================================================
(For a share outstanding throughout the period)
<TABLE>
<CAPTION>
Singapore (Free)
WEBS
Index
Series
---------------------------------------------
For the For the For the
year year year
ended ended ended
08/31/99 08/31/98 08/31/97
----------- ----------- -----------
<S> <C> <C> <C>
Per Share Operating Performance
Net asset value, beginning of period ............................................. $ 3.30 $ 8.66 $ 11.38
----------- ----------- -----------
Net investment income/(loss) (+) ................................................. 0.05 0.07 0.00**
Net realized and unrealized gain/(loss) on investments and foreign currency
related transactions and translation of other assets and liabilities denominated
in foreign currencies .......................................................... 4.70 (5.37) (2.67)
----------- ----------- -----------
Net increase/(decrease) in net assets resulting from operations .............. 4.75 (5.30) (2.67)
----------- ----------- -----------
Less Distributions
Dividends from net investment income ............................................. (0.05) (0.04) 0.00**
Dividends in excess of net investment income ..................................... (0.06) (0.01) (0.01)
Distributions from net realized gains ............................................ -- -- (0.02)
Distributions in excess of net realized gains .................................... -- -- --
Return of capital ................................................................ (0.01) (0.01) (0.02)
----------- ----------- -----------
Total dividends and distributions ............................................ (0.12) (0.06) (0.05)
----------- ----------- -----------
Net asset value, end of period ................................................... $ 7.93 $ 3.30 $ 8.66
=========== =========== ===========
Total Investment Return (2) ......................................................... 144.52% (61.29)% (23.48)%
Ratios/ Supplemental Data
Net assets, end of period (in 000's) ............................................. $ 113,438 $ 47,248 $ 14,722
Ratios of expenses to average net assets (5) ..................................... 0.97% 1.08% 1.43%
Ratios of net investment income/(loss) to average net assets (5) ................. 0.76% 1.17% 0.03%
Portfolio turnover (6) ........................................................... 25.31% 67.17% 13.40%
* Commencement of operations.
** Less than one cent per share.
+ Based on average shares outstanding throughout the period.
(1) Net asset value per share on March 12, 1996 (commencement of operations).
(2) Total investment return is calculated assuming a purchase of capital stock at
net asset value per share on the first day and a sale at the net asset value
per share on the last day of the period reported. Dividends and distributions,
if any, are assumed, for purposes of this calculation, to be reinvested at the
net asset value per share on the ex-dividend date.
(3) Annualized.
(4) Not Annualized.
(5) Includes voluntary waivers through December 31, 1996. If such waivers had not
been made the ratios of expenses to average net assets and ratios of net
investment income/(loss) to average net assets would have been as follows:
Ratios of expenses to average net assets before waivers ...................... -- -- 1.43%
Ratios of net investment income/(loss) to average
net assets before waivers ................................................. -- -- 0.03%
(6) Excludes portfolio securities received or delivered as a result of processing
capital share transactions in Creation Unit(s).
<CAPTION>
Singapore (Free) Spain
WEBS WEBS
Index Index
Series Series
----------- -------------------------
For the For the For the
period year year
03/12/96*- ended ended
08/31/96 08/31/99 08/31/98
----------- ----------- -----------
<S> <C> <C> <C>
Per Share Operating Performance
Net asset value, beginning of period ............................................. $ 12.24(1) $ 23.84 $ 18.49
----------- ----------- -----------
Net investment income/(loss) (+) ................................................. 0.04 0.09 0.16
Net realized and unrealized gain/(loss) on investments and foreign currency
related transactions and translation of other assets and liabilities denominated
in foreign currencies .......................................................... (0.86) 3.14 5.94
----------- ----------- -----------
Net increase/(decrease) in net assets resulting from operations .............. (0.82) 3.23 6.10
----------- ----------- -----------
Less Distributions
Dividends from net investment income ............................................. (0.03) (0.07) (0.12)
Dividends in excess of net investment income ..................................... (0.01) (0.02) (0.02)
Distributions from net realized gains ............................................ -- (1.35) (0.55)
Distributions in excess of net realized gains .................................... -- -- --
Return of capital ................................................................ -- (0.04) (0.06)
----------- ----------- -----------
Total dividends and distributions ............................................ (0.04) (1.48) (0.75)
----------- ----------- -----------
Net asset value, end of period ................................................... $ 11.38 $ 25.59 $ 23.84
=========== =========== ===========
Total Investment Return (2) ......................................................... (6.73)%(4) 13.39% 32.58%
Ratios/ Supplemental Data
Net assets, end of period (in 000's) ............................................. $ 9,107 $ 36,469 $ 25,029
Ratios of expenses to average net assets (5) ..................................... 1.56%(3) 1.04% 1.11%
Ratios of net investment income/(loss) to average net assets (5) ................. 0.69%(3) 0.31% 0.61%
Portfolio turnover (6) ........................................................... 26.29%(4) 16.58% 9.10%
* Commencement of operations.
** Less than one cent per share.
+ Based on average shares outstanding throughout the period.
(1) Net asset value per share on March 12, 1996 (commencement of operations).
(2) Total investment return is calculated assuming a purchase of capital stock at
net asset value per share on the first day and a sale at the net asset value
per share on the last day of the period reported. Dividends and distributions,
if any, are assumed, for purposes of this calculation, to be reinvested at the
net asset value per share on the ex-dividend date.
(3) Annualized.
(4) Not Annualized.
(5) Includes voluntary waivers through December 31, 1996. If such waivers had not
been made the ratios of expenses to average net assets and ratios of net
investment income/(loss) to average net assets would have been as follows:
Ratios of expenses to average net assets before waivers ...................... 1.57%(3) -- --
Ratios of net investment income/(loss) to average
net assets before waivers ................................................. 0.68%(3) -- --
(6) Excludes portfolio securities received or delivered as a result of processing
capital share transactions in Creation Unit(s).
<CAPTION>
Spain Sweden
WEBS WEBS
Index Index
Series Series
--------------------------- ------------
For the For the For the
year period year
ended 03/12/96*- ended
08/31/97 08/31/96 08/31/99
----------- ----------- -----------
<S> <C> <C> <C>
Per Share Operating Performance
Net asset value, beginning of period ............................................. $ 14.09 $ 13.28(1) $ 18.39
----------- ----------- -----------
Net investment income/(loss) (+) ................................................. 0.19 0.14 0.10
Net realized and unrealized gain/(loss) on investments and foreign currency
related transactions and translation of other assets and liabilities denominated
in foreign currencies .......................................................... 5.33 0.98 4.52
----------- ----------- -----------
Net increase/(decrease) in net assets resulting from operations .............. 5.52 1.12 4.62
----------- ----------- -----------
Less Distributions
Dividends from net investment income ............................................. (0.12) (0.18) (0.09)
Dividends in excess of net investment income ..................................... (0.05) -- (0.01)
Distributions from net realized gains ............................................ (0.86) (0.13) (0.62)
Distributions in excess of net realized gains .................................... -- -- (0.01)
Return of capital ................................................................ (0.09) -- (0.02)
----------- ----------- -----------
Total dividends and distributions ............................................ (1.12) (0.31) (0.75)
----------- ----------- -----------
Net asset value, end of period ................................................... $ 18.49 $ 14.09 $ 22.26
=========== =========== ===========
Total Investment Return (2) ......................................................... 39.15% 8.45%(4) 25.09%
Ratios/ Supplemental Data
Net assets, end of period (in 000's) ............................................. $ 8,321 $ 4,227 $ 20,034
Ratios of expenses to average net assets (5) ..................................... 1.67% 1.76%(3) 1.13%
Ratios of net investment income/(loss) to average net assets (5) ................. 1.04% 2.04%(3) 0.49%
Portfolio turnover (6) ........................................................... 19.21% 4.73%(4) 33.44%
* Commencement of operations.
