WORLD
EQUITY
BENCHMARK
SHARES
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WEBS
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FEBRUARY 29,
2 0 0 0
SEMI-ANNUAL Report
WEBS INDEX FUND, INC.
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WEBS INDEX FUND, INC.
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Dear Shareholder:
We are pleased to present the semi-annual report for WEBS Index Fund, Inc.
(the "Fund") covering the six-month period from September 1, 1999 through
February 29, 2000. The semi-annual report contains important information about
the performance of your investment, a manager's discussion and analysis for each
WEBS Index Series from the Fund's Investment Adviser, Barclays Global Fund
Advisors, as well as important financial information.
Each WEBS Index Series seeks to provide broad-based exposure to a
particular country's stock market by tracking the performance of a Morgan
Stanley Capital International ("MSCI") Index. The Investment Adviser's
discussion contains information about performance and tracking for each of the
WEBS Index Series.
GROWTH ACTIVITY
With your help, the WEBS Index Fund has continued to grow as an efficient
way to invest in selected foreign equity markets. As of February 29, 2000, net
assets of the seventeen WEBS Index Series have grown to $1.907 billion,
representing a 20% growth since August 31, 1999 and an 84% increase from net
assets of $1.038 billion at February 28, 1999.
Because the value of total net assets fluctuates with the performance of
the respective foreign equity markets, we believe that the number of shares
outstanding offers a better indicator of WEBS' attractiveness to investors. Like
net assets, share growth continues to show an impressive trend. Shares
outstanding are now at 130.5 million, an increase of 31% from February 28, 1999.
The sustained increase in shares outstanding shows the growing acceptance of
WEBS among investors as a way to access seventeen foreign equity markets.
INTERNATIONAL PERFORMANCE
As in our domestic market, the technology, media and telecommunications
("TMT") sectors provided the impetus for the favorable performance of many
international markets in the six months ending February 29, 2000. Countries with
heavier weight in the TMT sectors outperformed the others. The MSCI Sweden
Index, for instance, with Ericsson having a greater than 40% weighting was up
79.85%. The MSCI Canada Index, with telecommunications giant BCE and Nortel
Networks, a telecommunications-equipment company, returned 39.00% for the
six-month period. Other strong performing indices included Mexico (Free) up
38.09%, Germany up 33.45%, France up 24.84%, Hong Kong up 21.56%, Italy up
23.42%, and to a lesser extent, Japan up 14.17% and Spain up 16.17%.
On the flip side, the markets in Austria and Switzerland declined during
the period. The Austria Index, down 16.74%, continued to try to recover from the
Russian crisis while Switzerland's interest-rate sensitive stocks in the
insurance, banking and pharmaceutical sectors failed to capture investor
interest, leaving the Switzerland Index down 10.42% for the period. Belgium,
too, found itself underweighted in the TMT industries and more heavily weighted
toward financial and utility stocks, which were hit by higher interest rates.
The MSCI Belgium Index fell 22.03%.
A surprise rally in the MSCI Malaysia Index, up 33.41%, was helped by
Malaysia's upcoming re-instatement to the MSCI Emerging Markets Indices
effective in May.
SPECIAL NOTE WITH RESPECT TO MALAYSIA
On September 1, 1998, the Malaysian government imposed capital restrictions
that prompted the Malaysia (Free) WEBS Index Series (the "Malaysia Series") to
suspend sales of creation units of WEBS. The 12-month ban on the repatriation of
foreign portfolio funds was lifted on September 1, 1999. The Malaysia Series
continues to receive regulatory relief from Bank Negara Malaysia, the Malaysian
Central Bank. The relief permits the Malaysia Series to honor requests, in
proper form, for the redemption of Creation Units of the Malaysia Series through
the delivery of Malaysian ringgits to a redeeming investor's account at a duly
licensed Malaysian institution. WEBS of the Malaysia Series have frequently
traded at significantly different prices than their net asset values because of
the disruption to the creation/redemption mechanism. The Malaysia Series
continues its efforts to resume "in-kind" creations and redemptions, but there
can still be no assurance that the required Malaysian approvals will be granted.
The Fund is also reviewing the possibility of offering Creation Units of the
Malaysia Series for cash.
UPCOMING SPECIAL MEETING OF SHAREHOLDERS
On January 28, 2000 the Board of Directors took a number of actions
relating to the management and distribution arrangements of the Fund, some of
which are subject to shareholder approval. A special meeting of shareholders of
the Fund has been called for May 5, 2000 at which all shareholders will have the
opportunity to vote upon proposed amendments to the Fund's advisory agreement.
In addition, shareholders of the Canada, Japan, and United Kingdom WEBS Index
Series will vote on changing these Series from diversified to nondiversified
funds. The proxy statement relating to the special meeting contains a detailed
description of each proposal, and you should review it carefully before voting.
CONCLUSION
The continued popularity of the seventeen WEBS Index Series continues
because investors such as yourself understand that the WEBS Index Fund, Inc.
provides an easy, relatively inexpensive way to access any of seventeen
different foreign stock markets.
We thank you for your continued support of and confidence in WEBS Index
Fund, Inc. and hope the Fund will continue to meet your portfolio needs.
Sincerely,
/s/ Nathan Most
---------------
Nathan Most
Chairman and President
WEBS Index Fund, Inc.
1
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INTRODUCTION
In the following pages, the WEBS Index Series' managers discuss the
performance of each WEBS Index Series. The introduction serves to introduce
Barclays Global Fund Advisors as the Investment Advisor for each WEBS Index
Series and to provide an overview of how the Series track their respective
index. In addition, it will define some of the key factors, which contribute to
the performance against the benchmarks.
Each WEBS Index Series invests in a representative sample of the underlying
securities in a corresponding MSCI Index (using the analytic technique known as
"portfolio sampling"), as opposed to a full replication of the corresponding
MSCI Index. Certain WEBS Index Series may also invest to a limited extent in
stocks that are not included in the relevant MSCI Index to permit them
additional flexibility to comply with diversification and other regulatory
requirements.
Portfolio sampling is a highly disciplined approach to capturing index
returns which involves maximizing float and liquidity, reflecting accurately the
market's size and industry profiles and minimizing cross-ownership. No attempt
is made to manage the WEBS Index Series using economic or market analysis.
Because of portfolio sampling, the composition of each WEBS Index Series will
vary from that of its benchmark MSCI Index. This may cause performance to vary
positively or negatively from that of its corresponding MSCI Index during any
period.
There are several important factors that should be kept in mind when
reviewing the performance of each WEBS Index Series. First, the MSCI Indices are
unmanaged and, therefore, do not bear management, administration, distribution,
transaction or other expenses, while the WEBS Index Series do incur such
expenses, thereby impacting the performance of the WEBS Index Series.
Second, regulatory constraints may also adversely impact the Investment
Advisor's ability to "optimize" the portfolios of certain WEBS Index Series
through the use of portfolio sampling. Each WEBS Index Series must comply with
the asset diversification tests of Subchapter M of the Internal Revenue Code at
the end of each quarter of its taxable year. The principal regulatory
constraints that affect each Series' performance are the "Single Issuer Rule"
and the "5/50 Rule".
The "Single Issuer Rule" generally requires that not more than 25% of the
value of a WEBS Index Series' total assets may be invested in the securities of
one single issuer. This constraint applies to all share classes of an issuer. As
an example, Telefonos de Mexico, an issuer in which the Mexico (Free) WEBS Index
Series invests, has two classes of shares (A and B shares), that have a
collective weighting in the corresponding MSCI Index of 31.30% at the end of the
semi-annual period. Because of the "Single Issuer Rule", the Index Series cannot
hold any combination of the two share classes above 25%.
The "5/50 Rule" generally precludes the sum of all of the securities
weighted over 5% from exceeding 50% of the Index Series' total assets. 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 the stocks with
weightings of 5% or greater in the MSCI Hong Kong Index was 89% at the end of
the semi-annual period. To comply with the Rule, the Hong Kong WEBS Index Series
must be underweight in some of these stocks relative to the benchmark, and
therefore overweight in other stocks.
The Investment Company Act of 1940 generally requires funds that are
"diversified" to have no more than 25% of their net assets invested in
securities that have a greater than 5% weighting. At present, only the Canada,
Japan and United Kingdom WEBS Index Series are classified as diversified.
Because of recent changes in the local markets, the benchmark indices for the
Canada and United Kingdom WEBS Index Series have become non-diversified and the
benchmark index for the Japan WEBS Index Series has become less diversified. The
need for compliance with the Investment Company Act diversification test
resulted in significant misweightings of certain securities in the Canada WEBS
Index Series in recent times, adversely affecting performance compared to the
Series' benchmark. Shareholders of the Canada,
2
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WEBS INDEX FUND, INC.
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Japan and United Kingdom WEBS Index Series are being asked to vote on changing
such Series from diversified to nondiversified funds at a Special Meeting of the
Fund's shareholders to be held on May 5, 2000.
A third factor that causes performance of the WEBS Index Series to differ
from that of their respective MSCI Indices is "revenue differential". The
dividend revenues accrued by the WEBS Index Series differ from those of the MSCI
Indices both in 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
allocate annual dividend revenues evenly over a 12-month period. In addition,
some of the WEBS Index Series are subject to withholding taxes at rates that are
more favorable than the rates assumed by the benchmark MSCI Indices, and this
factor may affect the relative performance of such WEBS Index Series. Also,
while the sole source of revenues for the MSCI Indices is dividends, 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.
Finally, uninvested assets held by the WEBS Index Series affect performance
relative to their respective benchmark indices. Cash and deferred organizational
expenses are the principal "unequitized" assets of the WEBS Index Series. In
contrast, the MSCI Indices are always fully invested in the underlying stocks
and thus do not reflect any "unequitized" assets. "Cash drag" refers to the
portion of a WEBS Index Series that is not invested in stocks. The effect of
"cash drag" will tend to cause each WEBS Index Series to outperform its
benchmark index in falling markets and underperform the benchmark index 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 1.36% for the six-month period ended February 29, 2000, while the
corresponding MSCI Index returned 2.68% over the same time period.
SIGNIFICANT PERFORMANCE FACTORS
The Australia Series underperformed the benchmark by 1.22% during this
period as a result of portfolio sampling and expenses. The impact of portfolio
sampling (1.57%), and expenses (0.48%), was somewhat mitigated by a revenue
differential benefit of 0.74%. In particular, the Series was overweighted in
several of the poorly performing sectors such as metals (down 50.19%) and
multi-industry (down 52.89%). It was also underweighted in broadcasting and
publishing, one of the market's top performers, returning 94.72% for the period.
KEY MARKET CONDITIONS
While the Australian market regained some of its vitality following a
downturn in September and October, positive returns were heavily concentrated
among a few select sectors. In fact, for the six-month period overall, only the
broadcasting and publishing sector ended with positive gains. Notable
underperformers included forest products and paper, and appliances and household
durables.
On the economic front, the economy continued to gain strength as consumer,
information technology and housing-related spending pulled fourth-quarter gross
domestic product (GDP) up to a projected year over year increase of 1.2%. 1999
GDP growth reached 4.2%. Housing-related spending has been strong due in part to
low interest rates and the fact that building costs will rise once new tax laws
take effect in July 2000. Economic activity received further support from a
recovery in export growth. With global growth becoming increasingly more
synchronized, Australian resource companies are expected to benefit from higher
commodity prices.
In light of the resilience of demand conditions, tightening of the labor
market and the ongoing rise in oil prices, the Reserve Bank of Australia (RBA)
tightened monetary policy by raising interest rates by 0.25% on November 3, 1999
- -- the first tightening in five years. This was followed by a 0.50% increase on
February 2, 2000, which took the cash rate to 5.5%. While it was greater than
expected, the move had a positive impact on markets, indicating that the RBA is
prepared to keep inflation well within their 2% to 3% target range.
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 Series MSCI Australia 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
02/29/00 11,361 11,778
Past performance is not predictive of future performance
Value
February 29, 2000
-----------------
Australia WEBS Index Series $11,361*
MSCI Australia Index $11,778
AVERAGE ANNUAL TOTAL RETURN
ONE SINCE
YEAR INCEPTION
----- ---------
Australia WEBS Index Series 7.11% 3.26%
MSCI Australia Index 7.14% 4.21%
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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
PERFORMANCE REVIEW
The total return of the Austria WEBS Index Series (the "Austria Series")
was (16.32%) for the six-month period ended February 29, 2000, while the
corresponding MSCI Index returned (16.74%) over the same time period.
SIGNIFICANT PERFORMANCE FACTORS
The Austria Series outperformed the benchmark by 0.42% during this period
primarily as a result of the positive impact of portfolio sampling 1.43%, which
more than offset the effects of expenses (0.60%), and revenue differential
(0.59%). In particular, the Series' overweighted position in materials and
commodities contributed to its outperformance.
KEY MARKET CONDITIONS
The Austrian market was hit hard by the Russian crisis in 1998 and spent
much of 1999 trying to recover. Unfortunately, while the market managed to end
the year in positive territory, gains were more than reversed in the first
several months of 2000. With a quarter of the market capitalization of the Index
represented by banking stocks, concerns over the direction of global interest
rates took a heavy toll. The Austrian market has been struggling to attract
entrepreneurial, high-growth telecommunications and Internet companies to permit
it to catch up with its rival exchanges.
On the other hand, Austria enjoyed a relatively sound economic environment.
Gross domestic product is expected to have expanded 2.1% in 1999. Employment
prospects continued to improve with the unemployment rate falling to 4.1% in
October, the third best in Euroland. Consumer prices rose only 0.5% through the
first three-quarters of the calendar year, the lowest inflation rate in four
decades. Business optimism and consumer confidence remains high.
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 Index Series MSCI Austria Index
------------------------- ------------------
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
02/29/00 7,622 8,247
Past performance is not predictive of future performance
Value
February 29, 2000
-----------------
Austria WEBS Index Series $7,622*
MSCI Austria Index $8,247
AVERAGE ANNUAL TOTAL RETURN
ONE SINCE
YEAR INCEPTION
-------- ---------
Austria WEBS Index Series (18.94)% (6.61)%
MSCI Austria Index (20.33)% (4.74)%
- ------------------
* 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 (22.15%) for the six-month period ended February 29, 2000, while the
corresponding MSCI Index returned (22.03%) over the same time period.
SIGNIFICANT PERFORMANCE FACTORS
The Belgium Series underperformed the benchmark by 0.12% during this period
as the positive effects of portfolio sampling, 0.84%, and cash drag, 0.35%, were
mitigated by the impact of expenses (0.64%) and revenue differential (0.67%).
KEY MARKET CONDITIONS
The Belgian market strongly lagged the returns of the rest of Europe. Even
taking into account 1998's exceptionally strong year, market composition had
everything to do with its underperformance. For one, the Belgian market is
seriously underweighted in high-tech and telecommunication companies. The
absence of a major telecommunications carrier has been an overwhelmingly
negative factor. It is also heavily weighted toward financial and utilities
stocks, which were adversely affected by higher interest rates. Moreover, the
fact that there are few Belgian companies included in the European indices has
discouraged investors in search of liquidity.
Another key factor in the market downturn has been the shift by Belgian
institutional investors to markets outside Belgium. This factor, and the lack of
enthusiasm for Belgium by other European money managers, who have not given the
Belgian market its market-cap weighting, has adversely affected prices of
Belgian stocks.
The Belgian economy, on the other hand, enjoyed a relatively good year.
Toward the end of 1999, Belgium's sentiment indicator reached record levels on
the tail of a better fiscal environment, healthy employment prospects and
accelerated global growth. Real GDP growth, while not outstanding, is projected
to reach 2.2% for 1999.
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 Index Series MSCI Belgium Index
------------------------- ------------------
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
02/29/00 12,329 14,178
Past performance is not predictive of future performance
Value
February 29, 2000
-----------------
Belgium WEBS Index Series $12,329*
MSCI Belgium Index $14,178
AVERAGE ANNUAL TOTAL RETURN
ONE SINCE
YEAR INCEPTION
-------- ---------
Belgium WEBS Index Series (26.41)% 5.41%
MSCI Belgium Index (27.80)% 9.19%
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* 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
28.77% for the six-month period ended February 29, 2000, while the corresponding
MSCI Index returned 39.00% over the same time period.
SIGNIFICANT PERFORMANCE FACTORS
The Canada Series underperformed the benchmark by 10.23% primarily as a
result of portfolio sampling (9.33%), although expenses (0.66%), also detracted
from returns.
This significant underperformance in portfolio sampling was mostly
attributed to the Canada Series' underweighted position in telecommunication and
technology companies, which outperformed significantly in the six-month period.
In particular, because the Series is "nondiversified" for purposes of the
Investment Company Act, it was obligated to take an increasingly underweight
position in telecommunications giant BCE and Nortel Networks, a
telecommunications-equipment company. From October through the end of February,
the portfolio was underweight an average of 6.5% in BCE, which returned 73%,
contributing (4.8%) to the total performance. Similarly, the Canada Series was
underweight an average of 5.0% in Nortel, which returned 77%, adding (3.9%) to
the underperformance.
Key Market Conditions
The Canadian market demonstrated considerable strength over the period, but
leadership remained narrowly focused among a few select sectors. Telecom and
technology stole the limelight, with both sectors returning well over 100%.
Utility companies fared the worst in this narrow market, losing over 40%.
From the summer of 1997, when the Asian crisis began to unfold, until
spring of last year, Canadian cyclical stocks significantly underperformed the
market, although there is some evidence that 1999 saw the bottom in commodity
prices. Fueled by global growth and strengthening commodity prices, Canada's
cyclical companies are beginning to increase their earnings. The slide in
commodity prices was also a key reason why the Canadian dollar was under
downward pressure in 1998, but it has begun to recover.
Canada's fiscal position, like that of the US, has benefited from strong
growth, low inflation and a rising budget surplus. For years, this temperate
environment fueled gains in the bond market which surpassed those in the equity
market. Fortunately, after more than nine years, the cycle was broken in
November of last year on the back of Asian-led recovery, a spate of mergers and
acquisitions and the technological revolution.
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 Index Series MSCI Canada Index
------------------------ -----------------
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
02/29/00 18,943 21,132
Past performance is not predictive of future performance
Value
February 29, 2000
-----------------
Canada WEBS Index Series $18,943*
MSCI Canada Index $21,132
AVERAGE ANNUAL TOTAL RETURN
ONE SINCE
YEAR INCEPTION
------ ---------
Canada WEBS Index Series 48.96% 17.45%
MSCI Canada Index 60.03% 20.73%
- ------------------
* 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
23.07% for the six-month period ended February 29, 2000, while the corresponding
MSCI Index returned 24.84% over the same time period.
SIGNIFICANT PERFORMANCE FACTORS
The France Series underperformed the benchmark by 1.77% during this period
as a result of portfolio sampling (0.76%), expenses (0.48%), and revenue
differential (0.49%). In particular, the France Series' overweighted position in
several of the poorer performing sectors, such as beverages, tobacco and
building materials, detracted from its performance. Additionally, securities
selected through portfolio sampling in electrical, electronics and chemical
companies contributed to the divergence.
KEY MARKET CONDITIONS
By any measure, investors in the French market should be pleased. Led by
gains in telecommunications, media and technology, the French market ended the
year as one of Europe's top performers. Underpinning the spectacular gains in
these sectors was the convergence among content, Internet and mobile telephony.
Their returns were so strong that they more than compensated for the negative
returns in the "old economy" companies like food and household products and
financial services.
An increase in consumption and investment in the second half of the year
boosted 1999 economic growth to 2.7% year over year. On average, consumer
spending grew by 4.2% in 1999, a strong performance given both the exceptional
results of 1998 and the relatively poor economic environment during the first
half of the year. France also generated the world's second-highest trade surplus
in 1999, underlining powerful growth at home and on the export markets.
Meanwhile, inflation remains relatively low at below 1% and unemployment moved
to a seven-year low at 10.6%, from a historic high of 12.6% in 1997.
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 Index Series MSCI France Index
------------------------ -----------------
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
02/29/00 24,561 24,763
Past performance is not predictive of future performance
Value
February 29, 2000
-----------------
France WEBS Index Series $24,561*
MSCI France Index $24,763
AVERAGE ANNUAL TOTAL RETURN
ONE SINCE
YEAR INCEPTION
------ ---------
France WEBS Index Series 36.38% 25.38%
MSCI France Index 36.79% 25.64%
- ------------------
* 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 30.33% for the six-month period ended February 29, 2000, while the
corresponding MSCI Index returned 33.45% over the same time period.
SIGNIFICANT PERFORMANCE FACTORS
The Germany Series underperformed the benchmark by 3.12% during this period
as a result of portfolio sampling (1.99%), revenue differential (0.51%), and
expenses (0.47%). In particular, the Germany Series' overweighted position in
the poorly performing utilities sector, (down 22.50%), and underweighted
position in the outperforming broadcasting and publishing sectors, up 61.87%,
caused returns that lagged the Index.
KEY MARKET CONDITIONS
After a relatively unspectacular start to 1999, the German market staged
its comeback at the start of November to end the six-month period with
impressive gains. Recent restructuring across corporate Germany was a key driver
of positive sentiment, with takeover activity and speculation in the telecom and
banking sectors driving the market to new highs. Germany was also swept into the
buying frenzy in European technology and media companies. Finally, global
economic recovery began to benefit Germany's capital goods companies; the
country accounts for a quarter of Western Europe's industrial sector.
The German economy has also provided a favorable backdrop to gains in the
stock market. The rate of economic growth continues to increase and is set to
reach 2.9% year on year in mid-2000, up from a mere 1.5% increase in 1999. This
positive trend appears to continue with the recent announcement of tax
incentives for corporations and individuals. The German government plans to
reduce corporate taxes from 40% to 25%, abolish the 50% capital gains tax levied
when corporations sell shares in other corporations, and reduce the maximum
personal tax rate from 53% to 45% between the years 2001 to 2005. In spite of
the strengthening economy, there are no domestic inflationary pressures visible.
Oil prices and the weaker Euro are the only forces pushing CPI inflation higher.
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 Index Series MSCI Germany Index
------------------------- ------------------
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
02/29/00 21,975 22,837
Past performance is not predictive of future performance
Value
February 29, 2000
-----------------
Germany WEBS Index Series $21,975*
MSCI Germany Index $22,837
AVERAGE ANNUAL TOTAL RETURN
ONE SINCE
YEAR INCEPTION
------ ---------
Germany WEBS Index Series 36.35% 21.92%
MSCI Germany Index 37.22% 23.11%
- ------------------
* 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 14.26% for the six-month period ended February 29, 2000, while the
corresponding MSCI Index returned 21.56% over the same time period.
SIGNIFICANT PERFORMANCE FACTORS
The Hong Kong Series underperformed the benchmark by 7.30% during this
period primarily as a result of portfolio sampling (6.54%), and expenses
(0.48%).
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 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
approximately 73% at February 29, 2000. As a result, most of the
underperformance in Hong Kong was due to an approximate 5.5% underweight in the
real estate sector, which returned 10.8%. However, within the real estate
industry the returns varied greatly. The Hong Kong Series was, on average,
underweight 6.5% in the best performing stock, Cheung Kong Holdings, which
returned 53%. In addition, the Hong Kong Series had an approximate 3%
underweighting in Hutchinson Whampoa, which impacted returns as Hutchinson's
share price returned 60.7% over the six-month period. The 5/50 Rule also caused
the Hong Kong Series to be overweighted in several of the poorly performing
sectors such as banking and leisure and tourism down (13.69%) and (33.04%),
respectively, and underweighted in the telecommunications sector, which enjoyed
strong gains in the period up 46.69%.
KEY MARKET CONDITIONS
A distinct gap existed between stocks that performed well and those that
didn't -- a growth versus interest rate sensitive and cyclical stocks story.
Witness the stellar performances of growth stocks such as technology, telecom
and media, which were bolstered by their buoyant US counterparts, corporate
activities and the promise of liberalized telecom and Internet-related markets
in China. In contrast, the returns of banks and property companies were impacted
severely by rising interest rates and sluggish private consumption. Slow growth
in real wages is a major cause of weak private consumption. More recently the
threat of further consolidation in the financial services and property sectors
has put additional downward pressure on wages.
Just how significant is the shift toward telecom from property-related
stocks? At the start of 1997, real estate accounted for 37% of the Hang Seng
Index with telecom a mere 7%. By the beginning of 2000, property accounted for
16% and telecom 32% of the Index.
Following last year's fall in economic activity of over 5%, Hong Kong's
recovery is moving steadily ahead. Supported by strong trade flows, rising
retail sales and peaking unemployment, real GDP grew 8.7% in the fourth quarter
of 1999 and 2.9% for the full year. Hong Kong's trade sector has benefited
largely from China-related trade flows, while unemployment dipped to 5.7% in
January.
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 Index Series MSCI Hong Kong Index
--------------------------- --------------------
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
02/29/00 12,117 14,505
Past performance is not predictive of future performance
Value
February 29, 2000
-----------------
Hong Kong WEBS Index Series $12,117*
MSCI Hong Kong Index $14,505
AVERAGE ANNUAL TOTAL RETURN
ONE SINCE
YEAR INCEPTION
------ ---------
Hong Kong Webs Index Series 58.82% 4.95%
MSCI Hong Kong Index 65.55% 9.81%
- ------------------
* 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
24.03% for the six-month period ended February 29, 2000, while the corresponding
MSCI Index returned 23.42% over the same time period.
SIGNIFICANT PERFORMANCE FACTORS
The Italy Series outperformed the benchmark by 0.61% as a result of the
positive impact of portfolio sampling, 1.49%, which more than offset the effect
of expenses (0.53%), and revenue differential (0.30%). The Italy Series
benefited primarily from its underweighted position in utilities, which
performed poorly, and its slightly overweighted positions in broadcasting and
publishing and telecommunications -- the market's top performers.
KEY MARKET CONDITIONS
The Italian market maintained a common theme with the rest of the world:
the outperformance of technology, media and telecommunications stocks. In
particular, considerable gains in the telecommunications sector, which
represents over 25% of the Index, drove the market upwards. Excluding these
sectors, the Italian market has either been hovering quietly or sliding
downward. Concerns about inflation had a negative impact on banking stocks.
Retailers and building-related companies were among the hardest hit sectors in
the period.
After a long period of almost stagnant economic conditions, Italy is
beginning to show some signs of improvement. With investment and the foreign
sector providing the main drive, fourth quarter GDP grew close to 3% year on
year to bring 1999 GDP growth up to 1.4%. The country, which had been hard hit
after the Asian crisis, is just beginning to benefit from stronger demand in
exports as a result of a weaker Euro. At the same time, unemployment fell from
11.5% to 11% in the third quarter of 1999, its lowest level in more than five
years. Taking into account all these positive factors, Italys consumer
confidence index (the ISAE) reached its highest level since it was first
recorded in 1994. As a result of a declining budget deficit, the Italian
government will probably propose a substantial tax cut, and will have lighter
borrowing requirements.
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 Index Series MSCI Italy Index
----------------------- ----------------
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
02/29/00 24,732 24,638
Past performance is not predictive of future performance
Value
February 29, 2000
-----------------
Italy WEBS Index Series $24,732*
MSCI Italy Index $24,638
AVERAGE ANNUAL TOTAL RETURN
ONE SINCE
YEAR INCEPTION
------ ---------
Italy WEBS Index Series 15.98% 25.60%
MSCI Italy Index 13.72% 25.48%
- ------------------
* 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 was 14.59% for the
six-month period ended February 29, 2000, while the corresponding MSCI Index
returned 14.17% over the same time period.
SIGNIFICANT PERFORMANCE FACTORS
The Japan Series outperformed the benchmark by 0.42% during this period
primarily as a result of portfolio sampling.
KEY MARKET CONDITIONS
Despite disappointing news on the economy in recent months, the Japanese
equity market continued to edge higher. Lured by the prospects of the "new
economy" stocks in technology, media and telecom, investor enthusiasm pushed the
Nikkei Dow Index beyond 20,000 in February 2000 for the first time in
two-and-a-half years. As elsewhere, market strength has been narrowly based on
technology, media and telecommunications stocks. Airlines, housing and
energy-related companies were notable underperformers.
Consistent with capital flows over the past several years, foreigners were
net buyers of equities while domestic investors have been shy in returning to
the market. However, much needed domestic support could come later this year
when 49 trillion yen of postal deposits mature.
Positive market news has been tempered by news on the economic front. Both
private consumption and investment continued to show great weakness in spite of
the extraordinarily loose monetary policy that put interest rates at 0% for most
of 1999. Meanwhile, unemployment is at an historic high. As a result, the
economy is back in recession with two back-to-back quarters of negative growth.
Another sizeable fiscal package should ensure positive growth in 2000. However,
net trade is seen as an important part of a self-sustained recovery. Moreover, a
proposal to increase taxes on large domestic banks has led banking stocks to
decline.
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 Index Series MSCI Japan Index
----------------------- ----------------
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
02/29/00 10,297 10,742
Past performance is not predictive of future performance
Value
February 29, 2000
-----------------
Japan WEBS Index Series $10,297*
MSCI Japan Index $10,742
AVERAGE ANNUAL TOTAL RETURN
ONE SINCE
YEAR INCEPTION
------ ---------
Japan WEBS Index Series 49.94% 0.74%
MSCI Japan Index 52.79% 1.82%
- ------------------
* 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 33.81% for the six-month period ended February 29, 2000, while the
corresponding MSCI Index returned 33.41% over the same time period.
SIGNIFICANT PERFORMANCE FACTORS
The Malaysia Series outperformed the benchmark by 0.40% primarily as a
result of portfolio sampling, which contributed 1.76%, although positive results
were offset by the negative impact of cash drag. Cash drag resulted from the
Malaysian Series' average 3.3% position in cash during a period of remarkable
market performance. The continuance of capital controls in Malaysia prompted the
Malaysia Series to maintain higher than normal cash balances in order to
facilitate distributions and pay expenses. Securities selected through portfolio
sampling in electronic components and instruments positively contributed to the
Malaysian Series' outperformance.
KEY MARKET CONDITIONS
After performing well throughout the first half of 1999, the Malaysian
market flattened over the remainder of the year, causing it to lag regional
markets. By the time the New Year rolled around, conditions were ripe for an
equity market rally. Fueled by a sound economic recovery, lower political risk,
earnings momentum, compelling valuations, increased foreign buying and improved
liquidity, the market jumped 23.4% in the first two months of 2000.
The rally in Malaysia's stock market has been helped by its reinstatement
to the MSCI Emerging Markets Indices effective in May. The Malaysian market
suffered from a significant pullout of foreign capital in 1999. Even after the
government moved to ease the controversial capital controls, more than $1
billion was pulled from the market by foreign investors.
