SUPPLEMENT DATED NOVEMBER 1, 2000
TO
iSHARES, INC.
PROSPECTUS
DATED DECEMBER 30, 1999
(AS REVISED SEPTEMBER 15, 2000)
The information in this Supplement updates the information in, and should
be read in conjunction with, the Prospectus of iShares, Inc. dated December
30, 1999 (as revised September15, 2000).
o On page 1 under "Investment Objective", the second sentence is replaced
by the following:
"The performance of these markets is measured by stock indices
compiled by Morgan Stanley Capital International Inc. ("MSCI") and
calculated for "Developed Markets" (as determined by MSCI) based on
the reinvestment of net dividends and for "Emerging Markets" (as
determined by MSCI) based on the reinvestment of gross dividends.
Currently, MSCI has determined that the following countries are
Emerging Markets: Brazil, Malaysia, Mexico, South Africa, South
Korea and Taiwan."
o On page 33 under "The following factors may adversely affect tracking of an
Index Fund to that of its benchmark MSCI Index", the following is inserted
before the penultimate bullet point:
"o the indices for countries that MSCI identifies as "Emerging
Markets" are calculated based on the reinvestment of gross
dividends (that is, dividends before reduction for taxes
withheld at source), whereas the securities held by the Index
Funds for Emerging Markets countries may be subject to
withholding taxes;"
SUPPLEMENT DATED NOVEMBER 1, 2000
TO
iSHARES, INC.
STATEMENT OF ADDITIONAL INFORMATION
DATED DECEMBER 30, 1999 (AS REVISED MAY 22, 2000)
The information in this Supplement updates the information in, and should
be read in conjunction with, the Statement of Additional Information of
iShares, Inc., dated December 30, 1999 (as revised May 22, 2000).
O ON PAGE 36 UNDER "CALCULATION METHODOLOGY", THE FIFTH SENTENCE IS REPLACED
BY THE FOLLOWING:
"Except for the iShares MSCI Brazil (Free), Malaysia (Free), Mexico
(Free), South Africa, South Korea and Taiwan Index Funds, where the
corresponding MSCI Index of each is calculated with gross dividends
reinvested, the Company's Index Funds utilize MSCI Indices calculated
with net dividends reinvested."
o IN THE FIFTH PARAGRAPH ON PAGE 38, THE SECOND SENTENCE IS REPLACED BY THE
FOLLOWING:
"Except for the iShares MSCI Brazil (Free), Malaysia (Free), Mexico
(Free), South Africa, South Korea and Taiwan Index Funds, where the
corresponding MSCI Index of each is calculated with gross dividends
reinvested, the Company's Index Funds utilize MSCI Indices calculated
with net dividends reinvested."
CHANGE IN CREATION UNIT SIZE AND CLASSIFICATION OF THE ISHARES MSCI EMU INDEX
FUND
A Creation Unit of the iShares MSCI EMU Index Fund consists of 50,000
iShares, with a par value per Creation Unit of $385,926. The Fund commenced
operations on July 28, 2000, and trades on the American Stock Exchange, under
the ticker symbol "EZU".
The initial shareholder of the iShares MSCI EMU Index Fund approved a proposal
on July 27, 2000 to change that fund from "diversified" to "non-diversified".
Such change became effective immediately. As a consequence, the iShares EMU
Index Fund is now subject to the non-diversification risks described under
"Investment Strategies and Risks".
CHANGE FROM DIVERSIFIED TO NON-DIVERSIFIED STATUS OF THE ISHARES MSCI CANADA
INDEX FUND
The shareholders of the MSCI Canada Index Fund approved a proposal on June
27, 2000 to change that fund from "diversified" to "non-diversified". Such
change became effective immediately. As a consequence, the iShares of the MSCI
Canada Index Fund are now subject to the non-diversification risks described
under "Investment Strategies and Risks".
COMMENCEMENT OF SALES TO THE PUBLIC OF THE ISHARES MSCI SOUTH AFRICA AND USA
INDEX FUNDS
Dates for the commencement of sales to the public of the iShares MSCI
South Africa and USA Index Funds have yet to be determined.