** Less than one cent per share.
+ Based on average shares outstanding throughout the period.
(1) Net asset value per share on March 12, 1996 (commencement of operations).
(2) Total investment return is calculated assuming a purchase of capital stock at
net asset value per share on the first day and a sale at the net asset value
per share on the last day of the period reported. Dividends and distributions,
if any, are assumed, for purposes of this calculation, to be reinvested at the
net asset value per share on the ex-dividend date.
(3) Annualized.
(4) Not Annualized.
(5) Includes voluntary waivers through December 31, 1996. If such waivers had not
been made the ratios of expenses to average net assets and ratios of net
investment income/(loss) to average net assets would have been as follows:
Ratios of expenses to average net assets before waivers ...................... 1.67% 1.77%(3) --
Ratios of net investment income/(loss) to average
net assets before waivers ................................................. 1.04% 2.03%(3) --
(6) Excludes portfolio securities received or delivered as a result of processing
capital share transactions in Creation Unit(s).
<CAPTION>
Sweden
WEBS
Index
Series
------------------------------------------
For the For the For the
year year period
ended ended 03/12/96*-
08/31/98 08/31/97 08/31/96
----------- ----------- -----------
<S> <C> <C> <C>
Per Share Operating Performance
Net asset value, beginning of period ............................................. $ 18.32 $ 14.67 $ 13.22(1)
----------- ----------- -----------
Net investment income/(loss) (+) ................................................. 0.10 (0.03) 0.20
Net realized and unrealized gain/(loss) on investments and foreign currency
related transactions and translation of other assets and liabilities denominated
in foreign currencies .......................................................... 0.95 4.45 1.67
----------- ----------- -----------
Net increase/(decrease) in net assets resulting from operations .............. 1.05 4.42 1.87
----------- ----------- -----------
Less Distributions
Dividends from net investment income ............................................. (0.08) -- (0.23)
Dividends in excess of net investment income ..................................... (0.01) -- (0.07)
Distributions from net realized gains ............................................ (0.86) (0.77) (0.12)
Distributions in excess of net realized gains .................................... (0.01) -- --
Return of capital ................................................................ (0.02) -- --
----------- ----------- -----------
Total dividends and distributions ............................................ (0.98) (0.77) (0.42)
----------- ----------- -----------
Net asset value, end of period ................................................... $ 18.39 $ 18.32 $ 14.67
=========== =========== ===========
Total Investment Return (2) ......................................................... 5.48% 30.10% 14.13%(4)
Ratios/ Supplemental Data
Net assets, end of period (in 000's) ............................................. $ 13,791 $ 8,243 $ 4,400
Ratios of expenses to average net assets (5) ..................................... 1.17% 1.64% 1.75%(3)
Ratios of net investment income/(loss) to average net assets (5) ................. 0.48% (0.19)% 3.05%(3)
Portfolio turnover (6) ........................................................... 10.88% 13.71% 5.87%(4)
* Commencement of operations.
** Less than one cent per share.
+ Based on average shares outstanding throughout the period.
(1) Net asset value per share on March 12, 1996 (commencement of operations).
(2) Total investment return is calculated assuming a purchase of capital stock at
net asset value per share on the first day and a sale at the net asset value
per share on the last day of the period reported. Dividends and distributions,
if any, are assumed, for purposes of this calculation, to be reinvested at the
net asset value per share on the ex-dividend date.
(3) Annualized.
(4) Not Annualized.
(5) Includes voluntary waivers through December 31, 1996. If such waivers had not
been made the ratios of expenses to average net assets and ratios of net
investment income/(loss) to average net assets would have been as follows:
Ratios of expenses to average net assets before waivers ...................... -- 1.64% 1.76%(3)
Ratios of net investment income/(loss) to average
net assets before waivers ................................................. -- (0.19)% 3.04%(3)
(6) Excludes portfolio securities received or delivered as a result of processing
capital share transactions in Creation Unit(s).
</TABLE>
See accompanying notes to financial statements.
60-61
<PAGE>
FINANCIAL HIGHLIGHTS (concluded) WEBS INDEX FUND, INC.
FOREIGN FUND, INC.
===============================================================================
(For a share outstanding throughout the period)
<TABLE>
<CAPTION>
Switzerland
WEBS
Index
Series
------------------------------------------
For the For the For the
year year year
ended ended ended
08/31/99 08/31/98 08/31/97
----------- ----------- -----------
<S> <C> <C> <C>
Per Share Operating Performance
Net asset value, beginning of period ............................................. $ 15.55 $ 13.79 $ 12.29
----------- ----------- -----------
Net investment income/(loss) (+) ................................................. 0.04 (0.00)%** (0.04)
Net realized and unrealized gain/(loss) on investments and foreign currency
related transactions and translation of other assets and liabilities denominated
in foreign currencies .......................................................... 0.19 3.01 2.11
----------- ----------- -----------
Net increase/(decrease) in net assets resulting from operations .............. 0.23 3.01 2.07
----------- ----------- -----------
Less Distributions
Dividends from net investment income ............................................. (0.03) -- --
Dividends in excess of net investment income ..................................... (0.04) (0.01) --
Distributions from net realized gains ............................................ (0.17) (1.21) (0.57)
Distributions in excess of net realized gains .................................... (0.14) -- --
Return of capital ................................................................ (0.01) (0.03) 0.00**
----------- ----------- -----------
Total dividends and distributions ............................................ (0.39) (1.25) (0.57)
----------- ----------- -----------
Net asset value, end of period ................................................... $ 15.39 $ 15.55 $ 13.79
=========== =========== ===========
Total Investment Return (2) ......................................................... 1.47% 21.24% 16.69%
Ratios/ Supplemental Data
Net assets, end of period (in 000's) ............................................. $ 38,499 $ 29,163 $ 13,805
Ratios of expenses to average net assets (5) ..................................... 1.09% 1.15% 1.52%
Ratios of net investment income/(loss) to average net assets (5) ................. 0.24% (0.03)% (0.29)%
Portfolio turnover (6) ........................................................... 35.10% 43.09% 48.05%
* Commencement of operations.
** Less than one cent per share.
+ Based on average shares outstanding throughout the period.
(1) Net asset value per share on March 12, 1996 (commencement of operations).
(2) Total investment return is calculated assuming a purchase of capital stock at
net asset value per share on the first day and a sale at the net asset value
per share on the last day of the period reported. Dividends and distributions,
if any, are assumed, for purposes of this calculation, to be reinvested at the
net asset value per share on the ex-dividend date.
(3) Annualized.
(4) Not Annualized.
(5) Includes voluntary waivers through December 31, 1996. If such waivers had not
been made the ratios of expenses to average net assets and ratios of net
investment income/(loss) to average net assets would have been as follows:
Ratios of expenses to average net assets before waivers ...................... -- -- 1.53%
Ratios of net investment income/(loss) to average
net assets before waivers ................................................. -- -- (0.29)%
(6) Excludes portfolio securities received or delivered as a result of processing
capital share transactions in Creation Unit(s).