The macroeconomic picture remains positive. Fourth quarter GDP surged
10.6%, higher than the 8.2% rise in the third quarter of last year, while full
year GDP is expected at 4.8%. Domestic and external demands have also
accelerated, providing a boon to manufacturing sales. Malaysia's trade surplus
remains in excess of US $1 billion.
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 (Free) WEBS Index Series MSCI Malaysia (Free) Index
--------------------------------- --------------------------
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
02/29/00 6,303 6,737
Past performance is not predictive of future performance
Value
February 29, 2000
-----------------
Malaysia (Free) WEBS Index Series $6,303*
MSCI Malaysia (Free) Index $6,737
AVERAGE ANNUAL TOTAL RETURN
ONE SINCE
YEAR INCEPTION
------- ---------
Malaysia (Free) WEBS Index Series 159.63% (10.97)%
MSCI Malaysia (Free) Index 136.22% (9.47)%
- ------------------
* 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 34.43% for the six-month period ended February 29, 2000, while the
corresponding MSCI Index returned 38.09% over the same time period.
SIGNIFICANT PERFORMANCE FACTORS
The Mexico Series underperformed the benchmark by 3.66% during this period
as a result of portfolio sampling (3.29%), and expenses (0.56%).
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 Mexico (Free) WEBS Index Series in this period, both the 5/50
and the Single Issuer Rules constrained the Investment Advisor's ability to
optimize the Index Series. It is important to note that the sum of all the
weightings of 5% or greater in the MSCI Mexico (Free) Index at February 29, 2000
was approximately 70%. In addition, Telefonos de Mexico A and L shares combined
had a 37.3% weighting in the benchmark on such date. The Investment Advisor was
required, therefore, to underweight the Telefonos de Mexico securities because
of the Single Issuer Rule. The Mexico Series was therefore underweight in the
telecommunications sector, which returned 76.5% in the six month period. As a
result of the Single Issuer and 5/50 Rules, the Investment Advisor had to
reallocate the Mexico Series' weight in favor of smaller-capitalization stocks,
causing it to be overweighted in several of the poorer-performing sectors such
as food and household products (down 18.6% in the period). Additionally, the
Mexico Series' overweighted position in beverages and tobacco (down 2.0%) and
underweighted position in broadcasting and publishing (up 112.6%) contributed to
the divergence in returns.
KEY MARKET CONDITIONS
The Mexican market soared in the past six months as investors returned to
the Mexican market in droves. The greatest gains were in the media,
telecommunications and banking sectors. Most of the market's underperformers
were in the food and beverage sector, which traditionally does better in years
in which the overall market doesn't do well. Machinery and engineering and
chemicals companies also performed poorly.
Investors seem to have finally recognized that Mexico is in a different
class from other emerging emarkets. However, one implication of this is that
Mexico's fortunes are now more closely tied to US markets. As we saw in January,
this is not always a positive. In fact, Mexico was the worst performing Latin
American market that month as rising US interest rates and a fall in
US-blue-chip stocks put an end to the Mexican rally. Higher rates hurt Mexican
companies that finance themselves in the US, while the higher US bond yields
caused investors to shift from Mexican stocks to the US money market in search
of a safer haven.
January's market weakness aside, Mexico's rally has been largely justified.
Inflation ended the year well below initial market expectations, with forecasted
inflation for 2000 of just over 12%. The budget and legislative process is
producing better-than-expected results; the political landscape has improved;
and GDP growth in 1999 was broader and stronger than analysts had expected at
3.7%.
The recent good news was reinforced by Moody's announcement of the
possibility of an upgrade of Mexico's debt to investment-grade rating. The
prospect is a boost to consumer confidence and should aid the peso.
COMPARISON OF CHANGE IN VALUE OF A $10,000 INVESTMENT IN THE
MEXICO (FREE) WEBS INDEX SERIES VS. THE MSCI MEXICO (FREE) INDEX*
[GRAPHIC OMITTED]
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
Mexico (Free) WEBS Index Series MSCI Mexico (Free) Index
------------------------------- ------------------------
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
02/29/00 19,632 22,171
Past performance is not predictive of future performance
Value
February 29, 2000
-----------------
Mexico (Free) WEBS Index Series $19,632*
MSCI Mexico (Free) Index $22,171
AVERAGE ANNUAL TOTAL RETURN
ONE YEAR SINCE INCEPTION
-------- ---------------
Mexico (Free) WEBS Index Series 62.15% 18.51%
MSCI Mexico (Free) Index 69.62% 22.19%
- ------------------
* 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 (0.77%) for the six-month period ended February 29, 2000, while the
corresponding MSCI Index returned 1.57% over the same time period.
SIGNIFICANT PERFORMANCE FACTORS
The Netherlands Series underperformed the benchmark by 2.34% during this
period as a result of portfolio sampling (1.14%), revenue differential (0.58%),
and expenses (0.53%).
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 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 5% or greater in the MSCI Netherlands
Index at February 29, 2000, was approximately 77%. As a result, the Investment
Advisor had to reallocate the weight of several large-capitalization stocks in
the benchmark in favor of smaller-capitalization stocks. This caused the
Netherlands Series to be overweighted in several of the poorly performing
sectors such as data processing and reproduction (down 42.6% for the period) and
machinery and engineering (down 21.2%). Additionally, the Netherlands Series was
underweighted in some of the top performing sectors such as electronic
components and instruments (up 101.2%) and appliances and household durables (up
177.85%), contributing to relative underperformance.
KEY MARKET CONDITIONS
The Dutch market underperformed its Euroland rivals primarily because of
its higher preponderance of energy-related stocks relative to the high-flying
technology, media and telecommunications sectors. The financial services sector,
another Dutch heavyweight, also performed poorly as concerns over interest rates
dampened investor sentiment.
Over the last several months, market strength has been underpinned by
improving economic fundamentals and strong producer and consumer confidence
levels. Because of the Dutch economy's international orientation, GDP growth in
Euroland, Asia and the US has had a positive impact on its economy. On the basis
of aggregated figures, companies in the AEX Index generate only 24% of their
revenues in the Netherlands. The increase in foreign demand has fueled a surge
in Dutch manufacturing production, which was up 5.0% in the fourth quarter 1999
compared with the fourth quarter of 1998. Production is now back at pre-Asian
crisis levels. This improved economic situation has had a markedly positive
effect on corporate earnings. As a result, 1999 GDP growth is forecasted at
3.0%, which would rise above its long-term average.
At some point, however, the Netherlands stands to face inflationary
pressures. With unemployment down to 3% and still declining, the implications of
higher wages would have a pronounced effect on corporate profits. On average, a
one-percentage point increase in wage costs amounts to almost 3% less net profit
for Dutch-listed companies, so the importance of wage moderation is self-evident
for Dutch companies.
COMPARISON OF CHANGE IN VALUE OF A $10,000 INVESTMENT IN THE
NETHERLANDS WEBS INDEX SERIES VS. THE MSCI NETHERLANDS INDEX*
[GRAPHIC OMITTED]
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
Netherlands WEBS Index Series MSCI Netherlands Index
----------------------------- ----------------------
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
02/29/00 18,076 19,157
Past performance is not predictive of future performance
Value
February 29, 2000
-----------------
Netherlands WEBS Index Series $18,076*
MSCI Netherlands Index $19,157
AVERAGE ANNUAL TOTAL RETURN
ONE SINCE
YEAR INCEPTION
----- ---------
Netherlands WEBS Index Series 6.59% 16.07%
MSCI Netherlands Index 9.01% 17.78%
- ------------------
* 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 (5.84%) for the six-month period ended February 29, 2000, while the
corresponding MSCI Index returned (4.43%) over the same time period.
SIGNIFICANT PERFORMANCE FACTORS
The Singapore Series underperformed the benchmark by 1.41% during this
period as a result of portfolio sampling (1.78%) and expenses (0.46%), while
revenue differential of 0.76% helped mitigate returns.
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 Singapore 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 the weightings of over 5% in the MSCI Singapore (Free) Index was
approximately 70% at February 29, 2000. This caused the Singapore Series to have
overweight positions in several of the poorer performing sectors such as
shipping (down 36.8%), real estate (down 35.2%) and multi-industry (down 27.2%).
KEY MARKET CONDITIONS
Singapore enjoyed a spectacular rise in its stock market in 1999, which
brought its returns to 78% for the year. Since the beginning of the year,
however, Singapore has experienced an equally spectacular fall, making it one of
the region's worst performing markets in 2000. The Straits Times Index has
fallen nearly 20% since the start of the year to the end of February. Among the
hardest hit were the automobile sector and property-related companies.
Last year, investors were heralding the policies the government had put in
place to steer its economy through Asia's economic crisis. The economy expanded
nearly 6% last year as exports surged, unemployment fell and companies were
restructured. Money came pouring into the market as investors sought safe havens
from Y2K complications. In stark contrast, this year, investors jittery from the
market's inflated level, have been pulling money out of Singapore.
Several factors help to explain why Singapore has underperformed so
significantly. First, since property stocks remain a large component of the
Index, interest rate concerns in the US have prompted a correction in
Singapore's interest rate sensitive property stocks. Second, following the
strong outperformance of its market last year, many institutional investors
downgraded their holdings in Singapore equities. Moreover, the impending changes
in the MSCI Emerging Markets Index to increase Taiwan's weighting on the back of
Malaysia's admittance to the Index has prompted short-term capital outflows.
Finally, Singapore's dearth of TMT (technology, media and telecommunications)
stocks has left "new economy" enthusiasts looking elsewhere. Singapore's market
capitalization is dominated by banks, properties and Singapore Telecom, none of
which are seen as a proxy for the Internet.
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 (Free) WEBS Index Series MSCI Singapore (Free) Index
---------------------------------- ---------------------------
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
02/29/00 6,361 6,951
Past performance is not predictive of future performance
Value
February 29, 2000
-----------------
Singapore (Free) WEBS Index Series $6,361*
MSCI Singapore (Free) Index $6,951
AVERAGE ANNUAL TOTAL RETURN
ONE SINCE
YEAR INCEPTION
------ ---------
Singapore (Free) WEBS Index Series 29.46% (10.76)%
MSCI Singapore (Free) Index 32.50% (8.75)%
- ------------------
* 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
9.77% for the six-month period ended February 29, 2000, while the corresponding
MSCI Index returned 16.17% over the same time period.
SIGNIFICANT PERFORMANCE FACTORS
The Spain Series underperformed the benchmark by 6.40% during this period
primarily as a result of portfolio sampling, (5.94%), and revenue differential,
(0.51%).
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 Spain Series, because of the Single Issuer Rule, the
Spain Series was obligated to underweight Telefonica (which returned 94.7% over
the period) by approximately 6.3%. At the same time, the Investment Advisor had
to reallocate the weight in favor of smaller capitalization stocks, causing the
Spain Series to be overweighted in several of the poorly performing sectors such
as real estate (down 29.4% for the period) and merchandising (down 25.1%).
KEY MARKET CONDITIONS
After experiencing hefty gains in the last two months of the year, the
Spanish market began the new millennium on a weak note. A worsening interest
rate scenario interrupted the market's vertical rally, but strength was regained
as the enthusiasm for TMT stocks (technology/media/telecommunications) continued
to drive returns. Against this narrow market, chemical and beverage and tobacco
companies fared the worst with declines reaching nearly 40%.
A constructive economic backdrop provided support to positive consumer
sentiment. The Spanish economy, now into its sixth year of strong expansion, is
expected to have grown 3.7% last year. The favorable outlook is expected to
continue with the Spanish government's approval of the 1999 - 2003 Stability
Program on January 21, 2000. Under this program, Spain's economy is expected to
continue to grow more than the European Union at a rate of 3.7% in 2000 and an
average of 3.3% in the three years from 2001 - 2003. The positive economy has
brought needed relief to unemployment, which reached nearly 19% in 1998. An
unfortunate side-effect of strong growth has been higher inflation rates than
the average in the EU.
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 Index Series MSCI Spain Index
----------------------- ----------------
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
02/29/00 24,902 27,540
Past performance is not predictive of future performance
Value
February 29, 2000
-----------------
Spain WEBS Index Series $24,902*
MSCI Spain Index $27,540
AVERAGE ANNUAL TOTAL RETURN
ONE SINCE
YEAR INCEPTION
------- ---------
Spain WEBS Index Series 2.11% 25.82%
MSCI Spain Index 10.29% 29.05%
- ------------------
* 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
61.38% for the six-month period ended February 29, 2000, while the corresponding
MSCI Index returned 79.85% over the same time period.
SIGNIFICANT PERFORMANCE FACTORS
The Sweden Series underperformed the benchmark by 18.47% during this period
primarily as a result of the impact of portfolio sampling, (17.10%). On a much
smaller scale, expenses (0.55%), and revenue differential (0.77%), also
detracted from returns.
Portfolio sampling was by far the largest contributor to underperformance.
In particular, due to the Single Issuer Rule constraint, the Sweden Series was
10% to 20% underweighted in Ericsson, which rose 197%. The Sweden Series was
also overweighted in chemicals, industrial components and machinery and
engineering, several of the market's underperformers.
KEY MARKET CONDITIONS
Global euphoria over technology, media and telecommunications (TMT)
companies bode well for the TMT-heavy Swedish market. The total weight of these
sectors is higher in the Swedish Index than in other European indices, allowing
it to significantly outperform most other European markets in the period. One
dominant stock in particular, Ericsson, the Index's largest stock (at over 40%
of the MSCI Sweden Index) and the world's third biggest maker of mobile phones,
surged to record highs, returning nearly 200% in the past six months alone.
The Swedish market also benefited from record consumer confidence levels
and strong liquidity. Consumer sentiment has received considerable support from
positive employment prospects and government promises of substantial tax cuts.
Private domestic demand has in turn fueled a powerful economic recovery, with
1999 GDP forecasted to finish the year up 3.5%. The current enthusiasm for
spending seems unabated by a recent hike in interest rates. The Riksbank cited
improvement in international economic prospects and higher than expected
commodity prices as justification for the 0.50% increase in rates on February 4,
2000. Meanwhile, strong liquidity in the market has been driven by escalated
foreign interest, which totaled nearly 40% at the end of 1999.
The expected recovery in Euroland will only add to the impetus in Sweden.
Because Sweden is a very open economy with exports accounting for about 44% of
total output, an increase in EU economic growth has a direct impact on Sweden.
The greatest disappointments were in the pulp and paper, pharmaceutical,
and consumer goods and services sectors. Pharmaceuticals were one of the
heaviest hit sectors largely as a result of the potential threat of a US
Medicare drug benefit program with Federal price controls.
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 Series MSCI Sweden 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
02/29/00 31,615 37,492
Past performance is not predictive of future performance
Value
February 29, 2000
-----------------
Sweden WEBS Index Series $31,615*
MSCI Sweden Index $37,492
AVERAGE ANNUAL TOTAL RETURN
ONE SINCE
YEAR INCEPTION
------- ---------
Sweden WEBS Index Series 88.75% 33.61%
MSCI Sweden Index 115.27% 39.47%
- ------------------
* 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 (7.86%) for the six-month period ended February 29, 2000, while the
corresponding MSCI Index returned (10.42%) over the same time period.
SIGNIFICANT PERFORMANCE FACTORS
The Switzerland Series outperformed the benchmark by 2.49% during this
period as a result of portfolio sampling, which contributed 3.44%, while
expenses, (0.52%), and revenue differential (0.39%), offset some of the gains.
The Switzerland Series' performance was positively impacted by its
overweighted positions in several outperforming sectors, including merchandising
(up 18.6%), recreation and other consumer goods (up 41.4%) and business and
public services (up 43.64%). The Switzerland Series' underweighted position in
health and personal care, which performed poorly with (12.5%) returns, also
contributed to its relative outperformance. The misweightings, which actually
benefited the Switzerland Series' returns, were largely due to the Investment
Advisor's adherence to the 5/50 Rule.
KEY MARKET CONDITIONS
It was a disappointing six months for the Swiss market. The nascent
economic recovery in Europe and Asia and persistent concerns over interest rates
worldwide produced sustained selling pressure in the Swiss market, which has a
bias toward interest rate sensitive stocks. The insurance, banking,
pharmaceuticals and food sectors, which make up nearly three-quarters of the
total market capitalization, came under considerable selling pressure. In this
environment, growth and technology stocks remained the focus of investor
enthusiasm.
While the market's performance has been lackluster, business performance
has improved markedly since last summer. Consumer sentiment has been upbeat on
the back of rising real income and a falling unemployment rate, which is now
three percentage points lower than in 1996. Foreign demand for exports is also
picking up, boosted by a weak currency. On the other hand, the weak currency and
rising oil prices have put pressure on prices, prompting the Swiss National Bank
to adjust short-term rates upwards.
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 Index Series MSCI Switzerland Index
----------------------------- ----------------------
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
02/29/00 13,570 14,310
Past performance is not predictive of future performance
Value
February 29, 2000
-----------------
Switzerland WEBS Index Series $13,570*
MSCI Switzerland Index $14,310
AVERAGE ANNUAL TOTAL RETURN
ONE SINCE
YEAR INCEPTION
-------- ---------
Switzerland WEBS Index Series (9.65)% 7.99%
MSCI Switzerland Index (14.35)% 9.44%
- ------------------
* 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 "UK Series")
was (5.73%) for the six-month period ended February 29, 2000, while the
corresponding MSCI Index returned (4.67%) over the same time period.
SIGNIFICANT PERFORMANCE FACTORS
The UK Series underperformed the benchmark by 1.06% during this period as a
result of the impact of expenses, (0.47%), portfolio sampling, (0.20%), and
revenue differential, (0.31%).
KEY MARKET CONDITIONS
The incredible bull market that began in mid-October and roared to the end
of the year quickly retreated with the advent of the millennium, bringing the
market down below where it began the six-month period. The correction was
largely prompted by the Bank of England's decision to raise its benchmark
interest rates by 0.25% in early January and again in February, coupled with
fears over increases in the United States. Only the "new economy" stocks such as
technology, media and telecommunications managed to avoid significant
correction.
However, economic indicators remain strong. The economy continues to
demonstrate good growth, with 1999 GDP forecast at 1.9%. Domestic demand has
been especially buoyant and household expenditure rose by 4.5% in the fourth
quarter, the fastest rate of growth in ten years, while real incomes are growing
at the fastest rate in eight years. Robust economic growth is also being
accompanied by low inflation. As a testament to the United Kingdom's relative
success, UK 10-year bond yields recently dipped below German 10-year bond yields
for the first time in a generation.
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 Index Series MSCI United Kingdom Index
-------------------------------- -------------------------
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
02/29/00 18,007 18,552
Past performance is not predictive of future performance
Value
February 29, 2000
-----------------
United Kingdom WEBS Index Series $18,007*
MSCI United Kingdom Index $18,552
AVERAGE ANNUAL TOTAL RETURN
ONE SINCE
YEAR INCEPTION
------- ---------
United Kingdom WEBS Index Series (3.09)% 15.96%
MSCI United Kingdom Index (2.21)% 16.83%
- ------------------
* 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 MSCI Index is unmanaged, does not incur expenses and is not
available for investment.
20
<PAGE>
FEBRUARY 29, 2000
PORTFOLIO OF INVESTMENTS (Unaudited) WEBS INDEX FUND, INC.
- --------------------------------------------------------------------------------
AUSTRALIA WEBS INDEX SERIES
NO. OF
SHARES SECURITY VALUE
------- -------- ------------
COMMON STOCK - BASKET 99.68%
APPLIANCES & HOUSEHOLD
DURABLES 0.36%
165,300 Email Limited $ 209,146
------------
BANKING 10.92%
275,500 National Australia Bank Limited 3,621,139
429,519 Westpac Banking Corporation
Limited 2,743,630
------------
6,364,769
------------
BEVERAGES & TOBACCO 3.65%
298,700 Coca-Cola Amatil Limited 592,581
583,625 Foster's Brewing Group Limited 1,533,502
------------
2,126,083
------------
BROADCASTING & PUBLISHING 24.07%
504,600 News Corporation Limited 7,355,768
533,600 News Corporation Limited - Preferred 6,678,299
------------
14,034,067
------------
BUILDING MATERIALS &
COMPONENTS 3.56%
242,150 Boral Limited 346,537
400,200 CSR Limited 872,600
188,500 James Hardie Industries Limited 422,585
163,589 Pioneer International Limited 436,067
------------
2,077,789
------------
BUSINESS & PUBLIC SERVICES 3.04%
70,644 Brambles Industries Limited 1,774,632
------------
CHEMICALS 0.84%
118,900 Orica Limited 486,369
------------
CONSTRUCTION & HOUSING 0.26%
52,200 Leighton Holdings Limited 152,291
------------
ENERGY SOURCES 6.02%
301,600 Broken Hill Proprietary Company
Limited 2,980,926
226,200 Santos Limited 532,110
------------
3,513,036
------------
FINANCIAL SERVICES 2.85%
342,519 Colonial Limited 1,300,118
76,908 Suncorp-Metway Limited 364,669
------------
1,664,787
------------
FOOD & HOUSEHOLD PRODUCTS 0.61%
495,900 Goodman Fielder Limited 356,361
------------
FOREST PRODUCTS & PAPER 1.52%
240,700 Amcor Limited 887,028
------------
GOLD MINES 1.01%
116,000 Newcrest Mining Limited* 309,925
522,000 Normandy Mining Limited 278,933
------------
588,858
------------
HEALTH & PERSONAL CARE 1.04%
45,269 CSL Limited 606,132
------------
NO. OF
SHARES SECURITY VALUE
------- -------- ------------
INSURANCE 4.28%
190,327 AMP Limited $ 1,729,051
169,078 QBE Insurance Group Limited 768,473
------------
2,497,524
------------
LEISURE & TOURISM 1.48%
145,000 TABCORP Holdings Limited 863,872
------------
MERCHANDISING 3.71%
295,742 Coles Myer Limited 1,238,817
301,455 Woolworths Limited 923,917
------------
2,162,734
------------
METALS - NON FERROUS 5.45%
620,600 M.I.M. Holdings Limited 392,608
310,300 North Limited 524,112
92,800 Rio Tinto Limited 1,328,048
247,689 WMC Limited 931,039
------------
3,175,807
------------
MULTI-INDUSTRY 3.05%
110,200 Howard Smith Limited 558,400
400,200 Pacific Dunlop Limited 395,743
304,500 Southcorp Limited 826,646
------------
1,780,789
------------
REAL ESTATE 6.97%
374,100 General Property Trust 588,217
162,400 Lend Lease Corporation Limited 2,134,566
281,300 Stockland Trust Group 578,794
401,969 Westfield Trust 760,419
------------
4,061,996
------------
TELECOMMUNICATIONS 14.25%
1,770,856 Telstra Corporation Limited 8,311,896
------------
UTILITIES - ELECTRICAL & GAS 0.74%
87,000 Australian Gas Light Company
Limited 430,155
------------
TOTAL COMMON STOCK - BASKET
(Cost $58,162,603) 58,126,121
------------
COMMON STOCK -
NON-BASKET 0.32%
ENERGY SOURCES 0.32%
242,150 Origin Energy 185,762
------------
TOTAL COMMON STOCK - NON-BASKET
(Cost $461,974) 185,762
------------
TOTAL INVESTMENTS
(COST $58,624,577)(DAGGER) 100.00% $ 58,311,883
======= ============
- --------------
* Non-income producing security.
(DAGGER) Aggregate cost for Federal income tax purposes is $58,966,408. The
aggregate gross unrealized appreciation (depreciation) for all securities is
as follows:
Excess of value over tax cost $ 7,664,749
Excess of tax cost over value (8,319,274)
-----------
$ (654,525)
===========
See accompanying notes to financial statements.
21
<PAGE>
FEBRUARY 29, 2000
PORTFOLIO OF INVESTMENTS (Unaudited) WEBS INDEX FUND, INC.
- --------------------------------------------------------------------------------
AUSTRIA WEBS INDEX SERIES
NO. OF
SHARES SECURITY VALUE
------- -------- ----------
COMMON STOCK - BASKET 100.00%
BANKING 23.19%
48,372 Bank Austria $2,105,074
----------
BEVERAGES & TOBACCO 6.83%
10,320 Austria Tabakwerke 411,353
5,400 BBAG Oesterreichische Brau
Beteiligungs 208,484
----------
619,837
----------
BUILDING MATERIALS &
COMPONENTS 4.55%
22,356 Wienerberger-Baustoffindustrie 413,267
----------
BUSINESS & PUBLIC SERVICES 4.68%
11,796 Flughafen Wien 424,758
----------
CHEMICALS 1.98%
3,300 Lenzing 179,514
----------
CONSTRUCTION & HOUSING 2.15%
3,156 Bau Holding 128,532
1,800 Bau Holding Vorzug 66,722
----------
195,254
----------
ELECTRONIC COMPONENTS,
INSTRUMENTS 1.95%
3,984 Austria Mikro Systeme
International* 177,213
----------
ENERGY SOURCES 9.67%
11,220 OMV 878,358
----------
INSURANCE 4.85%
2,832 Generali Holding Vienna 440,325
----------
NO. OF
SHARES SECURITY VALUE
------- -------- ----------
MACHINERY & ENGINEERING 8.97%
1,284 BWT $ 404,248
6,936 VA Technologie 410,027
----------
814,275
----------
METALS - STEEL 3.29%
8,028 Boehler-Uddeholm 299,048
----------
MISCELLANEOUS MATERIALS &
COMMODITIES 7.49%
6,600 Mayr-Melnhof Karton 362,713
11,700 RHI 316,877
----------
679,590
----------
TRANSPORTATION - AIRLINES 3.87%
22,380 Austrian Airlines 351,223
----------
UTILITIES - ELECTRICAL & GAS 16.53%
12,720 Oesterreichische
Elektrizitaetswirtschafts -
Class A* 1,500,231
----------
TOTAL COMMON STOCK - BASKET
(Cost $11,189,217) 9,077,967
----------
TOTAL INVESTMENTS
(COST $11,189,217)(DAGGER) 100.00% $9,077,967
======= ==========
- --------------
* Non-income producing security.
(DAGGER) Aggregate cost for Federal income tax purposes is $11,626,385. The
aggregate gross unrealized appreciation (depreciation) for all securities is
as follows:
Excess of value over tax cost $ 198,186
Excess of tax cost over value (2,746,604)
-----------
$(2,548,418)
===========
See accompanying notes to financial statements.
22
<PAGE>
FEBRUARY 29, 2000
PORTFOLIO OF INVESTMENTS (Unaudited) WEBS INDEX FUND, INC.
- --------------------------------------------------------------------------------
BELGIUM WEBS INDEX SERIES
NO. OF
SHARES SECURITY VALUE
------- -------- -----------
COMMON STOCK - BASKET 100.00%
AUTOMOBILES 4.57%
1,638 D'Ieteren NV $ 473,119
-----------
BANKING 12.47%
1,575 Dexia 214,572
28,182 KBC Bancassurance Holding 1,077,202
-----------
1,291,774
-----------
BUSINESS & PUBLIC SERVICES 1.47%
4,200 Gevaert NV 152,449
-----------
CHEMICALS 4.79%
7,119 Solvay SA 495,555
-----------
ELECTRONIC COMPONENTS,
INSTRUMENTS 4.05%
3,444 Barco NV 419,458
-----------
ENERGY SOURCES 1.51%
1,239 Electrafina SA 156,748
-----------
FINANCIAL SERVICES 2.31%
6,300 Algmene Maatschappij voor
Nijverheidskredit NV (Almanij) 238,986
-----------
HEALTH & PERSONAL CARE 4.85%
14,700 UCB SA 501,728
-----------
INDUSTRIAL COMPONENTS 4.25%
9,975 Bekaert NV 440,339
-----------
INSURANCE 23.06%
95,382 Fortis B 2,387,672
-----------
NO. OF
SHARES SECURITY VALUE
------- -------- -----------
MERCHANDISING 9.56%
11,361 Colruyt NV $ 459,410
9,282 Delhaize-Le Lion SA 530,839
-----------
990,249
-----------
METALS - NON FERROUS 2.05%
6,489 Union Miniere SA 212,418
-----------
MISCELLANEOUS MATERIALS &
COMMODITIES 1.74%
2,667 Glaverbel SA 179,745
-----------
MULTI-INDUSTRY 7.00%
3,990 Compagnie Benelux Paribas SA
(Cobepa) 214,359
2,352 Groupe Bruxelles Lambert SA 510,192
-----------
724,551
-----------
TRANSPORTATION-SHIPPING 1.36%
3,255 Compagnie Maritime Belge SA
(CMB) 141,026
-----------
UTILITIES - ELECTRICAL & GAS 14.96%
5,733 Electrabel 1,549,385
-----------
TOTAL COMMON STOCK - BASKET
(Cost $12,684,063) 10,355,202
-----------
TOTAL INVESTMENTS
(COST $12,684,063)(DAGGER) 100.00% $10,355,202
======= ===========
- --------------
(DAGGER) Aggregate cost for Federal income tax purposes is $13,374,713. The
aggregate gross unrealized appreciation (depreciation) for all securities is
as follows:
Excess of value over tax cost $ 83,749
Excess of tax cost over value (3,103,260)
-----------
$(3,019,511)
===========
See accompanying notes to financial statements.
23
<PAGE>
FEBRUARY 29, 2000
PORTFOLIO OF INVESTMENTS (Unaudited) WEBS INDEX FUND, INC.