<CAPTION>
Switzerland United Kingdom
WEBS WEBS
Index Index
Series Series
----------- ----------------------------
For the For the For the
period year year
03/12/96*- ended ended
08/31/96 08/31/99 08/31/98
----------- ----------- -----------
<S> <C> <C> <C>
Per Share Operating Performance
Net asset value, beginning of period ............................................. $ 12.07(1) $ 18.48 $ 16.50
----------- ----------- -----------
Net investment income/(loss) (+) ................................................. 0.08 0.44 0.37
Net realized and unrealized gain/(loss) on investments and foreign currency
related transactions and translation of other assets and liabilities denominated
in foreign currencies .......................................................... 0.24 2.40 2.12
----------- ----------- -----------
Net increase/(decrease) in net assets resulting from operations .............. 0.32 2.84 2.49
----------- ----------- -----------
Less Distributions
Dividends from net investment income ............................................. (0.10) (0.36) (0.29)
Dividends in excess of net investment income ..................................... -- (0.01) (0.04)
Distributions from net realized gains ............................................ -- (0.60) (0.11)
Distributions in excess of net realized gains .................................... -- (0.02) --
Return of capital ................................................................ -- (0.08) (0.07)
----------- ----------- -----------
Total dividends and distributions ............................................ (0.10) (1.07) (0.51)
----------- ----------- -----------
Net asset value, end of period ................................................... $ 12.29 $ 20.25 $ 18.48
=========== =========== ===========
Total Investment Return (2) ......................................................... 2.60%(4) 15.33% 14.98%
Ratios/ Supplemental Data
Net assets, end of period (in 000's) ............................................. $ 6,158 $ 113,402 $ 62,846
Ratios of expenses to average net assets (5) ..................................... 1.82%(3) 0.97% 1.03%
Ratios of net investment income/(loss) to average net assets (5) ................. 1.39%(3) 2.16% 1.90%
Portfolio turnover (6) ........................................................... 17.06%(4) 13.24% 2.83%
* Commencement of operations.
** Less than one cent per share.
+ Based on average shares outstanding throughout the period.
(1) Net asset value per share on March 12, 1996 (commencement of operations).
(2) Total investment return is calculated assuming a purchase of capital stock at
net asset value per share on the first day and a sale at the net asset value
per share on the last day of the period reported. Dividends and distributions,
if any, are assumed, for purposes of this calculation, to be reinvested at the
net asset value per share on the ex-dividend date.
(3) Annualized.
(4) Not Annualized.
(5) Includes voluntary waivers through December 31, 1996. If such waivers had not
been made the ratios of expenses to average net assets and ratios of net
investment income/(loss) to average net assets would have been as follows:
Ratios of expenses to average net assets before waivers ...................... 1.83%(3) -- --
Ratios of net investment income/(loss) to average
net assets before waivers ................................................. 1.38%(3) -- --
(6) Excludes portfolio securities received or delivered as a result of processing
capital share transactions in Creation Unit(s).
<CAPTION>
United Kingdom
WEBS
Index
Series
---------------------------
For the For the
year period
ended 03/12/96*-
08/31/97 08/31/96
----------- -----------
<S> <C> <C>
Per Share Operating Performance
Net asset value, beginning of period ............................................. $ 13.15 $ 12.14(1)
----------- -----------
Net investment income/(loss) (+) ................................................. 0.38 0.21
Net realized and unrealized gain/(loss) on investments and foreign currency
related transactions and translation of other assets and liabilities denominated
in foreign currencies .......................................................... 3.62 1.06
----------- -----------
Net increase/(decrease) in net assets resulting from operations .............. 4.00 1.27
----------- -----------
Less Distributions
Dividends from net investment income ............................................. (0.32) (0.20)
Dividends in excess of net investment income ..................................... (0.06) (0.03)
Distributions from net realized gains ............................................ (0.17) 0.00**
Distributions in excess of net realized gains .................................... -- --
Return of capital ................................................................ (0.10) (0.03)
----------- -----------
Total dividends and distributions ............................................ (0.65) (0.26)
----------- -----------
Net asset value, end of period ................................................... $ 16.50 $ 13.15
=========== ===========
Total Investment Return (2) ......................................................... 30.48% 10.41%(4)
Ratios/ Supplemental Data
Net assets, end of period (in 000's) ............................................. $ 29,721 $ 15,790
Ratios of expenses to average net assets (5) ..................................... 1.38% 1.61%(3)
Ratios of net investment income/(loss) to average net assets (5) ................. 2.47% 3.62%(3)
Portfolio turnover (6) ........................................................... 1.84% 0.00%(4)
* Commencement of operations.
** Less than one cent per share.
+ Based on average shares outstanding throughout the period.
(1) Net asset value per share on March 12, 1996 (commencement of operations).
(2) Total investment return is calculated assuming a purchase of capital stock at
net asset value per share on the first day and a sale at the net asset value
per share on the last day of the period reported. Dividends and distributions,
if any, are assumed, for purposes of this calculation, to be reinvested at the
net asset value per share on the ex-dividend date.
(3) Annualized.
(4) Not Annualized.
(5) Includes voluntary waivers through December 31, 1996. If such waivers had not
been made the ratios of expenses to average net assets and ratios of net
investment income/(loss) to average net assets would have been as follows:
Ratios of expenses to average net assets before waivers ...................... 1.38% 1.62%(3)
Ratios of net investment income/(loss) to average
net assets before waivers ................................................. 2.47% 3.61%(3)
(6) Excludes portfolio securities received or delivered as a result of processing
capital share transactions in Creation Unit(s).
</TABLE>
See accompanying notes to financial statements.
62-63
<PAGE>
NOTES TO FINANCIAL STATEMENTS WEBS INDEX FUND, INC.
================================================================================
GENERAL
WEBS Index Fund, Inc. (the "Fund") was incorporated under the laws of the
State of Maryland on September 1, 1994, and commenced operations on March 12,
1996. The Fund is registered under the Investment Company Act of 1940, as
amended (the "Act"), as an open end management investment company.
The shares of common stock of each WEBS Index Series are referred to as
"World Equity Benchmark Shares" or "WEBS" and are traded on the American Stock
Exchange, Inc. (the "AMEX") under the following symbols:
WEBS Index Series Symbol
---------------------- --------
Australia WEBS Index Series EWA
Austria WEBS Index Series EWO
Belgium WEBS Index Series EWK
Canada WEBS Index Series EWC
France WEBS Index Series EWQ
Germany WEBS Index Series EWG
Hong Kong WEBS Index Series EWH
Italy WEBS Index Series EWI
Japan WEBS Index Series EWJ
Malaysia (Free) WEBS Index Series EWM
Mexico (Free) WEBS Index Series EWW
Netherlands WEBS Index Series EWN
Singapore (Free) WEBS Index Series EWS
Spain WEBS Index Series EWP
Sweden WEBS Index Series EWD
Switzerland WEBS Index Series EWL
United Kingdom WEBS Index Series EWU
The investment objective of each of the WEBS Index Series is to seek to
provide investment results that correspond generally to the price and yield
performance of publicly traded securities in the aggregate in particular
markets, as represented by a particular foreign equity securities index compiled
by Morgan Stanley Capital International, Inc ("MSCI"). The MSCI Indices utilized
by the Fund reflect the reinvestment of net dividends (except for the MSCI
Mexico (Free) Index utilized by the Mexico (Free) WEBS Index Series, which
reflects the reinvestment of gross dividends).
Each WEBS Index Series of the Fund utilizes a "passive" or indexing
investment approach in an effort to approximate the investment performance of
its benchmark index through the use of quantitative analytical procedures.
The Fund issues and redeems WEBS of each WEBS Index Series only in
aggregations of a specified number of shares (each, a "Creation Unit") at net
asset value. WEBS of the Malaysia (Free) WEBS Index Series are not currently
being offered. Except when aggregated in Creation Units, WEBS are not redeemable
securities of a WEBS Index Series. The non-redeemable WEBS trade on the AMEX
during the day at prices that differ to some degree from their net asset value.
The Depository Trust Company ("DTC") acts as the securities depository for
the WEBS. WEBS are represented by global securities, registered in the name of
DTC or its nominee and deposited with, or on behalf of, DTC.
Each of the Canada WEBS Index Series, the Japan WEBS Index Series and the
United Kingdom WEBS Index Series is classified as a "diversified" investment
company under the Act. Each of the other WEBS Index Series is classified as a
"non-diversified" investment company under the Act.
SIGNIFICANT ACCOUNTING POLICIES
WEBS Index Series' financial statements are prepared in accordance with
generally accepted accounting principles which may require the use of management
estimates and assumptions. Actual results could differ from those estimates.
64
<PAGE>
WEBS INDEX FUND, INC.
================================================================================
Portfolio Valuation
Investments are stated at value. All securities for which market
quotations are readily available are valued at (i) the last sales price prior to
the time of determination, if there was a sale on the date of determination,
(ii) at the mean between the last current bid and asked prices if there was no
sales price on such date and bid and asked quotations are available, or (iii) at
the bid price if there was no sales price on such date and only bid quotations
are available. Securities that are traded over-the-counter are valued at the
last quoted bid price. Securities for which market values are not readily
available are carried at fair value as determined in good faith by Barclays
Global Fund Advisors (the "Adviser") in accordance with procedures adopted by
the Fund's Board of Directors.
Investment Transactions and Investment Income
Investment transactions are accounted for on trade date. The cost of
investments sold is determined by use of the specific identification method for
both financial reporting and income tax purposes. Interest income is recorded on
the accrual basis; dividend income is recorded on the ex-dividend date.
Tax Status
No provision is made for U.S. Federal income or excise taxes as it is each
WEBS Index Series' intention to continue to qualify as a regulated investment
company and to make the requisite distributions to its shareholders which will
be sufficient to relieve it from all or substantially all Federal income and
excise taxes.
If so elected, each WEBS Index Series' realized net foreign exchange
losses and realized net capital losses incurred since October 31, 1998 will be
treated for tax purposes as arising on September 1, 1999. Each WEBS Index Series
incurred and will elect to defer such losses as follows:
Net Realized
Foreign Exchange Capital
WEBS Index Series Losses Losses
--------------------------------- ---------------- ------------
Australia WEBS Index Series $ -- $ 635,689
Austria WEBS Index Series $ 6,761 $ 433,748
Belgium WEBS Index Series $ 29,990 $ --
Canada WEBS Index Series $ -- $ --
France WEBS Index Series $ 17,090 $ --
Germany WEBS Index Series $ 30,583 $ --
Hong Kong WEBS Index Series $ 1,249 $1,929,343
Italy WEBS Index Series $ 8,064 $ --
Japan WEBS Index Series $ -- $ 199,159
Malaysia (Free) WEBS Index Series $ 57,261 $2,976,252
Mexico (Free) WEBS Index Series $ 1,599 $ 92,305
Netherlands WEBS Index Series $ 57,894 $ --
Singapore (Free) WEBS Index Series $ -- $ 523,937
Spain WEBS Index Series $ 29,328 $ --
Sweden WEBS Index Series $ -- $ --
Switzerland WEBS Index Series $ 29,055 $ --
United Kingdom WEBS Index Series $ 63,025 $ --
In addition, each of the following WEBS Index Series has a capital loss
carryover which will expire as follows:
2006 2007
---------- ------------
Australia WEBS Index Series $ -- $ 674,888
Austria WEBS Index Series $ -- $ 4,273
Hong Kong WEBS Index Series $ -- $5,876,138
Japan WEBS Index Series $ 165,085 $ 592,342
Malaysia (Free) WEBS Index Series $ 13,817 $9,010,668
Singapore (Free) WEBS Index Series $ 46,119 $7,619,991
If any WEBS Index Series owns shares in certain foreign investment
entities, referred to, under U.S. tax law principles, as "passive foreign
investment companies", the WEBS Index Series may elect to mark-to-market
annually the shares of the passive foreign investment company, and would be
required to distribute to shareholders any such mark-to-market gains.
65
<PAGE>
NOTES TO FINANCIAL STATEMENTS (continued)
================================================================================
Foreign Currency Translation
The books and records of each WEBS Index Series are maintained in U.S.
dollars. Foreign currency amounts are translated into U.S. dollars on the
following basis:
(i) Market value of investment securities, assets and liabilities
at the prevailing rates of exchange on the valuation date; and
(ii) Purchases and sales of investment securities and investment
income at the relevant rates of exchange prevailing on the
respective dates of such transactions.
Foreign currency and assets and liabilities denominated in foreign
currency are generally converted into U.S. dollars using the same exchange rates
utilized by MSCI in the calculation of the relevant MSCI Indices (currently,
exchange rates as of 4:00 p.m. London time, except that the exchange rate for
the MSCI Mexico (Free) WEBS Index is that as of 3:00 p.m. New York City time).
However, the Fund may use a different exchange rate from the rate used by MSCI
in the event that the Adviser concludes that such rate is more appropriate.
Effective January 1, 1999, the Austria, Belgium, France, Germany, Italy,
Netherlands, and Spain WEBS Index Series are converted into U.S. Dollars using
the Euro exchange rate.
The WEBS Index Series generally do not isolate the effect of fluctuations
in foreign exchange rates from the effect of fluctuations in the market prices
of securities. The WEBS Index Series report certain foreign exchange realized
gains and losses on foreign currency related transactions as components of
realized gains and losses for financial reporting purposes, whereas such
components are treated as ordinary income for Federal income tax purposes.
Foreign security and currency transactions may involve certain
considerations and risks not typically associated with those of domestic origin
as a result of, among other factors, the level of governmental supervision and
regulation of foreign securities markets and the possibility of political or
economic instability, and the fact that foreign securities markets may be
smaller, less developed and have less reliable settlement and share registration
procedures.
Distribution of Income and Gains
Each WEBS Index Series intends to distribute, at least annually, to
shareholders, substantially all of its net investment income, including net
foreign currency gains, if any, and any realized net capital gains after the
utilization of available capital loss carryovers. An additional distribution may
be made to the extent necessary to avoid payment of a 4% Federal excise tax.
In addition, each WEBS Index Series intends to distribute at least
annually amounts representing the dividend yield on the underlying portfolio
securities of each WEBS Index Series, net of expenses, as if such WEBS Index
Series owned such underlying portfolio securities for the entire dividend
period. As a result, some portion of each distribution may result in a return of
capital. Dividends and distributions are paid in U.S. dollars and cannot be
automatically reinvested in additional WEBS.