- --------------------------------------------------------------------------------
CANADA WEBS INDEX SERIES
NO. OF
SHARES SECURITY VALUE
------- -------- -----------
COMMON STOCK - BASKET 99.95%
AEROSPACE & MILITARY TECHNOLOGY 4.47%
30,000 Bombardier Incorporated - Class B $ 601,654
800 Spar Areospace Limited 3,722
-----------
605,376
-----------
BANKING 9.93%
2,496 Bank of Montreal 76,377
23,096 Bank of Nova Scotia 444,093
26,400 Canadian Imperial Bank of
Commerce 643,170
6,400 National Bank of Canada 87,112
2,200 Royal Bank of Canada 94,383
-----------
1,345,135
-----------
BEVERAGES & TOBACCO 5.79%
9,496 Molson Company Limited - Class A 159,357
11,136 Seagram Company Limited 625,105
-----------
784,462
-----------
BROADCASTING & PUBLISHING 7.90%
2,400 Quebecor Incorporated - Class B 87,498
8,000 Rogers Communications
Incorporated - Class B* 271,813
19,840 Thomson Corporation 711,013
-----------
1,070,324
-----------
BUSINESS & PUBLIC SERVICES 0.65%
3,200 Extendicare Incorporated -
Class A* 6,219
20,800 Laidlaw Incorporated 63,504
4,000 Moore Corporation Limited* 18,194
-----------
87,917
-----------
CHEMICALS 2.05%
17,696 Agrium Incorporated 153,666
7,200 Methanex Corporation* 15,531
2,400 Potash Corporation of
Saskatchewan Incorporated 109,166
-----------
278,363
-----------
ELECTRICAL & ELECTRONICS 26.50%
11,080 Newbridge Networks Corporation* 384,478
29,000 Nortel Networks Corporation 3,207,788
-----------
3,592,266
-----------
ENERGY SOURCES 5.51%
7,496 Alberta Energy Company Limited 203,544
4,000 Anderson Exploration Limited* 48,243
3,200 Canadian Natural Resources
Limited* 68,367
600 Canadian Occidental Petroleum
Limited 11,123
800 Enbridge Incorporated 14,611
8,000 Gulf Canada Resources Limited* 26,244
8,000 Imperial Oil Limited 148,863
4,000 Petro-Canada 56,237
800 Ranger Oil Limited* 2,839
4,000 Renaissance Energy Limited* 32,529
3,200 Suncor Energy Incorporated 121,737
496 Talisman Energy Incorporated* 12,819
-----------
747,156
-----------
NO. OF
SHARES SECURITY VALUE
------- -------- -----------
FINANCIAL SERVICES 3.96%
37,096 Power Corporation of Canada $ 536,882
-----------
FOREST PRODUCTS & PAPER 0.96%
7,200 Abitibi Consolidated Incorporated 63,515
5,600 Domtar Incorporated 65,996
-----------
129,511
-----------
GOLD MINES 0.07%
600 Barrick Gold Corporation 9,779
-----------
HEALTH & PERSONAL CARE 1.79%
8,000 MDS Incorporated - Class B 243,143
-----------
INDUSTRIAL COMPONENTS 1.58%
5,296 Magna International
Incorporated - Class A 213,519
-----------
INSURANCE 1.73%
2,000 Fairfax Financial Holdings Limited* 234,321
-----------
MACHINERY & ENGINEERING 2.66%
19,200 United Dominion Industries Limited 360,579
-----------
MERCHANDISING 2.80%
12,400 Canadian Tire Corporation -
Class A 167,926
4,800 George Weston Limited 170,200
2,400 Hudson's Bay Company 22,743
1,600 Sobeys Canada Incorporated 18,746
-----------
379,615
-----------
METALS - NON FERROUS 4.83%
8,000 Alcan Aluminium Limited 262,715
5,600 Cameco Corporation 68,118
3,200 Cominco Limited 46,313
2,096 Inco Limited* 36,619
31,800 Inco Limited VBN Shares* 172,040
1,200 Noranda Incorporated 12,488
2,400 Rio Algom Limited 25,803
4,000 Teck Corporation - Class B 30,324
-----------
654,420
-----------
METALS - STEEL 2.03%
15,600 Dofasco Incorporated 258,029
3,200 Stelco Incorporated Class A 17,092
-----------
275,121
-----------
MISCELLANEOUS MATERIALS
& COMMODITIES 0.12%
2,400 CCL Industries Incorporated - Class B 16,871
-----------
MULTI-INDUSTRY 2.22%
12,000 Canadian Pacific Limited 230,737
6,000 EdperBrascan Corporation - Class A 70,090
-----------
300,827
-----------
TELECOMMUNICATIONS 8.79%
5,640 BCE Incorporated 614,142
21,184 BCT Telus Communications
Incorporated - Class A 577,414
-----------
1,191,556
-----------
TRANSPORTATION - AIRLINES 2.44%
28,000 Air Canada* 330,944
-----------
See accompanying notes to financial statements.
24
<PAGE>
FEBRUARY 29, 2000
PORTFOLIO OF INVESTMENTS (Unaudited) WEBS INDEX FUND, INC.
- --------------------------------------------------------------------------------
CANADA WEBS INDEX SERIES (CONCLUDED)
NO. OF
SHARES SECURITY VALUE
------- -------- -----------
COMMON STOCK - BASKET (CONTINUED)
UTILITIES - ELECTRICAL & GAS 1.17%
6,840 Transalta Corporation $ 65,524
5,160 Transcanada Pipelines Limited 35,206
4,000 Westcoast Energy Incorporated 57,891
-----------
158,621
-----------
TOTAL COMMON STOCK - BASKET
(Cost $10,972,216) 13,546,708
-----------
COMMON STOCK -
NON-BASKET 0.05%
BANKING 0.00%
4 Bank of Montreal 122
4 Bank of Nova Scotia 77
-----------
199
-----------
BEVERAGES & TOBACCO 0.00%
4 Molson Company Limited -
Class A 67
4 Seagram Company Limited 224
-----------
291
-----------
CHEMICALS 0.00%
4 Agrium Incorporated 35
-----------
ENERGY SOURCES 0.00%
4 Alberta Energy Company Limited 109
4 Talisman Energy Incorporated 103
-----------
212
-----------
FINANCIAL SERVICES 0.00%
4 Power Corporation of Canada 58
-----------
NO. OF
SHARES SECURITY VALUE
------- -------- -----------
GOLD MINES 0.00%
4 Placer Dome Incorporated $ 35
-----------
INDUSTRIAL COMPONENTS 0.00%
4 Magna International
Incorporated - Class A 161
-----------
LEISURE & TOURISM 0.05%
1,060 Magna Entertainment 5,917
-----------
METALS - NON FERROUS 0.00%
4 Inco Limited 70
-----------
TELECOMMUNICATIONS 0.00%
4 BCT Telus Communications
Incorporated - Class A 109
-----------
TOTAL COMMON STOCK - NON-BASKET
(Cost $4,549) 7,087
-----------
TOTAL INVESTMENTS
(COST $10,976,765)(DAGGER) 100.00% $13,553,795
======= ===========
- --------------
* Non-income producing security.
(DAGGER) Aggregate cost for Federal income tax purposes is $10,976,765. The
aggregate gross unrealized appreciation (depreciation) for all securities is
as follows:
Excess of value over tax cost $3,550,321
Excess of tax cost over value (973,291)
----------
$2,577,030
==========
See accompanying notes to financial statements.
25
<PAGE>
FEBRUARY 29, 2000
PORTFOLIO OF INVESTMENTS (Unaudited) WEBS INDEX FUND, INC.
- --------------------------------------------------------------------------------
FRANCE WEBS INDEX SERIES
NO. OF
SHARES SECURITY VALUE
------- -------- -----------
COMMON STOCK - BASKET 99.99%
AEROSPACE & MILITARY TECHNOLOGY 0.63%
15,011 Thomson CSF $ 592,555
-----------
AUTOMOBILES 0.84%
3,808 PSA Peugeot Citroen 784,962
-----------
BANKING 5.07%
35,122 Banque National Paris 2,772,861
9,486 Societe Generale - Class A 1,966,356
-----------
4,739,217
-----------
BEVERAGES & TOBACCO 0.42%
7,803 Pernod Ricard 394,417
-----------
BROADCASTING & PUBLISHING 3.37%
11,186 Canal Plus 3,155,567
-----------
BUILDING MATERIALS &
COMPONENTS 1.93%
7,871 Compagnie de Saint Gobain 1,095,047
9,469 Lafarge SA 706,547
-----------
1,801,594
-----------
BUSINESS & PUBLIC SERVICES 12.93%
6,018 Cap Gemini SA 1,657,117
6,800 Dassault Systemes SA 746,361
2,992 Sodexho Alliance SA 400,416
17,255 Suez Lyonnaise des Eaux 2,840,835
54,842 Vivendi SA 6,441,812
-----------
12,086,541
-----------
CHEMICALS 1.17%
8,075 Air Liquide 1,089,998
-----------
CONSTRUCTION & HOUSING 2.51%
2,618 Bouygues SA 2,180,322
2,125 Groupe GTM 162,653
-----------
2,342,975
-----------
ELECTRICAL & ELECTRONICS 6.62%
17,969 Alcatel 4,207,484
952 Sagem SA 1,072,402
14,178 Schneider Electric SA 914,586
-----------
6,194,472
-----------
ELECTRONIC COMPONENTS,
INSTRUMENTS 5.53%
26,095 STMicroelectronics NV* 5,175,585
-----------
ENERGY EQUIPMENT & SERVICES 0.19%
1,530 Coflexip SA 135,818
680 Compagnie Generale de
Geophysique SA* 40,264
-----------
176,082
-----------
ENERGY SOURCES 9.50%
67,116 Total Fina SA - Class B 8,885,129
-----------
FINANCIAL SERVICES 0.36%
1,887 CPR SA 98,107
510 Societe Eurafrance SA 238,639
-----------
336,746
-----------
FOOD & HOUSEHOLD PRODUCTS 1.71%
3,230 Eridania Beghin-Say SA 271,178
6,613 Groupe Danone 1,329,425
-----------
1,600,603
-----------
NO. OF
SHARES SECURITY VALUE
------- -------- -----------
HEALTH & PERSONAL CARE 11.07%
70,040 Aventis SA $ 3,574,020
1,309 Essilor International SA 335,240
6,205 L'OREAL 4,122,169
60,350 Sanofi-Synthelabo SA 2,323,612
-----------
10,355,041
-----------
INDUSTRIAL COMPONENTS 0.81%
13,073 Michelin - Class B 408,185
7,208 Valeo SA 350,462
-----------
758,647
-----------
INSURANCE 4.39%
32,640 AXA 4,101,055
-----------
LEISURE & TOURISM 0.85%
16,405 Accor 597,039
1,751 Club Mediterranee SA* 201,292
-----------
798,331
-----------
MACHINERY & ENGINEERING 0.52%
1,836 Compagnie Francaise d'Etudes de
Construction SA (Technip) 200,810
3,536 Sidel SA 289,378
-----------
490,188
-----------
MERCHANDISING 7.77%
31,195 Carrefour 4,730,429
5,100 Casino Guichard Perrachon SA 453,463
10,336 Pinault-Printemps-Redoute SA 2,080,853
-----------
7,264,745
-----------
METALS - NON FERROUS 0.16%
2,550 Pechiney SA - Class A 148,781
-----------
METALS - STEEL 0.38%
24,259 Usinor SA 353,851
-----------
MISCELLANEOUS MATERIALS &
COMMODITIES 0.22%
1,700 Imersys 201,321
-----------
MULTI-INDUSTRY 1.29%
12,784 Lagardere S.C.A. 1,202,531
-----------
REAL ESTATE 0.40%
2,295 Simco SA 172,350
1,581 Union du Credit-Bail Immobilier 199,558
-----------
371,908
-----------
RECREATION - OTHER CONSUMER
GOODS 3.78%
8,857 LVMH (Louis Vuitton Moet
Hennessy) 3,287,350
5,661 Societe BIC SA 247,176
-----------
3,534,526
-----------
TELECOMMUNICATIONS 15.57%
90,304 France Telecom SA 14,563,198
-----------
TOTAL COMMON STOCK - BASKET
(Cost $73,204,707) 93,500,566
-----------
COMMON STOCK -
NON-BASKET 0.01%
BANKING 0.01%
14 Societe Generale NB 2,902
-----------
See accompanying notes to financial statements.
26
<PAGE>
FEBRUARY 29, 2000
PORTFOLIO OF INVESTMENTS (Unaudited) WEBS INDEX FUND, INC.
- --------------------------------------------------------------------------------
FRANCE WEBS INDEX SERIES(CONCLUDED)
NO. OF
SHARES SECURITY VALUE
------- -------- -----------
COMMON STOCK -
NON-BASKET (CONTINUED)
BUILDING MATERIALS &
COMPONENTS 0.00%
9,469 Lafarge SA Rights
(expiration date 3/1/00)* $ 274
-----------
FINANCIAL SERVICES 0.00%
6 Societe Eurafrance SA 2,808
-----------
TOTAL COMMON STOCK - NON-BASKET
(Cost $20,427) 5,984
-----------
TOTAL INVESTMENTS
(COST $73,225,134)(DAGGER) 100.00% $93,506,550
======= ===========
- --------------
* Non-income producing security.
(DAGGER) Aggregate cost for Federal income tax purposes is $73,282,514. The
aggregate gross unrealized appreciation (depreciation) for all securities is
as follows:
Excess of value over tax cost $23,252,819
Excess of tax cost over value (3,028,783)
-----------
$20,224,036
===========
See accompanying notes to financial statements.
27
<PAGE>
FEBRUARY 29, 2000
PORTFOLIO OF INVESTMENTS (Unaudited) WEBS INDEX FUND, INC.
- --------------------------------------------------------------------------------
GERMANY WEBS INDEX SERIES
NO. OF
SHARES SECURITY VALUE
------- -------- -----------
COMMON STOCK - BASKET 100.00%
AEROSPACE & MILITARY TECHNOLOGY 0.01%
2,200 Rheinmetall AG $ 21,605
------------
AUTOMOBILES 8.64%
135,300 DaimlerChrysler AG 9,170,762
88,000 Volkswagen AG 3,533,082
130,900 Volkswagen AG - Preferred 2,986,916
------------
15,690,760
------------
BANKING 12.14%
115,500 Deutsche Bank AG 9,719,152
167,200 Dresdner Bank AG 8,016,791
79,200 HypoVereinsbank AG 4,315,952
------------
22,051,895
------------
BEVERAGES & TOBACCO 0.05%
1,100 Brau und Brunnen* 41,357
3,300 Holsten-Brauerei AG 54,045
------------
95,402
------------
BROADCASTING & PUBLISHING 1.20%
22,000 EM. TV & Merchandising AG 2,181,699
------------
BUILDING MATERIALS &
COMPONENTS 0.62%
14,300 Buderus AG 220,288
11,000 Dyckerhoff - Preferred 283,303
10,890 Heidelberger Zement AG 613,365
------------
1,116,956
------------
BUSINESS & PUBLIC SERVICES 7.88%
14,300 Fresenius Medical Care AG 1,005,064
11,000 SAP AG 6,884,002
7,700 SAP AG Vorzug 6,431,247
------------
14,320,313
------------
CHEMICALS 5.94%
113,300 BASF AG 5,165,173
135,300 Bayer AG 5,634,026
------------
10,799,199
------------
CONSTRUCTION & HOUSING 0.24%
8,800 Bilfinger & Berger Bau AG 127,089
13,200 Hochtief AG 317,723
------------
444,812
------------
ELECTRICAL & ELECTRONICS 8.11%
82,500 Siemans AG 14,734,412
------------
FOOD & HOUSEHOLD PRODUCTS 1.59%
36,300 Kamps AG 2,883,338
------------
NO. OF
SHARES SECURITY VALUE
------- -------- ------------
HEALTH & PERSONAL CARE 3.67%
15,400 Beiersdorf AG $ 926,693
13,200 Gehe AG 423,843
31,900 Merck 826,186
37,400 Schering AG 4,497,477
------------
6,674,199
------------
INDUSTRIAL COMPONENTS 0.25%
20,900 Continental AG 344,094
13,200 FAG Kugelfischer Georg
Schaefer AG 110,568
------------
454,662
------------
INSURANCE 10.11%
25,300 Allianz AG 8,822,749
34,100 Muenchener
Rueckversicherung AG 9,547,370
------------
18,370,119
------------
MACHINERY & ENGINEERING 1.03%
8,800 Deutz AG* 43,295
3,300 IWKA AG 54,966
19,800 Linde AG 814,960
22,000 MAN AG 732,881
11,000 MAN AG - Vorzug 220,818
------------
1,866,920
------------
MERCHANDISING 1.60%
6,600 Douglas Holding AG 202,707
25,300 Karstadt Quelle AG 784,353
49,500 Metro AG 1,877,744
2,200 Metro AG Vorzug 48,717
------------
2,913,521
------------
METALS - STEEL 1.27%
95,700 Thyssen AG 2,308,100
------------
MISCELLANEOUS MATERIALS &
COMMODITIES 0.23%
4,400 SGL Carbon AG* 424,054
------------
MULTI-INDUSTRY 2.68%
6,600 Agiv AG 118,193
102,300 Preussag AG 4,747,420
------------
4,865,613
------------
REAL ESTATE 0.58%
30,800 WCM Beteiligungs-und
Grundbesitz AG 1,052,723
------------
RECREATION - OTHER CONSUMER
GOODS 0.26%
8,800 Adidas-Salomon AG 467,688
------------
TELECOMMUNICATIONS 24.06%
522,500 Deutsche Telekom AG 43,716,061
------------
TEXTILES & APPAREL 0.02%
4,400 Salamander AG 36,856
------------
See accompanying notes to financial statements.
28
<PAGE>
FEBRUARY 29, 2000
PORTFOLIO OF INVESTMENTS (Unaudited) WEBS INDEX FUND, INC.
- --------------------------------------------------------------------------------
GERMANY WEBS INDEX SERIES (CONCLUDED)
NO. OF
SHARES SECURITY VALUE
------- -------- -----------
COMMON STOCK - BASKET (CONTINUED)
TRANSPORTATION - AIRLINES 2.26%
183,700 Deutsche Lufthansa AG $ 4,097,983
------------
UTILITIES - ELECTRICAL & GAS 5.56%
90,090 RWE AG 3,009,823
19,250 RWE AG - Preferred 520,801
94,600 VEBA AG 4,226,142
132,000 Viag AG 2,344,797
------------
10,101,563
------------
TOTAL COMMON STOCK - BASKET
(Cost $160,522,364) 181,690,453
------------
COMMON STOCK -
NON-BASKET 0.00%
FOOD & HOUSEHOLD PRODUCTS 0.00%
36,300 Kamps AG Rights (Exp. date 3/10/00)* 13,980
------------
TOTAL COMMON STOCK -
NON-BASKET
(Cost $0) 13,980
------------
TOTAL INVESTMENTS
(COST $160,522,364) 100.00% $181,704,433
======= ============
- --------------
* Non-income producing security.
(DAGGER) Aggregate cost for Federal income tax purposes is $163,357,231. The
aggregate gross unrealized appreciation (depreciation) for all securities is
as follows:
Excess of value over tax cost $ 30,955,540
Excess of tax cost over value (12,608,338)
-------------
$ 18,347,202
=============
See accompanying notes to financial statements.
29
<PAGE>
FEBRUARY 29, 2000
PORTFOLIO OF INVESTMENTS (Unaudited) WEBS INDEX FUND, INC.
- --------------------------------------------------------------------------------
HONG KONG WEBS INDEX SERIES
NO. OF
SHARES SECURITY VALUE
------- -------- -----------
COMMON STOCK - BASKET 100.00%
AEROSPACE & MILITARY TECHNOLOGY 0.65%
417,600 Hong Kong Aircraft Engineering
Company Limited $ 571,445
-----------
BANKING 9.70%
1,078,800 Bank Of East Asia Limited 2,536,624
461,100 Hang Seng Bank Limited 4,162,034
487,200 Wing Lung Bank 1,746,528
-----------
8,445,186
-----------
BROADCASTING & PUBLISHING 6.97%
4,350,000 Oriental Press Group* 1,648,828
1,566,000 South China Morning Post
Holdings Limited 1,559,400
348,000 Television Broadcasts Limited 2,861,695
-----------
6,069,923
-----------
ELECTRICAL & ELECTRONICS 3.29%
435,000 Johnson Electric Holdings Limited 2,864,490
-----------
ELECTRONIC COMPONENTS,
INSTRUMENTS 0.66%
3,045,000 Elec & Eltek International
Holdings Limited 571,221
-----------
LEISURE & TOURISM 1.37%
1,609,500 Hong Kong & Shanghai Hotels
Limited* 708,297
870,000 Regal Hotels International Limited* 63,717
522,000 Shangri-La Asia Limited 419,194
-----------
1,191,208
-----------
MERCHANDISING 1.23%
957,000 Giordano International Limited 1,069,782
-----------
MISCELLANEOUS MATERIALS &
COMMODITIES 0.87%
348,000 Varitronix International Limited 760,138
-----------
MULTI-INDUSTRY 27.23%
435,000 Hopewell Holdings Limited 227,762
1,218,000 Hutchison Whampoa Limited 19,092,872
913,500 Swire Pacific Limited - Class A 4,378,058
-----------
23,698,692
-----------
REAL ESTATE 22.44%
348,000 Cheung Kong Holdings Limited 4,627,897
3,828,000 Chinese Estates Holdings Limited* 649,247
1,305,000 Hang Lung Development Company
Limited 1,014,449
NO. OF
SHARES SECURITY VALUE
------- -------- -----------
REAL ESTATE (CONTINUED)
435,000 Henderson Land Development
Co., Ltd. $ 1,850,041
870,000 Hysan Development Company
Limited 905,458
174,000 Miramar Hotel & Investment
Limited 134,142
1,479,000 New World Development
Company Limited 2,128,386
696,000 Sun Hung Kai Properties Limited 6,282,315
1,131,000 Wharf Holdings Limited 1,940,028
-----------
19,531,963
-----------
TELECOMMUNICATIONS 15.60%
4,071,600 Cable & Wireless HKT Limited 13,575,836
-----------
TRANSPORTATION - AIRLINES 2.50%
1,566,000 Cathay Pacific Airways Limited 2,173,100
-----------
TRANSPORTATION - SHIPPING 0.35%
1,914,000 Shun Tak Holdings Limited 302,490
-----------
UTILITIES - ELECTRICAL & GAS 7.14%
739,500 CLP Holdings Limited 3,268,592
2,523,000 Hong Kong & China Gas Company
Limited 2,950,005
-----------
6,218,597
-----------
TOTAL COMMON STOCK - BASKET
(Cost $58,861,138) 87,044,071
-----------
COMMON STOCK -
NON-BASKET 0.00%
FINANCIAL SERVICES 0.00%
276,000 Peregrine Investment Holdings
Limited*/** --
-----------
TOTAL COMMON STOCK - NON-BASKET
(Cost $397,590) --
-----------
TOTAL INVESTMENTS
(COST $59,258,728)(DAGGER) 100.00% $87,044,071
======= ===========
- --------------
* Non-income producing security.
** Fair valued security.
(DAGGER) Aggregate cost for Federal income tax purposes is $62,277,172. The
aggregate gross unrealized appreciation (depreciation) for all securities is
as follows:
Excess of value over tax cost $27,659,273
Excess of tax cost over value (2,892,374)
-----------
$24,766,899
===========
See accompanying notes to financial statements.
30
<PAGE>
FEBRUARY 29, 2000
PORTFOLIO OF INVESTMENTS (Unaudited) WEBS INDEX FUND, INC.
- --------------------------------------------------------------------------------
ITALY WEBS INDEX SERIES
NO. OF
SHARES SECURITY VALUE
------- -------- -----------
COMMON STOCK - BASKET 99.78%
AUTOMOBILES 3.72%
16,000 Fiat Risp SpA $ 231,071
61,456 Fiat SpA 1,874,496
16,000 Fiat SpA-Pfd 269,968
-----------
2,375,535
-----------
BANKING 17.77%
42,448 Banca Popolare di Milano SpA 313,709
1,000,000 Banco di Roma SpA 1,135,138
716,928 Banco Intesa SpA 2,629,877
214,784 Banco Intesa SpA Rnc 445,226
204,000 Istituto Bancario San Paolo di
Torino SpA 3,205,226
92,000 Mediobanca SpA 822,529
752,000 Unicredito Italiano SpA 2,793,284
-----------
11,344,989
-----------
BROADCASTING & PUBLISHING 7.33%
32,000 Arnoldo Mondadori Editore SpA 1,335,593
137,296 Mediaset SpA 3,345,684
-----------
4,681,277
-----------
BUILDING MATERIALS &
COMPONENTS 0.18%
80,000 Cementir SpA 117,692
-----------
CONSTRUCTION & HOUSING 0.60%
80,000 Impregilo Ord SpA 53,963
140,064 Sirti SpA 328,907
-----------
382,870
-----------
ENERGY SOURCES 6.35%
864,000 ENI SpA 4,052,807
-----------
FOOD & HOUSEHOLD PRODUCTS 0.38%
219,824 Parmalat Finanziaria SpA 239,160
-----------
FOREST PRODUCTS & PAPER 0.41%
32,000 Burgo Cartiere SpA 188,061
32,000 Reno Medici SpA 72,218
-----------
260,279
-----------
INDUSTRIAL COMPONENTS 1.48%
272,000 Pirelli SpA 696,603
128,000 Pirelli SpA Rnc 246,106
-----------
942,709
-----------
INSURANCE 6.69%
116,640 Assicurazioni Generali SpA 3,201,693
84,000 Riunione Adriatica di Sicurta
SpA 728,279
35,936 Societa Assicuratrice Industriale
(SAI) SpA 294,819
12,000 Societa Assicuratrice Industriale
(SAI) SpA Rnc 47,531
-----------
4,272,322
-----------
LEISURE & TOURISM 1.03%
64,000 Autogrill SpA 658,030
-----------
NO. OF
SHARES SECURITY VALUE
------- -------- -----------
MERCHANDISING 1.31%
80,064 La Rinascente SpA $ 408,167
24,000 La Rinascente SpA - Pfd 83,532
96,000 La Rinascente SpA Rnc 341,893
-----------
833,592
-----------
MULTI-INDUSTRY 2.47%
440,352 Montedison SpA 771,625
209,680 Montedison SpA - Rnc 219,645
480,000 Snia SpA 552,261
40,000 Snia SpA Rnc 35,150
-----------
1,578,681
-----------
RECREATION - OTHER CONSUMER
GOODS 0.89%
61,728 Bulgari SpA 567,453
-----------
TELECOMMUNICATIONS 41.08%
742,048 Olivetti SpA* 2,909,208
504,000 Telecom Italia SpA 8,858,238
100,320 Telecom Italia SpA Rnc 790,089
920,000 Telecom Italia Mobile (T.I.M.) SpA 12,621,389
197,696 Telecom Italia Mobile (T.I.M.) SpA Rnc 1,046,306
-----------
26,225,230
-----------
TEXTILES & APPAREL 1.29%
320,000 Benetton Group SpA 626,666
24,976 Marzotto SpA 197,088
-----------
823,754
-----------
TRANSPORTATION - AIRLINES 0.66%
218,832 Alitalia SpA 423,489
-----------
UTILITIES - ELECTRICAL & GAS 6.14%
748,384 Enel SpA 2,949,900
183,408 Italgas SpA 969,274
-----------
3,919,174
-----------
TOTAL COMMON STOCK - BASKET
(Cost $49,066,294) 63,699,043
-----------
COMMON STOCK -
NON-BASKET 0.22%
CONSTRUCTION & HOUSING 0.22%
60,064 Immsi SpA 142,203
-----------
MULTI-INDUSTRY 0.00%
9 Montedison SpA 16
-----------
TOTAL COMMON STOCK - NON-BASKET
(Cost $56,610) 142,219
-----------
TOTAL INVESTMENTS
(COST $49,122,904)(DAGGER) 100.00% $63,841,262
======= ===========
- --------------
* Non-income producing security.
(DAGGER) Aggregate cost for Federal income tax purposes is $49,982,526. The
aggregate gross unrealized appreciation (depreciation) for all securities is
as follows:
Excess of value over tax cost $18,550,162
Excess of tax cost over value (4,691,426)
-----------
$13,858,736
===========
See accompanying notes to financial statements.
31
<PAGE>
FEBRUARY 29, 2000
PORTFOLIO OF INVESTMENTS (Unaudited) WEBS INDEX FUND, INC.
- --------------------------------------------------------------------------------
JAPAN WEBS INDEX SERIES
NO. OF
SHARES SECURITY VALUE
------- -------- -----------
COMMON STOCK - BASKET 99.99%
APPLIANCES & HOUSEHOLD
DURABLES 8.55%
98,000 Brother Industries Limited $ 209,640
686,000 Matsushita Electric Industrial
Company Limited 19,982,704
98,000 Pioneer Corporation 3,113,377
784,000 Sanyo Electric Company Limited 3,197,233
392,000 Sharp Corporation 8,207,182
137,200 Sony Corporation 40,589,868
98,000 Takara Standard Company Limited 357,726
------------
75,657,730
------------
AUTOMOBILES 7.43%
294,000 Honda Motor Company Limited 9,634,518
1,372,000 Nissan Motor Company Limited* 5,183,014
1,274,000 Toyota Motor Corporation 50,911,292
------------
65,728,824
------------
BANKING 9.08%
882,000 Asahi Bank Limited 3,733,376
196,000 Ashikaga Bank Limited* 356,834
294,000 Bank of Fukuoka Limited 1,640,544
1,666,000 Bank of Tokyo-Mitsubishi Limited 20,397,524
490,000 Bank of Yokohama Limited 1,748,487
588,000 Daiwa Bank Limited 1,461,235
1,176,000 Fuji Bank Limited 9,163,497
196,000 Gunma Bank Limited 1,075,855
294,000 Hokuriku Bank Limited* 607,510
882,000 Industrial Bank of Japan Limited 6,896,709
392,000 Joyo Bank Limited 1,363,106
490,000 Mitsubishi Trust & Banking
Corporation 3,345,319
392,000 Mitsui Trust & Banking Company
Limited 606,618
1,372,000 Sakura Bank Limited 7,830,722
196,000 Seventy-Seven Bank Limited 1,448,746
294,000 Shizuoka Bank Limited 2,336,371
1,078,000 Sumitomo Bank Limited 12,727,377
784,000 Tokai Bank Limited 3,589,750
------------
80,329,580
------------
BEVERAGES & TOBACCO 1.61%
196,000 Asahi Breweries Limited 1,903,709
6,860 Japan Tobacco Incorporated 4,902,007
392,000 Kirin Brewery Company Limited 4,678,094
98,000 Takara Shuzo Company 2,747,622
------------
14,231,432
------------
BROADCASTING & PUBLISHING 0.50%
98,000 Tokyo Broadcasting System
Incorporated 4,469,346
------------
BUILDING MATERIALS &
COMPONENTS 0.53%
98,000 Inax Corporation 498,675
196,000 Sekisui Chemical Company Limited 613,754
98,000 Sumitomo Forestry Company Limited 579,855
490,000 Taiheiyo Cement Corporation 740,431
98,000 Tostem Corporation 1,351,509
196,000 Toto Limited 952,747
------------
4,736,971
------------
BUSINESS & PUBLIC SERVICES 10.10%
19,600 Benesse Corporation 3,925,174
19,600 CSK Corporation 2,041,090
NO. OF
SHARES SECURITY VALUE
------- -------- -----------
BUSINESS & PUBLIC SERVICES (CONTINUED)
294,000 Dai Nippon Printing Company
Limited $ 4,402,440
9,800 Fuji Soft ABC Incorporated 692,258
98,000 Kokuyo Company Limited 1,066,042
19,600 Konami Company Limited 3,452,369
9,800 Meitec Corporation 281,007
9,800 Oyo Corporation 108,478
98,000 Secom Company 8,778,117
39,200 Softbank Corporation 57,093,441
294,000 Toppan Printing Company Limited 2,898,384
9,800 Trans Cosmos Incorporated 4,567,475
------------
89,306,275
------------
CHEMICALS 2.59%
588,000 Asahi Chemical Industry
Company Limited 3,473,779
98,000 Daicel Chemical Industry Limited 325,611
392,000 Dainippon Ink & Chemicals
Incorporated 1,395,221
98,000 Kaneka Corporation 1,067,826
196,000 Kuraray Company Limited 1,634,300
882,000 Mitsubishi Chemical Corporation 3,034,873
98,000 NOF Corporation 221,237
98,000 Shin-Etsu Chemical Company
Limited 5,307,906
686,000 Sumitomo Chemical Company
Limited 2,591,507
392,000 Teijin Limited 1,537,955
588,000 Toray Industries Incorporated 1,873,379
98,000 Tosoh Corporation 446,042
------------
22,909,636
------------
CONSTRUCTION & HOUSING 1.03%
49,000 Daito Trust Construction
Company Limited 637,841
196,000 Daiwa House Industry
Company Limited 1,339,912
98,000 Fujita Corporation* 44,604
490,000 Kajima Corporation 1,248,919
98,000 Kinden Corporation 607,510
98,000 Kumagai Gumi Company Limited* 50,849
294,000 Obayashi Corporation 834,992
294,000 Sekisui House Limited 2,194,529
490,000 Shimizu Corporation 1,182,013
686,000 Taisei Corporation 1,005,380
------------
9,146,549
------------
DATA PROCESSING & REPRODUCTION 3.59%
294,000 Canon Incorporated 12,230,486
588,000 Fujitsu Limited 19,536,662
------------
31,767,148
------------
ELECTRICAL & ELECTRONICS 5.39%
1,176,000 Hitachi Limited 16,046,825
784,000 Mitsubishi Electric Corporation 6,943,990
588,000 NEC Corporation 13,140,412
98,000 Omron Corporation 2,703,018
1,078,000 Toshiba Corporation 8,802,203
------------
47,636,448
------------
ELECTRONIC COMPONENTS,
INSTRUMENTS 9.11%
29,400 Advantest Corporation 5,331,100
98,000 Alps Electric Company Limited 891,193
88,200 Fanuc Limited 8,590,779
9,800 Hirose Electric Company Limited 1,312,257
See accompanying notes to financial statements.
32
<PAGE>
FEBRUARY 29, 2000
PORTFOLIO OF INVESTMENTS (Unaudited) WEBS INDEX FUND, INC.
- --------------------------------------------------------------------------------
JAPAN WEBS INDEX SERIES (CONTINUED)
NO. OF
SHARES SECURITY VALUE
------- -------- -----------
COMMON STOCK - BASKET (CONTINUED)
ELECTRONIC COMPONENTS,
INSTRUMENTS (CONTINUED)
68,600 Kyocera Corporation $ 11,627,436
98,000 Murata Manufacturing Company Limited 18,662,419
9,800 Nidec Corporation 1,864,458
98,000 Nikon Corporation 3,309,635
98,000 Olympus Optical Company Limited 1,306,905
39,200 Rohm Company Limited 12,721,132
98,000 Tokyo Electron Limited 14,942,424
------------
80,559,738
------------
ENERGY SOURCES 0.35%
686,000 Nippon Mitsubishi Oil Corporation 2,410,414
196,000 Showa Shell Sekiyu K. K. 663,711
------------
3,074,125
------------
FINANCIAL SERVICES 5.31%
49,000 Acom Company Limited 5,200,856
49,000 Credit Saison Company Limited 767,639
490,000 Daiwa Securities Group Incorporated 7,783,442
29,400 Nichiei Company Limited 594,129
98,000 Nippon Shinpan Company 223,021
686,000 Nomura Securities Company Limited 19,358,245
98,000 Orient Corporation 360,402
19,600 Orix Corporation 3,389,923
39,200 Promise Company Limited 2,893,924
49,000 Takefuji Corporation 6,400,710
------------
46,972,291
------------
FOOD & HOUSEHOLD PRODUCTS 1.41%
196,000 Ajinomoto Company Incorporated 2,158,846
196,000 Kao Corporation 5,200,856
196,000 Meiji Seika Kaisha Limited 1,302,444
98,000 Nisshin Flour Milling
Company Limited 688,690
49,000 Nissin Food Products
Company Limited 1,048,200
98,000 Snow Brand Milk Products
Company Limited 411,251
98,000 Yakult Honsha Company Limited 821,610
98,000 Yamazaki Baking Company Limited 817,150
------------
12,449,047
------------
FOREST PRODUCTS & PAPER 0.44%
392,000 Nippon Paper Industries Company 2,023,249
392,000 Oji Paper Company Limited 1,880,515
------------
3,903,764
------------
HEALTH & PERSONAL CARE 4.80%
98,000 Chugai Pharmaceutical Company
Limited 1,498,703
98,000 Daiichi Pharmaceutical Company
Limited 1,271,221
98,000 Eisai Company Limited 2,314,961
196,000 Kanebo Limited* 287,251
196,000 Kyowa Hakko Kogyo Company Limited 2,551,363
196,000 Sankyo Company Limited 4,058,987
98,000 Shionogi & Company Limited 1,400,573
98,000 Shiseido Company Limited 1,179,336
98,000 Taisho Pharmaceutical Company Limited 2,765,464
294,000 Takeda Chemical Industries 16,592,781
98,000 Terumo Corporation 2,551,363
19,600 Uni-Charm Corporation 1,245,351
98,000 Yamanouchi Pharmaceutical
Company Limited 4,683,446
------------
42,400,800
------------
NO. OF
SHARES SECURITY VALUE
------- -------- -----------
INDUSTRIAL COMPONENTS 2.75%
294,000 Bridgestone Corporation $ 6,570,206
294,000 Denso Corporation 5,499,704
98,000 Fujikura Limited 385,381
196,000 Furukawa Electric Company Limited 2,995,621
98,000 Koyo Seiko Company Limited 766,301
98,000 Minebea Company Limited 1,128,488
98,000 NGK Insulators Limited 773,438
98,000 NGK Spark Plug Company Limited 942,042
196,000 NSK Limited 1,355,969
294,000 Sumitomo Electric Industries 3,875,217
------------
24,292,367
------------
INSURANCE 0.64%
294,000 Mitsui Marine & Fire Insurance
Company Limited 1,231,077
196,000 Sumitomo Marine & Fire Insurance
Company Limited 831,423
392,000 Tokio Marine & Fire Insurance
Company Limited 3,579,045
------------
5,641,545
------------
LEISURE & TOURISM 0.52%
19,600 Namco Limited 1,473,724
29,400 Oriental Land Company Limited 3,131,218
------------
4,604,942
------------
MACHINERY & ENGINEERING 1.99%
98,000 Amada Company Limited 661,035
98,000 Chiyoda Corporation* 142,734
98,000 Daikin Industries Limited 1,465,696
98,000 Ebara Corporation 1,291,739
882,000 Ishikawajima-Harima Heavy
Industries Company Limited 899,222
98,000 Japan Steel Works Company Limited* 82,964
490,000 Kawasaki Heavy Industries Limited 512,949
392,000 Komatsu Limited 1,734,213
588,000 Kubota Corporation 1,712,803
98,000 Kurita Water Industries Limited 1,949,206
1,176,000 Mitsubishi Heavy Industries Limited 3,222,211
98,000 Mitsui Engineering & Shipbuilding
Company Limited* 53,525
19,600 SMC Corporation 3,639,707
98,000 Sumitomo Heavy Industries Limited* 206,072
------------
17,574,076
------------
MERCHANDISING 1.70%
39,200 Aoyama Trading Company Limited 570,934
9,800 Autobacs Seven Company Limited 237,295
294,000 Daiei Incorporated 1,033,034
98,000 Hankyu Department Stores 388,057
98,000 Isetan Company Limited
Incorporated 722,589
98,000 Ito-Yokado Company Limited 5,709,344
98,000 Jusco Company Limited 1,380,055
98,000 Marui Company Limited 1,284,602
196,000 Mitsukoshi Limited* 608,402
98,000 Mycal Corporation 355,050
98,000 Seiyu Limited* 178,417
9,800 Shimamura Company Limited 1,185,581
98,000 Takashimaya Company Limited 660,143
98,000 Uny Company Limited 713,668
------------
15,027,171
------------
See accompanying notes to financial statements.
33
<PAGE>
FEBRUARY 29, 2000
PORTFOLIO OF INVESTMENTS (Unaudited) WEBS INDEX FUND, INC.
- --------------------------------------------------------------------------------
JAPAN WEBS INDEX SERIES (CONCLUDED)
NO. OF
SHARES SECURITY VALUE
------- -------- -----------
COMMON STOCK - BASKET (CONTINUED)
METALS - NON FERROUS 0.36%
490,000 Mitsubishi Materials Corporation* $ 1,628,055
196,000 Mitsui Mining & Smelting
Company Limited 1,022,329
98,000 Nippon Light Metal Company Limited 62,446
196,000 Sumitomo Metal Mining Company* 463,884
------------
3,176,714
------------
METALS - STEEL 0.96%
1,176,000 Kawasaki Steel Corporation* 1,648,573
2,842,000 Nippon Steel Corporation 6,001,948
1,470,000 Sumitomo Metal Industries Limited* 802,876
------------
8,453,397
------------
MISCELLANEOUS MATERIALS &
COMMODITIES 1.07%
490,000 Asahi Glass Company Limited 3,345,319
98,000 Nippon Sheet Glass Company
Limited 887,625
98,000 Nitto Denko Corporation 3,818,124
98,000 Toyo Seikan Kaisha Limited 1,280,142
98,000 Ube Industries Limited 138,273
------------
9,469,483
------------
REAL ESTATE 0.66%
392,000 Mitsubishi Estate Company Limited 3,432,743
294,000 Mitsui Fudosan Company Limited 2,360,457
------------
5,793,200
------------
RECREATION - OTHER CONSUMER
GOODS 2.64%
196,000 Citizen Watch Company Limited 1,443,394
196,000 Fuji Photo Film Company 8,617,541
49,000 Nintendo Company Limited 11,017,250
19,600 Sega Enterprises Limited 642,301
49,000 Shimano Incorporated 936,689
98,000 Yamaha Corporation 671,740
------------
23,328,915
------------
TELECOMMUNICATIONS 6.75%
43,120 Nippon Telegraph & Telephone
Corporation 59,662,646
------------
TEXTILES & APPAREL 0.24%
98,000 Onward Kashiyama Company
Limited 946,502
98,000 Renown Incorporated 144,518
9,800 World Company Limited 1,065,149
------------
2,156,169
------------
TRANSPORTATION - AIRLINES 0.21%
784,000 Japan Airlines Company Limited 1,876,947
------------
TRANSPORTATION - ROAD & RAIL 2.79%
784 Central Japan Railway Company 4,810,122
1,470 East Japan Railway Company 6,637,113
NO. OF
SHARES SECURITY VALUE
------- -------- ------------
TRANSPORTATION - ROAD & RAIL (CONTINUED)
588,000 Kinki Nippon Railway Company Limited $ 2,205,234
392,000 Nippon Express Company Limited 2,619,162
686,000 Tobu Railway Company Limited 1,898,357
490,000 Tokyu Corporation 1,324,746
196,000 Yamato Transport Company Limited 5,209,777
------------
24,704,511
------------
TRANSPORTATION - SHIPPING 0.20%
98,000 Kawasaki Kisen Kaisha Limited* 134,705
490,000 Nippon Yusen Kabushiki Kaisha 1,605,753
------------
1,740,458
------------
UTILITIES - ELECTRICAL & GAS 2.65%
411,600 Kansai Electric Power Company
Incorporated 6,032,279
882,000 Osaka Gas Company Limited 1,653,926
254,800 Tohoku Electric Power Company
Incorporated 3,015,247
499,800 Tokyo Electric Power Company 10,919,121
980,000 Tokyo Gas Company Limited 1,802,012
------------
23,422,585
------------
WHOLESALE & INTERNATIONAL TRADE 2.04%
490,000 Itochu Corporation* 2,676,255
588,000 Marubeni Corporation 2,392,572
588,000 Mitsubishi Corporation 4,340,886
686,000 Mitsui & Company Limited 4,246,325
392,000 Sumitomo Corporation 4,346,238
------------
18,002,276
------------
TOTAL COMMON STOCK - BASKET
(Cost $712,669,804) 884,207,106
------------
COMMON STOCK -
NON-BASKET 0.01%
ELECTRONIC COMPONENTS,
INSTRUMENTS 0.01%
352 Tokyo Electron Limited 53,671
------------
ENERGY SOURCES 0.00%
500 Nippon Mitsubishi Oil Corporation 1,757
------------
TOTAL COMMON STOCK - NON-BASKET
(Cost $13,473) 55,428
------------
TOTAL INVESTMENTS
(COST $712,683,277)(DAGGER) 100.00% $884,262,534
====== ============
- --------------
* Non-income producing security.
(DAGGER) Aggregate cost for Federal income tax purposes is $718,714,363. The
aggregate gross unrealized appreciation (depreciation) for all securities is
as follows:
Excess of value over tax cost $236,423,268
Excess of tax cost over value (70,875,097)
------------
$165,548,171
============
See accompanying notes to financial statements.
34
<PAGE>
FEBRUARY 29, 2000
PORTFOLIO OF INVESTMENTS (Unaudited) WEBS INDEX FUND, INC.
- --------------------------------------------------------------------------------
MALAYSIA (FREE) WEBS INDEX SERIES
NO. OF
SHARES SECURITY VALUE
------- -------- ------------
COMMON STOCK - BASKET 99.66%
AUTOMOBILES 4.16%
454,000 Edaran Otomobil Nasional $ 1,911,579
454,000 Oriental Holdings 1,069,289
681,000 Perusahaan Otomobil Nasional 1,397,842
1,589,000 Tan Chong Motor Holdings 748,503
------------
5,127,213
------------
BANKING 18.56%
1,135,000 Commerce Asset Holdings 3,554,342
2,951,000 Malayan Banking 13,279,500
2,043,000 Public Bank 2,768,803
2,043,000 RHB Capital 3,252,671
------------
22,855,316
------------
BEVERAGES & TOBACCO 3.71%
454,000 British American Tobacco 3,345,263
1,135,000 Guinness Anchor 1,224,605
------------
4,569,868
------------
BROADCASTING & PUBLISHING 1.55%
454,000 New Straits Times Press* 1,911,579
------------
BUILDING MATERIALS &
COMPONENTS 1.72%
681,000 Hume Industries (Malaysia) 967,737
908,000 Malayan Cement 334,526
2,043,000 Pan Malaysia Corporation 811,824
------------
2,114,087
------------
CONSTRUCTION & HOUSING 2.94%
227,000 Ekran* 105,137
1,906,800 YTL Corporation 3,512,526
------------
3,617,663
------------
ELECTRICAL & ELECTRONICS 0.64%
681,000 Time Engineering* 792,111
------------
ELECTRONIC COMPONENTS,
INSTRUMENTS 4.68%
454,000 Malaysian Pacific Industries 5,764,605
------------
ENERGY SOURCES 0.66%
681,000 Shell Refining Company 817,200
------------
FINANCIAL SERVICES 3.37%
681,000 AMMB Holdings 2,598,553
1,135,000 MBF Capital* 337,513
908,000 Rashid Hussain* 1,218,632
------------
4,154,698
------------
FOOD & HOUSEHOLD PRODUCTS 2.66%
454,000 Nestle (Malaysia) 2,341,684
681,000 Perlis Plantations 931,895
------------
3,273,579
------------
INDUSTRIAL COMPONENTS 0.39%
908,000 Leader Universal Holdings* 475,505
------------
LEISURE & TOURISM 8.13%
2,951,000 Magnum Corporation 2,593,774
2,043,000 Resorts World 7,419,316
------------
10,013,090
------------
MACHINERY & ENGINEERING 1.17%
681,000 UMW Holdings 1,433,684
------------
METALS - STEEL 0.49%
2,497,000 Amsteel Corporation 607,822
------------
NO. OF
SHARES SECURITY VALUE
------- -------- ------------
MISCELLANEOUS MATERIALS &
COMMODITIES 4.04%
2,043,000 Golden Hope Plantations $ 1,817,195
1,589,000 Highlands & Lowlands 1,024,487
681,000 IOI Corporation 469,532
227,000 Kian Joo Can Factory 391,276
908,000 Kuala Lumpur Kepong 1,278,368
------------
4,980,858
------------
MULTI-INDUSTRY 7.81%
3,178,000 Berjaya Group 815,408
454,000 Land & General* 212,663
1,816,000 Malaysia Mining Corporation 965,347
1,589,000 Multi-Purpose Holdings* 832,134
2,724,000 Sime Darby 3,655,895
1,135,000 United Engineers (Malaysia)* 3,136,184
------------
9,617,631
------------
REAL ESTATE 1.83%
2,043,000 Hong Leong Properties 854,834
1,135,000 Malaysian Resources Corporation* 1,403,816
------------
2,258,650
------------
TELECOMMUNICATIONS 16.44%
2,043,000 Technology Resources Industries 2,930,092
4,086,000 Telekom Malaysia 17,311,737
------------
20,241,829
------------
TRANSPORTATION - AIRLINES 0.59%
681,000 Malaysian Airline System 731,179
------------
TRANSPORTATION - SHIPPING 2.51%
2,043,000 Malaysia International Shipping 3,091,382
------------
UTILITIES - ELECTRICAL & GAS 11.61%
4,313,000 Tenaga Nasional 14,301,000
------------
TOTAL COMMON STOCK - BASKET
(Cost $69,745,288) 122,750,549
------------
COMMON STOCK -
NON-BASKET 0.34%
FINANCIAL SERVICES 0.16%
1,135,000 Idris Hydraulic (Malaysia)*/** 198,625
------------
METALS - STEEL 0.00%
35,944 Silverstone*/** --
------------
MISCELLANEOUS MATERIALS
& COMMODITIES 0.18%
238,350 APM Automotive Holding* 175,626
79,450 Warisan TC Holdings* 48,088
------------
223,714
------------
TOTAL COMMON STOCK - NON-BASKET
(Cost $259,113) 422,339
------------
TOTAL INVESTMENTS
(COST $70,004,401)(DAGGER) 100.00% $123,172,888
====== ============
- --------------
* Non-income producing security.
** Fair valued security.
(DAGGER) Aggregate cost for Federal income tax purposes is $71,994,000. The
aggregate gross unrealized appreciation (depreciation) for all securities is
as follows:
Excess of value over tax cost $53,731,280
Excess of tax cost over value (2,552,392)
-----------
$51,178,888
===========
See accompanying notes to financial statements.
35
<PAGE>
FEBRUARY 29, 2000
PORTFOLIO OF INVESTMENTS (Unaudited) WEBS INDEX FUND, INC.
- --------------------------------------------------------------------------------
MEXICO (FREE) WEBS INDEX SERIES
NO. OF
SHARES SECURITY VALUE
------- -------- ----------
COMMON STOCK - BASKET 100.00%
BANKING 8.54%
15,000 Grupo Financiero Banamex
Accival SA de CV - Series L* $ 58,437
255,000 Grupo Financiero Banamex
Accival SA de CV - Series O* 1,087,336
1,980,000 Grupo Financiero Bancomer SA
de CV - Series O* 976,369
165,000 Grupo Financiero Banorte SA
de CV - Series O* 179,635
-----------
2,301,777
-----------
BEVERAGES & TOBACCO 13.93%
285,000 Fomento Economico Mexicano
SA de CV - Series UBD 1,268,492
222,000 Grupo Continental SA 217,995
690,000 Grupo Modelo SA de CV -
Series C 1,565,002
120,000 Savia SA de CV* 704,451
-----------
3,755,940
-----------
BROADCASTING & PUBLISHING 10.69%
750,000 Grupo Televisa SA - Series CPO* 2,881,844
-----------
BUILDING MATERIALS &
COMPONENTS 6.77%
105,000 Apasco SA de CV 593,980
285,000 Cemex SA de CV - Series CPO 1,231,988
-----------
1,825,968
-----------
CHEMICALS 0.14%
45,000 Cydsa SA de CV 38,425
-----------
CONSTRUCTION & HOUSING 0.55%
30,000 Corporacion GEO SA de CV -
Series B* 73,967
180,000 Empresas ICA Sociedad
Controladora SA de CV 75,312
-----------
149,279
-----------
ENERGY EQUIPMENT & SERVICES 0.77%
15,000 Tubos de Acero de Mexico SA
(TAMSA) 206,372
-----------
FINANCIAL SERVICES 0.72%
1,545,000 Grupo Financiero Probursa
SA de CV - Series B* 194,588
-----------
FOOD & HOUSEHOLD PRODUCTS 3.69%
105,000 Grupo Herdez SA - Series B* 32,501
495,000 Grupo Industrial Bimbo
SA de CV - Series A* 816,811
240,000 Grupo Industrial Maseca
SA de CV - Series B 146,013
-----------
995,325
-----------
NO. OF
SHARES SECURITY VALUE
------- -------- -----------
HEALTH & PERSONAL CARE 4.50%
390,000 Kimberly-Clark de Mexico
SA de CV - Series A $ 1,213,417
-----------
MERCHANDISING 11.34%
465,000 Controladora Comercial
Mexicana SA de CV -
Series UBC 446,686
390,000 Grupo Elektra SA de CV -
Series CPO 470,381
120,000 Wal-Mart de Mexico SA de
CV - Series C* 275,376
780,000 Wal-Mart de Mexico SA de
CV - Series V* 1,864,873
-----------
3,057,316
-----------
METALS - NON FERROUS 5.59%
165,000 Grupo Mexico SA - Series B 818,924
255,000 Industrias Penoles SA - Series CP 687,240
-----------
1,506,164
-----------
MISCELLANEOUS MATERIALS &
COMMODITIES 0.57%
105,000 Vitro SA - Series A 152,418
-----------
MULTI-INDUSTRY 7.55%
150,000 Alfa SA de CV - Series A* 528,338
600,000 Desc SA de CV - Series B* 397,054
285,000 Grupo Carso SA de CV - Series A1* 1,110,311
-----------
2,035,703
-----------
TELECOMMUNICATIONS 24.65%
60,000 Telefonos de Mexico SA -
Series A 194,685
1,965,000 Telefonos de Mexico SA -
Series L 6,449,328
-----------
6,644,013
-----------
TOTAL COMMON STOCK - BASKET
(Cost $20,768,187) 26,958,549
-----------
TOTAL INVESTMENTS
(COST $20,768,187)(DAGGER) 100.00% $26,958,549
====== ===========
- --------------
* Non-income producing security.
(DAGGER) Aggregate cost for Federal income tax purposes is $20,807,396. The
aggregate gross unrealized appreciation (depreciation) for all securities is
as follows:
Excess of value over tax cost $7,596,361
Excess of tax cost over value (1,445,208)
----------
$6,151,153
==========
See accompanying notes to financial statements.
36
<PAGE>
FEBRUARY 29, 2000
PORTFOLIO OF INVESTMENTS (Unaudited) WEBS INDEX FUND, INC.
- --------------------------------------------------------------------------------
NETHERLANDS WEBS INDEX SERIES
NO. OF
SHARES SECURITY VALUE
------- -------- -----------
COMMON STOCK - BASKET 100.00%
APPLIANCES & HOUSEHOLD
DURABLES 9.32%
11,740 Philips Electronics (Kon.) $ 2,173,048
-----------
BANKING 4.94%
55,600 ABN AMRO Holding 1,150,928
-----------
BEVERAGES & TOBACCO 4.98%
23,000 Heineken 1,161,471
-----------
BROADCASTING & PUBLISHING 4.30%
30,960 Elsevier 327,890
800 Verenigde Nederlandse
Uitgeversbedrijven 55,188
17,400 Wolters Kluwer 620,017
-----------
1,003,095
-----------
BUSINESS & PUBLIC SERVICES 9.40%
25,600 Baan Company* 138,027
10,740 Getronics 899,619
4,000 Randstad Holding 172,726
35,600 TNT Post Group 882,254
10,600 Vedior 100,015
-----------
2,192,641
-----------
CHEMICALS 3.28%
18,800 Akzo Nobel 724,205
1,200 DSM 39,363
-----------
763,568
-----------
CONSTRUCTION & HOUSING 1.24%
14,600 Hollandsche Beton Groep 202,418
2,540 IHC Caland 85,593
-----------
288,011
-----------
DATA PROCESSING & REPRODUCTION 1.54%
29,500 Oce 359,292
-----------
ELECTRONIC COMPONENTS,
INSTRUMENTS 4.21%
7,700 ASM Lithography Holding* 980,441
-----------
ENERGY SOURCES 17.20%
76,700 Royal Dutch/Shell Group 4,009,130
-----------
FINANCIAL SERVICES 4.90%
22,600 ING Groep 1,142,794
-----------
NO. OF
SHARES SECURITY VALUE
------- -------- -----------
FOOD & HOUSEHOLD PRODUCTS 5.18%
6,000 Koninklijke Wessanen $ 64,700
25,100 Unilever 1,141,854
-----------
1,206,554
-----------
INSURANCE 7.76%
24,800 Aegon 1,709,620
4,000 Fortis (NL) 100,439
-----------
1,810,059
-----------
MACHINERY & ENGINEERING 0.59%
11,260 Stork (Ver Machine) 138,224
-----------
MERCHANDISING 4.44%
44,600 Ahold (Kon.) 1,035,731
-----------
MULTI-INDUSTRY 0.21%
2,000 Hunter Douglas 48,140
-----------
TELECOMMUNICATIONS 10.69%
19,600 KPN (Kon.) 2,491,893
-----------
TRANSPORTATION - AIRLINES 1.02%
12,740 KLM 237,348
-----------
TRANSPORTATION - ROAD & RAIL 0.38%
3,900 Nedlloyd (Kon.) 89,367
-----------
TRANSPORTATION - SHIPPING 2.20%
21,800 Koninklijke Vopak* 513,181
-----------
WHOLESALE & INTERNATIONAL TRADE 2.22%
7,700 Buhrmann 202,760
18,700 Hagemeyer 314,535
-----------
517,295
-----------
TOTAL COMMON STOCK - BASKET
(Cost $22,981,980) 23,312,211
-----------
TOTAL INVESTMENTS
(COST $22,981,980)(DAGGER) 100.00% $23,312,211
====== ===========
- --------------
* Non-income producing security.
(DAGGER) Aggregate cost for Federal income tax purposes is $23,259,772. The
aggregate gross unrealized appreciation (depreciation) for all securities is
as follows:
Excess of value over tax cost $3,561,910
Excess of tax cost over value (3,509,471)
-----------
$ 52,439
===========
See accompanying notes to financial statements.
37
<PAGE>
FEBRUARY 29, 2000
PORTFOLIO OF INVESTMENTS (Unaudited) WEBS INDEX FUND, INC.
- --------------------------------------------------------------------------------
SINGAPORE (FREE) WEBS INDEX SERIES
NO. OF
SHARES SECURITY VALUE
------- -------- ------------
COMMON STOCK - BASKET 98.14%
AUTOMOBILES 0.60%
274,000 Cycle & Carriage Limited $ 604,049
------------
BANKING 36.42%
1,644,000 DBS Group Holdings Limited 20,315,136
1,308,350 Oversea-Chinese Banking
Corporation Limited 8,273,490
822,000 Overseas Union Bank Limited 3,648,141
723,360 United Overseas Bank Limited 4,574,244
------------
36,811,011
------------
BEVERAGES & TOBACCO 0.75%
274,000 Fraser & Neave Limited 763,010
------------
BROADCASTING & PUBLISHING 5.19%
274,000 Singapore Press Holdings Limited 5,245,692
------------
BUSINESS & PUBLIC SERVICES 1.12%
411,000 Parkway Holdings Limited 1,134,977
------------
ELECTRONIC COMPONENTS,
INSTRUMENTS 8.94%
226,050 Creative Technology Limited 4,917,837
274,000 Venture Manufacturing
(Singapore) Limited 4,117,074
------------
9,034,911
------------
LEISURE & TOURISM 0.59%
274,000 Hotel Properties Limited 241,620
137,000 Overseas Union Enterprise Limited 351,302
------------
592,922
------------
MACHINERY & ENGINEERING 4.81%
3,973,000 Singapore Technologies
Engineering Limited 4,863,393
------------
MERCHANDISING 0.39%
137,000 Robinson & Company Limited 394,222
------------
METALS - STEEL 1.34%
685,000 Natsteel Limited 1,359,111
------------
MULTI-INDUSTRY 6.62%
726,100 Haw Par Corporation Limited 1,238,460
685,000 Keppel Corporation Limited 1,533,968
3,288,000 Sembcorp Industries Limited 3,071,115
808,300 Straits Trading Company Limited 844,080
------------
6,687,623
------------
NO. OF
SHARES SECURITY VALUE
------- -------- ------------
REAL ESTATE 9.12%
1,096,000 City Developments Limited $ 4,450,891
2,055,000 DBS Land Limited 2,718,222
2,055,000 United Industrial Corporation
Limited 894,152
1,644,000 United Overseas Land Limited 1,154,052
------------
9,217,317
------------
TELECOMMUNICATIONS 10.13%
6,302,000 Singapore Telecommunications
Limited 10,237,048
------------
TRANSPORTATION - AIRLINES 10.07%
1,096,000 Singapore Airlines Limited 10,173,464
------------
TRANSPORTATION - ROAD & RAIL 0.61%
1,370,000 Comfort Group Limited 611,997
------------
TRANSPORTATION - SHIPPING 1.44%
1,781,000 Neptune Orient Lines Limited* 1,456,872
------------
TOTAL COMMON STOCK - BASKET
(Cost $86,145,247) 99,187,619
------------
COMMON STOCK -
NON-BASKET 1.86%
BANKING 1.64%
133,854 DBS Group Holdings Limited 1,654,052
------------
TELECOMMUNICATIONS 0.22%
140,994 Singapore Telecommunications
Limited 229,032
------------
TOTAL COMMON STOCK - NON-BASKET
(Cost $1,187,864) 1,883,084
------------
TOTAL INVESTMENTS
(COST $87,333,111)(DAGGER) 100.00% $101,070,703
====== ============
- --------------
* Non-income producing security.