Distributions to shareholders are recorded on the ex-dividend date. The
amount of dividends and distributions from net investment income and net
realized gains are determined in accordance with U.S. tax law principles, which
may differ from generally accepted accounting principles. These book/tax
differences are either considered temporary or permanent in nature. To the
extent these differences are permanent in nature, such amounts are reclassified
within each WEBS Index Series' capital accounts based on their Federal tax
treatment. Dividends and distributions which exceed net investment income and
realized net capital gains for financial reporting purposes but not for tax
purposes are reported as distributions in excess of net investment income and
realized net capital gains. To the extent they exceed net investment income and
net realized gains for tax purposes, they are reported as return of capital
distributions.
For the year ended August 31, 1999, each Index Series reclassified certain
amounts from accumulated net realized gain (loss) on investments and foreign
currency transactions and accumulated net investment income (loss),
respectively, as a result of permanent book and tax differences primarily
attributed to net investment loss, return of capital, passive foreign investment
companies, realized foreign currency gains and losses and gains and losses on
in-kind redemptions.
Organization Costs
Organization costs were originally allocated to each WEBS Index Series
based on the expected future net assets of each WEBS Index Series. Such
organization costs have been deferred and are amortized ratably on the reverse
sum of the years digits method over a period of sixty months from the
commencement of operations.
If any of the shares initially issued to the Distributor are redeemed
before the end of the amortization period, the proceeds of the redemption will
be reduced by their pro rata share of the unamortized organization costs. The
pro rata share by which the proceeds are reduced is derived by dividing the
number of original shares redeemed by the total number of original shares
outstanding at the time of redemption.
66
<PAGE>
WEBS INDEX FUND, INC.
================================================================================
FEE ARRANGEMENTS
The Fund has an Investment Management Agreement (the "Management
Agreement") with the Adviser. The Adviser manages the investments of each of the
WEBS Index Series. For its services to each WEBS Index Series, the Adviser
receives fees based on the Fund's aggregate average daily net assets equal to
.27% per annum up to aggregate net assets of $1.7 billion; plus .15% per annum
of the aggregate net assets between $1.7 billion and $7 billion; plus .12% per
annum of the aggregate net assets between $7 billion and $10 billion; plus .08%
per annum of the aggregate net assets in excess of $10 billion.
The Fund has an Administration and Accounting Services Agreement with PFPC
Worldwide Inc. (formerly PFPC Inc.) ("PFPC" or the "Administrator"). Under the
Administration and Accounting Services Agreement, PFPC assists in supervising
the operations of each WEBS Index Series.
For its services to the WEBS Index Series, the Administrator receives an
aggregate fee equal to each WEBS Index Series' allocable portion of: .22% per
annum of the aggregate average daily net assets of the Fund up to $1.5 billion;
plus .15% per annum of the aggregate average daily net assets of the Fund
between $1.5 billon and $3 billion, plus .14% per annum of the aggregate average
daily net assets of the Fund between $3 billion and $5 billion, plus .13% per
annum of the aggregate average daily net assets of the Fund between $5 billon
and $7.5 billion, plus .115% per annum of the aggregate average daily net assets
of the Fund between $7.5 billion and $10 billion, plus .10% per annum of the
aggregate average daily net assets of the Fund in excess of $10 billion. PFPC
has a Sub-Administration Agreement with Morgan Stanley & Co, Incorporated
("MS&Co."). The Administrator pays MS&Co. a fee of .05% of the average daily net
assets of the Fund for its sub-administration services.
PFPC, Inc., (formerly PNCBank, N.A.) an affiliate of the Administrator,
serves as each WEBS Index Series' Transfer Agent and Dividend Disbursement
Agent.
The Fund has a Licensing Agreement with MSCI for the use of the relevant
MSCI Indices. Each WEBS Index Series pays a license fee equal to .03% per annum
of the average daily net assets of each of such WEBS Index Series.
The Fund has adopted a Distribution Plan pursuant to Rule 12b-1 under the
Act ("Rule 12b-1 Plan") with respect to each WEBS Index Series. Under the Rule
12b-1 Plan, Funds Distributor, Inc. ("Distributor") is paid an annual fee of up
to .25% of the average daily net assets of each WEBS Index Series as
compensation in connection with the offering and sale of shares of each WEBS
Index Series. The fee paid to the Distributor under the Rule 12b-1 Plan is
accrued daily and paid monthly with respect to each WEBS Index Series. For its
services to the WEBS Index Series, the Distributor currently receives a fee
under the Rule 12b-1 Plan of .20% of the average daily net assets of each WEBS
Index Series. From time to time the Distributor may waive all or a portion of
the fee.
The Chase Manhattan Bank (Chase) serves as global custodian as well as the
Securities Lending Agent to each of the WEBS Index Series. Prior to February 1,
1999, for its custody services to each WEBS Index Series, Chase was paid per
annum fees based on the aggregate net assets of the WEBS Index Series as
follows: Australia WEBS Index Series (.09%); Austria WEBS Index Series (.09%);
Belgium WEBS Index Series (.09%); Canada WEBS Index Series (.065%); France WEBS
Index Series (.09%); Germany WEBS Index Series (.09%); Hong Kong WEBS Index
Series (.11%); Italy WEBS Index Series (.08%); Japan WEBS Index Series (.055%);
Malaysia (Free) WEBS Index Series (.11%); Mexico (Free) WEBS Index Series
(.23%); Netherlands WEBS Index Series (.09%); Singapore (Free) WEBS Index Series
(.09%); Spain WEBS Index Series (.09%); Sweden WEBS Index Series (.09%);
Switzerland WEBS Index Series (.09%); and United Kingdom WEBS Index Series
(.065%).
Effective February 1, 1999, the fees payable under the Custody Agreement
were revised. For its custody services to each WEBS Index Series, Chase is now
paid per annum fees based on the aggregate net assets of the WEBS Index Series
as follows: Australia WEBS Index Series (.07%); Austria WEBS Index Series
(.09%); Belgium WEBS Index Series (.09%); Canada WEBS Index Series (.05%);
France WEBS Index Series (.09%); Germany WEBS Index Series (.08%); Hong Kong
WEBS Index Series (.10%); Italy WEBS Index Series (.08%); Japan WEBS Index
Series (.055%); Malaysia (Free) WEBS Index Series (.10%); Mexico (Free) WEBS
Index Series (.15%); Netherlands WEBS Index Series (.09%); Singapore WEBS Index
Series (.09%); Spain WEBS Index Series (.09%); Sweden WEBS Index Series (.09%);
Switzerland WEBS Index Series (.09%); and United Kingdom WEBS Index Series
(.05%);
Chase also receives certain fees for each transaction of the WEBS Index
Series and is reimbursed for certain out-of-pocket expenses.
The Fund pays each director who is not a director, officer or employee of
the Adviser, Administrator, Distributor or any affiliate thereof, an annual fee
of $20,000 plus $5,000 for each Board of Directors meeting attended. The
Chairman of the Board receives an annual fee of $30,000 plus $7,500 for each
Board of Directors meeting attended. In addition, the Fund reimburses the
directors for travel and out-of-pocket expenses incurred in connection with
their attendance at the Board of Directors meetings.