(DAGGER) Aggregate cost for Federal income tax purposes is $90,030,260. The
aggregate gross unrealized appreciation (depreciation) for all securities is
as follows:
Excess of value over tax cost $13,873,004
Excess of tax cost over value (2,832,561)
-----------
$11,040,443
===========
See accompanying notes to financial statements.
38
<PAGE>
FEBRUARY 29, 2000
PORTFOLIO OF INVESTMENTS (Unaudited) WEBS INDEX FUND, INC.
- --------------------------------------------------------------------------------
SPAIN WEBS INDEX SERIES
NO. OF
SHARES SECURITY VALUE
------- -------- -----------
COMMON STOCK - BASKET 99.98%
BANKING 22.65%
339,000 Banco Bilbao Vizcaya SA $ 4,928,464
431,620 Banco Santander Central
Hispano SA 4,529,633
-----------
9,458,097
-----------
BEVERAGES & TOBACCO 1.44%
9,780 El Aguila SA* 80,037
46,820 Altadis SA 522,907
-----------
602,944
-----------
BUILDING MATERIALS &
COMPONENTS 0.59%
35,040 Uralita SA 244,252
-----------
BUSINESS & PUBLIC SERVICES 3.47%
36,400 Aguas de Barcelona 533,398
61,780 Autopistas Concesionaria
Espanola SA 506,784
38,780 Prosegur Cia de Seguridad SA 410,710
-----------
1,450,892
-----------
CHEMICALS 1.18%
1,066,060 Ercros SA 492,672
-----------
CONSTRUCTION & HOUSING 2.80%
10,000 Actividades de Construccion y
Servicios SA 210,371
27,160 Fomento de Construcciones y
Contratas SA 474,615
55,300 Groupo Dragados 485,573
-----------
1,170,559
-----------
ENERGY SOURCES 4.97%
109,800 Repsol SA 2,077,303
-----------
FOOD & HOUSEHOLD PRODUCTS 1.22%
12,560 Azucarera Ebro Agricolas SA 153,578
230,640 Puleva SA* 355,295
-----------
508,873
-----------
FOREST PRODUCTS & PAPER 0.40%
8,000 Grupo Empresarial Ence SA 165,524
-----------
HEALTH & PERSONAL CARE 1.53%
53,020 Fabrica Espanola de Productos
y Farmaceuticos SA 639,625
-----------
INSURANCE 4.77%
145,200 Corporacion Mapfre 1,993,522
-----------
LEISURE & TOURISM 1.66%
40,000 Sol Melia SA* 465,994
40,000 TelePizza SA* 227,605
-----------
693,599
-----------
NO. OF
SHARES SECURITY VALUE
------- -------- -----------
MACHINERY & ENGINEERING 0.82%
39,600 Zardoya Otis SA $ 341,616
-----------
MERCHANDISING 0.71%
13,780 Cortefiel SA 294,535
-----------
METALS - NON FERROUS 2.53%
94,000 Asturiana de Zinc* 1,057,980
-----------
METALS - STEEL 2.03%
23,500 Acerinox SA 846,203
-----------
MISCELLANEOUS MATERIALS &
COMMODITIES 0.46%
25,000 Viscofan 193,522
-----------
MULTI-INDUSTRY 2.51%
33,480 Corporacion Financiere Alba 1,047,620
-----------
REAL ESTATE 1.60%
53,340 Urbis SA 1,2,3 262,427
65,520 Vallehermoso SA 404,990
-----------
667,417
-----------
TELECOMMUNICATIONS 25.34%
368,160 Telefonica SA* 10,580,736
-----------
UTILITIES - ELECTRICAL & GAS 17.30%
94,980 Endesa SA 2,009,080
102,000 Gas Natural SDG SA 2,051,510
97,300 Iberdrola SA 1,220,653
94,000 Union Electrica Fenosa SA 1,945,814
-----------
7,227,057
-----------
TOTAL COMMON STOCK - BASKET
(Cost $40,062,246) 41,754,548
-----------
COMMON STOCK -
NON-BASKET 0.02%
BUSINESS & PUBLIC SERVICES 0.00%
9 Autopistas Concesionaria
Espanola SA 74
-----------
CHEMICALS 0.02%
866,060 Ercros SA - Rights
(Expiration Date 3/7/00)* 8,338
-----------
TOTAL COMMON STOCK - NON-BASKET
(Cost $125) 8,412
-----------
TOTAL INVESTMENTS
(COST $40,062,371)(DAGGER) 100.00% $41,762,960
====== ===========
- --------------
* Non-income producing security.
(DAGGER) Aggregate cost for Federal income tax purposes is $40,521,242. The
aggregate gross unrealized appreciation (depreciation) for all securities is
as follows:
Excess of value over tax cost $5,701,745
Excess of tax cost over value (4,460,027)
----------
$1,241,718
==========
See accompanying notes to financial statements.
39
<PAGE>
FEBRUARY 29, 2000
PORTFOLIO OF INVESTMENTS (Unaudited) WEBS INDEX FUND, INC.
- --------------------------------------------------------------------------------
SWEDEN WEBS INDEX SERIES
NO. OF
SHARES SECURITY VALUE
------- -------- ----------
COMMON STOCK - BASKET 100.00%
APPLIANCES & HOUSEHOLD
DURABLES 4.52%
68,200 Electrolux AB - B $1,283,563
----------
BANKING 10.14%
89,100 ForeningsSparbanken AB 1,128,105
138,600 Skandinaviska Enskilda
Banken AB - A 1,391,217
30,800 Svenska Handelsbanken AB - A 360,100
----------
2,879,422
----------
BUSINESS & PUBLIC SERVICES 9.89%
4,400 Esselte AB - A 25,094
60,500 Securitas AB - B 1,618,256
17,600 WM-Data AB - B 1,164,366
----------
2,807,716
----------
CONSTRUCTION & HOUSING 3.34%
27,500 Skanska AB - B 947,302
----------
ELECTRICAL & ELECTRONICS 25.57%
75,900 Ericsson LM - B 7,263,614
----------
FINANCIAL SERVICES 3.14%
17,600 Om Gruppen AB 891,343
----------
HEALTH & PERSONAL CARE 0.76%
22,000 Gambro AB - A 153,074
8,800 Gambro AB - B 62,233
----------
215,307
----------
INDUSTRIAL COMPONENTS 2.02%
14,300 SKF AB - A 267,503
15,400 SKF AB - B 305,646
----------
573,149
----------
NO. OF
SHARES SECURITY VALUE
------- -------- ----------
INSURANCE 11.89%
82,500 Skandia Forsakrings AB $3,378,294
----------
MACHINERY & ENGINEERING 10.26%
13,200 Atlas Copco AB - A 304,893
4,400 Atlas Copco AB - B 97,365
27,500 Sandvik AB - A 744,981
17,600 Sandvik AB - B 471,769
18,700 Volvo AB - A 413,802
37,400 Volvo AB - B 880,929
----------
2,913,739
----------
MERCHANDISING 5.50%
47,300 Hennes Mauritz AB - B 1,561,920
----------
METALS - NON FERROUS 1.09%
16,500 SAPA AB 310,540
----------
METALS - STEEL 2.38%
28,600 SSAB Svenskt Stal AB - A 347,428
27,500 SSAB Svenskt Stal AB - B 327,792
----------
675,220
----------
MULTI-INDUSTRY 0.16%
6,600 Trelleborg AB - B 46,299
----------
REAL ESTATE 0.49%
14,300 Drott AB - B 140,276
----------
TELECOMMUNICATIONS 8.85%
26,400 NetCom AB - B* 2,514,429
----------
TOTAL COMMON STOCK - BASKET
(Cost $20,700,885) 28,402,133
----------
TOTAL INVESTMENTS
(COST $20,700,885)(DAGGER) 100.00% $28,402,133
====== ===========
- --------------
* Non-income producing security.
(DAGGER) Aggregate cost for Federal income tax purposes is $20,948,198. The
aggregate gross unrealized appreciation (depreciation) for all securities is
as follows:
Excess of value over tax cost $8,430,890
Excess of tax cost over value (976,955)
----------
$7,453,935
==========
See accompanying notes to financial statements.
40
<PAGE>
FEBRUARY 29, 2000
PORTFOLIO OF INVESTMENTS (Unaudited) WEBS INDEX FUND, INC.
- --------------------------------------------------------------------------------
SWITZERLAND WEBS INDEX SERIES
NO. OF
SHARES SECURITY VALUE
------- -------- -----------
COMMON STOCK - BASKET 100.00%
BANKING 15.93%
2,604 Banque Cantonale Vaudoise $ 733,565
10,773 Credit Suisse Group 1,714,356
11,613 UBS AG 2,822,507
357 Vontobel Holding AG 641,932
-----------
5,912,360
-----------
BUILDING MATERIALS &
COMPONENTS 2.52%
378 Forbo Holding AG 155,423
588 Holderbank Financiere Glarus
AG - Bearer 644,953
483 Holderbank Financiere Glarus
AG - Registered 136,064
-----------
936,440
-----------
BUSINESS & PUBLIC SERVICES 2.80%
1,281 Adecco SA 1,013,498
63 SGS Societe Generale de
Surveillance Holding SA* 25,300
-----------
1,038,798
-----------
CHEMICALS 5.48%
252 EMS-Chemie Holding AG* 1,087,509
1,260 Lonza Group AG* 641,177
924 Sika Finanz AG 305,157
-----------
2,033,843
-----------
ELECTRICAL & ELECTRONICS 4.68%
16,317 ABB Ltd. 1,735,955
-----------
FINANCIAL SERVICES 2.08%
252 Julius Baer Holding Limited AG 773,340
-----------
FOOD & HOUSEHOLD PRODUCTS 8.58%
1,890 Nestle SA 3,186,628
-----------
HEALTH & PERSONAL CARE 32.88%
5,103 Novartis AG 6,496,507
42 Roche Holding AG - Bearer 503,476
483 Roche Holding AG - Genussein 5,205,191
-----------
12,205,174
-----------
NO. OF
SHARES SECURITY VALUE
------- -------- -----------
INSURANCE 9.57%
1,092 Schweizerische
Rueckversicherungs (Swiss Re) $ 1,755,421
4,242 Zurich Allied AG 1,797,587
-----------
3,553,008
-----------
LEISURE & TOURISM 1.74%
84 Kuoni Reisen AG 382,642
567 Moevenpick Holding AG 265,080
-----------
647,722
-----------
MACHINERY & ENGINEERING 2.89%
1,050 Georg Fischer AG 313,414
42 Schindler Holding AG -
Particapation Certificates 60,770
105 Schindler Holding AG - Registered 151,043
840 Sulzer AG 547,279
-----------
1,072,506
-----------
MERCHANDISING 3.27%
504 Jelmoli Holding AG - Bearer 643,443
504 Jelmoli Holding AG - Registered 129,595
1,533 Valora Holding AG 441,045
-----------
1,214,083
-----------
MULTI-INDUSTRY 1.52%
924 Alusuisse Lonza Group AG 564,901
-----------
RECREATION - OTHER CONSUMER
GOODS 0.30%
105 The Swatch Group AG - B 112,904
-----------
TELECOMMUNICATIONS 4.74%
5,397 Swisscom AG 1,759,751
-----------
TRANSPORTATION - AIRLINES 1.02%
1,995 SairGroup 379,055
-----------
TOTAL COMMON STOCK - BASKET
(Cost $41,446,523) 37,126,468
-----------
TOTAL INVESTMENTS
(COST $41,446,523)(DAGGER) 100.00% $37,126,468
====== ===========
- --------------
* Non-income producing security.
(DAGGER) Aggregate cost for Federal income tax purposes is $41,793,017. The
aggregate gross unrealized appreciation (depreciation) for all securities is
as follows:
Excess of value over tax cost $ 783,812
Excess of tax cost over value (5,450,361)
-----------
$(4,666,549)
===========
See accompanying notes to financial statements.
41
<PAGE>
FEBRUARY 29, 2000
PORTFOLIO OF INVESTMENTS (Unaudited) WEBS INDEX FUND, INC.
- --------------------------------------------------------------------------------
UNITED KINGDOM WEBS INDEX SERIES
NO. OF
SHARES SECURITY VALUE
------- -------- -----------
COMMON STOCK - BASKET 99.99%
AEROSPACE & MILITARY
TECHNOLOGY 0.72%
166,935 British Aerospace PLC $ 826,199
------------
BANKING 13.37%
101,277 Abbey National PLC 1,136,789
109,678 Barclays PLC 2,642,249
154,070 Halifax Group PLC 1,381,548
491,536 HSBC Holdings PLC 5,722,911
386,570 Lloyds TSB Group PLC 3,557,921
73,594 Royal Bank of Scotland Group PLC 967,803
------------
15,409,221
------------
BEVERAGES & TOBACCO 2.94%
161,820 British American Tobacco PLC 665,487
153,047 Cadbury Schweppes PLC 908,474
238,049 Diageo PLC 1,817,031
------------
3,390,992
------------
BROADCASTING & PUBLISHING 4.34%
122,667 British Sky Broadcasting Group PLC* 3,150,757
40,734 Pearson PLC 1,351,728
68,355 Reed International PLC 501,521
------------
5,004,006
------------
BUILDING MATERIALS &
COMPONENTS 0.96%
22,010 Blue Circle Industries PLC 148,284
37,510 BPB PLC 160,626
45,539 Caradon PLC 95,257
60,729 Hanson PLC 389,723
24,645 Hepworth PLC 58,361
21,545 RMC Group PLC 248,296
------------
1,100,547
------------
BUSINESS & PUBLIC SERVICES 9.57%
17,484 Anglian Water PLC 122,967
74,710 BAA PLC 444,357
59,241 Compass Group PLC 707,507
14,756 De La Rue PLC 62,897
123,256 Hays PLC 819,200
32,581 Logica PLC 1,389,791
37,603 Misys PLC 563,957
37,200 Railtrack Group PLC 378,793
151,652 Rentokil Initial PLC 494,388
103,881 Reuters Group PLC 2,245,118
95,418 Sage Group PLC 1,201,325
32,147 SEMA Group PLC 688,176
35,619 Thames Water PLC 390,810
42,284 United Utilities PLC 436,903
56,234 WPP Group PLC 1,084,406
------------
11,030,595
------------
CHEMICALS 1.17%
42,470 BOC Group PLC 857,536
63,395 Imperial Chemical Industries PLC 486,897
------------
1,344,433
------------
CONSTRUCTION & HOUSING 0.09%
48,205 Taylor Woodrow PLC 103,117
------------
DATA PROCESSING &REPRODUCTION 0.26%
3,565 Psion PLC 298,963
------------
ELECTRICAL & ELECTRONICS 1.97%
81,660 Marconi PLC 2,264,181
------------
NO. OF
SHARES SECURITY VALUE
------- -------- -----------
ELECTRONIC COMPONENTS,
INSTRUMENTS 1.78%
12,989 Arm Holdings PLC* $ 979,149
181,722 Invensys PLC 833,400
56,513 Williams PLC 234,195
------------
2,046,744
------------
ENERGY SOURCES 6.18%
878,540 BP Amoco PLC 6,761,387
16,647 Burmah Castrol PLC 267,274
62,620 Lasmo PLC 93,668
------------
7,122,329
------------
FINANCIAL SERVICES 2.10%
49,755 AMVESCAP PLC 565,154
29,884 Provident Financial PLC 242,966
28,365 Schroders PLC 546,762
20,987 St. James Place Capital PLC 62,289
56,265 3i Group PLC 1,001,952
------------
2,419,123
------------
FOOD & HOUSEHOLD PRODUCTS 1.37%
234,112 Unilever PLC 1,425,704
36,487 United Biscuits Holdings PLC 150,053
------------
1,575,757
------------
FOREST PRODUCTS & PAPER 0.07%
32,860 Arjo Wiggins Appleton PLC 81,964
------------
GOLD MINES 0.12%
12,648 Lonmin PLC 135,778
------------
HEALTH & PERSONAL CARE 12.50%
140,647 Astrazeneca PLC 4,571,792
223,696 Glaxo Wellcome PLC 5,360,800
399,528 Smithkline Beecham PLC 4,475,064
------------
14,407,656
------------
INDUSTRIAL COMPONENTS 0.26%
40,393 BBA Group PLC 248,059
53,165 BICC PLC 49,520
------------
297,579
------------
INSURANCE 4.46%
133,083 Allied Zurich AG PLC 1,131,378
93,310 CGU PLC 1,112,916
379,905 Legal & General Group PLC 926,623
131,719 Prudential PLC 1,942,204
4,247 Royal & Sun Alliance
Insurance Group PLC 23,198
------------
5,136,319
------------
LEISURE & TOURISM 3.00%
62,589 Bass PLC 663,504
73,191 Carlton Communications PLC 827,314
140,430 Granada Group PLC 1,414,426
93,000 Hilton Group PLC 340,253
86,335 Rank Group PLC 215,349
------------
3,460,846
------------
MACHINERY & ENGINEERING 1.16%
79,413 GKN PLC 1,019,535
26,040 Smiths Industries PLC 316,953
------------
1,336,488
------------
See accompanying notes to financial statements.
42
<PAGE>
FEBRUARY 29, 2000
PORTFOLIO OF INVESTMENTS (Unaudited) WEBS INDEX FUND, INC.
- --------------------------------------------------------------------------------
UNITED KINGDOM WEBS INDEX SERIES (CONCLUDED)
NO. OF
SHARES SECURITY VALUE
------- -------- -----------
MERCHANDISING 4.80%
67,115 Boots Company PLC $ 487,920
30,442 Dixons Group PLC* 653,599
90,334 Great Universal Stores PLC 511,258
100,068 Kingfisher PLC 754,342
211,296 Marks & Spencer PLC 758,879
31,620 Next PLC 262,072
73,501 Safeway PLC 179,566
140,306 Sainsbury PLC 577,010
499,565 Tesco PLC 1,352,558
------------
5,537,204
------------
METALS - NON FERROUS 0.83%
64,852 Rio Tinto PLC 960,342
------------
METALS - STEEL 0.25%
173,910 Corus Group PLC 288,279
------------
MISCELLANEOUS MATERIALS &
COMMODITIES 0.18%
92,380 Pilkington PLC 96,984
38,068 Rexam PLC 110,130
------------
207,114
------------
MULTI-INDUSTRY 0.15%
33,077 TI Group PLC 175,846
------------
REAL ESTATE 0.80%
56,265 British Land Company PLC 308,669
40,331 Land Securities PLC 439,645
33,666 MEPC PLC 179,111
------------
927,425
------------
RECREATION - OTHER CONSUMER
GOODS 0.67%
72,819 EMI Group PLC 775,401
------------
TELECOMMUNICATIONS 18.93%
335,141 British Telecommunications PLC 5,851,703
1,767 Cable & Wireless PLC 36,683
2,839,786 Vodafone Airtouch PLC 15,926,462
------------
21,814,848
------------
NO. OF
SHARES SECURITY VALUE
------- -------- -----------
TEXTILES & APPAREL 0.06%
99,045 Coats Viyella PLC $ 63,718
------------
TRANSPORTATION - AIRLINES 0.38%
93,930 British Airways PLC 443,379
------------
TRANSPORTATION - SHIPPING 0.49%
50,065 Peninsular & Oriental Steam
Navigation Company PLC 563,933
------------
UTILITIES - ELECTRICAL & GAS 4.06%
245,768 Bg Group PLC 1,071,833
249,891 Centrica PLC 843,250
143,592 National Grid Group PLC 1,113,041
97,495 National Power PLC 576,028
14,105 Scottish and Southern Energy PLC 118,074
126,480 Scottish Power PLC 960,432
------------
4,682,658
------------
TOTAL COMMON STOCK - BASKET
(Cost $123,427,627) 115,232,984
------------
COMMON STOCK -
NON-BASKET 0.01%
AEROSPACE & MILITARY
TECHNOLOGY 0.00%
19 British Aerospace PLC 94
4,710 Rolls-Royce PLC 15,336
------------
15,430
------------
METALS - STEEL 0.01%
20 Corus Group PLC 33
------------
TOTAL COMMON STOCK - NON-BASKET
(Cost $16,812) 15,463
------------
TOTAL INVESTMENTS
(COST $123,444,439) 100.00% $115,248,447
======= ============
- --------------
* Non-income producing security.
(DAGGER) Aggregate cost for Federal income tax purposes is $124,022,752. The
aggregate gross unrealized appreciation (depreciation) for all securities is
as follows:
Excess of value over tax cost $ 9,917,954
Excess of tax cost over value (18,692,259)
------------
$ (8,774,305)
============
See accompanying notes to financial statements.
43
<PAGE>
FEBRUARY 29, 2000
STATEMENTS OF ASSETS AND LIABILITIES (Unaudited) WEBS INDEX FUND, INC.
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
AUSTRALIA AUSTRIA BELGIUM CANADA FRANCE GERMANY
WEBS WEBS WEBS WEBS WEBS WEBS
INDEX INDEX INDEX INDEX INDEX INDEX
SERIES SERIES SERIES SERIES SERIES SERIES
----------- ---------- ----------- ----------- ----------- ------------
<S> <C> <C> <C> <C> <C> <C>
ASSETS
Investments, at value .................... $58,311,883 $9,077,967 $10,355,202 $13,553,795 $93,506,550 $181,704,433
Cash and foreign currency (at value) ..... 403,082 64,576 128,159 65,532 144,423 707,685
Cash collateral for securities loaned .... 10,346,982 -- -- 642,950 19,465,330 5,291,310
Dividends receivable ..................... 145,657 34,121 51,684 9,997 251,855 28,303
Interest receivable ...................... 1,169 130 72 168 2,020 8,190
Receivable for securities sold ........... 5,132,452 -- -- -- -- --
Asset for in-kind redemptions ............ -- -- -- -- -- --
Receivable for Fund shares sold .......... -- -- -- -- -- --
Deferred organization cost ............... 36,747 27,328 11,936 25,956 71,242 67,683
Prepaid expenses ......................... 3,454 957 24 484 4,584 6,911
----------- ---------- ----------- ----------- ----------- ------------
Total assets ......................... 74,381,426 9,205,079 10,547,077 14,298,882 113,446,004 187,814,515
----------- ---------- ----------- ----------- ----------- ------------
LIABILITIES
Payable for securities purchased ......... 5,232,704 -- -- -- -- --
Payable for Fund shares redeemed ......... -- -- -- -- -- --
Liability for in-kind subscriptions ...... -- -- -- -- -- --
Payable for securities loaned ............ 10,346,982 -- -- 642,950 19,465,330 5,291,310
Advisory fee payable ..................... 39,988 7,133 7,825 7,967 53,872 99,246
Administration fee payable ............... 29,335 5,286 5,768 5,763 38,941 71,362
Distribution fee payable ................. 31,084 5,540 6,081 6,200 41,906 77,275
Custody fee payable ...................... 25,287 9,994 8,492 9,272 40,611 64,151
Accrued expenses ......................... 23,660 6,073 8,640 11,131 30,701 64,359
----------- ---------- ----------- ----------- ----------- ------------
Total liabilities .................... 15,729,040 34,026 36,806 683,283 19,671,361 5,667,703
----------- ---------- ----------- ----------- ----------- ------------
NET ASSETS
Capital stock, $0.001 par value .......... 5,800 1,200 840 800 3,401 6,601
Paid-in capital .......................... 60,447,431 13,200,148 13,986,478 9,861,734 68,093,157 144,607,467
Accumulated net investment income/(loss).. 706,296 (54,611) (106,802) 12,437 (401,211) (435,986)
Accumulated net realized gain/(loss)
on investments ......................... (2,173,992) (1,860,483) (1,034,615) 1,163,626 5,826,213 16,796,902
Net unrealized appreciation/(depreciation)
on investments and translation of other
assets and liabilities denominated in
foreign currencies ..................... (333,149) (2,115,201) (2,335,630) 2,577,002 20,253,083 21,171,828
----------- ---------- ----------- ----------- ----------- ------------
Net Assets ............................... $58,652,386 $ 9,171,053 $10,510,271 $13,615,599 $93,774,643 $182,146,812
=========== ========== =========== =========== =========== ============
Shares of capital stock issued and
outstanding ............................ 5,800,030 1,200,030 840,030 800,030 3,401,000 6,601,000
=========== ========== =========== =========== =========== ============
Net Asset Value Per Share ................ $ 10.11 $ 7.64 $ 12.51 $ 17.02 $ 27.57 $ 27.59
=========== ========== =========== =========== =========== ============
</TABLE>
<TABLE>
<CAPTION>
MALAYSIA MEXICO
HONG KONG ITALY JAPAN (FREE) (FREE) NETHERLANDS
WEBS WEBS WEBS WEBS WEBS WEBS
INDEX INDEX INDEX INDEX INDEX INDEX
SERIES SERIES SERIES SERIES SERIES SERIES
----------- ----------- -------------- ------------ ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
ASSETS
Investments, at value .................... $87,044,071 $63,841,262 $ 884,262,534 $123,172,888 $26,958,549 $23,312,211
Cash and foreign currency (at value) ..... 522,107 421,984 1,442,317 4,222,313 95,098 16,798
Cash collateral for securities loaned .... 8,082,000 24,393,700 110,869,453 -- 4,214,500 --
Dividends receivable ..................... -- -- 186,991 211,854 -- 11,383
Interest receivable ...................... 1,136 5,362 14,399 8,505 2,553 100
Receivable for securities sold ........... -- -- -- -- -- --
Asset for in-kind redemptions ............ -- -- 18,239,747 -- -- --
Receivable for Fund shares sold .......... -- -- -- -- -- --
Deferred organization cost ............... 18,865 35,876 149,363 19,997 20,203 16,919
Prepaid expenses ......................... 5,840 5,757 12,359 812 117 2,340
----------- ----------- -------------- ------------ ----------- -----------
Total assets ......................... 95,674,019 88,703,941 1,015,177,163 127,636,369 31,291,020 23,359,751
----------- ----------- -------------- ------------ ----------- -----------
LIABILITIES
Payable for securities purchased ......... -- -- -- -- -- --
Payable for Fund shares redeemed ......... -- -- 18,232,439 -- -- --
Liability for in-kind subscriptions ...... -- -- -- -- -- --
Payable for securities loaned ............ 8,082,000 24,393,700 110,869,453 -- 4,214,500 --
Advisory fee payable ..................... 55,411 37,730 584,268 71,792 16,817 16,744
Administration fee payable ............... 40,464 27,424 426,836 51,831 12,261 12,348
Distribution fee payable ................. 43,075 29,345 454,341 55,871 13,088 13,011
Custody fee payable ...................... 41,362 24,673 233,303 43,289 21,731 17,287
Accrued expenses ......................... 33,151 20,832 290,710 45,594 11,190 8,557
----------- ----------- -------------- ------------ ----------- -----------
Total liabilities .................... 8,295,463 24,533,704 131,091,350 268,377 4,289,587 67,947
----------- ----------- -------------- ------------ ----------- -----------
NET ASSETS
Capital stock, $0.001 par value .......... 6,526 2,400 58,801 17,025 1,500 1,001
Paid-in capital .......................... 70,036,494 46,355,410 694,938,497 88,268,321 19,777,899 23,577,747
Accumulated net investment income/(loss).. (219,100) (770,342) (5,089,699) 471,192 (51,105) (153,449)
Accumulated net realized gain/(loss)
on investments ......................... (10,230,697) 3,864,410 22,606,285 (14,615,406) 1,082,422 (462,390)
Net unrealized appreciation/(depreciation)
on investments and translation of other
assets and liabilities denominated in
foreign currencies ..................... 27,785,333 14,718,359 171,571,929 53,226,860 6,190,717 328,895
----------- ----------- -------------- ------------ ----------- -----------
Net Assets ............................... $87,378,556 $64,170,237 $ 884,085,813 $127,367,992 $27,001,433 $23,291,804
=========== =========== ============== ============ =========== ===========
Shares of capital stock issued and
outstanding ............................ 6,526,000 2,400,030 58,801,000 17,025,030 1,500,030 1,001,000
=========== =========== ============== ============ =========== ===========
Net Asset Value Per Share ................ $ 13.39 $ 26.74 $ 15.04 $ 7.48 $ 18.00 $ 23.27
=========== =========== ============== ============ =========== ===========
</TABLE>
<TABLE>
<CAPTION>
SINGAPORE UNITED
(FREE) SPAIN SWEDEN SWITZERLAND KINGDOM
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 .................... $101,070,703 $41,762,960 $28,402,133 $37,126,468 $115,248,447
Cash and foreign currency (at value) ..... 8,591,033 398,072 232,112 43,156 698,505
Cash collateral for securities loaned .... 12,857,750 5,668,634 -- -- --
Dividends receivable ..................... 16,949 47,599 -- 88,790 426,268
Interest receivable ...................... 4,482 765 376 127 525
Receivable for securities sold ........... -- -- -- 2,024,734 --
Asset for in-kind redemptions ............ -- -- -- -- --
Receivable for Fund shares sold .......... -- -- -- -- 3,751,471
Deferred organization cost ............... 24,013 29,662 19,311 45,595 43,044
Prepaid expenses ......................... 8,926 4,228 1,142 3,515 7,563
------------ ----------- ----------- ----------- ------------
Total assets ......................... 122,573,856 47,911,920 28,655,074 39,332,385 120,175,823
------------ ----------- ----------- ----------- ------------
LIABILITIES
Payable for securities purchased ......... 8,148,559 -- -- 2,000,845 --
Payable for Fund shares redeemed ......... -- -- -- -- --
Liability for in-kind subscriptions ...... -- -- -- -- 3,717,193
Payable for securities loaned ............ 12,857,750 5,668,634 -- -- --
Advisory fee payable ..................... 76,401 26,124 15,442 25,296 75,000
Administration fee payable ............... 56,303 19,054 11,226 18,519 54,994
Distribution fee payable ................. 59,372 20,313 12,009 19,670 58,294
Custody fee payable ...................... 54,145 18,800 22,177 26,223 64,170
Accrued expenses ......................... 41,421 16,608 10,454 15,726 46,433
------------ ----------- ----------- ----------- ------------
Total liabilities .................... 21,293,951 5,769,533 71,308 2,106,279 4,016,084
------------ ----------- ----------- ----------- ------------
NET ASSETS
Capital stock, $0.001 par value .......... 13,700 1,500 825 2,626 6,201
Paid-in capital .......................... 88,817,768 38,712,727 15,325,007 41,414,213 118,583,690
Accumulated net investment income/(loss).. (689,897) 100,410 (110,495) (205,957) 382,519
Accumulated net realized gain/(loss)
on investments ......................... (650,093) 1,630,194 5,667,182 344,635 5,399,782
Net unrealized appreciation/(depreciation)
on investments and translation of other
assets and liabilities denominated in
foreign currencies ..................... 13,788,427 1,697,556 7,701,247 (4,329,411) (8,212,453)
------------ ----------- ----------- ----------- ------------
Net Assets ............................... $101,279,905 $42,142,387 $28,583,766 $37,226,106 $116,159,739
============ =========== =========== =========== ============
Shares of capital stock issued and
outstanding ............................ 13,700,030 1,500,030 825,030 2,626,000 6,201,000
============ =========== =========== =========== ============
Net Asset Value Per Share ................ $ 7.39 $ 28.09 $ 34.65 $ 14.18 $ 18.73
============ =========== =========== =========== ============
</TABLE>
See accompanying notes to financial statements.
44 & 45
<PAGE>
FOR THE SIX MONTHS ENDED FEBRUARY 29, 2000
STATEMENTS OF OPERATIONS (Unaudited) WEBS INDEX 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>
INVESTMENT INCOME:
Dividends (net of foreign withholding taxes) ............... $1,087,878 $ 7,347 $ 8,048 $ 72,027 $ 13,603
Interest ................................................... 9,629 1,204 3,375 1,503 13,730
---------- ----------- ---------- ---------- -----------
Total investment income .................................. 1,097,507 8,551 11,423 73,530 27,333
---------- ----------- ---------- ---------- -----------
EXPENSES:
Advisory fees .............................................. 78,598 15,242 16,646 14,510 105,764
Administration fees ........................................ 59,881 11,703 12,747 10,939 79,998
Distribution fees .......................................... 59,876 11,585 12,657 11,080 80,593
Custodian fees and expenses ................................ 23,445 8,003 9,479 6,692 37,542
Transfer agent fees ........................................ 4,334 3,968 5,415 3,934 4,562
Directors' fees ............................................ 3,742 726 794 691 5,050
Legal fees ................................................. 7,157 1,320 1,113 1,374 9,573
Audit fees ................................................. 11,858 2,284 2,483 2,270 16,227
Federal and state registration fees ........................ 1,347 -- 3,527 1,168 340
Amortization of deferred organization costs ................ 14,290 10,626 4,642 10,094 27,704
Insurance .................................................. 3,596 474 1,536 1,275 2,957
Printing ................................................... 1,663 317 346 313 2,237
Licensing fees ............................................. 8,981 1,738 1,898 1,662 12,089
Amex listing fee ........................................... 615 60 369 304 269
Interest expense ........................................... 4,963 300 6,077 5,870 --
Miscellaneous expenses ..................................... 4,065 1,878 2,033 2,052 5,188
---------- ----------- ---------- ---------- -----------
Total expenses ........................................... 288,411 70,224 81,762 74,228 390,093
---------- ----------- ---------- ---------- -----------
Net investment income/(loss) ............................... 809,096 (61,673) (70,339) (698) (362,760)
---------- ----------- ---------- ---------- -----------
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 .................... (848,462) (283,037) (463,170) 1,160,817 4,018,885
Net realized gain/(loss) on investments on
in-kind redemptions ...................................... 70,377 (586,740) -- -- 3,534,173
Net realized gain/(loss) on foreign currency
related transactions ..................................... 26,282 (2,113) 24,693 2,809 (29,479)
---------- ----------- ---------- ---------- -----------
(751,803) (871,890) (438,477) 1,163,626 7,523,579
Net change in unrealized appreciation/(depreciation) on
investments and translation of other assets and
liabilities denominated in foreign currencies ............ 956,694 (1,208,268) (2,477,022) 1,553,877 9,582,957
---------- ----------- ---------- ---------- -----------
Net realized and unrealized gain/(loss) on investments and
foreign currency related transactions and translation
of other assets and liabilities denominated in
foreign currencies ....................................... 204,891 (2,080,158) (2,915,499) 2,717,503 17,106,536
---------- ----------- ---------- ---------- -----------
NET INCREASE/(DECREASE) IN NET ASSETS RESULTING
FROM OPERATIONS .......................................... $1,013,987 $(2,141,831) $(2,985,838) $2,716,805 $16,743,776
========== =========== ========== ========== ===========
</TABLE>
<TABLE>
<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>
INVESTMENT INCOME:
Dividends (net of foreign withholding taxes) ............... $ 188,853 $ 1,153,761 $ 182,489 $ 1,941,067 $ 956,224
Interest ................................................... 22,497 10,048 63,509 102,259 45,786
----------- ----------- ----------- ------------ -----------
Total investment income .................................. 211,350 1,163,809 245,998 2,043,326 1,002,010
----------- ----------- ----------- ------------ -----------
EXPENSES:
Advisory fees .............................................. 179,818 106,848 74,727 1,116,139 132,526
Administration fees ........................................ 135,083 81,160 56,701 847,556 99,886
Distribution fees .......................................... 137,364 81,429 56,913 851,046 101,151
Custodian fees and expenses ................................ 56,783 40,165 29,000 226,179 49,922
Transfer agent fees ........................................ 5,020 9,249 4,782 12,172 9,310
Directors' fees ............................................ 10,070 5,091 3,569 47,519 7,220
Legal fees ................................................. 17,512 10,124 6,502 105,614 23,437
Audit fees ................................................. 28,623 16,297 11,091 172,713 20,326
Federal and state registration fees ........................ 12,211 4,700 -- 15,001 438
Amortization of deferred organization costs ................ 26,320 7,336 13,951 58,083 7,776
Insurance .................................................. 5,298 3,744 4,224 29,259 5,036
Printing ................................................... 6,973 2,271 1,579 34,759 4,344
Licensing fees ............................................. 20,605 12,212 8,537 127,657 15,172
Amex listing fee ........................................... 375 473 766 1,714 409
Interest expense ........................................... 4,422 5,006 25,926 1,674 --
Miscellaneous expenses ..................................... 4,501 3,731 2,001 19,676 5,898
----------- ----------- ----------- ------------ -----------
Total expenses ........................................... 650,978 389,836 300,269 3,666,761 482,851
----------- ----------- ----------- ------------ -----------
Net investment income/(loss) ............................... (439,628) 773,973 (54,271) (1,623,435) 519,159
----------- ----------- ----------- ------------ -----------
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 .................... 15,662,432 1,320,205 2,540,178 25,130,076 12,538
Net realized gain/(loss) on investments on
in-kind redemptions ...................................... 1,613,589 418,248 1,365,033 6,684,017 --
Net realized gain/(loss) on foreign currency
related transactions ..................................... (69,310) (722) (30,180) 102,857 (2,878)
----------- ----------- ----------- ------------ -----------
17,206,711 1,737,731 3,875,031 31,916,950 9,660
Net change in unrealized appreciation/(depreciation) on
investments and translation of other assets and
liabilities denominated in foreign currencies ............ 20,067,098 8,248,067 8,419,369 76,168,042 31,588,275
----------- ----------- ----------- ------------ -----------
Net realized and unrealized gain/(loss) on investments and
foreign currency related transactions and translation
of other assets and liabilities denominated in
foreign currencies ....................................... 37,273,809 9,985,798 12,294,400 108,084,992 31,597,935
----------- ----------- ----------- ------------ -----------
NET INCREASE/(DECREASE) IN NET ASSETS RESULTING
FROM OPERATIONS .......................................... $36,834,181 $10,759,771 $12,240,129 $106,461,557 $32,117,094
=========== =========== =========== ============ ===========
</TABLE>
<TABLE>
<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>
INVESTMENT INCOME:
Dividends (net of foreign withholding taxes) ............... $ 67,969 $ 34,337 $ 1,401,258 $ 305,676 $ --
Interest ................................................... 4,519 8,994 31,208 6,570 2,141
---------- --------- ------------ ---------- -----------
Total investment income .................................. 72,488 43,331 1,432,466 312,246 2,141
---------- --------- ------------ ---------- -----------
EXPENSES:
Advisory fees .............................................. 30,980 36,784 152,645 50,588 28,922
Administration fees ........................................ 23,468 28,206 116,622 38,410 21,891
Distribution fees .......................................... 23,653 27,947 116,224 38,554 22,061
Custodian fees and expenses ................................ 23,960 14,453 58,556 19,746 17,032
Transfer agent fees ........................................ 4,269 4,122 10,047 4,578 5,700
Directors' fees ............................................ 1,474 1,756 8,065 2,411 1,378
Legal fees ................................................. 2,872 2,461 14,110 4,634 2,635
Audit fees ................................................. 4,680 5,221 22,806 7,573 4,039
Federal and state registration fees ........................ -- -- -- 860 30
Amortization of deferred organization costs ................ 7,856 6,579 9,337 11,535 7,509
Insurance .................................................. 1,297 1,221 4,649 1,703 1,106
Printing ................................................... 666 760 3,218 1,074 619
Licensing fees ............................................. 3,546 4,192 17,434 5,782 3,309
Amex listing fee ........................................... 235 160 308 178 155
Interest expense ........................................... 245 13,206 205 6,758 2,912
Miscellaneous expenses ..................................... 3,040 385 3,282 3,129 3,109
---------- --------- ------------ ---------- -----------
Total expenses ........................................... 132,241 147,453 537,508 197,513 122,407
---------- --------- ------------ ---------- -----------
Net investment income/(loss) ............................... (59,753) (104,122) 894,958 114,733 (120,266)
---------- --------- ------------ ---------- -----------
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 .................... 1,210,409 196,830 9,656,060 1,647,758 3,873,453
Net realized gain/(loss) on investments on
in-kind redemptions ...................................... 5,425 (330,320) 1,970,159 -- 2,645,700
Net realized gain/(loss) on foreign currency
related transactions ..................................... (474) (7,096) (45,326) (17,564) (3,643)
---------- --------- ------------ ---------- -----------
1,215,360 (140,586) 11,580,893 1,630,194 6,515,510
Net change in unrealized appreciation/(depreciation) on
investments and translation of other assets and
liabilities denominated in foreign currencies ............ 5,725,401 10,468 (18,535,628) 1,842,991 4,289,516
---------- --------- ------------ ---------- -----------
Net realized and unrealized gain/(loss) on investments and
foreign currency related transactions and translation
of other assets and liabilities denominated in
foreign currencies ....................................... 6,940,761 (130,118) (6,954,735) 3,473,185 10,805,026
---------- --------- ------------ ---------- -----------
NET INCREASE/(DECREASE) IN NET ASSETS RESULTING
FROM OPERATIONS .......................................... $6,881,008 $(234,240) $ (6,059,777) $3,587,918 $10,684,760
========== ========= ============ ========== ===========
</TABLE>
<TABLE>
<CAPTION>
UNITED
SWITZERLAND KINGDOM
WEBS WEBS
INDEX INDEX
SERIES SERIES
----------- ------------
<S> <C> <C>
INVESTMENT INCOME:
Dividends (net of foreign withholding taxes) ............... $ -- $ 1,026,066
Interest ................................................... 1,185 10,238
----------- ------------
Total investment income .................................. 1,185 1,036,304
----------- ------------
EXPENSES:
Advisory fees .............................................. 50,601 154,453
Administration fees ........................................ 38,541 117,842
Distribution fees .......................................... 38,533 117,539
Custodian fees and expenses ................................ 19,349 38,017
Transfer agent fees ........................................ 4,164 4,588
Directors' fees ............................................ 2,412 7,361
Legal fees ................................................. 4,385 13,725
Audit fees ................................................. 7,583 23,950
Federal and state registration fees ........................ 868 3,026
Amortization of deferred organization costs ................ 17,730 16,739
Insurance .................................................. 1,975 4,922
Printing ................................................... 1,066 3,232
Licensing fees ............................................. 5,780 17,631
Amex listing fee ........................................... 277 559
Interest expense ........................................... 4,520 25,265
Miscellaneous expenses ..................................... 2,925 9,336
----------- ------------
Total expenses ........................................... 200,709 558,185
----------- ------------
Net investment income/(loss) ............................... (199,524) 478,119
----------- ------------
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 .................... 358,746 4,793,777
Net realized gain/(loss) on investments on
in-kind redemptions ...................................... 375,640 2,937,974
Net realized gain/(loss) on foreign currency
related transactions ..................................... (4,868) 76,440
----------- ------------
729,518 7,808,191
Net change in unrealized appreciation/(depreciation) on
investments and translation of other assets and
liabilities denominated in foreign currencies ............ (3,892,926) (14,912,794)
----------- ------------
Net realized and unrealized gain/(loss) on investments and
foreign currency related transactions and translation
of other assets and liabilities denominated in
foreign currencies ....................................... (3,163,408) (7,104,603)
----------- ------------
NET INCREASE/(DECREASE) IN NET ASSETS RESULTING
FROM OPERATIONS .......................................... $(3,362,932) $ (6,626,484)
=========== ============
</TABLE>
See accompanying notes to financial statements.
46 & 47
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS WEBS INDEX FUND, INC.
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
AUSTRALIA AUSTRIA BELGIUM
WEBS WEBS WEBS
INDEX INDEX INDEX
SERIES SERIES SERIES
------------------------ ------------------------ ------------------------
For the For the For the
six months For the six months For the six months For the
ended year ended year ended year
02/29/00 ended 02/29/00 ended 02/29/00 ended
(Unaudited) 08/31/99 (Unaudited) 08/31/99 (Unaudited) 08/31/99
----------- ----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income/(loss) ....................... $ 809,096 $ 1,018,910 $ (61,673) $ 103,998 $ (70,339) $ 74,362
Net realized gain/(loss) on investments and
foreign currency related transactions ............ (751,803) (1,050,159) (871,890) (967,245) (438,477) 3,499,750
Net change in unrealized appreciation/(depreciation)
on investments and translation of other assets and
liabilities denominated in foreign currencies .... 956,694 11,353,376 (1,208,268) 36,686 (2,477,022) (2,955,479)
----------- ----------- ----------- ----------- ----------- -----------
Net increase/(decrease) in net assets resulting
from operations .................................. 1,013,987 11,322,127 (2,141,831) (826,561) (2,985,838) 618,633
----------- ----------- ----------- ----------- ----------- -----------
DISTRIBUTIONS:
Net investment income .............................. (99,001) (1,018,910) -- (103,998) -- --
In excess of net investment income ................. -- (7,396) -- (13,614) -- (7,001)
Net realized gains ................................. -- -- -- -- -- (997,661)
In excess of net realized gains .................... -- -- -- -- -- --
Return of capital .................................. -- (319,842) -- (25,471) -- (770,321)
----------- ----------- ----------- ----------- ----------- -----------
Net decrease in net assets from distributions ...... (99,001) (1,346,148) -- (143,083) -- (1,774,983)
----------- ----------- ----------- ----------- ----------- -----------
CAPITAL SHARE TRANSACTIONS:
Net proceeds from sale of shares ................... 7,927,588 14,143,418 786,112 5,660,757 -- 2,006,880
Cost of shares redeemed ............................ (4,147,344) (4,261,441) (2,249,507) -- -- (13,118,955)
----------- ----------- ----------- ----------- ----------- -----------
Net increase/(decrease) in net assets derived from
capital share transactions ....................... 3,780,244 9,881,977 (1,463,395) 5,660,757 -- (11,112,075)
----------- ----------- ----------- ----------- ----------- -----------
Total increase/(decrease) in net assets ............ 4,695,230 19,857,956 (3,605,226) 4,691,113 (2,985,838) (12,268,425)
NET ASSETS:
Beginning of period ................................ 53,957,156 34,099,200 12,776,279 8,085,166 13,496,109 25,764,534
----------- ----------- ----------- ----------- ----------- -----------
End of period ...................................... $58,652,386 $53,957,156 $ 9,171,053 $12,776,279 $10,510,271 $13,496,109
=========== =========== =========== =========== =========== ===========
Capital Share Transactions:
Shares sold ........................................ 800,000 1,400,000 100,000 600,000 -- 120,000
Shares redeemed .................................... (400,000) (400,000) (300,000) -- -- (680,000)
----------- ----------- ----------- ----------- ----------- -----------
Net increase/(decrease) in shares .................. 400,000 1,000,000 (200,000) 600,000 -- (560,000)
=========== =========== =========== =========== =========== ===========
</TABLE>
<TABLE>
<CAPTION>
CANADA FRANCE GERMANY
WEBS WEBS WEBS
INDEX INDEX INDEX
SERIES SERIES SERIES
------------------------ ------------------------ --------------------------
For the For the For the
six months For the six months For the six months For the
ended year ended year ended year
02/29/00 ended 02/29/00 ended 02/29/00 ended
(Unaudited) 08/31/99 (Unaudited) 08/31/99 (Unaudited) 08/31/99
----------- ----------- ----------- ----------- ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income/(loss) ...................... $ (698) $ 64,571 $ (362,760 $ 343,192 $ (439,628)$ 464,079
Net realized gain/(loss) on investments and
foreign currency related transactions ........... 1,163,626 1,384,936 7,523,579 3,579,987 17,206,711 9,046,609
Net change in unrealized appreciation/(depreciation)
on investments and translation of other assets and
liabilities denominated in foreign currencies ... 1,553,877 2,309,528 9,582,957 5,565,223 20,067,098 (4,137,292)
----------- ----------- ----------- ------------ ------------ ------------
Net increase/(decrease) in net assets resulting
from operations ................................. 2,716,805 3,759,035 16,743,776 9,488,402 36,834,181 5,373,396
----------- ----------- ----------- ------------ ------------ ------------
DISTRIBUTIONS:
Net investment income ............................. (2,520) (64,571) -- (343,192) -- (464,079)
In excess of net investment income ................ -- (6,549) -- (70,988) -- (47,802)
Net realized gains ................................ -- (385,919) (1,697,366) (157,628) -- (1,463,921)
In excess of net realized gains ................... -- -- -- -- -- (380,445)
Return of capital ................................. -- -- -- (271,980) -- (37,182)
----------- ----------- ----------- ------------ ------------ ------------
Net decrease in net assets from distributions ..... (2,520) (457,039) (1,697,366) (843,788) -- (2,393,429)
----------- ----------- ----------- ------------ ------------ ------------
CAPITAL SHARE TRANSACTIONS:
Net proceeds from sale of shares .................. 1,648,367 7,126,953 10,414,622 34,466,929 70,473,264 50,334,147
Cost of shares redeemed ........................... -- (8,107,562) (9,571,623) (11,147,991) (26,805,867) (24,602,755)
----------- ----------- ----------- ------------ ------------ ------------
Net increase/(decrease) in net assets derived from
capital share transactions ...................... 1,648,367 (980,609) 842,999 23,318,938 43,667,397 25,731,392
----------- ----------- ----------- ------------ ------------ ------------
Total increase/(decrease) in net assets ........... 4,362,652 2,321,387 15,889,409 31,963,552 80,501,578 28,711,359
NET ASSETS:
Beginning of period ............................... 9,252,947 6,931,560 77,885,234 45,921,682 101,645,234 72,933,875
----------- ----------- ----------- ------------ ------------ ------------
End of period ..................................... $13,615,599 $ 9,252,947 $93,774,643 $ 77,885,234 $182,146,812 $101,645,234
=========== =========== =========== ============ ============ ============
Capital Share Transactions:
Shares sold ....................................... 100,000 600,000 400,000 1,600,000 3,000,000 2,400,000
Shares redeemed ................................... -- (600,000) (400,000) (600,000) (1,200,000) (1,200,000)
----------- ----------- ----------- ------------ ------------ ------------
Net increase/(decrease) in shares ................. 100,000 -- -- 1,000,000 1,800,000 1,200,000
=========== =========== =========== ============ ============ ============
</TABLE>
<TABLE>
<CAPTION>
HONG KONG ITALY
WEBS WEBS
INDEX INDEX
SERIES SERIES
------------------------- ----------------------------
For the For the
six months For the six months For the
ended year ended year
02/29/00 ended 02/29/00 ended
(Unaudited) 08/31/99 (Unaudited) 08/31/99
---------- ------------ ------------ ------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income/(loss) ...................... $ 773,973 $ 2,076,168 $ (54,271) $ 484,969
Net realized gain/(loss) on investments and
foreign currency related transactions ........... 1,737,731 (4,283,573) 3,875,031 12,220,165
Net change in unrealized appreciation/(depreciation)
on investments and translation of other assets and
liabilities denominated in foreign currencies ... 8,248,067 45,476,872 8,419,369 (9,880,532)
----------- ------------ ------------ ------------
Net increase/(decrease) in net assets resulting
from operations ................................. 10,759,771 43,269,467 12,240,129 2,824,602
----------- ------------ ------------ ------------
DISTRIBUTIONS:
Net investment income ............................. (838,444) (2,076,168) -- (179,682)
In excess of net investment income ................ -- (331,861) -- --
Net realized gains ................................ -- -- -- (6,161,860)
In excess of net realized gains ................... -- -- -- --
Return of capital ................................. -- -- -- (689,335)
----------- ------------ ------------ ------------
Net decrease in net assets from distributions ..... (838,444) (2,408,029) -- (7,030,877)
----------- ------------ ------------ ------------
CAPITAL SHARE TRANSACTIONS:
Net proceeds from sale of shares .................. 1,945,598 4,990,436 -- 18,459,343
Cost of shares redeemed ........................... (1,688,686) (18,624,427) (6,293,738) (14,397,461)
----------- ------------ ------------ ------------
Net increase/(decrease) in net assets derived from
capital share transactions ...................... 256,912 (13,633,991) (6,293,738) 4,061,882
----------- ------------ ------------ ------------
Total increase/(decrease) in net assets ........... 10,178,239 27,227,447 5,946,391 (144,393)
NET ASSETS:
Beginning of period ............................... 77,200,317 49,972,870 58,223,846 58,368,239
----------- ------------ ------------ ------------
End of period ..................................... $87,378,556 $ 77,200,317 $64,170,237 $ 58,223,846
=========== ============ ============ ============
Capital Share Transactions:
Shares sold ....................................... 150,000 525,000 -- 750,000
Shares redeemed ................................... (150,000) (1,800,000) (300,000) (600,000)
----------- ------------ ------------ ------------
Net increase/(decrease) in shares ................. -- (1,275,000) (300,000) 150,000
=========== ============ ============ ============
</TABLE>
See accompanying notes to financial statements.
48 & 49
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS (concluded) WEBS INDEX FUND, INC.
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
JAPAN MALAYSIA (FREE)
WEBS WEBS
INDEX INDEX
SERIES SERIES
---------------------------- --------------------------
For the For the
six months For the six months For the
ended year ended year
02/29/00 ended 02/29/00 ended
(Unaudited) 08/31/99 (Unaudited) 08/31/99
------------ ------------ ------------ -----------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income/(loss) ...................... $ (1,623,435) $ (1,115,084) $ 519,159 $ 214,370
Net realized gain/(loss) on
investments and foreign
currency related transactions ................... 31,916,950 (18,671,535) 9,660 (12,836,244)
Net change in unrealized
appreciation/(depreciation)
on investments and translation
of other assets and liabilities
denominated in foreign
currencies ...................................... 76,168,042 178,555,572 31,588,275 75,448,531
------------ ------------ ------------ -----------
Net increase/(decrease)
in net assets resulting from
operations ...................................... 106,461,557 158,768,953 32,117,094 62,826,657
------------ ------------ ------------ -----------
DISTRIBUTIONS:
Net investment income ............................. -- -- -- (116,388)
In excess of net investment income ................ -- (2,424,032) -- --
Net realized gains ................................ (6,510,350) -- -- --
In excess of net realized gains ................... -- -- -- --
Return of capital ................................. -- (265,218) -- (3,326,074)
------------ ------------ ------------ -----------
Net decrease in net assets from
distributions ................................... (6,510,350) (2,689,250) -- (3,442,462)
------------ ------------ ------------ -----------
CAPITAL STOCK TRANSACTIONS:
Net proceeds from sale of shares .................. 114,600,504 383,655,690 -- --
Cost of shares redeemed ........................... (44,118,968) (27,567,601) -- --
------------ ------------ ------------ -----------
Net increase/(decrease) in net
assets derived from capital
share transactions .............................. 70,481,536 356,088,089 -- --
------------ ------------ ------------ -----------
Total increase/(decrease) in
net assets ...................................... 170,432,743 512,167,792 32,117,094 59,384,195
NET ASSETS:
Beginning of period ............................... 713,653,070 201,485,278 95,250,898 35,866,703
------------ ------------ ------------ -----------
End of period ..................................... $884,085,813 $713,653,070 $127,367,992 $95,250,898
============ ============ ============ ===========
Capital Share Transactions:
Shares sold ..................................... 7,800,000 33,000,000 -- --
Shares redeemed ................................. (3,000,000) (3,000,000) -- --
------------ ------------ ------------ -----------
Net increase/(decrease) in shares ................. 4,800,000 30,000,000 -- --
============ ============ ============ ===========
</TABLE>
<TABLE>
<CAPTION>
MEXICO (FREE) NETHERLANDS
WEBS WEBS
INDEX INDEX
SERIES SERIES
------------------------- -------------------------
For the For the
six months For the six months For the
ended year ended year
02/29/00 ended 02/29/00 ended
(Unaudited) 08/31/99 (Unaudited) 08/31/99
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income/(loss) ...................... $ (59,753) $ 75,680 $ (104,122) $ 555,367
Net realized gain/(loss) on
investments and foreign
currency related transactions ................... 1,215,360 (288,007) (140,586) 2,580,324
Net change in unrealized
appreciation/(depreciation)
on investments and translation
of other assets and liabilities
denominated in foreign
currencies ...................................... 5,725,401 5,395,343 10,468 (767,104)
----------- ----------- ----------- -----------
Net increase/(decrease)
in net assets resulting from
operations ...................................... 6,881,008 5,183,016 (234,240) 2,368,587
----------- ----------- ----------- -----------
DISTRIBUTIONS:
Net investment income ............................. -- (75,680) -- (555,367)
In excess of net investment income ................ -- (21,243) -- (17,097)
Net realized gains ................................ -- -- -- (1,779,092)
In excess of net realized gains ................... -- (8,020) -- (319,338)
Return of capital ................................. -- (89,641) -- (111,506)
----------- ----------- ----------- -----------
Net decrease in net assets from
distributions ................................... -- (194,584) -- (2,782,400)
----------- ----------- ----------- -----------
CAPITAL STOCK TRANSACTIONS:
Net proceeds from sale of shares .................. -- 11,363,778 -- 13,324,865
Cost of shares redeemed ........................... (1,309,195) (2,218,426) (8,159,114) (3,575,197)
----------- ----------- ----------- -----------
Net increase/(decrease) in net
assets derived from capital
share transactions .............................. (1,309,195) 9,145,352 (8,159,114) 9,749,668
----------- ----------- ----------- -----------
Total increase/(decrease) in
net assets ...................................... 5,571,813 14,133,784 (8,393,354) 9,335,855
NET ASSETS:
Beginning of period ............................... 21,429,620 7,295,836 31,685,158 22,349,303
----------- ----------- ----------- -----------
End of period ..................................... $27,001,433 $21,429,620 $23,291,804 $31,685,158
=========== =========== =========== ===========
Capital Share Transactions:
Shares sold ..................................... -- 900,000 -- 550,000
Shares redeemed ................................. (100,000) (200,000) (350,000) (150,000)
----------- ----------- ----------- -----------
Net increase/(decrease) in shares ................. (100,000) 700,000 (350,000) 400,000
=========== =========== =========== ===========
</TABLE>
<TABLE>
<CAPTION>
SINGAPORE (FREE) SPAIN
WEBS WEBS
INDEX INDEX
SERIES SERIES
--------------------------- -------------------------
For the For the
six months For the six months For the
ended year ended year
02/29/00 ended 02/29/00 ended
(Unaudited) 08/31/99 (Unaudited) 08/31/99
------------ ------------ ----------- -----------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income/(loss) ...................... $ 894,958 $ 718,400 $ 114,733 $ 106,851
Net realized gain/(loss) on
investments and foreign
currency related transactions ................... 11,580,893 5,548,829 1,630,194 2,903,295
Net change in unrealized
appreciation/(depreciation)
on investments and translation
of other assets and liabilities
denominated in foreign
currencies ...................................... (18,535,628) 62,353,180 1,842,991 (665,542)
------------ ------------ ----------- -----------
Net increase/(decrease)
in net assets resulting from
operations ...................................... (6,059,777) 68,620,409 3,587,918 2,344,604
------------ ------------ ----------- -----------
DISTRIBUTIONS:
Net investment income ............................. (1,316,943) (718,400) -- (106,851)
In excess of net investment income ................ -- (901,448) -- (25,193)
Net realized gains ................................ -- -- -- (1,779,176)
In excess of net realized gains ................... -- -- -- --
Return of capital ................................. -- (151,866) -- (52,032)
------------ ------------ ----------- -----------
Net decrease in net assets from
distributions ................................... (1,316,943) (1,771,714) -- (1,963,252)
------------ ------------ ----------- -----------
CAPITAL STOCK TRANSACTIONS:
Net proceeds from sale of shares .................. 1,597,919 25,731,770 2,085,929 15,098,787
Cost of shares redeemed ........................... (6,378,692) (26,391,185) -- (4,040,953)
------------ ------------ ----------- -----------
Net increase/(decrease) in net
assets derived from capital
share transactions .............................. (4,780,773) (659,415) 2,085,929 11,057,834
------------ ------------ ----------- -----------
Total increase/(decrease) in
net assets ...................................... (12,157,493) 66,189,280 5,673,847 11,439,186
NET ASSETS:
Beginning of period ............................... 113,437,398 47,248,118 36,468,540 25,029,354
------------ ------------ ----------- -----------
End of period ..................................... $101,279,905 $113,437,398 $42,142,387 $36,468,540
============ ============ =========== ===========
Capital Share Transactions:
Shares sold ..................................... 200,000 3,800,000 75,000 525,000
Shares redeemed ................................. (800,000) (3,800,000) -- (150,000)
------------ ------------ ----------- -----------
Net increase/(decrease) in shares ................. (600,000) -- 75,000 375,000
============ ============ =========== ===========
</TABLE>
<TABLE>
<CAPTION>
SWEDEN SWITZERLAND UNITED KINGDOM
WEBS WEBS WEBS
INDEX INDEX INDEX
SERIES SERIES SERIES
------------------------- ------------------------- ---------------------------
For the For the For the
six months For the six months For the six months For the
ended year ended year ended year
02/29/00 ended 02/29/00 ended 02/29/00 ended
(Unaudited) 08/31/99 (Unaudited) 08/31/99 (Unaudited) 08/31/99
----------- ----------- ----------- ----------- ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income/(loss) .............. $ (120,266) $ 79,147 $ (199,524) $ 84,982 $ 478,119 $ 1,966,524
Net realized gain/(loss) on
investments and foreign
currency related transactions ........... 6,515,510 554,296 729,518 1,006,580 7,808,191 6,660,234
Net change in unrealized
appreciation/(depreciation)
on investments and translation
of other assets and liabilities
denominated in foreign
currencies .............................. 4,289,516 3,068,134 (3,892,926) (1,316,317) (14,912,794) 1,407,869
----------- ----------- ----------- ----------- ------------ ------------
Net increase/(decrease)
in net assets resulting from
operations .............................. 10,684,760 3,701,577 (3,362,932) (224,755) (6,626,484) 10,034,627
----------- ----------- ----------- ----------- ------------ ------------
DISTRIBUTIONS:
Net investment income ..................... -- (79,147) -- (84,982) -- (1,966,524)
In excess of net investment income ........ -- (9,823) -- (90,051) -- (30,855)
Net realized gains ........................ (833,363) (549,798) -- (415,196) (2,299,516) (3,268,152)
In excess of net realized gains ........... -- (11,025) -- (360,924) -- (100,408)
Return of capital ......................... -- (11,369) -- (27,488) -- (479,427)
----------- ----------- ----------- ----------- ------------ ------------
Net decrease in net assets from
distributions ........................... (833,363) (661,162) -- (978,641) (2,299,516) (5,845,366)
----------- ----------- ----------- ----------- ------------ ------------
CAPITAL STOCK TRANSACTIONS:
Net proceeds from sale of shares .......... 4,952,916 3,202,043 7,882,452 18,201,550 28,003,565 57,840,429
Cost of shares redeemed ................... (6,254,326) -- (5,792,803) (7,661,744) (16,319,883) (11,473,166)
----------- ----------- ----------- ----------- ------------ ------------
Net increase/(decrease) in net
assets derived from capital
share transactions ...................... (1,301,410) 3,202,043 2,089,649 10,539,806 11,683,682 46,367,263
----------- ----------- ----------- ----------- ------------ ------------
Total increase/(decrease) in
net assets .............................. 8,549,987 6,242,458 (1,273,283) 9,336,410 2,757,682 50,556,524
NET ASSETS:
Beginning of period ....................... 20,033,779 13,791,321 38,499,389 29,162,979 113,402,057 62,845,533
----------- ----------- ----------- ----------- ------------ ------------
End of period ............................. $28,583,766 $20,033,779 $37,226,106 $38,499,389 $116,159,739 $113,402,057
=========== =========== =========== =========== ============ ============
Capital Share Transactions:
Shares sold ............................. 150,000 150,000 500,000 1,125,000 1,400,000 2,800,000
Shares redeemed ......................... (225,000) -- (375,000) (500,000) (800,000) (600,000)
----------- ----------- ----------- ----------- ------------ ------------
Net increase/(decrease) in shares ......... (75,000) 150,000 125,000 625,000 600,000 2,200,000
=========== =========== =========== =========== ============ ============
</TABLE>
See accompanying notes to financial statements.