67
<PAGE>
NOTES TO FINANCIAL STATEMENTS (continued)
================================================================================
FOREIGN CURRENCY
At August 31, 1999, each WEBS Index Series' cash balance included the
following amount of foreign currency:
Cost Value
----------- -----------
Australia WEBS Index Series $ 27,348 $ 27,443
Austria WEBS Index Series $ 21,680 $ 21,680
Belgium WEBS Index Series $2,067,643 $2,090,401
Canada WEBS Index Series $ 314,661 $ 314,345
France WEBS Index Series $ 773,789 $ 790,114
Germany WEBS Index Series $2,065,302 $2,092,244
Hong Kong WEBS Index Series $1,364,756 $1,364,628
Italy WEBS Index Series $4,355,560 $4,403,499
Japan WEBS Index Series $ 3 $ 3
Malaysia (Free) WEBS Index Series $1,151,049 $1,209,422
Mexico (Free) WEBS Index Series $ 193,950 $ 194,468
Netherlands WEBS Index Series $1,907,451 $1,926,975
Singapore (Free) WEBS Index Series $ 44,605 $ 44,739
Spain WEBS Index Series $ 302 $ 309
Sweden WEBS Index Series $ 7,612 $ 7,710
Switzerland WEBS Index Series $ 14,749 $ 15,304
United Kingdom WEBS Index Series $ 21,164 $ 21,237
STOCK LOAN
Each WEBS Index Series may lend securities from its portfolio to brokers,
dealers and other financial institutions. Because the collateral pledged to each
WEBS Index Series in connection with these loans generates income, securities
lending enables a WEBS Index Series to earn income that may partially offset the
expenses of the WEBS Index Series. Each WEBS Index Series receives collateral
equal to at least 100% of the current market value of the loaned securities. The
WEBS Index Series receive cash collateral and may invest such collateral in
short-term investments, and bear the risk of loss of the invested collateral. In
addition, a WEBS Index Series is exposed to the risk of loss should a borrower
default on its obligation to return the borrowed securities. Prior to February
1, 1999, for its services as the securities lending agent, the Fund paid Chase,
in respect of each WEBS Index Series, 50% of the net investment income earned on
the collateral for securities loaned. Effective February 1, 1999, the securities
lending fee paid to Chase was reduced to 40% of such net investment income.
The market values of securities on loan to broker/dealers at August 31,
1999, and the cash collateral received with respect to such loans were as
follows:
Cash Marked Value
Collateral of Loaned
WEBS Index Series Received Securities
--------------------------------- ----------- ------------
Australia WEBS Index Series $ 2,500,470 $ 2,313,796
Austria WEBS Index Series $ -- $ --
Belgium WEBS Index Series $ 420,951 $ 407,994
Canada WEBS Index Series $ -- $ --
France WEBS Index Series $ 1,000,000 $ 955,952
Germany WEBS Index Series $ 4,187,400 $ 3,950,431
Hong Kong WEBS Index Series $ 2,805,236 $ 2,637,784
Italy WEBS Index Series $12,695,909 $11,554,406
Japan WEBS Index Series $75,265,450 $66,079,331
Malaysia (Free) WEBS Index Series $ -- $ --
Mexico (Free) WEBS Index Series $ 977,400 $ 925,464
Netherlands WEBS Index Series $11,374,090 $10,575,973
Singapore (Free) WEBS Index Series $35,437,500 $31,639,463
Spain WEBS Index Series $ 2,068,750 $ 1,941,578
Sweden WEBS Index Series $ 672,300 $ 613,189
Switzerland WEBS Index Series $ 1,012,044 $ 949,925
United Kingdom WEBS Index Series $ -- $ --
68
<PAGE>
WEBS INDEX FUND, INC.
================================================================================
CAPITAL SHARES
The Fund currently is authorized to issue 6 billion shares of capital
stock, with the following number of shares allocated to each WEBS Index Series:
Australia WEBS Index Series (127.8 million shares); Austria WEBS Index Series
(19.8 million shares); Belgium WEBS Index Series (136.2 million shares); Canada
WEBS Index Series (340.2 million shares); France WEBS Index Series (340.2
million shares); Germany WEBS Index Series (382.2 million shares); Hong Kong
WEBS Index Series (191.4 million shares); Italy WEBS Index Series (63.6 million
shares); Japan WEBS Index Series (2,124.6 million shares); Malaysia (Free) WEBS
Index Series (127.8 million shares); Mexico (Free) WEBS Index Series (255
million shares); Netherlands WEBS Index Series (255 million shares); Singapore
(Free) WEBS Index Series (191.4 million shares); Spain WEBS Index Series (127.8
million shares); Sweden WEBS Index Series (63.6 million shares); Switzerland
WEBS Index Series (318.625 million shares); and United Kingdom WEBS Index Series
(943.2 million shares). The shares will not be issued or redeemed individually,
but only in specified aggregations of shares.
The consideration for purchase of a Creation Unit of a WEBS Index Series
is generally the in-kind deposit of a designated portfolio of equity securities
constituting an optimized representation of the corresponding MSCI Index (the
"Basket Securities") and an amount of cash (the "Cash Component"). Non-Basket
Securities may be held by a WEBS Index Series as a result of corporate actions,
odd share lots, or as a result of rebalancing of the Basket Securities.
Shares of each WEBS Index Series are offered in Creation Units at net
asset value without an initial sales load, in exchange for an in-kind deposit of
a designated portfolio of securities specified by the Distributor each day, plus
a specified amount of cash and a purchase transaction fee. Shares of each WEBS
Index Series may also be issued in the specified aggregations for cash at the
sole discretion of the Fund. Shares of the Malaysia (Free) WEBS Index Series are
not currently being offered. Redemptions of the shares of each WEBS Index Series
in the specified aggregations are made in portfolio securities, plus or minus a
specified amount of cash, and minus a specified redemption transaction fee
(except that redemptions of Creation Units of the Malaysia (Free) WEBS Index
Series are paid only in Malaysian Ringgits to shareholders that have established
an appropriate account with a duly licensed Malaysian financial institution and
acknowledged certain risks and restrictions,) and except that residents of New
Zealand are paid redemption proceeds in cash only. Shares of each WEBS Index
Series may also be redeemed in the specified aggregations for cash by other
persons at the sole discretion of the Fund.
LOAN AGREEMENT
At August 31, 1999 the Fund had entered into a Term Loan Agreement with
PNC Bank, N.A., an affiliate of the Administrator. Under the terms of the Loan,
any of the WEBS Index Series could request an advance of the full amount of the
$25,000,000 term loan; provided, however, that:
(i) Total outstanding loans to all WEBS Index Series under the
Term Loan may not exceed $25,000,000 and
(ii) The aggregate amount outstanding under the Term Loan to any
one WEBS Index Series may not exceed the lowest of (a)
$25,000,000, (b) one-quarter of that WEBS Index Series' net
assets, (c) any lower leverage limit set forth in the Fund's
prospectus or (d) the maximum amount permitted to be borrowed
by such WEBS Index Series under the Act. Each WEBS Index
Series shall be severally, and not jointly, liable for its
particular loan. Advances made under the Term Loan were due
and payable on September 30, 1999 and bore interest at a rate
per annum equal to the sum of the Federal Funds Rate plus 1%.
The interest rate at August 31, 1999 was 6.38%.