50 & 51
<PAGE>
FINANCIAL HIGHLIGHTS WEBS INDEX FUND, INC.
- --------------------------------------------------------------------------------
(FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD)
<TABLE>
<CAPTION>
AUSTRALIA
WEBS
INDEX
SERIES
-----------------------------------------------------
For the
six months For the For the For the For the
ended year year year period
02/29/00 ended ended ended 03/12/96*-
(Unaudited) 08/31/99 08/31/98 08/31/97 08/31/96
----------- -------- -------- -------- ----------
<S> <C> <C> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE
Net asset value, beginning of period ....................................... $ 9.99 $ 7.75 $ 10.35 $ 10.15 $ 9.95(1)
------- ------- ------- ------- -------
Net investment income/(loss) (DAGGER) ...................................... 0.14 0.20 0.23 0.17 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 ........................................ -- 2.29 (2.60) 0.47 0.29
------- ------- ------- ------- -------
Net increase/(decrease) in net assets resulting from operations ........ 0.14 2.49 (2.37) 0.64 0.39
------- ------- ------- ------- -------
LESS DISTRIBUTIONS
Dividends from net investment income ....................................... (0.02) (0.19) (0.23) (0.16) (0.08)
Dividends in excess of net investment income ............................... -- 0.00** 0.00** (0.04) (0.05)
Distributions from net realized gains ...................................... -- -- -- (0.04) (0.02)
Distributions in excess of net realized gains .............................. -- -- -- -- --
Return of capital .......................................................... -- (0.06) -- (0.20) (0.04)
------- ------- ------- ------- -------
Total dividends and distributions ...................................... (0.02) (0.25) (0.23) (0.44) (0.19)
------- ------- ------- ------- -------
Net asset value, end of period ............................................. $ 10.11 $ 9.99 $ 7.75 $ 10.35 $ 10.15
======= ======= ======= ======= =======
TOTAL INVESTMENT RETURN (2) .................................................. 1.36% 32.09% (23.11)% 6.23% 3.88%(4)
RATIOS/ SUPPLEMENTAL DATA
Net assets, end of period (in 000's) ....................................... $58,652 $53,957 $34,099 $41,406 $12,177
Ratios of expenses to average net assets (5) ............................... 0.96%(3) 1.00% 1.05% 1.33% 1.59%(3)
Ratios of net investment income/(loss) to average net assets (5) ........... 2.70%(3) 2.03% 2.38% 1.57% 2.18%(3)
Portfolio turnover rate (6) ................................................ 16.17% 13.83% 1.49% 5.30% 8.84%(4)
<FN>
* Commencement of operations.
** Less than one cent per share.
(DAGGER) 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% 1.60%(3)
Ratios of net investment income/(loss) to average
net assets before waivers ............................................ -- -- -- 1.57% 2.17%(3)
(6) Excludes portfolio securities received or delivered as a result of
processing capital share transactions in Creation Unit(s).
</FN>
</TABLE>
<TABLE>
<CAPTION>
AUSTRIA
WEBS
INDEX
SERIES
------------------------------------------------------
For the
six months For the For the For the For the
ended year year year period
02/29/00 ended ended ended 03/12/96*-
(Unaudited) 08/31/99 08/31/98 08/31/97 08/31/96
----------- -------- -------- -------- ----------
<S> <C> <C> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE
Net asset value, beginning of period ....................................... $ 9.13 $ 10.11 $10.51 $10.40 $ 10.91(1)
------- ------- ------ ------ -------
Net investment income/(loss) (DAGGER) ...................................... (0.05) 0.10 0.06 (0.02) 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 ........................................ (1.44) (0.98) 0.20 0.13 (0.41)
------- ------- ------ ------ -------
Net increase/(decrease) in net assets resulting from operations ........ (1.49) (0.88) 0.26 0.11 (0.37)
------- ------- ------ ------ -------
LESS DISTRIBUTIONS
Dividends from net investment income ....................................... -- (0.07) (0.04) -- (0.02)
Dividends in excess of net investment income ............................... -- (0.01) (0.01) -- (0.01)
Distributions from net realized gains ...................................... -- -- (0.61) -- (0.03)
Distributions in excess of net realized gains .............................. -- -- 0.00** -- --
Return of capital .......................................................... -- (0.02) 0.00** -- (0.08)
------- ------- ------ ------ -------
Total dividends and distributions ...................................... -- (0.10) (0.66) -- (0.14)
------- ------- ------ ------ -------
Net asset value, end of period ............................................. $ 7.64 $ 9.13 $10.11 $10.51 $ 10.40
======= ======= ====== ====== =======
TOTAL INVESTMENT RETURN (2) .................................................. (16.32)% (8.69)% 2.16% 1.06% (3.39)%(4)
RATIOS/ SUPPLEMENTAL DATA
Net assets, end of period (in 000's) ....................................... $ 9,171 $12,776 $8,085 $4,205 $13,520
Ratios of expenses to average net assets (5) ............................... 1.21%(3) 1.31% 1.41% 1.68% 1.56%(3)
Ratios of net investment income/(loss) to average net assets (5) ........... (1.06)%(3) 1.04% 0.51% (0.22)% 0.87%(3)
Portfolio turnover rate (6) ................................................ 18.12% 49.95% 36.14% 28.47% 9.60%(4)
<FN>
* Commencement of operations.
** Less than one cent per share.
(DAGGER) 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).
</FN>
</TABLE>
<TABLE>
<CAPTION>
BELGIUM
WEBS
INDEX
SERIES
-----------------------------------------------------
For the
six months For the For the For the For the
ended year year year period
02/29/00 ended ended ended 03/12/96*-
(Unaudited) 08/31/99 08/31/98 08/31/97 08/31/96
----------- -------- -------- -------- ----------
<S> <C> <C> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE
Net asset value, beginning of period ....................................... $ 16.07 $ 18.40 $ 15.64 $ 14.99 $14.92(1)
------- ------- ------- ------- ------
Net investment income/(loss) (DAGGER) ...................................... (0.08) 0.08 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 ........................................ (3.48) (0.30) 6.09 0.62 0.36
------- ------- ------- ------- ------
Net increase/(decrease) in net assets resulting from operations ........ (3.56) (0.22) 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 ............................... -- (0.01) (1.21) (0.28) (0.09)
Distributions from net realized gains ...................................... -- (1.19) (1.99) (0.12) (0.06)
Distributions in excess of net realized gains .............................. -- -- -- -- --
Return of capital .......................................................... -- (0.91) (0.10) (0.01) --
------- ------- ------- ------- ------
Total dividends and distributions ...................................... -- (2.11) (3.57) (0.74) (0.69)
------- ------- ------- ------- ------
Net asset value, end of period ............................................. $ 12.51 $ 16.07 $ 18.40 $ 15.64 $14.99
======= ======= ======= ======= ======
TOTAL INVESTMENT RETURN (2) .................................................. (22.15)% (1.00)% 39.42% 9.26% 5.01%(4)
RATIOS/ SUPPLEMENTAL DATA
Net assets, end of period (in 000's) ....................................... $10,510 $13,496 $25,765 $32,528 $1,800
Ratios of expenses to average net assets (5) ............................... 1.29%(3) 1.24% 1.04% 1.24% 2.29%(3)
Ratios of net investment income/(loss) to average net assets (5) ........... (1.11)%(3) 0.45% 1.28% 4.63% 5.67%(3)
Portfolio turnover rate (6) ................................................ 48.20% 62.99% 50.46% 16.83% 6.25%(4)
<FN>
* Commencement of operations.
** Less than one cent per share.
(DAGGER) 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).
</FN>
</TABLE>
See accompanying notes to financial statements.
52 & 53
<PAGE>
FINANCIAL HIGHLIGHTS (continued) WEBS INDEX FUND, INC.
- --------------------------------------------------------------------------------
(FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD)
<TABLE>
<CAPTION>
CANADA
WEBS
INDEX
SERIES
-------------------------------------------------
For the
six months For the For the For the For the
ended year year year period
02/29/00 ended ended ended 03/12/96*-
(Unaudited) 08/31/99 08/31/98 08/31/97 08/31/96
----------- -------- -------- -------- ----------
<S> <C> <C> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE
Net asset value, beginning of period ....................................... $ 13.22 $ 9.90 $ 13.43 $ 10.60 $ 10.17(1)
------- ------ ------- ------- -------
Net investment income/(loss) ((DAGGER)) .................................... (0.01) 0.07 0.07 0.05 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 ........................................ 3.82 3.87 (2.89) 2.97 0.43
------- ------ ------- ------- -------
Net increase/(decrease) in net assets resulting from operations ........ 3.81 3.94 (2.82) 3.02 0.47
------- ------ ------- ------- -------
LESS DISTRIBUTIONS
Dividends from net investment income ....................................... (0.01) (0.08) (0.13) (0.05) (0.03)
Dividends in excess of net investment income ............................... -- (0.01) 0.00** 0.00** (0.01)
Distributions from net realized gains ...................................... -- (0.53) (0.58) (0.14) --
Distributions in excess of net realized gains .............................. -- -- -- -- 0.00**
Return of capital .......................................................... -- -- -- -- 0.00**
------- ------ ------- ------- -------
Total dividends and distributions ...................................... (0.01) (0.62) (0.71) (0.19) (0.04)
------- ------ ------- ------- -------
Net asset value, end of period ............................................. $ 17.02 $13.22 $ 9.90 $ 13.43 $ 10.60
======= ====== ======= ======= =======
TOTAL INVESTMENT RETURN (2) .................................................. 28.77% 39.71% (21.69)% 28.50% 4.63%(4)
RATIOS/ SUPPLEMENTAL DATA
Net assets, end of period (in 000's) ....................................... $13,616 $9,253 $ 6,932 $24,168 $13,776
Ratios of expenses to average net assets (5) ............................... 1.34%(3) 1.23% 1.14% 1.35% 1.44%(3)
Ratios of net investment income/(loss) to average net assets (5) ........... (0.01)%(3) 0.53% 0.46% 0.39% 0.79%(3)
Portfolio turnover rate (6) ................................................ 35.96% 11.66% 3.70% 11.02% 0.00%(4)
<FN>
* Commencement of operations.
** Less than one cent per share.
(DAGGER) 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% 1.45%(3)
Ratios of net investment income/(loss) to average
net assets before waivers ............................................ -- -- -- 0.39% 0.78%(3)
(6) Excludes portfolio securities received or delivered as a result of
processing capital share transactions in Creation Unit(s).
</FN>
</TABLE>
<TABLE>
<CAPTION>
FRANCE
WEBS
INDEX
SERIES
----------------------------------------------------
For the
six months For the For the For the For the
ended year year year period
02/29/00 ended ended ended 03/12/96*-
(Unaudited) 08/31/99 08/31/98 08/31/97 08/31/96
----------- -------- -------- -------- ----------
<S> <C> <C> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE
Net asset value, beginning of period ....................................... $ 22.90 $ 19.13 $ 14.50 $ 12.73 $ 12.42(1)
------- ------- ------- ------- -------
Net investment income/(loss) ((DAGGER)) .................................... (0.11) 0.14 0.30 0.17 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 ........................................ 5.35 3.88 4.76 1.95 0.45
------- ------- ------- ------- -------
Net increase/(decrease) in net assets resulting from operations ........ 5.24 4.02 5.06 2.12 0.62
------- ------- ------- ------- -------
LESS DISTRIBUTIONS
Dividends from net investment income ....................................... -- (0.10) (0.19) (0.15) (0.09)
Dividends in excess of net investment income ............................... -- (0.02) (0.03) -- (0.01)
Distributions from net realized gains ...................................... (0.57) (0.05) (0.13) (0.20) 0.00**
Distributions in excess of net realized gains .............................. -- -- (0.01) -- --
Return of capital .......................................................... -- (0.08) (0.07) -- (0.21)
------- ------- ------- ------- -------
Total dividends and distributions ...................................... (0.57) (0.25) (0.43) (0.35) (0.31)
------- ------- ------- ------- -------
Net asset value, end of period ............................................. $ 27.57 $ 22.90 $ 19.13 $ 14.50 $ 12.73
======= ======= ======= ======= =======
TOTAL INVESTMENT RETURN (2) .................................................. 23.07% 21.01% 34.77% 16.60% 4.95%(4)
RATIOS/ SUPPLEMENTAL DATA
Net assets, end of period (in 000's) ....................................... $93,775 $77,885 $45,922 $14,519 $22,930
Ratios of expenses to average net assets (5) ............................... 0.97%(3) 1.06% 1.18% 1.52% 1.84%(3)
Ratios of net investment income/(loss) to average net assets (5) ........... (0.90)%(3) 0.67% 1.58% 1.17% 2.72%(3)
Portfolio turnover rate (6) ................................................ 15.35% 0.00% 5.65% 7.13% 0.00%(4)
<FN>
* Commencement of operations.
** Less than one cent per share.
(DAGGER) 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).
</FN>
</TABLE>
<TABLE>
<CAPTION>
GERMANY
WEBS
INDEX
SERIES
------------------------------------------------------
For the
six months For the For the For the For the
ended year year year period
02/29/00 ended ended ended 03/12/96*-
(Unaudited) 08/31/99 08/31/98 08/31/97 08/31/96
----------- -------- -------- -------- ----------
<S> <C> <C> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE
Net asset value, beginning of period ....................................... $ 21.17 $ 20.25 $ 16.31 $ 13.64 $ 13.23(1)
-------- -------- ------- ------- -------
Net investment income/(loss) ((DAGGER)) .................................... (0.08) 0.12 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 ........................................ 6.50 1.31 3.92 2.77 0.47
-------- -------- ------- ------- -------
Net increase/(decrease) in net assets resulting from operations ........ 6.42 1.43 4.21 2.80 0.53
-------- -------- ------- ------- -------
LESS DISTRIBUTIONS
Dividends from net investment income ....................................... -- (0.10) (0.17) (0.03) (0.03)
Dividends in excess of net investment income ............................... -- (0.01) (0.01) (0.01) (0.01)
Distributions from net realized gains ...................................... -- (0.31) (0.01) (0.07) --
Distributions in excess of net realized gains .............................. -- (0.08) 0.00** -- (0.01)
Return of capital .......................................................... -- (0.01) (0.08) (0.02) (0.07)
-------- -------- ------- ------- -------
Total dividends and distributions ...................................... -- (0.51) (0.27) (0.13) (0.12)
-------- -------- ------- ------- -------
Net asset value, end of period ............................................. $ 27.59 $ 21.17 $ 20.25 $ 16.31 $ 13.64
======== ======== ======= ======= =======
TOTAL INVESTMENT RETURN (2) .................................................. 30.33% 7.04% 25.69% 20.51% 4.00%(4)
RATIOS/ SUPPLEMENTAL DATA
Net assets, end of period (in 000's) ....................................... $182,147 $101,645 $72,934 $24,486 $28,664
Ratios of expenses to average net assets (5) ............................... 0.95%(3) 1.00% 1.08% 1.37% 1.68%(3)
Ratios of net investment income/(loss) to average net assets (5) ........... (0.64)%(3) 0.57% 1.43% 0.23% 1.00%(3)
Portfolio turnover rate (6) ................................................ 41.59% 13.67% 0.64% 9.04% 0.00%(4)
<FN>
* Commencement of operations.
** Less than one cent per share.
(DAGGER) 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).
</FN>
</TABLE>
See accompanying notes to financial statements.
54 & 55
<PAGE>
FINANCIAL HIGHLIGHTS (continued) WEBS INDEX FUND, INC.
- --------------------------------------------------------------------------------
(FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD)
<TABLE>
<CAPTION>
HONG KONG
WEBS
INDEX
SERIES
-------------------------------------------------
For the
six months For the For the For the For the
ended year year year period
02/29/00 ended ended ended 03/12/96*-
(Unaudited) 08/31/99 08/31/98 08/31/97 08/31/96
----------- -------- -------- -------- ----------
<S> <C> <C> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE
Net asset value, beginning of period ....................................... $ 11.83 $ 6.41 $ 14.73 $ 13.05 $12.83(1)
------- ------- ------- ------- ------
Net investment income/(loss) ((DAGGER)) .................................... 0.12 0.29 0.35 0.26 0.15
Net realized and unrealized gain/(loss) on investments and foreign currency
related transactions and translation of other assets and liabilities
denominated in foreign currencies ........................................ 1.57 5.49 (8.27) 2.12 0.27
------- ------- ------- ------- ------
Net increase/(decrease) in net assets resulting from operations ........ 1.69 5.78 (7.92) 2.38 0.42
------- ------- ------- ------- ------
LESS DISTRIBUTIONS
Dividends from net investment income ....................................... (0.13) (0.31) (0.28) (0.21) (0.13)
Dividends in excess of net investment income ............................... -- (0.05) 0.00** (0.01) (0.02)
Distributions from net realized gains ...................................... -- -- -- (0.34) (0.01)
Distributions in excess of net realized gains .............................. -- -- -- 0.00** --
Return of capital .......................................................... -- -- (0.12) (0.14) (0.04)
------ ------- ------- ------- ------
Total dividends and distributions ...................................... (0.13) (0.36) (0.40) (0.70) (0.20)
------ ------- ------- ------- ------
Net asset value, end of period ............................................. $ 13.39 $ 11.83 $ 6.41 $ 14.73 $13.05
======= ======= ======= ======= ======
TOTAL INVESTMENT RETURN (2) .................................................. 14.26% 90.51% (54.22)% 17.80% 3.22%(4)
RATIOS/ SUPPLEMENTAL DATA
Net assets, end of period (in 000's) ....................................... $87,379 $77,200 $49,973 $25,417 $7,845
Ratios of expenses to average net assets (5) ............................... 0.96%(3) 1.01% 1.09% 1.43% 1.52%(3)
Ratios of net investment income/(loss) to average net assets (5) ........... 1.90%(3) 2.84% 3.76% 1.71% 2.37%(3)
Portfolio turnover rate (6) ................................................ 3.76% 42.89% 21.50% 22.90% 0.00%(4)
<FN>
* Commencement of operations.
** Less than one cent per share.
(DAGGER) 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% 1.53%(3)
Ratios of net investment income/(loss) to average
net assets before waivers ............................................ -- -- -- 1.71% 2.36%(3)
(6) Excludes portfolio securities received or delivered as a result of
processing capital share transactions in Creation Unit(s).
</FN>
</TABLE>
<TABLE>
<CAPTION>
ITALY
WEBS
INDEX
SERIES
-------------------------------------------------
For the
six months For the For the For the For the
ended year year year period
02/29/00 ended ended ended 03/12/96*-
(Unaudited) 08/31/99 08/31/98 08/31/97 08/31/96
----------- -------- -------- -------- ----------
<S> <C> <C> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE
Net asset value, beginning of period ....................................... $ 21.56 $ 22.89 $ 16.66 $ 13.79 $ 13.62(1)
------- ------- ------- ------- -------
Net investment income/(loss) ((DAGGER)) .................................... (0.02) 0.17 0.18 0.12 0.25
Net realized and unrealized gain/(loss) on investments and foreign currency
related transactions and translation of other assets and liabilities
denominated in foreign currencies ........................................ 5.20 1.05 7.94 3.10 0.31
------- ------- ------- ------- -------
Net increase/(decrease) in net assets resulting from operations ........ 5.18 1.22 8.12 3.22 0.56
------- ------- ------- ------- -------
LESS DISTRIBUTIONS
Dividends from net investment income ....................................... -- (0.06) (0.18) (0.11) (0.14)
Dividends in excess of net investment income ............................... -- -- (1.02) (0.24) (0.03)
Distributions from net realized gains ...................................... -- (2.24) (0.69) -- (0.14)
Distributions in excess of net realized gains .............................. -- -- -- -- --
Return of capital .......................................................... -- (0.25) -- -- (0.08)
------- ------- ------- ------- -------
Total dividends and distributions ...................................... -- (2.55) (1.89) (0.35) (0.39)
------- ------- ------- ------- -------
Net asset value, end of period ............................................. $ 26.74 $ 21.56 $ 22.89 $ 16.66 $ 13.79
======= ======= ======= ======= =======
TOTAL INVESTMENT RETURN (2) .................................................. 24.03% 5.14% 47.66% 23.37% 4.11%(4)
RATIOS/ SUPPLEMENTAL DATA
Net assets, end of period (in 000's) ....................................... $64,170 $58,224 $58,368 $32,495 $35,170
Ratios of expenses to average net assets (5) ............................... 1.06%(3) 1.03% 1.02% 1.33% 1.43%(3)
Ratios of net investment income/(loss) to average net assets (5) ........... (0.19)%(3) 0.70% 0.76% 0.76% 3.69%(3)
Portfolio turnover rate (6) ................................................ 32.26% 7.89% 8.16% 13.70% 19.80%(4)
<FN>
* Commencement of operations.
** Less than one cent per share.
(DAGGER) 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).
</FN>
</TABLE>
<TABLE>
<CAPTION>
JAPAN
WEBS
INDEX
SERIES
------------------------------------------------------
For the
six months For the For the For the For the
ended year year year period
02/29/00 ended ended ended 03/12/96*-
(Unaudited) 08/31/99 08/31/98 08/31/97 08/31/96
----------- -------- -------- -------- ---------
<S> <C> <C> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE
Net asset value, beginning of period ................................. $ 13.22 $ 8.39 $ 12.61 $ 14.33 $ 14.79(1)
-------- -------- -------- -------- --------
Net investment income/(loss) ((DAGGER)) .............................. (0.03) (0.03) (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 ..... 1.96 4.91 (4.19) (1.65) (0.39)
-------- -------- -------- -------- --------
Net increase/(decrease) in net assets resulting from operations .. 1.93 4.88 (4.21) (1.71) (0.46)
-------- -------- -------- -------- --------
LESS DISTRIBUTIONS
Dividends from net investment income ................................. -- -- -- -- --
Dividends in excess of net investment income ......................... -- (0.04) -- -- --
Distributions from net realized gains ................................ (0.11) -- 0.00** -- --
Distributions in excess of net realized gains ........................ -- -- -- (0.01) --
Return of capital .................................................... -- (0.01) (0.01) -- --
-------- -------- -------- -------- --------
Total dividends and distributions ................................ (0.11) (0.05) (0.01) (0.01) --
-------- -------- -------- -------- --------
Net asset value, end of period ....................................... $ 15.04 $ 13.22 $ 8.39 $ 12.61 $ 14.33
======== ======== ====== ======== ========
TOTAL INVESTMENT RETURN (2) ............................................ 14.59% 58.14% (33.38)% (11.97)% (3.11)%(4)
RATIOS/ SUPPLEMENTAL DATA
Net assets, end of period (in 000's) ................................. $884,086 $713,653 $201,485 $158,957 $103,164
Ratios of expenses to average net assets (5) ......................... 0.86%(3) 0.94% 1.04% 1.19% 1.37%(3)
Ratios of net investment income/(loss) to average net assets (5) ..... (0.38)%(3) (0.27)% (0.21)% (0.48)% (1.01)%(3)
Portfolio turnover rate (6) .......................................... 21.92% 0.00% 0.00% 12.90% 21.54%(4)
<FN>
* Commencement of operations.
** Less than one cent per share.
(DAGGER) 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).
</FN>
</TABLE>
See accompanying notes to financial statements.
56 & 57
<PAGE>
FINANCIAL HIGHLIGHTS (continued) WEBS INDEX FUND, INC.
- --------------------------------------------------------------------------------
(FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD)
<TABLE>
MALAYSIA (FREE)
WEBS
INDEX
SERIES
------------------------------------------------------
For the
six months For the For the For the For the
ended year year year period
02/29/00 ended ended ended 03/12/96*-
(Unaudited) 08/31/99 08/31/98 08/31/97 08/31/96
----------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE
Net asset value, beginning of period ..................................... $ 5.59 $ 2.11 $ 8.23 $ 13.80 $13.24(1)
-------- ------- ------- ------- ------
Net investment income/(loss) ((DAGGER)) .................................. 0.03 0.01 0.06 0.01 (0.02)
Net realized and unrealized gain/(loss) on investments
and foreign currency related transactions and translation
of other assets and liabilities denominated in foreign currencies ...... 1.86 3.67 (6.10) (5.55) 0.59
-------- ------- ------- ------- ------
Net increase/(decrease) in net assets resulting from operations ...... 1.89 3.68 (6.04) (5.54) 0.57
-------- ------- ------- ------- ------
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) (0.01)
-------- ------- ------- ------- ------
Total dividends and distributions .................................... -- (0.20) (0.08) (0.03) (0.01)
-------- ------- ------- ------- ------
Net asset value, end of period ......................................... $ 7.48 $ 5.59 $ 2.11 $ 8.23 $13.80
======== ======= ======= ======= ======
TOTAL INVESTMENT RETURN (2) ................................................ 33.81% 185.81% (73.57)% (40.20)% 4.28%(4)
RATIOS/ SUPPLEMENTAL DATA
Net assets, end of period (in 000's) ..................................... $127,368 $95,251 $35,867 $12,339 $9,318
Ratios of expenses to average net assets (5) ............................. 0.95%(3) 1.43% 1.09% 1.46% 1.58%(3)
Ratios of net investment income/(loss) to average net assets (5) ......... 1.03%(3) 0.33% 1.40% 0.04% (0.35)%(3)
Portfolio turnover rate (6) .............................................. 0.00% 7.24% 2.11% 0.00% 0.00%(4)
<FN>
* Commencement of operations.
** Less than one cent per share.
(DAGGER) 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% 1.59%(3)
Ratios of net investment income/(loss) to average
net assets before waivers .......................................... -- -- -- 0.04% (0.36)%(3)
(6) Excludes portfolio securities received or delivered as a result of
processing capital share transactions in Creation Unit(s).
</FN>
</TABLE>
<TABLE>
MEXICO (FREE)
WEBS
INDEX
SERIES
-----------------------------------------------------
For the
six months For the For the For the For the
ended year year year period
02/29/00 ended ended ended 03/12/96*-
Unaudited) 08/31/99 08/31/98 08/31/97 08/31/96
---------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE
Net asset value, beginning of period ..................................... $ 13.39 $ 8.11 $ 15.11 $ 11.52 $ 9.95(1)
------- ------- ------- ------- ------
Net investment income/(loss) ((DAGGER)) .................................. (0.04) 0.06 0.09 0.02 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 ...... 4.65 5.36 (6.71) 4.07 1.59
------- ------- ------- ------- ------
Net increase/(decrease) in net assets resulting from operations ...... 4.61 5.42 (6.62) 4.09 1.59
------- ------- ------- ------- ------
LESS DISTRIBUTIONS
Dividends from net investment income ..................................... -- (0.06) (0.09) (0.01) --
Dividends in excess of net investment income ............................. -- (0.01) -- (0.01) (0.01)
Distributions from net realized gains .................................... -- -- (0.29) (0.44) --
Distributions in excess of net realized gains ............................ -- (0.01) -- -- --
Return of capital ........................................................ -- (0.06) -- (0.04) (0.01)
------- ------- ------- ------- ------
Total dividends and distributions .................................... -- (0.14) (0.38) (0.50) (0.02)
------- ------- ------- ------- ------
Net asset value, end of period ......................................... $ 18.00 $ 13.39 $ 8.11 $ 15.11 $11.52
======= ======= ======= ======= ======
TOTAL INVESTMENT RETURN (2) ................................................ 34.43% 66.92% (44.18)% 35.21% 15.93%(4)
RATIOS/ SUPPLEMENTAL DATA
Net assets, end of period (in 000's) ..................................... $27,001 $21,430 $ 7,296 $16,627 $5,759
Ratios of expenses to average net assets (5) ............................. 1.12%(3) 1.26% 1.34% 1.63% 1.75%(3)
Ratios of net investment income/(loss) to average net assets (5) ......... (0.51)%(3) 0.52% 0.60% 0.14% 0.01%(3)
Portfolio turnover rate (6) .............................................. 11.34% 18.36% 14.05% 22.80% 0.00%(4)
<FN>
* Commencement of operations.