<TABLE>
<CAPTION>
Average Advances Average Number of Days
Outstanding Interest Advances Outstanding
WEBS Index Series During the Year Rate During the Year
--------------------------------- --------------- -------- --------------------
<S> <C> <C> <C>
Australia Webs Index Series $ 985,000 6.38% 1
Austria Webs Index Series $ 282,000 6.53% 26
Belgium Webs Index Series $3,929,346 6.53% 26
Canada Webs Index Series $ 394,267 6.52% 30
France Webs Index Series $ 315,000 6.52% 30
Germany Webs Index Series $ 697,097 6.53% 31
Hong Kong Webs Index Series $1,495,806 6.53% 31
Italy Webs Index Series $4,580,032 6.53% 31
Japan WEBS Index Series $ 458,000 6.38% 1
Mexico (Free) Webs Index Series $ 295,846 6.53% 26
Netherlands Webs Index Series $1,370,385 6.53% 26
Singapore (Free) WEBS Index Series $ 56,000 6.38% 1
Spain Webs Index Series $ 681,385 6.53% 26
Sweden Webs Index Series $ 565,500 6.53% 26
Switzerland Webs Index Series $1,066,239 6.47% 46
United Kingdom Webs Index Series $ 862,261 6.47% 46
</TABLE>
69
<PAGE>
NOTES TO FINANCIAL STATEMENTS (continued)
================================================================================
PORTFOLIO ACTIVITY
The WEBS Index Series' purchases and sales of securities (excluding
in-kind transactions), other than short-term obligations, were as follows, for
the year ended August 31, 1999:
Purchases of Sales of
WEBS Index Series Securities Securities
---------------------------------- ------------ -----------
Australia WEBS Index Series $ 7,923,278 $ 6,770,590
Austria WEBS Index Series $ 4,937,960 $ 5,133,230
Belgium WEBS Index Series $10,717,990 $16,864,452
Canada WEBS Index Series $ 1,364,951 $ 2,101,164
France WEBS Index Series $ -- $ 801,501
Germany WEBS Index Series $11,081,164 $14,340,577
Hong Kong WEBS Index Series $30,698,138 $31,101,811
Italy WEBS Index Series $ 5,409,132 $16,145,095
Japan WEBS Index Series $ -- $ 646,362
Malaysia (Free) WEBS Index Series $ 4,412,501 $10,827,621
Mexico (Free) WEBS Index Series $ 2,605,336 $ 2,985,278
Netherlands WEBS Index Series $ 8,057,066 $11,174,213
Singapore (Free) WEBS Index Series $23,766,185 $23,902,836
Spain WEBS Index Series $ 5,606,266 $ 6,706,318
Sweden WEBS Index Series $ 5,358,284 $ 5,891,428
Switzerland WEBS Index Series $12,048,390 $13,333,533
United Kingdom WEBS Index Series $12,880,456 $11,908,201
FOREIGN INCOME TAXES
For the year ended August 31, 1999, each WEBS Index Series' net foreign
withholding taxes deducted from foreign dividends received were as follows:
Foreign
Withholding
WEBS Index Series Tax
--------------------------------- -----------
Australia Webs Index Series $ 33,550
Austria Webs Index Series $ 40,220
Belgium Webs Index Series $ 47,625
Canada Webs Index Series $ 37,112
France Webs Index Series $106,956
Germany Webs Index Series $126,554
Hong Kong Webs Index Series $ --
Italy Webs Index Series $179,078
Japan Webs Index Series $429,976
Malaysia (Free) Webs Index Series $ --
Mexico (Free) Webs Index Series $ 11,213
Netherlands Webs Index Series $141,059
Singapore (Free) Webs Index Series $ --
Spain Webs Index Series $ 79,663
Sweden Webs Index Series $ 45,392
Switzerland Webs Index Series $ 79,043
United Kingdom Webs Index Series $337,554
70
<PAGE>
WEBS INDEX FUND, INC.
================================================================================
MARKET AND PORTFOLIO RISKS
An investment in the WEBS of a WEBS Index Series involves risks similar to
those of investing in a broadly-based portfolio of equity securities traded on
exchanges in the relevant foreign securities market, such as market fluctuations
caused by such factors as economic and political developments, changes in
interest rates and perceived trends in stock prices. Investing in WEBS generally
involves certain risks and considerations not typically associated with
investing in a fund that invests in the securities of U.S. issuers. These risks
could include less liquid and less efficient securities markets; greater price
volatility; exchange rate fluctuations and exchange controls; less publicly
available information about issuers; the imposition of withholding or other
taxes; restrictions on the expatriation of funds or other assets of a WEBS Index
Series; higher transaction and custody costs; delays in settlement; difficulties
in enforcing contractual obligations; less liquidity and smaller market
capitalization of most non-U.S. securities markets; lower levels of regulation
of the securities markets; different accounting, disclosure and reporting
requirements; more substantial government involvement in the economy; higher
rates of inflation; greater social, economic, and political uncertainty and the
risk of nationalization or expropriation of assets and risk of war.
With respect to the two most heavily weighted industries or groups of
industries in the benchmark index of the WEBS Index Series, the WEBS Index
Series will invest in portfolio securities (consistent with its investment
objective and other investment policies) such that the weighting of each such
industry or group of industries in the WEBS Index Series does not diverge by
more than 10 percentage points from the respective weightings of such industry
or group of industries in the benchmark index. An exception to the general
policy stated in the previous sentence is that if investment in the stock of a
single issuer would account for more than 25% of the WEBS Index Series, the WEBS
Index Series will invest less than 25% of its net assets in such stock and will
reallocate the excess to stock(s) in the same industry or group of industries,
and/or to stock(s) in another industry or group of industries, in the benchmark
index.
The stocks of particular issuers, or of issuers in particular industries,
may dominate the benchmark indices of certain WEBS Index Series and,
consequently, the investment portfolios of such WEBS Index Series may adversely
affect the performance of such WEBS Index Series or subject such WEBS Index
Series to greater price volatility than that experienced by more diversified
investment companies.
MALAYSIAN REPATRIATION RESTRICTIONS
Bank Negara Malaysia, the central bank of Malaysia, announced measures on
September 1, 1998 that significantly restricted the rights of non-residents
(such as the Fund) with respect to transactions in Malaysian securities. The
"Measures to Regain Monetary Independence" were intended to insulate Malaysia
from the problems confronting the international financial markets and the then
escalation of regional contagion effects. The measures affected a number of
areas in addition to trading in securities, including dealings in foreign
currency, general payments, exports of goods, credit facilities and investments
abroad.
Certain restrictions imposed by the capital controls at September 1, 1998
were as follows;
o Ringgit-denominated securities had to be deposited with authorized
depositories and any transactions in ringgit-denominated securities
held by non-residents had to be transacted through an authorized
depository for good delivery;
o All payments by non-residents for any security registered in
Malaysia had to be made (a) in a foreign currency or (b) in ringgit
from an "external account";
o All proceeds in ringgit received by a non-resident from the sale of
any security registered in Malaysia had to be retained in an
external account, unless the security was held for more than one
year (in which case proceeds from the sale of the security either
could be immediately converted to a foreign currency or credited to
the external account); and
o The use of funds in an external account was limited to the purchase
of ringgit assets in Malaysia.
On September 3, 1998, the Malaysian (Free) WEBS Index Series ("Malaysia
Series") announced that it was unable to exchange Creation Units of WEBS
principally on an in-kind basis. In such circumstances, the Fund temporarily
suspended new creations of Creation Units of WEBS of its Malaysia Series.
Effective February 4, 1999, the Malaysian Central Bank announced a system
of graduated exit levies and profit taxes that replaced the prior repatriation
restrictions. In general, capital invested in Malaysia prior to February 15,
1999 had to be repatriated subject to a graduated levy based on the duration of
the investment:
-- Capital repatriated by March 31, 1999 -- 30% Levy
-- Capital repatriated by May 30, 1999 -- 20% Levy
-- Capital repatriated by August 31, 1999 -- 10% Levy
-- Capital repatriated subsequent to August 31, 1999 -- 0% Levy
71
<PAGE>
NOTES TO FINANCIAL STATEMENTS (continued)
================================================================================
Profits on capital invested prior to February 15, 1999 could be
repatriated without the payment of any levy, but were subject to a 10% levy if
they were repatriated from investments made after twelve months after the
principal entered Malaysia. Capital invested in Malaysia on or subsequent to
February 15, 1999 would not be subject to levies upon repatriation of capital.
However capital invested in Malaysia after February 15, 1999 would be subject to
a 30% levy on profit repatriated within twelve months from the date it was
earned. Profit repatriated after twelve months would be subject to a 10% levy.
Effective February 17, 1999, the Malaysia Series announced that it is able
to honor requests for the redemption of Creation Units through the delivery of
Malaysian Ringgits only. The Malaysia Series is now permitted to transfer
Malaysian ringgits representing redemption proceeds from its account to a
redeeming investor's account maintained at a duly licensed Malaysian financial
institution. Investors that redeem Creation Units of the Malaysia Series at
different times may be subject to significantly different economic consequences,
depending on how the Malaysian exit levies and profit taxes are applied,
including the extent to which, if any, the Malaysian authorities trace the
sources of ringgits paid to redeeming investors by the Malaysian Series. The
redeeming holder of Creation Units of the Malaysian Series must open a ringgit
denominated account in Malaysia in its own name to accept ringgit proceeds. The
Fund also announced that, for the time being, it is continuing the suspension of
sales of Creation Units of the Malaysia Series. The continued suspension of
creations, and the limitations under Malaysian law on effecting in-kind
redemptions and on repatriating redemption proceeds in ringgits, are likely to
cause the Malaysia Series to continue to trade at larger discounts or premiums
to net asset value than they were prior to September 1, 1998, and such discounts
or premiums may be material.
The "official" exchange rate of 3.8 ringgits per U.S. dollar was fixed by
Malaysian regulatory authorities on September 2, 1998 in connection with the
capital controls imposed by the Malaysian government. The Malaysia (Free) WEBS
Index Series converted ringgits to U.S.dollars in computing its net asset value
as follows: September 2 through September 4, 1998, 3.8; September 8 to October
1, 1998, 4.0; October 1 to October 7 at 4.47 and October 7 to March 31, 1999 at
5.07. Effective April 1, 1999 the Index Series used a foreign exchange rate of
3.8 ringgits per U.S. dollar in computing its net asset value per share. These
rates were determined in good faith in accordance with the Fund's policies for
the valuation of foreign currency. The Malaysia (Free) WEBS Index Series may use
different exchange rates for computing its net asset value in the future.
SUBSEQUENT EVENTS
On September 21, 1999 Bank Negara Malaysia announced that the levy imposed
on transactions on investments in Malaysian securities on or before February 14,
1999 had been removed. Repatriations of monies invested on or after February 15,
1999 will be subject to a standard levy of 10% of the amount attributable to
profit.
72
<PAGE>
WEBS INDEX FUND, INC.
================================================================================
FEDERAL TAXATION NOTICE (Unaudited)
The WEBS Index Series paid the following foreign taxes during the year
ended August 31, 1999 which they intend to pass through to their shareholders
pursuant to Section 853 of the Internal Revenue Code. In addition, each of the
WEBS Index Series earned the following foreign source income and is designating
the following distributions as long-term capital gain distributions:
<TABLE>
<CAPTION>
Long-Term
Foreign Source Capital Gains
WEBS Index Series Income Foreign Taxes Distributions
-------------------------------- -------------- ------------- -------------
<S> <C> <C> <C>
Australia Webs Index Series $1,602,795 $ 33,550 $ --
Austria Webs Index Series $ 269,378 $ 40,220 $ --
Belgium Webs Index Series $ 228,548 $ 47,625 $ 750,493
Canada Webs Index Series $ 248,862 $ 37,112 $ 332,151
France Webs Index Series $1,010,669 $ 106,956 $ 93,974
Germany Webs Index Series $1,347,557 $ 126,554 $1,844,366
Hong Kong Webs Index Series $3,171,308 $ -- $ --
Italy Webs Index Series $ 679,685 $ 179,078 $5,834,287
Japan Webs Index Series $6,095,378 $ 429,976 $ --
Malaysia (Free) Webs Index Series $1,032,810 $ -- $ --
Mexico (Free) Webs Index Series $ 260,206 $ 11,213 $ 8,020
Netherlands Webs Index Series $ 949,940 $ 141,059 $1,850,031
Singapore (Free) Webs Index Series $1,119,413 $ -- $ --
Spain Webs Index Series $ 532,732 $ 79,663 $1,682,127
Sweden Webs Index Series $ 296,498 $ 45,392 $ 560,823
Switzerland Webs Index Series $ 527,379 $ 79,043 $ 776,120
United Kingdom Webs Index Series $3,150,028 $ 337,554 $3,194,882
</TABLE>
Shareholders will receive more detailed information along with Form
1099-DIV in January 2000.
73
<PAGE>
REPORT OF INDEPENDENT AUDITORS
================================================================================
Shareholders and Board of Directors
WEBS Index Fund, Inc.
We have audited the accompanying statements of assets and liabilities,
including the portfolios of investments, of WEBS Index Fund, Inc. (comprised of
the Australia WEBS Index Series, the Austria WEBS Index Series, the Belgium WEBS
Index Series, the Canada WEBS Index Series, the France WEBS Index Series, the
Germany WEBS Index Series, the Hong Kong WEBS Index Series, the Italy WEBS Index
Series, the Japan WEBS Index Series, the Malaysia (Free) WEBS Index Series, the
Mexico (Free) WEBS Index Series, the Netherlands WEBS Index Series, the
Singapore (Free) WEBS Index Series, the Spain WEBS Index Series, the Sweden WEBS
Index Series, the Switzerland WEBS Index Series, and the United Kingdom WEBS
Index Series) (collectively, the "Fund") as of August 31, 1999, and the related
statements of operations for the year then ended, the statement of changes in
net assets for each of the two years in the period then ended, and financial
highlights for each of the years indicated therein. These financial statements
and financial highlights are the responsibility of the Fund's management. Our
responsibility is to express an opinion on these financial statements and
financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned as of
August 31, 1999 by correspondence with the custodian. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred
to above present fairly, in all material respects, the financial position of
each of the respective Series comprising WEBS Index Fund, Inc. at August 31,
1999, and the results of their operations for the year then ended, the changes
in their net assets for each of the two years in the period then ended, and the
financial highlights for each of the indicated years, in conformity with
generally accepted accounting principles.
/s/ Ernst & Young LLP
New York, New York
October 15, 1999
74
<PAGE>
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<PAGE>
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<PAGE>
P.O Box 8500, Boston, MA 02266-8500
800-222-8977
CREDIT SUISSE ASSET MANAGEMENT SECURITIES, INC., DISTRIBUTOR
<PAGE>
[GRAPHIC OMITTED]
WEBS INDEX FUND, INC.
INVESTMENT ADVISER
BARCLAYS GLOBAL FUND ADVISORS
ADMINISTRATOR
PFPC WORLDWIDE INC.
DISTRIBUTOR
FUNDS DISTRIBUTOR INC.
TRANSFER AGENT
PFPC INC.
CUSTODIAN AND SECURITIES LENDING AGENT
THE CHASE MANHATTAN BANK
400 BELLEVUE PARKWAY
WILMINGTON, DE 19809