** Less than one cent per share.
(DAGGER) 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).
</FN>
</TABLE>
<TABLE>
NETHERLANDS
WEBS
INDEX
SERIES
-------------------------------------------------------
For the
six months For the For the For the For the
ended year year year period
02/29/00 ended ended ended 03/12/96*-
(Unaudited) 08/31/99 08/31/98 08/31/97 08/31/96
----------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE
Net asset value, beginning of period .................................. $ 23.45 $ 23.50 $ 21.42 $17.36 $15.91(1)
------- ------- ------- ------ ------
Net investment income/(loss) ((DAGGER)) ............................... (0.09) 0.53 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 ... (0.09) 1.60 3.53 4.79 1.54
------- ------- ------- ------ ------
Net increase/(decrease) in net assets resulting from operations ... (0.18) 2.13 3.78 4.90 1.78
------- ------- ------- ------ ------
LESS DISTRIBUTIONS
Dividends from net investment income .................................. -- (0.43) (0.16) (0.10) (0.14)
Dividends in excess of net investment income .......................... -- (0.01) -- (0.01) (0.01)
Distributions from net realized gains ................................. -- (1.42) (1.47) (0.71) (0.08)
Distributions in excess of net realized gains ......................... -- (0.24) -- -- (0.01)
Return of capital ..................................................... -- (0.08) (0.07) (0.02) (0.09)
------- ------- ------- ------ ------
Total dividends and distributions ................................. -- (2.18) (1.70) (0.84) (0.33)
------- ------- ------- ------ ------
Net asset value, end of period ...................................... $ 23.27 $ 23.45 $ 23.50 $21.42 $17.36
======= ======= ======= ====== ======
TOTAL INVESTMENT RETURN (2) ............................................. (0.77)% 8.98% 17.41% 28.04% 11.19%(4)
RATIOS/ SUPPLEMENTAL DATA
Net assets, end of period (in 000's) .................................. $23,292 $31,685 $22,349 $9,661 $6,962
Ratios of expenses to average net assets (5) .......................... 1.06%(3) 1.07% 1.12% 1.46% 1.63%(3)
Ratios of net investment income/(loss) to average net assets (5) ...... (0.75)%(3) 2.20% 1.00% 0.54% 2.93%(3)
Portfolio turnover rate (6) ........................................... 14.24% 32.13% 15.81% 12.68% 4.32%(4)
<FN>
* Commencement of operations.
** Less than one cent per share.
(DAGGER) 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).
</FN>
</TABLE>
See accompanying notes to financial statements.
58 & 59
<PAGE>
FINANCIAL HIGHLIGHTS (continued) WEBS INDEX FUND, INC.
- --------------------------------------------------------------------------------
(FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD)
<TABLE>
<CAPTION>
SINGAPORE (FREE)
WEBS
INDEX
SERIES
----------------------------------------------------------
For the
six months For the For the For the For the
ended year year year period
02/29/00 ended ended ended 03/12/96*-
(Unaudited) 08/31/99 08/31/98 08/31/97 08/31/96
----------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE
Net asset value, beginning of period ................................ $ 7.93 $ 3.30 $ 8.66 $ 11.38 $12.24(1)
-------- -------- ------- ------- ------
Net investment income/(loss) ((DAGGER)) ............................. 0.06 0.05 0.07 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.. (0.51) 4.70 (5.37) (2.67) (0.86)
-------- -------- ------- ------- ------
Net increase/(decrease) in net assets resulting from operations.. (0.45) 4.75 (5.30) (2.67) (0.82)
-------- -------- ------- ------- ------
LESS DISTRIBUTIONS
Dividends from net investment income ................................ (0.09) (0.05) (0.04) 0.00** (0.03)
Dividends in excess of net investment income ........................ -- (0.06) (0.01) (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 ............................... (0.09) (0.12) (0.06) (0.05) (0.04)
-------- -------- ------- ------- ------
Net asset value, end of period ...................................... $ 7.39 $ 7.93 $ 3.30 $ 8.66 $11.38
======== ======== ======= ======= ======
TOTAL INVESTMENT RETURN (2) ........................................... (5.84)% 144.52% (61.29)% (23.48)% (6.73)%(4)
RATIOS/ SUPPLEMENTAL DATA
Net assets, end of period (in 000's) ................................ $101,280 $113,438 $47,248 $14,722 $9,107
Ratios of expenses to average net assets (5) ........................ 0.92%(3) 0.97% 1.08% 1.43% 1.56%(3)
Ratios of net investment income/(loss) to average net assets (5) .... 1.54%(3) 0.76% 1.17% 0.03% 0.69%(3)
Portfolio turnover rate (6) ......................................... 27.44% 25.31% 67.17% 13.40% 26.29%(4)
<FN>
* Commencement of operations.
** Less than one cent per share.
(DAGGER) 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% 1.57%(3)
Ratios of net investment income/(loss) to average
net assets before waivers ..................................... -- -- -- 0.03% 0.68%(3)
(6) Excludes portfolio securities received or delivered as a result of
processing capital share transactions in Creation Unit(s).
</FN>
</TABLE>
<TABLE>
<CAPTION>
SPAIN
WEBS
INDEX
SERIES
--------------------------------------------------------
For the
six months For the For the For the For the
ended year year year period
02/29/00 ended ended ended 03/12/96*-
(Unaudited) 08/31/99 08/31/98 08/31/97 08/31/96
----------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE
Net asset value, beginning of period ................................... $ 25.59 $ 23.84 $ 18.49 $14.09 $13.28(1)
------- ------- ------- ------ ------
Net investment income/(loss) ((DAGGER)) ................................ 0.08 0.09 0.16 0.19 0.14
Net realized and unrealized gain/(loss) on investments
and foreign currency related transactions and translation
of other assets and liabilities denominated in foreign currencies .... 2.42 3.14 5.94 5.33 0.98
------- ------- ------- ------ ------
Net increase/(decrease) in net assets resulting from operations .... 2.50 3.23 6.10 5.52 1.12
------- ------- ------- ------ ------
LESS DISTRIBUTIONS
Dividends from net investment income ................................... -- (0.07) (0.12) (0.12) (0.18)
Dividends in excess of net investment income ........................... -- (0.02) (0.02) (0.05) --
Distributions from net realized gains .................................. -- (1.35) (0.55) (0.86) (0.13)
Distributions in excess of net realized gains .......................... -- -- -- -- --
Return of capital ...................................................... -- (0.04) (0.06) (0.09) --
------- ------- ------- ------ ------
Total dividends and distributions .................................. -- (1.48) (0.75) (1.12) (0.31)
------- ------- ------- ------ ------
Net asset value, end of period ......................................... $ 28.09 $ 25.59 $ 23.84 $18.49 $14.09
======= ======= ======= ====== ======
TOTAL INVESTMENT RETURN (2) .............................................. 9.77% 13.39% 32.58% 39.15% 8.45%(4)
RATIOS/ SUPPLEMENTAL DATA
Net assets, end of period (in 000's) ................................... $42,142 $36,469 $25,029 $8,321 $4,227
Ratios of expenses to average net assets (5) ........................... 1.02%(3) 1.04% 1.11% 1.67% 1.76%(3)
Ratios of net investment income/(loss) to average net assets (5) ....... 0.60%(3) 0.31% 0.61% 1.04% 2.04%(3)
Portfolio turnover rate (6) ............................................ 24.23% 16.58% 9.10% 19.21% 4.73%(4)
<FN>
* Commencement of operations.
** Less than one cent per share.
(DAGGER) 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).
</FN>
</TABLE>
<TABLE>
<CAPTION>
SWEDEN
WEBS
INDEX
SERIES
------------------------------------------------------
For the
six months For the For the For the For the
ended year year year period
02/29/00 ended ended ended 03/12/96*-
Unaudited) 08/31/99 08/31/98 08/31/97 08/31/96
---------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE
Net asset value, beginning of period .................................. $ 22.26 $ 18.39 $ 18.32 $14.67 $13.22(1)
------- ------- ------- ------ ------
Net investment income/(loss) ((DAGGER)) ............................... (0.14) 0.10 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 ... 13.54 4.52 0.95 4.45 1.67
------- ------- ------- ------ ------
Net increase/(decrease) in net assets resulting from operations ... 13.40 4.62 1.05 4.42 1.87
------- ------- ------- ------ ------
LESS DISTRIBUTIONS
Dividends from net investment income .................................. -- (0.09) (0.08) -- (0.23)
Dividends in excess of net investment income .......................... -- (0.01) (0.01) -- (0.07)
Distributions from net realized gains ................................. (1.01) (0.62) (0.86) (0.77) (0.12)
Distributions in excess of net realized gains ......................... -- (0.01) (0.01) -- --
Return of capital ..................................................... -- (0.02) (0.02) -- --
------- ------- ------- ------ ------
Total dividends and distributions ................................. (1.01) (0.75) (0.98) (0.77) (0.42)
------- ------- ------- ------ ------
Net asset value, end of period ........................................ $ 34.65 $ 22.26 $ 18.39 $18.32 $14.67
======= ======= ======= ====== ======
TOTAL INVESTMENT RETURN (2) ............................................. 61.38% 25.09% 5.48% 30.10% 14.13%(4)
RATIOS/ SUPPLEMENTAL DATA
Net assets, end of period (in 000's) .................................. $28,584 $20,034 $13,791 $8,243 $4,400
Ratios of expenses to average net assets (5) .......................... 1.11%(3) 1.13% 1.17% 1.64% 1.75%(3)
Ratios of net investment income/(loss) to average net assets (5) ...... (1.09)%(3) 0.49% 0.48% (0.19)% 3.05%(3)
Portfolio turnover rate (6) ........................................... 52.27% 33.44% 10.88% 13.71% 5.87%(4)
<FN>
* Commencement of operations.
** Less than one cent per share.
(DAGGER) 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).
</FN>
</TABLE>
See accompanying notes to financial statements.
60 & 61
<PAGE>
FINANCIAL HIGHLIGHTS (concluded) WEBS INDEX FUND, INC.
- --------------------------------------------------------------------------------
(FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD)
<TABLE>
<CAPTION>
SWITZERLAND
WEBS
INDEX
SERIES
---------------------------------------------------------
For the
six months For the For the For the For the
ended year year year period
02/29/00 ended ended ended 03/12/96*-
(Unaudited) 08/31/99 08/31/98 08/31/97 08/31/96
----------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE
Net asset value, beginning of period .................................. $ 15.39 $ 15.55 $ 13.79 $ 12.29 $12.07(1)
------- ------- ------- ------- ------
Net investment income/(loss) ((DAGGER)) ............................... (0.08) 0.04 (0.00)** (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 ... (1.13) 0.19 3.01 2.11 0.24
------- ------- ------- ------- ------
Net increase/(decrease) in net assets resulting from operations ... (1.21) 0.23 3.01 2.07 0.32
------- ------- ------- ------- ------
LESS DISTRIBUTIONS
Dividends from net investment income .................................. -- (0.03) -- -- (0.10)
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) (0.10)
------- ------- ------- ------- ------
Net asset value, end of period ........................................ $ 14.18 $ 15.39 $ 15.55 $ 13.79 $12.29
======= ======= ======= ======= ======
TOTAL INVESTMENT RETURN (2) ............................................. (7.86)% 1.47% 21.24% 16.69% 2.60%(4)
RATIOS/ SUPPLEMENTAL DATA
Net assets, end of period (in 000's) .................................. $37,226 $38,499 $29,163 $13,805 $6,158
Ratios of expenses to average net assets (5) .......................... 1.04%(3) 1.09% 1.15% 1.52% 1.82%(3)
Ratios of net investment income/(loss) to average net assets (5) ...... (1.04)%(3) 0.24% (0.03)% (0.29)% 1.39%(3)
Portfolio turnover rate (6) ........................................... 32.05% 35.10% 43.09% 48.05% 17.06%(4)
<FN>
* Commencement of operations.
** Less than one cent per share.
(DAGGER) 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% 1.83%(3)
Ratios of net investment income/(loss) to average
net assets before waivers ....................................... -- -- -- (0.29)% 1.38%(3)
(6) Excludes portfolio securities received or delivered as a result of
processing capital share transactions in Creation Unit(s).
</FN>
</TABLE>
<TABLE>
<CAPTION>
UNITED KINGDOM
WEBS
INDEX
SERIES
--------------------------------------------------------
For the
six months For the For the For the For the
ended year year year period
02/29/00 ended ended ended 03/12/96*-
(Unaudited) 08/31/99 08/31/98 08/31/97 08/31/96
----------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE
Net asset value, beginning of period .................................. $ 20.25 $ 18.48 $ 16.50 $ 13.15 $ 12.14(1)
-------- -------- ------- ------- -------
Net investment income/(loss) ((DAGGER)) ............................... 0.08 0.44 0.37 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 ... (1.20) 2.40 2.12 3.62 1.06
-------- -------- ------- ------- -------
Net increase/(decrease) in net assets resulting from operations ... (1.12) 2.84 2.49 4.00 1.27
-------- -------- ------- ------- -------
LESS DISTRIBUTIONS
Dividends from net investment income .................................. -- (0.36) (0.29) (0.32) (0.20)
Dividends in excess of net investment income .......................... -- (0.01) (0.04) (0.06) (0.03)
Distributions from net realized gains ................................. (0.40) (0.60) (0.11) (0.17) 0.00**
Distributions in excess of net realized gains ......................... -- (0.02) -- -- --
Return of capital ..................................................... -- (0.08) (0.07) (0.10) (0.03)
-------- -------- ------- ------- -------
Total dividends and distributions ................................. (0.40) (1.07) (0.51) (0.65) (0.26)
-------- -------- ------- ------- -------
Net asset value, end of period ........................................ $ 18.73 $ 20.25 $ 18.48 $ 16.50 $ 13.15
======== ======== ======= ======= =======
TOTAL INVESTMENT RETURN (2) ............................................. (5.73)% 15.33% 14.98% 30.48% 10.41%(4)
RATIOS/ SUPPLEMENTAL DATA
Net assets, end of period (in 000's) .................................. $116,160 $113,402 $62,846 $29,721 $15,790
Ratios of expenses to average net assets (5) .......................... 0.95%(3) 0.97% 1.03% 1.38% 1.61%(3)
Ratios of net investment income/(loss) to average net assets (5) ...... 0.81%(3) 2.16% 1.90% 2.47% 3.62%(3)
Portfolio turnover rate (6) ........................................... 19.44% 13.24% 2.83% 1.84% 0.00%(4)
<FN>
* Commencement of operations.
** Less than one cent per share.
(DAGGER) 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).
</FN>
</TABLE>
See accompanying notes to financial statements.
62 & 63
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Unaudited) 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
On December 9, 1999, the following WEBS Index Series were established:
Brazil (Free) WEBS Index Series; EMU WEBS Index Series; Greece WEBS Index
Series; Indonesia (Free) WEBS Index Series; Korea WEBS Index Series; Portugal
WEBS Index Series; South Africa WEBS Index Series; Taiwan WEBS Index Series;
Thailand (Free) WEBS Index Series; Turkey WEBS Index Series and USA WEBS Index
Series. The new WEBS Index Series have not commenced operations.
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 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 EMU WEBS Index Series, the Japan
WEBS Index Series, the United Kingdom WEBS Index Series and the USA 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
The Fund's financial statements are prepared in accordance with accounting
principles generally accepted in the United States 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 the 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:
FOREIGN EXCHANGE NET REALIZED 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 (Unaudited) (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.
Each WEBS Index Series generally does not isolate the effect of
fluctuations in foreign exchange rates from the effect of fluctuations in the
market prices of securities. Each WEBS Index Series reports 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 WEBS 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 of the seventeen
original 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
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WEBS INDEX FUND, INC.
- --------------------------------------------------------------------------------
FEE ARRANGEMENTS
The Fund has an Advisory Agreement (the "Advisory 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. (See Subsequent Events Note)
The Fund has an Administration and Accounting Services Agreement with PFPC
Inc. ("PFPC" or the "Administrator"). Under the Administration and Accounting
Services Agreement, PFPC assists in supervising the operations of each WEBS
Index Series.
Prior to February 1, 2000, for its services to the WEBS Index Series, the
Administrator received 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 billion 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.
Effective February 1, 2000, for its services to the WEBS Index Series, the
Administrator receives an aggregate fee equal to each WEBS Index Series'
allocable portion of: .15% per annum of the aggregate average daily net assets
of the Fund up to $3 billion; plus .10% per annum of the aggregate average daily
net assets of the Fund between $3 billion and $4.5 billion and .095% of the
aggregate average daily net assets of the Fund in excess of $4.5 billion. The
Administrator will receive a minimum monthly fee of .05% of the aggregate
average daily net assets of the Fund plus $106,250.
PFPC and the Fund are party to 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., 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. ("the 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 an annual
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. (See Subsequent Events Note)
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 was 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%).
67
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)
- --------------------------------------------------------------------------------
Effective February 1, 2000, 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 (.05%); Austria WEBS Index Series
(.06%); Belgium WEBS Index Series (.05%); Canada WEBS Index Series (.02%);
France WEBS Index Series (.05%); Germany WEBS Index Series (.04%); Hong Kong
WEBS Index Series (.04%); Italy WEBS Index Series (.05%); Japan WEBS Index
Series (.026%); Malaysia (Free) WEBS Index Series (.07%); Mexico (Free) WEBS
Index Series (.15%); Netherlands WEBS Index Series (.04%); Singapore WEBS Index
Series (.05%); Spain WEBS Index Series (.05%); Sweden WEBS Index Series (.05%);
Switzerland WEBS Index Series (.05%); and United Kingdom WEBS Index Series
(.01%).
Chase also receives certain fees for each transaction of each of the WEBS
Index Series and is reimbursed for certain out-of-pocket expenses.
The Fund pays each director who is not an "affiliated person" (as defined
in the 1940 Act) of the Adviser 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.
FOREIGN CURRENCY
At February 29, 2000, each WEBS Index Series' cash balance included the
following amount of foreign currency:
WEBS INDEX SERIES COST VALUE
------------------ ------------ ----------
Australia WEBS Index Series $ 331,316 $ 313,663
Austria WEBS Index Series $ 29,631 $ 29,147
Belgium WEBS Index Series $ 103,571 $ 103,131
Canada WEBS Index Series $ 23,353 $ 23,295
France WEBS Index Series $ 22,726 $ 21,828
Germany WEBS Index Series $ 537,675 $ 528,885
Hong Kong WEBS Index Series $ 396,545 $ 396,535
Italy WEBS Index Series $ 336,960 $ 336,960
Japan WEBS Index Series $1,367,249 $1,367,273
Malaysia (Free) WEBS Index Series $1,470,963 $1,529,336
Mexico (Free) WEBS Index Series $ 57,008 $ 57,364
Netherlands WEBS Index Series $ 115 $ 113
Singapore (Free) WEBS Index Series $8,464,003 $8,457,673
Spain WEBS Index Series $ 339,620 $ 339,608
Sweden WEBS Index Series $ 186,620 $ 186,620
Switzerland WEBS Index Series $ 28 $ 28
United Kingdom WEBS Index Series $ 537,331 $ 528,407
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 that WEBS Index Series. Each WEBS Index Series receives collateral
equal to at least 100% of the current market value of the loaned securities.
Each WEBS Index Series receives 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.
68
<PAGE>
WEBS INDEX FUND, INC.
- --------------------------------------------------------------------------------
The market values of securities on loan to broker/dealers at February 29,
2000, and the cash collateral received with respect to such loans were as
follows:
CASH
COLLATERAL MARKET VALUE OF
WEBS INDEX SERIES RECEIVED LOANED SECURITIES
------------------ ------------ -----------------
Australia WEBS Index Series $ 10,346,982 $ 9,561,296
Austria WEBS Index Series $ -- $ --
Belgium WEBS Index Series $ -- $ --
Canada WEBS Index Series $ 642,950 $ 621,638
France WEBS Index Series $ 19,465,330 $ 18,665,794
Germany WEBS Index Series $ 5,291,310 $ 5,063,807
Hong Kong WEBS Index Series $ 8,082,000 $ 7,658,894
Italy WEBS Index Series $ 24,393,700 $ 23,017,240
Japan WEBS Index Series $110,869,453 $104,619,858
Malaysia (Free) WEBS Index Series $ -- $ --
Mexico (Free) WEBS Index Series $ 4,214,500 $ 3,911,619
Netherlands WEBS Index Series $ -- $ --
Singapore (Free) WEBS Index Series $ 12,857,750 $ 12,380,190
Spain WEBS Index Series $ 5,668,634 $ 5,405,896
Sweden WEBS Index Series $ -- $ --
Switzerland WEBS Index Series $ -- $ --
United Kingdom WEBS Index Series $ -- $ --
CAPITAL SHARES
Prior to December 9, 1999, the Fund was 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).
Effective December 9, 1999, the Fund's authorized shares were increased
from 6 billion to 10.9 billion shares of capital stock. The following number of
shares were allocated to each WEBS Index Series: Brazil (Free) WEBS Index Series
(500 million shares); EMU WEBS Index Series (500 million shares); Greece WEBS
Index Series (200 million shares); Indonesia (Free) WEBS Index Series (200
million shares); Korea WEBS Index Series (200 million shares); Portugal WEBS
Index Series (200 million shares); South Africa WEBS Index Series (200 million
shares); Taiwan WEBS Index Series (200 million shares); Thailand (Free) WEBS
Index Series (200 million shares); Turkey WEBS Index Series (200 million
shares); and the USA WEBS Index Series (500 million shares). The new WEBS Index
Series have not commenced operations.
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"). In addition,
certain WEBS Index Series may include securities that are not in its respective
MSCI Index in the Basket Securities. 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.
69
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)
- --------------------------------------------------------------------------------
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
Australia and 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 Term Loan Agreement with PNC Bank was terminated effective September
30, 1999, therefore, there were no outstanding advances under loan arrangements
at February 29, 2000.
<TABLE>
<CAPTION>
AVERAGE ADVANCES AVERAGE NUMBER OF DAYS
OUTSTANDING INTEREST ADVANCES OUTSTANDING
WEBS INDEX SERIES DURING THE PERIOD RATE DURING THE PERIOD
----------------------- ------------------ ----------- -------------------
<S> <C> <C> <C>
Australia WEBS Index Series $ 985,000 6.29% 29
Austria WEBS Index Series $ 82,000 6.30% 21
Belgium WEBS Index Series $1,663,000 6.30% 21
Canada WEBS Index Series $ 355,111 6.35% 36
Germany WEBS Index Series $1,210,000 6.30% 21
Hong Kong WEBS Index Series $1,370,000 6.30% 22
Italy WEBS Index Series $4,490,000 6.35% 36
Japan WEBS Index Series $ 458,000 6.30% 22
Mexico (Free) WEBS Index Series $ 67,000 6.30% 21
Netherlands WEBS Index Series $2,274,611 6.35% 36
Singapore (Free) WEBS Index Series $ 56,000 6.30% 22
Spain WEBS Index Series $1,341,000 6.29% 29
Sweden WEBS Index Series $ 578,000 6.29% 29
Switzerland WEBS Index Series $ 897,000 6.29% 29
United Kingdom WEBS Index Series $5,014,000 6.29% 29
</TABLE>
70
<PAGE>
WEBS INDEX FUND, INC.
- --------------------------------------------------------------------------------
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 six
months ended February 29, 2000:
PURCHASES OF SALES OF
WEBS INDEX SERIES SECURITIES SECURITIES
-------------------- ------------ ------------
Australia WEBS Index Series $ 9,521,058 $ 9,980,345
Austria WEBS Index Series $ 2,066,667 $ 2,183,631
Belgium WEBS Index Series $ 6,170,270 $ 5,906,327
Canada WEBS Index Series $ 3,952,782 $ 4,024,319
France WEBS Index Series $ 12,283,274 $ 12,954,309
Germany WEBS Index Series $ 57,021,427 $ 56,825,297
Hong Kong WEBS Index Series $ 3,039,587 $ 3,327,289
Italy WEBS Index Series $ 18,496,418 $ 19,285,339
Japan WEBS Index Series $187,280,991 $195,538,382
Malaysia (Free) WEBS Index Series $ -- $ 319,914
Mexico (Free) WEBS Index Series $ 2,665,755 $ 2,643,842
Netherlands WEBS Index Series $ 3,890,623 $ 4,134,272
Singapore (Free) WEBS Index Series $ 31,262,238 $ 31,860,823
Spain WEBS Index Series $ 9,351,957 $ 10,934,206
Sweden WEBS Index Series $ 11,409,485 $ 13,168,554
Switzerland WEBS Index Series $ 19,010,080 $ 12,212,337
United Kingdom WEBS Index Series $ 22,852,545 $ 30,191,186
FOREIGN INCOME TAXES
For the six months ended February 29, 2000, the 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 $ 47,990
Austria WEBS Index Series $ 1,297
Belgium WEBS Index Series $ 1,420
Canada WEBS Index Series $ 12,211
France WEBS Index Series $ 3,326
Germany WEBS Index Series $ 13,575
Hong Kong WEBS Index Series $ --
Italy WEBS Index Series $ 32,314
Japan WEBS Index Series $343,039
Malaysia (Free) WEBS Index Series $ --
Mexico (Free) WEBS Index Series $ 5,571
Netherlands WEBS Index Series $ 6,166
Singapore (Free) WEBS Index Series $ --
Spain WEBS Index Series $ 48,173
Sweden WEBS Index Series $ --
Switzerland WEBS Index Series $ --
United Kingdom WEBS Index Series $114,334
71
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)
- --------------------------------------------------------------------------------
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 a 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 Malaysia (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
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WEBS INDEX FUND, INC.
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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 Malaysia 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 September
30, 1998, 4.0; October 1 to October 8 at 4.47 and October 9 to March 31, 1999 at
5.07. Effective April 1, 1999 the Malaysia (Free) WEBS 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.
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.
SUBSEQUENT EVENTS
At a January 28, 2000 Special Meeting of the Board of Directors of the
Fund, the Board considered and approved, and recommended to shareholders for
their approval at a Special Meeting of Shareholders to be held on May 5, 2000,
amendments to the Advisory Agreement between the Fund and the Adviser. The
amendments provide for a revised investment advisory fee to be paid to the
Adviser that would generally fix the expense ratio of each WEBS Index Series at
.59% of average daily net assets plus payments under the Fund's Rule 12b-1
Distribution Plan of up to .25% of average daily net assets for a total expense
ratio of .84% of average daily net assets.
The proposed Advisory Agreement would amend the Advisory Agreement in
several respects. It provides that the Fund will continue to be responsible for
its expenses, but that the Adviser will receive from the Fund the difference
between the Fund's expenses (except for expenses incurred in connection with the
execution of portfolio transactions; expenses incurred in connection with the
Fund's Rule 12b-1 Distribution Plan; litigation expenses; taxes; any cost or
expense that a majority of the Directors of the Fund who are not "interested
persons" (as defined in the 1940 Act) deems to be an extraordinary expense; and
the advisory fee itself) and .59% per annum of the aggregate net assets of the
Developed Country Series (the seventeen WEBS Index Series that are currently
operational plus the EMU and USA Index Series) less than or equal to $7.0
billion, plus .54% per annum of the aggregate net assets of the Developed
Country Series between $7.0 billion and $11.0 billion, plus .49% per annum of
the aggregate net assets of the Developed Country Series in excess of $11.0
billion. The Adviser would be responsible for any expenses of the Fund (other
than the exceptions listed above) that would cause the Fund's expenses to exceed
such levels. The effect of the proposed amendments, at current asset levels and
assuming no litigation expenses, taxes or extraordinary expenses, would be an
expense ratio of .84% for each of the Fund's 17 initial WEBS Index Series (that
is, .59% as contemplated by the proposed Advisory Agreement plus .25% under the
Fund's Rule 12b-1 Distribution Plan)
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NOTES TO FINANCIAL STATEMENTS (Unaudited) (concluded)
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At the January 28, 2000 meeting, the Board also approved, upon the
recommendation of the Adviser, the termination of Funds Distributor, Inc.
("FDI") as distributor for the Fund and the appointment of SEI Investments
Distribution Company ("SEI") as distributor, which became effective on March 27,
2000. The distribution agreement between the Fund and SEI is substantially
identical to the Fund's former agreement with FDI. In addition, the Board
approved the removal of the previous limitation on annual distribution fees paid
by a WEBS Index Series under the Fund's Rule 12b-1 Distribution Plan (up to .20%
of the average daily net assets of the WEBS Index Series) effective at the time
that SEI became the Fund's distributor. Each WEBS Index Series may pay annual
distribution fees of up to .25% of the average daily net assets of the WEBS
Index Series under the Rule 12b-1 Distribution Plan. The Directors also
approved, upon the recommendation of the Adviser, a Marketing and Consulting
Agreement (the "Marketing Agreement") with FDI. The Marketing Agreement provides
that FDI will provide certain marketing and consulting services in connection
with the distribution of the Fund's shares for a period of three years after the
date that SEI became the Fund's distributor, in return for a fee of .035% of the
average daily net assets of the Fund's 17 initial WEBS Index Series. Such fee is
to be paid pursuant to the Fund's Rule 12b-1 Distribution Plan. The Adviser
informed the Board that it had agreed to make payments aggregating $500,000 to
FDI in return for certain assets and services and in connection with the
transition of the distribution function for the Fund from FDI to SEI.
Accordingly, effective March 27, 2000, SEI is paid an annual fee of .25% of the
average daily net assets of each WEBS Index Series. In addition, effective March
27, 2000, the Advisory fee received by the Adviser is .17% per annum up to
aggregate net assets of $1.7 billion; plus .05% per annum of aggregate net
assets over $1.7 billion. The advisory fee arangements described in the
preceding paragraph will become effective in respect of a WEBS Index Series upon
approval of the proposed Advisory Agreement by the shareholders of such Series.
At the January 28, 2000 Special Meeting, the Board considered and approved
and recommended to shareholders for their approval at the Special Meeting of
Shareholders to be held on May 5, 2000 that the Canada WEBS Index Series, the
Japan WEBS Index Series and the United Kingdom WEB Index Series be changed from
diversified to non-diversified open end management investment companies.
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WEBS INDEX FUND, INC.
INVESTMENT ADVISER
BARCLAYS GLOBAL FUND ADVISORS
ADMINISTRATOR
PFPC INC.
DISTRIBUTOR
SEI INVESTMENTS DISTRIBUTION COMPANY
TRANSFER AGENT
PFPC INC.
CUSTODIAN AND SECURITIES LENDING AGENT
THE CHASE MANHATTAN BANK
400 BELLEVUE PARKWAY
WILMINGTON, DE 19809
